|
|||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||||||||||||
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 Sections | ||||||||||||||||||||||||||||||||||
5 | 3-5 and 3-85 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 |
| |||||||
| |||||||
1 | support of arts or cultural programming, activities, or | ||||||
2 | services. These
organizations include, but are not limited to, | ||||||
3 | music and dramatic arts
organizations such as symphony | ||||||
4 | orchestras and theatrical groups, arts and
cultural service | ||||||
5 | organizations, local arts councils, visual arts organizations,
| ||||||
6 | and media arts organizations.
On and after the effective date | ||||||
7 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
8 | an entity otherwise eligible for this exemption shall not
make | ||||||
9 | tax-free purchases unless it has an active identification | ||||||
10 | number issued by
the Department.
| ||||||
11 | (4) Personal property purchased by a governmental body, by | ||||||
12 | a
corporation, society, association, foundation, or | ||||||
13 | institution organized and
operated exclusively for charitable, | ||||||
14 | religious, or educational purposes, or
by a not-for-profit | ||||||
15 | corporation, society, association, foundation,
institution, or | ||||||
16 | organization that has no compensated officers or employees
and | ||||||
17 | that is organized and operated primarily for the recreation of | ||||||
18 | persons
55 years of age or older. A limited liability company | ||||||
19 | may qualify for the
exemption under this paragraph only if the | ||||||
20 | limited liability company is
organized and operated | ||||||
21 | exclusively for educational purposes. On and after July
1, | ||||||
22 | 1987, however, no entity otherwise eligible for this exemption | ||||||
23 | shall make
tax-free purchases unless it has an active exemption | ||||||
24 | identification number
issued by the Department.
| ||||||
25 | (5) Until July 1, 2003, a passenger car that is a | ||||||
26 | replacement vehicle to
the extent that the
purchase price of |
| |||||||
| |||||||
1 | the car is subject to the Replacement Vehicle Tax.
| ||||||
2 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
3 | 2004 through August 30, 2014 , graphic arts machinery and | ||||||
4 | equipment, including
repair and replacement
parts, both new and | ||||||
5 | used, and including that manufactured on special order,
| ||||||
6 | certified by the purchaser to be used primarily for graphic | ||||||
7 | arts production,
and including machinery and equipment | ||||||
8 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
9 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
10 | acting as catalysts effect a direct and immediate change
upon a | ||||||
11 | graphic arts product.
| ||||||
12 | (7) Farm chemicals.
| ||||||
13 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
14 | coinage issued by
the State of Illinois, the government of the | ||||||
15 | United States of America, or the
government of any foreign | ||||||
16 | country, and bullion.
| ||||||
17 | (9) Personal property purchased from a teacher-sponsored | ||||||
18 | student
organization affiliated with an elementary or | ||||||
19 | secondary school located in
Illinois.
| ||||||
20 | (10) A motor vehicle of the first division, a motor vehicle | ||||||
21 | of the
second division that is a self-contained motor vehicle | ||||||
22 | designed or
permanently converted to provide living quarters | ||||||
23 | for recreational, camping,
or travel use, with direct walk | ||||||
24 | through to the living quarters from the
driver's seat, or a | ||||||
25 | motor vehicle of the second division that is of the
van | ||||||
26 | configuration designed for the transportation of not less than |
| |||||||
| |||||||
1 | 7 nor
more than 16 passengers, as defined in Section 1-146 of | ||||||
2 | the Illinois
Vehicle Code, that is used for automobile renting, | ||||||
3 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
4 | Act.
| ||||||
5 | (11) Farm machinery and equipment, both new and used,
| ||||||
6 | including that manufactured on special order, certified by the | ||||||
7 | purchaser
to be used primarily for production agriculture or | ||||||
8 | State or federal
agricultural programs, including individual | ||||||
9 | replacement parts for
the machinery and equipment, including | ||||||
10 | machinery and equipment
purchased
for lease,
and including | ||||||
11 | implements of husbandry defined in Section 1-130 of
the | ||||||
12 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
13 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
14 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
15 | but excluding other motor
vehicles required to be
registered | ||||||
16 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
17 | hoop houses used for propagating, growing, or
overwintering | ||||||
18 | plants shall be considered farm machinery and equipment under
| ||||||
19 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
20 | boxes shall include units sold
separately from a motor vehicle | ||||||
21 | required to be licensed and units sold mounted
on a motor | ||||||
22 | vehicle required to be licensed if the selling price of the | ||||||
23 | tender
is separately stated.
| ||||||
24 | Farm machinery and equipment shall include precision | ||||||
25 | farming equipment
that is
installed or purchased to be | ||||||
26 | installed on farm machinery and equipment
including, but not |
| |||||||
| |||||||
1 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
2 | or spreaders.
Precision farming equipment includes, but is not | ||||||
3 | limited to, soil testing
sensors, computers, monitors, | ||||||
4 | software, global positioning
and mapping systems, and other | ||||||
5 | such equipment.
| ||||||
6 | Farm machinery and equipment also includes computers, | ||||||
7 | sensors, software, and
related equipment used primarily in the
| ||||||
8 | computer-assisted operation of production agriculture | ||||||
9 | facilities, equipment,
and
activities such as, but not limited | ||||||
10 | to,
the collection, monitoring, and correlation of
animal and | ||||||
11 | crop data for the purpose of
formulating animal diets and | ||||||
12 | agricultural chemicals. This item (11) is exempt
from the | ||||||
13 | provisions of
Section 3-90.
| ||||||
14 | (12) Fuel and petroleum products sold to or used by an air | ||||||
15 | common
carrier, certified by the carrier to be used for | ||||||
16 | consumption, shipment, or
storage in the conduct of its | ||||||
17 | business as an air common carrier, for a
flight destined for or | ||||||
18 | returning from a location or locations
outside the United | ||||||
19 | States without regard to previous or subsequent domestic
| ||||||
20 | stopovers.
| ||||||
21 | (13) Proceeds of mandatory service charges separately
| ||||||
22 | stated on customers' bills for the purchase and consumption of | ||||||
23 | food and
beverages purchased at retail from a retailer, to the | ||||||
24 | extent that the proceeds
of the service charge are in fact | ||||||
25 | turned over as tips or as a substitute
for tips to the | ||||||
26 | employees who participate directly in preparing, serving,
|
| |||||||
| |||||||
1 | hosting or cleaning up the food or beverage function with | ||||||
2 | respect to which
the service charge is imposed.
| ||||||
3 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
4 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
5 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
6 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
7 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
8 | individual replacement part for oil
field exploration, | ||||||
9 | drilling, and production equipment, and (vi) machinery and
| ||||||
10 | equipment purchased
for lease; but excluding motor vehicles | ||||||
11 | required to be registered under the
Illinois Vehicle Code.
| ||||||
12 | (15) Photoprocessing machinery and equipment, including | ||||||
13 | repair and
replacement parts, both new and used, including that
| ||||||
14 | manufactured on special order, certified by the purchaser to be | ||||||
15 | used
primarily for photoprocessing, and including
| ||||||
16 | photoprocessing machinery and equipment purchased for lease.
| ||||||
17 | (16) Until July 1, 2003, coal exploration, mining, | ||||||
18 | offhighway hauling,
processing, maintenance, and reclamation | ||||||
19 | equipment,
including replacement parts and equipment, and
| ||||||
20 | including equipment purchased for lease, but excluding motor
| ||||||
21 | vehicles required to be registered under the Illinois Vehicle | ||||||
22 | Code.
| ||||||
23 | (17) Until July 1, 2003, distillation machinery and | ||||||
24 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
25 | retailer, certified by the user to be used
only for the | ||||||
26 | production of ethyl alcohol that will be used for consumption
|
| |||||||
| |||||||
1 | as motor fuel or as a component of motor fuel for the personal | ||||||
2 | use of the
user, and not subject to sale or resale.
| ||||||
3 | (18) Manufacturing and assembling machinery and equipment | ||||||
4 | used
primarily in the process of manufacturing or assembling | ||||||
5 | tangible
personal property for wholesale or retail sale or | ||||||
6 | lease, whether that sale
or lease is made directly by the | ||||||
7 | manufacturer or by some other person,
whether the materials | ||||||
8 | used in the process are
owned by the manufacturer or some other | ||||||
9 | person, or whether that sale or
lease is made apart from or as | ||||||
10 | an incident to the seller's engaging in
the service occupation | ||||||
11 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
12 | other similar items of no commercial value on
special order for | ||||||
13 | a particular purchaser.
| ||||||
14 | (19) Personal property delivered to a purchaser or | ||||||
15 | purchaser's donee
inside Illinois when the purchase order for | ||||||
16 | that personal property was
received by a florist located | ||||||
17 | outside Illinois who has a florist located
inside Illinois | ||||||
18 | deliver the personal property.
| ||||||
19 | (20) Semen used for artificial insemination of livestock | ||||||
20 | for direct
agricultural production.
| ||||||
21 | (21) Horses, or interests in horses, registered with and | ||||||
22 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
23 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
24 | Horse Association, United States
Trotting Association, or | ||||||
25 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
26 | racing for prizes. This item (21) is exempt from the provisions |
| |||||||
| |||||||
1 | of Section 3-90, and the exemption provided for under this item | ||||||
2 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
3 | claim for credit or refund is allowed on or after January 1, | ||||||
4 | 2008
for such taxes paid during the period beginning May 30, | ||||||
5 | 2000 and ending on January 1, 2008.
| ||||||
6 | (22) Computers and communications equipment utilized for | ||||||
7 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
8 | analysis, or treatment of hospital patients purchased by a | ||||||
9 | lessor who leases
the
equipment, 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 | hospital
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
equipment is leased in a | ||||||
15 | manner that does not qualify for
this exemption or is used in | ||||||
16 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
17 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
18 | case may
be, based on the fair market value of the property at | ||||||
19 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
20 | or attempt to collect an
amount (however
designated) that | ||||||
21 | purports to reimburse that lessor for the tax imposed by this
| ||||||
22 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
23 | has not been
paid by the lessor. If a lessor improperly | ||||||
24 | collects any such amount from the
lessee, the lessee shall have | ||||||
25 | a legal right to claim a refund of that amount
from the lessor. | ||||||
26 | If, however, that amount is not refunded to the lessee for
any |
| |||||||
| |||||||
1 | reason, the lessor is liable to pay that amount to the | ||||||
2 | Department.
| ||||||
3 | (23) Personal property purchased by a lessor who leases the
| ||||||
4 | property, under
a
lease of
one year or longer executed or in | ||||||
5 | effect at the time
the lessor would otherwise be subject to the | ||||||
6 | tax imposed by this Act,
to a governmental body
that has been | ||||||
7 | issued an active sales tax exemption identification number by | ||||||
8 | the
Department under Section 1g of the Retailers' Occupation | ||||||
9 | Tax Act.
If the
property is leased in a manner that does not | ||||||
10 | qualify for
this exemption
or used in any other non-exempt | ||||||
11 | manner, the lessor shall be liable for the
tax imposed under | ||||||
12 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
13 | on the fair market value of the property at the time the
| ||||||
14 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
15 | to collect an
amount (however
designated) that purports to | ||||||
16 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
17 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
18 | paid by the lessor. If a lessor improperly collects any such | ||||||
19 | amount from the
lessee, the lessee shall have a legal right to | ||||||
20 | claim a refund of that amount
from the lessor. If, however, | ||||||
21 | that amount is not refunded to the lessee for
any reason, the | ||||||
22 | lessor is liable to pay that amount to the Department.
| ||||||
23 | (24) Beginning with taxable years ending on or after | ||||||
24 | December
31, 1995
and
ending with taxable years ending on or | ||||||
25 | before December 31, 2004,
personal property that is
donated for | ||||||
26 | disaster relief to be used in a State or federally declared
|
| |||||||
| |||||||
1 | disaster area in Illinois or bordering Illinois by a | ||||||
2 | manufacturer or retailer
that is registered in this State to a | ||||||
3 | corporation, society, association,
foundation, or institution | ||||||
4 | that has been issued a sales tax exemption
identification | ||||||
5 | number by the Department that assists victims of the disaster
| ||||||
6 | who reside within the declared disaster area.
| ||||||
7 | (25) 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 used in the | ||||||
10 | performance of infrastructure repairs in this
State, including | ||||||
11 | but not limited to municipal roads and streets, access roads,
| ||||||
12 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
13 | line extensions,
water distribution and purification | ||||||
14 | facilities, storm water drainage and
retention facilities, and | ||||||
15 | sewage treatment facilities, resulting from a State
or | ||||||
16 | federally declared disaster in Illinois or bordering Illinois | ||||||
17 | when such
repairs are initiated on facilities located in the | ||||||
18 | declared disaster area
within 6 months after the disaster.
| ||||||
19 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
20 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
21 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
22 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
23 | Department of Natural Resources. This paragraph is exempt from | ||||||
24 | the provisions
of
Section 3-90.
| ||||||
25 | (27) A motor vehicle, as that term is defined in Section | ||||||
26 | 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 | (28) 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 |
| |||||||
| |||||||
1 | another individual or entity that sold the property for the
| ||||||
2 | purpose of resale by the fundraising entity and that
profits | ||||||
3 | from the sale to the
fundraising entity. This paragraph is | ||||||
4 | exempt
from the provisions
of Section 3-90.
| ||||||
5 | (29) Beginning January 1, 2000 and through December 31, | ||||||
6 | 2001, new or
used automatic vending
machines that prepare and | ||||||
7 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
8 | items, and replacement parts for these machines.
Beginning | ||||||
9 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
10 | for machines used in
commercial, coin-operated amusement and | ||||||
11 | vending business if a use or occupation
tax is paid on the | ||||||
12 | gross receipts derived from the use of the commercial,
| ||||||
13 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
14 | is exempt from the provisions of Section 3-90.
| ||||||
15 | (30) Beginning January 1, 2001 and through June 30, 2011, | ||||||
16 | food for human consumption that is to be consumed off the | ||||||
17 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
18 | drinks, and food that
has been prepared for immediate | ||||||
19 | consumption) and prescription and
nonprescription medicines, | ||||||
20 | drugs, medical appliances, and insulin, urine
testing | ||||||
21 | materials, syringes, and needles used by diabetics, for human | ||||||
22 | use, when
purchased for use by a person receiving medical | ||||||
23 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
24 | resides in a licensed long-term care facility,
as defined in | ||||||
25 | the Nursing Home Care Act.
| ||||||
26 | (31) Beginning on
the effective date of this amendatory Act |
| |||||||
| |||||||
1 | of the 92nd General Assembly,
computers and communications | ||||||
2 | equipment
utilized for any hospital purpose and equipment used | ||||||
3 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
4 | purchased by a lessor who leases
the equipment, under a lease | ||||||
5 | of one year or longer executed or in effect at the
time the | ||||||
6 | lessor would otherwise be subject to the tax imposed by this | ||||||
7 | Act, to a
hospital that has been issued an active tax exemption | ||||||
8 | identification number by
the Department under Section 1g of the | ||||||
9 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
10 | manner that does not qualify for this exemption or is
used in | ||||||
11 | any other nonexempt manner, the lessor shall be liable for the | ||||||
12 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
13 | case may be, based on
the fair market value of the property at | ||||||
14 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
15 | or attempt to collect an amount (however
designated) that | ||||||
16 | purports to reimburse that lessor for the tax imposed by this
| ||||||
17 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
18 | has not been
paid by the lessor. If a lessor improperly | ||||||
19 | collects any such amount from the
lessee, the lessee shall have | ||||||
20 | a legal right to claim a refund of that amount
from the lessor. | ||||||
21 | If, however, that amount is not refunded to the lessee for
any | ||||||
22 | reason, the lessor is liable to pay that amount to the | ||||||
23 | Department.
This paragraph is exempt from the provisions of | ||||||
24 | Section 3-90.
| ||||||
25 | (32) Beginning on
the effective date of this amendatory Act | ||||||
26 | of the 92nd General Assembly,
personal property purchased by a |
| |||||||
| |||||||
1 | lessor who leases the property,
under a lease of one year or | ||||||
2 | longer executed or in effect at the time the
lessor would | ||||||
3 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
4 | governmental body that has been issued an active sales tax | ||||||
5 | exemption
identification number by the Department under | ||||||
6 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
7 | property is leased in a manner that does not
qualify for this | ||||||
8 | exemption or used in any other nonexempt manner, the lessor
| ||||||
9 | shall be liable for the tax imposed under this Act or the | ||||||
10 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
11 | market value of the property at the time
the nonqualifying use | ||||||
12 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
13 | (however designated) that purports to reimburse that lessor for | ||||||
14 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
15 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
16 | lessor improperly collects any such
amount from the lessee, the | ||||||
17 | lessee shall have a legal right to claim a refund
of that | ||||||
18 | amount from the lessor. If, however, that amount is not | ||||||
19 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
20 | pay that amount to the
Department. This paragraph is exempt | ||||||
21 | from the provisions of Section 3-90.
| ||||||
22 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
23 | the use in this State of motor vehicles of
the second division | ||||||
24 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
25 | are subject to the commercial distribution fee imposed under | ||||||
26 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July |
| |||||||
| |||||||
1 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
2 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
3 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
4 | to the commercial distribution fee imposed under Section | ||||||
5 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
6 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
7 | this exemption applies to repair and
replacement parts added | ||||||
8 | after the initial purchase of such a motor vehicle if
that | ||||||
9 | motor
vehicle is used in a manner that would qualify for the | ||||||
10 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
11 | purposes of this paragraph, the term "used for commercial | ||||||
12 | purposes" means the transportation of persons or property in | ||||||
13 | furtherance of any commercial or industrial enterprise, | ||||||
14 | whether for-hire or not.
| ||||||
15 | (34) Beginning January 1, 2008, tangible personal property | ||||||
16 | used in the construction or maintenance of a community water | ||||||
17 | supply, as defined under Section 3.145 of the Environmental | ||||||
18 | Protection Act, that is operated by a not-for-profit | ||||||
19 | corporation that holds a valid water supply permit issued under | ||||||
20 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
21 | exempt from the provisions of Section 3-90. | ||||||
22 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
23 | eff. 1-1-08; 95-876, eff. 8-21-08.)
| ||||||
24 | (35 ILCS 105/3-85)
| ||||||
25 | Sec. 3-85. Manufacturer's Purchase Credit. For purchases |
| |||||||
| |||||||
1 | of machinery and
equipment made on and after January 1, 1995 | ||||||
2 | through June 30, 2003, and on and after September 1, 2004 | ||||||
3 | through August 30, 2014 ,
a
purchaser of manufacturing
machinery | ||||||
4 | and equipment that qualifies for the exemption provided by
| ||||||
5 | paragraph (18) of Section 3-5 of this Act earns a credit in an | ||||||
6 | amount equal to
a fixed percentage of the tax which would have | ||||||
7 | been incurred under this Act on
those purchases.
For purchases | ||||||
8 | of graphic arts machinery and equipment made on or after July
| ||||||
9 | 1, 1996 and through June 30, 2003, and on and after September | ||||||
10 | 1, 2004 through August 30, 2014 , a purchaser of graphic arts | ||||||
11 | machinery
and equipment that qualifies for
the exemption | ||||||
12 | provided by paragraph (6) of Section 3-5 of this Act earns a
| ||||||
13 | credit in an amount equal to a fixed percentage of the tax that | ||||||
14 | would have been
incurred under this Act on those purchases.
The | ||||||
15 | credit earned for purchases of manufacturing machinery and | ||||||
16 | equipment or
graphic arts machinery and equipment shall be | ||||||
17 | referred to as the
Manufacturer's Purchase
Credit.
A graphic | ||||||
18 | arts producer is a person engaged in graphic arts production as
| ||||||
19 | defined in Section 2-30 of the Retailers' Occupation Tax Act. | ||||||
20 | Beginning July
1, 1996, all references in this Section to | ||||||
21 | manufacturers or manufacturing shall
also be deemed to refer to | ||||||
22 | graphic arts producers or graphic arts production.
| ||||||
23 | The amount of credit shall be a percentage of the tax that | ||||||
24 | would have
been incurred on the purchase of manufacturing | ||||||
25 | machinery and equipment
or graphic arts machinery and equipment
| ||||||
26 | if the exemptions provided by paragraph (6) or paragraph
(18) |
| |||||||
| |||||||
1 | of Section 3-5
of this Act had not been applicable. The | ||||||
2 | percentage shall be as follows:
| ||||||
3 | (1) 15% for purchases made on or before June 30, 1995.
| ||||||
4 | (2) 25% for purchases made after June 30, 1995, and on | ||||||
5 | or before June 30,
1996.
| ||||||
6 | (3) 40% for purchases made after June 30, 1996, and on | ||||||
7 | or before June 30,
1997.
| ||||||
8 | (4) 50% for purchases made on or after July 1, 1997.
| ||||||
9 | (a) Manufacturer's Purchase Credit earned prior to July 1, | ||||||
10 | 2003. This subsection (a) applies to Manufacturer's Purchase | ||||||
11 | Credit earned prior to July 1, 2003. A purchaser of production | ||||||
12 | related tangible personal property desiring to use
the | ||||||
13 | Manufacturer's Purchase Credit shall certify to the seller | ||||||
14 | prior to
October 1, 2003 that the
purchaser is satisfying all | ||||||
15 | or part of the liability under the Use Tax Act or
the Service | ||||||
16 | Use Tax Act that is due on the
purchase of the production | ||||||
17 | related tangible personal property by use of
Manufacturer's | ||||||
18 | Purchase Credit. The Manufacturer's Purchase Credit
| ||||||
19 | certification must be dated and shall include the name and | ||||||
20 | address of the
purchaser, the purchaser's registration number, | ||||||
21 | if registered, the credit being
applied, and a statement that | ||||||
22 | the State Use Tax or Service Use Tax liability is
being | ||||||
23 | satisfied with the manufacturer's or graphic arts producer's
| ||||||
24 | accumulated purchase credit.
Certification may be incorporated | ||||||
25 | into the manufacturer's or graphic arts
producer's purchase | ||||||
26 | order.
Manufacturer's Purchase Credit certification provided |
| |||||||
| |||||||
1 | by the manufacturer
or graphic
arts producer prior to October | ||||||
2 | 1, 2003 may be used to
satisfy the retailer's or serviceman's | ||||||
3 | liability under the Retailers'
Occupation Tax Act or Service | ||||||
4 | Occupation Tax Act for the credit claimed, not to
exceed 6.25% | ||||||
5 | of the receipts subject to tax from a qualifying purchase, but
| ||||||
6 | only if the retailer or serviceman reports the Manufacturer's | ||||||
7 | Purchase Credit
claimed as required by the Department. A | ||||||
8 | Manufacturer's Purchase Credit
reported on any original or | ||||||
9 | amended return
filed under
this Act after October 20, 2003 | ||||||
10 | shall be disallowed. The Manufacturer's
Purchase Credit
earned | ||||||
11 | by purchase of exempt manufacturing machinery and equipment
or | ||||||
12 | graphic arts machinery and equipment is a non-transferable | ||||||
13 | credit. A
manufacturer or graphic arts producer that enters | ||||||
14 | into a
contract involving the installation of tangible personal | ||||||
15 | property
into real estate within a manufacturing or graphic | ||||||
16 | arts production facility
may, prior to October 1, 2003, | ||||||
17 | authorize a construction contractor
to utilize credit | ||||||
18 | accumulated by the manufacturer or graphic arts producer
to
| ||||||
19 | purchase the tangible personal property. A manufacturer or | ||||||
20 | graphic arts
producer
intending to use accumulated credit to | ||||||
21 | purchase such tangible personal
property shall execute a | ||||||
22 | written contract authorizing the contractor to utilize
a | ||||||
23 | specified dollar amount of credit. The contractor shall | ||||||
24 | furnish, prior to
October 1, 2003, the supplier
with the | ||||||
25 | manufacturer's or graphic arts producer's name, registration | ||||||
26 | or
resale
number, and a statement that a specific amount of the |
| |||||||
| |||||||
1 | Use Tax or Service Use
Tax liability, not to exceed 6.25% of | ||||||
2 | the selling price, is being satisfied
with the credit. The | ||||||
3 | manufacturer or graphic arts producer shall remain
liable to | ||||||
4 | timely report all
information required by the annual Report of | ||||||
5 | Manufacturer's Purchase Credit
Used for all credit utilized by | ||||||
6 | a construction contractor.
| ||||||
7 | No Manufacturer's Purchase Credit earned prior to July 1, | ||||||
8 | 2003 may be used after October 1, 2003. The Manufacturer's | ||||||
9 | Purchase Credit may be used to satisfy liability under the
Use | ||||||
10 | Tax Act or the Service Use Tax Act due on the purchase of | ||||||
11 | production
related tangible personal property (including | ||||||
12 | purchases by a manufacturer, by
a graphic arts producer, or by
| ||||||
13 | a lessor who rents or leases the use of the property to a | ||||||
14 | manufacturer or
graphic arts producer)
that does not otherwise | ||||||
15 | qualify
for the manufacturing machinery and equipment
| ||||||
16 | exemption or the graphic arts machinery and equipment | ||||||
17 | exemption.
"Production related
tangible personal property" | ||||||
18 | means (i) all tangible personal property used or
consumed by | ||||||
19 | the purchaser in a manufacturing facility in which a | ||||||
20 | manufacturing
process described in Section 2-45 of the | ||||||
21 | Retailers' Occupation Tax Act takes
place, including tangible | ||||||
22 | personal property purchased for incorporation into
real estate | ||||||
23 | within a manufacturing facility
and including, but not limited | ||||||
24 | to, tangible
personal property used or consumed in activities | ||||||
25 | such as preproduction material
handling, receiving, quality | ||||||
26 | control, inventory control, storage, staging, and
packaging |
| |||||||
| |||||||
1 | for shipping and transportation purposes; (ii) all tangible
| ||||||
2 | personal property used or consumed by the purchaser in a | ||||||
3 | graphic arts facility
in which graphic arts production as | ||||||
4 | described in Section 2-30 of the Retailers'
Occupation Tax Act | ||||||
5 | takes place, including tangible personal property purchased
| ||||||
6 | for incorporation into real estate within a graphic arts | ||||||
7 | facility and
including, but not limited to, all tangible | ||||||
8 | personal property used or consumed
in activities such as | ||||||
9 | graphic arts preliminary or pre-press production,
| ||||||
10 | pre-production material handling, receiving, quality control, | ||||||
11 | inventory
control, storage, staging, sorting, labeling, | ||||||
12 | mailing, tying, wrapping, and
packaging; and (iii) all tangible
| ||||||
13 | personal property used or consumed by the purchaser
for | ||||||
14 | research and development.
"Production related tangible | ||||||
15 | personal property" does not include (i) tangible
personal | ||||||
16 | property used, within or without a manufacturing facility, in | ||||||
17 | sales,
purchasing, accounting, fiscal management, marketing, | ||||||
18 | personnel recruitment or
selection, or landscaping or (ii) | ||||||
19 | tangible personal property required to be
titled or registered | ||||||
20 | with a department, agency, or unit of federal, state, or
local | ||||||
21 | government. The Manufacturer's Purchase Credit may be used, | ||||||
22 | prior to
October 1, 2003, to satisfy
the tax arising either | ||||||
23 | from the purchase of
machinery and equipment on or after | ||||||
24 | January 1,
1995 for which the exemption
provided by paragraph | ||||||
25 | (18) of Section 3-5 of this Act was
erroneously claimed, or the | ||||||
26 | purchase of machinery and equipment on or after
July 1, 1996 |
| |||||||
| |||||||
1 | for which the exemption provided by paragraph (6) of Section | ||||||
2 | 3-5
of this Act was erroneously claimed, but not in
| ||||||
3 | satisfaction of penalty, if any, and interest for failure to | ||||||
4 | pay the tax
when due. A
purchaser of production related | ||||||
5 | tangible personal property who is required to
pay Illinois Use | ||||||
6 | Tax or Service Use Tax on the purchase directly to the
| ||||||
7 | Department may, prior to October 1, 2003, utilize the | ||||||
8 | Manufacturer's
Purchase Credit in satisfaction of
the tax | ||||||
9 | arising from that purchase, but not in
satisfaction of penalty | ||||||
10 | and interest.
A purchaser who uses the Manufacturer's Purchase | ||||||
11 | Credit to purchase property
which is later determined not to be | ||||||
12 | production related tangible personal
property may be liable for | ||||||
13 | tax, penalty, and interest on the purchase of that
property as | ||||||
14 | of the date of purchase but shall be entitled to use the | ||||||
15 | disallowed
Manufacturer's Purchase
Credit, so long as it has | ||||||
16 | not expired and is used prior to October 1, 2003,
on qualifying | ||||||
17 | purchases of production
related tangible personal property not | ||||||
18 | previously subject to credit usage.
The Manufacturer's | ||||||
19 | Purchase Credit earned by a manufacturer or graphic arts
| ||||||
20 | producer
expires the last day of the second calendar year | ||||||
21 | following the
calendar year in which the credit arose. No | ||||||
22 | Manufacturer's Purchase Credit
may be used after September 30, | ||||||
23 | 2003
regardless of
when that credit was earned.
| ||||||
24 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
25 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
26 | Credit Earned for each calendar year
no later than the last day |
| |||||||
| |||||||
1 | of the sixth month following the calendar year in
which a | ||||||
2 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
3 | Manufacturer's
Purchase Credit Earned shall be filed on forms | ||||||
4 | as prescribed or approved by the
Department and shall state, | ||||||
5 | for each month of the calendar year: (i) the total
purchase | ||||||
6 | price of all purchases of exempt manufacturing or graphic arts
| ||||||
7 | machinery on which the
credit was earned; (ii) the total State | ||||||
8 | Use Tax or Service Use Tax which would
have been due on those | ||||||
9 | items; (iii) the percentage used to calculate the amount
of | ||||||
10 | credit earned; (iv) the amount of credit earned; and (v) such | ||||||
11 | other
information as the Department may reasonably require. A | ||||||
12 | purchaser earning
Manufacturer's Purchase Credit shall | ||||||
13 | maintain records which identify, as to
each purchase of | ||||||
14 | manufacturing or graphic arts machinery and equipment
on which | ||||||
15 | the purchaser
earned Manufacturer's Purchase Credit, the | ||||||
16 | vendor (including, if applicable,
either the vendor's | ||||||
17 | registration number or Federal Employer Identification
| ||||||
18 | Number), the purchase price, and the amount of Manufacturer's | ||||||
19 | Purchase Credit
earned on each purchase.
| ||||||
20 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
21 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
22 | Credit Used for each calendar year no
later than the last day | ||||||
23 | of the sixth month following the calendar year in which
a | ||||||
24 | Manufacturer's Purchase Credit is used. A Report of | ||||||
25 | Manufacturer's Purchase
Credit Used
shall be filed on forms as | ||||||
26 | prescribed or approved by the Department and
shall state, for |
| |||||||
| |||||||
1 | each month of the calendar year: (i) the total purchase price
| ||||||
2 | of production related tangible personal property purchased | ||||||
3 | from Illinois
suppliers; (ii) the total purchase price of | ||||||
4 | production related tangible
personal property purchased from | ||||||
5 | out-of-state suppliers; (iii) the total amount
of credit used | ||||||
6 | during such month; and (iv) such
other information as the | ||||||
7 | Department may reasonably require. A purchaser using
| ||||||
8 | Manufacturer's Purchase Credit shall maintain records that | ||||||
9 | identify, as to
each purchase of production related tangible | ||||||
10 | personal property on which the
purchaser used Manufacturer's | ||||||
11 | Purchase Credit, the vendor (including, if
applicable, either | ||||||
12 | the vendor's registration number or Federal Employer
| ||||||
13 | Identification Number), the purchase price, and the amount of | ||||||
14 | Manufacturer's
Purchase Credit used on each purchase.
| ||||||
15 | No annual report shall be filed before May 1, 1996 or after | ||||||
16 | June 30,
2004. A purchaser that fails to
file an annual Report | ||||||
17 | of Manufacturer's Purchase Credit Earned or an annual
Report of | ||||||
18 | Manufacturer's
Purchase Credit Used by the last day of the | ||||||
19 | sixth month following the
end of the calendar year shall | ||||||
20 | forfeit all Manufacturer's Purchase Credit for
that calendar | ||||||
21 | year unless it establishes that its failure to file was due to
| ||||||
22 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
23 | be amended
to report and claim credit on qualifying purchases | ||||||
24 | not previously reported at
any time before the credit would | ||||||
25 | have expired, unless both the Department and
the purchaser have | ||||||
26 | agreed to an extension of
the statute of limitations for the |
| |||||||
| |||||||
1 | issuance of a notice of tax liability as
provided in Section 4 | ||||||
2 | of the Retailers' Occupation Tax Act. If the time for
| ||||||
3 | assessment or refund has been extended, then amended reports | ||||||
4 | for a calendar
year may be filed at any time prior to the date | ||||||
5 | to which the statute of
limitations for the calendar year or | ||||||
6 | portion thereof has been extended.
No Manufacturer's Purchase
| ||||||
7 | Credit report filed with the Department for periods prior to | ||||||
8 | January 1, 1995
shall be approved.
Manufacturer's Purchase | ||||||
9 | Credit claimed on an amended report may be used,
until October | ||||||
10 | 1, 2003, to
satisfy tax liability under the Use Tax Act or the | ||||||
11 | Service Use Tax Act (i) on
qualifying purchases of production | ||||||
12 | related tangible personal property made
after the date the | ||||||
13 | amended report is filed or (ii) assessed by the Department
on | ||||||
14 | qualifying purchases of production related tangible personal | ||||||
15 | property made
in the case of manufacturers
on or after January | ||||||
16 | 1, 1995, or in the case of graphic arts producers on or
after | ||||||
17 | July 1, 1996.
| ||||||
18 | If the purchaser is not the manufacturer or a graphic arts | ||||||
19 | producer, but
rents or
leases the use of the property to a | ||||||
20 | manufacturer or graphic arts producer,
the purchaser may earn,
| ||||||
21 | report, and use Manufacturer's Purchase Credit in the same | ||||||
22 | manner as a
manufacturer or graphic arts producer.
| ||||||
23 | A purchaser shall not be entitled to any Manufacturer's | ||||||
24 | Purchase
Credit for a purchase that is required to be reported | ||||||
25 | and is not timely
reported as provided in this Section. A | ||||||
26 | purchaser remains liable for (i) any
tax that was satisfied by |
| |||||||
| |||||||
1 | use of a Manufacturer's Purchase Credit, as of the
date of | ||||||
2 | purchase, if that use is not timely reported as required in | ||||||
3 | this
Section and (ii) for any applicable penalties and interest | ||||||
4 | for failing to pay
the tax when due. No Manufacturer's Purchase | ||||||
5 | Credit may be used after
September 30, 2003 to
satisfy any
tax | ||||||
6 | liability imposed under this Act, including any audit | ||||||
7 | liability.
| ||||||
8 | (b) Manufacturer's Purchase Credit earned on and after | ||||||
9 | September 1, 2004. This subsection (b) applies to | ||||||
10 | Manufacturer's Purchase Credit earned on and after September 1, | ||||||
11 | 2004. Manufacturer's Purchase Credit earned on or after | ||||||
12 | September 1, 2004 may only be used to satisfy the Use Tax or | ||||||
13 | Service Use Tax liability incurred on production related | ||||||
14 | tangible personal property purchased on or after September 1, | ||||||
15 | 2004. A purchaser of production related tangible personal | ||||||
16 | property desiring to use the Manufacturer's Purchase Credit | ||||||
17 | shall certify to the seller that the purchaser is satisfying | ||||||
18 | all or part of the liability under the Use Tax Act or the | ||||||
19 | Service Use Tax Act that is due on the purchase of the | ||||||
20 | production related tangible personal property by use of | ||||||
21 | Manufacturer's Purchase Credit. The Manufacturer's Purchase | ||||||
22 | Credit certification must be dated and shall include the name | ||||||
23 | and address of the purchaser, the purchaser's registration | ||||||
24 | number, if registered, the credit being applied, and a | ||||||
25 | statement that the State Use Tax or Service Use Tax liability | ||||||
26 | is being satisfied with the manufacturer's or graphic arts |
| |||||||
| |||||||
1 | producer's accumulated purchase credit. Certification may be | ||||||
2 | incorporated into the manufacturer's or graphic arts | ||||||
3 | producer's purchase order. Manufacturer's Purchase Credit | ||||||
4 | certification provided by the manufacturer or graphic arts | ||||||
5 | producer may be used to satisfy the retailer's or serviceman's | ||||||
6 | liability under the Retailers' Occupation Tax Act or Service | ||||||
7 | Occupation Tax Act for the credit claimed, not to exceed 6.25% | ||||||
8 | of the receipts subject to tax from a qualifying purchase, but | ||||||
9 | only if the retailer or serviceman reports the Manufacturer's | ||||||
10 | Purchase Credit claimed as required by the Department. The | ||||||
11 | Manufacturer's Purchase Credit earned by purchase of exempt | ||||||
12 | manufacturing machinery and equipment or graphic arts | ||||||
13 | machinery and equipment is a non-transferable credit. A | ||||||
14 | manufacturer or graphic arts producer that enters into a | ||||||
15 | contract involving the installation of tangible personal | ||||||
16 | property into real estate within a manufacturing or graphic | ||||||
17 | arts production facility may, on or after September 1, 2004, | ||||||
18 | authorize a construction contractor to utilize credit | ||||||
19 | accumulated by the manufacturer or graphic arts producer to | ||||||
20 | purchase the tangible personal property. A manufacturer or | ||||||
21 | graphic arts producer intending to use accumulated credit to | ||||||
22 | purchase such tangible personal property shall execute a | ||||||
23 | written contract authorizing the contractor to utilize a | ||||||
24 | specified dollar amount of credit. The contractor shall furnish | ||||||
25 | the supplier with the manufacturer's or graphic arts producer's | ||||||
26 | name, registration or resale number, and a statement that a |
| |||||||
| |||||||
1 | specific amount of the Use Tax or Service Use Tax liability, | ||||||
2 | not to exceed 6.25% of the selling price, is being satisfied | ||||||
3 | with the credit. The manufacturer or graphic arts producer | ||||||
4 | shall remain liable to timely report all information required | ||||||
5 | by the annual Report of Manufacturer's Purchase Credit Used for | ||||||
6 | all credit utilized by a construction contractor. | ||||||
7 | The Manufacturer's Purchase Credit may be used to satisfy | ||||||
8 | liability under the Use Tax Act or the Service Use Tax Act due | ||||||
9 | on the purchase, made on or after September 1, 2004, of | ||||||
10 | production related tangible personal property (including | ||||||
11 | purchases by a manufacturer, by a graphic arts producer, or by | ||||||
12 | a lessor who rents or leases the use of the property to a | ||||||
13 | manufacturer or graphic arts producer) that does not otherwise | ||||||
14 | qualify for the manufacturing machinery and equipment | ||||||
15 | exemption or the graphic arts machinery and equipment | ||||||
16 | exemption. "Production related tangible personal property" | ||||||
17 | means (i) all tangible personal property used or consumed by | ||||||
18 | the purchaser in a manufacturing facility in which a | ||||||
19 | manufacturing process described in Section 2-45 of the | ||||||
20 | Retailers' Occupation Tax Act takes place, including tangible | ||||||
21 | personal property purchased for incorporation into real estate | ||||||
22 | within a manufacturing facility and including, but not limited | ||||||
23 | to, tangible personal property used or consumed in activities | ||||||
24 | such as preproduction material handling, receiving, quality | ||||||
25 | control, inventory control, storage, staging, and packaging | ||||||
26 | for shipping and transportation purposes; (ii) all tangible |
| |||||||
| |||||||
1 | personal property used or consumed by the purchaser in a | ||||||
2 | graphic arts facility in which graphic arts production as | ||||||
3 | described in Section 2-30 of the Retailers' Occupation Tax Act | ||||||
4 | takes place, including tangible personal property purchased | ||||||
5 | for incorporation into real estate within a graphic arts | ||||||
6 | facility and including, but not limited to, all tangible | ||||||
7 | personal property used or consumed in activities such as | ||||||
8 | graphic arts preliminary or pre-press production, | ||||||
9 | pre-production material handling, receiving, quality control, | ||||||
10 | inventory control, storage, staging, sorting, labeling, | ||||||
11 | mailing, tying, wrapping, and packaging; and (iii) all tangible | ||||||
12 | personal property used or consumed by the purchaser for | ||||||
13 | research and development. "Production related tangible | ||||||
14 | personal property" does not include (i) tangible personal | ||||||
15 | property used, within or without a manufacturing facility, in | ||||||
16 | sales, purchasing, accounting, fiscal management, marketing, | ||||||
17 | personnel recruitment or selection, or landscaping or (ii) | ||||||
18 | tangible personal property required to be titled or registered | ||||||
19 | with a department, agency, or unit of federal, state, or local | ||||||
20 | government. The Manufacturer's Purchase Credit may be used to | ||||||
21 | satisfy the tax arising either from the purchase of machinery | ||||||
22 | and equipment on or after September 1, 2004 for which the | ||||||
23 | exemption provided by paragraph (18) of Section 3-5 of this Act | ||||||
24 | was erroneously claimed, or the purchase of machinery and | ||||||
25 | equipment on or after September 1, 2004 for which the exemption | ||||||
26 | provided by paragraph (6) of Section 3-5 of this Act was |
| |||||||
| |||||||
1 | erroneously claimed, but not in satisfaction of penalty, if | ||||||
2 | any, and interest for failure to pay the tax when due. A | ||||||
3 | purchaser of production related tangible personal property | ||||||
4 | that is purchased on or after September 1, 2004 who is required | ||||||
5 | to pay Illinois Use Tax or Service Use Tax on the purchase | ||||||
6 | directly to the Department may utilize the Manufacturer's | ||||||
7 | Purchase Credit in satisfaction of the tax arising from that | ||||||
8 | purchase, but not in satisfaction of penalty and interest. A | ||||||
9 | purchaser who uses the Manufacturer's Purchase Credit to | ||||||
10 | purchase property on and after September 1, 2004 which is later | ||||||
11 | determined not to be production related tangible personal | ||||||
12 | property may be liable for tax, penalty, and interest on the | ||||||
13 | purchase of that property as of the date of purchase but shall | ||||||
14 | be entitled to use the disallowed Manufacturer's Purchase | ||||||
15 | Credit, so long as it has not expired and is used on qualifying | ||||||
16 | purchases of production related tangible personal property not | ||||||
17 | previously subject to credit usage. The Manufacturer's | ||||||
18 | Purchase Credit earned by a manufacturer or graphic arts | ||||||
19 | producer expires the last day of the second calendar year | ||||||
20 | following the calendar year in which the credit arose.
A | ||||||
21 | purchaser earning Manufacturer's Purchase Credit shall sign | ||||||
22 | and file an annual Report of Manufacturer's Purchase Credit | ||||||
23 | Earned for each calendar year no later than the last day of the | ||||||
24 | sixth month following the calendar year in which a | ||||||
25 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
26 | Manufacturer's Purchase Credit Earned shall be filed on forms |
| |||||||
| |||||||
1 | as prescribed or approved by the Department and shall state, | ||||||
2 | for each month of the calendar year: (i) the total purchase | ||||||
3 | price of all purchases of exempt manufacturing or graphic arts | ||||||
4 | machinery on which the credit was earned; (ii) the total State | ||||||
5 | Use Tax or Service Use Tax which would have been due on those | ||||||
6 | items; (iii) the percentage used to calculate the amount of | ||||||
7 | credit earned; (iv) the amount of credit earned; and (v) such | ||||||
8 | other information as the Department may reasonably require. A | ||||||
9 | purchaser earning Manufacturer's Purchase Credit shall | ||||||
10 | maintain records which identify, as to each purchase of | ||||||
11 | manufacturing or graphic arts machinery and equipment on which | ||||||
12 | the purchaser earned Manufacturer's Purchase Credit, the | ||||||
13 | vendor (including, if applicable, either the vendor's | ||||||
14 | registration number or Federal Employer Identification | ||||||
15 | Number), the purchase price, and the amount of Manufacturer's | ||||||
16 | Purchase Credit earned on each purchase.
A purchaser using | ||||||
17 | Manufacturer's Purchase Credit shall sign and file an annual | ||||||
18 | Report of Manufacturer's Purchase Credit Used for each calendar | ||||||
19 | year no later than the last day of the sixth month following | ||||||
20 | the calendar year in which a Manufacturer's Purchase Credit is | ||||||
21 | used. A Report of Manufacturer's Purchase Credit Used shall be | ||||||
22 | filed on forms as prescribed or approved by the Department and | ||||||
23 | shall state, for each month of the calendar year: (i) the total | ||||||
24 | purchase price of production related tangible personal | ||||||
25 | property purchased from Illinois suppliers; (ii) the total | ||||||
26 | purchase price of production related tangible personal |
| |||||||
| |||||||
1 | property purchased from out-of-state suppliers; (iii) the | ||||||
2 | total amount of credit used during such month; and (iv) such | ||||||
3 | other information as the Department may reasonably require. A | ||||||
4 | purchaser using Manufacturer's Purchase Credit shall maintain | ||||||
5 | records that identify, as to each purchase of production | ||||||
6 | related tangible personal property on which the purchaser used | ||||||
7 | Manufacturer's Purchase Credit, the vendor (including, if | ||||||
8 | applicable, either the vendor's registration number or Federal | ||||||
9 | Employer Identification Number), the purchase price, and the | ||||||
10 | amount of Manufacturer's Purchase Credit used on each purchase. | ||||||
11 | A purchaser that fails to file an annual Report of | ||||||
12 | Manufacturer's Purchase Credit Earned or an annual Report of | ||||||
13 | Manufacturer's Purchase Credit Used by the last day of the | ||||||
14 | sixth month following the end of the calendar year shall | ||||||
15 | forfeit all Manufacturer's Purchase Credit for that calendar | ||||||
16 | year unless it establishes that its failure to file was due to | ||||||
17 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
18 | be amended to report and claim credit on qualifying purchases | ||||||
19 | not previously reported at any time before the credit would | ||||||
20 | have expired, unless both the Department and the purchaser have | ||||||
21 | agreed to an extension of the statute of limitations for the | ||||||
22 | issuance of a notice of tax liability as provided in Section 4 | ||||||
23 | of the Retailers' Occupation Tax Act. If the time for | ||||||
24 | assessment or refund has been extended, then amended reports | ||||||
25 | for a calendar year may be filed at any time prior to the date | ||||||
26 | to which the statute of limitations for the calendar year or |
| |||||||
| |||||||
1 | portion thereof has been extended. Manufacturer's Purchase | ||||||
2 | Credit claimed on an amended report may be used to satisfy tax | ||||||
3 | liability under the Use Tax Act or the Service Use Tax Act (i) | ||||||
4 | on qualifying purchases of production related tangible | ||||||
5 | personal property made after the date the amended report is | ||||||
6 | filed or (ii) assessed by the Department on qualifying | ||||||
7 | production related tangible personal property purchased on or | ||||||
8 | after September 1, 2004. If the purchaser is not the | ||||||
9 | manufacturer or a graphic arts producer, but rents or leases | ||||||
10 | the use of the property to a manufacturer or graphic arts | ||||||
11 | producer, the purchaser may earn, report, and use | ||||||
12 | Manufacturer's Purchase Credit in the same manner as a | ||||||
13 | manufacturer or graphic arts producer.
A purchaser shall not be | ||||||
14 | entitled to any Manufacturer's Purchase Credit for a purchase | ||||||
15 | that is required to be reported and is not timely reported as | ||||||
16 | provided in this Section. A purchaser remains liable for (i) | ||||||
17 | any tax that was satisfied by use of a Manufacturer's Purchase | ||||||
18 | Credit, as of the date of purchase, if that use is not timely | ||||||
19 | reported as required in this Section and (ii) for any | ||||||
20 | applicable penalties and interest for failing to pay the tax | ||||||
21 | when due. | ||||||
22 | (Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04.)
| ||||||
23 | Section 10. The Service Use Tax Act is amended by changing | ||||||
24 | Sections 3-5 and 3-70 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| ||||||
2 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
3 | personal property
is exempt from the tax imposed by this Act:
| ||||||
4 | (1) Personal property purchased from a corporation, | ||||||
5 | society,
association, foundation, institution, or | ||||||
6 | organization, other than a limited
liability company, that is | ||||||
7 | organized and operated as a not-for-profit service
enterprise | ||||||
8 | for the benefit of persons 65 years of age or older if the | ||||||
9 | personal
property was not purchased by the enterprise for the | ||||||
10 | purpose of resale by the
enterprise.
| ||||||
11 | (2) Personal property purchased by a non-profit Illinois | ||||||
12 | county fair
association for use in conducting, operating, or | ||||||
13 | promoting the county fair.
| ||||||
14 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
15 | cultural
organization that establishes, by proof required by | ||||||
16 | the Department by rule,
that it has received an exemption under | ||||||
17 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
18 | organized and operated primarily for the
presentation
or | ||||||
19 | support of arts or cultural programming, activities, or | ||||||
20 | services. These
organizations include, but are not limited to, | ||||||
21 | music and dramatic arts
organizations such as symphony | ||||||
22 | orchestras and theatrical groups, arts and
cultural service | ||||||
23 | organizations, local arts councils, visual arts organizations,
| ||||||
24 | and media arts organizations.
On and after the effective date | ||||||
25 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
26 | 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 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
4 | coinage issued
by the State of Illinois, the government of the | ||||||
5 | United States of America,
or the government of any foreign | ||||||
6 | country, and bullion.
| ||||||
7 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
8 | 2004 through August 30, 2014 , graphic arts machinery and | ||||||
9 | equipment, including
repair and
replacement parts, both new and | ||||||
10 | used, and including that manufactured on
special order or | ||||||
11 | purchased for lease, certified by the purchaser to be used
| ||||||
12 | primarily for graphic arts production.
Equipment includes | ||||||
13 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
14 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
15 | immediate
change upon a graphic arts product.
| ||||||
16 | (6) Personal property purchased from a teacher-sponsored | ||||||
17 | student
organization affiliated with an elementary or | ||||||
18 | secondary school located
in Illinois.
| ||||||
19 | (7) Farm machinery and equipment, both new and used, | ||||||
20 | including that
manufactured on special order, certified by the | ||||||
21 | purchaser to be used
primarily for production agriculture or | ||||||
22 | State or federal agricultural
programs, including individual | ||||||
23 | replacement parts for the machinery and
equipment, including | ||||||
24 | machinery and equipment purchased for lease,
and including | ||||||
25 | implements of husbandry defined in Section 1-130 of
the | ||||||
26 | Illinois Vehicle Code, farm machinery and agricultural |
| |||||||
| |||||||
1 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
2 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
3 | but
excluding other motor vehicles required to be registered | ||||||
4 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
5 | hoop houses used for propagating, growing, or
overwintering | ||||||
6 | plants shall be considered farm machinery and equipment under
| ||||||
7 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
8 | shall include units sold
separately from a motor vehicle | ||||||
9 | required to be licensed and units sold mounted
on a motor | ||||||
10 | vehicle required to be licensed if the selling price of the | ||||||
11 | tender
is separately stated.
| ||||||
12 | Farm machinery and equipment shall include precision | ||||||
13 | farming equipment
that is
installed or purchased to be | ||||||
14 | installed on farm machinery and equipment
including, but not | ||||||
15 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
16 | or spreaders.
Precision farming equipment includes, but is not | ||||||
17 | limited to,
soil testing sensors, computers, monitors, | ||||||
18 | software, global positioning
and mapping systems, and other | ||||||
19 | such equipment.
| ||||||
20 | Farm machinery and equipment also includes computers, | ||||||
21 | sensors, software, and
related equipment used primarily in the
| ||||||
22 | computer-assisted operation of production agriculture | ||||||
23 | facilities, equipment,
and activities such as, but
not limited | ||||||
24 | to,
the collection, monitoring, and correlation of
animal and | ||||||
25 | crop data for the purpose of
formulating animal diets and | ||||||
26 | agricultural chemicals. This item (7) is exempt
from the |
| |||||||
| |||||||
1 | provisions of
Section 3-75.
| ||||||
2 | (8) Fuel and petroleum products sold to or used by an air | ||||||
3 | common
carrier, certified by the carrier to be used for | ||||||
4 | consumption, shipment, or
storage in the conduct of its | ||||||
5 | business as an air common carrier, for a
flight destined for or | ||||||
6 | returning from a location or locations
outside the United | ||||||
7 | States without regard to previous or subsequent domestic
| ||||||
8 | stopovers.
| ||||||
9 | (9) Proceeds of mandatory service charges separately | ||||||
10 | stated on
customers' bills for the purchase and consumption of | ||||||
11 | food and beverages
acquired as an incident to the purchase of a | ||||||
12 | service from a serviceman, to
the extent that the proceeds of | ||||||
13 | the service charge are in fact
turned over as tips or as a | ||||||
14 | substitute for tips to the employees who
participate directly | ||||||
15 | in preparing, serving, hosting or cleaning up the
food or | ||||||
16 | beverage function with respect to which the service charge is | ||||||
17 | imposed.
| ||||||
18 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
19 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
20 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
21 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
22 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
23 | individual replacement part for oil field exploration,
| ||||||
24 | drilling, and production equipment, and (vi) machinery and | ||||||
25 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
26 | required to be registered under the Illinois
Vehicle Code.
|
| |||||||
| |||||||
1 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
2 | and
equipment, including repair and replacement parts, both new | ||||||
3 | and
used, including that manufactured on special order, | ||||||
4 | certified by the
purchaser to be used primarily for | ||||||
5 | photoprocessing, and including
photoprocessing machinery and | ||||||
6 | equipment purchased for lease.
| ||||||
7 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
8 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
9 | equipment, including
replacement parts and equipment, and | ||||||
10 | including
equipment purchased for lease, but excluding motor | ||||||
11 | vehicles required to be
registered under the Illinois Vehicle | ||||||
12 | Code.
| ||||||
13 | (13) Semen used for artificial insemination of livestock | ||||||
14 | for direct
agricultural production.
| ||||||
15 | (14) Horses, or interests in horses, registered with and | ||||||
16 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
17 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
18 | Horse Association, United States
Trotting Association, or | ||||||
19 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
20 | racing for prizes. This item (14) is exempt from the provisions | ||||||
21 | of Section 3-75, and the exemption provided for under this item | ||||||
22 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
23 | claim for credit or refund is allowed on or after the effective | ||||||
24 | date of this amendatory Act of the 95th General Assembly for | ||||||
25 | such taxes paid during the period beginning May 30, 2000 and | ||||||
26 | ending on the effective date of this amendatory Act of the 95th |
| |||||||
| |||||||
1 | General Assembly.
| ||||||
2 | (15) Computers and communications equipment utilized for | ||||||
3 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
4 | analysis, or treatment of hospital patients purchased by a | ||||||
5 | lessor who leases
the
equipment, under a lease of one year or | ||||||
6 | longer executed or in effect at the
time
the lessor would | ||||||
7 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
8 | hospital
that has been issued an active tax exemption | ||||||
9 | identification number by the
Department under Section 1g of the | ||||||
10 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
11 | manner that does not qualify for
this exemption
or is used in | ||||||
12 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
13 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
14 | be, based on the fair market value of the property at the time | ||||||
15 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
16 | attempt to collect an
amount (however
designated) that purports | ||||||
17 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
18 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
19 | the lessor. If a lessor improperly collects any such amount | ||||||
20 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
21 | refund of that amount
from the lessor. If, however, that amount | ||||||
22 | is not refunded to the lessee for
any reason, the lessor is | ||||||
23 | liable to pay that amount to the Department.
| ||||||
24 | (16) Personal property purchased by a lessor who leases the
| ||||||
25 | property, under
a
lease of one year or longer executed or in | ||||||
26 | effect at the time
the lessor would otherwise be subject to the |
| |||||||
| |||||||
1 | tax imposed by this Act,
to a governmental body
that has been | ||||||
2 | issued an active tax exemption identification number by the
| ||||||
3 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
4 | Act.
If the
property is leased in a manner that does not | ||||||
5 | qualify for
this exemption
or is used in any other non-exempt | ||||||
6 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
7 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
8 | fair market value of the property at the time the
| ||||||
9 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
10 | to collect an
amount (however
designated) that purports to | ||||||
11 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
12 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
13 | the lessor. If a lessor improperly collects any such amount | ||||||
14 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
15 | refund of that amount
from the lessor. If, however, that amount | ||||||
16 | is not refunded to the lessee for
any reason, the lessor is | ||||||
17 | liable to pay that amount to the Department.
| ||||||
18 | (17) Beginning with taxable years ending on or after | ||||||
19 | December
31,
1995
and
ending with taxable years ending on or | ||||||
20 | before December 31, 2004,
personal property that is
donated for | ||||||
21 | disaster relief to be used in a State or federally declared
| ||||||
22 | disaster area in Illinois or bordering Illinois by a | ||||||
23 | manufacturer or retailer
that is registered in this State to a | ||||||
24 | corporation, society, association,
foundation, or institution | ||||||
25 | that has been issued a sales tax exemption
identification | ||||||
26 | number by the Department that assists victims of the disaster
|
| |||||||
| |||||||
1 | who reside within the declared disaster area.
| ||||||
2 | (18) Beginning with taxable years ending on or after | ||||||
3 | December
31, 1995 and
ending with taxable years ending on or | ||||||
4 | before December 31, 2004, personal
property that is used in the | ||||||
5 | performance of infrastructure repairs in this
State, including | ||||||
6 | but not limited to municipal roads and streets, access roads,
| ||||||
7 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
8 | line extensions,
water distribution and purification | ||||||
9 | facilities, storm water drainage and
retention facilities, and | ||||||
10 | sewage treatment facilities, resulting from a State
or | ||||||
11 | federally declared disaster in Illinois or bordering Illinois | ||||||
12 | when such
repairs are initiated on facilities located in the | ||||||
13 | declared disaster area
within 6 months after the disaster.
| ||||||
14 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
15 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
16 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
17 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
18 | Department of Natural Resources. This paragraph is exempt from | ||||||
19 | the provisions
of
Section 3-75.
| ||||||
20 | (20) A motor vehicle, as that term is defined in Section | ||||||
21 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
22 | corporation, limited liability
company, society, association, | ||||||
23 | foundation, or institution that is determined by
the Department | ||||||
24 | to be organized and operated exclusively for educational
| ||||||
25 | purposes. For purposes of this exemption, "a corporation, | ||||||
26 | limited liability
company, society, association, foundation, |
| |||||||
| |||||||
1 | or institution organized and
operated
exclusively for | ||||||
2 | educational purposes" means all tax-supported public schools,
| ||||||
3 | private schools that offer systematic instruction in useful | ||||||
4 | branches of
learning by methods common to public schools and | ||||||
5 | that compare favorably in
their scope and intensity with the | ||||||
6 | course of study presented in tax-supported
schools, and | ||||||
7 | vocational or technical schools or institutes organized and
| ||||||
8 | operated exclusively to provide a course of study of not less | ||||||
9 | than 6 weeks
duration and designed to prepare individuals to | ||||||
10 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
11 | industrial, business, or commercial
occupation.
| ||||||
12 | (21) Beginning January 1, 2000, personal property, | ||||||
13 | including
food,
purchased through fundraising
events for the | ||||||
14 | benefit of
a public or private elementary or
secondary school, | ||||||
15 | a group of those schools, or one or more school
districts if | ||||||
16 | the events are
sponsored by an entity recognized by the school | ||||||
17 | district that consists
primarily of volunteers and includes
| ||||||
18 | parents and teachers of the school children. This paragraph | ||||||
19 | does not apply
to fundraising
events (i) for the benefit of | ||||||
20 | private home instruction or (ii)
for which the fundraising | ||||||
21 | entity purchases the personal property sold at
the events from | ||||||
22 | another individual or entity that sold the property for the
| ||||||
23 | purpose of resale by the fundraising entity and that
profits | ||||||
24 | from the sale to the
fundraising entity. This paragraph is | ||||||
25 | exempt
from the provisions
of Section 3-75.
| ||||||
26 | (22) Beginning January 1, 2000
and through December 31, |
| |||||||
| |||||||
1 | 2001, new or used automatic vending
machines that prepare and | ||||||
2 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
3 | items, and replacement parts for these machines.
Beginning | ||||||
4 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
5 | for machines used in
commercial, coin-operated
amusement
and | ||||||
6 | vending business if a use or occupation tax is paid on the | ||||||
7 | gross receipts
derived from
the use of the commercial, | ||||||
8 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
9 | is exempt from the provisions of Section 3-75.
| ||||||
10 | (23) Beginning August 23, 2001 and through June 30, 2011, | ||||||
11 | food for human consumption that is to be consumed off the
| ||||||
12 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
13 | drinks, and food that
has been prepared for immediate | ||||||
14 | consumption) and prescription and
nonprescription 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 | (24) Beginning on the effective date of this amendatory Act | ||||||
22 | of the 92nd
General Assembly, computers and communications | ||||||
23 | equipment
utilized for any hospital purpose and equipment used | ||||||
24 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
25 | purchased by a lessor who leases
the equipment, under a lease | ||||||
26 | of one year or longer executed or in effect at the
time the |
| |||||||
| |||||||
1 | lessor would otherwise be subject to the tax imposed by this | ||||||
2 | Act, to a
hospital that has been issued an active tax exemption | ||||||
3 | identification number by
the Department under Section 1g of the | ||||||
4 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
5 | manner that does not qualify for this exemption or is
used in | ||||||
6 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
7 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
8 | be, based on the
fair market value of the property at the time | ||||||
9 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
10 | attempt to collect an amount (however
designated) that purports | ||||||
11 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
12 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
13 | the lessor. If a lessor improperly collects any such amount | ||||||
14 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
15 | refund of that amount
from the lessor. If, however, that amount | ||||||
16 | is not refunded to the lessee for
any reason, the lessor is | ||||||
17 | liable to pay that amount to the Department.
This paragraph is | ||||||
18 | exempt from the provisions of Section 3-75.
| ||||||
19 | (25) Beginning
on the effective date of this amendatory Act | ||||||
20 | of the 92nd General Assembly,
personal property purchased by a | ||||||
21 | lessor
who leases the property, under a lease of one year or | ||||||
22 | longer executed or in
effect at the time the lessor would | ||||||
23 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
24 | governmental body that has been issued an active tax exemption
| ||||||
25 | identification number by the Department under Section 1g of the | ||||||
26 | Retailers'
Occupation Tax Act. If the property is leased in a |
| |||||||
| |||||||
1 | manner that does not
qualify for this exemption or is used in | ||||||
2 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
3 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
4 | be, based on the fair market value of the property at the time
| ||||||
5 | the nonqualifying use occurs. No lessor shall collect or | ||||||
6 | attempt to collect
an amount (however designated) that purports | ||||||
7 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
8 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
9 | the lessor. If a lessor improperly collects any such amount
| ||||||
10 | from the lessee, the lessee shall have a legal right to claim a | ||||||
11 | refund of that
amount from the lessor. If, however, that amount | ||||||
12 | is not refunded to the lessee
for any reason, the lessor is | ||||||
13 | liable to pay that amount to the Department.
This paragraph is | ||||||
14 | exempt from the provisions of Section 3-75.
| ||||||
15 | (26) Beginning January 1, 2008, tangible personal property | ||||||
16 | used in the construction or maintenance of a community water | ||||||
17 | supply, as defined under Section 3.145 of the Environmental | ||||||
18 | Protection Act, that is operated by a not-for-profit | ||||||
19 | corporation that holds a valid water supply permit issued under | ||||||
20 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
21 | exempt from the provisions of Section 3-75.
| ||||||
22 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
23 | eff. 1-1-08; 95-876, eff. 8-21-08.)
| ||||||
24 | (35 ILCS 110/3-70)
| ||||||
25 | Sec. 3-70. Manufacturer's Purchase Credit. For purchases |
| |||||||
| |||||||
1 | of machinery and
equipment made on and after January 1, 1995 | ||||||
2 | and through June 30, 2003, and on and after September 1, 2004 | ||||||
3 | through August 30, 2014 ,
a
purchaser of manufacturing
machinery | ||||||
4 | and equipment that qualifies for the exemption provided by | ||||||
5 | Section
2 of this Act earns a credit in an amount equal to a | ||||||
6 | fixed
percentage of
the tax which would have been incurred | ||||||
7 | under this Act on those purchases.
For purchases of graphic | ||||||
8 | arts machinery and equipment made on or after July
1, 1996 | ||||||
9 | through June 30, 2003, and on and after September 1, 2004 | ||||||
10 | through August 30, 2014 , a purchase of graphic arts machinery | ||||||
11 | and
equipment that qualifies for
the exemption provided by | ||||||
12 | paragraph (5) of Section 3-5 of this Act earns a
credit in an | ||||||
13 | amount equal to a fixed percentage of the tax that would have | ||||||
14 | been
incurred under this Act on those purchases.
The credit | ||||||
15 | earned for the purchase of manufacturing machinery and | ||||||
16 | equipment
and graphic arts machinery and equipment shall be | ||||||
17 | referred to
as the Manufacturer's Purchase Credit.
A graphic | ||||||
18 | arts producer is a person engaged in graphic arts production as
| ||||||
19 | defined in Section 3-30 of the Service Occupation Tax Act. | ||||||
20 | Beginning July 1,
1996, all references in this Section to | ||||||
21 | manufacturers or manufacturing shall
also refer to graphic arts | ||||||
22 | producers or graphic arts production.
| ||||||
23 | The amount of credit shall be a percentage of the tax that | ||||||
24 | would have been
incurred on the purchase of the manufacturing | ||||||
25 | machinery and equipment or
graphic arts machinery and equipment
| ||||||
26 | if the
exemptions provided by Section 2 or paragraph (5) of
|
| |||||||
| |||||||
1 | Section 3-5 of
this Act had not
been applicable.
| ||||||
2 | All purchases prior to October 1, 2003 of manufacturing | ||||||
3 | machinery and
equipment and graphic arts
machinery and | ||||||
4 | equipment that qualify for the exemptions provided by paragraph
| ||||||
5 | (5) of Section 2
or paragraph (5) of Section 3-5 of this Act | ||||||
6 | qualify for the credit without
regard to whether the serviceman | ||||||
7 | elected, or could have elected, under
paragraph (7) of Section | ||||||
8 | 2 of this Act to exclude the transaction from this
Act. If the | ||||||
9 | serviceman's billing to the service customer separately states | ||||||
10 | a
selling price for the exempt manufacturing machinery or | ||||||
11 | equipment or the exempt
graphic arts machinery and equipment, | ||||||
12 | the credit shall be calculated, as
otherwise provided herein, | ||||||
13 | based on that selling price. If the serviceman's
billing does | ||||||
14 | not separately state a selling price for the exempt | ||||||
15 | manufacturing
machinery and equipment or the exempt graphic | ||||||
16 | arts machinery and equipment, the
credit shall be calculated, | ||||||
17 | as otherwise provided herein, based on 50% of the
entire | ||||||
18 | billing. If the serviceman contracts to design, develop, and | ||||||
19 | produce
special order manufacturing machinery and equipment or | ||||||
20 | special order graphic
arts machinery and equipment, and the | ||||||
21 | billing does not separately state a
selling price for such | ||||||
22 | special order machinery and
equipment, the credit shall be | ||||||
23 | calculated, as otherwise provided herein, based
on 50% of the | ||||||
24 | entire billing. The provisions of this paragraph are effective
| ||||||
25 | for purchases made on or after January 1, 1995.
| ||||||
26 | The percentage shall be as follows:
|
| |||||||
| |||||||
1 | (1) 15% for purchases made on or before June 30, 1995.
| ||||||
2 | (2) 25% for purchases made after June 30, 1995, and on | ||||||
3 | or before June 30,
1996.
| ||||||
4 | (3) 40% for purchases made after June 30, 1996, and on | ||||||
5 | or before June 30,
1997.
| ||||||
6 | (4) 50% for purchases made on or after July 1, 1997.
| ||||||
7 | (a) Manufacturer's Purchase Credit earned prior to July 1, | ||||||
8 | 2003. This subsection (a) applies to Manufacturer's Purchase | ||||||
9 | Credit earned prior to July 1, 2003. A purchaser of production | ||||||
10 | related tangible personal property desiring to use
the | ||||||
11 | Manufacturer's Purchase Credit shall certify to the seller | ||||||
12 | prior to
October 1, 2003 that the
purchaser is satisfying all | ||||||
13 | or part of
the
liability under the Use Tax Act or the Service | ||||||
14 | Use Tax Act that is due on the
purchase of the production | ||||||
15 | related tangible personal property by use of a
Manufacturer's | ||||||
16 | Purchase Credit. The Manufacturer's Purchase Credit
| ||||||
17 | certification
must be dated and shall include the name and | ||||||
18 | address of the purchaser, the
purchaser's registration number, | ||||||
19 | if registered, the
credit being
applied, and a statement that | ||||||
20 | the State Use Tax or Service Use Tax liability
is being | ||||||
21 | satisfied with the manufacturer's or graphic arts producer's
| ||||||
22 | accumulated purchase credit.
Certification may be incorporated | ||||||
23 | into the manufacturer's or graphic arts
producer's
purchase | ||||||
24 | order.
Manufacturer's Purchase Credit certification provided | ||||||
25 | by the manufacturer
or graphic
arts producer
prior to October | ||||||
26 | 1, 2003 may be used to satisfy the retailer's or
serviceman's |
| |||||||
| |||||||
1 | liability under the
Retailers' Occupation Tax Act or
Service
| ||||||
2 | Occupation Tax Act for the credit claimed, not to exceed
6.25% | ||||||
3 | of the receipts subject to tax from a qualifying purchase, but | ||||||
4 | only if
the retailer or serviceman reports the Manufacturer's | ||||||
5 | Purchase Credit claimed
as required by the Department. A | ||||||
6 | Manufacturer's Purchase Credit reported on
any original or | ||||||
7 | amended return
filed under
this Act after October 20, 2003 | ||||||
8 | shall be disallowed. The Manufacturer's
Purchase Credit earned | ||||||
9 | by
purchase of exempt manufacturing machinery and equipment
or | ||||||
10 | graphic arts machinery and equipment is a
non-transferable | ||||||
11 | credit. A manufacturer or graphic arts producer
that enters | ||||||
12 | into a
contract involving the installation of tangible personal | ||||||
13 | property into
real estate within a manufacturing or graphic | ||||||
14 | arts production facility, prior
to October 1, 2003, may | ||||||
15 | authorize a construction contractor
to utilize credit | ||||||
16 | accumulated by the manufacturer or graphic arts producer
to
| ||||||
17 | purchase the tangible personal property. A manufacturer or | ||||||
18 | graphic arts
producer
intending to use accumulated credit to | ||||||
19 | purchase such tangible personal
property shall execute a | ||||||
20 | written contract authorizing the contractor to utilize
a | ||||||
21 | specified dollar amount of credit. The contractor shall | ||||||
22 | furnish, prior to
October 1, 2003, the supplier
with the | ||||||
23 | manufacturer's or graphic arts producer's name, registration | ||||||
24 | or
resale number, and a statement
that a specific amount of the | ||||||
25 | Use Tax or Service Use Tax liability, not to
exceed 6.25% of | ||||||
26 | the selling price, is being satisfied with the credit. The
|
| |||||||
| |||||||
1 | manufacturer or graphic arts producer shall remain liable to | ||||||
2 | timely report
all information required by
the annual Report of | ||||||
3 | Manufacturer's Purchase Credit Used for credit utilized by
a
| ||||||
4 | construction contractor.
| ||||||
5 | No Manufacturer's Purchase Credit earned prior to July 1, | ||||||
6 | 2003 may be used after October 1, 2003. The Manufacturer's | ||||||
7 | Purchase Credit may be used to satisfy liability under the
Use | ||||||
8 | Tax Act or the Service Use Tax Act due on the purchase of | ||||||
9 | production
related tangible personal property (including | ||||||
10 | purchases by a manufacturer, by
a graphic arts producer,
or a | ||||||
11 | lessor who rents or leases the use of
the property to a | ||||||
12 | manufacturer or graphic arts producer) that does not
otherwise | ||||||
13 | qualify for the manufacturing machinery and equipment
| ||||||
14 | exemption or the graphic arts machinery and equipment | ||||||
15 | exemption.
"Production related tangible personal
property" | ||||||
16 | means (i) all tangible personal property used or consumed by | ||||||
17 | the
purchaser in a manufacturing facility in which a | ||||||
18 | manufacturing process
described in Section 2-45 of the | ||||||
19 | Retailers' Occupation Tax Act
takes place, including tangible | ||||||
20 | personal property purchased for incorporation
into
real estate | ||||||
21 | within a manufacturing facility and including, but not limited
| ||||||
22 | to,
tangible personal property used or consumed in activities | ||||||
23 | such as
pre-production
material handling, receiving, quality | ||||||
24 | control, inventory control, storage,
staging, and packaging | ||||||
25 | for shipping and transportation purposes; (ii)
all tangible | ||||||
26 | personal property used or consumed by the purchaser in a |
| |||||||
| |||||||
1 | graphic
arts facility in which graphic arts production as | ||||||
2 | described in Section 2-30 of
the Retailers' Occupation Tax Act | ||||||
3 | takes place, including tangible personal
property purchased | ||||||
4 | for incorporation into real estate within a graphic arts
| ||||||
5 | facility and including, but not limited to, all tangible | ||||||
6 | personal property used
or consumed in activities such as | ||||||
7 | graphic arts preliminary or pre-press
production, | ||||||
8 | pre-production material handling, receiving, quality control,
| ||||||
9 | inventory control, storage, staging, sorting, labeling, | ||||||
10 | mailing, tying,
wrapping, and packaging; and (iii) all tangible | ||||||
11 | personal property used or
consumed by the purchaser
for | ||||||
12 | research and
development. "Production related tangible | ||||||
13 | personal property" does not include
(i) tangible personal | ||||||
14 | property used, within or without a manufacturing or
graphic | ||||||
15 | arts
facility, in sales, purchasing,
accounting, fiscal | ||||||
16 | management, marketing,
personnel recruitment or selection, or | ||||||
17 | landscaping or (ii) tangible personal
property required to be | ||||||
18 | titled or registered with a department, agency, or unit
of | ||||||
19 | federal, state, or local
government. The Manufacturer's | ||||||
20 | Purchase Credit may be used, prior to October
1, 2003, to | ||||||
21 | satisfy the tax
arising either from the purchase of
machinery | ||||||
22 | and equipment on or after January 1, 1995
for which the | ||||||
23 | manufacturing machinery and equipment exemption
provided by | ||||||
24 | Section 2 of this Act was
erroneously claimed, or the purchase | ||||||
25 | of machinery and equipment on or after
July 1, 1996 for which | ||||||
26 | the exemption provided by paragraph (5) of Section 3-5
of this |
| |||||||
| |||||||
1 | Act was erroneously claimed, but not in
satisfaction of | ||||||
2 | penalty, if any, and interest for failure to pay the tax
when | ||||||
3 | due. A
purchaser of production related tangible personal | ||||||
4 | property who is required to
pay Illinois Use Tax or Service Use | ||||||
5 | Tax on the purchase directly to the
Department may, prior to | ||||||
6 | October 1, 2003, utilize the Manufacturer's
Purchase Credit in | ||||||
7 | satisfaction of
the tax arising from that purchase, but not in
| ||||||
8 | satisfaction of penalty and
interest.
A purchaser who uses the | ||||||
9 | Manufacturer's Purchase Credit to purchase
property
which is | ||||||
10 | later determined not to be production related tangible personal
| ||||||
11 | property may be liable for tax, penalty, and interest on the | ||||||
12 | purchase of that
property as of the date of purchase but shall | ||||||
13 | be entitled to use the disallowed
Manufacturer's Purchase
| ||||||
14 | Credit, so long as it has not expired and is used prior to | ||||||
15 | October 1, 2003,
on qualifying purchases of production
related | ||||||
16 | tangible personal property not previously subject to credit | ||||||
17 | usage.
The Manufacturer's Purchase Credit earned by a | ||||||
18 | manufacturer or graphic arts
producer
expires the last day of | ||||||
19 | the second calendar year following the
calendar year in
which | ||||||
20 | the credit arose. No Manufacturer's Purchase Credit may be used | ||||||
21 | after
September 30, 2003
regardless of
when that credit was | ||||||
22 | earned.
| ||||||
23 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
24 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
25 | Credit Earned for each calendar year
no later
than the last day | ||||||
26 | of the sixth month following the calendar year in which a
|
| |||||||
| |||||||
1 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
2 | Manufacturer's Purchase
Credit
Earned shall be filed on forms | ||||||
3 | as prescribed or approved by the Department and
shall state, | ||||||
4 | for each month of the calendar year: (i) the total purchase | ||||||
5 | price
of all purchases of exempt manufacturing or graphic arts | ||||||
6 | machinery on which
the credit was
earned; (ii) the total State | ||||||
7 | Use Tax or Service Use Tax which would have been
due on those | ||||||
8 | items; (iii) the percentage used to calculate the amount of | ||||||
9 | credit
earned; (iv) the amount of credit earned; and (v) such | ||||||
10 | other information as the
Department may reasonably require. A | ||||||
11 | purchaser earning Manufacturer's Purchase
Credit shall | ||||||
12 | maintain records which identify, as to each purchase of
| ||||||
13 | manufacturing or graphic arts machinery and equipment on which | ||||||
14 | the
purchaser earned
Manufacturer's Purchase Credit, the | ||||||
15 | vendor (including, if applicable, either
the vendor's | ||||||
16 | registration number or Federal Employer Identification | ||||||
17 | Number),
the purchase price, and the amount of Manufacturer's | ||||||
18 | Purchase Credit earned on
each purchase.
| ||||||
19 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
20 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
21 | Credit Used for each calendar year no
later than the last day | ||||||
22 | of the sixth month following the calendar year in which
a | ||||||
23 | Manufacturer's Purchase Credit is used. A Report of | ||||||
24 | Manufacturer's Purchase
Credit Used shall be filed on forms as | ||||||
25 | prescribed or approved by the Department
and
shall state, for | ||||||
26 | each month of the calendar year: (i) the total purchase price
|
| |||||||
| |||||||
1 | of production related tangible personal property purchased | ||||||
2 | from Illinois
suppliers; (ii) the total purchase price
of | ||||||
3 | production related tangible personal property purchased from | ||||||
4 | out-of-state
suppliers; (iii) the total amount of credit used | ||||||
5 | during such month; and (iv)
such
other information as the | ||||||
6 | Department may reasonably require. A purchaser using
| ||||||
7 | Manufacturer's Purchase Credit shall maintain records that | ||||||
8 | identify, as to
each purchase of production related tangible | ||||||
9 | personal property on which the
purchaser used Manufacturer's | ||||||
10 | Purchase Credit, the vendor (including, if
applicable, either | ||||||
11 | the vendor's registration number or Federal Employer
| ||||||
12 | Identification Number), the purchase price, and the amount of | ||||||
13 | Manufacturer's
Purchase Credit used on each purchase.
| ||||||
14 | No annual report shall be filed before May 1, 1996 or after | ||||||
15 | June 30,
2004.
A purchaser that fails to file an annual Report | ||||||
16 | of Manufacturer's Purchase
Credit
Earned or an annual Report of | ||||||
17 | Manufacturer's Purchase Credit Used by the last
day
of the | ||||||
18 | sixth month following the end of the calendar year shall | ||||||
19 | forfeit all
Manufacturer's Purchase Credit for that calendar | ||||||
20 | year unless it establishes
that its failure to file was due to | ||||||
21 | reasonable cause.
Manufacturer's Purchase Credit
reports may | ||||||
22 | be amended to report and claim credit on qualifying purchases | ||||||
23 | not
previously reported at any time before the credit would | ||||||
24 | have expired, unless
both the Department and the purchaser have | ||||||
25 | agreed to an extension of
the statute of limitations for the | ||||||
26 | issuance of a notice of tax liability as
provided in Section 4 |
| |||||||
| |||||||
1 | of the Retailers' Occupation Tax Act. If the time for
| ||||||
2 | assessment or refund has been extended, then amended reports | ||||||
3 | for a calendar
year may be filed at any time prior to the date | ||||||
4 | to which the statute of
limitations for the calendar year or | ||||||
5 | portion thereof has been extended.
No Manufacturer's Purchase | ||||||
6 | Credit report filed with the Department
for periods
prior to | ||||||
7 | January 1, 1995 shall be approved.
Manufacturer's Purchase | ||||||
8 | Credit claimed on an amended report may be used,
prior to | ||||||
9 | October 1, 2003, to
satisfy tax liability under the Use Tax Act | ||||||
10 | or the Service Use Tax Act (i) on
qualifying purchases of | ||||||
11 | production related tangible personal property made
after the | ||||||
12 | date the amended report is filed or (ii) assessed by the | ||||||
13 | Department
on qualifying purchases of production related | ||||||
14 | tangible personal property made
in the case of manufacturers on | ||||||
15 | or after January 1, 1995, or in the case
of graphic arts | ||||||
16 | producers on or after July 1, 1996.
| ||||||
17 | If the purchaser is not the manufacturer or a graphic arts | ||||||
18 | producer, but
rents or
leases the use of the property to a | ||||||
19 | manufacturer or a graphic arts
producer,
the purchaser may | ||||||
20 | earn, report, and use
Manufacturer's
Purchase Credit in the | ||||||
21 | same manner as a manufacturer or graphic arts
producer.
| ||||||
22 | A purchaser shall not be entitled to any Manufacturer's | ||||||
23 | Purchase
Credit for a purchase that is required to be reported | ||||||
24 | and is not timely
reported as
provided in this Section. A | ||||||
25 | purchaser remains liable for (i) any
tax that was satisfied by | ||||||
26 | use of a Manufacturer's Purchase Credit, as of the
date of |
| |||||||
| |||||||
1 | purchase, if that use is not timely reported as required in | ||||||
2 | this
Section and (ii) for any applicable penalties and interest | ||||||
3 | for failing to pay
the tax when due. No Manufacturer's Purchase | ||||||
4 | Credit may be used after
September 30, 2003 to
satisfy any
tax | ||||||
5 | liability imposed under this Act, including any audit | ||||||
6 | liability.
| ||||||
7 | (b) Manufacturer's Purchase Credit earned on and after | ||||||
8 | September 1, 2004. This subsection (b) applies to | ||||||
9 | Manufacturer's Purchase Credit earned on or after September 1, | ||||||
10 | 2004. Manufacturer's Purchase Credit earned on or after | ||||||
11 | September 1, 2004 may only be used to satisfy the Use Tax or | ||||||
12 | Service Use Tax liability incurred on production related | ||||||
13 | tangible personal property purchased on or after September 1, | ||||||
14 | 2004. A purchaser of production related tangible personal | ||||||
15 | property desiring to use the Manufacturer's Purchase Credit | ||||||
16 | shall certify to the seller that the purchaser is satisfying | ||||||
17 | all or part of the liability under the Use Tax Act or the | ||||||
18 | Service Use Tax Act that is due on the purchase of the | ||||||
19 | production related tangible personal property by use of a | ||||||
20 | Manufacturer's Purchase Credit. The Manufacturer's Purchase | ||||||
21 | Credit certification must be dated and shall include the name | ||||||
22 | and address of the purchaser, the purchaser's registration | ||||||
23 | number, if registered, the credit being applied, and a | ||||||
24 | statement that the State Use Tax or Service Use Tax liability | ||||||
25 | is being satisfied with the manufacturer's or graphic arts | ||||||
26 | producer's accumulated purchase credit. Certification may be |
| |||||||
| |||||||
1 | incorporated into the manufacturer's or graphic arts | ||||||
2 | producer's purchase order. Manufacturer's Purchase Credit | ||||||
3 | certification provided by the manufacturer or graphic arts | ||||||
4 | producer may be used to satisfy the retailer's or serviceman's | ||||||
5 | liability under the Retailers' Occupation Tax Act or Service | ||||||
6 | Occupation Tax Act for the credit claimed, not to exceed 6.25% | ||||||
7 | of the receipts subject to tax from a qualifying purchase, but | ||||||
8 | only if the retailer or serviceman reports the Manufacturer's | ||||||
9 | Purchase Credit claimed as required by the Department. The | ||||||
10 | Manufacturer's Purchase Credit earned by purchase of exempt | ||||||
11 | manufacturing machinery and equipment or graphic arts | ||||||
12 | machinery and equipment is a non-transferable credit. A | ||||||
13 | manufacturer or graphic arts producer that enters into a | ||||||
14 | contract involving the installation of tangible personal | ||||||
15 | property into real estate within a manufacturing or graphic | ||||||
16 | arts production facility may, on or after September 1, 2004, | ||||||
17 | authorize a construction contractor to utilize credit | ||||||
18 | accumulated by the manufacturer or graphic arts producer to | ||||||
19 | purchase the tangible personal property. A manufacturer or | ||||||
20 | graphic arts producer intending to use accumulated credit to | ||||||
21 | purchase such tangible personal property shall execute a | ||||||
22 | written contract authorizing the contractor to utilize a | ||||||
23 | specified dollar amount of credit. The contractor shall furnish | ||||||
24 | the supplier with the manufacturer's or graphic arts producer's | ||||||
25 | name, registration or resale number, and a statement that a | ||||||
26 | specific amount of the Use Tax or Service Use Tax liability, |
| |||||||
| |||||||
1 | not to exceed 6.25% of the selling price, is being satisfied | ||||||
2 | with the credit. The manufacturer or graphic arts producer | ||||||
3 | shall remain liable to timely report all information required | ||||||
4 | by the annual Report of Manufacturer's Purchase Credit Used for | ||||||
5 | credit utilized by a construction contractor. | ||||||
6 | The Manufacturer's Purchase Credit may be used to satisfy | ||||||
7 | liability under the Use Tax Act or the Service Use Tax Act due | ||||||
8 | on the purchase, made on or after September 1, 2004, of | ||||||
9 | production related tangible personal property (including | ||||||
10 | purchases by a manufacturer, by a graphic arts producer, or a | ||||||
11 | lessor who rents or leases the use of the property to a | ||||||
12 | manufacturer or graphic arts producer) that does not otherwise | ||||||
13 | qualify for the manufacturing machinery and equipment | ||||||
14 | exemption or the graphic arts machinery and equipment | ||||||
15 | exemption. "Production related tangible personal property" | ||||||
16 | means (i) all tangible personal property used or consumed by | ||||||
17 | the purchaser in a manufacturing facility in which a | ||||||
18 | manufacturing process described in Section 2-45 of the | ||||||
19 | Retailers' Occupation Tax Act takes place, including tangible | ||||||
20 | personal property purchased for incorporation into real estate | ||||||
21 | within a manufacturing facility and including, but not limited | ||||||
22 | to, tangible personal property used or consumed in activities | ||||||
23 | such as pre-production material handling, receiving, quality | ||||||
24 | control, inventory control, storage, staging, and packaging | ||||||
25 | for shipping and transportation purposes; (ii) all tangible | ||||||
26 | personal property used or consumed by the purchaser in a |
| |||||||
| |||||||
1 | graphic arts facility in which graphic arts production as | ||||||
2 | described in Section 2-30 of the Retailers' Occupation Tax Act | ||||||
3 | takes place, including tangible personal property purchased | ||||||
4 | for incorporation into real estate within a graphic arts | ||||||
5 | facility and including, but not limited to, all tangible | ||||||
6 | personal property used or consumed in activities such as | ||||||
7 | graphic arts preliminary or pre-press production, | ||||||
8 | pre-production material handling, receiving, quality control, | ||||||
9 | inventory control, storage, staging, sorting, labeling, | ||||||
10 | mailing, tying, wrapping, and packaging; and (iii) all tangible | ||||||
11 | personal property used or consumed by the purchaser for | ||||||
12 | research and development. "Production related tangible | ||||||
13 | personal property" does not include (i) tangible personal | ||||||
14 | property used, within or without a manufacturing or graphic | ||||||
15 | arts facility, in sales, purchasing, accounting, fiscal | ||||||
16 | management, marketing, personnel recruitment or selection, or | ||||||
17 | landscaping or (ii) tangible personal property required to be | ||||||
18 | titled or registered with a department, agency, or unit of | ||||||
19 | federal, state, or local government. The Manufacturer's | ||||||
20 | Purchase Credit may be used to satisfy the tax arising either | ||||||
21 | from the purchase of machinery and equipment on or after | ||||||
22 | September 1, 2004 for which the manufacturing machinery and | ||||||
23 | equipment exemption provided by Section 2 of this Act was | ||||||
24 | erroneously claimed, or the purchase of machinery and equipment | ||||||
25 | on or after September 1, 2004 for which the exemption provided | ||||||
26 | by paragraph (5) of Section 3-5 of this Act was erroneously |
| |||||||
| |||||||
1 | claimed, but not in satisfaction of penalty, if any, and | ||||||
2 | interest for failure to pay the tax when due. A purchaser of | ||||||
3 | production related tangible personal property that is | ||||||
4 | purchased on or after September 1, 2004 who is required to pay | ||||||
5 | Illinois Use Tax or Service Use Tax on the purchase directly to | ||||||
6 | the Department may utilize the Manufacturer's Purchase Credit | ||||||
7 | in satisfaction of the tax arising from that purchase, but not | ||||||
8 | in satisfaction of penalty and interest. A purchaser who uses | ||||||
9 | the Manufacturer's Purchase Credit to purchase property on and | ||||||
10 | after September 1, 2004 which is later determined not to be | ||||||
11 | production related tangible personal property may be liable for | ||||||
12 | tax, penalty, and interest on the purchase of that property as | ||||||
13 | of the date of purchase but shall be entitled to use the | ||||||
14 | disallowed Manufacturer's Purchase Credit, so long as it has | ||||||
15 | not expired, on qualifying purchases of production related | ||||||
16 | tangible personal property not previously subject to credit | ||||||
17 | usage. The Manufacturer's Purchase Credit earned by a | ||||||
18 | manufacturer or graphic arts producer expires the last day of | ||||||
19 | the second calendar year following the calendar year in which | ||||||
20 | the credit arose. | ||||||
21 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
22 | sign and file an annual Report of Manufacturer's Purchase | ||||||
23 | Credit Earned for each calendar year no later than the last day | ||||||
24 | of the sixth month following the calendar year in which a | ||||||
25 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
26 | Manufacturer's Purchase Credit Earned shall be filed on forms |
| |||||||
| |||||||
1 | as prescribed or approved by the Department and shall state, | ||||||
2 | for each month of the calendar year: (i) the total purchase | ||||||
3 | price of all purchases of exempt manufacturing or graphic arts | ||||||
4 | machinery on which the credit was earned; (ii) the total State | ||||||
5 | Use Tax or Service Use Tax which would have been due on those | ||||||
6 | items; (iii) the percentage used to calculate the amount of | ||||||
7 | credit earned; (iv) the amount of credit earned; and (v) such | ||||||
8 | other information as the Department may reasonably require. A | ||||||
9 | purchaser earning Manufacturer's Purchase Credit shall | ||||||
10 | maintain records which identify, as to each purchase of | ||||||
11 | manufacturing or graphic arts machinery and equipment on which | ||||||
12 | the purchaser earned Manufacturer's Purchase Credit, the | ||||||
13 | vendor (including, if applicable, either the vendor's | ||||||
14 | registration number or Federal Employer Identification | ||||||
15 | Number), the purchase price, and the amount of Manufacturer's | ||||||
16 | Purchase Credit earned on each purchase. | ||||||
17 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
18 | sign and file an annual Report of Manufacturer's Purchase | ||||||
19 | Credit Used for each calendar year no later than the last day | ||||||
20 | of the sixth month following the calendar year in which a | ||||||
21 | Manufacturer's Purchase Credit is used. A Report of | ||||||
22 | Manufacturer's Purchase Credit Used shall be filed on forms as | ||||||
23 | prescribed or approved by the Department and shall state, for | ||||||
24 | each month of the calendar year: (i) the total purchase price | ||||||
25 | of production related tangible personal property purchased | ||||||
26 | from Illinois suppliers; (ii) the total purchase price of |
| |||||||
| |||||||
1 | production related tangible personal property purchased from | ||||||
2 | out-of-state suppliers; (iii) the total amount of credit used | ||||||
3 | during such month; and (iv) such other information as the | ||||||
4 | Department may reasonably require. A purchaser using | ||||||
5 | Manufacturer's Purchase Credit shall maintain records that | ||||||
6 | identify, as to each purchase of production related tangible | ||||||
7 | personal property on which the purchaser used Manufacturer's | ||||||
8 | Purchase Credit, the vendor (including, if applicable, either | ||||||
9 | the vendor's registration number or Federal Employer | ||||||
10 | Identification Number), the purchase price, and the amount of | ||||||
11 | Manufacturer's Purchase Credit used on each purchase. | ||||||
12 | A purchaser that fails to file an annual Report of | ||||||
13 | Manufacturer's Purchase Credit Earned or an annual Report of | ||||||
14 | Manufacturer's Purchase Credit Used by the last day of the | ||||||
15 | sixth month following the end of the calendar year shall | ||||||
16 | forfeit all Manufacturer's Purchase Credit for that calendar | ||||||
17 | year unless it establishes that its failure to file was due to | ||||||
18 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
19 | be amended to report and claim credit on qualifying purchases | ||||||
20 | not previously reported at any time before the credit would | ||||||
21 | have expired, unless both the Department and the purchaser have | ||||||
22 | agreed to an extension of the statute of limitations for the | ||||||
23 | issuance of a notice of tax liability as provided in Section 4 | ||||||
24 | of the Retailers' Occupation Tax Act. If the time for | ||||||
25 | assessment or refund has been extended, then amended reports | ||||||
26 | for a calendar year may be filed at any time prior to the date |
| |||||||
| |||||||
1 | to which the statute of limitations for the calendar year or | ||||||
2 | portion thereof has been extended. Manufacturer's Purchase | ||||||
3 | Credit claimed on an amended report may be used to satisfy tax | ||||||
4 | liability under the Use Tax Act or the Service Use Tax Act (i) | ||||||
5 | on qualifying purchases of production related tangible | ||||||
6 | personal property made after the date the amended report is | ||||||
7 | filed or (ii) assessed by the Department on qualifying | ||||||
8 | production related tangible personal property purchased on or | ||||||
9 | after September 1, 2004. | ||||||
10 | If the purchaser is not the manufacturer or a graphic arts | ||||||
11 | producer, but rents or leases the use of the property to a | ||||||
12 | manufacturer or a graphic arts producer, the purchaser may | ||||||
13 | earn, report, and use Manufacturer's Purchase Credit in the | ||||||
14 | same manner as a manufacturer or graphic arts producer.
A | ||||||
15 | purchaser shall not be entitled to any Manufacturer's Purchase | ||||||
16 | Credit for a purchase that is required to be reported and is | ||||||
17 | not timely reported as provided in this Section. A purchaser | ||||||
18 | remains liable for (i) any tax that was satisfied by use of a | ||||||
19 | Manufacturer's Purchase Credit, as of the date of purchase, if | ||||||
20 | that use is not timely reported as required in this Section and | ||||||
21 | (ii) for any applicable penalties and interest for failing to | ||||||
22 | pay the tax when due.
| ||||||
23 | (Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04.)
| ||||||
24 | Section 15. The Service Occupation Tax Act is amended by | ||||||
25 | changing Section 3-5 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| ||||||
2 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
3 | property is
exempt from the tax imposed by this Act:
| ||||||
4 | (1) Personal property sold by a corporation, society, | ||||||
5 | association,
foundation, institution, or organization, other | ||||||
6 | than a limited liability
company, that is organized and | ||||||
7 | operated as a not-for-profit service enterprise
for the benefit | ||||||
8 | of persons 65 years of age or older if the personal property
| ||||||
9 | was not purchased by the enterprise for the purpose of resale | ||||||
10 | by the
enterprise.
| ||||||
11 | (2) Personal property purchased by a not-for-profit | ||||||
12 | Illinois county fair
association for use in conducting, | ||||||
13 | operating, or promoting the county fair.
| ||||||
14 | (3) Personal property purchased by any not-for-profit
arts | ||||||
15 | or cultural organization that establishes, by proof required by | ||||||
16 | the
Department by
rule, that it has received an exemption under | ||||||
17 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
18 | organized and operated primarily for the
presentation
or | ||||||
19 | support of arts or cultural programming, activities, or | ||||||
20 | services. These
organizations include, but are not limited to, | ||||||
21 | music and dramatic arts
organizations such as symphony | ||||||
22 | orchestras and theatrical groups, arts and
cultural service | ||||||
23 | organizations, local arts councils, visual arts organizations,
| ||||||
24 | and media arts organizations.
On and after the effective date | ||||||
25 | of this amendatory Act of the 92nd General
Assembly, however, |
| |||||||
| |||||||
1 | an entity otherwise eligible for this exemption shall not
make | ||||||
2 | tax-free purchases unless it has an active identification | ||||||
3 | number issued by
the Department.
| ||||||
4 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
5 | coinage
issued by the State of Illinois, the government of the | ||||||
6 | United States of
America, or the government of any foreign | ||||||
7 | country, and bullion.
| ||||||
8 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
9 | 2004 through August 30, 2014 , graphic arts machinery and | ||||||
10 | equipment, including
repair and
replacement parts, both new and | ||||||
11 | used, and including that manufactured on
special order or | ||||||
12 | purchased for lease, certified by the purchaser to be used
| ||||||
13 | primarily for graphic arts production.
Equipment includes | ||||||
14 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
15 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
16 | immediate change
upon a graphic arts product.
| ||||||
17 | (6) Personal property sold by a teacher-sponsored student | ||||||
18 | organization
affiliated with an elementary or secondary school | ||||||
19 | located in Illinois.
| ||||||
20 | (7) Farm machinery and equipment, both new and used, | ||||||
21 | including that
manufactured on special order, certified by the | ||||||
22 | purchaser to be used
primarily for production agriculture or | ||||||
23 | State or federal agricultural
programs, including individual | ||||||
24 | replacement parts for the machinery and
equipment, including | ||||||
25 | machinery and equipment purchased for lease,
and including | ||||||
26 | implements of husbandry defined in Section 1-130 of
the |
| |||||||
| |||||||
1 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
2 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
3 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
4 | but
excluding other motor vehicles required to be registered | ||||||
5 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
6 | hoop houses used for propagating, growing, or
overwintering | ||||||
7 | plants shall be considered farm machinery and equipment under
| ||||||
8 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
9 | shall include units sold
separately from a motor vehicle | ||||||
10 | required to be licensed and units sold mounted
on a motor | ||||||
11 | vehicle required to be licensed if the selling price of the | ||||||
12 | tender
is separately stated.
| ||||||
13 | Farm machinery and equipment shall include precision | ||||||
14 | farming equipment
that is
installed or purchased to be | ||||||
15 | installed on farm machinery and equipment
including, but not | ||||||
16 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
17 | or spreaders.
Precision farming equipment includes, but is not | ||||||
18 | limited to,
soil testing sensors, computers, monitors, | ||||||
19 | software, global positioning
and mapping systems, and other | ||||||
20 | such equipment.
| ||||||
21 | Farm machinery and equipment also includes computers, | ||||||
22 | sensors, software, and
related equipment used primarily in the
| ||||||
23 | computer-assisted operation of production agriculture | ||||||
24 | facilities, equipment,
and activities such as, but
not limited | ||||||
25 | to,
the collection, monitoring, and correlation of
animal and | ||||||
26 | crop data for the purpose of
formulating animal diets and |
| |||||||
| |||||||
1 | agricultural chemicals. This item (7) is exempt
from the | ||||||
2 | provisions of
Section 3-55.
| ||||||
3 | (8) Fuel and petroleum products sold to or used by an air | ||||||
4 | common
carrier, certified by the carrier to be used for | ||||||
5 | consumption, shipment,
or storage in the conduct of its | ||||||
6 | business as an air common carrier, for
a flight destined for or | ||||||
7 | returning from a location or locations
outside the United | ||||||
8 | States without regard to previous or subsequent domestic
| ||||||
9 | stopovers.
| ||||||
10 | (9) Proceeds of mandatory service charges separately
| ||||||
11 | stated on customers' bills for the purchase and consumption of | ||||||
12 | food and
beverages, to the extent that the proceeds of the | ||||||
13 | service charge are in fact
turned over as tips or as a | ||||||
14 | substitute for tips to the employees who
participate directly | ||||||
15 | in preparing, serving, hosting or cleaning up the
food or | ||||||
16 | beverage function with respect to which the service charge is | ||||||
17 | imposed.
| ||||||
18 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
19 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
20 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
21 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
22 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
23 | individual replacement part for oil field exploration,
| ||||||
24 | drilling, and production equipment, and (vi) machinery and | ||||||
25 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
26 | required to be registered under the Illinois
Vehicle Code.
|
| |||||||
| |||||||
1 | (11) Photoprocessing machinery and equipment, including | ||||||
2 | repair and
replacement parts, both new and used, including that | ||||||
3 | manufactured on
special order, certified by the purchaser to be | ||||||
4 | used primarily for
photoprocessing, and including | ||||||
5 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
6 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
7 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
8 | equipment, including
replacement parts and equipment, and | ||||||
9 | including
equipment
purchased for lease, but excluding motor | ||||||
10 | vehicles required to be registered
under the Illinois Vehicle | ||||||
11 | Code.
| ||||||
12 | (13) Beginning January 1, 1992 and through June 30, 2011, | ||||||
13 | food for human consumption that is to be consumed off the | ||||||
14 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
15 | drinks and food that
has been prepared for immediate | ||||||
16 | consumption) and prescription and
non-prescription medicines, | ||||||
17 | drugs, medical appliances, and insulin, urine
testing | ||||||
18 | materials, syringes, and needles used by diabetics, for human | ||||||
19 | use,
when purchased for use by a person receiving medical | ||||||
20 | assistance under
Article 5 of the Illinois Public Aid Code who | ||||||
21 | resides in a licensed
long-term care facility, as defined in | ||||||
22 | the Nursing Home Care Act.
| ||||||
23 | (14) Semen used for artificial insemination of livestock | ||||||
24 | for direct
agricultural production.
| ||||||
25 | (15) Horses, or interests in horses, registered with and | ||||||
26 | 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. This item (15) is exempt from the provisions | ||||||
5 | of Section 3-55, and the exemption provided for under this item | ||||||
6 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
7 | claim for credit or refund is allowed on or after January 1, | ||||||
8 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
9 | paid during the period beginning May 30, 2000 and ending on | ||||||
10 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
11 | (16) Computers and communications equipment utilized for | ||||||
12 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
13 | analysis, or treatment of hospital patients sold to a lessor | ||||||
14 | who leases the
equipment, under a lease of one year or longer | ||||||
15 | executed or in effect at the
time of the purchase, to a
| ||||||
16 | hospital
that has been issued an active tax exemption | ||||||
17 | identification number by the
Department under Section 1g of the | ||||||
18 | Retailers' Occupation Tax Act.
| ||||||
19 | (17) Personal property sold to a lessor who leases the
| ||||||
20 | property, under a
lease of one year or longer executed or in | ||||||
21 | effect at the time of the purchase,
to a governmental body
that | ||||||
22 | has been issued an active tax exemption identification number | ||||||
23 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
24 | Tax Act.
| ||||||
25 | (18) Beginning with taxable years ending on or after | ||||||
26 | December
31, 1995
and
ending with taxable years ending on or |
| |||||||
| |||||||
1 | before December 31, 2004,
personal property that is
donated for | ||||||
2 | disaster relief to be used in a State or federally declared
| ||||||
3 | disaster area in Illinois or bordering Illinois by a | ||||||
4 | manufacturer or retailer
that is registered in this State to a | ||||||
5 | corporation, society, association,
foundation, or institution | ||||||
6 | that has been issued a sales tax exemption
identification | ||||||
7 | number by the Department that assists victims of the disaster
| ||||||
8 | who reside within the declared disaster area.
| ||||||
9 | (19) Beginning with taxable years ending on or after | ||||||
10 | December
31, 1995 and
ending with taxable years ending on or | ||||||
11 | before December 31, 2004, personal
property that is used in the | ||||||
12 | performance of infrastructure repairs in this
State, including | ||||||
13 | but not limited to municipal roads and streets, access roads,
| ||||||
14 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
15 | line extensions,
water distribution and purification | ||||||
16 | facilities, storm water drainage and
retention facilities, and | ||||||
17 | sewage treatment facilities, resulting from a State
or | ||||||
18 | federally declared disaster in Illinois or bordering Illinois | ||||||
19 | when such
repairs are initiated on facilities located in the | ||||||
20 | declared disaster area
within 6 months after the disaster.
| ||||||
21 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
22 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
23 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
24 | at a hunting enclosure approved through rules adopted by the
| ||||||
25 | Department of Natural Resources. This paragraph is exempt from | ||||||
26 | the provisions
of
Section 3-55.
|
| |||||||
| |||||||
1 | (21) A motor vehicle, as that term is defined in Section | ||||||
2 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
3 | corporation, limited liability
company, society, association, | ||||||
4 | foundation, or institution that is determined by
the Department | ||||||
5 | to be organized and operated exclusively for educational
| ||||||
6 | purposes. For purposes of this exemption, "a corporation, | ||||||
7 | limited liability
company, society, association, foundation, | ||||||
8 | or institution organized and
operated
exclusively for | ||||||
9 | educational purposes" means all tax-supported public schools,
| ||||||
10 | private schools that offer systematic instruction in useful | ||||||
11 | branches of
learning by methods common to public schools and | ||||||
12 | that compare favorably in
their scope and intensity with the | ||||||
13 | course of study presented in tax-supported
schools, and | ||||||
14 | vocational or technical schools or institutes organized and
| ||||||
15 | operated exclusively to provide a course of study of not less | ||||||
16 | than 6 weeks
duration and designed to prepare individuals to | ||||||
17 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
18 | industrial, business, or commercial
occupation.
| ||||||
19 | (22) Beginning January 1, 2000, personal property, | ||||||
20 | including
food,
purchased through fundraising
events for the | ||||||
21 | benefit of
a public or private elementary or
secondary school, | ||||||
22 | a group of those schools, or one or more school
districts if | ||||||
23 | the events are
sponsored by an entity recognized by the school | ||||||
24 | district that consists
primarily of volunteers and includes
| ||||||
25 | parents and teachers of the school children. This paragraph | ||||||
26 | does not apply
to fundraising
events (i) for the benefit of |
| |||||||
| |||||||
1 | private home instruction or (ii)
for which the fundraising | ||||||
2 | entity purchases the personal property sold at
the events from | ||||||
3 | another individual or entity that sold the property for the
| ||||||
4 | purpose of resale by the fundraising entity and that
profits | ||||||
5 | from the sale to the
fundraising entity. This paragraph is | ||||||
6 | exempt
from the provisions
of Section 3-55.
| ||||||
7 | (23) Beginning January 1, 2000
and through December 31, | ||||||
8 | 2001, new or used automatic vending
machines that prepare and | ||||||
9 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
10 | items, and replacement parts for these machines.
Beginning | ||||||
11 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
12 | for
machines used in commercial, coin-operated amusement
and | ||||||
13 | vending business if a use or occupation tax is paid on the | ||||||
14 | gross receipts
derived from
the use of the commercial, | ||||||
15 | coin-operated amusement and vending machines.
This paragraph | ||||||
16 | is exempt from the provisions of Section 3-55.
| ||||||
17 | (24) Beginning
on the effective date of this amendatory Act | ||||||
18 | of the 92nd General Assembly,
computers and communications | ||||||
19 | equipment
utilized for any hospital purpose and equipment used | ||||||
20 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
21 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
22 | year or longer executed or in effect at the
time of the | ||||||
23 | purchase, to a hospital that has been issued an active tax
| ||||||
24 | exemption identification number by the Department under | ||||||
25 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
26 | is exempt from the provisions of
Section 3-55.
|
| |||||||
| |||||||
1 | (25) Beginning
on the effective date of this amendatory Act | ||||||
2 | of the 92nd General Assembly,
personal property sold to a | ||||||
3 | lessor who
leases the property, under a lease of one year or | ||||||
4 | longer executed or in effect
at the time of the purchase, to a | ||||||
5 | governmental body that has been issued an
active tax exemption | ||||||
6 | identification number by the Department under Section 1g
of the | ||||||
7 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
8 | the
provisions of Section 3-55.
| ||||||
9 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
10 | 2011, tangible personal property
purchased
from an Illinois | ||||||
11 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
12 | activities in Illinois who will, upon receipt of the property | ||||||
13 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
14 | the purpose of subsequently
transporting it outside this State | ||||||
15 | for use or consumption thereafter solely
outside this State or | ||||||
16 | (ii) for the purpose of being processed, fabricated, or
| ||||||
17 | manufactured into, attached to, or incorporated into other | ||||||
18 | tangible personal
property to be transported outside this State | ||||||
19 | and thereafter used or consumed
solely outside this State. The | ||||||
20 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
21 | accordance with the Illinois Administrative Procedure Act, | ||||||
22 | issue a
permit to any taxpayer in good standing with the | ||||||
23 | Department who is eligible for
the exemption under this | ||||||
24 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
25 | shall authorize the holder, to the extent and
in the manner | ||||||
26 | specified in the rules adopted under this Act, to purchase
|
| |||||||
| |||||||
1 | tangible personal property from a retailer exempt from the | ||||||
2 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
3 | necessary books and records to
substantiate the use and | ||||||
4 | consumption of all such tangible personal property
outside of | ||||||
5 | the State of Illinois.
| ||||||
6 | (27) Beginning January 1, 2008, tangible personal property | ||||||
7 | used in the construction or maintenance of a community water | ||||||
8 | supply, as defined under Section 3.145 of the Environmental | ||||||
9 | Protection Act, that is operated by a not-for-profit | ||||||
10 | corporation that holds a valid water supply permit issued under | ||||||
11 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
12 | exempt from the provisions of Section 3-55.
| ||||||
13 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
14 | eff. 1-1-08; 95-876, eff. 8-21-08.)
| ||||||
15 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
16 | changing Section 2-5 as follows:
| ||||||
17 | (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| ||||||
18 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
19 | sale of
the following tangible personal property are exempt | ||||||
20 | from the tax imposed
by this Act:
| ||||||
21 | (1) Farm chemicals.
| ||||||
22 | (2) Farm machinery and equipment, both new and used, | ||||||
23 | including that
manufactured on special order, certified by the | ||||||
24 | purchaser to be used
primarily for production agriculture or |
| |||||||
| |||||||
1 | State or federal agricultural
programs, including individual | ||||||
2 | replacement parts for the machinery and
equipment, including | ||||||
3 | machinery and equipment purchased for lease,
and including | ||||||
4 | implements of husbandry defined in Section 1-130 of
the | ||||||
5 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
6 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
7 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
8 | but
excluding other motor vehicles required to be registered | ||||||
9 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
10 | hoop houses used for propagating, growing, or
overwintering | ||||||
11 | plants shall be considered farm machinery and equipment under
| ||||||
12 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
13 | shall include units sold
separately from a motor vehicle | ||||||
14 | required to be licensed and units sold mounted
on a motor | ||||||
15 | vehicle required to be licensed, if the selling price of the | ||||||
16 | tender
is separately stated.
| ||||||
17 | Farm machinery and equipment shall include precision | ||||||
18 | farming equipment
that is
installed or purchased to be | ||||||
19 | installed on farm machinery and equipment
including, but not | ||||||
20 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
21 | or spreaders.
Precision farming equipment includes, but is not | ||||||
22 | limited to,
soil testing sensors, computers, monitors, | ||||||
23 | software, global positioning
and mapping systems, and other | ||||||
24 | such equipment.
| ||||||
25 | Farm machinery and equipment also includes computers, | ||||||
26 | sensors, software, and
related equipment used primarily in the
|
| |||||||
| |||||||
1 | computer-assisted operation of production agriculture | ||||||
2 | facilities, equipment,
and activities such as, but
not limited | ||||||
3 | to,
the collection, monitoring, and correlation of
animal and | ||||||
4 | crop data for the purpose of
formulating animal diets and | ||||||
5 | agricultural chemicals. This item (7) is exempt
from the | ||||||
6 | provisions of
Section 2-70.
| ||||||
7 | (3) Until July 1, 2003, distillation machinery and | ||||||
8 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
9 | retailer, certified by the user to be used
only for the | ||||||
10 | production of ethyl alcohol that will be used for consumption
| ||||||
11 | as motor fuel or as a component of motor fuel for the personal | ||||||
12 | use of the
user, and not subject to sale or resale.
| ||||||
13 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
14 | 2004 through August 30, 2014 , graphic arts machinery and | ||||||
15 | equipment, including
repair and
replacement parts, both new and | ||||||
16 | used, and including that manufactured on
special order or | ||||||
17 | purchased for lease, certified by the purchaser to be used
| ||||||
18 | primarily for graphic arts production.
Equipment includes | ||||||
19 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
20 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
21 | immediate
change upon a
graphic arts product.
| ||||||
22 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
23 | of the second division that is a self contained motor vehicle | ||||||
24 | designed or permanently converted to provide living quarters | ||||||
25 | for recreational, camping, or travel use, with direct walk | ||||||
26 | through access to the living quarters from the driver's seat, |
| |||||||
| |||||||
1 | or a motor vehicle of the second division that is of the van | ||||||
2 | configuration designed for the transportation of not less than | ||||||
3 | 7 nor more than 16 passengers, as defined in Section 1-146 of | ||||||
4 | the Illinois Vehicle Code, that is used for automobile renting, | ||||||
5 | as defined in the Automobile Renting Occupation and Use Tax | ||||||
6 | Act. This paragraph is exempt from
the provisions of Section | ||||||
7 | 2-70.
| ||||||
8 | (6) Personal property sold by a teacher-sponsored student | ||||||
9 | organization
affiliated with an elementary or secondary school | ||||||
10 | located in Illinois.
| ||||||
11 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
12 | selling price of
a passenger car the
sale of which is subject | ||||||
13 | to the Replacement Vehicle Tax.
| ||||||
14 | (8) Personal property sold to an Illinois county fair | ||||||
15 | association for
use in conducting, operating, or promoting the | ||||||
16 | county fair.
| ||||||
17 | (9) Personal property sold to a not-for-profit arts
or | ||||||
18 | cultural organization that establishes, by proof required by | ||||||
19 | the Department
by
rule, that it has received an exemption under | ||||||
20 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
21 | organized and operated primarily for the
presentation
or | ||||||
22 | support of arts or cultural programming, activities, or | ||||||
23 | services. These
organizations include, but are not limited to, | ||||||
24 | music and dramatic arts
organizations such as symphony | ||||||
25 | orchestras and theatrical groups, arts and
cultural service | ||||||
26 | organizations, local arts councils, visual arts organizations,
|
| |||||||
| |||||||
1 | and media arts organizations.
On and after the effective date | ||||||
2 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
3 | an entity otherwise eligible for this exemption shall not
make | ||||||
4 | tax-free purchases unless it has an active identification | ||||||
5 | number issued by
the Department.
| ||||||
6 | (10) 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 | (11) Personal property sold to a governmental body, to a | ||||||
14 | corporation,
society, association, foundation, or institution | ||||||
15 | organized and operated
exclusively for charitable, religious, | ||||||
16 | or educational purposes, or to a
not-for-profit corporation, | ||||||
17 | society, association, foundation, institution,
or organization | ||||||
18 | that has no compensated officers or employees and that is
| ||||||
19 | organized and operated primarily for the recreation of persons | ||||||
20 | 55 years of
age or older. A limited liability company may | ||||||
21 | qualify for the exemption under
this paragraph only if the | ||||||
22 | limited liability company is organized and operated
| ||||||
23 | exclusively for educational purposes. On and after July 1, | ||||||
24 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
25 | shall make tax-free purchases
unless it has an active | ||||||
26 | identification number issued by the Department.
|
| |||||||
| |||||||
1 | (12) Tangible personal property sold to
interstate | ||||||
2 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
3 | commerce or to lessors under leases of
one year or longer | ||||||
4 | executed or in effect at the time of purchase by
interstate | ||||||
5 | carriers for hire for use as rolling stock moving in interstate
| ||||||
6 | commerce and equipment operated by a telecommunications | ||||||
7 | provider, licensed as a
common carrier by the Federal | ||||||
8 | Communications Commission, which is permanently
installed in | ||||||
9 | or affixed to aircraft moving in interstate commerce.
| ||||||
10 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
11 | motor vehicles of the second division
with a gross vehicle | ||||||
12 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
13 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
14 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
15 | through June 30, 2005, the use in this State of motor vehicles | ||||||
16 | of the second division: (i) with a gross vehicle weight rating | ||||||
17 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
18 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
19 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
20 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
21 | applies to repair and replacement parts added
after the
initial | ||||||
22 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
23 | in a
manner that
would qualify for the rolling stock exemption | ||||||
24 | otherwise provided for in this
Act. For purposes of this | ||||||
25 | paragraph, "used for commercial purposes" means the | ||||||
26 | transportation of persons or property in furtherance of any |
| |||||||
| |||||||
1 | commercial or industrial enterprise whether for-hire or not.
| ||||||
2 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
3 | tangible personal property that is utilized by interstate | ||||||
4 | carriers for
hire for use as rolling stock moving in interstate | ||||||
5 | commerce
and equipment operated by a telecommunications | ||||||
6 | provider, licensed as a
common carrier by the Federal | ||||||
7 | Communications Commission, which is
permanently installed in | ||||||
8 | or affixed to aircraft moving in interstate commerce.
| ||||||
9 | (14) Machinery and equipment that will be used by the | ||||||
10 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
11 | process of manufacturing or
assembling tangible personal | ||||||
12 | property for wholesale or retail sale or
lease, whether the | ||||||
13 | sale or lease is made directly by the manufacturer or by
some | ||||||
14 | other person, whether the materials used in the process are | ||||||
15 | owned by
the manufacturer or some other person, or whether the | ||||||
16 | sale or lease is made
apart from or as an incident to the | ||||||
17 | seller's engaging in the service
occupation of producing | ||||||
18 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
19 | items of no commercial value on special order for a particular
| ||||||
20 | purchaser.
| ||||||
21 | (15) Proceeds of mandatory service charges separately | ||||||
22 | stated on
customers' bills for purchase and consumption of food | ||||||
23 | and beverages, to the
extent that the proceeds of the service | ||||||
24 | charge are in fact turned over as
tips or as a substitute for | ||||||
25 | tips to the employees who participate directly
in preparing, | ||||||
26 | serving, hosting or cleaning up the food or beverage function
|
| |||||||
| |||||||
1 | with respect to which the service charge is imposed.
| ||||||
2 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
3 | is prohibited by federal law from charging tax to the | ||||||
4 | purchaser.
| ||||||
5 | (17) Tangible personal property sold to a common carrier by | ||||||
6 | rail or
motor that
receives the physical possession of the | ||||||
7 | property in Illinois and that
transports the property, or | ||||||
8 | shares with another common carrier in the
transportation of the | ||||||
9 | property, out of Illinois on a standard uniform bill
of lading | ||||||
10 | showing the seller of the property as the shipper or consignor | ||||||
11 | of
the property to a destination outside Illinois, for use | ||||||
12 | outside Illinois.
| ||||||
13 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
14 | coinage
issued by the State of Illinois, the government of the | ||||||
15 | United States of
America, or the government of any foreign | ||||||
16 | country, and bullion.
| ||||||
17 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
18 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
19 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
20 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
21 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
22 | individual replacement part for oil field exploration,
| ||||||
23 | drilling, and production equipment, and (vi) machinery and | ||||||
24 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
25 | required to be registered under the Illinois
Vehicle Code.
| ||||||
26 | (20) 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 | (21) 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 | (22) Fuel and petroleum products sold to or used by an air | ||||||
12 | carrier,
certified by the carrier to be used for consumption, | ||||||
13 | shipment, or storage
in the conduct of its business as an air | ||||||
14 | common carrier, for a flight
destined for or returning from a | ||||||
15 | location or locations
outside the United States without regard | ||||||
16 | to previous or subsequent domestic
stopovers.
| ||||||
17 | (23) A transaction in which the purchase order is received | ||||||
18 | by a florist
who is located outside Illinois, but who has a | ||||||
19 | florist located in Illinois
deliver the property to the | ||||||
20 | purchaser or the purchaser's donee in Illinois.
| ||||||
21 | (24) Fuel consumed or used in the operation of ships, | ||||||
22 | barges, or vessels
that are used primarily in or for the | ||||||
23 | transportation of property or the
conveyance of persons for | ||||||
24 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
25 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
26 | it is afloat upon that bordering river.
|
| |||||||
| |||||||
1 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
2 | motor vehicle sold in this State to a nonresident even though | ||||||
3 | the
motor vehicle is delivered to the nonresident in this | ||||||
4 | State, if the motor
vehicle is not to be titled in this State, | ||||||
5 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
6 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
7 | the nonresident purchaser has vehicle registration
plates to | ||||||
8 | transfer to the motor vehicle upon returning to his or her home
| ||||||
9 | state. The issuance of the drive-away permit or having
the
| ||||||
10 | out-of-state registration plates to be transferred is prima | ||||||
11 | facie evidence
that the motor vehicle will not be titled in | ||||||
12 | this State.
| ||||||
13 | (25-5) The exemption under item (25) does not apply if the | ||||||
14 | state in which the motor vehicle will be titled does not allow | ||||||
15 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
16 | in that state to an Illinois resident but titled in Illinois. | ||||||
17 | The tax collected under this Act on the sale of a motor vehicle | ||||||
18 | in this State to a resident of another state that does not | ||||||
19 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
20 | to the state's rate of tax on taxable property in the state in | ||||||
21 | which the purchaser is a resident, except that the tax shall | ||||||
22 | not exceed the tax that would otherwise be imposed under this | ||||||
23 | Act. At the time of the sale, the purchaser shall execute a | ||||||
24 | statement, signed under penalty of perjury, of his or her | ||||||
25 | intent to title the vehicle in the state in which the purchaser | ||||||
26 | is a resident within 30 days after the sale and of the fact of |
| |||||||
| |||||||
1 | the payment to the State of Illinois of tax in an amount | ||||||
2 | equivalent to the state's rate of tax on taxable property in | ||||||
3 | his or her state of residence and shall submit the statement to | ||||||
4 | the appropriate tax collection agency in his or her state of | ||||||
5 | residence. In addition, the retailer must retain a signed copy | ||||||
6 | of the statement in his or her records. Nothing in this item | ||||||
7 | shall be construed to require the removal of the vehicle from | ||||||
8 | this state following the filing of an intent to title the | ||||||
9 | vehicle in the purchaser's state of residence if the purchaser | ||||||
10 | titles the vehicle in his or her state of residence within 30 | ||||||
11 | days after the date of sale. The tax collected under this Act | ||||||
12 | in accordance with this item (25-5) shall be proportionately | ||||||
13 | distributed as if the tax were collected at the 6.25% general | ||||||
14 | rate imposed under this Act.
| ||||||
15 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
16 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
17 | the Illinois Aeronautics Act, if all of the following | ||||||
18 | conditions are met: | ||||||
19 | (1) the aircraft leaves this State within 15 days after | ||||||
20 | the later of either the issuance of the final billing for | ||||||
21 | the sale of the aircraft, or the authorized approval for | ||||||
22 | return to service, completion of the maintenance record | ||||||
23 | entry, and completion of the test flight and ground test | ||||||
24 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
25 | (2) the aircraft is not based or registered in this | ||||||
26 | State after the sale of the aircraft; and |
| |||||||
| |||||||
1 | (3) the seller retains in his or her books and records | ||||||
2 | and provides to the Department a signed and dated | ||||||
3 | certification from the purchaser, on a form prescribed by | ||||||
4 | the Department, certifying that the requirements of this | ||||||
5 | item (25-7) are met. The certificate must also include the | ||||||
6 | name and address of the purchaser, the address of the | ||||||
7 | location where the aircraft is to be titled or registered, | ||||||
8 | the address of the primary physical location of the | ||||||
9 | aircraft, and other information that the Department may | ||||||
10 | reasonably require. | ||||||
11 | For purposes of this item (25-7): | ||||||
12 | "Based in this State" means hangared, stored, or otherwise | ||||||
13 | used, excluding post-sale customizations as defined in this | ||||||
14 | Section, for 10 or more days in each 12-month period | ||||||
15 | immediately following the date of the sale of the aircraft. | ||||||
16 | "Registered in this State" means an aircraft registered | ||||||
17 | with the Department of Transportation, Aeronautics Division, | ||||||
18 | or titled or registered with the Federal Aviation | ||||||
19 | Administration to an address located in this State. | ||||||
20 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
21 | Section 2-70.
| ||||||
22 | (26) Semen used for artificial insemination of livestock | ||||||
23 | for direct
agricultural production.
| ||||||
24 | (27) Horses, or interests in horses, registered with and | ||||||
25 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
26 | Registry of America, Appaloosa Horse Club, American Quarter
|
| |||||||
| |||||||
1 | Horse Association, United States
Trotting Association, or | ||||||
2 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
3 | racing for prizes. This item (27) is exempt from the provisions | ||||||
4 | of Section 2-70, and the exemption provided for under this item | ||||||
5 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
6 | claim for credit or refund is allowed on or after January 1, | ||||||
7 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
8 | paid during the period beginning May 30, 2000 and ending on | ||||||
9 | January 1, 2008 (the effective date of Public Act 95-88)
.
| ||||||
10 | (28) Computers and communications equipment utilized for | ||||||
11 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
12 | analysis, or treatment of hospital patients sold to a lessor | ||||||
13 | who leases the
equipment, under a lease of one year or longer | ||||||
14 | executed or in effect at the
time of the purchase, to a
| ||||||
15 | hospital
that has been issued an active tax exemption | ||||||
16 | identification number by the
Department under Section 1g of | ||||||
17 | this Act.
| ||||||
18 | (29) Personal property sold to a lessor who leases the
| ||||||
19 | property, under a
lease of one year or longer executed or in | ||||||
20 | effect at the time of the purchase,
to a governmental body
that | ||||||
21 | has been issued an active tax exemption identification number | ||||||
22 | by the
Department under Section 1g of this Act.
| ||||||
23 | (30) Beginning with taxable years ending on or after | ||||||
24 | December
31, 1995
and
ending with taxable years ending on or | ||||||
25 | before December 31, 2004,
personal property that is
donated for | ||||||
26 | disaster relief to be used in a State or federally declared
|
| |||||||
| |||||||
1 | disaster area in Illinois or bordering Illinois by a | ||||||
2 | manufacturer or retailer
that is registered in this State to a | ||||||
3 | corporation, society, association,
foundation, or institution | ||||||
4 | that has been issued a sales tax exemption
identification | ||||||
5 | number by the Department that assists victims of the disaster
| ||||||
6 | who reside within the declared disaster area.
| ||||||
7 | (31) 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 used in the | ||||||
10 | performance of infrastructure repairs in this
State, including | ||||||
11 | but not limited to municipal roads and streets, access roads,
| ||||||
12 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
13 | line extensions,
water distribution and purification | ||||||
14 | facilities, storm water drainage and
retention facilities, and | ||||||
15 | sewage treatment facilities, resulting from a State
or | ||||||
16 | federally declared disaster in Illinois or bordering Illinois | ||||||
17 | when such
repairs are initiated on facilities located in the | ||||||
18 | declared disaster area
within 6 months after the disaster.
| ||||||
19 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
20 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
21 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
22 | at a hunting enclosure approved through rules adopted by the
| ||||||
23 | Department of Natural Resources. This paragraph is exempt from | ||||||
24 | the provisions
of
Section 2-70.
| ||||||
25 | (33) A motor vehicle, as that term is defined in Section | ||||||
26 | 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 | (34) 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 |
| |||||||
| |||||||
1 | another
individual or entity that sold the property for the | ||||||
2 | purpose of resale by the
fundraising entity and that profits | ||||||
3 | from the sale to the fundraising entity.
This paragraph is | ||||||
4 | exempt from the provisions of Section 2-70.
| ||||||
5 | (35) Beginning January 1, 2000 and through December 31, | ||||||
6 | 2001, new or used
automatic vending machines that prepare and | ||||||
7 | serve hot food and beverages,
including coffee, soup, and other | ||||||
8 | items, and replacement parts for these
machines. Beginning | ||||||
9 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
10 | for machines used in
commercial, coin-operated amusement and | ||||||
11 | vending business if a use or occupation
tax is paid on the | ||||||
12 | gross receipts derived from the use of the commercial,
| ||||||
13 | coin-operated amusement and vending machines. This paragraph | ||||||
14 | is exempt from
the provisions of Section 2-70.
| ||||||
15 | (35-5) Beginning August 23, 2001 and through June 30, 2011, | ||||||
16 | food for human consumption that is to be consumed off
the | ||||||
17 | premises where it is sold (other than alcoholic beverages, soft | ||||||
18 | drinks,
and food that has been prepared for immediate | ||||||
19 | consumption) and prescription
and nonprescription medicines, | ||||||
20 | drugs, medical appliances, and insulin, urine
testing | ||||||
21 | materials, syringes, and needles used by diabetics, for human | ||||||
22 | use, when
purchased for use by a person receiving medical | ||||||
23 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
24 | resides in a licensed long-term care facility,
as defined in | ||||||
25 | the Nursing Home Care Act.
| ||||||
26 | (36) Beginning August 2, 2001, computers and |
| |||||||
| |||||||
1 | communications equipment
utilized for any hospital purpose and | ||||||
2 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
3 | hospital patients sold to a lessor who leases the
equipment, | ||||||
4 | under a lease of one year or longer executed or in effect at | ||||||
5 | the
time of the purchase, to a hospital that has been issued an | ||||||
6 | active tax
exemption identification number by the Department | ||||||
7 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
8 | provisions of Section 2-70.
| ||||||
9 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
10 | lessor who
leases the property, under a lease of one year or | ||||||
11 | longer executed or in effect
at the time of the purchase, to a | ||||||
12 | governmental body that has been issued an
active tax exemption | ||||||
13 | identification number by the Department under Section 1g
of | ||||||
14 | this Act. This paragraph is exempt from the provisions of | ||||||
15 | Section 2-70.
| ||||||
16 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
17 | 2011, tangible personal property purchased
from an Illinois | ||||||
18 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
19 | activities in Illinois who will, upon receipt of the property | ||||||
20 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
21 | the purpose of subsequently
transporting it outside this State | ||||||
22 | for use or consumption thereafter solely
outside this State or | ||||||
23 | (ii) for the purpose of being processed, fabricated, or
| ||||||
24 | manufactured into, attached to, or incorporated into other | ||||||
25 | tangible personal
property to be transported outside this State | ||||||
26 | and thereafter used or consumed
solely outside this State. The |
| |||||||
| |||||||
1 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
2 | accordance with the Illinois Administrative Procedure Act, | ||||||
3 | issue a
permit to any taxpayer in good standing with the | ||||||
4 | Department who is eligible for
the exemption under this | ||||||
5 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
6 | shall authorize the holder, to the extent and
in the manner | ||||||
7 | specified in the rules adopted under this Act, to purchase
| ||||||
8 | tangible personal property from a retailer exempt from the | ||||||
9 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
10 | necessary books and records to
substantiate the use and | ||||||
11 | consumption of all such tangible personal property
outside of | ||||||
12 | the State of Illinois.
| ||||||
13 | (39) Beginning January 1, 2008, tangible personal property | ||||||
14 | used in the construction or maintenance of a community water | ||||||
15 | supply, as defined under Section 3.145 of the Environmental | ||||||
16 | Protection Act, that is operated by a not-for-profit | ||||||
17 | corporation that holds a valid water supply permit issued under | ||||||
18 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
19 | exempt from the provisions of Section 2-70.
| ||||||
20 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-233, | ||||||
21 | eff. 8-16-07; 95-304, eff. 8-20-07; 95-538, eff. 1-1-08; | ||||||
22 | 95-707, eff. 1-11-08; 95-876, eff. 8-21-08.)
| ||||||
23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law.
|