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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 Service Use Tax Act is amended by changing | ||||||||||||||||||||||||||||
5 | Sections 3-5 and 3-10 as follows:
| ||||||||||||||||||||||||||||
6 | (35 ILCS 110/3-5)
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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:
| ||||||||||||||||||||||||||||
9 | (1) Personal property purchased from a corporation, | ||||||||||||||||||||||||||||
10 | society,
association, foundation, institution, or | ||||||||||||||||||||||||||||
11 | organization, other than a limited
liability company, that is | ||||||||||||||||||||||||||||
12 | organized and operated as a not-for-profit service
enterprise | ||||||||||||||||||||||||||||
13 | for the benefit of persons 65 years of age or older if the | ||||||||||||||||||||||||||||
14 | personal
property was not purchased by the enterprise for the | ||||||||||||||||||||||||||||
15 | purpose of resale by the
enterprise.
| ||||||||||||||||||||||||||||
16 | (2) Personal property purchased by a non-profit Illinois | ||||||||||||||||||||||||||||
17 | county fair
association for use in conducting, operating, or | ||||||||||||||||||||||||||||
18 | promoting the county fair.
| ||||||||||||||||||||||||||||
19 | (3) Personal property purchased by a not-for-profit arts
or | ||||||||||||||||||||||||||||
20 | cultural
organization that establishes, by proof required by | ||||||||||||||||||||||||||||
21 | the Department by rule,
that it has received an exemption under | ||||||||||||||||||||||||||||
22 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||||||||||||||||||||||||
23 | organized and operated primarily for the
presentation
or |
| |||||||
| |||||||
1 | support of arts or cultural programming, activities, or | ||||||
2 | services. These
organizations include, but are not limited to, | ||||||
3 | music and dramatic arts
organizations such as symphony | ||||||
4 | orchestras and theatrical groups, arts and
cultural service | ||||||
5 | organizations, local arts councils, visual arts organizations,
| ||||||
6 | and media arts organizations.
On and after the effective date | ||||||
7 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
8 | an entity otherwise eligible for this exemption shall not
make | ||||||
9 | tax-free purchases unless it has an active identification | ||||||
10 | number issued by
the Department.
| ||||||
11 | (4) 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 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
16 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
17 | equipment, including
repair and
replacement parts, both new and | ||||||
18 | used, and including that manufactured on
special order or | ||||||
19 | purchased for lease, certified by the purchaser to be used
| ||||||
20 | primarily for graphic arts production.
Equipment includes | ||||||
21 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
22 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
23 | immediate
change upon a graphic arts product. Beginning on July | ||||||
24 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
25 | the manufacturing and assembling machinery and equipment | ||||||
26 | exemption under Section 2 of this Act.
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1 | (6) Personal property purchased from a teacher-sponsored | ||||||
2 | student
organization affiliated with an elementary or | ||||||
3 | secondary school located
in Illinois.
| ||||||
4 | (7) Farm machinery and equipment, both new and used, | ||||||
5 | including that
manufactured on special order, certified by the | ||||||
6 | purchaser to be used
primarily for production agriculture or | ||||||
7 | State or federal agricultural
programs, including individual | ||||||
8 | replacement parts for the machinery and
equipment, including | ||||||
9 | machinery and equipment purchased for lease,
and including | ||||||
10 | implements of husbandry defined in Section 1-130 of
the | ||||||
11 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
12 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
13 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
14 | but
excluding other motor vehicles required to be registered | ||||||
15 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
16 | hoop houses used for propagating, growing, or
overwintering | ||||||
17 | plants shall be considered farm machinery and equipment under
| ||||||
18 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
19 | shall include units sold
separately from a motor vehicle | ||||||
20 | required to be licensed and units sold mounted
on a motor | ||||||
21 | vehicle required to be licensed if the selling price of the | ||||||
22 | tender
is separately stated.
| ||||||
23 | Farm machinery and equipment shall include precision | ||||||
24 | farming equipment
that is
installed or purchased to be | ||||||
25 | installed on farm machinery and equipment
including, but not | ||||||
26 | limited to, tractors, harvesters, sprayers, planters,
seeders, |
| |||||||
| |||||||
1 | or spreaders.
Precision farming equipment includes, but is not | ||||||
2 | limited to,
soil testing sensors, computers, monitors, | ||||||
3 | software, global positioning
and mapping systems, and other | ||||||
4 | such equipment.
| ||||||
5 | Farm machinery and equipment also includes computers, | ||||||
6 | sensors, software, and
related equipment used primarily in the
| ||||||
7 | computer-assisted operation of production agriculture | ||||||
8 | facilities, equipment,
and activities such as, but
not limited | ||||||
9 | to,
the collection, monitoring, and correlation of
animal and | ||||||
10 | crop data for the purpose of
formulating animal diets and | ||||||
11 | agricultural chemicals. This item (7) is exempt
from the | ||||||
12 | provisions of
Section 3-75.
| ||||||
13 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
14 | to or used by an air common
carrier, certified by the carrier | ||||||
15 | to be used for consumption, shipment, or
storage in the conduct | ||||||
16 | of its business as an air common carrier, for a
flight destined | ||||||
17 | for or returning from a location or locations
outside the | ||||||
18 | United States without regard to previous or subsequent domestic
| ||||||
19 | stopovers.
| ||||||
20 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
21 | or used by an air carrier, certified by the carrier to be used | ||||||
22 | for consumption, shipment, or storage in the conduct of its | ||||||
23 | business as an air common carrier, for a flight that (i) is | ||||||
24 | engaged in foreign trade or is engaged in trade between the | ||||||
25 | United States and any of its possessions and (ii) transports at | ||||||
26 | least one individual or package for hire from the city of |
| |||||||
| |||||||
1 | origination to the city of final destination on the same | ||||||
2 | aircraft, without regard to a change in the flight number of | ||||||
3 | that aircraft. | ||||||
4 | (9) Proceeds of mandatory service charges separately | ||||||
5 | stated on
customers' bills for the purchase and consumption of | ||||||
6 | food and beverages
acquired as an incident to the purchase of a | ||||||
7 | service from a serviceman, to
the extent that the proceeds of | ||||||
8 | the service charge are in fact
turned over as tips or as a | ||||||
9 | substitute for tips to the employees who
participate directly | ||||||
10 | in preparing, serving, hosting or cleaning up the
food or | ||||||
11 | beverage function with respect to which the service charge is | ||||||
12 | imposed.
| ||||||
13 | (10) 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 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
23 | and
equipment, including repair and replacement parts, both new | ||||||
24 | and
used, including that manufactured on special order, | ||||||
25 | certified by the
purchaser to be used primarily for | ||||||
26 | photoprocessing, and including
photoprocessing machinery and |
| |||||||
| |||||||
1 | equipment purchased for lease.
| ||||||
2 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
3 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
4 | including
replacement parts and equipment, and including
| ||||||
5 | equipment purchased for lease, but excluding motor vehicles | ||||||
6 | required to be
registered under the Illinois Vehicle Code. The | ||||||
7 | changes made to this Section by Public Act 97-767 apply on and | ||||||
8 | after July 1, 2003, but no claim for credit or refund is | ||||||
9 | allowed on or after August 16, 2013 (the effective date of | ||||||
10 | Public Act 98-456)
for such taxes paid during the period | ||||||
11 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
12 | effective date of Public Act 98-456).
| ||||||
13 | (13) Semen used for artificial insemination of livestock | ||||||
14 | for direct
agricultural production.
| ||||||
15 | (14) Horses, or interests in horses, registered with and | ||||||
16 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
17 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
18 | Horse Association, United States
Trotting Association, or | ||||||
19 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
20 | racing for prizes. This item (14) is exempt from the provisions | ||||||
21 | of Section 3-75, and the exemption provided for under this item | ||||||
22 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
23 | claim for credit or refund is allowed on or after the effective | ||||||
24 | date of this amendatory Act of the 95th General Assembly for | ||||||
25 | such taxes paid during the period beginning May 30, 2000 and | ||||||
26 | ending on the effective date of this amendatory Act of the 95th |
| |||||||
| |||||||
1 | General Assembly.
| ||||||
2 | (15) Computers and communications equipment utilized for | ||||||
3 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
4 | analysis, or treatment of hospital patients purchased by a | ||||||
5 | lessor who leases
the
equipment, under a lease of one year or | ||||||
6 | longer executed or in effect at the
time
the lessor would | ||||||
7 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
8 | hospital
that has been issued an active tax exemption | ||||||
9 | identification number by the
Department under Section 1g of the | ||||||
10 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
11 | manner that does not qualify for
this exemption
or is used in | ||||||
12 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
13 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
14 | be, based on the fair market value of the property at the time | ||||||
15 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
16 | attempt to collect an
amount (however
designated) that purports | ||||||
17 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
18 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
19 | the lessor. If a lessor improperly collects any such amount | ||||||
20 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
21 | refund of that amount
from the lessor. If, however, that amount | ||||||
22 | is not refunded to the lessee for
any reason, the lessor is | ||||||
23 | liable to pay that amount to the Department.
| ||||||
24 | (16) Personal property purchased by a lessor who leases the
| ||||||
25 | property, under
a
lease of one year or longer executed or in | ||||||
26 | effect at the time
the lessor would otherwise be subject to the |
| |||||||
| |||||||
1 | tax imposed by this Act,
to a governmental body
that has been | ||||||
2 | issued an active tax exemption identification number by the
| ||||||
3 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
4 | Act.
If the
property is leased in a manner that does not | ||||||
5 | qualify for
this exemption
or is used in any other non-exempt | ||||||
6 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
7 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
8 | fair market value of the property at the time the
| ||||||
9 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
10 | to collect an
amount (however
designated) that purports to | ||||||
11 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
12 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
13 | the lessor. If a lessor improperly collects any such amount | ||||||
14 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
15 | refund of that amount
from the lessor. If, however, that amount | ||||||
16 | is not refunded to the lessee for
any reason, the lessor is | ||||||
17 | liable to pay that amount to the Department.
| ||||||
18 | (17) Beginning with taxable years ending on or after | ||||||
19 | December
31,
1995
and
ending with taxable years ending on or | ||||||
20 | before December 31, 2004,
personal property that is
donated for | ||||||
21 | disaster relief to be used in a State or federally declared
| ||||||
22 | disaster area in Illinois or bordering Illinois by a | ||||||
23 | manufacturer or retailer
that is registered in this State to a | ||||||
24 | corporation, society, association,
foundation, or institution | ||||||
25 | that has been issued a sales tax exemption
identification | ||||||
26 | number by the Department that assists victims of the disaster
|
| |||||||
| |||||||
1 | who reside within the declared disaster area.
| ||||||
2 | (18) Beginning with taxable years ending on or after | ||||||
3 | December
31, 1995 and
ending with taxable years ending on or | ||||||
4 | before December 31, 2004, personal
property that is used in the | ||||||
5 | performance of infrastructure repairs in this
State, including | ||||||
6 | but not limited to municipal roads and streets, access roads,
| ||||||
7 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
8 | line extensions,
water distribution and purification | ||||||
9 | facilities, storm water drainage and
retention facilities, and | ||||||
10 | sewage treatment facilities, resulting from a State
or | ||||||
11 | federally declared disaster in Illinois or bordering Illinois | ||||||
12 | when such
repairs are initiated on facilities located in the | ||||||
13 | declared disaster area
within 6 months after the disaster.
| ||||||
14 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
15 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
16 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
17 | provisions
of
Section 3-75.
| ||||||
18 | (20) A motor vehicle, as that term is defined in Section | ||||||
19 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
20 | corporation, limited liability
company, society, association, | ||||||
21 | foundation, or institution that is determined by
the Department | ||||||
22 | to be organized and operated exclusively for educational
| ||||||
23 | purposes. For purposes of this exemption, "a corporation, | ||||||
24 | limited liability
company, society, association, foundation, | ||||||
25 | or institution organized and
operated
exclusively for | ||||||
26 | educational purposes" means all tax-supported public schools,
|
| |||||||
| |||||||
1 | private schools that offer systematic instruction in useful | ||||||
2 | branches of
learning by methods common to public schools and | ||||||
3 | that compare favorably in
their scope and intensity with the | ||||||
4 | course of study presented in tax-supported
schools, and | ||||||
5 | vocational or technical schools or institutes organized and
| ||||||
6 | operated exclusively to provide a course of study of not less | ||||||
7 | than 6 weeks
duration and designed to prepare individuals to | ||||||
8 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
9 | industrial, business, or commercial
occupation.
| ||||||
10 | (21) Beginning January 1, 2000, personal property, | ||||||
11 | including
food,
purchased through fundraising
events for the | ||||||
12 | benefit of
a public or private elementary or
secondary school, | ||||||
13 | a group of those schools, or one or more school
districts if | ||||||
14 | the events are
sponsored by an entity recognized by the school | ||||||
15 | district that consists
primarily of volunteers and includes
| ||||||
16 | parents and teachers of the school children. This paragraph | ||||||
17 | does not apply
to fundraising
events (i) for the benefit of | ||||||
18 | private home instruction or (ii)
for which the fundraising | ||||||
19 | entity purchases the personal property sold at
the events from | ||||||
20 | another individual or entity that sold the property for the
| ||||||
21 | purpose of resale by the fundraising entity and that
profits | ||||||
22 | from the sale to the
fundraising entity. This paragraph is | ||||||
23 | exempt
from the provisions
of Section 3-75.
| ||||||
24 | (22) Beginning January 1, 2000
and through December 31, | ||||||
25 | 2001, new or used automatic vending
machines that prepare and | ||||||
26 | serve hot food and beverages, including coffee, soup,
and
other |
| |||||||
| |||||||
1 | items, and replacement parts for these machines.
Beginning | ||||||
2 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
3 | for machines used in
commercial, coin-operated
amusement
and | ||||||
4 | vending business if a use or occupation tax is paid on the | ||||||
5 | gross receipts
derived from
the use of the commercial, | ||||||
6 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
7 | is exempt from the provisions of Section 3-75.
| ||||||
8 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
9 | food for human consumption that is to be consumed off the
| ||||||
10 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
11 | drinks, and food that
has been prepared for immediate | ||||||
12 | consumption) and prescription and
nonprescription medicines, | ||||||
13 | drugs, medical appliances, and insulin, urine
testing | ||||||
14 | materials, syringes, and needles used by diabetics, for human | ||||||
15 | use, when
purchased for use by a person receiving medical | ||||||
16 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
17 | resides in a licensed long-term care facility,
as defined in | ||||||
18 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
19 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
20 | Specialized Mental Health Rehabilitation Act of 2013 , in an | ||||||
21 | establishment as defined in the Assisted Living and Shared | ||||||
22 | Housing Act, or in a supportive living facility under the | ||||||
23 | supportive living facilities program of the Illinois Public Aid | ||||||
24 | Code .
| ||||||
25 | (24) Beginning on the effective date of this amendatory Act | ||||||
26 | of the 92nd
General Assembly, computers and communications |
| |||||||
| |||||||
1 | equipment
utilized for any hospital purpose and equipment used | ||||||
2 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
3 | purchased by a lessor who leases
the equipment, under a lease | ||||||
4 | of one year or longer executed or in effect at the
time the | ||||||
5 | lessor would otherwise be subject to the tax imposed by this | ||||||
6 | Act, to a
hospital that has been issued an active tax exemption | ||||||
7 | identification number by
the Department under Section 1g of the | ||||||
8 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
9 | manner that does not qualify for this exemption or is
used in | ||||||
10 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
11 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
12 | be, based on the
fair market value of the property at the time | ||||||
13 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
14 | attempt to collect an amount (however
designated) that purports | ||||||
15 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
16 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
17 | the lessor. If a lessor improperly collects any such amount | ||||||
18 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
19 | refund of that amount
from the lessor. If, however, that amount | ||||||
20 | is not refunded to the lessee for
any reason, the lessor is | ||||||
21 | liable to pay that amount to the Department.
This paragraph is | ||||||
22 | exempt from the provisions of Section 3-75.
| ||||||
23 | (25) Beginning
on the effective date of this amendatory Act | ||||||
24 | of the 92nd General Assembly,
personal property purchased by a | ||||||
25 | lessor
who leases the property, under a lease of one year or | ||||||
26 | longer executed or in
effect at the time the lessor would |
| |||||||
| |||||||
1 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
2 | governmental body that has been issued an active tax exemption
| ||||||
3 | identification number by the Department under Section 1g of the | ||||||
4 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
5 | manner that does not
qualify for this exemption or is used in | ||||||
6 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
7 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
8 | be, based on the fair market value of the property at the time
| ||||||
9 | the nonqualifying use occurs. No lessor shall collect or | ||||||
10 | attempt to collect
an amount (however designated) that purports | ||||||
11 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
12 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
13 | the lessor. If a lessor improperly collects any such amount
| ||||||
14 | from the lessee, the lessee shall have a legal right to claim a | ||||||
15 | refund of that
amount from the lessor. If, however, that amount | ||||||
16 | is not refunded to the lessee
for any reason, the lessor is | ||||||
17 | liable to pay that amount to the Department.
This paragraph is | ||||||
18 | exempt from the provisions of Section 3-75.
| ||||||
19 | (26) Beginning January 1, 2008, tangible personal property | ||||||
20 | used in the construction or maintenance of a community water | ||||||
21 | supply, as defined under Section 3.145 of the Environmental | ||||||
22 | Protection Act, that is operated by a not-for-profit | ||||||
23 | corporation that holds a valid water supply permit issued under | ||||||
24 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
25 | exempt from the provisions of Section 3-75.
| ||||||
26 | (27) Beginning January 1, 2010, materials, parts, |
| |||||||
| |||||||
1 | equipment, components, and furnishings incorporated into or | ||||||
2 | upon an aircraft as part of the modification, refurbishment, | ||||||
3 | completion, replacement, repair, or maintenance of the | ||||||
4 | aircraft. This exemption includes consumable supplies used in | ||||||
5 | the modification, refurbishment, completion, replacement, | ||||||
6 | repair, and maintenance of aircraft, but excludes any | ||||||
7 | materials, parts, equipment, components, and consumable | ||||||
8 | supplies used in the modification, replacement, repair, and | ||||||
9 | maintenance of aircraft engines or power plants, whether such | ||||||
10 | engines or power plants are installed or uninstalled upon any | ||||||
11 | such aircraft. "Consumable supplies" include, but are not | ||||||
12 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
13 | lubricants, cleaning solution, latex gloves, and protective | ||||||
14 | films. This exemption applies only to the use of qualifying | ||||||
15 | tangible personal property transferred incident to the | ||||||
16 | modification, refurbishment, completion, replacement, repair, | ||||||
17 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
18 | Agency Certificate and are empowered to operate an approved | ||||||
19 | repair station by the Federal Aviation Administration, (ii) | ||||||
20 | have a Class IV Rating, and (iii) conduct operations in | ||||||
21 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
22 | The exemption does not include aircraft operated by a | ||||||
23 | commercial air carrier providing scheduled passenger air | ||||||
24 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
25 | of the Federal Aviation Regulations. The changes made to this | ||||||
26 | paragraph (27) by Public Act 98-534 are declarative of existing |
| |||||||
| |||||||
1 | law. | ||||||
2 | (28) Tangible personal property purchased by a | ||||||
3 | public-facilities corporation, as described in Section | ||||||
4 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
5 | constructing or furnishing a municipal convention hall, but | ||||||
6 | only if the legal title to the municipal convention hall is | ||||||
7 | transferred to the municipality without any further | ||||||
8 | consideration by or on behalf of the municipality at the time | ||||||
9 | of the completion of the municipal convention hall or upon the | ||||||
10 | retirement or redemption of any bonds or other debt instruments | ||||||
11 | issued by the public-facilities corporation in connection with | ||||||
12 | the development of the municipal convention hall. This | ||||||
13 | exemption includes existing public-facilities corporations as | ||||||
14 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
15 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
16 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
17 | and menstrual cups. | ||||||
18 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
19 | 100-22, eff. 7-6-17.)
| ||||||
20 | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| ||||||
21 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
22 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
23 | the selling
price of tangible personal property transferred as | ||||||
24 | an incident to the sale
of service, but, for the purpose of | ||||||
25 | computing this tax, in no event shall
the selling price be less |
| |||||||
| |||||||
1 | than the cost price of the property to the
serviceman.
| ||||||
2 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
3 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
4 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
5 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||||||
6 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
7 | tax imposed
by this Act applies to (i) 70% of the selling price | ||||||
8 | of property transferred
as an incident to the sale of service | ||||||
9 | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | ||||||
10 | of the selling price of
property transferred as an incident to | ||||||
11 | the sale of service on or after July
1, 2003 and on or before | ||||||
12 | July 1, 2017, and (iii)
100% of the selling price thereafter.
| ||||||
13 | If, at any time, however, the tax under this Act on sales of | ||||||
14 | gasohol, as
defined in
the Use Tax Act, is imposed at the rate | ||||||
15 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
16 | the proceeds of sales of gasohol
made during that time.
| ||||||
17 | With respect to majority blended ethanol fuel, as defined | ||||||
18 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
19 | to the selling price of property transferred
as an incident to | ||||||
20 | the sale of service on or after July 1, 2003 and on or before
| ||||||
21 | December 31, 2023 but applies to 100% of the selling price | ||||||
22 | thereafter.
| ||||||
23 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
24 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
25 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
26 | of property transferred as an incident
to the sale of service |
| |||||||
| |||||||
1 | on or after July 1, 2003 and on or before December 31, 2018
and | ||||||
2 | (ii) 100% of the proceeds of the selling price
thereafter.
If, | ||||||
3 | at any time, however, the tax under this Act on sales of | ||||||
4 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
5 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
6 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
7 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
8 | and no more than 10% biodiesel
made
during that time.
| ||||||
9 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
10 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
11 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
12 | by this Act
does not apply to the proceeds of the selling price | ||||||
13 | of property transferred
as an incident to the sale of service | ||||||
14 | on or after July 1, 2003 and on or before
December 31, 2023 but | ||||||
15 | applies to 100% of the selling price thereafter.
| ||||||
16 | At the election of any registered serviceman made for each | ||||||
17 | fiscal year,
sales of service in which the aggregate annual | ||||||
18 | cost price of tangible
personal property transferred as an | ||||||
19 | incident to the sales of service is
less than 35%, or 75% in | ||||||
20 | the case of servicemen transferring prescription
drugs or | ||||||
21 | servicemen engaged in graphic arts production, of the aggregate
| ||||||
22 | annual total gross receipts from all sales of service, the tax | ||||||
23 | imposed by
this Act shall be based on the serviceman's cost | ||||||
24 | price of the tangible
personal property transferred as an | ||||||
25 | incident to the sale of those services.
| ||||||
26 | The tax shall be imposed at the rate of 1% on food prepared |
| |||||||
| |||||||
1 | for
immediate consumption and transferred incident to a sale of | ||||||
2 | service subject
to this Act or the Service Occupation Tax Act | ||||||
3 | by an entity licensed under
the Hospital Licensing Act, the | ||||||
4 | Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD | ||||||
5 | Act, the Specialized Mental Health Rehabilitation Act of 2013, | ||||||
6 | or the
Child Care
Act of 1969 , the Assisted Living and Shared | ||||||
7 | Housing Act, or the supportive living facilities program of the | ||||||
8 | Illinois Public Aid Code . The tax shall
also be imposed at the | ||||||
9 | rate of 1% on food for human consumption that is to be
consumed | ||||||
10 | off the premises where it is sold (other than alcoholic | ||||||
11 | beverages,
soft drinks, and food that has been prepared for | ||||||
12 | immediate consumption and is
not otherwise included in this | ||||||
13 | paragraph) and prescription and nonprescription
medicines, | ||||||
14 | drugs, medical appliances, products classified as Class III | ||||||
15 | medical devices by the United States Food and Drug | ||||||
16 | Administration that are used for cancer treatment pursuant to a | ||||||
17 | prescription, as well as any accessories and components related | ||||||
18 | to those devices, modifications to a motor vehicle for the
| ||||||
19 | purpose of rendering it usable by a person with a disability, | ||||||
20 | and insulin, urine testing
materials,
syringes, and needles | ||||||
21 | used by diabetics, for
human use. For the purposes of this | ||||||
22 | Section, until September 1, 2009: the term "soft drinks" means | ||||||
23 | any
complete, finished, ready-to-use, non-alcoholic drink, | ||||||
24 | whether carbonated or
not, including but not limited to soda | ||||||
25 | water, cola, fruit juice, vegetable
juice, carbonated water, | ||||||
26 | and all other preparations commonly known as soft
drinks of |
| |||||||
| |||||||
1 | whatever kind or description that are contained in any closed | ||||||
2 | or
sealed bottle, can, carton, or container, regardless of | ||||||
3 | size; but "soft drinks"
does not include coffee, tea, | ||||||
4 | non-carbonated water, infant formula, milk or
milk products as | ||||||
5 | defined in the Grade A Pasteurized Milk and Milk Products Act,
| ||||||
6 | or drinks containing 50% or more natural fruit or vegetable | ||||||
7 | juice.
| ||||||
8 | Notwithstanding any other provisions of this
Act, | ||||||
9 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
10 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
11 | drinks" do not include beverages that contain milk or milk | ||||||
12 | products, soy, rice or similar milk substitutes, or greater | ||||||
13 | than 50% of vegetable or fruit juice by volume. | ||||||
14 | Until August 1, 2009, and notwithstanding any other | ||||||
15 | provisions of this Act, "food for human
consumption that is to | ||||||
16 | be consumed off the premises where it is sold" includes
all | ||||||
17 | food sold through a vending machine, except soft drinks and | ||||||
18 | food products
that are dispensed hot from a vending machine, | ||||||
19 | regardless of the location of
the vending machine. Beginning | ||||||
20 | August 1, 2009, and notwithstanding any other provisions of | ||||||
21 | this Act, "food for human consumption that is to be consumed | ||||||
22 | off the premises where it is sold" includes all food sold | ||||||
23 | through a vending machine, except soft drinks, candy, and food | ||||||
24 | products that are dispensed hot from a vending machine, | ||||||
25 | regardless of the location of the vending machine.
| ||||||
26 | Notwithstanding any other provisions of this
Act, |
| |||||||
| |||||||
1 | beginning September 1, 2009, "food for human consumption that | ||||||
2 | is to be consumed off the premises where
it is sold" does not | ||||||
3 | include candy. For purposes of this Section, "candy" means a | ||||||
4 | preparation of sugar, honey, or other natural or artificial | ||||||
5 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
6 | ingredients or flavorings in the form of bars, drops, or | ||||||
7 | pieces. "Candy" does not include any preparation that contains | ||||||
8 | flour or requires refrigeration. | ||||||
9 | Notwithstanding any other provisions of this
Act, | ||||||
10 | beginning September 1, 2009, "nonprescription medicines and | ||||||
11 | drugs" does not include grooming and hygiene products. For | ||||||
12 | purposes of this Section, "grooming and hygiene products" | ||||||
13 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
14 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
15 | lotions and screens, unless those products are available by | ||||||
16 | prescription only, regardless of whether the products meet the | ||||||
17 | definition of "over-the-counter-drugs". For the purposes of | ||||||
18 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
19 | use that contains a label that identifies the product as a drug | ||||||
20 | as required by 21 C.F.R. ยง 201.66. The "over-the-counter-drug" | ||||||
21 | label includes: | ||||||
22 | (A) A "Drug Facts" panel; or | ||||||
23 | (B) A statement of the "active ingredient(s)" with a | ||||||
24 | list of those ingredients contained in the compound, | ||||||
25 | substance or preparation. | ||||||
26 | Beginning on January 1, 2014 (the effective date of Public |
| |||||||
| |||||||
1 | Act 98-122), "prescription and nonprescription medicines and | ||||||
2 | drugs" includes medical cannabis purchased from a registered | ||||||
3 | dispensing organization under the Compassionate Use of Medical | ||||||
4 | Cannabis Pilot Program Act. | ||||||
5 | If the property that is acquired from a serviceman is | ||||||
6 | acquired outside
Illinois and used outside Illinois before | ||||||
7 | being brought to Illinois for use
here and is taxable under | ||||||
8 | this Act, the "selling price" on which the tax
is computed | ||||||
9 | shall be reduced by an amount that represents a reasonable
| ||||||
10 | allowance for depreciation for the period of prior out-of-state | ||||||
11 | use.
| ||||||
12 | (Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15; | ||||||
13 | 99-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff. | ||||||
14 | 7-6-17.) | ||||||
15 | Section 10. The Service Occupation Tax Act is amended by | ||||||
16 | changing Section 3-5 as follows:
| ||||||
17 | (35 ILCS 115/3-5)
| ||||||
18 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
19 | property is
exempt from the tax imposed by this Act:
| ||||||
20 | (1) Personal property sold by a corporation, society, | ||||||
21 | association,
foundation, institution, or organization, other | ||||||
22 | than a limited liability
company, that is organized and | ||||||
23 | operated as a not-for-profit service enterprise
for the benefit | ||||||
24 | of persons 65 years of age or older if the personal property
|
| |||||||
| |||||||
1 | was not purchased by the enterprise for the purpose of resale | ||||||
2 | 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 any not-for-profit
arts | ||||||
7 | or 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) Legal tender, currency, medallions, or gold or silver | ||||||
22 | coinage
issued by the State of Illinois, the government of the | ||||||
23 | United States of
America, or the government of any foreign | ||||||
24 | country, and bullion.
| ||||||
25 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
26 | 2004 through August 30, 2014, graphic arts machinery and |
| |||||||
| |||||||
1 | equipment, including
repair and
replacement parts, both new and | ||||||
2 | used, and including that manufactured on
special order or | ||||||
3 | purchased for lease, certified by the purchaser to be used
| ||||||
4 | primarily for graphic arts production.
Equipment includes | ||||||
5 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
6 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
7 | immediate change
upon a graphic arts product. Beginning on July | ||||||
8 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
9 | the manufacturing and assembling machinery and equipment | ||||||
10 | exemption under Section 2 of this Act.
| ||||||
11 | (6) Personal property sold by a teacher-sponsored student | ||||||
12 | organization
affiliated with an elementary or secondary school | ||||||
13 | located in Illinois.
| ||||||
14 | (7) Farm machinery and equipment, both new and used, | ||||||
15 | including that
manufactured on special order, certified by the | ||||||
16 | purchaser to be used
primarily for production agriculture or | ||||||
17 | State or federal agricultural
programs, including individual | ||||||
18 | replacement parts for the machinery and
equipment, including | ||||||
19 | machinery and equipment purchased for lease,
and including | ||||||
20 | implements of husbandry defined in Section 1-130 of
the | ||||||
21 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
22 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
23 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
24 | but
excluding other motor vehicles required to be registered | ||||||
25 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
26 | hoop houses used for propagating, growing, or
overwintering |
| |||||||
| |||||||
1 | plants shall be considered farm machinery and equipment under
| ||||||
2 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
3 | shall include units sold
separately from a motor vehicle | ||||||
4 | required to be licensed and units sold mounted
on a motor | ||||||
5 | vehicle required to be licensed if the selling price of the | ||||||
6 | tender
is separately stated.
| ||||||
7 | Farm machinery and equipment shall include precision | ||||||
8 | farming equipment
that is
installed or purchased to be | ||||||
9 | installed on farm machinery and equipment
including, but not | ||||||
10 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
11 | or spreaders.
Precision farming equipment includes, but is not | ||||||
12 | limited to,
soil testing sensors, computers, monitors, | ||||||
13 | software, global positioning
and mapping systems, and other | ||||||
14 | such equipment.
| ||||||
15 | Farm machinery and equipment also includes computers, | ||||||
16 | sensors, software, and
related equipment used primarily in the
| ||||||
17 | computer-assisted operation of production agriculture | ||||||
18 | facilities, equipment,
and activities such as, but
not limited | ||||||
19 | to,
the collection, monitoring, and correlation of
animal and | ||||||
20 | crop data for the purpose of
formulating animal diets and | ||||||
21 | agricultural chemicals. This item (7) is exempt
from the | ||||||
22 | provisions of
Section 3-55.
| ||||||
23 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
24 | to or used by an air common
carrier, certified by the carrier | ||||||
25 | to be used for consumption, shipment,
or storage in the conduct | ||||||
26 | of its business as an air common carrier, for
a flight destined |
| |||||||
| |||||||
1 | for or returning from a location or locations
outside the | ||||||
2 | United States without regard to previous or subsequent domestic
| ||||||
3 | stopovers.
| ||||||
4 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
5 | or used by an air carrier, certified by the carrier to be used | ||||||
6 | for consumption, shipment, or storage in the conduct of its | ||||||
7 | business as an air common carrier, for a flight that (i) is | ||||||
8 | engaged in foreign trade or is engaged in trade between the | ||||||
9 | United States and any of its possessions and (ii) transports at | ||||||
10 | least one individual or package for hire from the city of | ||||||
11 | origination to the city of final destination on the same | ||||||
12 | aircraft, without regard to a change in the flight number of | ||||||
13 | that aircraft. | ||||||
14 | (9) Proceeds of mandatory service charges separately
| ||||||
15 | stated on customers' bills for the purchase and consumption of | ||||||
16 | food and
beverages, to the extent that the proceeds of the | ||||||
17 | service charge are in fact
turned over as tips or as a | ||||||
18 | substitute for tips to the employees who
participate directly | ||||||
19 | in preparing, serving, hosting or cleaning up the
food or | ||||||
20 | beverage function with respect to which the service charge is | ||||||
21 | imposed.
| ||||||
22 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
23 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
24 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
25 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
26 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any |
| |||||||
| |||||||
1 | individual replacement part for oil field exploration,
| ||||||
2 | drilling, and production equipment, and (vi) machinery and | ||||||
3 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
4 | required to be registered under the Illinois
Vehicle Code.
| ||||||
5 | (11) Photoprocessing machinery and equipment, including | ||||||
6 | repair and
replacement parts, both new and used, including that | ||||||
7 | manufactured on
special order, certified by the purchaser to be | ||||||
8 | used primarily for
photoprocessing, and including | ||||||
9 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
10 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
11 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
12 | including
replacement parts and equipment, and including
| ||||||
13 | equipment
purchased for lease, but excluding motor vehicles | ||||||
14 | required to be registered
under the Illinois Vehicle Code. The | ||||||
15 | changes made to this Section by Public Act 97-767 apply on and | ||||||
16 | after July 1, 2003, but no claim for credit or refund is | ||||||
17 | allowed on or after August 16, 2013 (the effective date of | ||||||
18 | Public Act 98-456)
for such taxes paid during the period | ||||||
19 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
20 | effective date of Public Act 98-456).
| ||||||
21 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
22 | food for human consumption that is to be consumed off the | ||||||
23 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
24 | drinks and food that
has been prepared for immediate | ||||||
25 | consumption) and prescription and
non-prescription medicines, | ||||||
26 | drugs, medical appliances, and insulin, urine
testing |
| |||||||
| |||||||
1 | materials, syringes, and needles used by diabetics, for human | ||||||
2 | use,
when purchased for use by a person receiving medical | ||||||
3 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
4 | resides in a licensed
long-term care facility, as defined in | ||||||
5 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
6 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
7 | Specialized Mental Health Rehabilitation Act of 2013 , in an | ||||||
8 | establishment as defined in the Assisted Living and Shared | ||||||
9 | Housing Act, or in a supportive living facility under the | ||||||
10 | supportive living facilities program of the Illinois Public Aid | ||||||
11 | Code .
| ||||||
12 | (14) Semen used for artificial insemination of livestock | ||||||
13 | for direct
agricultural production.
| ||||||
14 | (15) Horses, or interests in horses, registered with and | ||||||
15 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
16 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
17 | Horse Association, United States
Trotting Association, or | ||||||
18 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
19 | racing for prizes. This item (15) is exempt from the provisions | ||||||
20 | of Section 3-55, and the exemption provided for under this item | ||||||
21 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
22 | claim for credit or refund is allowed on or after January 1, | ||||||
23 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
24 | paid during the period beginning May 30, 2000 and ending on | ||||||
25 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
26 | (16) Computers and communications equipment utilized for |
| |||||||
| |||||||
1 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
2 | analysis, or treatment of hospital patients sold to a lessor | ||||||
3 | who leases the
equipment, under a lease of one year or longer | ||||||
4 | executed or in effect at the
time of the purchase, 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.
| ||||||
8 | (17) Personal property sold to a lessor who leases the
| ||||||
9 | property, under a
lease of one year or longer executed or in | ||||||
10 | effect at the time of the purchase,
to a governmental body
that | ||||||
11 | has been issued an active tax exemption identification number | ||||||
12 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
13 | Tax Act.
| ||||||
14 | (18) Beginning with taxable years ending on or after | ||||||
15 | December
31, 1995
and
ending with taxable years ending on or | ||||||
16 | before December 31, 2004,
personal property that is
donated for | ||||||
17 | disaster relief to be used in a State or federally declared
| ||||||
18 | disaster area in Illinois or bordering Illinois by a | ||||||
19 | manufacturer or retailer
that is registered in this State to a | ||||||
20 | corporation, society, association,
foundation, or institution | ||||||
21 | that has been issued a sales tax exemption
identification | ||||||
22 | number by the Department that assists victims of the disaster
| ||||||
23 | who reside within the declared disaster area.
| ||||||
24 | (19) 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 used in the |
| |||||||
| |||||||
1 | performance of infrastructure repairs in this
State, including | ||||||
2 | but not limited to municipal roads and streets, access roads,
| ||||||
3 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
4 | line extensions,
water distribution and purification | ||||||
5 | facilities, storm water drainage and
retention facilities, and | ||||||
6 | sewage treatment facilities, resulting from a State
or | ||||||
7 | federally declared disaster in Illinois or bordering Illinois | ||||||
8 | when such
repairs are initiated on facilities located in the | ||||||
9 | declared disaster area
within 6 months after the disaster.
| ||||||
10 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
11 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
12 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
13 | provisions
of
Section 3-55.
| ||||||
14 | (21) A motor vehicle, as that term is defined in Section | ||||||
15 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
16 | corporation, limited liability
company, society, association, | ||||||
17 | foundation, or institution that is determined by
the Department | ||||||
18 | to be organized and operated exclusively for educational
| ||||||
19 | purposes. For purposes of this exemption, "a corporation, | ||||||
20 | limited liability
company, society, association, foundation, | ||||||
21 | or institution organized and
operated
exclusively for | ||||||
22 | educational purposes" means all tax-supported public schools,
| ||||||
23 | private schools that offer systematic instruction in useful | ||||||
24 | branches of
learning by methods common to public schools and | ||||||
25 | that compare favorably in
their scope and intensity with the | ||||||
26 | course of study presented in tax-supported
schools, and |
| |||||||
| |||||||
1 | vocational or technical schools or institutes organized and
| ||||||
2 | operated exclusively to provide a course of study of not less | ||||||
3 | than 6 weeks
duration and designed to prepare individuals to | ||||||
4 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
5 | industrial, business, or commercial
occupation.
| ||||||
6 | (22) Beginning January 1, 2000, personal property, | ||||||
7 | including
food,
purchased through fundraising
events for the | ||||||
8 | benefit of
a public or private elementary or
secondary school, | ||||||
9 | a group of those schools, or one or more school
districts if | ||||||
10 | the events are
sponsored by an entity recognized by the school | ||||||
11 | district that consists
primarily of volunteers and includes
| ||||||
12 | parents and teachers of the school children. This paragraph | ||||||
13 | does not apply
to fundraising
events (i) for the benefit of | ||||||
14 | private home instruction or (ii)
for which the fundraising | ||||||
15 | entity purchases the personal property sold at
the events from | ||||||
16 | another individual or entity that sold the property for the
| ||||||
17 | purpose of resale by the fundraising entity and that
profits | ||||||
18 | from the sale to the
fundraising entity. This paragraph is | ||||||
19 | exempt
from the provisions
of Section 3-55.
| ||||||
20 | (23) Beginning January 1, 2000
and through December 31, | ||||||
21 | 2001, new or used automatic vending
machines that prepare and | ||||||
22 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
23 | items, and replacement parts for these machines.
Beginning | ||||||
24 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
25 | for
machines used in commercial, coin-operated amusement
and | ||||||
26 | vending business if a use or occupation tax is paid on the |
| |||||||
| |||||||
1 | gross receipts
derived from
the use of the commercial, | ||||||
2 | coin-operated amusement and vending machines.
This paragraph | ||||||
3 | is exempt from the provisions of Section 3-55.
| ||||||
4 | (24) Beginning
on the effective date of this amendatory Act | ||||||
5 | of the 92nd General Assembly,
computers and communications | ||||||
6 | equipment
utilized for any hospital purpose and equipment used | ||||||
7 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
8 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
9 | year or longer executed or in effect at the
time of the | ||||||
10 | purchase, to a hospital that has been issued an active tax
| ||||||
11 | exemption identification number by the Department under | ||||||
12 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
13 | is exempt from the provisions of
Section 3-55.
| ||||||
14 | (25) Beginning
on the effective date of this amendatory Act | ||||||
15 | of the 92nd General Assembly,
personal property sold to a | ||||||
16 | lessor who
leases the property, under a lease of one year or | ||||||
17 | longer executed or in effect
at the time of the purchase, to a | ||||||
18 | governmental body that has been issued an
active tax exemption | ||||||
19 | identification number by the Department under Section 1g
of the | ||||||
20 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
21 | the
provisions of Section 3-55.
| ||||||
22 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
23 | 2016, tangible personal property
purchased
from an Illinois | ||||||
24 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
25 | activities in Illinois who will, upon receipt of the property | ||||||
26 | in Illinois,
temporarily store the property in Illinois (i) for |
| |||||||
| |||||||
1 | the purpose of subsequently
transporting it outside this State | ||||||
2 | for use or consumption thereafter solely
outside this State or | ||||||
3 | (ii) for the purpose of being processed, fabricated, or
| ||||||
4 | manufactured into, attached to, or incorporated into other | ||||||
5 | tangible personal
property to be transported outside this State | ||||||
6 | and thereafter used or consumed
solely outside this State. The | ||||||
7 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
8 | accordance with the Illinois Administrative Procedure Act, | ||||||
9 | issue a
permit to any taxpayer in good standing with the | ||||||
10 | Department who is eligible for
the exemption under this | ||||||
11 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
12 | shall authorize the holder, to the extent and
in the manner | ||||||
13 | specified in the rules adopted under this Act, to purchase
| ||||||
14 | tangible personal property from a retailer exempt from the | ||||||
15 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
16 | necessary books and records to
substantiate the use and | ||||||
17 | consumption of all such tangible personal property
outside of | ||||||
18 | the State of Illinois.
| ||||||
19 | (27) Beginning January 1, 2008, tangible personal property | ||||||
20 | used in the construction or maintenance of a community water | ||||||
21 | supply, as defined under Section 3.145 of the Environmental | ||||||
22 | Protection Act, that is operated by a not-for-profit | ||||||
23 | corporation that holds a valid water supply permit issued under | ||||||
24 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
25 | exempt from the provisions of Section 3-55.
| ||||||
26 | (28) Tangible personal property sold to a |
| |||||||
| |||||||
1 | public-facilities corporation, as described in Section | ||||||
2 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
3 | constructing or furnishing a municipal convention hall, but | ||||||
4 | only if the legal title to the municipal convention hall is | ||||||
5 | transferred to the municipality without any further | ||||||
6 | consideration by or on behalf of the municipality at the time | ||||||
7 | of the completion of the municipal convention hall or upon the | ||||||
8 | retirement or redemption of any bonds or other debt instruments | ||||||
9 | issued by the public-facilities corporation in connection with | ||||||
10 | the development of the municipal convention hall. This | ||||||
11 | exemption includes existing public-facilities corporations as | ||||||
12 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
13 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
14 | (29) 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 the transfer of | ||||||
3 | qualifying tangible personal property incident to the | ||||||
4 | modification, refurbishment, completion, replacement, repair, | ||||||
5 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
6 | Agency Certificate and are empowered to operate an approved | ||||||
7 | repair station by the Federal Aviation Administration, (ii) | ||||||
8 | have a Class IV Rating, and (iii) conduct operations in | ||||||
9 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
10 | The exemption does not include aircraft operated by a | ||||||
11 | commercial air carrier providing scheduled passenger air | ||||||
12 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
13 | of the Federal Aviation Regulations. The changes made to this | ||||||
14 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
15 | law. | ||||||
16 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
17 | and menstrual cups. | ||||||
18 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
19 | 100-22, eff. 7-6-17.)
| ||||||
20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.
|