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