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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,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Use Tax Act is amended by changing Section |
5 | | 3-5 as follows:
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6 | | (35 ILCS 105/3-5)
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7 | | Sec. 3-5. Exemptions. Use of the following tangible |
8 | | personal property
is exempt from the tax imposed by this Act:
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9 | | (1) Personal property purchased from a corporation, |
10 | | society, association,
foundation, institution, or |
11 | | organization, other than a limited liability
company, that is |
12 | | organized and operated as a not-for-profit service enterprise
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13 | | for the benefit of persons 65 years of age or older if the |
14 | | personal property
was not purchased by the enterprise for the |
15 | | purpose of resale by the
enterprise.
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16 | | (2) Personal property purchased by a not-for-profit |
17 | | Illinois county
fair association for use in conducting, |
18 | | operating, or promoting the
county fair.
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19 | | (3) Personal property purchased by a not-for-profit
arts or |
20 | | cultural organization that establishes, by proof required by |
21 | | the
Department by
rule, that it has received an exemption under |
22 | | Section 501(c)(3) of the Internal
Revenue Code and that is |
23 | | organized and operated primarily for the
presentation
or |
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1 | | support of arts or cultural programming, activities, or |
2 | | services. These
organizations include, but are not limited to, |
3 | | music and dramatic arts
organizations such as symphony |
4 | | orchestras and theatrical groups, arts and
cultural service |
5 | | organizations, local arts councils, visual arts organizations,
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6 | | and media arts organizations.
On and after the effective date |
7 | | of this amendatory Act of the 92nd General
Assembly, however, |
8 | | an entity otherwise eligible for this exemption shall not
make |
9 | | tax-free purchases unless it has an active identification |
10 | | number issued by
the Department.
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11 | | (4) Personal property purchased by a governmental body, by |
12 | | a
corporation, society, association, foundation, or |
13 | | institution organized and
operated exclusively for charitable, |
14 | | religious, or educational purposes, or
by a not-for-profit |
15 | | corporation, society, association, foundation,
institution, or |
16 | | organization that has no compensated officers or employees
and |
17 | | that is organized and operated primarily for the recreation of |
18 | | persons
55 years of age or older. A limited liability company |
19 | | may qualify for the
exemption under this paragraph only if the |
20 | | limited liability company is
organized and operated |
21 | | exclusively for educational purposes. On and after July
1, |
22 | | 1987, however, no entity otherwise eligible for this exemption |
23 | | shall make
tax-free purchases unless it has an active exemption |
24 | | identification number
issued by the Department.
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25 | | (5) Until July 1, 2003, a passenger car that is a |
26 | | replacement vehicle to
the extent that the
purchase price of |
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1 | | the car is subject to the Replacement Vehicle Tax.
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2 | | (6) Until July 1, 2003 and beginning again on September 1, |
3 | | 2004 through August 30, 2014, graphic arts machinery and |
4 | | equipment, including
repair and replacement
parts, both new and |
5 | | used, and including that manufactured on special order,
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6 | | certified by the purchaser to be used primarily for graphic |
7 | | arts production,
and including machinery and equipment |
8 | | purchased for lease.
Equipment includes chemicals or chemicals |
9 | | acting as catalysts but only if
the
chemicals or chemicals |
10 | | acting as catalysts effect a direct and immediate change
upon a |
11 | | graphic arts product.
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12 | | (7) Farm chemicals.
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13 | | (8) Legal tender, currency, medallions, or gold or silver |
14 | | coinage issued by
the State of Illinois, the government of the |
15 | | United States of America, or the
government of any foreign |
16 | | country, and bullion.
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17 | | (9) Personal property purchased from a teacher-sponsored |
18 | | student
organization affiliated with an elementary or |
19 | | secondary school located in
Illinois.
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20 | | (10) A motor vehicle of the first division, a motor vehicle |
21 | | of the
second division that is a self-contained motor vehicle |
22 | | designed or
permanently converted to provide living quarters |
23 | | for recreational, camping,
or travel use, with direct walk |
24 | | through to the living quarters from the
driver's seat, or a |
25 | | motor vehicle of the second division that is of the
van |
26 | | configuration designed for the transportation of not less than |
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1 | | 7 nor
more than 16 passengers, as defined in Section 1-146 of |
2 | | the Illinois
Vehicle Code, that is used for automobile renting, |
3 | | as defined in the
Automobile Renting Occupation and Use Tax |
4 | | Act.
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5 | | (11) Farm machinery and equipment, both new and used,
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6 | | including that manufactured on special order, certified by the |
7 | | purchaser
to be used primarily for production agriculture or |
8 | | State or federal
agricultural programs, including individual |
9 | | replacement parts for
the machinery and equipment, including |
10 | | machinery and equipment
purchased
for lease,
and including |
11 | | implements of husbandry defined in Section 1-130 of
the |
12 | | Illinois Vehicle Code, farm machinery and agricultural |
13 | | chemical and
fertilizer spreaders, and nurse wagons required to |
14 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
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15 | | but excluding other motor
vehicles required to be
registered |
16 | | under the Illinois Vehicle Code.
Horticultural polyhouses or |
17 | | hoop houses used for propagating, growing, or
overwintering |
18 | | plants shall be considered farm machinery and equipment under
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19 | | this item (11).
Agricultural chemical tender tanks and dry |
20 | | boxes shall include units sold
separately from a motor vehicle |
21 | | required to be licensed and units sold mounted
on a motor |
22 | | vehicle required to be licensed if the selling price of the |
23 | | tender
is separately stated.
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24 | | Farm machinery and equipment shall include precision |
25 | | farming equipment
that is
installed or purchased to be |
26 | | installed on farm machinery and equipment
including, but not |
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1 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
2 | | or spreaders.
Precision farming equipment includes, but is not |
3 | | limited to, soil testing
sensors, computers, monitors, |
4 | | software, global positioning
and mapping systems, and other |
5 | | such equipment.
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6 | | Farm machinery and equipment also includes computers, |
7 | | sensors, software, and
related equipment used primarily in the
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8 | | computer-assisted operation of production agriculture |
9 | | facilities, equipment,
and
activities such as, but not limited |
10 | | to,
the collection, monitoring, and correlation of
animal and |
11 | | crop data for the purpose of
formulating animal diets and |
12 | | agricultural chemicals. This item (11) is exempt
from the |
13 | | provisions of
Section 3-90.
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14 | | (12) Fuel and petroleum products sold to or used by an air |
15 | | common
carrier, certified by the carrier to be used for |
16 | | consumption, shipment, or
storage in the conduct of its |
17 | | business as an air common carrier, for a
flight destined for or |
18 | | returning from a location or locations
outside the United |
19 | | States without regard to previous or subsequent domestic
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20 | | stopovers.
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21 | | (13) Proceeds of mandatory service charges separately
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22 | | stated on customers' bills for the purchase and consumption of |
23 | | food and
beverages purchased at retail from a retailer, to the |
24 | | extent that the proceeds
of the service charge are in fact |
25 | | turned over as tips or as a substitute
for tips to the |
26 | | employees who participate directly in preparing, serving,
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1 | | hosting or cleaning up the food or beverage function with |
2 | | respect to which
the service charge is imposed.
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3 | | (14) Until July 1, 2003, oil field exploration, drilling, |
4 | | and production
equipment,
including (i) rigs and parts of rigs, |
5 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and |
6 | | tubular goods,
including casing and drill strings, (iii) pumps |
7 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any |
8 | | individual replacement part for oil
field exploration, |
9 | | drilling, and production equipment, and (vi) machinery and
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10 | | equipment purchased
for lease; but excluding motor vehicles |
11 | | required to be registered under the
Illinois Vehicle Code.
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12 | | (15) Photoprocessing machinery and equipment, including |
13 | | repair and
replacement parts, both new and used, including that
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14 | | manufactured on special order, certified by the purchaser to be |
15 | | used
primarily for photoprocessing, and including
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16 | | photoprocessing machinery and equipment purchased for lease.
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17 | | (16) Until July 1, 2003, and beginning again on the |
18 | | effective date of this amendatory Act of the 97th General |
19 | | Assembly and thereafter, coal and aggregate exploration, |
20 | | mining, offhighway hauling,
processing, maintenance, and |
21 | | reclamation equipment,
including replacement parts and |
22 | | equipment, and
including equipment purchased for lease, but |
23 | | excluding motor
vehicles required to be registered under the |
24 | | Illinois Vehicle Code.
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25 | | (17) Until July 1, 2003, distillation machinery and |
26 | | equipment, sold as a
unit or kit,
assembled or installed by the |
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1 | | retailer, certified by the user to be used
only for the |
2 | | production of ethyl alcohol that will be used for consumption
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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.
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5 | | (18) Manufacturing and assembling machinery and equipment |
6 | | used
primarily in the process of manufacturing or assembling |
7 | | tangible
personal property for wholesale or retail sale or |
8 | | lease, whether that sale
or lease is made directly by the |
9 | | manufacturer or by some other person,
whether the materials |
10 | | used in the process are
owned by the manufacturer or some other |
11 | | person, or whether that sale or
lease is made apart from or as |
12 | | an incident to the seller's engaging in
the service occupation |
13 | | of producing machines, tools, dies, jigs,
patterns, gauges, or |
14 | | other similar items of no commercial value on
special order for |
15 | | a particular purchaser.
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16 | | (19) Personal property delivered to a purchaser or |
17 | | purchaser's donee
inside Illinois when the purchase order for |
18 | | that personal property was
received by a florist located |
19 | | outside Illinois who has a florist located
inside Illinois |
20 | | deliver the personal property.
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21 | | (20) Semen used for artificial insemination of livestock |
22 | | for direct
agricultural production.
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23 | | (21) Horses, or interests in horses, registered with and |
24 | | meeting the
requirements of any of the
Arabian Horse Club |
25 | | Registry of America, Appaloosa Horse Club, American Quarter
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26 | | Horse Association, United States
Trotting Association, or |
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1 | | Jockey Club, as appropriate, used for
purposes of breeding or |
2 | | racing for prizes. This item (21) is exempt from the provisions |
3 | | of Section 3-90, and the exemption provided for under this item |
4 | | (21) applies for all periods beginning May 30, 1995, but no |
5 | | claim for credit or refund is allowed on or after January 1, |
6 | | 2008
for such taxes paid during the period beginning May 30, |
7 | | 2000 and ending on January 1, 2008.
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8 | | (22) Computers and communications equipment utilized for |
9 | | any
hospital
purpose
and equipment used in the diagnosis,
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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
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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
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19 | | tax imposed under this Act or the Service Use Tax Act, as the |
20 | | case may
be, based on the fair market value of the property at |
21 | | the time the
non-qualifying use occurs. No lessor shall collect |
22 | | or attempt to collect an
amount (however
designated) that |
23 | | purports to reimburse that lessor for the tax imposed by this
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24 | | Act or the Service Use Tax Act, as the case may be, if the tax |
25 | | has not been
paid by the lessor. If a lessor improperly |
26 | | collects any such amount from the
lessee, the lessee shall have |
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1 | | a legal right to claim a refund of that amount
from the lessor. |
2 | | If, however, that amount is not refunded to the lessee for
any |
3 | | reason, the lessor is liable to pay that amount to the |
4 | | Department.
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5 | | (23) Personal property purchased by a lessor who leases the
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6 | | property, under
a
lease of
one year or longer executed or in |
7 | | effect at the time
the lessor would otherwise be subject to the |
8 | | tax imposed by this Act,
to a governmental body
that has been |
9 | | issued an active sales tax exemption identification number by |
10 | | the
Department under Section 1g of the Retailers' Occupation |
11 | | Tax Act.
If the
property is leased in a manner that does not |
12 | | qualify for
this exemption
or used in any other non-exempt |
13 | | manner, the lessor shall be liable for the
tax imposed under |
14 | | this Act or the Service Use Tax Act, as the case may
be, based |
15 | | on the fair market value of the property at the time the
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16 | | non-qualifying use occurs. No lessor shall collect or attempt |
17 | | to collect an
amount (however
designated) that purports to |
18 | | reimburse that lessor for the tax imposed by this
Act or the |
19 | | Service Use Tax Act, as the case may be, if the tax has not been
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20 | | paid by the lessor. If a lessor improperly collects any such |
21 | | amount from the
lessee, the lessee shall have a legal right to |
22 | | claim a refund of that amount
from the lessor. If, however, |
23 | | that amount is not refunded to the lessee for
any reason, the |
24 | | lessor is liable to pay that amount to the Department.
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25 | | (24) Beginning with taxable years ending on or after |
26 | | December
31, 1995
and
ending with taxable years ending on or |
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1 | | before December 31, 2004,
personal property that is
donated for |
2 | | disaster relief to be used in a State or federally declared
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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
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8 | | who reside within the declared disaster area.
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9 | | (25) 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,
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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.
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21 | | (26) Beginning July 1, 1999, game or game birds purchased |
22 | | at a "game
breeding
and hunting preserve area" as that term is
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23 | | used in
the Wildlife Code. This paragraph is exempt from the |
24 | | provisions
of
Section 3-90.
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25 | | (27) A motor vehicle, as that term is defined in Section |
26 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a |
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1 | | corporation, limited liability company,
society, association, |
2 | | foundation, or institution that is determined by the
Department |
3 | | to be organized and operated exclusively for educational |
4 | | purposes.
For purposes of this exemption, "a corporation, |
5 | | limited liability company,
society, association, foundation, |
6 | | or institution organized and operated
exclusively for |
7 | | educational purposes" means all tax-supported public schools,
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8 | | private schools that offer systematic instruction in useful |
9 | | branches of
learning by methods common to public schools and |
10 | | that compare favorably in
their scope and intensity with the |
11 | | course of study presented in tax-supported
schools, and |
12 | | vocational or technical schools or institutes organized and
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13 | | operated exclusively to provide a course of study of not less |
14 | | than 6 weeks
duration and designed to prepare individuals to |
15 | | follow a trade or to pursue a
manual, technical, mechanical, |
16 | | industrial, business, or commercial
occupation.
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17 | | (28) Beginning January 1, 2000, personal property, |
18 | | including
food,
purchased through fundraising
events for the |
19 | | benefit of
a public or private elementary or
secondary school, |
20 | | a group of those schools, or one or more school
districts if |
21 | | the events are
sponsored by an entity recognized by the school |
22 | | district that consists
primarily of volunteers and includes
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23 | | parents and teachers of the school children. This paragraph |
24 | | does not apply
to fundraising
events (i) for the benefit of |
25 | | private home instruction or (ii)
for which the fundraising |
26 | | entity purchases the personal property sold at
the events from |
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1 | | another individual or entity that sold the property for the
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2 | | purpose of resale by the fundraising entity and that
profits |
3 | | from the sale to the
fundraising entity. This paragraph is |
4 | | exempt
from the provisions
of Section 3-90.
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5 | | (29) Beginning January 1, 2000 and through December 31, |
6 | | 2001, new or
used automatic vending
machines that prepare and |
7 | | serve hot food and beverages, including coffee, soup,
and
other |
8 | | items, and replacement parts for these machines.
Beginning |
9 | | January 1,
2002 and through June 30, 2003, machines and parts |
10 | | for machines used in
commercial, coin-operated amusement and |
11 | | vending business if a use or occupation
tax is paid on the |
12 | | gross receipts derived from the use of the commercial,
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13 | | coin-operated amusement and vending machines.
This
paragraph
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14 | | is exempt from the provisions of Section 3-90.
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15 | | (30) Beginning January 1, 2001 and through June 30, 2016, |
16 | | food for human consumption that is to be consumed off the |
17 | | premises
where it is sold (other than alcoholic beverages, soft |
18 | | drinks, and food that
has been prepared for immediate |
19 | | consumption) and prescription and
nonprescription medicines, |
20 | | drugs, medical appliances, and insulin, urine
testing |
21 | | materials, syringes, and needles used by diabetics, for human |
22 | | use, when
purchased for use by a person receiving medical |
23 | | assistance under Article V of
the Illinois Public Aid Code who |
24 | | resides in a licensed long-term care facility,
as defined in |
25 | | the Nursing Home Care Act, or in a licensed facility as defined |
26 | | in the ID/DD Community Care Act or the Specialized Mental |
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1 | | Health Rehabilitation Act.
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2 | | (31) Beginning on
the effective date of this amendatory Act |
3 | | of the 92nd General Assembly,
computers and communications |
4 | | equipment
utilized for any hospital purpose and equipment used |
5 | | in the diagnosis,
analysis, or treatment of hospital patients |
6 | | purchased by a lessor who leases
the equipment, under a lease |
7 | | of one year or longer executed or in effect at the
time the |
8 | | lessor would otherwise be subject to the tax imposed by this |
9 | | Act, to a
hospital that has been issued an active tax exemption |
10 | | identification number by
the Department under Section 1g of the |
11 | | Retailers' Occupation Tax Act. If the
equipment is leased in a |
12 | | manner that does not qualify for this exemption or is
used in |
13 | | any other nonexempt manner, the lessor shall be liable for the |
14 | | tax
imposed under this Act or the Service Use Tax Act, as the |
15 | | case may be, based on
the fair market value of the property at |
16 | | the time the nonqualifying use
occurs. No lessor shall collect |
17 | | or attempt to collect an amount (however
designated) that |
18 | | purports to reimburse that lessor for the tax imposed by this
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19 | | Act or the Service Use Tax Act, as the case may be, if the tax |
20 | | has not been
paid by the lessor. If a lessor improperly |
21 | | collects any such amount from the
lessee, the lessee shall have |
22 | | a legal right to claim a refund of that amount
from the lessor. |
23 | | If, however, that amount is not refunded to the lessee for
any |
24 | | reason, the lessor is liable to pay that amount to the |
25 | | Department.
This paragraph is exempt from the provisions of |
26 | | Section 3-90.
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1 | | (32) Beginning on
the effective date of this amendatory Act |
2 | | of the 92nd General Assembly,
personal property purchased by a |
3 | | lessor who leases the property,
under a lease of one year or |
4 | | longer executed or in effect at the time the
lessor would |
5 | | otherwise be subject to the tax imposed by this Act, to a
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6 | | governmental body that has been issued an active sales tax |
7 | | exemption
identification number by the Department under |
8 | | Section 1g of the Retailers'
Occupation Tax Act. If the |
9 | | property is leased in a manner that does not
qualify for this |
10 | | exemption or used in any other nonexempt manner, the lessor
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11 | | shall be liable for the tax imposed under this Act or the |
12 | | Service Use Tax Act,
as the case may be, based on the fair |
13 | | market value of the property at the time
the nonqualifying use |
14 | | occurs. No lessor shall collect or attempt to collect
an amount |
15 | | (however designated) that purports to reimburse that lessor for |
16 | | the
tax imposed by this Act or the Service Use Tax Act, as the |
17 | | case may be, if the
tax has not been paid by the lessor. If a |
18 | | lessor improperly collects any such
amount from the lessee, the |
19 | | lessee shall have a legal right to claim a refund
of that |
20 | | amount from the lessor. If, however, that amount is not |
21 | | refunded to
the lessee for any reason, the lessor is liable to |
22 | | pay that amount to the
Department. This paragraph is exempt |
23 | | from the provisions of Section 3-90.
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24 | | (33) On and after July 1, 2003 and through June 30, 2004, |
25 | | the use in this State of motor vehicles of
the second division |
26 | | with a gross vehicle weight in excess of 8,000 pounds and
that |
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1 | | are subject to the commercial distribution fee imposed under |
2 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July |
3 | | 1, 2004 and through June 30, 2005, the use in this State of |
4 | | motor vehicles of the second division: (i) with a gross vehicle |
5 | | weight rating in excess of 8,000 pounds; (ii) that are subject |
6 | | to the commercial distribution fee imposed under Section |
7 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are |
8 | | primarily used for commercial purposes. Through June 30, 2005, |
9 | | this exemption applies to repair and
replacement parts added |
10 | | after the initial purchase of such a motor vehicle if
that |
11 | | motor
vehicle is used in a manner that would qualify for the |
12 | | rolling stock exemption
otherwise provided for in this Act. For |
13 | | purposes of this paragraph, the term "used for commercial |
14 | | purposes" means the transportation of persons or property in |
15 | | furtherance of any commercial or industrial enterprise, |
16 | | whether for-hire or not.
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17 | | (34) Beginning January 1, 2008, tangible personal property |
18 | | used in the construction or maintenance of a community water |
19 | | supply, as defined under Section 3.145 of the Environmental |
20 | | Protection Act, that is operated by a not-for-profit |
21 | | corporation that holds a valid water supply permit issued under |
22 | | Title IV of the Environmental Protection Act. This paragraph is |
23 | | exempt from the provisions of Section 3-90. |
24 | | (35) Beginning January 1, 2010, materials, parts, |
25 | | equipment, components, and furnishings incorporated into or |
26 | | upon an aircraft as part of the modification, refurbishment, |
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1 | | completion, replacement, repair, or maintenance of the |
2 | | aircraft. This exemption includes consumable supplies used in |
3 | | the modification, refurbishment, completion, replacement, |
4 | | repair, and maintenance of aircraft, but excludes any |
5 | | materials, parts, equipment, components, and consumable |
6 | | supplies used in the modification, replacement, repair, and |
7 | | maintenance of aircraft engines or power plants, whether such |
8 | | engines or power plants are installed or uninstalled upon any |
9 | | such aircraft. "Consumable supplies" include, but are not |
10 | | limited to, adhesive, tape, sandpaper, general purpose |
11 | | lubricants, cleaning solution, latex gloves, and protective |
12 | | films. This exemption applies only to those organizations that |
13 | | (i) hold an Air Agency Certificate and are empowered to operate |
14 | | an approved repair station by the Federal Aviation |
15 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
16 | | operations in accordance with Part 145 of the Federal Aviation |
17 | | Regulations. The exemption does not include aircraft operated |
18 | | by a commercial air carrier providing scheduled passenger air |
19 | | service pursuant to authority issued under Part 121 or Part 129 |
20 | | of the Federal Aviation Regulations. |
21 | | (36) Tangible personal property purchased by a |
22 | | public-facilities corporation, as described in Section |
23 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
24 | | constructing or furnishing a municipal convention hall, but |
25 | | only if the legal title to the municipal convention hall is |
26 | | transferred to the municipality without any further |
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1 | | consideration by or on behalf of the municipality at the time |
2 | | of the completion of the municipal convention hall or upon the |
3 | | retirement or redemption of any bonds or other debt instruments |
4 | | issued by the public-facilities corporation in connection with |
5 | | the development of the municipal convention hall. This |
6 | | exemption includes existing public-facilities corporations as |
7 | | provided in Section 11-65-25 of the Illinois Municipal Code. |
8 | | This paragraph is exempt from the provisions of Section 3-90. |
9 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; |
10 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. |
11 | | 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. |
12 | | 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
|
13 | | Section 10. The Retailers' Occupation Tax Act is amended by |
14 | | changing Section 2-5 as follows:
|
15 | | (35 ILCS 120/2-5)
|
16 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the |
17 | | sale of
the following tangible personal property are exempt |
18 | | from the tax imposed
by this Act:
|
19 | | (1) Farm chemicals.
|
20 | | (2) Farm machinery and equipment, both new and used, |
21 | | including that
manufactured on special order, certified by the |
22 | | purchaser to be used
primarily for production agriculture or |
23 | | State or federal agricultural
programs, including individual |
24 | | replacement parts for the machinery and
equipment, including |
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1 | | machinery and equipment purchased for lease,
and including |
2 | | implements of husbandry defined in Section 1-130 of
the |
3 | | Illinois Vehicle Code, farm machinery and agricultural |
4 | | chemical and
fertilizer spreaders, and nurse wagons required to |
5 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
|
6 | | but
excluding other motor vehicles required to be registered |
7 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or |
8 | | hoop houses used for propagating, growing, or
overwintering |
9 | | plants shall be considered farm machinery and equipment under
|
10 | | this item (2).
Agricultural chemical tender tanks and dry boxes |
11 | | shall include units sold
separately from a motor vehicle |
12 | | required to be licensed and units sold mounted
on a motor |
13 | | vehicle required to be licensed, if the selling price of the |
14 | | tender
is separately stated.
|
15 | | Farm machinery and equipment shall include precision |
16 | | farming equipment
that is
installed or purchased to be |
17 | | installed on farm machinery and equipment
including, but not |
18 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
19 | | or spreaders.
Precision farming equipment includes, but is not |
20 | | limited to,
soil testing sensors, computers, monitors, |
21 | | software, global positioning
and mapping systems, and other |
22 | | such equipment.
|
23 | | Farm machinery and equipment also includes computers, |
24 | | sensors, software, and
related equipment used primarily in the
|
25 | | computer-assisted operation of production agriculture |
26 | | facilities, equipment,
and activities such as, but
not limited |
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1 | | to,
the collection, monitoring, and correlation of
animal and |
2 | | crop data for the purpose of
formulating animal diets and |
3 | | agricultural chemicals. This item (2) is exempt
from the |
4 | | provisions of
Section 2-70.
|
5 | | (3) Until July 1, 2003, distillation machinery and |
6 | | equipment, sold as a
unit or kit,
assembled or installed by the |
7 | | retailer, certified by the user to be used
only for the |
8 | | production of ethyl alcohol that will be used for consumption
|
9 | | as motor fuel or as a component of motor fuel for the personal |
10 | | use of the
user, and not subject to sale or resale.
|
11 | | (4) Until July 1, 2003 and beginning again September 1, |
12 | | 2004 through August 30, 2014, graphic arts machinery and |
13 | | equipment, including
repair and
replacement parts, both new and |
14 | | used, and including that manufactured on
special order or |
15 | | purchased for lease, certified by the purchaser to be used
|
16 | | primarily for graphic arts production.
Equipment includes |
17 | | chemicals or
chemicals acting as catalysts but only if
the |
18 | | chemicals or chemicals acting as catalysts effect a direct and |
19 | | immediate
change upon a
graphic arts product.
|
20 | | (5) A motor vehicle of the first division, a motor vehicle |
21 | | of the second division that is a self contained motor vehicle |
22 | | designed or permanently converted to provide living quarters |
23 | | for recreational, camping, or travel use, with direct walk |
24 | | through access to the living quarters from the driver's seat, |
25 | | or a motor vehicle of the second division that is of the van |
26 | | configuration designed for the transportation of not less than |
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1 | | 7 nor more than 16 passengers, as defined in Section 1-146 of |
2 | | the Illinois Vehicle Code, that is used for automobile renting, |
3 | | as defined in the Automobile Renting Occupation and Use Tax |
4 | | Act. This paragraph is exempt from
the provisions of Section |
5 | | 2-70.
|
6 | | (6) Personal property sold by a teacher-sponsored student |
7 | | organization
affiliated with an elementary or secondary school |
8 | | located in Illinois.
|
9 | | (7) Until July 1, 2003, proceeds of that portion of the |
10 | | selling price of
a passenger car the
sale of which is subject |
11 | | to the Replacement Vehicle Tax.
|
12 | | (8) Personal property sold to an Illinois county fair |
13 | | association for
use in conducting, operating, or promoting the |
14 | | county fair.
|
15 | | (9) Personal property sold to a not-for-profit arts
or |
16 | | cultural organization that establishes, by proof required by |
17 | | the Department
by
rule, that it has received an exemption under |
18 | | Section 501(c)(3) of the
Internal Revenue Code and that is |
19 | | organized and operated primarily for the
presentation
or |
20 | | support of arts or cultural programming, activities, or |
21 | | services. These
organizations include, but are not limited to, |
22 | | music and dramatic arts
organizations such as symphony |
23 | | orchestras and theatrical groups, arts and
cultural service |
24 | | organizations, local arts councils, visual arts organizations,
|
25 | | and media arts organizations.
On and after the effective date |
26 | | of this amendatory Act of the 92nd General
Assembly, however, |
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1 | | an entity otherwise eligible for this exemption shall not
make |
2 | | tax-free purchases unless it has an active identification |
3 | | number issued by
the Department.
|
4 | | (10) 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 | | (11) Personal property sold to a governmental body, to a |
12 | | corporation,
society, association, foundation, or institution |
13 | | organized and operated
exclusively for charitable, religious, |
14 | | or educational purposes, or to a
not-for-profit corporation, |
15 | | society, association, foundation, institution,
or organization |
16 | | that has no compensated officers or employees and that is
|
17 | | organized and operated primarily for the recreation of persons |
18 | | 55 years of
age or older. A limited liability company may |
19 | | qualify for the exemption under
this paragraph only if the |
20 | | limited liability company is organized and operated
|
21 | | exclusively for educational purposes. On and after July 1, |
22 | | 1987, however, no
entity otherwise eligible for this exemption |
23 | | shall make tax-free purchases
unless it has an active |
24 | | identification number issued by the Department.
|
25 | | (12) Tangible personal property sold to
interstate |
26 | | carriers
for hire for use as
rolling stock moving in interstate |
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1 | | commerce or to lessors under leases of
one year or longer |
2 | | executed or in effect at the time of purchase by
interstate |
3 | | carriers for hire for use as rolling stock moving in interstate
|
4 | | commerce and equipment operated by a telecommunications |
5 | | provider, licensed as a
common carrier by the Federal |
6 | | Communications Commission, which is permanently
installed in |
7 | | or affixed to aircraft moving in interstate commerce.
|
8 | | (12-5) On and after July 1, 2003 and through June 30, 2004, |
9 | | motor vehicles of the second division
with a gross vehicle |
10 | | weight in excess of 8,000 pounds
that
are
subject to the |
11 | | commercial distribution fee imposed under Section 3-815.1 of
|
12 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and |
13 | | through June 30, 2005, the use in this State of motor vehicles |
14 | | of the second division: (i) with a gross vehicle weight rating |
15 | | in excess of 8,000 pounds; (ii) that are subject to the |
16 | | commercial distribution fee imposed under Section 3-815.1 of |
17 | | the Illinois Vehicle Code; and (iii) that are primarily used |
18 | | for commercial purposes. Through June 30, 2005, this
exemption |
19 | | applies to repair and replacement parts added
after the
initial |
20 | | purchase of such a motor vehicle if that motor vehicle is used |
21 | | in a
manner that
would qualify for the rolling stock exemption |
22 | | otherwise provided for in this
Act. For purposes of this |
23 | | paragraph, "used for commercial purposes" means the |
24 | | transportation of persons or property in furtherance of any |
25 | | commercial or industrial enterprise whether for-hire or not.
|
26 | | (13) Proceeds from sales to owners, lessors, or
shippers of
|
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1 | | tangible personal property that is utilized by interstate |
2 | | carriers for
hire for use as rolling stock moving in interstate |
3 | | commerce
and equipment operated by a telecommunications |
4 | | provider, licensed as a
common carrier by the Federal |
5 | | Communications Commission, which is
permanently installed in |
6 | | or affixed to aircraft moving in interstate commerce.
|
7 | | (14) Machinery and equipment that will be used by the |
8 | | purchaser, or a
lessee of the purchaser, primarily in the |
9 | | process of manufacturing or
assembling tangible personal |
10 | | property for wholesale or retail sale or
lease, whether the |
11 | | sale or lease is made directly by the manufacturer or by
some |
12 | | other person, whether the materials used in the process are |
13 | | owned by
the manufacturer or some other person, or whether the |
14 | | sale or lease is made
apart from or as an incident to the |
15 | | seller's engaging in the service
occupation of producing |
16 | | machines, tools, dies, jigs, patterns, gauges, or
other similar |
17 | | items of no commercial value on special order for a particular
|
18 | | purchaser.
|
19 | | (15) Proceeds of mandatory service charges separately |
20 | | stated on
customers' bills for purchase and consumption of food |
21 | | and beverages, to the
extent that the proceeds of the service |
22 | | charge are in fact turned over as
tips or as a substitute for |
23 | | tips to the employees who participate directly
in preparing, |
24 | | serving, hosting or cleaning up the food or beverage function
|
25 | | with respect to which the service charge is imposed.
|
26 | | (16) Petroleum products sold to a purchaser if the seller
|
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1 | | is prohibited by federal law from charging tax to the |
2 | | purchaser.
|
3 | | (17) Tangible personal property sold to a common carrier by |
4 | | rail or
motor that
receives the physical possession of the |
5 | | property in Illinois and that
transports the property, or |
6 | | shares with another common carrier in the
transportation of the |
7 | | property, out of Illinois on a standard uniform bill
of lading |
8 | | showing the seller of the property as the shipper or consignor |
9 | | of
the property to a destination outside Illinois, for use |
10 | | outside Illinois.
|
11 | | (18) Legal tender, currency, medallions, or gold or silver |
12 | | coinage
issued by the State of Illinois, the government of the |
13 | | United States of
America, or the government of any foreign |
14 | | country, and bullion.
|
15 | | (19) 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 | | (20) Photoprocessing machinery and equipment, including |
25 | | repair and
replacement parts, both new and used, including that |
26 | | manufactured on
special order, certified by the purchaser to be |
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1 | | used primarily for
photoprocessing, and including |
2 | | photoprocessing machinery and equipment
purchased for lease.
|
3 | | (21) Until July 1, 2003, and beginning again on the |
4 | | effective date of this amendatory Act of the 97th General |
5 | | Assembly and thereafter, coal and aggregate exploration, |
6 | | mining, offhighway hauling,
processing,
maintenance, and |
7 | | reclamation equipment, including
replacement parts and |
8 | | equipment, and including
equipment purchased for lease, but |
9 | | excluding motor vehicles required to be
registered under the |
10 | | Illinois Vehicle Code.
|
11 | | (22) Fuel and petroleum products sold to or used by an air |
12 | | carrier,
certified by the carrier to be used for consumption, |
13 | | shipment, or storage
in the conduct of its business as an air |
14 | | common carrier, for a flight
destined for or returning from a |
15 | | location or locations
outside the United States without regard |
16 | | to previous or subsequent domestic
stopovers.
|
17 | | (23) A transaction in which the purchase order is received |
18 | | by a florist
who is located outside Illinois, but who has a |
19 | | florist located in Illinois
deliver the property to the |
20 | | purchaser or the purchaser's donee in Illinois.
|
21 | | (24) Fuel consumed or used in the operation of ships, |
22 | | barges, or vessels
that are used primarily in or for the |
23 | | transportation of property or the
conveyance of persons for |
24 | | hire on rivers bordering on this State if the
fuel is delivered |
25 | | by the seller to the purchaser's barge, ship, or vessel
while |
26 | | it is afloat upon that bordering river.
|
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1 | | (25) Except as provided in item (25-5) of this Section, a
|
2 | | motor vehicle sold in this State to a nonresident even though |
3 | | the
motor vehicle is delivered to the nonresident in this |
4 | | State, if the motor
vehicle is not to be titled in this State, |
5 | | and if a drive-away permit
is issued to the motor vehicle as |
6 | | provided in Section 3-603 of the Illinois
Vehicle Code or if |
7 | | the nonresident purchaser has vehicle registration
plates to |
8 | | transfer to the motor vehicle upon returning to his or her home
|
9 | | state. The issuance of the drive-away permit or having
the
|
10 | | out-of-state registration plates to be transferred is prima |
11 | | facie evidence
that the motor vehicle will not be titled in |
12 | | this State.
|
13 | | (25-5) The exemption under item (25) does not apply if the |
14 | | state in which the motor vehicle will be titled does not allow |
15 | | a reciprocal exemption for a motor vehicle sold and delivered |
16 | | in that state to an Illinois resident but titled in Illinois. |
17 | | The tax collected under this Act on the sale of a motor vehicle |
18 | | in this State to a resident of another state that does not |
19 | | allow a reciprocal exemption shall be imposed at a rate equal |
20 | | to the state's rate of tax on taxable property in the state in |
21 | | which the purchaser is a resident, except that the tax shall |
22 | | not exceed the tax that would otherwise be imposed under this |
23 | | Act. At the time of the sale, the purchaser shall execute a |
24 | | statement, signed under penalty of perjury, of his or her |
25 | | intent to title the vehicle in the state in which the purchaser |
26 | | is a resident within 30 days after the sale and of the fact of |
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1 | | the payment to the State of Illinois of tax in an amount |
2 | | equivalent to the state's rate of tax on taxable property in |
3 | | his or her state of residence and shall submit the statement to |
4 | | the appropriate tax collection agency in his or her state of |
5 | | residence. In addition, the retailer must retain a signed copy |
6 | | of the statement in his or her records. Nothing in this item |
7 | | shall be construed to require the removal of the vehicle from |
8 | | this state following the filing of an intent to title the |
9 | | vehicle in the purchaser's state of residence if the purchaser |
10 | | titles the vehicle in his or her state of residence within 30 |
11 | | days after the date of sale. The tax collected under this Act |
12 | | in accordance with this item (25-5) shall be proportionately |
13 | | distributed as if the tax were collected at the 6.25% general |
14 | | rate imposed under this Act.
|
15 | | (25-7) Beginning on July 1, 2007, no tax is imposed under |
16 | | this Act on the sale of an aircraft, as defined in Section 3 of |
17 | | the Illinois Aeronautics Act, if all of the following |
18 | | conditions are met: |
19 | | (1) the aircraft leaves this State within 15 days after |
20 | | the later of either the issuance of the final billing for |
21 | | the sale of the aircraft, or the authorized approval for |
22 | | return to service, completion of the maintenance record |
23 | | entry, and completion of the test flight and ground test |
24 | | for inspection, as required by 14 C.F.R. 91.407; |
25 | | (2) the aircraft is not based or registered in this |
26 | | State after the sale of the aircraft; and |
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1 | | (3) the seller retains in his or her books and records |
2 | | and provides to the Department a signed and dated |
3 | | certification from the purchaser, on a form prescribed by |
4 | | the Department, certifying that the requirements of this |
5 | | item (25-7) are met. The certificate must also include the |
6 | | name and address of the purchaser, the address of the |
7 | | location where the aircraft is to be titled or registered, |
8 | | the address of the primary physical location of the |
9 | | aircraft, and other information that the Department may |
10 | | reasonably require. |
11 | | For purposes of this item (25-7): |
12 | | "Based in this State" means hangared, stored, or otherwise |
13 | | used, excluding post-sale customizations as defined in this |
14 | | Section, for 10 or more days in each 12-month period |
15 | | immediately following the date of the sale of the aircraft. |
16 | | "Registered in this State" means an aircraft registered |
17 | | with the Department of Transportation, Aeronautics Division, |
18 | | or titled or registered with the Federal Aviation |
19 | | Administration to an address located in this State. |
20 | | This paragraph (25-7) is exempt from the provisions
of
|
21 | | Section 2-70.
|
22 | | (26) Semen used for artificial insemination of livestock |
23 | | for direct
agricultural production.
|
24 | | (27) Horses, or interests in horses, registered with and |
25 | | meeting the
requirements of any of the
Arabian Horse Club |
26 | | Registry of America, Appaloosa Horse Club, American Quarter
|
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1 | | Horse Association, United States
Trotting Association, or |
2 | | Jockey Club, as appropriate, used for
purposes of breeding or |
3 | | racing for prizes. This item (27) is exempt from the provisions |
4 | | of Section 2-70, and the exemption provided for under this item |
5 | | (27) applies for all periods beginning May 30, 1995, but no |
6 | | claim for credit or refund is allowed on or after January 1, |
7 | | 2008 (the effective date of Public Act 95-88)
for such taxes |
8 | | paid during the period beginning May 30, 2000 and ending on |
9 | | January 1, 2008 (the effective date of Public Act 95-88).
|
10 | | (28) Computers and communications equipment utilized for |
11 | | any
hospital
purpose
and equipment used in the diagnosis,
|
12 | | analysis, or treatment of hospital patients sold to a lessor |
13 | | who leases the
equipment, under a lease of one year or longer |
14 | | executed or in effect at the
time of the purchase, to a
|
15 | | hospital
that has been issued an active tax exemption |
16 | | identification number by the
Department under Section 1g of |
17 | | this Act.
|
18 | | (29) Personal property sold to a lessor who leases the
|
19 | | property, under a
lease of one year or longer executed or in |
20 | | effect at the time of the purchase,
to a governmental body
that |
21 | | has been issued an active tax exemption identification number |
22 | | by the
Department under Section 1g of this Act.
|
23 | | (30) Beginning with taxable years ending on or after |
24 | | December
31, 1995
and
ending with taxable years ending on or |
25 | | before December 31, 2004,
personal property that is
donated for |
26 | | disaster relief to be used in a State or federally declared
|
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1 | | disaster area in Illinois or bordering Illinois by a |
2 | | manufacturer or retailer
that is registered in this State to a |
3 | | corporation, society, association,
foundation, or institution |
4 | | that has been issued a sales tax exemption
identification |
5 | | number by the Department that assists victims of the disaster
|
6 | | who reside within the declared disaster area.
|
7 | | (31) Beginning with taxable years ending on or after |
8 | | December
31, 1995 and
ending with taxable years ending on or |
9 | | before December 31, 2004, personal
property that is used in the |
10 | | performance of infrastructure repairs in this
State, including |
11 | | but not limited to municipal roads and streets, access roads,
|
12 | | bridges, sidewalks, waste disposal systems, water and sewer |
13 | | line extensions,
water distribution and purification |
14 | | facilities, storm water drainage and
retention facilities, and |
15 | | sewage treatment facilities, resulting from a State
or |
16 | | federally declared disaster in Illinois or bordering Illinois |
17 | | when such
repairs are initiated on facilities located in the |
18 | | declared disaster area
within 6 months after the disaster.
|
19 | | (32) Beginning July 1, 1999, game or game birds sold at a |
20 | | "game breeding
and
hunting preserve area" as that term is used
|
21 | | in the
Wildlife Code. This paragraph is exempt from the |
22 | | provisions
of
Section 2-70.
|
23 | | (33) A motor vehicle, as that term is defined in Section |
24 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
25 | | corporation, limited liability
company, society, association, |
26 | | foundation, or institution that is determined by
the Department |
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1 | | to be organized and operated exclusively for educational
|
2 | | purposes. For purposes of this exemption, "a corporation, |
3 | | limited liability
company, society, association, foundation, |
4 | | or institution organized and
operated
exclusively for |
5 | | educational purposes" means all tax-supported public schools,
|
6 | | private schools that offer systematic instruction in useful |
7 | | branches of
learning by methods common to public schools and |
8 | | that compare favorably in
their scope and intensity with the |
9 | | course of study presented in tax-supported
schools, and |
10 | | vocational or technical schools or institutes organized and
|
11 | | operated exclusively to provide a course of study of not less |
12 | | than 6 weeks
duration and designed to prepare individuals to |
13 | | follow a trade or to pursue a
manual, technical, mechanical, |
14 | | industrial, business, or commercial
occupation.
|
15 | | (34) Beginning January 1, 2000, personal property, |
16 | | including food, purchased
through fundraising events for the |
17 | | benefit of a public or private elementary or
secondary school, |
18 | | a group of those schools, or one or more school districts if
|
19 | | the events are sponsored by an entity recognized by the school |
20 | | district that
consists primarily of volunteers and includes |
21 | | parents and teachers of the
school children. This paragraph |
22 | | does not apply to fundraising events (i) for
the benefit of |
23 | | private home instruction or (ii) for which the fundraising
|
24 | | entity purchases the personal property sold at the events from |
25 | | another
individual or entity that sold the property for the |
26 | | purpose of resale by the
fundraising entity and that profits |
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1 | | from the sale to the fundraising entity.
This paragraph is |
2 | | exempt from the provisions of Section 2-70.
|
3 | | (35) Beginning January 1, 2000 and through December 31, |
4 | | 2001, new or used
automatic vending machines that prepare and |
5 | | serve hot food and beverages,
including coffee, soup, and other |
6 | | items, and replacement parts for these
machines. Beginning |
7 | | January 1, 2002 and through June 30, 2003, machines
and parts |
8 | | for machines used in
commercial, coin-operated amusement and |
9 | | vending business if a use or occupation
tax is paid on the |
10 | | gross receipts derived from the use of the commercial,
|
11 | | coin-operated amusement and vending machines. This paragraph |
12 | | is exempt from
the provisions of Section 2-70.
|
13 | | (35-5) Beginning August 23, 2001 and through June 30, 2016, |
14 | | food for human consumption that is to be consumed off
the |
15 | | premises where it is sold (other than alcoholic beverages, soft |
16 | | drinks,
and food that has been prepared for immediate |
17 | | consumption) and prescription
and nonprescription medicines, |
18 | | drugs, medical appliances, and insulin, urine
testing |
19 | | materials, syringes, and needles used by diabetics, for human |
20 | | use, when
purchased for use by a person receiving medical |
21 | | assistance under Article V of
the Illinois Public Aid Code who |
22 | | resides in a licensed long-term care facility,
as defined in |
23 | | the Nursing Home Care Act, or a licensed facility as defined in |
24 | | the ID/DD Community Care Act or the Specialized Mental Health |
25 | | Rehabilitation Act.
|
26 | | (36) Beginning August 2, 2001, computers and |
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1 | | communications equipment
utilized for any hospital purpose and |
2 | | equipment used in the diagnosis,
analysis, or treatment of |
3 | | hospital patients sold to a lessor who leases the
equipment, |
4 | | under a lease of one year or longer executed or in effect at |
5 | | the
time of the purchase, to a hospital that has been issued an |
6 | | active tax
exemption identification number by the Department |
7 | | under Section 1g of this Act.
This paragraph is exempt from the |
8 | | provisions of Section 2-70.
|
9 | | (37) Beginning August 2, 2001, personal property sold to a |
10 | | lessor who
leases the property, under a lease of one year or |
11 | | longer executed or in effect
at the time of the purchase, to a |
12 | | governmental body that has been issued an
active tax exemption |
13 | | identification number by the Department under Section 1g
of |
14 | | this Act. This paragraph is exempt from the provisions of |
15 | | Section 2-70.
|
16 | | (38) Beginning on January 1, 2002 and through June 30, |
17 | | 2016, tangible personal property purchased
from an Illinois |
18 | | retailer by a taxpayer engaged in centralized purchasing
|
19 | | activities in Illinois who will, upon receipt of the property |
20 | | in Illinois,
temporarily store the property in Illinois (i) for |
21 | | the purpose of subsequently
transporting it outside this State |
22 | | for use or consumption thereafter solely
outside this State or |
23 | | (ii) for the purpose of being processed, fabricated, or
|
24 | | manufactured into, attached to, or incorporated into other |
25 | | tangible personal
property to be transported outside this State |
26 | | and thereafter used or consumed
solely outside this State. The |
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1 | | Director of Revenue shall, pursuant to rules
adopted in |
2 | | accordance with the Illinois Administrative Procedure Act, |
3 | | issue a
permit to any taxpayer in good standing with the |
4 | | Department who is eligible for
the exemption under this |
5 | | paragraph (38). The permit issued under
this paragraph (38) |
6 | | shall authorize the holder, to the extent and
in the manner |
7 | | specified in the rules adopted under this Act, to purchase
|
8 | | tangible personal property from a retailer exempt from the |
9 | | taxes imposed by
this Act. Taxpayers shall maintain all |
10 | | necessary books and records to
substantiate the use and |
11 | | consumption of all such tangible personal property
outside of |
12 | | the State of Illinois.
|
13 | | (39) Beginning January 1, 2008, tangible personal property |
14 | | used in the construction or maintenance of a community water |
15 | | supply, as defined under Section 3.145 of the Environmental |
16 | | Protection Act, that is operated by a not-for-profit |
17 | | corporation that holds a valid water supply permit issued under |
18 | | Title IV of the Environmental Protection Act. This paragraph is |
19 | | exempt from the provisions of Section 2-70.
|
20 | | (40) 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 |
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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 | | (41) Tangible personal property sold to 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 |
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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 2-70. |
5 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; |
6 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. |
7 | | 7-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. |
8 | | 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. |
9 | | 7-9-12.)
|
10 | | Section 15. The Automobile Renting Occupation and Use Tax |
11 | | Act is amended by changing Section 2 as follows:
|
12 | | (35 ILCS 155/2) (from Ch. 120, par. 1702)
|
13 | | Sec. 2. Definitions. "Renting" means any transfer of the |
14 | | possession
or right to possession of an automobile to a user |
15 | | for a valuable consideration
for a period of one year or less.
|
16 | | "Renting" does not include making a charge for the use of |
17 | | an
automobile where the rentor, either himself or through an |
18 | | agent, furnishes a
service of operating an automobile so that |
19 | | the rentor remains in possession of
the automobile, because |
20 | | this does not constitute a transfer of possession
or right to |
21 | | possession of the automobile.
|
22 | | "Renting" does not include the making of a charge by an
|
23 | | automobile dealer for the use of an automobile as a |
24 | | demonstrator in connection
with the dealer's business of |
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1 | | selling, where the charge is merely made to
recover the costs |
2 | | of operating the automobile as a demonstrator and is not
|
3 | | intended as a rental or leasing charge in the ordinary sense.
|
4 | | "Automobile" means (1) any motor vehicle of the first |
5 | | division, or (2) a motor vehicle
of the second division which : |
6 | | (A) is a self-contained motor vehicle designed or
permanently |
7 | | converted to provide living quarters for recreational, camping |
8 | | or
travel use, with direct walk through access to the living |
9 | | quarters from the
driver's seat ; (B) is , or a motor vehicle of |
10 | | the second division which is of the van
configuration designed |
11 | | for the transportation of not less than 7 nor more than
16 |
12 | | passengers, as defined in Section 1-146 of the Illinois Vehicle
|
13 | | Code ; or (C) has a weight of 8,000 pounds or less .
|
14 | | "Department" means the Department of Revenue.
|
15 | | "Person" means any natural individual, firm, partnership, |
16 | | association,
joint stock company, joint adventure, public or |
17 | | private corporation, limited
liability company, or a receiver, |
18 | | executor, trustee, conservator or other
representative |
19 | | appointed by order of any court.
|
20 | | "Rentor" means any person, firm, corporation or |
21 | | association engaged in
the business of renting or leasing |
22 | | automobiles to users. For this purpose,
the objective of making |
23 | | a profit is not necessary to make the renting activity
a |
24 | | business.
|
25 | | "Rentee" means any user to whom the possession, or the |
26 | | right to possession,
of an automobile is transferred for a |
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1 | | valuable consideration for a period
of one year or less, |
2 | | whether paid for by the "rentee" or by someone else.
|
3 | | "Gross receipts" from the renting of tangible personal |
4 | | property or
"rent" means the total rental price or leasing |
5 | | price. In the case of
rental transactions in which the |
6 | | consideration is paid to the rentor on an
installment basis, |
7 | | the amounts of such payments shall be included by the rentor
in |
8 | | gross receipts or rent only as and when payments are received |
9 | | by the rentor.
|
10 | | "Gross receipts" does not include receipts received by an |
11 | | automobile dealer
from a manufacturer or service contract |
12 | | provider
for the use of an automobile by a person while that |
13 | | person's automobile is
being repaired by that automobile dealer |
14 | | and the repair is made pursuant to a
manufacturer's warranty or |
15 | | a service contract where a manufacturer or service
contract |
16 | | provider reimburses that automobile dealer pursuant to a
|
17 | | manufacturer's warranty or a service contract and the |
18 | | reimbursement is merely
made
to recover the costs of operating |
19 | | the automobile as a loaner vehicle.
|
20 | | "Rental price" means the consideration for renting or |
21 | | leasing an automobile
valued in money, whether received in |
22 | | money or otherwise, including cash
credits, property and |
23 | | services, and shall be determined without any deduction
on |
24 | | account of the cost of the property rented, the cost of |
25 | | materials used,
labor or service cost, or any other expense |
26 | | whatsoever, but does not
include charges that are added by a |
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1 | | rentor on account of the
rentor's tax liability under this Act |
2 | | or on account of the rentor's duty
to collect, from the rentee, |
3 | | the tax that is imposed by Section 4 of this Act.
The phrase |
4 | | "rental price" does not include compensation paid to a rentor |
5 | | by a
rentee in consideration of the waiver by the rentor of any |
6 | | right of action or
claim against the rentee for loss or damage |
7 | | to the automobile
rented and also does not include a separately |
8 | | stated charge for insurance or
recovery of refueling costs or |
9 | | other separately stated charges that are not for
the use of |
10 | | tangible personal property.
|
11 | | (Source: P.A. 90-14, eff. 7-1-97; 91-193, eff. 7-20-99.)
|
12 | | Section 99. Effective date. This Act takes effect January |
13 | | 1, 2014.
|