Sen. Gary Forby
Filed: 10/28/2009
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1 | AMENDMENT TO HOUSE BILL 303
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2 | AMENDMENT NO. ______. Amend House Bill 303 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Use Tax Act is amended by changing Section | ||||||
5 | 3-5 as follows: | ||||||
6 | (35 ILCS 105/3-5) | ||||||
7 | (Text of Section before amendment by P.A. 96-339 ) | ||||||
8 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
9 | personal property
is exempt from the tax imposed by this Act: | ||||||
10 | (1) Personal property purchased from a corporation, | ||||||
11 | society, association,
foundation, institution, or | ||||||
12 | organization, other than a limited liability
company, that is | ||||||
13 | organized and operated as a not-for-profit service enterprise
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14 | for the benefit of persons 65 years of age or older if the | ||||||
15 | personal property
was not purchased by the enterprise for the | ||||||
16 | purpose of resale by the
enterprise. |
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1 | (2) Personal property purchased by a not-for-profit | ||||||
2 | Illinois county
fair association for use in conducting, | ||||||
3 | operating, or promoting the
county fair. | ||||||
4 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
5 | cultural organization that establishes, by proof required by | ||||||
6 | the
Department by
rule, that it has received an exemption under | ||||||
7 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
8 | organized and operated primarily for the
presentation
or | ||||||
9 | support of arts or cultural programming, activities, or | ||||||
10 | services. These
organizations include, but are not limited to, | ||||||
11 | music and dramatic arts
organizations such as symphony | ||||||
12 | orchestras and theatrical groups, arts and
cultural service | ||||||
13 | organizations, local arts councils, visual arts organizations,
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14 | and media arts organizations.
On and after the effective date | ||||||
15 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
16 | an entity otherwise eligible for this exemption shall not
make | ||||||
17 | tax-free purchases unless it has an active identification | ||||||
18 | number issued by
the Department. | ||||||
19 | (4) Personal property purchased by a governmental body, by | ||||||
20 | a
corporation, society, association, foundation, or | ||||||
21 | institution organized and
operated exclusively for charitable, | ||||||
22 | religious, or educational purposes, or
by a not-for-profit | ||||||
23 | corporation, society, association, foundation,
institution, or | ||||||
24 | organization that has no compensated officers or employees
and | ||||||
25 | that is organized and operated primarily for the recreation of | ||||||
26 | persons
55 years of age or older. A limited liability company |
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1 | may qualify for the
exemption under this paragraph only if the | ||||||
2 | limited liability company is
organized and operated | ||||||
3 | exclusively for educational purposes. On and after July
1, | ||||||
4 | 1987, however, no entity otherwise eligible for this exemption | ||||||
5 | shall make
tax-free purchases unless it has an active exemption | ||||||
6 | identification number
issued by the Department. | ||||||
7 | (5) Until July 1, 2003, a passenger car that is a | ||||||
8 | replacement vehicle to
the extent that the
purchase price of | ||||||
9 | the car is subject to the Replacement Vehicle Tax. | ||||||
10 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
11 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
12 | equipment, including
repair and replacement
parts, both new and | ||||||
13 | used, and including that manufactured on special order,
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14 | certified by the purchaser to be used primarily for graphic | ||||||
15 | arts production,
and including machinery and equipment | ||||||
16 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
17 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
18 | acting as catalysts effect a direct and immediate change
upon a | ||||||
19 | graphic arts product. | ||||||
20 | (7) Farm chemicals. | ||||||
21 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
22 | coinage issued by
the State of Illinois, the government of the | ||||||
23 | United States of America, or the
government of any foreign | ||||||
24 | country, and bullion. | ||||||
25 | (9) Personal property purchased from a teacher-sponsored | ||||||
26 | student
organization affiliated with an elementary or |
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1 | secondary school located in
Illinois. | ||||||
2 | (10) A motor vehicle of the first division, a motor vehicle | ||||||
3 | of the
second division that is a self-contained motor vehicle | ||||||
4 | designed or
permanently converted to provide living quarters | ||||||
5 | for recreational, camping,
or travel use, with direct walk | ||||||
6 | through to the living quarters from the
driver's seat, or a | ||||||
7 | motor vehicle of the second division that is of the
van | ||||||
8 | configuration designed for the transportation of not less than | ||||||
9 | 7 nor
more than 16 passengers, as defined in Section 1-146 of | ||||||
10 | the Illinois
Vehicle Code, that is used for automobile renting, | ||||||
11 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
12 | Act. | ||||||
13 | (11) Farm machinery and equipment, both new and used,
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14 | including that manufactured on special order, certified by the | ||||||
15 | purchaser
to be used primarily for production agriculture or | ||||||
16 | State or federal
agricultural programs, including individual | ||||||
17 | replacement parts for
the machinery and equipment, including | ||||||
18 | machinery and equipment
purchased
for lease,
and including | ||||||
19 | implements of husbandry defined in Section 1-130 of
the | ||||||
20 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
21 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
22 | be registered
under Section 3-809 of the Illinois Vehicle Code,
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23 | but excluding other motor
vehicles required to be
registered | ||||||
24 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
25 | hoop houses used for propagating, growing, or
overwintering | ||||||
26 | plants shall be considered farm machinery and equipment under
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1 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
2 | boxes shall include units sold
separately from a motor vehicle | ||||||
3 | required to be licensed and units sold mounted
on a motor | ||||||
4 | vehicle required to be licensed if the selling price of the | ||||||
5 | tender
is separately stated. | ||||||
6 | Farm machinery and equipment shall include precision | ||||||
7 | farming equipment
that is
installed or purchased to be | ||||||
8 | installed on farm machinery and equipment
including, but not | ||||||
9 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
10 | or spreaders.
Precision farming equipment includes, but is not | ||||||
11 | limited to, soil testing
sensors, computers, monitors, | ||||||
12 | software, global positioning
and mapping systems, and other | ||||||
13 | such equipment. | ||||||
14 | Farm machinery and equipment also includes computers, | ||||||
15 | sensors, software, and
related equipment used primarily in the
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16 | computer-assisted operation of production agriculture | ||||||
17 | facilities, equipment,
and
activities such as, but not limited | ||||||
18 | to,
the collection, monitoring, and correlation of
animal and | ||||||
19 | crop data for the purpose of
formulating animal diets and | ||||||
20 | agricultural chemicals. This item (11) is exempt
from the | ||||||
21 | provisions of
Section 3-90. | ||||||
22 | (12) Fuel and petroleum products sold to or used by an air | ||||||
23 | common
carrier, certified by the carrier to be used for | ||||||
24 | consumption, shipment, or
storage in the conduct of its | ||||||
25 | business as an air common carrier, for a
flight destined for or | ||||||
26 | returning from a location or locations
outside the United |
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1 | States without regard to previous or subsequent domestic
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2 | stopovers. | ||||||
3 | (13) Proceeds of mandatory service charges separately
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4 | stated on customers' bills for the purchase and consumption of | ||||||
5 | food and
beverages purchased at retail from a retailer, to the | ||||||
6 | extent that the proceeds
of the service charge are in fact | ||||||
7 | turned over as tips or as a substitute
for tips to the | ||||||
8 | employees who participate directly in preparing, serving,
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9 | hosting or cleaning up the food or beverage function with | ||||||
10 | respect to which
the service charge is imposed. | ||||||
11 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
12 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
13 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
14 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
15 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
16 | individual replacement part for oil
field exploration, | ||||||
17 | drilling, and production equipment, and (vi) machinery and
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18 | equipment purchased
for lease; but excluding motor vehicles | ||||||
19 | required to be registered under the
Illinois Vehicle Code. | ||||||
20 | (15) Photoprocessing machinery and equipment, including | ||||||
21 | repair and
replacement parts, both new and used, including that
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22 | manufactured on special order, certified by the purchaser to be | ||||||
23 | used
primarily for photoprocessing, and including
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24 | photoprocessing machinery and equipment purchased for lease. | ||||||
25 | (16) Until July 1, 2003, and beginning again on the | ||||||
26 | effective date of this amendatory Act of the 96th General |
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1 | Assembly and thereafter, coal and aggregate exploration, | ||||||
2 | mining, offhighway hauling,
processing, maintenance, and | ||||||
3 | reclamation equipment,
including replacement parts and | ||||||
4 | equipment, and
including equipment purchased for lease, but | ||||||
5 | excluding motor
vehicles required to be registered under the | ||||||
6 | Illinois Vehicle Code. This item (16) is not subject to the | ||||||
7 | provisions of Section 3-90. | ||||||
8 | (17) Until July 1, 2003, distillation machinery and | ||||||
9 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
10 | retailer, certified by the user to be used
only for the | ||||||
11 | production of ethyl alcohol that will be used for consumption
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12 | as motor fuel or as a component of motor fuel for the personal | ||||||
13 | use of the
user, and not subject to sale or resale. | ||||||
14 | (18) Manufacturing and assembling machinery and equipment | ||||||
15 | used
primarily in the process of manufacturing or assembling | ||||||
16 | tangible
personal property for wholesale or retail sale or | ||||||
17 | lease, whether that sale
or lease is made directly by the | ||||||
18 | manufacturer or by some other person,
whether the materials | ||||||
19 | used in the process are
owned by the manufacturer or some other | ||||||
20 | person, or whether that sale or
lease is made apart from or as | ||||||
21 | an incident to the seller's engaging in
the service occupation | ||||||
22 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
23 | other similar items of no commercial value on
special order for | ||||||
24 | a particular purchaser. | ||||||
25 | (19) Personal property delivered to a purchaser or | ||||||
26 | purchaser's donee
inside Illinois when the purchase order for |
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1 | that personal property was
received by a florist located | ||||||
2 | outside Illinois who has a florist located
inside Illinois | ||||||
3 | deliver the personal property. | ||||||
4 | (20) Semen used for artificial insemination of livestock | ||||||
5 | for direct
agricultural production. | ||||||
6 | (21) Horses, or interests in horses, registered with and | ||||||
7 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
8 | Registry of America, Appaloosa Horse Club, American Quarter
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9 | Horse Association, United States
Trotting Association, or | ||||||
10 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
11 | racing for prizes. This item (21) is exempt from the provisions | ||||||
12 | of Section 3-90, and the exemption provided for under this item | ||||||
13 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
14 | claim for credit or refund is allowed on or after January 1, | ||||||
15 | 2008
for such taxes paid during the period beginning May 30, | ||||||
16 | 2000 and ending on January 1, 2008.
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17 | (22) Computers and communications equipment utilized for | ||||||
18 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
19 | analysis, or treatment of hospital patients purchased by a | ||||||
20 | lessor who leases
the
equipment, under a lease of one year or | ||||||
21 | longer executed or in effect at the
time the lessor would | ||||||
22 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
23 | hospital
that has been issued an active tax exemption | ||||||
24 | identification number by
the
Department under Section 1g of the | ||||||
25 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
26 | manner that does not qualify for
this exemption or is used in |
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1 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
2 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
3 | case may
be, based on the fair market value of the property at | ||||||
4 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
5 | or attempt to collect an
amount (however
designated) that | ||||||
6 | purports to reimburse that lessor for the tax imposed by this
| ||||||
7 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
8 | has not been
paid by the lessor. If a lessor improperly | ||||||
9 | collects any such amount from the
lessee, the lessee shall have | ||||||
10 | a legal right to claim a refund of that amount
from the lessor. | ||||||
11 | If, however, that amount is not refunded to the lessee for
any | ||||||
12 | reason, the lessor is liable to pay that amount to the | ||||||
13 | Department. | ||||||
14 | (23) Personal property purchased by a lessor who leases the
| ||||||
15 | property, under
a
lease of
one year or longer executed or in | ||||||
16 | effect at the time
the lessor would otherwise be subject to the | ||||||
17 | tax imposed by this Act,
to a governmental body
that has been | ||||||
18 | issued an active sales tax exemption identification number by | ||||||
19 | the
Department under Section 1g of the Retailers' Occupation | ||||||
20 | Tax Act.
If the
property is leased in a manner that does not | ||||||
21 | qualify for
this exemption
or used in any other non-exempt | ||||||
22 | manner, the lessor shall be liable for the
tax imposed under | ||||||
23 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
24 | on the fair market value of the property at the time the
| ||||||
25 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
26 | to collect an
amount (however
designated) that purports to |
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| |||||||
1 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
2 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
3 | paid by the lessor. If a lessor improperly collects any such | ||||||
4 | amount from the
lessee, the lessee shall have a legal right to | ||||||
5 | claim a refund of that amount
from the lessor. If, however, | ||||||
6 | that amount is not refunded to the lessee for
any reason, the | ||||||
7 | lessor is liable to pay that amount to the Department. | ||||||
8 | (24) Beginning with taxable years ending on or after | ||||||
9 | December
31, 1995
and
ending with taxable years ending on or | ||||||
10 | before December 31, 2004,
personal property that is
donated for | ||||||
11 | disaster relief to be used in a State or federally declared
| ||||||
12 | disaster area in Illinois or bordering Illinois by a | ||||||
13 | manufacturer or retailer
that is registered in this State to a | ||||||
14 | corporation, society, association,
foundation, or institution | ||||||
15 | that has been issued a sales tax exemption
identification | ||||||
16 | number by the Department that assists victims of the disaster
| ||||||
17 | who reside within the declared disaster area. | ||||||
18 | (25) 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 used in the | ||||||
21 | performance of infrastructure repairs in this
State, including | ||||||
22 | but not limited to municipal roads and streets, access roads,
| ||||||
23 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
24 | line extensions,
water distribution and purification | ||||||
25 | facilities, storm water drainage and
retention facilities, and | ||||||
26 | sewage treatment facilities, resulting from a State
or |
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1 | federally declared disaster in Illinois or bordering Illinois | ||||||
2 | when such
repairs are initiated on facilities located in the | ||||||
3 | declared disaster area
within 6 months after the disaster. | ||||||
4 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
5 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
6 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
7 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
8 | Department of Natural Resources. This paragraph is exempt from | ||||||
9 | the provisions
of
Section 3-90. | ||||||
10 | (27) A motor vehicle, as that term is defined in Section | ||||||
11 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
12 | corporation, limited liability company,
society, association, | ||||||
13 | foundation, or institution that is determined by the
Department | ||||||
14 | to be organized and operated exclusively for educational | ||||||
15 | purposes.
For purposes of this exemption, "a corporation, | ||||||
16 | limited liability company,
society, association, foundation, | ||||||
17 | or institution organized and operated
exclusively for | ||||||
18 | educational purposes" means all tax-supported public schools,
| ||||||
19 | private schools that offer systematic instruction in useful | ||||||
20 | branches of
learning by methods common to public schools and | ||||||
21 | that compare favorably in
their scope and intensity with the | ||||||
22 | course of study presented in tax-supported
schools, and | ||||||
23 | vocational or technical schools or institutes organized and
| ||||||
24 | operated exclusively to provide a course of study of not less | ||||||
25 | than 6 weeks
duration and designed to prepare individuals to | ||||||
26 | follow a trade or to pursue a
manual, technical, mechanical, |
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1 | industrial, business, or commercial
occupation. | ||||||
2 | (28) Beginning January 1, 2000, personal property, | ||||||
3 | including
food,
purchased through fundraising
events for the | ||||||
4 | benefit of
a public or private elementary or
secondary school, | ||||||
5 | a group of those schools, or one or more school
districts if | ||||||
6 | the events are
sponsored by an entity recognized by the school | ||||||
7 | district that consists
primarily of volunteers and includes
| ||||||
8 | parents and teachers of the school children. This paragraph | ||||||
9 | does not apply
to fundraising
events (i) for the benefit of | ||||||
10 | private home instruction or (ii)
for which the fundraising | ||||||
11 | entity purchases the personal property sold at
the events from | ||||||
12 | another individual or entity that sold the property for the
| ||||||
13 | purpose of resale by the fundraising entity and that
profits | ||||||
14 | from the sale to the
fundraising entity. This paragraph is | ||||||
15 | exempt
from the provisions
of Section 3-90. | ||||||
16 | (29) Beginning January 1, 2000 and through December 31, | ||||||
17 | 2001, new or
used automatic vending
machines that prepare and | ||||||
18 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
19 | items, and replacement parts for these machines.
Beginning | ||||||
20 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
21 | for machines used in
commercial, coin-operated amusement and | ||||||
22 | vending business if a use or occupation
tax is paid on the | ||||||
23 | gross receipts derived from the use of the commercial,
| ||||||
24 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
25 | is exempt from the provisions of Section 3-90. | ||||||
26 | (30) Beginning January 1, 2001 and through June 30, 2011, |
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| |||||||
1 | food for human consumption that is to be consumed off the | ||||||
2 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
3 | drinks, and food that
has been prepared for immediate | ||||||
4 | consumption) and prescription and
nonprescription medicines, | ||||||
5 | drugs, medical appliances, and insulin, urine
testing | ||||||
6 | materials, syringes, and needles used by diabetics, for human | ||||||
7 | use, when
purchased for use by a person receiving medical | ||||||
8 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
9 | resides in a licensed long-term care facility,
as defined in | ||||||
10 | the Nursing Home Care Act. | ||||||
11 | (31) Beginning on
the effective date of this amendatory Act | ||||||
12 | of the 92nd General Assembly,
computers and communications | ||||||
13 | equipment
utilized for any hospital purpose and equipment used | ||||||
14 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
15 | purchased by a lessor who leases
the equipment, under a lease | ||||||
16 | of one year or longer executed or in effect at the
time the | ||||||
17 | lessor would otherwise be subject to the tax imposed by this | ||||||
18 | Act, to a
hospital that has been issued an active tax exemption | ||||||
19 | identification number by
the Department under Section 1g of the | ||||||
20 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
21 | manner that does not qualify for this exemption or is
used in | ||||||
22 | any other nonexempt manner, the lessor shall be liable for the | ||||||
23 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
24 | case may be, based on
the fair market value of the property at | ||||||
25 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
26 | or attempt to collect an amount (however
designated) that |
| |||||||
| |||||||
1 | purports to reimburse that lessor for the tax imposed by this
| ||||||
2 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
3 | has not been
paid by the lessor. If a lessor improperly | ||||||
4 | collects any such amount from the
lessee, the lessee shall have | ||||||
5 | a legal right to claim a refund of that amount
from the lessor. | ||||||
6 | If, however, that amount is not refunded to the lessee for
any | ||||||
7 | reason, the lessor is liable to pay that amount to the | ||||||
8 | Department.
This paragraph is exempt from the provisions of | ||||||
9 | Section 3-90. | ||||||
10 | (32) Beginning on
the effective date of this amendatory Act | ||||||
11 | of the 92nd General Assembly,
personal property purchased by a | ||||||
12 | lessor who leases the property,
under a lease of one year or | ||||||
13 | longer executed or in effect at the time the
lessor would | ||||||
14 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
15 | governmental body that has been issued an active sales tax | ||||||
16 | exemption
identification number by the Department under | ||||||
17 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
18 | property is leased in a manner that does not
qualify for this | ||||||
19 | exemption or used in any other nonexempt manner, the lessor
| ||||||
20 | shall be liable for the tax imposed under this Act or the | ||||||
21 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
22 | market value of the property at the time
the nonqualifying use | ||||||
23 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
24 | (however designated) that purports to reimburse that lessor for | ||||||
25 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
26 | case may be, if the
tax has not been paid by the lessor. If a |
| |||||||
| |||||||
1 | lessor improperly collects any such
amount from the lessee, the | ||||||
2 | lessee shall have a legal right to claim a refund
of that | ||||||
3 | amount from the lessor. If, however, that amount is not | ||||||
4 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
5 | pay that amount to the
Department. This paragraph is exempt | ||||||
6 | from the provisions of Section 3-90. | ||||||
7 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
8 | the use in this State of motor vehicles of
the second division | ||||||
9 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
10 | are subject to the commercial distribution fee imposed under | ||||||
11 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
12 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
13 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
14 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
15 | to the commercial distribution fee imposed under Section | ||||||
16 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
17 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
18 | this exemption applies to repair and
replacement parts added | ||||||
19 | after the initial purchase of such a motor vehicle if
that | ||||||
20 | motor
vehicle is used in a manner that would qualify for the | ||||||
21 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
22 | purposes of this paragraph, the term "used for commercial | ||||||
23 | purposes" means the transportation of persons or property in | ||||||
24 | furtherance of any commercial or industrial enterprise, | ||||||
25 | whether for-hire or not.
| ||||||
26 | (34) Beginning January 1, 2008, tangible personal property |
| |||||||
| |||||||
1 | used in the construction or maintenance of a community water | ||||||
2 | supply, as defined under Section 3.145 of the Environmental | ||||||
3 | Protection Act, that is operated by a not-for-profit | ||||||
4 | corporation that holds a valid water supply permit issued under | ||||||
5 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
6 | exempt from the provisions of Section 3-90. | ||||||
7 | (35) Beginning January 1, 2010, materials, parts, | ||||||
8 | equipment, components, and furnishings incorporated into or | ||||||
9 | upon an aircraft as part of the modification, refurbishment, | ||||||
10 | completion, replacement, repair, or maintenance of the | ||||||
11 | aircraft. This exemption includes consumable supplies used in | ||||||
12 | the modification, refurbishment, completion, replacement, | ||||||
13 | repair, and maintenance of aircraft, but excludes any | ||||||
14 | materials, parts, equipment, components, and consumable | ||||||
15 | supplies used in the modification, replacement, repair, and | ||||||
16 | maintenance of aircraft engines or power plants, whether such | ||||||
17 | engines or power plants are installed or uninstalled upon any | ||||||
18 | such aircraft. "Consumable supplies" include, but are not | ||||||
19 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
20 | lubricants, cleaning solution, latex gloves, and protective | ||||||
21 | films. This exemption applies only to those organizations that | ||||||
22 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
23 | an approved repair station by the Federal Aviation | ||||||
24 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
25 | operations in accordance with Part 145 of the Federal Aviation | ||||||
26 | Regulations. The exemption does not include aircraft operated |
| |||||||
| |||||||
1 | by a commercial air carrier providing scheduled passenger air | ||||||
2 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
3 | of the Federal Aviation Regulations. | ||||||
4 | (36) (35) Tangible personal property purchased by a | ||||||
5 | public-facilities corporation, as described in Section | ||||||
6 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
7 | constructing or furnishing a municipal convention hall, but | ||||||
8 | only if the legal title to the municipal convention hall is | ||||||
9 | transferred to the municipality without any further | ||||||
10 | consideration by or on behalf of the municipality at the time | ||||||
11 | of the completion of the municipal convention hall or upon the | ||||||
12 | retirement or redemption of any bonds or other debt instruments | ||||||
13 | issued by the public-facilities corporation in connection with | ||||||
14 | the development of the municipal convention hall. This | ||||||
15 | exemption includes existing public-facilities corporations as | ||||||
16 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
17 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
18 | (37) Monuments or monument components purchased for the | ||||||
19 | purpose of honoring military veterans, as the term "veteran" is | ||||||
20 | defined in 10 U.S.C. 1491, if the monument or monument | ||||||
21 | component is purchased by (i) a nonprofit organization that is | ||||||
22 | exempt from
federal income taxation under Section 501(c)(3) of | ||||||
23 | the federal Internal
Revenue Code of 1986 or (ii) a veterans' | ||||||
24 | organization chartered under federal law. An exemption under | ||||||
25 | this item (37) is limited to purchases from one retailer per | ||||||
26 | monument or monument component. An exemption under this item |
| |||||||
| |||||||
1 | (37) is limited to $2,000 per monument. For the purposes of | ||||||
2 | this item (37), a monument is a structure, other than a | ||||||
3 | building, erected with the primary purpose of commemorating a | ||||||
4 | person or event. | ||||||
5 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
6 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-532, eff. 8-14-09; | ||||||
7 | 96-759, eff. 1-1-10; revised 9-25-09.) | ||||||
8 | (Text of Section after amendment by P.A. 96-339 ) | ||||||
9 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
10 | personal property
is exempt from the tax imposed by this Act: | ||||||
11 | (1) Personal property purchased from a corporation, | ||||||
12 | society, association,
foundation, institution, or | ||||||
13 | organization, other than a limited liability
company, that is | ||||||
14 | organized and operated as a not-for-profit service enterprise
| ||||||
15 | for the benefit of persons 65 years of age or older if the | ||||||
16 | personal property
was not purchased by the enterprise for the | ||||||
17 | purpose of resale by the
enterprise. | ||||||
18 | (2) Personal property purchased by a not-for-profit | ||||||
19 | Illinois county
fair association for use in conducting, | ||||||
20 | operating, or promoting the
county fair. | ||||||
21 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
22 | cultural organization that establishes, by proof required by | ||||||
23 | the
Department by
rule, that it has received an exemption under | ||||||
24 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
25 | 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, and beginning again on the | ||||||
18 | effective date of this amendatory Act of the 96th General | ||||||
19 | Assembly and thereafter, coal and aggregate exploration, | ||||||
20 | mining, offhighway hauling,
processing, maintenance, and | ||||||
21 | reclamation equipment,
including replacement parts and | ||||||
22 | equipment, and
including equipment purchased for lease, but | ||||||
23 | excluding motor
vehicles required to be registered under the | ||||||
24 | Illinois Vehicle Code. This item (16) is not subject to the | ||||||
25 | provisions of Section 3-90. | ||||||
26 | (17) Until July 1, 2003, distillation machinery and |
| |||||||
| |||||||
1 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
2 | retailer, certified by the user to be used
only for the | ||||||
3 | production of ethyl alcohol that will be used for consumption
| ||||||
4 | as motor fuel or as a component of motor fuel for the personal | ||||||
5 | use of the
user, and not subject to sale or resale. | ||||||
6 | (18) Manufacturing and assembling machinery and equipment | ||||||
7 | used
primarily in the process of manufacturing or assembling | ||||||
8 | tangible
personal property for wholesale or retail sale or | ||||||
9 | lease, whether that sale
or lease is made directly by the | ||||||
10 | manufacturer or by some other person,
whether the materials | ||||||
11 | used in the process are
owned by the manufacturer or some other | ||||||
12 | person, or whether that sale or
lease is made apart from or as | ||||||
13 | an incident to the seller's engaging in
the service occupation | ||||||
14 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
15 | other similar items of no commercial value on
special order for | ||||||
16 | a particular purchaser. | ||||||
17 | (19) Personal property delivered to a purchaser or | ||||||
18 | purchaser's donee
inside Illinois when the purchase order for | ||||||
19 | that personal property was
received by a florist located | ||||||
20 | outside Illinois who has a florist located
inside Illinois | ||||||
21 | deliver the personal property. | ||||||
22 | (20) Semen used for artificial insemination of livestock | ||||||
23 | for direct
agricultural production. | ||||||
24 | (21) 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 (21) is exempt from the provisions | ||||||
4 | of Section 3-90, and the exemption provided for under this item | ||||||
5 | (21) 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
for such taxes paid during the period beginning May 30, | ||||||
8 | 2000 and ending on January 1, 2008.
| ||||||
9 | (22) Computers and communications equipment utilized for | ||||||
10 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
11 | analysis, or treatment of hospital patients purchased by a | ||||||
12 | lessor who leases
the
equipment, under a lease of one year or | ||||||
13 | longer executed or in effect at the
time the lessor would | ||||||
14 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
15 | hospital
that has been issued an active tax exemption | ||||||
16 | identification number by
the
Department under Section 1g of the | ||||||
17 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
18 | manner that does not qualify for
this exemption or is used in | ||||||
19 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
20 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
21 | case may
be, based on the fair market value of the property at | ||||||
22 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
23 | or attempt to collect an
amount (however
designated) that | ||||||
24 | purports to reimburse that lessor for the tax imposed by this
| ||||||
25 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
26 | has not been
paid by the lessor. If a lessor improperly |
| |||||||
| |||||||
1 | collects any such amount from the
lessee, the lessee shall have | ||||||
2 | a legal right to claim a refund of that amount
from the lessor. | ||||||
3 | If, however, that amount is not refunded to the lessee for
any | ||||||
4 | reason, the lessor is liable to pay that amount to the | ||||||
5 | Department. | ||||||
6 | (23) Personal property purchased by a lessor who leases the
| ||||||
7 | property, under
a
lease of
one year or longer executed or in | ||||||
8 | effect at the time
the lessor would otherwise be subject to the | ||||||
9 | tax imposed by this Act,
to a governmental body
that has been | ||||||
10 | issued an active sales tax exemption identification number by | ||||||
11 | the
Department under Section 1g of the Retailers' Occupation | ||||||
12 | Tax Act.
If the
property is leased in a manner that does not | ||||||
13 | qualify for
this exemption
or used in any other non-exempt | ||||||
14 | manner, the lessor shall be liable for the
tax imposed under | ||||||
15 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
16 | on the fair market value of the property at the time the
| ||||||
17 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
18 | to collect an
amount (however
designated) that purports to | ||||||
19 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
20 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
21 | paid by the lessor. If a lessor improperly collects any such | ||||||
22 | amount from the
lessee, the lessee shall have a legal right to | ||||||
23 | claim a refund of that amount
from the lessor. If, however, | ||||||
24 | that amount is not refunded to the lessee for
any reason, the | ||||||
25 | lessor is liable to pay that amount to the Department. | ||||||
26 | (24) Beginning with taxable years ending on or after |
| |||||||
| |||||||
1 | December
31, 1995
and
ending with taxable years ending on or | ||||||
2 | before December 31, 2004,
personal property that is
donated for | ||||||
3 | disaster relief to be used in a State or federally declared
| ||||||
4 | disaster area in Illinois or bordering Illinois by a | ||||||
5 | manufacturer or retailer
that is registered in this State to a | ||||||
6 | corporation, society, association,
foundation, or institution | ||||||
7 | that has been issued a sales tax exemption
identification | ||||||
8 | number by the Department that assists victims of the disaster
| ||||||
9 | who reside within the declared disaster area. | ||||||
10 | (25) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995 and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004, personal
property that is used in the | ||||||
13 | performance of infrastructure repairs in this
State, including | ||||||
14 | but not limited to municipal roads and streets, access roads,
| ||||||
15 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
16 | line extensions,
water distribution and purification | ||||||
17 | facilities, storm water drainage and
retention facilities, and | ||||||
18 | sewage treatment facilities, resulting from a State
or | ||||||
19 | federally declared disaster in Illinois or bordering Illinois | ||||||
20 | when such
repairs are initiated on facilities located in the | ||||||
21 | declared disaster area
within 6 months after the disaster. | ||||||
22 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
23 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
24 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
25 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
26 | Department of Natural Resources. This paragraph is exempt from |
| |||||||
| |||||||
1 | the provisions
of
Section 3-90. | ||||||
2 | (27) A motor vehicle, as that term is defined in Section | ||||||
3 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
4 | corporation, limited liability company,
society, association, | ||||||
5 | foundation, or institution that is determined by the
Department | ||||||
6 | to be organized and operated exclusively for educational | ||||||
7 | purposes.
For purposes of this exemption, "a corporation, | ||||||
8 | limited liability company,
society, association, foundation, | ||||||
9 | or institution organized and operated
exclusively for | ||||||
10 | educational purposes" means all tax-supported public schools,
| ||||||
11 | private schools that offer systematic instruction in useful | ||||||
12 | branches of
learning by methods common to public schools and | ||||||
13 | that compare favorably in
their scope and intensity with the | ||||||
14 | course of study presented in tax-supported
schools, and | ||||||
15 | vocational or technical schools or institutes organized and
| ||||||
16 | operated exclusively to provide a course of study of not less | ||||||
17 | than 6 weeks
duration and designed to prepare individuals to | ||||||
18 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
19 | industrial, business, or commercial
occupation. | ||||||
20 | (28) Beginning January 1, 2000, personal property, | ||||||
21 | including
food,
purchased through fundraising
events for the | ||||||
22 | benefit of
a public or private elementary or
secondary school, | ||||||
23 | a group of those schools, or one or more school
districts if | ||||||
24 | the events are
sponsored by an entity recognized by the school | ||||||
25 | district that consists
primarily of volunteers and includes
| ||||||
26 | parents and teachers of the school children. This paragraph |
| |||||||
| |||||||
1 | does not apply
to fundraising
events (i) for the benefit of | ||||||
2 | private home instruction or (ii)
for which the fundraising | ||||||
3 | entity purchases the personal property sold at
the events from | ||||||
4 | another individual or entity that sold the property for the
| ||||||
5 | purpose of resale by the fundraising entity and that
profits | ||||||
6 | from the sale to the
fundraising entity. This paragraph is | ||||||
7 | exempt
from the provisions
of Section 3-90. | ||||||
8 | (29) Beginning January 1, 2000 and through December 31, | ||||||
9 | 2001, new or
used automatic vending
machines that prepare and | ||||||
10 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
11 | items, and replacement parts for these machines.
Beginning | ||||||
12 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
13 | for machines used in
commercial, coin-operated amusement and | ||||||
14 | vending business if a use or occupation
tax is paid on the | ||||||
15 | gross receipts derived from the use of the commercial,
| ||||||
16 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
17 | is exempt from the provisions of Section 3-90. | ||||||
18 | (30) Beginning January 1, 2001 and through June 30, 2011, | ||||||
19 | food for human consumption that is to be consumed off the | ||||||
20 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
21 | drinks, and food that
has been prepared for immediate | ||||||
22 | consumption) and prescription and
nonprescription medicines, | ||||||
23 | drugs, medical appliances, and insulin, urine
testing | ||||||
24 | materials, syringes, and needles used by diabetics, for human | ||||||
25 | use, when
purchased for use by a person receiving medical | ||||||
26 | assistance under Article V of
the Illinois Public Aid Code who |
| |||||||
| |||||||
1 | resides in a licensed long-term care facility,
as defined in | ||||||
2 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
3 | in the MR/DD Community Care Act. | ||||||
4 | (31) Beginning on
the effective date of this amendatory Act | ||||||
5 | of the 92nd General Assembly,
computers and communications | ||||||
6 | equipment
utilized for any hospital purpose and equipment used | ||||||
7 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
8 | purchased by a lessor who leases
the equipment, under a lease | ||||||
9 | of one year or longer executed or in effect at the
time the | ||||||
10 | lessor would otherwise be subject to the tax imposed by this | ||||||
11 | Act, to a
hospital that has been issued an active tax exemption | ||||||
12 | identification number by
the Department under Section 1g of the | ||||||
13 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
14 | manner that does not qualify for this exemption or is
used in | ||||||
15 | any other nonexempt manner, the lessor shall be liable for the | ||||||
16 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
17 | case may be, based on
the fair market value of the property at | ||||||
18 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
19 | or attempt to collect an amount (however
designated) that | ||||||
20 | purports to reimburse that lessor for the tax imposed by this
| ||||||
21 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
22 | has not been
paid by the lessor. If a lessor improperly | ||||||
23 | collects any such amount from the
lessee, the lessee shall have | ||||||
24 | a legal right to claim a refund of that amount
from the lessor. | ||||||
25 | If, however, that amount is not refunded to the lessee for
any | ||||||
26 | reason, the lessor is liable to pay that amount to the |
| |||||||
| |||||||
1 | Department.
This paragraph is exempt from the provisions of | ||||||
2 | Section 3-90. | ||||||
3 | (32) Beginning on
the effective date of this amendatory Act | ||||||
4 | of the 92nd General Assembly,
personal property purchased by a | ||||||
5 | lessor who leases the property,
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 | governmental body that has been issued an active sales tax | ||||||
9 | exemption
identification number by the Department under | ||||||
10 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
11 | property is leased in a manner that does not
qualify for this | ||||||
12 | exemption or used in any other nonexempt manner, the lessor
| ||||||
13 | shall be liable for the tax imposed under this Act or the | ||||||
14 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
15 | market value of the property at the time
the nonqualifying use | ||||||
16 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
17 | (however designated) that purports to reimburse that lessor for | ||||||
18 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
19 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
20 | lessor improperly collects any such
amount from the lessee, the | ||||||
21 | lessee shall have a legal right to claim a refund
of that | ||||||
22 | amount from the lessor. If, however, that amount is not | ||||||
23 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
24 | pay that amount to the
Department. This paragraph is exempt | ||||||
25 | from the provisions of Section 3-90. | ||||||
26 | (33) On and after July 1, 2003 and through June 30, 2004, |
| |||||||
| |||||||
1 | the use in this State of motor vehicles of
the second division | ||||||
2 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
3 | are subject to the commercial distribution fee imposed under | ||||||
4 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
5 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
6 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
7 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
8 | to the commercial distribution fee imposed under Section | ||||||
9 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
10 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
11 | this exemption applies to repair and
replacement parts added | ||||||
12 | after the initial purchase of such a motor vehicle if
that | ||||||
13 | motor
vehicle is used in a manner that would qualify for the | ||||||
14 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
15 | purposes of this paragraph, the term "used for commercial | ||||||
16 | purposes" means the transportation of persons or property in | ||||||
17 | furtherance of any commercial or industrial enterprise, | ||||||
18 | whether for-hire or not.
| ||||||
19 | (34) Beginning January 1, 2008, tangible personal property | ||||||
20 | used in the construction or maintenance of a community water | ||||||
21 | supply, as defined under Section 3.145 of the Environmental | ||||||
22 | Protection Act, that is operated by a not-for-profit | ||||||
23 | corporation that holds a valid water supply permit issued under | ||||||
24 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
25 | exempt from the provisions of Section 3-90. | ||||||
26 | (35) Beginning January 1, 2010, materials, parts, |
| |||||||
| |||||||
1 | equipment, components, and furnishings incorporated into or | ||||||
2 | upon an aircraft as part of the modification, refurbishment, | ||||||
3 | completion, replacement, repair, or maintenance of the | ||||||
4 | aircraft. This exemption includes consumable supplies used in | ||||||
5 | the modification, refurbishment, completion, replacement, | ||||||
6 | repair, and maintenance of aircraft, but excludes any | ||||||
7 | materials, parts, equipment, components, and consumable | ||||||
8 | supplies used in the modification, replacement, repair, and | ||||||
9 | maintenance of aircraft engines or power plants, whether such | ||||||
10 | engines or power plants are installed or uninstalled upon any | ||||||
11 | such aircraft. "Consumable supplies" include, but are not | ||||||
12 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
13 | lubricants, cleaning solution, latex gloves, and protective | ||||||
14 | films. This exemption applies only to those organizations that | ||||||
15 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
16 | an approved repair station by the Federal Aviation | ||||||
17 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
18 | operations in accordance with Part 145 of the Federal Aviation | ||||||
19 | Regulations. The exemption does not include aircraft operated | ||||||
20 | by a commercial air carrier providing scheduled passenger air | ||||||
21 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
22 | of the Federal Aviation Regulations. | ||||||
23 | (36) (35) Tangible personal property purchased by a | ||||||
24 | public-facilities corporation, as described in Section | ||||||
25 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
26 | constructing or furnishing a municipal convention hall, but |
| |||||||
| |||||||
1 | only if the legal title to the municipal convention hall is | ||||||
2 | transferred to the municipality without any further | ||||||
3 | consideration by or on behalf of the municipality at the time | ||||||
4 | of the completion of the municipal convention hall or upon the | ||||||
5 | retirement or redemption of any bonds or other debt instruments | ||||||
6 | issued by the public-facilities corporation in connection with | ||||||
7 | the development of the municipal convention hall. This | ||||||
8 | exemption includes existing public-facilities corporations as | ||||||
9 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
10 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
11 | (37) Monuments or monument components purchased for the | ||||||
12 | purpose of honoring military veterans, as the term "veteran" is | ||||||
13 | defined in 10 U.S.C. 1491, if the monument or monument | ||||||
14 | component is purchased by (i) a nonprofit organization that is | ||||||
15 | exempt from
federal income taxation under Section 501(c)(3) of | ||||||
16 | the federal Internal
Revenue Code of 1986 or (ii) a veterans' | ||||||
17 | organization chartered under federal law. An exemption under | ||||||
18 | this item (37) is limited to purchases from one retailer per | ||||||
19 | monument or monument component. An exemption under this item | ||||||
20 | (37) is limited to $2,000 per monument. For the purposes of | ||||||
21 | this item (37), a monument is a structure, other than a | ||||||
22 | building, erected with the primary purpose of commemorating a | ||||||
23 | person or event. | ||||||
24 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
25 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | ||||||
26 | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; revised 9-25-09.) |
| |||||||
| |||||||
1 | Section 10. The Service Use Tax Act is amended by changing | ||||||
2 | Section 3-5 as follows: | ||||||
3 | (35 ILCS 110/3-5) | ||||||
4 | (Text of Section before amendment by P.A. 96-339 ) | ||||||
5 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
6 | personal property
is exempt from the tax imposed by this Act: | ||||||
7 | (1) Personal property purchased from a corporation, | ||||||
8 | society,
association, foundation, institution, or | ||||||
9 | organization, other than a limited
liability company, that is | ||||||
10 | organized and operated as a not-for-profit service
enterprise | ||||||
11 | for the benefit of persons 65 years of age or older if the | ||||||
12 | personal
property was not purchased by the enterprise for the | ||||||
13 | purpose of resale by the
enterprise. | ||||||
14 | (2) Personal property purchased by a non-profit Illinois | ||||||
15 | county fair
association for use in conducting, operating, or | ||||||
16 | promoting the county fair. | ||||||
17 | (3) Personal property purchased by 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 |
| |||||||
| |||||||
1 | orchestras and theatrical groups, arts and
cultural service | ||||||
2 | organizations, local arts councils, visual arts organizations,
| ||||||
3 | and media arts organizations.
On and after the effective date | ||||||
4 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
5 | an entity otherwise eligible for this exemption shall not
make | ||||||
6 | tax-free purchases unless it has an active identification | ||||||
7 | number issued by
the Department. | ||||||
8 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
9 | coinage issued
by the State of Illinois, the government of the | ||||||
10 | United States of America,
or the government of any foreign | ||||||
11 | country, and bullion. | ||||||
12 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
13 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
14 | equipment, including
repair and
replacement parts, both new and | ||||||
15 | used, and including that manufactured on
special order or | ||||||
16 | purchased for lease, certified by the purchaser to be used
| ||||||
17 | primarily for graphic arts production.
Equipment includes | ||||||
18 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
19 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
20 | immediate
change upon a graphic arts product. | ||||||
21 | (6) Personal property purchased from a teacher-sponsored | ||||||
22 | student
organization affiliated with an elementary or | ||||||
23 | secondary school located
in Illinois. | ||||||
24 | (7) Farm machinery and equipment, both new and used, | ||||||
25 | including that
manufactured on special order, certified by the | ||||||
26 | purchaser to be used
primarily for production agriculture or |
| |||||||
| |||||||
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 (7).
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 3-75. | ||||||
7 | (8) Fuel and petroleum products sold to or used by an air | ||||||
8 | common
carrier, certified by the carrier to be used for | ||||||
9 | consumption, shipment, or
storage in the conduct of its | ||||||
10 | business as an air common carrier, for a
flight destined for or | ||||||
11 | returning from a location or locations
outside the United | ||||||
12 | States without regard to previous or subsequent domestic
| ||||||
13 | stopovers. | ||||||
14 | (9) Proceeds of mandatory service charges separately | ||||||
15 | stated on
customers' bills for the purchase and consumption of | ||||||
16 | food and beverages
acquired as an incident to the purchase of a | ||||||
17 | service from a serviceman, to
the extent that the proceeds of | ||||||
18 | the service charge are in fact
turned over as tips or as a | ||||||
19 | substitute for tips to the employees who
participate directly | ||||||
20 | in preparing, serving, hosting or cleaning up the
food or | ||||||
21 | beverage function with respect to which the service charge is | ||||||
22 | imposed. | ||||||
23 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
24 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
25 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
26 | tubular goods, including casing and
drill strings, (iii) pumps |
| |||||||
| |||||||
1 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
2 | individual replacement part for oil field exploration,
| ||||||
3 | drilling, and production equipment, and (vi) machinery and | ||||||
4 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
5 | required to be registered under the Illinois
Vehicle Code. | ||||||
6 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
7 | and
equipment, including repair and replacement parts, both new | ||||||
8 | and
used, including that manufactured on special order, | ||||||
9 | certified by the
purchaser to be used primarily for | ||||||
10 | photoprocessing, and including
photoprocessing machinery and | ||||||
11 | equipment purchased for lease. | ||||||
12 | (12) Until July 1, 2003, and beginning again on the | ||||||
13 | effective date of this amendatory Act of the 96th General | ||||||
14 | Assembly and thereafter, coal and aggregate exploration, | ||||||
15 | mining, offhighway hauling,
processing,
maintenance, and | ||||||
16 | reclamation equipment, including
replacement parts and | ||||||
17 | equipment, and including
equipment purchased for lease, but | ||||||
18 | excluding motor vehicles required to be
registered under the | ||||||
19 | Illinois Vehicle Code. This item (12) is not subject to the | ||||||
20 | provisions of Section 3-75. | ||||||
21 | (13) Semen used for artificial insemination of livestock | ||||||
22 | for direct
agricultural production. | ||||||
23 | (14) Horses, or interests in horses, registered with and | ||||||
24 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
25 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
26 | Horse Association, United States
Trotting Association, or |
| |||||||
| |||||||
1 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
2 | racing for prizes. This item (14) is exempt from the provisions | ||||||
3 | of Section 3-75, and the exemption provided for under this item | ||||||
4 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
5 | claim for credit or refund is allowed on or after the effective | ||||||
6 | date of this amendatory Act of the 95th General Assembly for | ||||||
7 | such taxes paid during the period beginning May 30, 2000 and | ||||||
8 | ending on the effective date of this amendatory Act of the 95th | ||||||
9 | General Assembly. | ||||||
10 | (15) Computers and communications equipment utilized for | ||||||
11 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
12 | analysis, or treatment of hospital patients purchased by a | ||||||
13 | lessor who leases
the
equipment, under a lease of one year or | ||||||
14 | longer executed or in effect at the
time
the lessor would | ||||||
15 | otherwise be subject to the tax imposed by this Act,
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.
If the
equipment is leased in a | ||||||
19 | manner that does not qualify for
this exemption
or is used in | ||||||
20 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
21 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
22 | be, based on the fair market value of the property at the time | ||||||
23 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
24 | attempt to collect an
amount (however
designated) that purports | ||||||
25 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
26 | Use Tax Act, as the case may be, if the tax has not been
paid by |
| |||||||
| |||||||
1 | the lessor. If a lessor improperly collects any such amount | ||||||
2 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
3 | refund of that amount
from the lessor. If, however, that amount | ||||||
4 | is not refunded to the lessee for
any reason, the lessor is | ||||||
5 | liable to pay that amount to the Department. | ||||||
6 | (16) Personal property purchased by a lessor who leases the
| ||||||
7 | property, under
a
lease of one year or longer executed or in | ||||||
8 | effect at the time
the lessor would otherwise be subject to the | ||||||
9 | tax imposed by this Act,
to a governmental body
that has been | ||||||
10 | issued an active tax exemption identification number by the
| ||||||
11 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
12 | Act.
If the
property is leased in a manner that does not | ||||||
13 | qualify for
this exemption
or is used in any other non-exempt | ||||||
14 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
15 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
16 | fair market value of the property at the time the
| ||||||
17 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
18 | to collect an
amount (however
designated) that purports to | ||||||
19 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
20 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
21 | the lessor. If a lessor improperly collects any such amount | ||||||
22 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
23 | refund of that amount
from the lessor. If, however, that amount | ||||||
24 | is not refunded to the lessee for
any reason, the lessor is | ||||||
25 | liable to pay that amount to the Department. | ||||||
26 | (17) Beginning with taxable years ending on or after |
| |||||||
| |||||||
1 | December
31,
1995
and
ending with taxable years ending on or | ||||||
2 | before December 31, 2004,
personal property that is
donated for | ||||||
3 | disaster relief to be used in a State or federally declared
| ||||||
4 | disaster area in Illinois or bordering Illinois by a | ||||||
5 | manufacturer or retailer
that is registered in this State to a | ||||||
6 | corporation, society, association,
foundation, or institution | ||||||
7 | that has been issued a sales tax exemption
identification | ||||||
8 | number by the Department that assists victims of the disaster
| ||||||
9 | who reside within the declared disaster area. | ||||||
10 | (18) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995 and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004, personal
property that is used in the | ||||||
13 | performance of infrastructure repairs in this
State, including | ||||||
14 | but not limited to municipal roads and streets, access roads,
| ||||||
15 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
16 | line extensions,
water distribution and purification | ||||||
17 | facilities, storm water drainage and
retention facilities, and | ||||||
18 | sewage treatment facilities, resulting from a State
or | ||||||
19 | federally declared disaster in Illinois or bordering Illinois | ||||||
20 | when such
repairs are initiated on facilities located in the | ||||||
21 | declared disaster area
within 6 months after the disaster. | ||||||
22 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
23 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
24 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
25 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
26 | Department of Natural Resources. This paragraph is exempt from |
| |||||||
| |||||||
1 | the provisions
of
Section 3-75. | ||||||
2 | (20) A motor vehicle, as that term is defined in Section | ||||||
3 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
4 | corporation, limited liability
company, society, association, | ||||||
5 | foundation, or institution that is determined by
the Department | ||||||
6 | to be organized and operated exclusively for educational
| ||||||
7 | purposes. For purposes of this exemption, "a corporation, | ||||||
8 | limited liability
company, society, association, foundation, | ||||||
9 | or institution organized and
operated
exclusively for | ||||||
10 | educational purposes" means all tax-supported public schools,
| ||||||
11 | private schools that offer systematic instruction in useful | ||||||
12 | branches of
learning by methods common to public schools and | ||||||
13 | that compare favorably in
their scope and intensity with the | ||||||
14 | course of study presented in tax-supported
schools, and | ||||||
15 | vocational or technical schools or institutes organized and
| ||||||
16 | operated exclusively to provide a course of study of not less | ||||||
17 | than 6 weeks
duration and designed to prepare individuals to | ||||||
18 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
19 | industrial, business, or commercial
occupation. | ||||||
20 | (21) Beginning January 1, 2000, personal property, | ||||||
21 | including
food,
purchased through fundraising
events for the | ||||||
22 | benefit of
a public or private elementary or
secondary school, | ||||||
23 | a group of those schools, or one or more school
districts if | ||||||
24 | the events are
sponsored by an entity recognized by the school | ||||||
25 | district that consists
primarily of volunteers and includes
| ||||||
26 | parents and teachers of the school children. This paragraph |
| |||||||
| |||||||
1 | does not apply
to fundraising
events (i) for the benefit of | ||||||
2 | private home instruction or (ii)
for which the fundraising | ||||||
3 | entity purchases the personal property sold at
the events from | ||||||
4 | another individual or entity that sold the property for the
| ||||||
5 | purpose of resale by the fundraising entity and that
profits | ||||||
6 | from the sale to the
fundraising entity. This paragraph is | ||||||
7 | exempt
from the provisions
of Section 3-75. | ||||||
8 | (22) Beginning January 1, 2000
and through December 31, | ||||||
9 | 2001, new or used automatic vending
machines that prepare and | ||||||
10 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
11 | items, and replacement parts for these machines.
Beginning | ||||||
12 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
13 | for machines used in
commercial, coin-operated
amusement
and | ||||||
14 | vending business if a use or occupation tax is paid on the | ||||||
15 | gross receipts
derived from
the use of the commercial, | ||||||
16 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
17 | is exempt from the provisions of Section 3-75. | ||||||
18 | (23) Beginning August 23, 2001 and through June 30, 2011, | ||||||
19 | food for human consumption that is to be consumed off the
| ||||||
20 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
21 | drinks, and food that
has been prepared for immediate | ||||||
22 | consumption) and prescription and
nonprescription medicines, | ||||||
23 | drugs, medical appliances, and insulin, urine
testing | ||||||
24 | materials, syringes, and needles used by diabetics, for human | ||||||
25 | use, when
purchased for use by a person receiving medical | ||||||
26 | assistance under Article 5 of
the Illinois Public Aid Code who |
| |||||||
| |||||||
1 | resides in a licensed long-term care facility,
as defined in | ||||||
2 | the Nursing Home Care Act. | ||||||
3 | (24) Beginning on the effective date of this amendatory Act | ||||||
4 | of the 92nd
General Assembly, computers and communications | ||||||
5 | equipment
utilized for any hospital purpose and equipment used | ||||||
6 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
7 | purchased by a lessor who leases
the equipment, under a lease | ||||||
8 | of one year or longer executed or in effect at the
time the | ||||||
9 | lessor would otherwise be subject to the tax imposed by this | ||||||
10 | Act, to a
hospital that has been issued an active tax exemption | ||||||
11 | identification number by
the Department under Section 1g of the | ||||||
12 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
13 | manner that does not qualify for this exemption or is
used in | ||||||
14 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
15 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
16 | be, based on the
fair market value of the property at the time | ||||||
17 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
18 | attempt to collect an amount (however
designated) that purports | ||||||
19 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
20 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
21 | the lessor. If a lessor improperly collects any such amount | ||||||
22 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
23 | refund of that amount
from the lessor. If, however, that amount | ||||||
24 | is not refunded to the lessee for
any reason, the lessor is | ||||||
25 | liable to pay that amount to the Department.
This paragraph is | ||||||
26 | exempt from the provisions of Section 3-75. |
| |||||||
| |||||||
1 | (25) Beginning
on the effective date of this amendatory Act | ||||||
2 | of the 92nd General Assembly,
personal property purchased by a | ||||||
3 | lessor
who leases the property, under a lease of one year or | ||||||
4 | longer executed or in
effect at the time the lessor would | ||||||
5 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
6 | governmental body that has been issued an active tax exemption
| ||||||
7 | identification number by the Department under Section 1g of the | ||||||
8 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
9 | manner that does not
qualify for this exemption or is used in | ||||||
10 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
11 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
12 | be, based on the fair market value of the property at the time
| ||||||
13 | the nonqualifying use occurs. No lessor shall collect or | ||||||
14 | attempt to collect
an amount (however designated) that purports | ||||||
15 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
16 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
17 | the lessor. If a lessor improperly collects any such amount
| ||||||
18 | from the lessee, the lessee shall have a legal right to claim a | ||||||
19 | refund of that
amount from the lessor. If, however, that amount | ||||||
20 | is not refunded to the lessee
for any reason, the lessor is | ||||||
21 | liable to pay that amount to the Department.
This paragraph is | ||||||
22 | exempt from the provisions of Section 3-75. | ||||||
23 | (26) Beginning January 1, 2008, tangible personal property | ||||||
24 | used in the construction or maintenance of a community water | ||||||
25 | supply, as defined under Section 3.145 of the Environmental | ||||||
26 | Protection Act, that is operated by a not-for-profit |
| |||||||
| |||||||
1 | corporation that holds a valid water supply permit issued under | ||||||
2 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
3 | exempt from the provisions of Section 3-75.
| ||||||
4 | (27) Beginning January 1, 2010, materials, parts, | ||||||
5 | equipment, components, and furnishings incorporated into or | ||||||
6 | upon an aircraft as part of the modification, refurbishment, | ||||||
7 | completion, replacement, repair, or maintenance of the | ||||||
8 | aircraft. This exemption includes consumable supplies used in | ||||||
9 | the modification, refurbishment, completion, replacement, | ||||||
10 | repair, and maintenance of aircraft, but excludes any | ||||||
11 | materials, parts, equipment, components, and consumable | ||||||
12 | supplies used in the modification, replacement, repair, and | ||||||
13 | maintenance of aircraft engines or power plants, whether such | ||||||
14 | engines or power plants are installed or uninstalled upon any | ||||||
15 | such aircraft. "Consumable supplies" include, but are not | ||||||
16 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
17 | lubricants, cleaning solution, latex gloves, and protective | ||||||
18 | films. This exemption applies only to those organizations that | ||||||
19 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
20 | an approved repair station by the Federal Aviation | ||||||
21 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
22 | operations in accordance with Part 145 of the Federal Aviation | ||||||
23 | Regulations. The exemption does not include aircraft operated | ||||||
24 | by a commercial air carrier providing scheduled passenger air | ||||||
25 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
26 | of the Federal Aviation Regulations. |
| |||||||
| |||||||
1 | (28) (27) Tangible personal property purchased by a | ||||||
2 | public-facilities corporation, as described in Section | ||||||
3 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
4 | constructing or furnishing a municipal convention hall, but | ||||||
5 | only if the legal title to the municipal convention hall is | ||||||
6 | transferred to the municipality without any further | ||||||
7 | consideration by or on behalf of the municipality at the time | ||||||
8 | of the completion of the municipal convention hall or upon the | ||||||
9 | retirement or redemption of any bonds or other debt instruments | ||||||
10 | issued by the public-facilities corporation in connection with | ||||||
11 | the development of the municipal convention hall. This | ||||||
12 | exemption includes existing public-facilities corporations as | ||||||
13 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
14 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
15 | (29) Monuments or monument components purchased for the | ||||||
16 | purpose of honoring military veterans, as the term "veteran" is | ||||||
17 | defined in 10 U.S.C. 1491, if the monument or monument | ||||||
18 | component is purchased by (i) a nonprofit organization that is | ||||||
19 | exempt from
federal income taxation under Section 501(c)(3) of | ||||||
20 | the federal Internal
Revenue Code of 1986 or (ii) a veterans' | ||||||
21 | organization chartered under federal law. An exemption under | ||||||
22 | this item (29) is limited to purchases from one retailer per | ||||||
23 | monument or monument component. An exemption under this item | ||||||
24 | (29) is limited to $2,000 per monument. For the purposes of | ||||||
25 | this item (29), a monument is a structure, other than a | ||||||
26 | building, erected with the primary purpose of commemorating a |
| |||||||
| |||||||
1 | person or event. | ||||||
2 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
3 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-532, eff. 8-14-09; | ||||||
4 | 96-759, eff. 1-1-10; revised 9-25-09.) | ||||||
5 | (Text of Section after amendment by P.A. 96-339 ) | ||||||
6 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
7 | personal property
is exempt from the tax imposed by this Act: | ||||||
8 | (1) Personal property purchased from a corporation, | ||||||
9 | society,
association, foundation, institution, or | ||||||
10 | organization, other than a limited
liability company, that is | ||||||
11 | organized and operated as a not-for-profit service
enterprise | ||||||
12 | for the benefit of persons 65 years of age or older if the | ||||||
13 | personal
property was not purchased by the enterprise for the | ||||||
14 | purpose of resale by the
enterprise. | ||||||
15 | (2) Personal property purchased by a non-profit Illinois | ||||||
16 | county fair
association for use in conducting, operating, or | ||||||
17 | promoting the county fair. | ||||||
18 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
19 | cultural
organization that establishes, by proof required by | ||||||
20 | the Department by rule,
that it has received an exemption under | ||||||
21 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
22 | organized and operated primarily for the
presentation
or | ||||||
23 | support of arts or cultural programming, activities, or | ||||||
24 | services. These
organizations include, but are not limited to, | ||||||
25 | music and dramatic arts
organizations such as symphony |
| |||||||
| |||||||
1 | orchestras and theatrical groups, arts and
cultural service | ||||||
2 | organizations, local arts councils, visual arts organizations,
| ||||||
3 | and media arts organizations.
On and after the effective date | ||||||
4 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
5 | an entity otherwise eligible for this exemption shall not
make | ||||||
6 | tax-free purchases unless it has an active identification | ||||||
7 | number issued by
the Department. | ||||||
8 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
9 | coinage issued
by the State of Illinois, the government of the | ||||||
10 | United States of America,
or the government of any foreign | ||||||
11 | country, and bullion. | ||||||
12 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
13 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
14 | equipment, including
repair and
replacement parts, both new and | ||||||
15 | used, and including that manufactured on
special order or | ||||||
16 | purchased for lease, certified by the purchaser to be used
| ||||||
17 | primarily for graphic arts production.
Equipment includes | ||||||
18 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
19 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
20 | immediate
change upon a graphic arts product. | ||||||
21 | (6) Personal property purchased from a teacher-sponsored | ||||||
22 | student
organization affiliated with an elementary or | ||||||
23 | secondary school located
in Illinois. | ||||||
24 | (7) Farm machinery and equipment, both new and used, | ||||||
25 | including that
manufactured on special order, certified by the | ||||||
26 | purchaser to be used
primarily for production agriculture or |
| |||||||
| |||||||
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 (7).
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 3-75. | ||||||
7 | (8) Fuel and petroleum products sold to or used by an air | ||||||
8 | common
carrier, certified by the carrier to be used for | ||||||
9 | consumption, shipment, or
storage in the conduct of its | ||||||
10 | business as an air common carrier, for a
flight destined for or | ||||||
11 | returning from a location or locations
outside the United | ||||||
12 | States without regard to previous or subsequent domestic
| ||||||
13 | stopovers. | ||||||
14 | (9) Proceeds of mandatory service charges separately | ||||||
15 | stated on
customers' bills for the purchase and consumption of | ||||||
16 | food and beverages
acquired as an incident to the purchase of a | ||||||
17 | service from a serviceman, to
the extent that the proceeds of | ||||||
18 | the service charge are in fact
turned over as tips or as a | ||||||
19 | substitute for tips to the employees who
participate directly | ||||||
20 | in preparing, serving, hosting or cleaning up the
food or | ||||||
21 | beverage function with respect to which the service charge is | ||||||
22 | imposed. | ||||||
23 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
24 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
25 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
26 | tubular goods, including casing and
drill strings, (iii) pumps |
| |||||||
| |||||||
1 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
2 | individual replacement part for oil field exploration,
| ||||||
3 | drilling, and production equipment, and (vi) machinery and | ||||||
4 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
5 | required to be registered under the Illinois
Vehicle Code. | ||||||
6 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
7 | and
equipment, including repair and replacement parts, both new | ||||||
8 | and
used, including that manufactured on special order, | ||||||
9 | certified by the
purchaser to be used primarily for | ||||||
10 | photoprocessing, and including
photoprocessing machinery and | ||||||
11 | equipment purchased for lease. | ||||||
12 | (12) Until July 1, 2003, and beginning again on the | ||||||
13 | effective date of this amendatory Act of the 96th General | ||||||
14 | Assembly and thereafter, coal and aggregate exploration, | ||||||
15 | mining, offhighway hauling,
processing,
maintenance, and | ||||||
16 | reclamation equipment, including
replacement parts and | ||||||
17 | equipment, and including
equipment purchased for lease, but | ||||||
18 | excluding motor vehicles required to be
registered under the | ||||||
19 | Illinois Vehicle Code. This item (12) is not subject to the | ||||||
20 | provisions of Section 3-75. | ||||||
21 | (13) Semen used for artificial insemination of livestock | ||||||
22 | for direct
agricultural production. | ||||||
23 | (14) Horses, or interests in horses, registered with and | ||||||
24 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
25 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
26 | Horse Association, United States
Trotting Association, or |
| |||||||
| |||||||
1 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
2 | racing for prizes. This item (14) is exempt from the provisions | ||||||
3 | of Section 3-75, and the exemption provided for under this item | ||||||
4 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
5 | claim for credit or refund is allowed on or after the effective | ||||||
6 | date of this amendatory Act of the 95th General Assembly for | ||||||
7 | such taxes paid during the period beginning May 30, 2000 and | ||||||
8 | ending on the effective date of this amendatory Act of the 95th | ||||||
9 | General Assembly. | ||||||
10 | (15) Computers and communications equipment utilized for | ||||||
11 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
12 | analysis, or treatment of hospital patients purchased by a | ||||||
13 | lessor who leases
the
equipment, under a lease of one year or | ||||||
14 | longer executed or in effect at the
time
the lessor would | ||||||
15 | otherwise be subject to the tax imposed by this Act,
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.
If the
equipment is leased in a | ||||||
19 | manner that does not qualify for
this exemption
or is used in | ||||||
20 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
21 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
22 | be, based on the fair market value of the property at the time | ||||||
23 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
24 | attempt to collect an
amount (however
designated) that purports | ||||||
25 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
26 | Use Tax Act, as the case may be, if the tax has not been
paid by |
| |||||||
| |||||||
1 | the lessor. If a lessor improperly collects any such amount | ||||||
2 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
3 | refund of that amount
from the lessor. If, however, that amount | ||||||
4 | is not refunded to the lessee for
any reason, the lessor is | ||||||
5 | liable to pay that amount to the Department. | ||||||
6 | (16) Personal property purchased by a lessor who leases the
| ||||||
7 | property, under
a
lease of one year or longer executed or in | ||||||
8 | effect at the time
the lessor would otherwise be subject to the | ||||||
9 | tax imposed by this Act,
to a governmental body
that has been | ||||||
10 | issued an active tax exemption identification number by the
| ||||||
11 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
12 | Act.
If the
property is leased in a manner that does not | ||||||
13 | qualify for
this exemption
or is used in any other non-exempt | ||||||
14 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
15 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
16 | fair market value of the property at the time the
| ||||||
17 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
18 | to collect an
amount (however
designated) that purports to | ||||||
19 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
20 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
21 | the lessor. If a lessor improperly collects any such amount | ||||||
22 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
23 | refund of that amount
from the lessor. If, however, that amount | ||||||
24 | is not refunded to the lessee for
any reason, the lessor is | ||||||
25 | liable to pay that amount to the Department. | ||||||
26 | (17) Beginning with taxable years ending on or after |
| |||||||
| |||||||
1 | December
31,
1995
and
ending with taxable years ending on or | ||||||
2 | before December 31, 2004,
personal property that is
donated for | ||||||
3 | disaster relief to be used in a State or federally declared
| ||||||
4 | disaster area in Illinois or bordering Illinois by a | ||||||
5 | manufacturer or retailer
that is registered in this State to a | ||||||
6 | corporation, society, association,
foundation, or institution | ||||||
7 | that has been issued a sales tax exemption
identification | ||||||
8 | number by the Department that assists victims of the disaster
| ||||||
9 | who reside within the declared disaster area. | ||||||
10 | (18) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995 and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004, personal
property that is used in the | ||||||
13 | performance of infrastructure repairs in this
State, including | ||||||
14 | but not limited to municipal roads and streets, access roads,
| ||||||
15 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
16 | line extensions,
water distribution and purification | ||||||
17 | facilities, storm water drainage and
retention facilities, and | ||||||
18 | sewage treatment facilities, resulting from a State
or | ||||||
19 | federally declared disaster in Illinois or bordering Illinois | ||||||
20 | when such
repairs are initiated on facilities located in the | ||||||
21 | declared disaster area
within 6 months after the disaster. | ||||||
22 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
23 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
24 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
25 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
26 | Department of Natural Resources. This paragraph is exempt from |
| |||||||
| |||||||
1 | the provisions
of
Section 3-75. | ||||||
2 | (20) A motor vehicle, as that term is defined in Section | ||||||
3 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
4 | corporation, limited liability
company, society, association, | ||||||
5 | foundation, or institution that is determined by
the Department | ||||||
6 | to be organized and operated exclusively for educational
| ||||||
7 | purposes. For purposes of this exemption, "a corporation, | ||||||
8 | limited liability
company, society, association, foundation, | ||||||
9 | or institution organized and
operated
exclusively for | ||||||
10 | educational purposes" means all tax-supported public schools,
| ||||||
11 | private schools that offer systematic instruction in useful | ||||||
12 | branches of
learning by methods common to public schools and | ||||||
13 | that compare favorably in
their scope and intensity with the | ||||||
14 | course of study presented in tax-supported
schools, and | ||||||
15 | vocational or technical schools or institutes organized and
| ||||||
16 | operated exclusively to provide a course of study of not less | ||||||
17 | than 6 weeks
duration and designed to prepare individuals to | ||||||
18 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
19 | industrial, business, or commercial
occupation. | ||||||
20 | (21) Beginning January 1, 2000, personal property, | ||||||
21 | including
food,
purchased through fundraising
events for the | ||||||
22 | benefit of
a public or private elementary or
secondary school, | ||||||
23 | a group of those schools, or one or more school
districts if | ||||||
24 | the events are
sponsored by an entity recognized by the school | ||||||
25 | district that consists
primarily of volunteers and includes
| ||||||
26 | parents and teachers of the school children. This paragraph |
| |||||||
| |||||||
1 | does not apply
to fundraising
events (i) for the benefit of | ||||||
2 | private home instruction or (ii)
for which the fundraising | ||||||
3 | entity purchases the personal property sold at
the events from | ||||||
4 | another individual or entity that sold the property for the
| ||||||
5 | purpose of resale by the fundraising entity and that
profits | ||||||
6 | from the sale to the
fundraising entity. This paragraph is | ||||||
7 | exempt
from the provisions
of Section 3-75. | ||||||
8 | (22) Beginning January 1, 2000
and through December 31, | ||||||
9 | 2001, new or used automatic vending
machines that prepare and | ||||||
10 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
11 | items, and replacement parts for these machines.
Beginning | ||||||
12 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
13 | for machines used in
commercial, coin-operated
amusement
and | ||||||
14 | vending business if a use or occupation tax is paid on the | ||||||
15 | gross receipts
derived from
the use of the commercial, | ||||||
16 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
17 | is exempt from the provisions of Section 3-75. | ||||||
18 | (23) Beginning August 23, 2001 and through June 30, 2011, | ||||||
19 | food for human consumption that is to be consumed off the
| ||||||
20 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
21 | drinks, and food that
has been prepared for immediate | ||||||
22 | consumption) and prescription and
nonprescription medicines, | ||||||
23 | drugs, medical appliances, and insulin, urine
testing | ||||||
24 | materials, syringes, and needles used by diabetics, for human | ||||||
25 | use, when
purchased for use by a person receiving medical | ||||||
26 | assistance under Article V of
the Illinois Public Aid Code who |
| |||||||
| |||||||
1 | resides in a licensed long-term care facility,
as defined in | ||||||
2 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
3 | in the MR/DD Community Care Act. | ||||||
4 | (24) Beginning on the effective date of this amendatory Act | ||||||
5 | of the 92nd
General Assembly, computers and communications | ||||||
6 | equipment
utilized for any hospital purpose and equipment used | ||||||
7 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
8 | purchased by a lessor who leases
the equipment, under a lease | ||||||
9 | of one year or longer executed or in effect at the
time the | ||||||
10 | lessor would otherwise be subject to the tax imposed by this | ||||||
11 | Act, to a
hospital that has been issued an active tax exemption | ||||||
12 | identification number by
the Department under Section 1g of the | ||||||
13 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
14 | manner that does not qualify for this exemption or is
used in | ||||||
15 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
16 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
17 | be, based on the
fair market value of the property at the time | ||||||
18 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
19 | attempt to collect an amount (however
designated) that purports | ||||||
20 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
21 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
22 | the lessor. If a lessor improperly collects any such amount | ||||||
23 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
24 | refund of that amount
from the lessor. If, however, that amount | ||||||
25 | is not refunded to the lessee for
any reason, the lessor is | ||||||
26 | liable to pay that amount to the Department.
This paragraph is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 3-75. | ||||||
2 | (25) Beginning
on the effective date of this amendatory Act | ||||||
3 | of the 92nd General Assembly,
personal property purchased by a | ||||||
4 | lessor
who leases the property, under a lease of one year or | ||||||
5 | longer executed or in
effect at the time the lessor would | ||||||
6 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
7 | governmental body 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 property 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 Use Tax Act,
as the case may | ||||||
13 | be, based on the fair market value of the property at the time
| ||||||
14 | the nonqualifying use occurs. No lessor shall collect or | ||||||
15 | attempt to collect
an amount (however designated) that purports | ||||||
16 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
17 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
18 | the lessor. If a lessor improperly collects any such amount
| ||||||
19 | from the lessee, the lessee shall have a legal right to claim a | ||||||
20 | refund of that
amount from the lessor. If, however, that amount | ||||||
21 | is not refunded to the lessee
for any reason, the lessor is | ||||||
22 | liable to pay that amount to the Department.
This paragraph is | ||||||
23 | exempt from the provisions of Section 3-75. | ||||||
24 | (26) Beginning January 1, 2008, tangible personal property | ||||||
25 | used in the construction or maintenance of a community water | ||||||
26 | supply, as defined under Section 3.145 of the Environmental |
| |||||||
| |||||||
1 | Protection Act, that is operated by a not-for-profit | ||||||
2 | corporation that holds a valid water supply permit issued under | ||||||
3 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
4 | exempt from the provisions of Section 3-75.
| ||||||
5 | (27) Beginning January 1, 2010, materials, parts, | ||||||
6 | equipment, components, and furnishings incorporated into or | ||||||
7 | upon an aircraft as part of the modification, refurbishment, | ||||||
8 | completion, replacement, repair, or maintenance of the | ||||||
9 | aircraft. This exemption includes consumable supplies used in | ||||||
10 | the modification, refurbishment, completion, replacement, | ||||||
11 | repair, and maintenance of aircraft, but excludes any | ||||||
12 | materials, parts, equipment, components, and consumable | ||||||
13 | supplies used in the modification, replacement, repair, and | ||||||
14 | maintenance of aircraft engines or power plants, whether such | ||||||
15 | engines or power plants are installed or uninstalled upon any | ||||||
16 | such aircraft. "Consumable supplies" include, but are not | ||||||
17 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
18 | lubricants, cleaning solution, latex gloves, and protective | ||||||
19 | films. This exemption applies only to those organizations that | ||||||
20 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
21 | an approved repair station by the Federal Aviation | ||||||
22 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
23 | operations in accordance with Part 145 of the Federal Aviation | ||||||
24 | Regulations. The exemption does not include aircraft operated | ||||||
25 | by a commercial air carrier providing scheduled passenger air | ||||||
26 | service pursuant to authority issued under Part 121 or Part 129 |
| |||||||
| |||||||
1 | of the Federal Aviation Regulations. | ||||||
2 | (28) (27) Tangible personal property purchased by a | ||||||
3 | public-facilities corporation, as described in Section | ||||||
4 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
5 | constructing or furnishing a municipal convention hall, but | ||||||
6 | only if the legal title to the municipal convention hall is | ||||||
7 | transferred to the municipality without any further | ||||||
8 | consideration by or on behalf of the municipality at the time | ||||||
9 | of the completion of the municipal convention hall or upon the | ||||||
10 | retirement or redemption of any bonds or other debt instruments | ||||||
11 | issued by the public-facilities corporation in connection with | ||||||
12 | the development of the municipal convention hall. This | ||||||
13 | exemption includes existing public-facilities corporations as | ||||||
14 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
15 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
16 | (29) Monuments or monument components purchased for the | ||||||
17 | purpose of honoring military veterans, as the term "veteran" is | ||||||
18 | defined in 10 U.S.C. 1491, if the monument or monument | ||||||
19 | component is purchased by (i) a nonprofit organization that is | ||||||
20 | exempt from
federal income taxation under Section 501(c)(3) of | ||||||
21 | the federal Internal
Revenue Code of 1986 or (ii) a veterans' | ||||||
22 | organization chartered under federal law. An exemption under | ||||||
23 | this item (29) is limited to purchases from one retailer per | ||||||
24 | monument or monument component. An exemption under this item | ||||||
25 | (29) is limited to $2,000 per monument. For the purposes of | ||||||
26 | this item (29), a monument is a structure, other than a |
| |||||||
| |||||||
1 | building, erected with the primary purpose of commemorating a | ||||||
2 | person or event. | ||||||
3 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
4 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | ||||||
5 | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; revised 9-25-09.) | ||||||
6 | Section 15. The Service Occupation Tax Act is amended by | ||||||
7 | changing Section 3-5 as follows: | ||||||
8 | (35 ILCS 115/3-5) | ||||||
9 | (Text of Section before amendment by P.A. 96-339 ) | ||||||
10 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
11 | property is
exempt from the tax imposed by this Act: | ||||||
12 | (1) Personal property sold by a corporation, society, | ||||||
13 | association,
foundation, institution, or organization, other | ||||||
14 | than a limited liability
company, that is organized and | ||||||
15 | operated as a not-for-profit service enterprise
for the benefit | ||||||
16 | of persons 65 years of age or older if the personal property
| ||||||
17 | was not purchased by the enterprise for the purpose of resale | ||||||
18 | by the
enterprise. | ||||||
19 | (2) Personal property purchased by a not-for-profit | ||||||
20 | Illinois county fair
association for use in conducting, | ||||||
21 | operating, or promoting the county fair. | ||||||
22 | (3) Personal property purchased by any not-for-profit
arts | ||||||
23 | or cultural organization that establishes, by proof required by | ||||||
24 | the
Department by
rule, that it has received an exemption under |
| |||||||
| |||||||
1 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
2 | organized and operated primarily for the
presentation
or | ||||||
3 | support of arts or cultural programming, activities, or | ||||||
4 | services. These
organizations include, but are not limited to, | ||||||
5 | music and dramatic arts
organizations such as symphony | ||||||
6 | orchestras and theatrical groups, arts and
cultural service | ||||||
7 | organizations, local arts councils, visual arts organizations,
| ||||||
8 | and media arts organizations.
On and after the effective date | ||||||
9 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
10 | an entity otherwise eligible for this exemption shall not
make | ||||||
11 | tax-free purchases unless it has an active identification | ||||||
12 | number issued by
the Department. | ||||||
13 | (4) 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 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
18 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
19 | equipment, including
repair and
replacement parts, both new and | ||||||
20 | used, and including that manufactured on
special order or | ||||||
21 | purchased for lease, certified by the purchaser to be used
| ||||||
22 | primarily for graphic arts production.
Equipment includes | ||||||
23 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
24 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
25 | immediate change
upon a graphic arts product. | ||||||
26 | (6) Personal property sold by a teacher-sponsored student |
| |||||||
| |||||||
1 | organization
affiliated with an elementary or secondary school | ||||||
2 | located in Illinois. | ||||||
3 | (7) Farm machinery and equipment, both new and used, | ||||||
4 | including that
manufactured on special order, certified by the | ||||||
5 | purchaser to be used
primarily for production agriculture or | ||||||
6 | State or federal agricultural
programs, including individual | ||||||
7 | replacement parts for the machinery and
equipment, including | ||||||
8 | machinery and equipment purchased for lease,
and including | ||||||
9 | implements of husbandry defined in Section 1-130 of
the | ||||||
10 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
11 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
12 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
13 | but
excluding other motor vehicles required to be registered | ||||||
14 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
15 | hoop houses used for propagating, growing, or
overwintering | ||||||
16 | plants shall be considered farm machinery and equipment under
| ||||||
17 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
18 | shall include units sold
separately from a motor vehicle | ||||||
19 | required to be licensed and units sold mounted
on a motor | ||||||
20 | vehicle required to be licensed if the selling price of the | ||||||
21 | tender
is separately stated. | ||||||
22 | Farm machinery and equipment shall include precision | ||||||
23 | farming equipment
that is
installed or purchased to be | ||||||
24 | installed on farm machinery and equipment
including, but not | ||||||
25 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
26 | or spreaders.
Precision farming equipment includes, but is not |
| |||||||
| |||||||
1 | limited to,
soil testing sensors, computers, monitors, | ||||||
2 | software, global positioning
and mapping systems, and other | ||||||
3 | such equipment. | ||||||
4 | Farm machinery and equipment also includes computers, | ||||||
5 | sensors, software, and
related equipment used primarily in the
| ||||||
6 | computer-assisted operation of production agriculture | ||||||
7 | facilities, equipment,
and activities such as, but
not limited | ||||||
8 | to,
the collection, monitoring, and correlation of
animal and | ||||||
9 | crop data for the purpose of
formulating animal diets and | ||||||
10 | agricultural chemicals. This item (7) is exempt
from the | ||||||
11 | provisions of
Section 3-55. | ||||||
12 | (8) Fuel and petroleum products sold to or used by an air | ||||||
13 | common
carrier, certified by the carrier to be used for | ||||||
14 | consumption, shipment,
or storage in the conduct of its | ||||||
15 | business as an air common carrier, for
a flight destined for or | ||||||
16 | returning from a location or locations
outside the United | ||||||
17 | States without regard to previous or subsequent domestic
| ||||||
18 | stopovers. | ||||||
19 | (9) Proceeds of mandatory service charges separately
| ||||||
20 | stated on customers' bills for the purchase and consumption of | ||||||
21 | food and
beverages, to the extent that the proceeds of the | ||||||
22 | service charge are in fact
turned over as tips or as a | ||||||
23 | substitute for tips to the employees who
participate directly | ||||||
24 | in preparing, serving, hosting or cleaning up the
food or | ||||||
25 | beverage function with respect to which the service charge is | ||||||
26 | imposed. |
| |||||||
| |||||||
1 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
2 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
3 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
4 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
5 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
6 | individual replacement part for oil field exploration,
| ||||||
7 | drilling, and production equipment, and (vi) machinery and | ||||||
8 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
9 | required to be registered under the Illinois
Vehicle Code. | ||||||
10 | (11) Photoprocessing machinery and equipment, including | ||||||
11 | repair and
replacement parts, both new and used, including that | ||||||
12 | manufactured on
special order, certified by the purchaser to be | ||||||
13 | used primarily for
photoprocessing, and including | ||||||
14 | photoprocessing machinery and equipment
purchased for lease. | ||||||
15 | (12) Until July 1, 2003, and beginning again on the | ||||||
16 | effective date of this amendatory Act of the 96th General | ||||||
17 | Assembly and thereafter, coal and aggregate exploration, | ||||||
18 | mining, offhighway hauling,
processing,
maintenance, and | ||||||
19 | reclamation equipment, including
replacement parts and | ||||||
20 | equipment, and including
equipment
purchased for lease, but | ||||||
21 | excluding motor vehicles required to be registered
under the | ||||||
22 | Illinois Vehicle Code. This item (12) is not subject to the | ||||||
23 | provisions of Section 3-55. | ||||||
24 | (13) Beginning January 1, 1992 and through June 30, 2011, | ||||||
25 | food for human consumption that is to be consumed off the | ||||||
26 | premises
where it is sold (other than alcoholic beverages, soft |
| |||||||
| |||||||
1 | drinks and food that
has been prepared for immediate | ||||||
2 | consumption) and prescription and
non-prescription medicines, | ||||||
3 | drugs, medical appliances, and insulin, urine
testing | ||||||
4 | materials, syringes, and needles used by diabetics, for human | ||||||
5 | use,
when purchased for use by a person receiving medical | ||||||
6 | assistance under
Article 5 of the Illinois Public Aid Code who | ||||||
7 | resides in a licensed
long-term care facility, as defined in | ||||||
8 | the Nursing Home Care Act. | ||||||
9 | (14) Semen used for artificial insemination of livestock | ||||||
10 | for direct
agricultural production. | ||||||
11 | (15) Horses, or interests in horses, registered with and | ||||||
12 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
13 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
14 | Horse Association, United States
Trotting Association, or | ||||||
15 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
16 | racing for prizes. This item (15) is exempt from the provisions | ||||||
17 | of Section 3-55, and the exemption provided for under this item | ||||||
18 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
19 | claim for credit or refund is allowed on or after January 1, | ||||||
20 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
21 | paid during the period beginning May 30, 2000 and ending on | ||||||
22 | January 1, 2008 (the effective date of Public Act 95-88). | ||||||
23 | (16) Computers and communications equipment utilized for | ||||||
24 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
25 | analysis, or treatment of hospital patients sold to a lessor | ||||||
26 | who leases the
equipment, under a lease of one year or longer |
| |||||||
| |||||||
1 | executed or in effect at the
time of the purchase, to a
| ||||||
2 | 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. | ||||||
5 | (17) Personal property sold to a lessor who leases the
| ||||||
6 | property, under a
lease of one year or longer executed or in | ||||||
7 | effect at the time of the purchase,
to a governmental body
that | ||||||
8 | has been issued an active tax exemption identification number | ||||||
9 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
10 | Tax Act. | ||||||
11 | (18) Beginning with taxable years ending on or after | ||||||
12 | December
31, 1995
and
ending with taxable years ending on or | ||||||
13 | before December 31, 2004,
personal property that is
donated for | ||||||
14 | disaster relief to be used in a State or federally declared
| ||||||
15 | disaster area in Illinois or bordering Illinois by a | ||||||
16 | manufacturer or retailer
that is registered in this State to a | ||||||
17 | corporation, society, association,
foundation, or institution | ||||||
18 | that has been issued a sales tax exemption
identification | ||||||
19 | number by the Department that assists victims of the disaster
| ||||||
20 | who reside within the declared disaster area. | ||||||
21 | (19) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995 and
ending with taxable years ending on or | ||||||
23 | before December 31, 2004, personal
property that is used in the | ||||||
24 | performance of infrastructure repairs in this
State, including | ||||||
25 | but not limited to municipal roads and streets, access roads,
| ||||||
26 | bridges, sidewalks, waste disposal systems, water and sewer |
| |||||||
| |||||||
1 | line extensions,
water distribution and purification | ||||||
2 | facilities, storm water drainage and
retention facilities, and | ||||||
3 | sewage treatment facilities, resulting from a State
or | ||||||
4 | federally declared disaster in Illinois or bordering Illinois | ||||||
5 | when such
repairs are initiated on facilities located in the | ||||||
6 | declared disaster area
within 6 months after the disaster. | ||||||
7 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
8 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
9 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
10 | at a hunting enclosure approved through rules adopted by the
| ||||||
11 | Department of Natural Resources. This paragraph is exempt from | ||||||
12 | the provisions
of
Section 3-55. | ||||||
13 | (21) A motor vehicle, as that term is defined in Section | ||||||
14 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
15 | corporation, limited liability
company, society, association, | ||||||
16 | foundation, or institution that is determined by
the Department | ||||||
17 | to be organized and operated exclusively for educational
| ||||||
18 | purposes. For purposes of this exemption, "a corporation, | ||||||
19 | limited liability
company, society, association, foundation, | ||||||
20 | or institution organized and
operated
exclusively for | ||||||
21 | educational purposes" means all tax-supported public schools,
| ||||||
22 | private schools that offer systematic instruction in useful | ||||||
23 | branches of
learning by methods common to public schools and | ||||||
24 | that compare favorably in
their scope and intensity with the | ||||||
25 | course of study presented in tax-supported
schools, and | ||||||
26 | vocational or technical schools or institutes organized and
|
| |||||||
| |||||||
1 | operated exclusively to provide a course of study of not less | ||||||
2 | than 6 weeks
duration and designed to prepare individuals to | ||||||
3 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
4 | industrial, business, or commercial
occupation. | ||||||
5 | (22) Beginning January 1, 2000, personal property, | ||||||
6 | including
food,
purchased through fundraising
events for the | ||||||
7 | benefit of
a public or private elementary or
secondary school, | ||||||
8 | a group of those schools, or one or more school
districts if | ||||||
9 | the events are
sponsored by an entity recognized by the school | ||||||
10 | district that consists
primarily of volunteers and includes
| ||||||
11 | parents and teachers of the school children. This paragraph | ||||||
12 | does not apply
to fundraising
events (i) for the benefit of | ||||||
13 | private home instruction or (ii)
for which the fundraising | ||||||
14 | entity purchases the personal property sold at
the events from | ||||||
15 | another individual or entity that sold the property for the
| ||||||
16 | purpose of resale by the fundraising entity and that
profits | ||||||
17 | from the sale to the
fundraising entity. This paragraph is | ||||||
18 | exempt
from the provisions
of Section 3-55. | ||||||
19 | (23) Beginning January 1, 2000
and through December 31, | ||||||
20 | 2001, new or used automatic vending
machines that prepare and | ||||||
21 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
22 | items, and replacement parts for these machines.
Beginning | ||||||
23 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
24 | for
machines used in commercial, coin-operated amusement
and | ||||||
25 | vending business if a use or occupation tax is paid on the | ||||||
26 | gross receipts
derived from
the use of the commercial, |
| |||||||
| |||||||
1 | coin-operated amusement and vending machines.
This paragraph | ||||||
2 | is exempt from the provisions of Section 3-55. | ||||||
3 | (24) Beginning
on the effective date of this amendatory Act | ||||||
4 | of the 92nd General Assembly,
computers and communications | ||||||
5 | equipment
utilized for any hospital purpose and equipment used | ||||||
6 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
7 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
8 | year or longer executed or in effect at the
time of the | ||||||
9 | purchase, to a hospital that has been issued an active tax
| ||||||
10 | exemption identification number by the Department under | ||||||
11 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
12 | is exempt from the provisions of
Section 3-55. | ||||||
13 | (25) Beginning
on the effective date of this amendatory Act | ||||||
14 | of the 92nd General Assembly,
personal property sold to a | ||||||
15 | lessor who
leases the property, under a lease of one year or | ||||||
16 | longer executed or in effect
at the time of the purchase, to a | ||||||
17 | governmental body that has been issued an
active tax exemption | ||||||
18 | identification number by the Department under Section 1g
of the | ||||||
19 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
20 | the
provisions of Section 3-55. | ||||||
21 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
22 | 2011, tangible personal property
purchased
from an Illinois | ||||||
23 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
24 | activities in Illinois who will, upon receipt of the property | ||||||
25 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
26 | the purpose of subsequently
transporting it outside this State |
| |||||||
| |||||||
1 | for use or consumption thereafter solely
outside this State or | ||||||
2 | (ii) for the purpose of being processed, fabricated, or
| ||||||
3 | manufactured into, attached to, or incorporated into other | ||||||
4 | tangible personal
property to be transported outside this State | ||||||
5 | and thereafter used or consumed
solely outside this State. The | ||||||
6 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
7 | accordance with the Illinois Administrative Procedure Act, | ||||||
8 | issue a
permit to any taxpayer in good standing with the | ||||||
9 | Department who is eligible for
the exemption under this | ||||||
10 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
11 | shall authorize the holder, to the extent and
in the manner | ||||||
12 | specified in the rules adopted under this Act, to purchase
| ||||||
13 | tangible personal property from a retailer exempt from the | ||||||
14 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
15 | necessary books and records to
substantiate the use and | ||||||
16 | consumption of all such tangible personal property
outside of | ||||||
17 | the State of Illinois. | ||||||
18 | (27) Beginning January 1, 2008, tangible personal property | ||||||
19 | used in the construction or maintenance of a community water | ||||||
20 | supply, as defined under Section 3.145 of the Environmental | ||||||
21 | Protection Act, that is operated by a not-for-profit | ||||||
22 | corporation that holds a valid water supply permit issued under | ||||||
23 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
24 | exempt from the provisions of Section 3-55.
| ||||||
25 | (28) Tangible personal property sold to a | ||||||
26 | public-facilities corporation, as described in Section |
| |||||||
| |||||||
1 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
2 | constructing or furnishing a municipal convention hall, but | ||||||
3 | only if the legal title to the municipal convention hall is | ||||||
4 | transferred to the municipality without any further | ||||||
5 | consideration by or on behalf of the municipality at the time | ||||||
6 | of the completion of the municipal convention hall or upon the | ||||||
7 | retirement or redemption of any bonds or other debt instruments | ||||||
8 | issued by the public-facilities corporation in connection with | ||||||
9 | the development of the municipal convention hall. This | ||||||
10 | exemption includes existing public-facilities corporations as | ||||||
11 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
12 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
13 | (29) (28) Beginning January 1, 2010, materials, parts, | ||||||
14 | equipment, components, and furnishings incorporated into or | ||||||
15 | upon an aircraft as part of the modification, refurbishment, | ||||||
16 | completion, replacement, repair, or maintenance of the | ||||||
17 | aircraft. This exemption includes consumable supplies used in | ||||||
18 | the modification, refurbishment, completion, replacement, | ||||||
19 | repair, and maintenance of aircraft, but excludes any | ||||||
20 | materials, parts, equipment, components, and consumable | ||||||
21 | supplies used in the modification, replacement, repair, and | ||||||
22 | maintenance of aircraft engines or power plants, whether such | ||||||
23 | engines or power plants are installed or uninstalled upon any | ||||||
24 | such aircraft. "Consumable supplies" include, but are not | ||||||
25 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
26 | lubricants, cleaning solution, latex gloves, and protective |
| |||||||
| |||||||
1 | films. This exemption applies only to those organizations that | ||||||
2 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
3 | an approved repair station by the Federal Aviation | ||||||
4 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
5 | operations in accordance with Part 145 of the Federal Aviation | ||||||
6 | Regulations. The exemption does not include aircraft operated | ||||||
7 | by a commercial air carrier providing scheduled passenger air | ||||||
8 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
9 | of the Federal Aviation Regulations. | ||||||
10 | (30) Monuments or monument components purchased for the | ||||||
11 | purpose of honoring military veterans, as the term "veteran" is | ||||||
12 | defined in 10 U.S.C. 1491, if the monument or monument | ||||||
13 | component is purchased by (i) a nonprofit organization that is | ||||||
14 | exempt from
federal income taxation under Section 501(c)(3) of | ||||||
15 | the federal Internal
Revenue Code of 1986 or (ii) a veterans' | ||||||
16 | organization chartered under federal law. An exemption under | ||||||
17 | this item (30) is limited to purchases from one retailer per | ||||||
18 | monument or monument component. An exemption under this item | ||||||
19 | (30) is limited to $2,000 per monument. For the purposes of | ||||||
20 | this item (30), a monument is a structure, other than a | ||||||
21 | building, erected with the primary purpose of commemorating a | ||||||
22 | person or event. | ||||||
23 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
24 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-532, eff. 8-14-09; | ||||||
25 | 96-759, eff. 1-1-10; revised 9-25-09.) |
| |||||||
| |||||||
1 | (Text of Section after amendment by P.A. 96-339 ) | ||||||
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, | ||||||
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 sold by a teacher-sponsored student | ||||||
17 | organization
affiliated with an elementary or secondary school | ||||||
18 | 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 3-55. | ||||||
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, to the extent that the proceeds of the | ||||||
12 | service charge are in fact
turned over as tips or as a | ||||||
13 | substitute for tips to the employees who
participate directly | ||||||
14 | in preparing, serving, hosting or cleaning up the
food or | ||||||
15 | beverage function with respect to which the service charge is | ||||||
16 | imposed. | ||||||
17 | (10) 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 | (11) Photoprocessing machinery and equipment, including |
| |||||||
| |||||||
1 | repair and
replacement parts, both new and used, including that | ||||||
2 | manufactured on
special order, certified by the purchaser to be | ||||||
3 | used primarily for
photoprocessing, and including | ||||||
4 | photoprocessing machinery and equipment
purchased for lease. | ||||||
5 | (12) Until July 1, 2003, and beginning again on the | ||||||
6 | effective date of this amendatory Act of the 96th General | ||||||
7 | Assembly and thereafter, coal and aggregate exploration, | ||||||
8 | mining, offhighway hauling,
processing,
maintenance, and | ||||||
9 | reclamation equipment, including
replacement parts and | ||||||
10 | equipment, and including
equipment
purchased for lease, but | ||||||
11 | excluding motor vehicles required to be registered
under the | ||||||
12 | Illinois Vehicle Code. This item (12) is not subject to the | ||||||
13 | provisions of Section 3-55. | ||||||
14 | (13) Beginning January 1, 1992 and through June 30, 2011, | ||||||
15 | food for human consumption that is to be consumed off the | ||||||
16 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
17 | drinks and food that
has been prepared for immediate | ||||||
18 | consumption) and prescription and
non-prescription medicines, | ||||||
19 | drugs, medical appliances, and insulin, urine
testing | ||||||
20 | materials, syringes, and needles used by diabetics, for human | ||||||
21 | use,
when purchased for use by a person receiving medical | ||||||
22 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
23 | resides in a licensed
long-term care facility, as defined in | ||||||
24 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
25 | in the MR/DD Community Care Act. | ||||||
26 | (14) Semen used for artificial insemination of livestock |
| |||||||
| |||||||
1 | for direct
agricultural production. | ||||||
2 | (15) Horses, or interests in horses, registered with and | ||||||
3 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
4 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
5 | Horse Association, United States
Trotting Association, or | ||||||
6 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
7 | racing for prizes. This item (15) is exempt from the provisions | ||||||
8 | of Section 3-55, and the exemption provided for under this item | ||||||
9 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
10 | claim for credit or refund is allowed on or after January 1, | ||||||
11 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
12 | paid during the period beginning May 30, 2000 and ending on | ||||||
13 | January 1, 2008 (the effective date of Public Act 95-88). | ||||||
14 | (16) Computers and communications equipment utilized for | ||||||
15 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
16 | analysis, or treatment of hospital patients sold to a lessor | ||||||
17 | who leases the
equipment, under a lease of one year or longer | ||||||
18 | executed or in effect at the
time of the purchase, to a
| ||||||
19 | hospital
that has been issued an active tax exemption | ||||||
20 | identification number by the
Department under Section 1g of the | ||||||
21 | Retailers' Occupation Tax Act. | ||||||
22 | (17) Personal property sold to a lessor who leases the
| ||||||
23 | property, under a
lease of one year or longer executed or in | ||||||
24 | effect at the time of the purchase,
to a governmental body
that | ||||||
25 | has been issued an active tax exemption identification number | ||||||
26 | by the
Department under Section 1g of the Retailers' Occupation |
| |||||||
| |||||||
1 | Tax Act. | ||||||
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
donated for | ||||||
5 | disaster relief to be used in a State or federally declared
| ||||||
6 | disaster area in Illinois or bordering Illinois by a | ||||||
7 | manufacturer or retailer
that is registered in this State to a | ||||||
8 | corporation, society, association,
foundation, or institution | ||||||
9 | that has been issued a sales tax exemption
identification | ||||||
10 | number by the Department that assists victims of the disaster
| ||||||
11 | who reside within the declared disaster area. | ||||||
12 | (19) Beginning with taxable years ending on or after | ||||||
13 | December
31, 1995 and
ending with taxable years ending on or | ||||||
14 | before December 31, 2004, personal
property that is used in the | ||||||
15 | performance of infrastructure repairs in this
State, including | ||||||
16 | but not limited to municipal roads and streets, access roads,
| ||||||
17 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
18 | line extensions,
water distribution and purification | ||||||
19 | facilities, storm water drainage and
retention facilities, and | ||||||
20 | sewage treatment facilities, resulting from a State
or | ||||||
21 | federally declared disaster in Illinois or bordering Illinois | ||||||
22 | when such
repairs are initiated on facilities located in the | ||||||
23 | declared disaster area
within 6 months after the disaster. | ||||||
24 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
25 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
26 | hunting area" as those terms are used
in the
Wildlife Code or |
| |||||||
| |||||||
1 | at a hunting enclosure approved through rules adopted by the
| ||||||
2 | Department of Natural Resources. This paragraph is exempt from | ||||||
3 | the provisions
of
Section 3-55. | ||||||
4 | (21) A motor vehicle, as that term is defined in Section | ||||||
5 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
6 | corporation, limited liability
company, society, association, | ||||||
7 | foundation, or institution that is determined by
the Department | ||||||
8 | to be organized and operated exclusively for educational
| ||||||
9 | purposes. For purposes of this exemption, "a corporation, | ||||||
10 | limited liability
company, society, association, foundation, | ||||||
11 | or institution organized and
operated
exclusively for | ||||||
12 | educational purposes" means all tax-supported public schools,
| ||||||
13 | private schools that offer systematic instruction in useful | ||||||
14 | branches of
learning by methods common to public schools and | ||||||
15 | that compare favorably in
their scope and intensity with the | ||||||
16 | course of study presented in tax-supported
schools, and | ||||||
17 | vocational or technical schools or institutes organized and
| ||||||
18 | operated exclusively to provide a course of study of not less | ||||||
19 | than 6 weeks
duration and designed to prepare individuals to | ||||||
20 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
21 | industrial, business, or commercial
occupation. | ||||||
22 | (22) Beginning January 1, 2000, personal property, | ||||||
23 | including
food,
purchased through fundraising
events for the | ||||||
24 | benefit of
a public or private elementary or
secondary school, | ||||||
25 | a group of those schools, or one or more school
districts if | ||||||
26 | the events are
sponsored by an entity recognized by the school |
| |||||||
| |||||||
1 | district that consists
primarily of volunteers and includes
| ||||||
2 | parents and teachers of the school children. This paragraph | ||||||
3 | does not apply
to fundraising
events (i) for the benefit of | ||||||
4 | private home instruction or (ii)
for which the fundraising | ||||||
5 | entity purchases the personal property sold at
the events from | ||||||
6 | another individual or entity that sold the property for the
| ||||||
7 | purpose of resale by the fundraising entity and that
profits | ||||||
8 | from the sale to the
fundraising entity. This paragraph is | ||||||
9 | exempt
from the provisions
of Section 3-55. | ||||||
10 | (23) Beginning January 1, 2000
and through December 31, | ||||||
11 | 2001, new or used automatic vending
machines that prepare and | ||||||
12 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
13 | items, and replacement parts for these machines.
Beginning | ||||||
14 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
15 | for
machines used in commercial, coin-operated amusement
and | ||||||
16 | vending business if a use or occupation tax is paid on the | ||||||
17 | gross receipts
derived from
the use of the commercial, | ||||||
18 | coin-operated amusement and vending machines.
This paragraph | ||||||
19 | is exempt from the provisions of Section 3-55. | ||||||
20 | (24) Beginning
on the effective date of this amendatory Act | ||||||
21 | of the 92nd General Assembly,
computers and communications | ||||||
22 | equipment
utilized for any hospital purpose and equipment used | ||||||
23 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
24 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
25 | year or longer executed or in effect at the
time of the | ||||||
26 | purchase, to a hospital that has been issued an active tax
|
| |||||||
| |||||||
1 | exemption identification number by the Department under | ||||||
2 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
3 | is exempt from the provisions of
Section 3-55. | ||||||
4 | (25) Beginning
on the effective date of this amendatory Act | ||||||
5 | of the 92nd General Assembly,
personal property sold to a | ||||||
6 | lessor who
leases the property, under a lease of one year or | ||||||
7 | longer executed or in effect
at the time of the purchase, to a | ||||||
8 | governmental body that has been issued an
active tax exemption | ||||||
9 | identification number by the Department under Section 1g
of the | ||||||
10 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
11 | the
provisions of Section 3-55. | ||||||
12 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
13 | 2011, tangible personal property
purchased
from an Illinois | ||||||
14 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
15 | activities in Illinois who will, upon receipt of the property | ||||||
16 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
17 | the purpose of subsequently
transporting it outside this State | ||||||
18 | for use or consumption thereafter solely
outside this State or | ||||||
19 | (ii) for the purpose of being processed, fabricated, or
| ||||||
20 | manufactured into, attached to, or incorporated into other | ||||||
21 | tangible personal
property to be transported outside this State | ||||||
22 | and thereafter used or consumed
solely outside this State. The | ||||||
23 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
24 | accordance with the Illinois Administrative Procedure Act, | ||||||
25 | issue a
permit to any taxpayer in good standing with the | ||||||
26 | Department who is eligible for
the exemption under this |
| |||||||
| |||||||
1 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
2 | shall authorize the holder, to the extent and
in the manner | ||||||
3 | specified in the rules adopted under this Act, to purchase
| ||||||
4 | tangible personal property from a retailer exempt from the | ||||||
5 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
6 | necessary books and records to
substantiate the use and | ||||||
7 | consumption of all such tangible personal property
outside of | ||||||
8 | the State of Illinois. | ||||||
9 | (27) Beginning January 1, 2008, tangible personal property | ||||||
10 | used in the construction or maintenance of a community water | ||||||
11 | supply, as defined under Section 3.145 of the Environmental | ||||||
12 | Protection Act, that is operated by a not-for-profit | ||||||
13 | corporation that holds a valid water supply permit issued under | ||||||
14 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
15 | exempt from the provisions of Section 3-55.
| ||||||
16 | (28) Tangible personal property sold to a | ||||||
17 | public-facilities corporation, as described in Section | ||||||
18 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
19 | constructing or furnishing a municipal convention hall, but | ||||||
20 | only if the legal title to the municipal convention hall is | ||||||
21 | transferred to the municipality without any further | ||||||
22 | consideration by or on behalf of the municipality at the time | ||||||
23 | of the completion of the municipal convention hall or upon the | ||||||
24 | retirement or redemption of any bonds or other debt instruments | ||||||
25 | issued by the public-facilities corporation in connection with | ||||||
26 | the development of the municipal convention hall. This |
| |||||||
| |||||||
1 | exemption includes existing public-facilities corporations as | ||||||
2 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
3 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
4 | (29) (28) Beginning January 1, 2010, materials, parts, | ||||||
5 | equipment, components, and furnishings incorporated into or | ||||||
6 | upon an aircraft as part of the modification, refurbishment, | ||||||
7 | completion, replacement, repair, or maintenance of the | ||||||
8 | aircraft. This exemption includes consumable supplies used in | ||||||
9 | the modification, refurbishment, completion, replacement, | ||||||
10 | repair, and maintenance of aircraft, but excludes any | ||||||
11 | materials, parts, equipment, components, and consumable | ||||||
12 | supplies used in the modification, replacement, repair, and | ||||||
13 | maintenance of aircraft engines or power plants, whether such | ||||||
14 | engines or power plants are installed or uninstalled upon any | ||||||
15 | such aircraft. "Consumable supplies" include, but are not | ||||||
16 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
17 | lubricants, cleaning solution, latex gloves, and protective | ||||||
18 | films. This exemption applies only to those organizations that | ||||||
19 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
20 | an approved repair station by the Federal Aviation | ||||||
21 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
22 | operations in accordance with Part 145 of the Federal Aviation | ||||||
23 | Regulations. The exemption does not include aircraft operated | ||||||
24 | by a commercial air carrier providing scheduled passenger air | ||||||
25 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
26 | of the Federal Aviation Regulations. |
| |||||||
| |||||||
1 | (30) Monuments or monument components purchased for the | ||||||
2 | purpose of honoring military veterans, as the term "veteran" is | ||||||
3 | defined in 10 U.S.C. 1491, if the monument or monument | ||||||
4 | component is purchased by (i) a nonprofit organization that is | ||||||
5 | exempt from
federal income taxation under Section 501(c)(3) of | ||||||
6 | the federal Internal
Revenue Code of 1986 or (ii) a veterans' | ||||||
7 | organization chartered under federal law. An exemption under | ||||||
8 | this item (30) is limited to purchases from one retailer per | ||||||
9 | monument or monument component. An exemption under this item | ||||||
10 | (30) is limited to $2,000 per monument. For the purposes of | ||||||
11 | this item (30), a monument is a structure, other than a | ||||||
12 | building, erected with the primary purpose of commemorating a | ||||||
13 | person or event. | ||||||
14 | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | ||||||
15 | eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | ||||||
16 | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; revised 9-25-09.) | ||||||
17 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
18 | changing Section 2-5 as follows: | ||||||
19 | (35 ILCS 120/2-5) | ||||||
20 | (Text of Section before amendment by P.A. 96-339 ) | ||||||
21 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
22 | sale of
the following tangible personal property are exempt | ||||||
23 | from the tax imposed
by this Act: | ||||||
24 | (1) Farm chemicals. |
| |||||||
| |||||||
1 | (2) Farm machinery and equipment, both new and used, | ||||||
2 | including that
manufactured on special order, certified by the | ||||||
3 | purchaser to be used
primarily for production agriculture or | ||||||
4 | State or federal agricultural
programs, including individual | ||||||
5 | replacement parts for the machinery and
equipment, including | ||||||
6 | machinery and equipment purchased for lease,
and including | ||||||
7 | implements of husbandry defined in Section 1-130 of
the | ||||||
8 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
9 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
10 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
11 | but
excluding other motor vehicles required to be registered | ||||||
12 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
13 | hoop houses used for propagating, growing, or
overwintering | ||||||
14 | plants shall be considered farm machinery and equipment under
| ||||||
15 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
16 | shall include units sold
separately from a motor vehicle | ||||||
17 | required to be licensed and units sold mounted
on a motor | ||||||
18 | vehicle required to be licensed, if the selling price of the | ||||||
19 | tender
is separately stated. | ||||||
20 | Farm machinery and equipment shall include precision | ||||||
21 | farming equipment
that is
installed or purchased to be | ||||||
22 | installed on farm machinery and equipment
including, but not | ||||||
23 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
24 | or spreaders.
Precision farming equipment includes, but is not | ||||||
25 | limited to,
soil testing sensors, computers, monitors, | ||||||
26 | software, global positioning
and mapping systems, and other |
| |||||||
| |||||||
1 | such equipment. | ||||||
2 | Farm machinery and equipment also includes computers, | ||||||
3 | sensors, software, and
related equipment used primarily in the
| ||||||
4 | computer-assisted operation of production agriculture | ||||||
5 | facilities, equipment,
and activities such as, but
not limited | ||||||
6 | to,
the collection, monitoring, and correlation of
animal and | ||||||
7 | crop data for the purpose of
formulating animal diets and | ||||||
8 | agricultural chemicals. This item (7) is exempt
from the | ||||||
9 | provisions of
Section 2-70. | ||||||
10 | (3) Until July 1, 2003, distillation machinery and | ||||||
11 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
12 | retailer, certified by the user to be used
only for the | ||||||
13 | production of ethyl alcohol that will be used for consumption
| ||||||
14 | as motor fuel or as a component of motor fuel for the personal | ||||||
15 | use of the
user, and not subject to sale or resale. | ||||||
16 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
17 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
18 | equipment, including
repair and
replacement parts, both new and | ||||||
19 | used, and including that manufactured on
special order or | ||||||
20 | purchased for lease, certified by the purchaser to be used
| ||||||
21 | primarily for graphic arts production.
Equipment includes | ||||||
22 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
23 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
24 | immediate
change upon a
graphic arts product. | ||||||
25 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
26 | of the second division that is a self contained motor vehicle |
| |||||||
| |||||||
1 | designed or permanently converted to provide living quarters | ||||||
2 | for recreational, camping, or travel use, with direct walk | ||||||
3 | through access to the living quarters from the driver's seat, | ||||||
4 | or a motor vehicle of the second division that is of the van | ||||||
5 | configuration designed for the transportation of not less than | ||||||
6 | 7 nor more than 16 passengers, as defined in Section 1-146 of | ||||||
7 | the Illinois Vehicle Code, that is used for automobile renting, | ||||||
8 | as defined in the Automobile Renting Occupation and Use Tax | ||||||
9 | Act. This paragraph is exempt from
the provisions of Section | ||||||
10 | 2-70. | ||||||
11 | (6) Personal property sold by a teacher-sponsored student | ||||||
12 | organization
affiliated with an elementary or secondary school | ||||||
13 | located in Illinois. | ||||||
14 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
15 | selling price of
a passenger car the
sale of which is subject | ||||||
16 | to the Replacement Vehicle Tax. | ||||||
17 | (8) Personal property sold to an Illinois county fair | ||||||
18 | association for
use in conducting, operating, or promoting the | ||||||
19 | county fair. | ||||||
20 | (9) Personal property sold to a not-for-profit arts
or | ||||||
21 | cultural organization that establishes, by proof required by | ||||||
22 | the Department
by
rule, that it has received an exemption under | ||||||
23 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
24 | organized and operated primarily for the
presentation
or | ||||||
25 | support of arts or cultural programming, activities, or | ||||||
26 | services. These
organizations include, but are not limited to, |
| |||||||
| |||||||
1 | music and dramatic arts
organizations such as symphony | ||||||
2 | orchestras and theatrical groups, arts and
cultural service | ||||||
3 | organizations, local arts councils, visual arts organizations,
| ||||||
4 | and media arts organizations.
On and after the effective date | ||||||
5 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
6 | an entity otherwise eligible for this exemption shall not
make | ||||||
7 | tax-free purchases unless it has an active identification | ||||||
8 | number issued by
the Department. | ||||||
9 | (10) Personal property sold by a corporation, society, | ||||||
10 | association,
foundation, institution, or organization, other | ||||||
11 | than a limited liability
company, that is organized and | ||||||
12 | operated as a not-for-profit service enterprise
for the benefit | ||||||
13 | of persons 65 years of age or older if the personal property
| ||||||
14 | was not purchased by the enterprise for the purpose of resale | ||||||
15 | by the
enterprise. | ||||||
16 | (11) Personal property sold to a governmental body, to a | ||||||
17 | corporation,
society, association, foundation, or institution | ||||||
18 | organized and operated
exclusively for charitable, religious, | ||||||
19 | or educational purposes, or to a
not-for-profit corporation, | ||||||
20 | society, association, foundation, institution,
or organization | ||||||
21 | that has no compensated officers or employees and that is
| ||||||
22 | organized and operated primarily for the recreation of persons | ||||||
23 | 55 years of
age or older. A limited liability company may | ||||||
24 | qualify for the exemption under
this paragraph only if the | ||||||
25 | limited liability company is organized and operated
| ||||||
26 | exclusively for educational purposes. On and after July 1, |
| |||||||
| |||||||
1 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
2 | shall make tax-free purchases
unless it has an active | ||||||
3 | identification number issued by the Department. | ||||||
4 | (12) Tangible personal property sold to
interstate | ||||||
5 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
6 | commerce or to lessors under leases of
one year or longer | ||||||
7 | executed or in effect at the time of purchase by
interstate | ||||||
8 | carriers for hire for use as rolling stock moving in interstate
| ||||||
9 | commerce and equipment operated by a telecommunications | ||||||
10 | provider, licensed as a
common carrier by the Federal | ||||||
11 | Communications Commission, which is permanently
installed in | ||||||
12 | or affixed to aircraft moving in interstate commerce. | ||||||
13 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
14 | motor vehicles of the second division
with a gross vehicle | ||||||
15 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
16 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
17 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
18 | through June 30, 2005, the use in this State of motor vehicles | ||||||
19 | of the second division: (i) with a gross vehicle weight rating | ||||||
20 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
21 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
22 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
23 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
24 | applies to repair and replacement parts added
after the
initial | ||||||
25 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
26 | in a
manner that
would qualify for the rolling stock exemption |
| |||||||
| |||||||
1 | otherwise provided for in this
Act. For purposes of this | ||||||
2 | paragraph, "used for commercial purposes" means the | ||||||
3 | transportation of persons or property in furtherance of any | ||||||
4 | commercial or industrial enterprise whether for-hire or not.
| ||||||
5 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
6 | tangible personal property that is utilized by interstate | ||||||
7 | carriers for
hire for use as rolling stock moving in interstate | ||||||
8 | commerce
and equipment operated by a telecommunications | ||||||
9 | provider, licensed as a
common carrier by the Federal | ||||||
10 | Communications Commission, which is
permanently installed in | ||||||
11 | or affixed to aircraft moving in interstate commerce. | ||||||
12 | (14) Machinery and equipment that will be used by the | ||||||
13 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
14 | process of manufacturing or
assembling tangible personal | ||||||
15 | property for wholesale or retail sale or
lease, whether the | ||||||
16 | sale or lease is made directly by the manufacturer or by
some | ||||||
17 | other person, whether the materials used in the process are | ||||||
18 | owned by
the manufacturer or some other person, or whether the | ||||||
19 | sale or lease is made
apart from or as an incident to the | ||||||
20 | seller's engaging in the service
occupation of producing | ||||||
21 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
22 | items of no commercial value on special order for a particular
| ||||||
23 | purchaser. | ||||||
24 | (15) Proceeds of mandatory service charges separately | ||||||
25 | stated on
customers' bills for purchase and consumption of food | ||||||
26 | and beverages, to the
extent that the proceeds of the service |
| |||||||
| |||||||
1 | charge are in fact turned over as
tips or as a substitute for | ||||||
2 | tips to the employees who participate directly
in preparing, | ||||||
3 | serving, hosting or cleaning up the food or beverage function
| ||||||
4 | with respect to which the service charge is imposed. | ||||||
5 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
6 | is prohibited by federal law from charging tax to the | ||||||
7 | purchaser. | ||||||
8 | (17) Tangible personal property sold to a common carrier by | ||||||
9 | rail or
motor that
receives the physical possession of the | ||||||
10 | property in Illinois and that
transports the property, or | ||||||
11 | shares with another common carrier in the
transportation of the | ||||||
12 | property, out of Illinois on a standard uniform bill
of lading | ||||||
13 | showing the seller of the property as the shipper or consignor | ||||||
14 | of
the property to a destination outside Illinois, for use | ||||||
15 | outside Illinois. | ||||||
16 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
17 | coinage
issued by the State of Illinois, the government of the | ||||||
18 | United States of
America, or the government of any foreign | ||||||
19 | country, and bullion. | ||||||
20 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
21 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
22 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
23 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
24 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
25 | individual replacement part for oil field exploration,
| ||||||
26 | drilling, and production equipment, and (vi) machinery and |
| |||||||
| |||||||
1 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
2 | required to be registered under the Illinois
Vehicle Code. | ||||||
3 | (20) Photoprocessing machinery and equipment, including | ||||||
4 | repair and
replacement parts, both new and used, including that | ||||||
5 | manufactured on
special order, certified by the purchaser to be | ||||||
6 | used primarily for
photoprocessing, and including | ||||||
7 | photoprocessing machinery and equipment
purchased for lease. | ||||||
8 | (21) Until July 1, 2003, and beginning again on the | ||||||
9 | effective date of this amendatory Act of the 96th General | ||||||
10 | Assembly and thereafter, coal and aggregate exploration, | ||||||
11 | mining, offhighway hauling,
processing,
maintenance, and | ||||||
12 | reclamation equipment, including
replacement parts and | ||||||
13 | equipment, and including
equipment purchased for lease, but | ||||||
14 | excluding motor vehicles required to be
registered under the | ||||||
15 | Illinois Vehicle Code. This item (21) is not subject to the | ||||||
16 | provisions of Section 2-70. | ||||||
17 | (22) Fuel and petroleum products sold to or used by an air | ||||||
18 | carrier,
certified by the carrier to be used for consumption, | ||||||
19 | shipment, or storage
in the conduct of its business as an air | ||||||
20 | common carrier, for a flight
destined for or returning from a | ||||||
21 | location or locations
outside the United States without regard | ||||||
22 | to previous or subsequent domestic
stopovers. | ||||||
23 | (23) A transaction in which the purchase order is received | ||||||
24 | by a florist
who is located outside Illinois, but who has a | ||||||
25 | florist located in Illinois
deliver the property to the | ||||||
26 | purchaser or the purchaser's donee in Illinois. |
| |||||||
| |||||||
1 | (24) Fuel consumed or used in the operation of ships, | ||||||
2 | barges, or vessels
that are used primarily in or for the | ||||||
3 | transportation of property or the
conveyance of persons for | ||||||
4 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
5 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
6 | it is afloat upon that bordering river. | ||||||
7 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
8 | motor vehicle sold in this State to a nonresident even though | ||||||
9 | the
motor vehicle is delivered to the nonresident in this | ||||||
10 | State, if the motor
vehicle is not to be titled in this State, | ||||||
11 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
12 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
13 | the nonresident purchaser has vehicle registration
plates to | ||||||
14 | transfer to the motor vehicle upon returning to his or her home
| ||||||
15 | state. The issuance of the drive-away permit or having
the
| ||||||
16 | out-of-state registration plates to be transferred is prima | ||||||
17 | facie evidence
that the motor vehicle will not be titled in | ||||||
18 | this State. | ||||||
19 | (25-5) The exemption under item (25) does not apply if the | ||||||
20 | state in which the motor vehicle will be titled does not allow | ||||||
21 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
22 | in that state to an Illinois resident but titled in Illinois. | ||||||
23 | The tax collected under this Act on the sale of a motor vehicle | ||||||
24 | in this State to a resident of another state that does not | ||||||
25 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
26 | to the state's rate of tax on taxable property in the state in |
| |||||||
| |||||||
1 | which the purchaser is a resident, except that the tax shall | ||||||
2 | not exceed the tax that would otherwise be imposed under this | ||||||
3 | Act. At the time of the sale, the purchaser shall execute a | ||||||
4 | statement, signed under penalty of perjury, of his or her | ||||||
5 | intent to title the vehicle in the state in which the purchaser | ||||||
6 | is a resident within 30 days after the sale and of the fact of | ||||||
7 | the payment to the State of Illinois of tax in an amount | ||||||
8 | equivalent to the state's rate of tax on taxable property in | ||||||
9 | his or her state of residence and shall submit the statement to | ||||||
10 | the appropriate tax collection agency in his or her state of | ||||||
11 | residence. In addition, the retailer must retain a signed copy | ||||||
12 | of the statement in his or her records. Nothing in this item | ||||||
13 | shall be construed to require the removal of the vehicle from | ||||||
14 | this state following the filing of an intent to title the | ||||||
15 | vehicle in the purchaser's state of residence if the purchaser | ||||||
16 | titles the vehicle in his or her state of residence within 30 | ||||||
17 | days after the date of sale. The tax collected under this Act | ||||||
18 | in accordance with this item (25-5) shall be proportionately | ||||||
19 | distributed as if the tax were collected at the 6.25% general | ||||||
20 | rate imposed under this Act.
| ||||||
21 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
22 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
23 | the Illinois Aeronautics Act, if all of the following | ||||||
24 | conditions are met: | ||||||
25 | (1) the aircraft leaves this State within 15 days after | ||||||
26 | the later of either the issuance of the final billing for |
| |||||||
| |||||||
1 | the sale of the aircraft, or the authorized approval for | ||||||
2 | return to service, completion of the maintenance record | ||||||
3 | entry, and completion of the test flight and ground test | ||||||
4 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
5 | (2) the aircraft is not based or registered in this | ||||||
6 | State after the sale of the aircraft; and | ||||||
7 | (3) the seller retains in his or her books and records | ||||||
8 | and provides to the Department a signed and dated | ||||||
9 | certification from the purchaser, on a form prescribed by | ||||||
10 | the Department, certifying that the requirements of this | ||||||
11 | item (25-7) are met. The certificate must also include the | ||||||
12 | name and address of the purchaser, the address of the | ||||||
13 | location where the aircraft is to be titled or registered, | ||||||
14 | the address of the primary physical location of the | ||||||
15 | aircraft, and other information that the Department may | ||||||
16 | reasonably require. | ||||||
17 | For purposes of this item (25-7): | ||||||
18 | "Based in this State" means hangared, stored, or otherwise | ||||||
19 | used, excluding post-sale customizations as defined in this | ||||||
20 | Section, for 10 or more days in each 12-month period | ||||||
21 | immediately following the date of the sale of the aircraft. | ||||||
22 | "Registered in this State" means an aircraft registered | ||||||
23 | with the Department of Transportation, Aeronautics Division, | ||||||
24 | or titled or registered with the Federal Aviation | ||||||
25 | Administration to an address located in this State. | ||||||
26 | This paragraph (25-7) is exempt from the provisions
of
|
| |||||||
| |||||||
1 | Section 2-70.
| ||||||
2 | (26) Semen used for artificial insemination of livestock | ||||||
3 | for direct
agricultural production. | ||||||
4 | (27) Horses, or interests in horses, registered with and | ||||||
5 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
6 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
7 | Horse Association, United States
Trotting Association, or | ||||||
8 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
9 | racing for prizes. This item (27) is exempt from the provisions | ||||||
10 | of Section 2-70, and the exemption provided for under this item | ||||||
11 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
12 | claim for credit or refund is allowed on or after January 1, | ||||||
13 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
14 | paid during the period beginning May 30, 2000 and ending on | ||||||
15 | January 1, 2008 (the effective date of Public Act 95-88). | ||||||
16 | (28) Computers and communications equipment utilized for | ||||||
17 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
18 | analysis, or treatment of hospital patients sold to a lessor | ||||||
19 | who leases the
equipment, under a lease of one year or longer | ||||||
20 | executed or in effect at the
time of the purchase, to a
| ||||||
21 | hospital
that has been issued an active tax exemption | ||||||
22 | identification number by the
Department under Section 1g of | ||||||
23 | this Act. | ||||||
24 | (29) Personal property sold to a lessor who leases the
| ||||||
25 | property, under a
lease of one year or longer executed or in | ||||||
26 | effect at the time of the purchase,
to a governmental body
that |
| |||||||
| |||||||
1 | has been issued an active tax exemption identification number | ||||||
2 | by the
Department under Section 1g of this Act. | ||||||
3 | (30) Beginning with taxable years ending on or after | ||||||
4 | December
31, 1995
and
ending with taxable years ending on or | ||||||
5 | before December 31, 2004,
personal property that is
donated for | ||||||
6 | disaster relief to be used in a State or federally declared
| ||||||
7 | disaster area in Illinois or bordering Illinois by a | ||||||
8 | manufacturer or retailer
that is registered in this State to a | ||||||
9 | corporation, society, association,
foundation, or institution | ||||||
10 | that has been issued a sales tax exemption
identification | ||||||
11 | number by the Department that assists victims of the disaster
| ||||||
12 | who reside within the declared disaster area. | ||||||
13 | (31) Beginning with taxable years ending on or after | ||||||
14 | December
31, 1995 and
ending with taxable years ending on or | ||||||
15 | before December 31, 2004, personal
property that is used in the | ||||||
16 | performance of infrastructure repairs in this
State, including | ||||||
17 | but not limited to municipal roads and streets, access roads,
| ||||||
18 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
19 | line extensions,
water distribution and purification | ||||||
20 | facilities, storm water drainage and
retention facilities, and | ||||||
21 | sewage treatment facilities, resulting from a State
or | ||||||
22 | federally declared disaster in Illinois or bordering Illinois | ||||||
23 | when such
repairs are initiated on facilities located in the | ||||||
24 | declared disaster area
within 6 months after the disaster. | ||||||
25 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
26 | "game breeding
and
hunting preserve area" or an "exotic game |
| |||||||
| |||||||
1 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
2 | at a hunting enclosure approved through rules adopted by the
| ||||||
3 | Department of Natural Resources. This paragraph is exempt from | ||||||
4 | the provisions
of
Section 2-70. | ||||||
5 | (33) A motor vehicle, as that term is defined in Section | ||||||
6 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
7 | corporation, limited liability
company, society, association, | ||||||
8 | foundation, or institution that is determined by
the Department | ||||||
9 | to be organized and operated exclusively for educational
| ||||||
10 | purposes. For purposes of this exemption, "a corporation, | ||||||
11 | limited liability
company, society, association, foundation, | ||||||
12 | or institution organized and
operated
exclusively for | ||||||
13 | educational purposes" means all tax-supported public schools,
| ||||||
14 | private schools that offer systematic instruction in useful | ||||||
15 | branches of
learning by methods common to public schools and | ||||||
16 | that compare favorably in
their scope and intensity with the | ||||||
17 | course of study presented in tax-supported
schools, and | ||||||
18 | vocational or technical schools or institutes organized and
| ||||||
19 | operated exclusively to provide a course of study of not less | ||||||
20 | than 6 weeks
duration and designed to prepare individuals to | ||||||
21 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
22 | industrial, business, or commercial
occupation. | ||||||
23 | (34) Beginning January 1, 2000, personal property, | ||||||
24 | including food, purchased
through fundraising events for the | ||||||
25 | benefit of a public or private elementary or
secondary school, | ||||||
26 | a group of those schools, or one or more school districts if
|
| |||||||
| |||||||
1 | the events are sponsored by an entity recognized by the school | ||||||
2 | district that
consists primarily of volunteers and includes | ||||||
3 | parents and teachers of the
school children. This paragraph | ||||||
4 | does not apply to fundraising events (i) for
the benefit of | ||||||
5 | private home instruction or (ii) for which the fundraising
| ||||||
6 | entity purchases the personal property sold at the events from | ||||||
7 | another
individual or entity that sold the property for the | ||||||
8 | purpose of resale by the
fundraising entity and that profits | ||||||
9 | from the sale to the fundraising entity.
This paragraph is | ||||||
10 | exempt from the provisions of Section 2-70. | ||||||
11 | (35) Beginning January 1, 2000 and through December 31, | ||||||
12 | 2001, new or used
automatic vending machines that prepare and | ||||||
13 | serve hot food and beverages,
including coffee, soup, and other | ||||||
14 | items, and replacement parts for these
machines. Beginning | ||||||
15 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
16 | for machines used in
commercial, coin-operated amusement and | ||||||
17 | vending business if a use or occupation
tax is paid on the | ||||||
18 | gross receipts derived from the use of the commercial,
| ||||||
19 | coin-operated amusement and vending machines. This paragraph | ||||||
20 | is exempt from
the provisions of Section 2-70. | ||||||
21 | (35-5) Beginning August 23, 2001 and through June 30, 2011, | ||||||
22 | food for human consumption that is to be consumed off
the | ||||||
23 | premises where it is sold (other than alcoholic beverages, soft | ||||||
24 | drinks,
and food that has been prepared for immediate | ||||||
25 | consumption) and prescription
and nonprescription medicines, | ||||||
26 | drugs, medical appliances, and insulin, urine
testing |
| |||||||
| |||||||
1 | materials, syringes, and needles used by diabetics, for human | ||||||
2 | use, when
purchased for use by a person receiving medical | ||||||
3 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
4 | resides in a licensed long-term care facility,
as defined in | ||||||
5 | the Nursing Home Care Act. | ||||||
6 | (36) Beginning August 2, 2001, computers and | ||||||
7 | communications equipment
utilized for any hospital purpose and | ||||||
8 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
9 | hospital patients sold to a lessor who leases the
equipment, | ||||||
10 | under a lease of one year or longer executed or in effect at | ||||||
11 | the
time of the purchase, to a hospital that has been issued an | ||||||
12 | active tax
exemption identification number by the Department | ||||||
13 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
14 | provisions of Section 2-70. | ||||||
15 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
16 | lessor who
leases the property, under a lease of one year or | ||||||
17 | longer executed or in effect
at the time of the purchase, to a | ||||||
18 | governmental body that has been issued an
active tax exemption | ||||||
19 | identification number by the Department under Section 1g
of | ||||||
20 | this Act. This paragraph is exempt from the provisions of | ||||||
21 | Section 2-70. | ||||||
22 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
23 | 2011, tangible personal property purchased
from an Illinois | ||||||
24 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
25 | activities in Illinois who will, upon receipt of the property | ||||||
26 | in Illinois,
temporarily store the property in Illinois (i) for |
| |||||||
| |||||||
1 | the purpose of subsequently
transporting it outside this State | ||||||
2 | for use or consumption thereafter solely
outside this State or | ||||||
3 | (ii) for the purpose of being processed, fabricated, or
| ||||||
4 | manufactured into, attached to, or incorporated into other | ||||||
5 | tangible personal
property to be transported outside this State | ||||||
6 | and thereafter used or consumed
solely outside this State. The | ||||||
7 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
8 | accordance with the Illinois Administrative Procedure Act, | ||||||
9 | issue a
permit to any taxpayer in good standing with the | ||||||
10 | Department who is eligible for
the exemption under this | ||||||
11 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
12 | shall authorize the holder, to the extent and
in the manner | ||||||
13 | specified in the rules adopted under this Act, to purchase
| ||||||
14 | tangible personal property from a retailer exempt from the | ||||||
15 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
16 | necessary books and records to
substantiate the use and | ||||||
17 | consumption of all such tangible personal property
outside of | ||||||
18 | the State of Illinois. | ||||||
19 | (39) Beginning January 1, 2008, tangible personal property | ||||||
20 | used in the construction or maintenance of a community water | ||||||
21 | supply, as defined under Section 3.145 of the Environmental | ||||||
22 | Protection Act, that is operated by a not-for-profit | ||||||
23 | corporation that holds a valid water supply permit issued under | ||||||
24 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
25 | exempt from the provisions of Section 2-70.
| ||||||
26 | (40) Beginning January 1, 2010, materials, parts, |
| |||||||
| |||||||
1 | equipment, components, and furnishings incorporated into or | ||||||
2 | upon an aircraft as part of the modification, refurbishment, | ||||||
3 | completion, replacement, repair, or maintenance of the | ||||||
4 | aircraft. This exemption includes consumable supplies used in | ||||||
5 | the modification, refurbishment, completion, replacement, | ||||||
6 | repair, and maintenance of aircraft, but excludes any | ||||||
7 | materials, parts, equipment, components, and consumable | ||||||
8 | supplies used in the modification, replacement, repair, and | ||||||
9 | maintenance of aircraft engines or power plants, whether such | ||||||
10 | engines or power plants are installed or uninstalled upon any | ||||||
11 | such aircraft. "Consumable supplies" include, but are not | ||||||
12 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
13 | lubricants, cleaning solution, latex gloves, and protective | ||||||
14 | films. This exemption applies only to those organizations that | ||||||
15 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
16 | an approved repair station by the Federal Aviation | ||||||
17 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
18 | operations in accordance with Part 145 of the Federal Aviation | ||||||
19 | Regulations. The exemption does not include aircraft operated | ||||||
20 | by a commercial air carrier providing scheduled passenger air | ||||||
21 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
22 | of the Federal Aviation Regulations. | ||||||
23 | (41) (40) Tangible personal property sold to a | ||||||
24 | public-facilities corporation, as described in Section | ||||||
25 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
26 | constructing or furnishing a municipal convention hall, but |
| |||||||
| |||||||
1 | only if the legal title to the municipal convention hall is | ||||||
2 | transferred to the municipality without any further | ||||||
3 | consideration by or on behalf of the municipality at the time | ||||||
4 | of the completion of the municipal convention hall or upon the | ||||||
5 | retirement or redemption of any bonds or other debt instruments | ||||||
6 | issued by the public-facilities corporation in connection with | ||||||
7 | the development of the municipal convention hall. This | ||||||
8 | exemption includes existing public-facilities corporations as | ||||||
9 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
10 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
11 | (42) Monuments or monument components purchased for the | ||||||
12 | purpose of honoring military veterans, as the term "veteran" is | ||||||
13 | defined in 10 U.S.C. 1491, if the monument or monument | ||||||
14 | component is purchased by (i) a nonprofit organization that is | ||||||
15 | exempt from
federal income taxation under Section 501(c)(3) of | ||||||
16 | the federal Internal
Revenue Code of 1986 or (ii) a veterans' | ||||||
17 | organization chartered under federal law. An exemption under | ||||||
18 | this item (42) is limited to purchases from one retailer per | ||||||
19 | monument or monument component. An exemption under this item | ||||||
20 | (42) is limited to $2,000 per monument. For the purposes of | ||||||
21 | this item (42), a monument is a structure, other than a | ||||||
22 | building, erected with the primary purpose of commemorating a | ||||||
23 | person or event. | ||||||
24 | (Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304, | ||||||
25 | eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08; | ||||||
26 | 95-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-532, eff. |
| |||||||
| |||||||
1 | 8-14-09; 96-759, eff. 1-1-10.) | ||||||
2 | (Text of Section after amendment by P.A. 96-339 ) | ||||||
3 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
4 | sale of
the following tangible personal property are exempt | ||||||
5 | from the tax imposed
by this Act: | ||||||
6 | (1) Farm chemicals. | ||||||
7 | (2) Farm machinery and equipment, both new and used, | ||||||
8 | including that
manufactured on special order, certified by the | ||||||
9 | purchaser to be used
primarily for production agriculture or | ||||||
10 | State or federal agricultural
programs, including individual | ||||||
11 | replacement parts for the machinery and
equipment, including | ||||||
12 | machinery and equipment purchased for lease,
and including | ||||||
13 | implements of husbandry defined in Section 1-130 of
the | ||||||
14 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
15 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
16 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
17 | but
excluding other motor vehicles required to be registered | ||||||
18 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
19 | hoop houses used for propagating, growing, or
overwintering | ||||||
20 | plants shall be considered farm machinery and equipment under
| ||||||
21 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
22 | shall include units sold
separately from a motor vehicle | ||||||
23 | required to be licensed and units sold mounted
on a motor | ||||||
24 | vehicle required to be licensed, if the selling price of the | ||||||
25 | tender
is separately stated. |
| |||||||
| |||||||
1 | Farm machinery and equipment shall include precision | ||||||
2 | farming equipment
that is
installed or purchased to be | ||||||
3 | installed on farm machinery and equipment
including, but not | ||||||
4 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
5 | or spreaders.
Precision farming equipment includes, but is not | ||||||
6 | limited to,
soil testing sensors, computers, monitors, | ||||||
7 | software, global positioning
and mapping systems, and other | ||||||
8 | such equipment. | ||||||
9 | Farm machinery and equipment also includes computers, | ||||||
10 | sensors, software, and
related equipment used primarily in the
| ||||||
11 | computer-assisted operation of production agriculture | ||||||
12 | facilities, equipment,
and activities such as, but
not limited | ||||||
13 | to,
the collection, monitoring, and correlation of
animal and | ||||||
14 | crop data for the purpose of
formulating animal diets and | ||||||
15 | agricultural chemicals. This item (7) is exempt
from the | ||||||
16 | provisions of
Section 2-70. | ||||||
17 | (3) Until July 1, 2003, distillation machinery and | ||||||
18 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
19 | retailer, certified by the user to be used
only for the | ||||||
20 | production of ethyl alcohol that will be used for consumption
| ||||||
21 | as motor fuel or as a component of motor fuel for the personal | ||||||
22 | use of the
user, and not subject to sale or resale. | ||||||
23 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
24 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
25 | equipment, including
repair and
replacement parts, both new and | ||||||
26 | used, and including that manufactured on
special order or |
| |||||||
| |||||||
1 | purchased for lease, certified by the purchaser to be used
| ||||||
2 | primarily for graphic arts production.
Equipment includes | ||||||
3 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
4 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
5 | immediate
change upon a
graphic arts product. | ||||||
6 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
7 | of the second division that is a self contained motor vehicle | ||||||
8 | designed or permanently converted to provide living quarters | ||||||
9 | for recreational, camping, or travel use, with direct walk | ||||||
10 | through access to the living quarters from the driver's seat, | ||||||
11 | or a motor vehicle of the second division that is of the van | ||||||
12 | configuration designed for the transportation of not less than | ||||||
13 | 7 nor more than 16 passengers, as defined in Section 1-146 of | ||||||
14 | the Illinois Vehicle Code, that is used for automobile renting, | ||||||
15 | as defined in the Automobile Renting Occupation and Use Tax | ||||||
16 | Act. This paragraph is exempt from
the provisions of Section | ||||||
17 | 2-70. | ||||||
18 | (6) Personal property sold by a teacher-sponsored student | ||||||
19 | organization
affiliated with an elementary or secondary school | ||||||
20 | located in Illinois. | ||||||
21 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
22 | selling price of
a passenger car the
sale of which is subject | ||||||
23 | to the Replacement Vehicle Tax. | ||||||
24 | (8) Personal property sold to an Illinois county fair | ||||||
25 | association for
use in conducting, operating, or promoting the | ||||||
26 | county fair. |
| |||||||
| |||||||
1 | (9) Personal property sold to a not-for-profit arts
or | ||||||
2 | cultural organization that establishes, by proof required by | ||||||
3 | the Department
by
rule, that it has received an exemption under | ||||||
4 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
5 | organized and operated primarily for the
presentation
or | ||||||
6 | support of arts or cultural programming, activities, or | ||||||
7 | services. These
organizations include, but are not limited to, | ||||||
8 | music and dramatic arts
organizations such as symphony | ||||||
9 | orchestras and theatrical groups, arts and
cultural service | ||||||
10 | organizations, local arts councils, visual arts organizations,
| ||||||
11 | and media arts organizations.
On and after the effective date | ||||||
12 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
13 | an entity otherwise eligible for this exemption shall not
make | ||||||
14 | tax-free purchases unless it has an active identification | ||||||
15 | number issued by
the Department. | ||||||
16 | (10) Personal property sold by a corporation, society, | ||||||
17 | association,
foundation, institution, or organization, other | ||||||
18 | than a limited liability
company, that is organized and | ||||||
19 | operated as a not-for-profit service enterprise
for the benefit | ||||||
20 | of persons 65 years of age or older if the personal property
| ||||||
21 | was not purchased by the enterprise for the purpose of resale | ||||||
22 | by the
enterprise. | ||||||
23 | (11) Personal property sold to a governmental body, to a | ||||||
24 | corporation,
society, association, foundation, or institution | ||||||
25 | organized and operated
exclusively for charitable, religious, | ||||||
26 | or educational purposes, or to a
not-for-profit corporation, |
| |||||||
| |||||||
1 | society, association, foundation, institution,
or organization | ||||||
2 | that has no compensated officers or employees and that is
| ||||||
3 | organized and operated primarily for the recreation of persons | ||||||
4 | 55 years of
age or older. A limited liability company may | ||||||
5 | qualify for the exemption under
this paragraph only if the | ||||||
6 | limited liability company is organized and operated
| ||||||
7 | exclusively for educational purposes. On and after July 1, | ||||||
8 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
9 | shall make tax-free purchases
unless it has an active | ||||||
10 | identification number issued by the Department. | ||||||
11 | (12) Tangible personal property sold to
interstate | ||||||
12 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
13 | commerce or to lessors under leases of
one year or longer | ||||||
14 | executed or in effect at the time of purchase by
interstate | ||||||
15 | carriers for hire for use as rolling stock moving in interstate
| ||||||
16 | commerce and equipment operated by a telecommunications | ||||||
17 | provider, licensed as a
common carrier by the Federal | ||||||
18 | Communications Commission, which is permanently
installed in | ||||||
19 | or affixed to aircraft moving in interstate commerce. | ||||||
20 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
21 | motor vehicles of the second division
with a gross vehicle | ||||||
22 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
23 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
24 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
25 | through June 30, 2005, the use in this State of motor vehicles | ||||||
26 | of the second division: (i) with a gross vehicle weight rating |
| |||||||
| |||||||
1 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
2 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
3 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
4 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
5 | applies to repair and replacement parts added
after the
initial | ||||||
6 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
7 | in a
manner that
would qualify for the rolling stock exemption | ||||||
8 | otherwise provided for in this
Act. For purposes of this | ||||||
9 | paragraph, "used for commercial purposes" means the | ||||||
10 | transportation of persons or property in furtherance of any | ||||||
11 | commercial or industrial enterprise whether for-hire or not.
| ||||||
12 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
13 | tangible personal property that is utilized by interstate | ||||||
14 | carriers for
hire for use as rolling stock moving in interstate | ||||||
15 | commerce
and equipment operated by a telecommunications | ||||||
16 | provider, licensed as a
common carrier by the Federal | ||||||
17 | Communications Commission, which is
permanently installed in | ||||||
18 | or affixed to aircraft moving in interstate commerce. | ||||||
19 | (14) Machinery and equipment that will be used by the | ||||||
20 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
21 | process of manufacturing or
assembling tangible personal | ||||||
22 | property for wholesale or retail sale or
lease, whether the | ||||||
23 | sale or lease is made directly by the manufacturer or by
some | ||||||
24 | other person, whether the materials used in the process are | ||||||
25 | owned by
the manufacturer or some other person, or whether the | ||||||
26 | sale or lease is made
apart from or as an incident to the |
| |||||||
| |||||||
1 | seller's engaging in the service
occupation of producing | ||||||
2 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
3 | items of no commercial value on special order for a particular
| ||||||
4 | purchaser. | ||||||
5 | (15) Proceeds of mandatory service charges separately | ||||||
6 | stated on
customers' bills for purchase and consumption of food | ||||||
7 | and beverages, to the
extent that the proceeds of the service | ||||||
8 | charge are in fact turned over as
tips or as a substitute for | ||||||
9 | tips to the employees who participate directly
in preparing, | ||||||
10 | serving, hosting or cleaning up the food or beverage function
| ||||||
11 | with respect to which the service charge is imposed. | ||||||
12 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
13 | is prohibited by federal law from charging tax to the | ||||||
14 | purchaser. | ||||||
15 | (17) Tangible personal property sold to a common carrier by | ||||||
16 | rail or
motor that
receives the physical possession of the | ||||||
17 | property in Illinois and that
transports the property, or | ||||||
18 | shares with another common carrier in the
transportation of the | ||||||
19 | property, out of Illinois on a standard uniform bill
of lading | ||||||
20 | showing the seller of the property as the shipper or consignor | ||||||
21 | of
the property to a destination outside Illinois, for use | ||||||
22 | outside Illinois. | ||||||
23 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
24 | coinage
issued by the State of Illinois, the government of the | ||||||
25 | United States of
America, or the government of any foreign | ||||||
26 | country, and bullion. |
| |||||||
| |||||||
1 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
2 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
3 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
4 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
5 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
6 | individual replacement part for oil field exploration,
| ||||||
7 | drilling, and production equipment, and (vi) machinery and | ||||||
8 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
9 | required to be registered under the Illinois
Vehicle Code. | ||||||
10 | (20) Photoprocessing machinery and equipment, including | ||||||
11 | repair and
replacement parts, both new and used, including that | ||||||
12 | manufactured on
special order, certified by the purchaser to be | ||||||
13 | used primarily for
photoprocessing, and including | ||||||
14 | photoprocessing machinery and equipment
purchased for lease. | ||||||
15 | (21) Until July 1, 2003, and beginning again on the | ||||||
16 | effective date of this amendatory Act of the 96th General | ||||||
17 | Assembly and thereafter, coal and aggregate exploration, | ||||||
18 | mining, offhighway hauling,
processing,
maintenance, and | ||||||
19 | reclamation equipment, including
replacement parts and | ||||||
20 | equipment, and including
equipment purchased for lease, but | ||||||
21 | excluding motor vehicles required to be
registered under the | ||||||
22 | Illinois Vehicle Code. This item (21) is not subject to the | ||||||
23 | provisions of Section 2-70. | ||||||
24 | (22) Fuel and petroleum products sold to or used by an air | ||||||
25 | carrier,
certified by the carrier to be used for consumption, | ||||||
26 | shipment, or storage
in the conduct of its business as an air |
| |||||||
| |||||||
1 | common carrier, for a flight
destined for or returning from a | ||||||
2 | location or locations
outside the United States without regard | ||||||
3 | to previous or subsequent domestic
stopovers. | ||||||
4 | (23) A transaction in which the purchase order is received | ||||||
5 | by a florist
who is located outside Illinois, but who has a | ||||||
6 | florist located in Illinois
deliver the property to the | ||||||
7 | purchaser or the purchaser's donee in Illinois. | ||||||
8 | (24) Fuel consumed or used in the operation of ships, | ||||||
9 | barges, or vessels
that are used primarily in or for the | ||||||
10 | transportation of property or the
conveyance of persons for | ||||||
11 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
12 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
13 | it is afloat upon that bordering river. | ||||||
14 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
15 | motor vehicle sold in this State to a nonresident even though | ||||||
16 | the
motor vehicle is delivered to the nonresident in this | ||||||
17 | State, if the motor
vehicle is not to be titled in this State, | ||||||
18 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
19 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
20 | the nonresident purchaser has vehicle registration
plates to | ||||||
21 | transfer to the motor vehicle upon returning to his or her home
| ||||||
22 | state. The issuance of the drive-away permit or having
the
| ||||||
23 | out-of-state registration plates to be transferred is prima | ||||||
24 | facie evidence
that the motor vehicle will not be titled in | ||||||
25 | this State. | ||||||
26 | (25-5) The exemption under item (25) does not apply if the |
| |||||||
| |||||||
1 | state in which the motor vehicle will be titled does not allow | ||||||
2 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
3 | in that state to an Illinois resident but titled in Illinois. | ||||||
4 | The tax collected under this Act on the sale of a motor vehicle | ||||||
5 | in this State to a resident of another state that does not | ||||||
6 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
7 | to the state's rate of tax on taxable property in the state in | ||||||
8 | which the purchaser is a resident, except that the tax shall | ||||||
9 | not exceed the tax that would otherwise be imposed under this | ||||||
10 | Act. At the time of the sale, the purchaser shall execute a | ||||||
11 | statement, signed under penalty of perjury, of his or her | ||||||
12 | intent to title the vehicle in the state in which the purchaser | ||||||
13 | is a resident within 30 days after the sale and of the fact of | ||||||
14 | the payment to the State of Illinois of tax in an amount | ||||||
15 | equivalent to the state's rate of tax on taxable property in | ||||||
16 | his or her state of residence and shall submit the statement to | ||||||
17 | the appropriate tax collection agency in his or her state of | ||||||
18 | residence. In addition, the retailer must retain a signed copy | ||||||
19 | of the statement in his or her records. Nothing in this item | ||||||
20 | shall be construed to require the removal of the vehicle from | ||||||
21 | this state following the filing of an intent to title the | ||||||
22 | vehicle in the purchaser's state of residence if the purchaser | ||||||
23 | titles the vehicle in his or her state of residence within 30 | ||||||
24 | days after the date of sale. The tax collected under this Act | ||||||
25 | in accordance with this item (25-5) shall be proportionately | ||||||
26 | distributed as if the tax were collected at the 6.25% general |
| |||||||
| |||||||
1 | rate imposed under this Act.
| ||||||
2 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
3 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
4 | the Illinois Aeronautics Act, if all of the following | ||||||
5 | conditions are met: | ||||||
6 | (1) the aircraft leaves this State within 15 days after | ||||||
7 | the later of either the issuance of the final billing for | ||||||
8 | the sale of the aircraft, or the authorized approval for | ||||||
9 | return to service, completion of the maintenance record | ||||||
10 | entry, and completion of the test flight and ground test | ||||||
11 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
12 | (2) the aircraft is not based or registered in this | ||||||
13 | State after the sale of the aircraft; and | ||||||
14 | (3) the seller retains in his or her books and records | ||||||
15 | and provides to the Department a signed and dated | ||||||
16 | certification from the purchaser, on a form prescribed by | ||||||
17 | the Department, certifying that the requirements of this | ||||||
18 | item (25-7) are met. The certificate must also include the | ||||||
19 | name and address of the purchaser, the address of the | ||||||
20 | location where the aircraft is to be titled or registered, | ||||||
21 | the address of the primary physical location of the | ||||||
22 | aircraft, and other information that the Department may | ||||||
23 | reasonably require. | ||||||
24 | For purposes of this item (25-7): | ||||||
25 | "Based in this State" means hangared, stored, or otherwise | ||||||
26 | used, excluding post-sale customizations as defined in this |
| |||||||
| |||||||
1 | Section, for 10 or more days in each 12-month period | ||||||
2 | immediately following the date of the sale of the aircraft. | ||||||
3 | "Registered in this State" means an aircraft registered | ||||||
4 | with the Department of Transportation, Aeronautics Division, | ||||||
5 | or titled or registered with the Federal Aviation | ||||||
6 | Administration to an address located in this State. | ||||||
7 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
8 | Section 2-70.
| ||||||
9 | (26) Semen used for artificial insemination of livestock | ||||||
10 | for direct
agricultural production. | ||||||
11 | (27) Horses, or interests in horses, registered with and | ||||||
12 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
13 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
14 | Horse Association, United States
Trotting Association, or | ||||||
15 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
16 | racing for prizes. This item (27) is exempt from the provisions | ||||||
17 | of Section 2-70, and the exemption provided for under this item | ||||||
18 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
19 | claim for credit or refund is allowed on or after January 1, | ||||||
20 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
21 | paid during the period beginning May 30, 2000 and ending on | ||||||
22 | January 1, 2008 (the effective date of Public Act 95-88). | ||||||
23 | (28) Computers and communications equipment utilized for | ||||||
24 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
25 | analysis, or treatment of hospital patients sold to a lessor | ||||||
26 | who leases the
equipment, under a lease of one year or longer |
| |||||||
| |||||||
1 | executed or in effect at the
time of the purchase, to a
| ||||||
2 | hospital
that has been issued an active tax exemption | ||||||
3 | identification number by the
Department under Section 1g of | ||||||
4 | this Act. | ||||||
5 | (29) Personal property sold to a lessor who leases the
| ||||||
6 | property, under a
lease of one year or longer executed or in | ||||||
7 | effect at the time of the purchase,
to a governmental body
that | ||||||
8 | has been issued an active tax exemption identification number | ||||||
9 | by the
Department under Section 1g of this Act. | ||||||
10 | (30) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995
and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004,
personal property that is
donated for | ||||||
13 | disaster relief to be used in a State or federally declared
| ||||||
14 | disaster area in Illinois or bordering Illinois by a | ||||||
15 | manufacturer or retailer
that is registered in this State to a | ||||||
16 | corporation, society, association,
foundation, or institution | ||||||
17 | that has been issued a sales tax exemption
identification | ||||||
18 | number by the Department that assists victims of the disaster
| ||||||
19 | who reside within the declared disaster area. | ||||||
20 | (31) Beginning with taxable years ending on or after | ||||||
21 | December
31, 1995 and
ending with taxable years ending on or | ||||||
22 | before December 31, 2004, personal
property that is used in the | ||||||
23 | performance of infrastructure repairs in this
State, including | ||||||
24 | but not limited to municipal roads and streets, access roads,
| ||||||
25 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
26 | line extensions,
water distribution and purification |
| |||||||
| |||||||
1 | facilities, storm water drainage and
retention facilities, and | ||||||
2 | sewage treatment facilities, resulting from a State
or | ||||||
3 | federally declared disaster in Illinois or bordering Illinois | ||||||
4 | when such
repairs are initiated on facilities located in the | ||||||
5 | declared disaster area
within 6 months after the disaster. | ||||||
6 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
7 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
8 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
9 | at a hunting enclosure approved through rules adopted by the
| ||||||
10 | Department of Natural Resources. This paragraph is exempt from | ||||||
11 | the provisions
of
Section 2-70. | ||||||
12 | (33) A motor vehicle, as that term is defined in Section | ||||||
13 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
14 | corporation, limited liability
company, society, association, | ||||||
15 | foundation, or institution that is determined by
the Department | ||||||
16 | to be organized and operated exclusively for educational
| ||||||
17 | purposes. For purposes of this exemption, "a corporation, | ||||||
18 | limited liability
company, society, association, foundation, | ||||||
19 | or institution organized and
operated
exclusively for | ||||||
20 | educational purposes" means all tax-supported public schools,
| ||||||
21 | private schools that offer systematic instruction in useful | ||||||
22 | branches of
learning by methods common to public schools and | ||||||
23 | that compare favorably in
their scope and intensity with the | ||||||
24 | course of study presented in tax-supported
schools, and | ||||||
25 | vocational or technical schools or institutes organized and
| ||||||
26 | operated exclusively to provide a course of study of not less |
| |||||||
| |||||||
1 | than 6 weeks
duration and designed to prepare individuals to | ||||||
2 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
3 | industrial, business, or commercial
occupation. | ||||||
4 | (34) Beginning January 1, 2000, personal property, | ||||||
5 | including food, purchased
through fundraising events for the | ||||||
6 | benefit of a public or private elementary or
secondary school, | ||||||
7 | a group of those schools, or one or more school districts if
| ||||||
8 | the events are sponsored by an entity recognized by the school | ||||||
9 | district that
consists primarily of volunteers and includes | ||||||
10 | parents and teachers of the
school children. This paragraph | ||||||
11 | does not apply to fundraising events (i) for
the benefit of | ||||||
12 | private home instruction or (ii) for which the fundraising
| ||||||
13 | entity purchases the personal property sold at the events from | ||||||
14 | another
individual or entity that sold the property for the | ||||||
15 | purpose of resale by the
fundraising entity and that profits | ||||||
16 | from the sale to the fundraising entity.
This paragraph is | ||||||
17 | exempt from the provisions of Section 2-70. | ||||||
18 | (35) Beginning January 1, 2000 and through December 31, | ||||||
19 | 2001, new or used
automatic vending machines that prepare and | ||||||
20 | serve hot food and beverages,
including coffee, soup, and other | ||||||
21 | items, and replacement parts for these
machines. Beginning | ||||||
22 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
23 | for machines used in
commercial, coin-operated amusement and | ||||||
24 | vending business if a use or occupation
tax is paid on the | ||||||
25 | gross receipts derived from the use of the commercial,
| ||||||
26 | coin-operated amusement and vending machines. This paragraph |
| |||||||
| |||||||
1 | is exempt from
the provisions of Section 2-70. | ||||||
2 | (35-5) Beginning August 23, 2001 and through June 30, 2011, | ||||||
3 | food for human consumption that is to be consumed off
the | ||||||
4 | premises where it is sold (other than alcoholic beverages, soft | ||||||
5 | drinks,
and food that has been prepared for immediate | ||||||
6 | consumption) and prescription
and nonprescription medicines, | ||||||
7 | drugs, medical appliances, and insulin, urine
testing | ||||||
8 | materials, syringes, and needles used by diabetics, for human | ||||||
9 | use, when
purchased for use by a person receiving medical | ||||||
10 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
11 | resides in a licensed long-term care facility,
as defined in | ||||||
12 | the Nursing Home Care Act, or a licensed facility as defined in | ||||||
13 | the MR/DD Community Care Act. | ||||||
14 | (36) Beginning August 2, 2001, computers and | ||||||
15 | communications equipment
utilized for any hospital purpose and | ||||||
16 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
17 | hospital patients sold to a lessor who leases the
equipment, | ||||||
18 | under a lease of one year or longer executed or in effect at | ||||||
19 | the
time of the purchase, to a hospital that has been issued an | ||||||
20 | active tax
exemption identification number by the Department | ||||||
21 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
22 | provisions of Section 2-70. | ||||||
23 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
24 | lessor who
leases the property, under a lease of one year or | ||||||
25 | longer executed or in effect
at the time of the purchase, to a | ||||||
26 | governmental body that has been issued an
active tax exemption |
| |||||||
| |||||||
1 | identification number by the Department under Section 1g
of | ||||||
2 | this Act. This paragraph is exempt from the provisions of | ||||||
3 | Section 2-70. | ||||||
4 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
5 | 2011, tangible personal property purchased
from an Illinois | ||||||
6 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
7 | activities in Illinois who will, upon receipt of the property | ||||||
8 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
9 | the purpose of subsequently
transporting it outside this State | ||||||
10 | for use or consumption thereafter solely
outside this State or | ||||||
11 | (ii) for the purpose of being processed, fabricated, or
| ||||||
12 | manufactured into, attached to, or incorporated into other | ||||||
13 | tangible personal
property to be transported outside this State | ||||||
14 | and thereafter used or consumed
solely outside this State. The | ||||||
15 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
16 | accordance with the Illinois Administrative Procedure Act, | ||||||
17 | issue a
permit to any taxpayer in good standing with the | ||||||
18 | Department who is eligible for
the exemption under this | ||||||
19 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
20 | shall authorize the holder, to the extent and
in the manner | ||||||
21 | specified in the rules adopted under this Act, to purchase
| ||||||
22 | tangible personal property from a retailer exempt from the | ||||||
23 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
24 | necessary books and records to
substantiate the use and | ||||||
25 | consumption of all such tangible personal property
outside of | ||||||
26 | the State of Illinois. |
| |||||||
| |||||||
1 | (39) Beginning January 1, 2008, tangible personal property | ||||||
2 | used in the construction or maintenance of a community water | ||||||
3 | supply, as defined under Section 3.145 of the Environmental | ||||||
4 | Protection Act, that is operated by a not-for-profit | ||||||
5 | corporation that holds a valid water supply permit issued under | ||||||
6 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
7 | exempt from the provisions of Section 2-70.
| ||||||
8 | (40) Beginning January 1, 2010, materials, parts, | ||||||
9 | equipment, components, and furnishings incorporated into or | ||||||
10 | upon an aircraft as part of the modification, refurbishment, | ||||||
11 | completion, replacement, repair, or maintenance of the | ||||||
12 | aircraft. This exemption includes consumable supplies used in | ||||||
13 | the modification, refurbishment, completion, replacement, | ||||||
14 | repair, and maintenance of aircraft, but excludes any | ||||||
15 | materials, parts, equipment, components, and consumable | ||||||
16 | supplies used in the modification, replacement, repair, and | ||||||
17 | maintenance of aircraft engines or power plants, whether such | ||||||
18 | engines or power plants are installed or uninstalled upon any | ||||||
19 | such aircraft. "Consumable supplies" include, but are not | ||||||
20 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
21 | lubricants, cleaning solution, latex gloves, and protective | ||||||
22 | films. This exemption applies only to those organizations that | ||||||
23 | (i) hold an Air Agency Certificate and are empowered to operate | ||||||
24 | an approved repair station by the Federal Aviation | ||||||
25 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
26 | operations in accordance with Part 145 of the Federal Aviation |
| |||||||
| |||||||
1 | Regulations. The exemption does not include aircraft operated | ||||||
2 | by a commercial air carrier providing scheduled passenger air | ||||||
3 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
4 | of the Federal Aviation Regulations. | ||||||
5 | (41) (40) Tangible personal property sold to a | ||||||
6 | public-facilities corporation, as described in Section | ||||||
7 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
8 | constructing or furnishing a municipal convention hall, but | ||||||
9 | only if the legal title to the municipal convention hall is | ||||||
10 | transferred to the municipality without any further | ||||||
11 | consideration by or on behalf of the municipality at the time | ||||||
12 | of the completion of the municipal convention hall or upon the | ||||||
13 | retirement or redemption of any bonds or other debt instruments | ||||||
14 | issued by the public-facilities corporation in connection with | ||||||
15 | the development of the municipal convention hall. This | ||||||
16 | exemption includes existing public-facilities corporations as | ||||||
17 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
18 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
19 | (42) Monuments or monument components purchased for the | ||||||
20 | purpose of honoring military veterans, as the term "veteran" is | ||||||
21 | defined in 10 U.S.C. 1491, if the monument or monument | ||||||
22 | component is purchased by (i) a nonprofit organization that is | ||||||
23 | exempt from
federal income taxation under Section 501(c)(3) of | ||||||
24 | the federal Internal
Revenue Code of 1986 or (ii) a veterans' | ||||||
25 | organization chartered under federal law. An exemption under | ||||||
26 | this item (42) is limited to purchases from one retailer per |
| |||||||
| |||||||
1 | monument or monument component. An exemption under this item | ||||||
2 | (42) is limited to $2,000 per monument. For the purposes of | ||||||
3 | this item (42), a monument is a structure, other than a | ||||||
4 | building, erected with the primary purpose of commemorating a | ||||||
5 | person or event. | ||||||
6 | (Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304, | ||||||
7 | eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08; | ||||||
8 | 95-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. | ||||||
9 | 7-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; revised | ||||||
10 | 9-25-09.)
| ||||||
11 | Section 95. No acceleration or delay. Where this Act makes | ||||||
12 | changes in a statute that is represented in this Act by text | ||||||
13 | that is not yet or no longer in effect (for example, a Section | ||||||
14 | represented by multiple versions), the use of that text does | ||||||
15 | not accelerate or delay the taking effect of (i) the changes | ||||||
16 | made by this Act or (ii) provisions derived from any other | ||||||
17 | Public Act. | ||||||
18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.".
|