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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by changing Section | ||||||||||||||||||||||||||||||
5 | 3-5 as follows:
| ||||||||||||||||||||||||||||||
6 | (35 ILCS 105/3-5)
| ||||||||||||||||||||||||||||||
7 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||||||||||||||||||||||||||
8 | personal property is exempt from the tax imposed by this Act:
| ||||||||||||||||||||||||||||||
9 | (1) Personal property purchased from a corporation, | ||||||||||||||||||||||||||||||
10 | society, association,
foundation, institution, or | ||||||||||||||||||||||||||||||
11 | organization, other than a limited liability
company, that is | ||||||||||||||||||||||||||||||
12 | organized and operated as a not-for-profit service enterprise
| ||||||||||||||||||||||||||||||
13 | for the benefit of persons 65 years of age or older if the | ||||||||||||||||||||||||||||||
14 | personal property was not purchased by the enterprise for the | ||||||||||||||||||||||||||||||
15 | purpose of resale by the
enterprise.
| ||||||||||||||||||||||||||||||
16 | (2) Personal property purchased by a not-for-profit | ||||||||||||||||||||||||||||||
17 | Illinois county
fair association for use in conducting, | ||||||||||||||||||||||||||||||
18 | operating, or promoting the
county fair.
| ||||||||||||||||||||||||||||||
19 | (3) Personal property purchased by a not-for-profit
arts or | ||||||||||||||||||||||||||||||
20 | cultural organization that establishes, by proof required by | ||||||||||||||||||||||||||||||
21 | the
Department by
rule, that it has received an exemption under | ||||||||||||||||||||||||||||||
22 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||||||||||||||||||||||||||
23 | organized and operated primarily for the
presentation
or |
| |||||||
| |||||||
1 | support of arts or cultural programming, activities, or | ||||||
2 | services. These
organizations include, but are not limited to, | ||||||
3 | music and dramatic arts
organizations such as symphony | ||||||
4 | orchestras and theatrical groups, arts and
cultural service | ||||||
5 | organizations, local arts councils, visual arts organizations,
| ||||||
6 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
7 | effective date of Public Act 92-35), however, an entity | ||||||
8 | otherwise eligible for this exemption shall not
make tax-free | ||||||
9 | purchases unless it has an active identification number issued | ||||||
10 | by
the Department.
| ||||||
11 | (4) Personal property purchased by a governmental body, by | ||||||
12 | a
corporation, society, association, foundation, or | ||||||
13 | institution organized and
operated exclusively for charitable, | ||||||
14 | religious, or educational purposes, or
by a not-for-profit | ||||||
15 | corporation, society, association, foundation,
institution, or | ||||||
16 | organization that has no compensated officers or employees
and | ||||||
17 | that is organized and operated primarily for the recreation of | ||||||
18 | persons
55 years of age or older. A limited liability company | ||||||
19 | may qualify for the
exemption under this paragraph only if the | ||||||
20 | limited liability company is
organized and operated | ||||||
21 | exclusively for educational purposes. On and after July
1, | ||||||
22 | 1987, however, no entity otherwise eligible for this exemption | ||||||
23 | shall make
tax-free purchases unless it has an active exemption | ||||||
24 | identification number
issued by the Department.
| ||||||
25 | (5) Until July 1, 2003, a passenger car that is a | ||||||
26 | replacement vehicle to
the extent that the
purchase price of |
| |||||||
| |||||||
1 | the car is subject to the Replacement Vehicle Tax.
| ||||||
2 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
3 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
4 | equipment, including
repair and replacement
parts, both new and | ||||||
5 | used, and including that manufactured on special order,
| ||||||
6 | certified by the purchaser to be used primarily for graphic | ||||||
7 | arts production,
and including machinery and equipment | ||||||
8 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
9 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
10 | acting as catalysts effect a direct and immediate change
upon a | ||||||
11 | graphic arts product. Beginning on July 1, 2017, graphic arts | ||||||
12 | machinery and equipment is included in the manufacturing and | ||||||
13 | assembling machinery and equipment exemption under paragraph | ||||||
14 | (18).
| ||||||
15 | (7) Farm chemicals.
| ||||||
16 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
17 | coinage issued by
the State of Illinois, the government of the | ||||||
18 | United States of America, or the
government of any foreign | ||||||
19 | country, and bullion.
| ||||||
20 | (9) Personal property purchased from a teacher-sponsored | ||||||
21 | student
organization affiliated with an elementary or | ||||||
22 | secondary school located in
Illinois.
| ||||||
23 | (10) A motor vehicle that is used for automobile renting, | ||||||
24 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
25 | Act.
| ||||||
26 | (11) Farm machinery and equipment, both new and used,
|
| |||||||
| |||||||
1 | including that manufactured on special order, certified by the | ||||||
2 | purchaser
to be used primarily for production agriculture or | ||||||
3 | State or federal
agricultural programs, including individual | ||||||
4 | replacement parts for
the machinery and equipment, including | ||||||
5 | machinery and equipment
purchased
for lease,
and including | ||||||
6 | implements of husbandry defined in Section 1-130 of
the | ||||||
7 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
8 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
9 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
10 | but excluding other motor
vehicles required to be
registered | ||||||
11 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
12 | hoop houses used for propagating, growing, or
overwintering | ||||||
13 | plants shall be considered farm machinery and equipment under
| ||||||
14 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
15 | boxes shall include units sold
separately from a motor vehicle | ||||||
16 | required to be licensed and units sold mounted
on a motor | ||||||
17 | vehicle required to be licensed if the selling price of the | ||||||
18 | tender
is separately stated.
| ||||||
19 | Farm machinery and equipment shall include precision | ||||||
20 | farming equipment
that is
installed or purchased to be | ||||||
21 | installed on farm machinery and equipment
including, but not | ||||||
22 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
23 | or spreaders.
Precision farming equipment includes, but is not | ||||||
24 | limited to, soil testing
sensors, computers, monitors, | ||||||
25 | software, global positioning
and mapping systems, and other | ||||||
26 | such equipment.
|
| |||||||
| |||||||
1 | Farm machinery and equipment also includes computers, | ||||||
2 | sensors, software, and
related equipment used primarily in the
| ||||||
3 | computer-assisted operation of production agriculture | ||||||
4 | facilities, equipment,
and
activities such as, but not limited | ||||||
5 | to,
the collection, monitoring, and correlation of
animal and | ||||||
6 | crop data for the purpose of
formulating animal diets and | ||||||
7 | agricultural chemicals. This item (11) is exempt
from the | ||||||
8 | provisions of
Section 3-90.
| ||||||
9 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
10 | to or used by an air common
carrier, certified by the carrier | ||||||
11 | to be used for consumption, shipment, or
storage in the conduct | ||||||
12 | of its business as an air common carrier, for a
flight destined | ||||||
13 | for or returning from a location or locations
outside the | ||||||
14 | United States without regard to previous or subsequent domestic
| ||||||
15 | stopovers.
| ||||||
16 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
17 | or used by an air carrier, certified by the carrier to be used | ||||||
18 | for consumption, shipment, or storage in the conduct of its | ||||||
19 | business as an air common carrier, for a flight that (i) is | ||||||
20 | engaged in foreign trade or is engaged in trade between the | ||||||
21 | United States and any of its possessions and (ii) transports at | ||||||
22 | least one individual or package for hire from the city of | ||||||
23 | origination to the city of final destination on the same | ||||||
24 | aircraft, without regard to a change in the flight number of | ||||||
25 | that aircraft. | ||||||
26 | (13) Proceeds of mandatory service charges separately
|
| |||||||
| |||||||
1 | stated on customers' bills for the purchase and consumption of | ||||||
2 | food and
beverages purchased at retail from a retailer, to the | ||||||
3 | extent that the proceeds
of the service charge are in fact | ||||||
4 | turned over as tips or as a substitute
for tips to the | ||||||
5 | employees who participate directly in preparing, serving,
| ||||||
6 | hosting or cleaning up the food or beverage function with | ||||||
7 | respect to which
the service charge is imposed.
| ||||||
8 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
9 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
10 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
11 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
12 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
13 | individual replacement part for oil
field exploration, | ||||||
14 | drilling, and production equipment, and (vi) machinery and
| ||||||
15 | equipment purchased
for lease; but excluding motor vehicles | ||||||
16 | required to be registered under the
Illinois Vehicle Code.
| ||||||
17 | (15) Photoprocessing machinery and equipment, including | ||||||
18 | repair and
replacement parts, both new and used, including that
| ||||||
19 | manufactured on special order, certified by the purchaser to be | ||||||
20 | used
primarily for photoprocessing, and including
| ||||||
21 | photoprocessing machinery and equipment purchased for lease.
| ||||||
22 | (16) Until July 1, 2023, coal and aggregate exploration, | ||||||
23 | mining, off-highway hauling,
processing, maintenance, and | ||||||
24 | reclamation equipment,
including replacement parts and | ||||||
25 | equipment, and
including equipment purchased for lease, but | ||||||
26 | excluding motor
vehicles required to be registered under the |
| |||||||
| |||||||
1 | Illinois Vehicle Code. The changes made to this Section by | ||||||
2 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
3 | for credit or refund is allowed on or after August 16, 2013 | ||||||
4 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
5 | during the period beginning July 1, 2003 and ending on August | ||||||
6 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
7 | (17) Until July 1, 2003, distillation machinery and | ||||||
8 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
9 | retailer, certified by the user to be used
only for the | ||||||
10 | production of ethyl alcohol that will be used for consumption
| ||||||
11 | as motor fuel or as a component of motor fuel for the personal | ||||||
12 | use of the
user, and not subject to sale or resale.
| ||||||
13 | (18) Manufacturing and assembling machinery and equipment | ||||||
14 | used
primarily in the process of manufacturing or assembling | ||||||
15 | tangible
personal property for wholesale or retail sale or | ||||||
16 | lease, whether that sale
or lease is made directly by the | ||||||
17 | manufacturer or by some other person,
whether the materials | ||||||
18 | used in the process are
owned by the manufacturer or some other | ||||||
19 | person, or whether that sale or
lease is made apart from or as | ||||||
20 | an incident to the seller's engaging in
the service occupation | ||||||
21 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
22 | other similar items of no commercial value on
special order for | ||||||
23 | a particular purchaser. The exemption provided by this | ||||||
24 | paragraph (18) does not include machinery and equipment used in | ||||||
25 | (i) the generation of electricity for wholesale or retail sale; | ||||||
26 | (ii) the generation or treatment of natural or artificial gas |
| |||||||
| |||||||
1 | for wholesale or retail sale that is delivered to customers | ||||||
2 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
3 | water for wholesale or retail sale that is delivered to | ||||||
4 | customers through pipes, pipelines, or mains. The provisions of | ||||||
5 | Public Act 98-583 are declaratory of existing law as to the | ||||||
6 | meaning and scope of this exemption. Beginning on July 1, 2017, | ||||||
7 | the exemption provided by this paragraph (18) includes, but is | ||||||
8 | not limited to, graphic arts machinery and equipment, as | ||||||
9 | defined in paragraph (6) of this Section.
| ||||||
10 | (19) Personal property delivered to a purchaser or | ||||||
11 | purchaser's donee
inside Illinois when the purchase order for | ||||||
12 | that personal property was
received by a florist located | ||||||
13 | outside Illinois who has a florist located
inside Illinois | ||||||
14 | deliver the personal property.
| ||||||
15 | (20) Semen used for artificial insemination of livestock | ||||||
16 | for direct
agricultural production.
| ||||||
17 | (21) Horses, or interests in horses, registered with and | ||||||
18 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
19 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
20 | Horse Association, United States
Trotting Association, or | ||||||
21 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
22 | racing for prizes. This item (21) is exempt from the provisions | ||||||
23 | of Section 3-90, and the exemption provided for under this item | ||||||
24 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
25 | claim for credit or refund is allowed on or after January 1, | ||||||
26 | 2008
for such taxes paid during the period beginning May 30, |
| |||||||
| |||||||
1 | 2000 and ending on January 1, 2008.
| ||||||
2 | (22) 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 Service Use Tax Act, as the | ||||||
14 | case may
be, based on the fair market value of the property at | ||||||
15 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
16 | or attempt to collect an
amount (however
designated) that | ||||||
17 | purports to reimburse that lessor for the tax imposed by this
| ||||||
18 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
19 | has not been
paid by the lessor. If a lessor improperly | ||||||
20 | collects any such amount from the
lessee, the lessee shall have | ||||||
21 | a legal right to claim a refund of that amount
from the lessor. | ||||||
22 | If, however, that amount is not refunded to the lessee for
any | ||||||
23 | reason, the lessor is liable to pay that amount to the | ||||||
24 | Department.
| ||||||
25 | (23) Personal property purchased by a lessor who leases the
| ||||||
26 | property, under
a
lease of
one year or longer executed or in |
| |||||||
| |||||||
1 | effect at the time
the lessor would otherwise be subject to the | ||||||
2 | tax imposed by this Act,
to a governmental body
that has been | ||||||
3 | issued an active sales tax exemption identification number by | ||||||
4 | the
Department under Section 1g of the Retailers' Occupation | ||||||
5 | Tax Act.
If the
property is leased in a manner that does not | ||||||
6 | qualify for
this exemption
or used in any other non-exempt | ||||||
7 | manner, the lessor shall be liable for the
tax imposed under | ||||||
8 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
9 | on the fair market value of the property at the time the
| ||||||
10 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
11 | to collect an
amount (however
designated) that purports to | ||||||
12 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
13 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
14 | paid by the lessor. If a lessor improperly collects any such | ||||||
15 | amount from the
lessee, the lessee shall have a legal right to | ||||||
16 | claim a refund of that amount
from the lessor. If, however, | ||||||
17 | that amount is not refunded to the lessee for
any reason, the | ||||||
18 | lessor is liable to pay that amount to the Department.
| ||||||
19 | (24) Beginning with taxable years ending on or after | ||||||
20 | December
31, 1995
and
ending with taxable years ending on or | ||||||
21 | before December 31, 2004,
personal property that is
donated for | ||||||
22 | disaster relief to be used in a State or federally declared
| ||||||
23 | disaster area in Illinois or bordering Illinois by a | ||||||
24 | manufacturer or retailer
that is registered in this State to a | ||||||
25 | corporation, society, association,
foundation, or institution | ||||||
26 | that has been issued a sales tax exemption
identification |
| |||||||
| |||||||
1 | number by the Department that assists victims of the disaster
| ||||||
2 | who reside within the declared disaster area.
| ||||||
3 | (25) Beginning with taxable years ending on or after | ||||||
4 | December
31, 1995 and
ending with taxable years ending on or | ||||||
5 | before December 31, 2004, personal
property that is used in the | ||||||
6 | performance of infrastructure repairs in this
State, including | ||||||
7 | but not limited to municipal roads and streets, access roads,
| ||||||
8 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
9 | line extensions,
water distribution and purification | ||||||
10 | facilities, storm water drainage and
retention facilities, and | ||||||
11 | sewage treatment facilities, resulting from a State
or | ||||||
12 | federally declared disaster in Illinois or bordering Illinois | ||||||
13 | when such
repairs are initiated on facilities located in the | ||||||
14 | declared disaster area
within 6 months after the disaster.
| ||||||
15 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
16 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
17 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
18 | provisions
of
Section 3-90.
| ||||||
19 | (27) A motor vehicle, as that term is defined in Section | ||||||
20 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
21 | corporation, limited liability company,
society, association, | ||||||
22 | foundation, or institution that is determined by the
Department | ||||||
23 | to be organized and operated exclusively for educational | ||||||
24 | purposes.
For purposes of this exemption, "a corporation, | ||||||
25 | limited liability company,
society, association, foundation, | ||||||
26 | or institution organized and operated
exclusively for |
| |||||||
| |||||||
1 | educational purposes" means all tax-supported public schools,
| ||||||
2 | private schools that offer systematic instruction in useful | ||||||
3 | branches of
learning by methods common to public schools and | ||||||
4 | that compare favorably in
their scope and intensity with the | ||||||
5 | course of study presented in tax-supported
schools, and | ||||||
6 | vocational or technical schools or institutes organized and
| ||||||
7 | operated exclusively to provide a course of study of not less | ||||||
8 | than 6 weeks
duration and designed to prepare individuals to | ||||||
9 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
10 | industrial, business, or commercial
occupation.
| ||||||
11 | (28) Beginning January 1, 2000, personal property, | ||||||
12 | including
food,
purchased through fundraising
events for the | ||||||
13 | benefit of
a public or private elementary or
secondary school, | ||||||
14 | a group of those schools, or one or more school
districts if | ||||||
15 | the events are
sponsored by an entity recognized by the school | ||||||
16 | district that consists
primarily of volunteers and includes
| ||||||
17 | parents and teachers of the school children. This paragraph | ||||||
18 | does not apply
to fundraising
events (i) for the benefit of | ||||||
19 | private home instruction or (ii)
for which the fundraising | ||||||
20 | entity purchases the personal property sold at
the events from | ||||||
21 | another individual or entity that sold the property for the
| ||||||
22 | purpose of resale by the fundraising entity and that
profits | ||||||
23 | from the sale to the
fundraising entity. This paragraph is | ||||||
24 | exempt
from the provisions
of Section 3-90.
| ||||||
25 | (29) Beginning January 1, 2000 and through December 31, | ||||||
26 | 2001, new or
used automatic vending
machines that prepare and |
| |||||||
| |||||||
1 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
2 | items, and replacement parts for these machines.
Beginning | ||||||
3 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
4 | for machines used in
commercial, coin-operated amusement and | ||||||
5 | vending business if a use or occupation
tax is paid on the | ||||||
6 | gross receipts derived from the use of the commercial,
| ||||||
7 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
8 | is exempt from the provisions of Section 3-90.
| ||||||
9 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
10 | food for human consumption that is to be consumed off the | ||||||
11 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
12 | drinks, and food that
has been prepared for immediate | ||||||
13 | consumption) and prescription and
nonprescription medicines, | ||||||
14 | drugs, medical appliances, and insulin, urine
testing | ||||||
15 | materials, syringes, and needles used by diabetics, for human | ||||||
16 | use, when
purchased for use by a person receiving medical | ||||||
17 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
18 | resides in a licensed long-term care facility,
as defined in | ||||||
19 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
20 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
21 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
22 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
23 | Public Act 92-227),
computers and communications equipment
| ||||||
24 | utilized for any hospital purpose and equipment used in the | ||||||
25 | diagnosis,
analysis, or treatment of hospital patients | ||||||
26 | purchased by a lessor who leases
the equipment, under a lease |
| |||||||
| |||||||
1 | of one year or longer executed or in effect at the
time the | ||||||
2 | lessor would otherwise be subject to the tax imposed by this | ||||||
3 | Act, to a
hospital that has been issued an active tax exemption | ||||||
4 | identification number by
the Department under Section 1g of the | ||||||
5 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
6 | manner that does not qualify for this exemption or is
used in | ||||||
7 | any other nonexempt manner, the lessor shall be liable for the | ||||||
8 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
9 | case may be, based on
the fair market value of the property at | ||||||
10 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
11 | or attempt to collect an amount (however
designated) that | ||||||
12 | purports to reimburse that lessor for the tax imposed by this
| ||||||
13 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
14 | has not been
paid by the lessor. If a lessor improperly | ||||||
15 | collects any such amount from the
lessee, the lessee shall have | ||||||
16 | a legal right to claim a refund of that amount
from the lessor. | ||||||
17 | If, however, that amount is not refunded to the lessee for
any | ||||||
18 | reason, the lessor is liable to pay that amount to the | ||||||
19 | Department.
This paragraph is exempt from the provisions of | ||||||
20 | Section 3-90.
| ||||||
21 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
22 | Public Act 92-227),
personal property purchased by a lessor who | ||||||
23 | leases the property,
under a lease of one year or longer | ||||||
24 | executed or in effect at the time the
lessor would otherwise be | ||||||
25 | subject to the tax imposed by this Act, to a
governmental body | ||||||
26 | that has been issued an active sales tax exemption
|
| |||||||
| |||||||
1 | identification number by the Department under Section 1g of the | ||||||
2 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
3 | manner that does not
qualify for this exemption or used in any | ||||||
4 | other nonexempt manner, the lessor
shall be liable for the tax | ||||||
5 | imposed under this Act or the Service Use Tax Act,
as the case | ||||||
6 | may be, based on the fair market value of the property at the | ||||||
7 | time
the nonqualifying use occurs. No lessor shall collect or | ||||||
8 | attempt to collect
an amount (however designated) that purports | ||||||
9 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
10 | Service Use Tax Act, as the case may be, if the
tax has not been | ||||||
11 | paid by the lessor. If a lessor improperly collects any such
| ||||||
12 | amount from the lessee, the lessee shall have a legal right to | ||||||
13 | claim a refund
of that amount from the lessor. If, however, | ||||||
14 | that amount is not refunded to
the lessee for any reason, the | ||||||
15 | lessor is liable to pay that amount to the
Department. This | ||||||
16 | paragraph is exempt from the provisions of Section 3-90.
| ||||||
17 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
18 | the use in this State of motor vehicles of
the second division | ||||||
19 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
20 | are subject to the commercial distribution fee imposed under | ||||||
21 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
22 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
23 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
24 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
25 | to the commercial distribution fee imposed under Section | ||||||
26 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are |
| |||||||
| |||||||
1 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
2 | this exemption applies to repair and
replacement parts added | ||||||
3 | after the initial purchase of such a motor vehicle if
that | ||||||
4 | motor
vehicle is used in a manner that would qualify for the | ||||||
5 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
6 | purposes of this paragraph, the term "used for commercial | ||||||
7 | purposes" means the transportation of persons or property in | ||||||
8 | furtherance of any commercial or industrial enterprise, | ||||||
9 | whether for-hire or not.
| ||||||
10 | (34) Beginning January 1, 2008, tangible personal property | ||||||
11 | used in the construction or maintenance of a community water | ||||||
12 | supply, as defined under Section 3.145 of the Environmental | ||||||
13 | Protection Act, that is operated by a not-for-profit | ||||||
14 | corporation that holds a valid water supply permit issued under | ||||||
15 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
16 | exempt from the provisions of Section 3-90. | ||||||
17 | (35) Beginning January 1, 2010, materials, parts, | ||||||
18 | equipment, components, and furnishings incorporated into or | ||||||
19 | upon an aircraft as part of the modification, refurbishment, | ||||||
20 | completion, replacement, repair, or maintenance of the | ||||||
21 | aircraft. This exemption includes consumable supplies used in | ||||||
22 | the modification, refurbishment, completion, replacement, | ||||||
23 | repair, and maintenance of aircraft, but excludes any | ||||||
24 | materials, parts, equipment, components, and consumable | ||||||
25 | supplies used in the modification, replacement, repair, and | ||||||
26 | maintenance of aircraft engines or power plants, whether such |
| |||||||
| |||||||
1 | engines or power plants are installed or uninstalled upon any | ||||||
2 | such aircraft. "Consumable supplies" include, but are not | ||||||
3 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
4 | lubricants, cleaning solution, latex gloves, and protective | ||||||
5 | films. This exemption applies only to the use of qualifying | ||||||
6 | tangible personal property by persons who modify, refurbish, | ||||||
7 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
8 | hold an Air Agency Certificate and are empowered to operate an | ||||||
9 | approved repair station by the Federal Aviation | ||||||
10 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
11 | operations in accordance with Part 145 of the Federal Aviation | ||||||
12 | Regulations. The exemption does not include aircraft operated | ||||||
13 | by a commercial air carrier providing scheduled passenger air | ||||||
14 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
15 | of the Federal Aviation Regulations. The changes made to this | ||||||
16 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
17 | law. This paragraph is exempt from the provisions of Section | ||||||
18 | 3-90. It is the intent of the General Assembly that the | ||||||
19 | exemption under this paragraph (35) applies continuously on and | ||||||
20 | after January 1, 2010. | ||||||
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 |
| |||||||
| |||||||
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 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
10 | and menstrual cups. | ||||||
11 | (38) Merchandise that is subject to the Rental Purchase | ||||||
12 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
13 | that the item is purchased to be rented subject to a rental | ||||||
14 | purchase agreement, as defined in the Rental Purchase Agreement | ||||||
15 | Act, and provide proof of registration under the Rental | ||||||
16 | Purchase Agreement Occupation and Use Tax Act. This paragraph | ||||||
17 | is exempt from the provisions of Section 3-90. | ||||||
18 | (39) Tangible personal property purchased by a purchaser | ||||||
19 | who is exempt from the tax imposed by this Act by operation of | ||||||
20 | federal law. This paragraph is exempt from the provisions of | ||||||
21 | Section 3-90. | ||||||
22 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
23 | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff. | ||||||
24 | 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised | ||||||
25 | 1-8-19.)
|
| |||||||
| |||||||
1 | Section 10. The Service Use Tax Act is amended by changing | ||||||
2 | Section 3-5 as follows:
| ||||||
3 | (35 ILCS 110/3-5)
| ||||||
4 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
5 | personal property
is exempt from the tax imposed by this Act:
| ||||||
6 | (1) Personal property purchased from a corporation, | ||||||
7 | society,
association, foundation, institution, or | ||||||
8 | organization, other than a limited
liability company, that is | ||||||
9 | organized and operated as a not-for-profit service
enterprise | ||||||
10 | for the benefit of persons 65 years of age or older if the | ||||||
11 | personal
property was not purchased by the enterprise for the | ||||||
12 | purpose of resale by the
enterprise.
| ||||||
13 | (2) Personal property purchased by a non-profit Illinois | ||||||
14 | county fair
association for use in conducting, operating, or | ||||||
15 | promoting the county fair.
| ||||||
16 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
17 | cultural
organization that establishes, by proof required by | ||||||
18 | the Department by rule,
that it has received an exemption under | ||||||
19 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
20 | organized and operated primarily for the
presentation
or | ||||||
21 | support of arts or cultural programming, activities, or | ||||||
22 | services. These
organizations include, but are not limited to, | ||||||
23 | music and dramatic arts
organizations such as symphony | ||||||
24 | orchestras and theatrical groups, arts and
cultural service | ||||||
25 | organizations, local arts councils, visual arts organizations,
|
| |||||||
| |||||||
1 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
2 | effective date of Public Act 92-35), however, an entity | ||||||
3 | otherwise eligible for this exemption shall not
make tax-free | ||||||
4 | purchases unless it has an active identification number issued | ||||||
5 | by
the Department.
| ||||||
6 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
7 | coinage issued
by the State of Illinois, the government of the | ||||||
8 | United States of America,
or the government of any foreign | ||||||
9 | country, and bullion.
| ||||||
10 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
11 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
12 | equipment, including
repair and
replacement parts, both new and | ||||||
13 | used, and including that manufactured on
special order or | ||||||
14 | purchased for lease, certified by the purchaser to be used
| ||||||
15 | primarily for graphic arts production.
Equipment includes | ||||||
16 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
17 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
18 | immediate
change upon a graphic arts product. Beginning on July | ||||||
19 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
20 | the manufacturing and assembling machinery and equipment | ||||||
21 | exemption under Section 2 of this Act.
| ||||||
22 | (6) Personal property purchased from a teacher-sponsored | ||||||
23 | student
organization affiliated with an elementary or | ||||||
24 | secondary school located
in Illinois.
| ||||||
25 | (7) Farm machinery and equipment, both new and used, | ||||||
26 | including that
manufactured on special order, certified by the |
| |||||||
| |||||||
1 | purchaser to be used
primarily for production agriculture or | ||||||
2 | State or federal agricultural
programs, including individual | ||||||
3 | replacement parts for the machinery and
equipment, including | ||||||
4 | machinery and equipment purchased for lease,
and including | ||||||
5 | implements of husbandry defined in Section 1-130 of
the | ||||||
6 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
7 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
8 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
9 | but
excluding other motor vehicles required to be registered | ||||||
10 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
11 | hoop houses used for propagating, growing, or
overwintering | ||||||
12 | plants shall be considered farm machinery and equipment under
| ||||||
13 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
14 | shall include units sold
separately from a motor vehicle | ||||||
15 | required to be licensed and units sold mounted
on a motor | ||||||
16 | vehicle required to be licensed if the selling price of the | ||||||
17 | tender
is separately stated.
| ||||||
18 | Farm machinery and equipment shall include precision | ||||||
19 | farming equipment
that is
installed or purchased to be | ||||||
20 | installed on farm machinery and equipment
including, but not | ||||||
21 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
22 | or spreaders.
Precision farming equipment includes, but is not | ||||||
23 | limited to,
soil testing sensors, computers, monitors, | ||||||
24 | software, global positioning
and mapping systems, and other | ||||||
25 | such equipment.
| ||||||
26 | Farm machinery and equipment also includes computers, |
| |||||||
| |||||||
1 | sensors, software, and
related equipment used primarily in the
| ||||||
2 | computer-assisted operation of production agriculture | ||||||
3 | facilities, equipment,
and activities such as, but
not limited | ||||||
4 | to,
the collection, monitoring, and correlation of
animal and | ||||||
5 | crop data for the purpose of
formulating animal diets and | ||||||
6 | agricultural chemicals. This item (7) is exempt
from the | ||||||
7 | provisions of
Section 3-75.
| ||||||
8 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
9 | to or used by an air common
carrier, certified by the carrier | ||||||
10 | to be used for consumption, shipment, or
storage in the conduct | ||||||
11 | of its business as an air common carrier, for a
flight destined | ||||||
12 | for or returning from a location or locations
outside the | ||||||
13 | United States without regard to previous or subsequent domestic
| ||||||
14 | stopovers.
| ||||||
15 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
16 | or used by an air carrier, certified by the carrier to be used | ||||||
17 | for consumption, shipment, or storage in the conduct of its | ||||||
18 | business as an air common carrier, for a flight that (i) is | ||||||
19 | engaged in foreign trade or is engaged in trade between the | ||||||
20 | United States and any of its possessions and (ii) transports at | ||||||
21 | least one individual or package for hire from the city of | ||||||
22 | origination to the city of final destination on the same | ||||||
23 | aircraft, without regard to a change in the flight number of | ||||||
24 | that aircraft. | ||||||
25 | (9) Proceeds of mandatory service charges separately | ||||||
26 | stated on
customers' bills for the purchase and consumption of |
| |||||||
| |||||||
1 | food and beverages
acquired as an incident to the purchase of a | ||||||
2 | service from a serviceman, to
the extent that the proceeds of | ||||||
3 | the service charge are in fact
turned over as tips or as a | ||||||
4 | substitute for tips to the employees who
participate directly | ||||||
5 | in preparing, serving, hosting or cleaning up the
food or | ||||||
6 | beverage function with respect to which the service charge is | ||||||
7 | imposed.
| ||||||
8 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
9 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
10 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
11 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
12 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
13 | individual replacement part for oil field exploration,
| ||||||
14 | drilling, and production equipment, and (vi) machinery and | ||||||
15 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
16 | required to be registered under the Illinois
Vehicle Code.
| ||||||
17 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
18 | and
equipment, including repair and replacement parts, both new | ||||||
19 | and
used, including that manufactured on special order, | ||||||
20 | certified by the
purchaser to be used primarily for | ||||||
21 | photoprocessing, and including
photoprocessing machinery and | ||||||
22 | equipment purchased for lease.
| ||||||
23 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
24 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
25 | reclamation equipment, including
replacement parts and | ||||||
26 | equipment, and including
equipment purchased for lease, but |
| |||||||
| |||||||
1 | excluding motor vehicles required to be
registered under the | ||||||
2 | Illinois Vehicle Code. The changes made to this Section by | ||||||
3 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
4 | for credit or refund is allowed on or after August 16, 2013 | ||||||
5 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
6 | during the period beginning July 1, 2003 and ending on August | ||||||
7 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
8 | (13) Semen used for artificial insemination of livestock | ||||||
9 | for direct
agricultural production.
| ||||||
10 | (14) Horses, or interests in horses, registered with and | ||||||
11 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
12 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
13 | Horse Association, United States
Trotting Association, or | ||||||
14 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
15 | racing for prizes. This item (14) is exempt from the provisions | ||||||
16 | of Section 3-75, and the exemption provided for under this item | ||||||
17 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
18 | claim for credit or refund is allowed on or after January 1, | ||||||
19 | 2008 (the effective date of Public Act 95-88) for such taxes | ||||||
20 | paid during the period beginning May 30, 2000 and ending on | ||||||
21 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
22 | (15) Computers and communications equipment utilized for | ||||||
23 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
24 | analysis, or treatment of hospital patients purchased by a | ||||||
25 | lessor who leases
the
equipment, 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 | hospital
that has been issued an active tax exemption | ||||||
3 | identification number by the
Department under Section 1g of the | ||||||
4 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
5 | manner that does not qualify for
this exemption
or is used in | ||||||
6 | any other non-exempt 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
non-qualifying 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.
| ||||||
18 | (16) Personal property purchased by a lessor who leases the
| ||||||
19 | property, under
a
lease of one year or longer executed or in | ||||||
20 | effect at the time
the lessor would otherwise be subject to the | ||||||
21 | tax imposed by this Act,
to a governmental body
that has been | ||||||
22 | issued an active tax exemption identification number by the
| ||||||
23 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
24 | Act.
If the
property is leased in a manner that does not | ||||||
25 | qualify for
this exemption
or is used in any other non-exempt | ||||||
26 | manner,
the lessor shall be liable for the
tax imposed under |
| |||||||
| |||||||
1 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
2 | fair market value of the property at the time the
| ||||||
3 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
4 | to collect an
amount (however
designated) that purports to | ||||||
5 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
6 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
7 | the lessor. If a lessor improperly collects any such amount | ||||||
8 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
9 | refund of that amount
from the lessor. If, however, that amount | ||||||
10 | is not refunded to the lessee for
any reason, the lessor is | ||||||
11 | liable to pay that amount to the Department.
| ||||||
12 | (17) Beginning with taxable years ending on or after | ||||||
13 | December
31,
1995
and
ending with taxable years ending on or | ||||||
14 | before December 31, 2004,
personal property that is
donated for | ||||||
15 | disaster relief to be used in a State or federally declared
| ||||||
16 | disaster area in Illinois or bordering Illinois by a | ||||||
17 | manufacturer or retailer
that is registered in this State to a | ||||||
18 | corporation, society, association,
foundation, or institution | ||||||
19 | that has been issued a sales tax exemption
identification | ||||||
20 | number by the Department that assists victims of the disaster
| ||||||
21 | who reside within the declared disaster area.
| ||||||
22 | (18) Beginning with taxable years ending on or after | ||||||
23 | December
31, 1995 and
ending with taxable years ending on or | ||||||
24 | before December 31, 2004, personal
property that is used in the | ||||||
25 | performance of infrastructure repairs in this
State, including | ||||||
26 | but not limited to municipal roads and streets, access roads,
|
| |||||||
| |||||||
1 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
2 | line extensions,
water distribution and purification | ||||||
3 | facilities, storm water drainage and
retention facilities, and | ||||||
4 | sewage treatment facilities, resulting from a State
or | ||||||
5 | federally declared disaster in Illinois or bordering Illinois | ||||||
6 | when such
repairs are initiated on facilities located in the | ||||||
7 | declared disaster area
within 6 months after the disaster.
| ||||||
8 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
9 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
10 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
11 | provisions
of
Section 3-75.
| ||||||
12 | (20) A motor vehicle, as that term is defined in Section | ||||||
13 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
14 | corporation, limited liability
company, society, association, | ||||||
15 | foundation, or institution that is determined by
the Department | ||||||
16 | to be organized and operated exclusively for educational
| ||||||
17 | purposes. For purposes of this exemption, "a corporation, | ||||||
18 | limited liability
company, society, association, foundation, | ||||||
19 | or institution organized and
operated
exclusively for | ||||||
20 | educational purposes" means all tax-supported public schools,
| ||||||
21 | private schools that offer systematic instruction in useful | ||||||
22 | branches of
learning by methods common to public schools and | ||||||
23 | that compare favorably in
their scope and intensity with the | ||||||
24 | course of study presented in tax-supported
schools, and | ||||||
25 | vocational or technical schools or institutes organized and
| ||||||
26 | operated exclusively to provide a course of study of not less |
| |||||||
| |||||||
1 | than 6 weeks
duration and designed to prepare individuals to | ||||||
2 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
3 | industrial, business, or commercial
occupation.
| ||||||
4 | (21) Beginning January 1, 2000, personal property, | ||||||
5 | including
food,
purchased through fundraising
events for the | ||||||
6 | benefit of
a public or private elementary or
secondary school, | ||||||
7 | a group of those schools, or one or more school
districts if | ||||||
8 | the events are
sponsored by an entity recognized by the school | ||||||
9 | district that consists
primarily of volunteers and includes
| ||||||
10 | parents and teachers of the school children. This paragraph | ||||||
11 | does not apply
to fundraising
events (i) for the benefit of | ||||||
12 | private home instruction or (ii)
for which the fundraising | ||||||
13 | entity purchases the personal property sold at
the events from | ||||||
14 | another individual or entity that sold the property for the
| ||||||
15 | purpose of resale by the fundraising entity and that
profits | ||||||
16 | from the sale to the
fundraising entity. This paragraph is | ||||||
17 | exempt
from the provisions
of Section 3-75.
| ||||||
18 | (22) Beginning January 1, 2000
and through December 31, | ||||||
19 | 2001, new or used automatic vending
machines that prepare and | ||||||
20 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
21 | items, and replacement parts for these machines.
Beginning | ||||||
22 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
23 | for machines used in
commercial, coin-operated
amusement
and | ||||||
24 | vending business if a use or occupation tax is paid on the | ||||||
25 | gross receipts
derived from
the use of the commercial, | ||||||
26 | coin-operated amusement and vending machines.
This
paragraph
|
| |||||||
| |||||||
1 | is exempt from the provisions of Section 3-75.
| ||||||
2 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
3 | food for human consumption that is to be consumed off the
| ||||||
4 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
5 | drinks, and food that
has been prepared for immediate | ||||||
6 | consumption) and prescription and
nonprescription medicines, | ||||||
7 | drugs, medical appliances, and insulin, urine
testing | ||||||
8 | materials, syringes, and needles used by diabetics, for human | ||||||
9 | use, when
purchased for use by a person receiving medical | ||||||
10 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
11 | resides in a licensed long-term care facility,
as defined in | ||||||
12 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
13 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
14 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
15 | (24) Beginning on August 2, 2001 (the effective date of | ||||||
16 | Public Act 92-227), computers and communications equipment
| ||||||
17 | utilized for any hospital purpose and equipment used in the | ||||||
18 | diagnosis,
analysis, or treatment of hospital patients | ||||||
19 | purchased by a lessor who leases
the equipment, under a lease | ||||||
20 | of one year or longer executed or in effect at the
time the | ||||||
21 | lessor would otherwise be subject to the tax imposed by this | ||||||
22 | Act, to a
hospital that has been issued an active tax exemption | ||||||
23 | identification number by
the Department under Section 1g of the | ||||||
24 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
25 | manner that does not qualify for this exemption or is
used in | ||||||
26 | any other nonexempt manner, the lessor shall be liable for the
|
| |||||||
| |||||||
1 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
2 | be, based on the
fair market value of the property at the time | ||||||
3 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
4 | attempt to collect an amount (however
designated) that purports | ||||||
5 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
6 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
7 | the lessor. If a lessor improperly collects any such amount | ||||||
8 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
9 | refund of that amount
from the lessor. If, however, that amount | ||||||
10 | is not refunded to the lessee for
any reason, the lessor is | ||||||
11 | liable to pay that amount to the Department.
This paragraph is | ||||||
12 | exempt from the provisions of Section 3-75.
| ||||||
13 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
14 | Public Act 92-227),
personal property purchased by a lessor
who | ||||||
15 | leases the property, under a lease of one year or longer | ||||||
16 | executed or in
effect at the time the lessor would otherwise be | ||||||
17 | subject to the tax imposed by
this Act, to a governmental body | ||||||
18 | that has been issued an active tax exemption
identification | ||||||
19 | number by the Department under Section 1g of the Retailers'
| ||||||
20 | Occupation Tax Act. If the property is leased in a manner that | ||||||
21 | does not
qualify for this exemption or is used in any other | ||||||
22 | nonexempt manner, the
lessor shall be liable for the tax | ||||||
23 | imposed under this Act or the Use Tax Act,
as the case may be, | ||||||
24 | based on the fair market value of the property at the time
the | ||||||
25 | nonqualifying use occurs. No lessor shall collect or attempt to | ||||||
26 | collect
an amount (however designated) that purports to |
| |||||||
| |||||||
1 | reimburse that lessor for the
tax imposed by this Act or the | ||||||
2 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
3 | the lessor. If a lessor improperly collects any such amount
| ||||||
4 | from the lessee, the lessee shall have a legal right to claim a | ||||||
5 | refund of that
amount from the lessor. If, however, that amount | ||||||
6 | is not refunded to the lessee
for any reason, the lessor is | ||||||
7 | liable to pay that amount to the Department.
This paragraph is | ||||||
8 | exempt from the provisions of Section 3-75.
| ||||||
9 | (26) Beginning January 1, 2008, tangible personal property | ||||||
10 | used in the construction or maintenance of a community water | ||||||
11 | supply, as defined under Section 3.145 of the Environmental | ||||||
12 | Protection Act, that is operated by a not-for-profit | ||||||
13 | corporation that holds a valid water supply permit issued under | ||||||
14 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
15 | exempt from the provisions of Section 3-75.
| ||||||
16 | (27) Beginning January 1, 2010, materials, parts, | ||||||
17 | equipment, components, and furnishings incorporated into or | ||||||
18 | upon an aircraft as part of the modification, refurbishment, | ||||||
19 | completion, replacement, repair, or maintenance of the | ||||||
20 | aircraft. This exemption includes consumable supplies used in | ||||||
21 | the modification, refurbishment, completion, replacement, | ||||||
22 | repair, and maintenance of aircraft, but excludes any | ||||||
23 | materials, parts, equipment, components, and consumable | ||||||
24 | supplies used in the modification, replacement, repair, and | ||||||
25 | maintenance of aircraft engines or power plants, whether such | ||||||
26 | engines or power plants are installed or uninstalled upon any |
| |||||||
| |||||||
1 | such aircraft. "Consumable supplies" include, but are not | ||||||
2 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
3 | lubricants, cleaning solution, latex gloves, and protective | ||||||
4 | films. This exemption applies only to the use of qualifying | ||||||
5 | tangible personal property transferred incident to the | ||||||
6 | modification, refurbishment, completion, replacement, repair, | ||||||
7 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
8 | Agency Certificate and are empowered to operate an approved | ||||||
9 | repair station by the Federal Aviation Administration, (ii) | ||||||
10 | have a Class IV Rating, and (iii) conduct operations in | ||||||
11 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
12 | The exemption does not include aircraft operated by a | ||||||
13 | commercial air carrier providing scheduled passenger air | ||||||
14 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
15 | of the Federal Aviation Regulations. The changes made to this | ||||||
16 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
17 | law. This paragraph is exempt from the provisions of Section | ||||||
18 | 3-75. It is the intent of the General Assembly that the | ||||||
19 | exemption under this paragraph (27) applies continuously on and | ||||||
20 | after January 1, 2010. | ||||||
21 | (28) 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 |
| |||||||
| |||||||
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 3-75. | ||||||
9 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
10 | and menstrual cups. | ||||||
11 | (30) Tangible personal property transferred to a purchaser | ||||||
12 | who is exempt from the tax imposed by this Act by operation of | ||||||
13 | federal law. This paragraph is exempt from the provisions of | ||||||
14 | Section 3-75. | ||||||
15 | (31) Qualified tangible personal property used in the | ||||||
16 | construction or operation of a data center that has been | ||||||
17 | granted a certificate of exemption by the Department of | ||||||
18 | Commerce and Economic Opportunity, whether that tangible | ||||||
19 | personal property is purchased by the owner, operator, or | ||||||
20 | tenant of the data center or by a contractor or subcontractor | ||||||
21 | of the owner, operator, or tenant. Data centers that would have | ||||||
22 | qualified for a certificate of exemption prior to January 1, | ||||||
23 | 2020 had this amendatory Act of the 101st General Assembly been | ||||||
24 | in effect, may apply for and obtain an exemption for subsequent | ||||||
25 | purchases of computer equipment or enabling software purchased | ||||||
26 | or leased to upgrade, supplement, or replace computer equipment |
| |||||||
| |||||||
1 | or enabling software purchased or leased in the original | ||||||
2 | investment that would have qualified. | ||||||
3 | The Department of Commerce and Economic Opportunity shall | ||||||
4 | grant a certificate of exemption under this item (31) to | ||||||
5 | qualified data centers as defined by Section 605-1025 of the | ||||||
6 | Department of Commerce and Economic Opportunity Law of the
| ||||||
7 | Civil Administrative Code of Illinois. | ||||||
8 | For the purposes of this item (31): | ||||||
9 | "Data center" means a building or a series of buildings | ||||||
10 | rehabilitated or constructed to house working servers in | ||||||
11 | one physical location or multiple sites within the State of | ||||||
12 | Illinois. | ||||||
13 | "Qualified tangible personal property" means: | ||||||
14 | electrical systems and equipment; climate control and | ||||||
15 | chilling equipment and systems; mechanical systems and | ||||||
16 | equipment; monitoring and secure systems; emergency | ||||||
17 | generators; hardware; computers; servers; data storage | ||||||
18 | devices; network connectivity equipment; racks; cabinets; | ||||||
19 | telecommunications cabling infrastructure; raised floor | ||||||
20 | systems; peripheral components or systems; software; | ||||||
21 | mechanical, electrical, or plumbing systems; battery | ||||||
22 | systems; cooling systems and towers; temperature control | ||||||
23 | systems; other cabling; and other data center | ||||||
24 | infrastructure equipment and systems necessary to operate | ||||||
25 | qualified tangible personal property, including fixtures; | ||||||
26 | and component parts of any of the foregoing, including |
| |||||||
| |||||||
1 | installation, maintenance, repair, refurbishment, and | ||||||
2 | replacement of qualified tangible personal property to | ||||||
3 | generate, transform, transmit, distribute, or manage | ||||||
4 | electricity necessary to operate qualified tangible | ||||||
5 | personal property; and all other tangible personal | ||||||
6 | property that is essential to the operations of a computer | ||||||
7 | data center. The term "qualified tangible personal | ||||||
8 | property" also includes building materials physically | ||||||
9 | incorporated in to the qualifying data center. To document | ||||||
10 | the exemption allowed under this Section, the retailer must | ||||||
11 | obtain from the purchaser a copy of the certificate of | ||||||
12 | eligibility issued by the Department of Commerce and | ||||||
13 | Economic Opportunity. | ||||||
14 | This item (31) is exempt from the provisions of Section | ||||||
15 | 3-75. | ||||||
16 | (Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; | ||||||
17 | 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff. | ||||||
18 | 7-12-19.)
| ||||||
19 | Section 15. The Service Occupation Tax Act is amended by | ||||||
20 | changing Section 3-5 as follows:
| ||||||
21 | (35 ILCS 115/3-5)
| ||||||
22 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
23 | property is
exempt from the tax imposed by this Act:
| ||||||
24 | (1) Personal property sold by a corporation, society, |
| |||||||
| |||||||
1 | association,
foundation, institution, or organization, other | ||||||
2 | than a limited liability
company, that is organized and | ||||||
3 | operated as a not-for-profit service enterprise
for the benefit | ||||||
4 | of persons 65 years of age or older if the personal property
| ||||||
5 | was not purchased by the enterprise for the purpose of resale | ||||||
6 | by the
enterprise.
| ||||||
7 | (2) Personal property purchased by a not-for-profit | ||||||
8 | Illinois county fair
association for use in conducting, | ||||||
9 | operating, or promoting the county fair.
| ||||||
10 | (3) Personal property purchased by any not-for-profit
arts | ||||||
11 | or cultural organization that establishes, by proof required by | ||||||
12 | the
Department by
rule, that it has received an exemption under | ||||||
13 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
14 | organized and operated primarily for the
presentation
or | ||||||
15 | support of arts or cultural programming, activities, or | ||||||
16 | services. These
organizations include, but are not limited to, | ||||||
17 | music and dramatic arts
organizations such as symphony | ||||||
18 | orchestras and theatrical groups, arts and
cultural service | ||||||
19 | organizations, local arts councils, visual arts organizations,
| ||||||
20 | and media arts organizations.
On and after July 1, 2001 ( the | ||||||
21 | effective date of Public Act 92-35) this amendatory Act of the | ||||||
22 | 92nd General
Assembly , however, an entity otherwise eligible | ||||||
23 | for this exemption shall not
make tax-free purchases unless it | ||||||
24 | has an active identification number issued by
the Department.
| ||||||
25 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
26 | coinage
issued by the State of Illinois, the government of the |
| |||||||
| |||||||
1 | United States of
America, or the government of any foreign | ||||||
2 | country, and bullion.
| ||||||
3 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
4 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
5 | equipment, including
repair and
replacement parts, both new and | ||||||
6 | used, and including that manufactured on
special order or | ||||||
7 | purchased for lease, certified by the purchaser to be used
| ||||||
8 | primarily for graphic arts production.
Equipment includes | ||||||
9 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
10 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
11 | immediate change
upon a graphic arts product. Beginning on July | ||||||
12 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
13 | the manufacturing and assembling machinery and equipment | ||||||
14 | exemption under Section 2 of this Act.
| ||||||
15 | (6) Personal property sold by a teacher-sponsored student | ||||||
16 | organization
affiliated with an elementary or secondary school | ||||||
17 | located in Illinois.
| ||||||
18 | (7) Farm machinery and equipment, both new and used, | ||||||
19 | including that
manufactured on special order, certified by the | ||||||
20 | purchaser to be used
primarily for production agriculture or | ||||||
21 | State or federal agricultural
programs, including individual | ||||||
22 | replacement parts for the machinery and
equipment, including | ||||||
23 | machinery and equipment purchased for lease,
and including | ||||||
24 | implements of husbandry defined in Section 1-130 of
the | ||||||
25 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
26 | chemical and
fertilizer spreaders, and nurse wagons required to |
| |||||||
| |||||||
1 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
2 | but
excluding other motor vehicles required to be registered | ||||||
3 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
4 | hoop houses used for propagating, growing, or
overwintering | ||||||
5 | plants shall be considered farm machinery and equipment under
| ||||||
6 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
7 | shall include units sold
separately from a motor vehicle | ||||||
8 | required to be licensed and units sold mounted
on a motor | ||||||
9 | vehicle required to be licensed if the selling price of the | ||||||
10 | tender
is separately stated.
| ||||||
11 | Farm machinery and equipment shall include precision | ||||||
12 | farming equipment
that is
installed or purchased to be | ||||||
13 | installed on farm machinery and equipment
including, but not | ||||||
14 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
15 | or spreaders.
Precision farming equipment includes, but is not | ||||||
16 | limited to,
soil testing sensors, computers, monitors, | ||||||
17 | software, global positioning
and mapping systems, and other | ||||||
18 | such equipment.
| ||||||
19 | Farm machinery and equipment also includes computers, | ||||||
20 | sensors, software, and
related equipment used primarily in the
| ||||||
21 | computer-assisted operation of production agriculture | ||||||
22 | facilities, equipment,
and activities such as, but
not limited | ||||||
23 | to,
the collection, monitoring, and correlation of
animal and | ||||||
24 | crop data for the purpose of
formulating animal diets and | ||||||
25 | agricultural chemicals. This item (7) is exempt
from the | ||||||
26 | provisions of
Section 3-55.
|
| |||||||
| |||||||
1 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
2 | to or used by an air common
carrier, certified by the carrier | ||||||
3 | to be used for consumption, shipment,
or storage in the conduct | ||||||
4 | of its business as an air common carrier, for
a flight destined | ||||||
5 | for or returning from a location or locations
outside the | ||||||
6 | United States without regard to previous or subsequent domestic
| ||||||
7 | stopovers.
| ||||||
8 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
9 | or used by an air carrier, certified by the carrier to be used | ||||||
10 | for consumption, shipment, or storage in the conduct of its | ||||||
11 | business as an air common carrier, for a flight that (i) is | ||||||
12 | engaged in foreign trade or is engaged in trade between the | ||||||
13 | United States and any of its possessions and (ii) transports at | ||||||
14 | least one individual or package for hire from the city of | ||||||
15 | origination to the city of final destination on the same | ||||||
16 | aircraft, without regard to a change in the flight number of | ||||||
17 | that aircraft. | ||||||
18 | (9) Proceeds of mandatory service charges separately
| ||||||
19 | stated on customers' bills for the purchase and consumption of | ||||||
20 | food and
beverages, to the extent that the proceeds of the | ||||||
21 | service charge are in fact
turned over as tips or as a | ||||||
22 | substitute for tips to the employees who
participate directly | ||||||
23 | in preparing, serving, hosting or cleaning up the
food or | ||||||
24 | beverage function with respect to which the service charge is | ||||||
25 | imposed.
| ||||||
26 | (10) Until July 1, 2003, oil field exploration, drilling, |
| |||||||
| |||||||
1 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
2 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
3 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
4 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
5 | individual replacement part for oil field exploration,
| ||||||
6 | drilling, and production equipment, and (vi) machinery and | ||||||
7 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
8 | required to be registered under the Illinois
Vehicle Code.
| ||||||
9 | (11) Photoprocessing machinery and equipment, including | ||||||
10 | repair and
replacement parts, both new and used, including that | ||||||
11 | manufactured on
special order, certified by the purchaser to be | ||||||
12 | used primarily for
photoprocessing, and including | ||||||
13 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
14 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
15 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
16 | reclamation equipment, including
replacement parts and | ||||||
17 | equipment, and including
equipment
purchased for lease, but | ||||||
18 | excluding motor vehicles required to be registered
under the | ||||||
19 | Illinois Vehicle Code. The changes made to this Section by | ||||||
20 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
21 | for credit or refund is allowed on or after August 16, 2013 | ||||||
22 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
23 | during the period beginning July 1, 2003 and ending on August | ||||||
24 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
25 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
26 | food for human consumption that is to be consumed off the |
| |||||||
| |||||||
1 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
2 | drinks and food that
has been prepared for immediate | ||||||
3 | consumption) and prescription and
non-prescription medicines, | ||||||
4 | drugs, medical appliances, and insulin, urine
testing | ||||||
5 | materials, syringes, and needles used by diabetics, for human | ||||||
6 | use,
when purchased for use by a person receiving medical | ||||||
7 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
8 | resides in a licensed
long-term care facility, as defined in | ||||||
9 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
10 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
11 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
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 August 2, 2001 ( the effective date of | ||||||
5 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
6 | Assembly ,
computers and communications equipment
utilized for | ||||||
7 | any hospital purpose and equipment used in the diagnosis,
| ||||||
8 | analysis, or treatment of hospital patients sold to a lessor | ||||||
9 | who leases the
equipment, under a lease of one year or longer | ||||||
10 | executed or in effect at the
time of the purchase, to a | ||||||
11 | hospital that has been issued an active tax
exemption | ||||||
12 | identification number by the Department under Section 1g of the
| ||||||
13 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
14 | the provisions of
Section 3-55.
| ||||||
15 | (25) Beginning
on August 2, 2001 ( the effective date of | ||||||
16 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
17 | Assembly ,
personal property sold to a lessor who
leases the | ||||||
18 | property, under a lease of one year or longer executed or in | ||||||
19 | effect
at the time of the purchase, to a governmental body that | ||||||
20 | has been issued an
active tax exemption identification number | ||||||
21 | by the Department under Section 1g
of the Retailers' Occupation | ||||||
22 | Tax Act. This paragraph is exempt from the
provisions of | ||||||
23 | Section 3-55.
| ||||||
24 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
25 | 2016, tangible personal property
purchased
from an Illinois | ||||||
26 | retailer by a taxpayer engaged in centralized purchasing
|
| |||||||
| |||||||
1 | activities in Illinois who will, upon receipt of the property | ||||||
2 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
3 | the purpose of subsequently
transporting it outside this State | ||||||
4 | for use or consumption thereafter solely
outside this State or | ||||||
5 | (ii) for the purpose of being processed, fabricated, or
| ||||||
6 | manufactured into, attached to, or incorporated into other | ||||||
7 | tangible personal
property to be transported outside this State | ||||||
8 | and thereafter used or consumed
solely outside this State. The | ||||||
9 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
10 | accordance with the Illinois Administrative Procedure Act, | ||||||
11 | issue a
permit to any taxpayer in good standing with the | ||||||
12 | Department who is eligible for
the exemption under this | ||||||
13 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
14 | shall authorize the holder, to the extent and
in the manner | ||||||
15 | specified in the rules adopted under this Act, to purchase
| ||||||
16 | tangible personal property from a retailer exempt from the | ||||||
17 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
18 | necessary books and records to
substantiate the use and | ||||||
19 | consumption of all such tangible personal property
outside of | ||||||
20 | the State of Illinois.
| ||||||
21 | (27) Beginning January 1, 2008, tangible personal property | ||||||
22 | used in the construction or maintenance of a community water | ||||||
23 | supply, as defined under Section 3.145 of the Environmental | ||||||
24 | Protection Act, that is operated by a not-for-profit | ||||||
25 | corporation that holds a valid water supply permit issued under | ||||||
26 | Title IV of the Environmental Protection Act. This paragraph is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 3-55.
| ||||||
2 | (28) Tangible personal property sold to 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 3-55. | ||||||
16 | (29) Beginning January 1, 2010, materials, parts, | ||||||
17 | equipment, components, and furnishings incorporated into or | ||||||
18 | upon an aircraft as part of the modification, refurbishment, | ||||||
19 | completion, replacement, repair, or maintenance of the | ||||||
20 | aircraft. This exemption includes consumable supplies used in | ||||||
21 | the modification, refurbishment, completion, replacement, | ||||||
22 | repair, and maintenance of aircraft, but excludes any | ||||||
23 | materials, parts, equipment, components, and consumable | ||||||
24 | supplies used in the modification, replacement, repair, and | ||||||
25 | maintenance of aircraft engines or power plants, whether such | ||||||
26 | engines or power plants are installed or uninstalled upon any |
| |||||||
| |||||||
1 | such aircraft. "Consumable supplies" include, but are not | ||||||
2 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
3 | lubricants, cleaning solution, latex gloves, and protective | ||||||
4 | films. This exemption applies only to the transfer of | ||||||
5 | qualifying tangible personal property incident to the | ||||||
6 | modification, refurbishment, completion, replacement, repair, | ||||||
7 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
8 | Agency Certificate and are empowered to operate an approved | ||||||
9 | repair station by the Federal Aviation Administration, (ii) | ||||||
10 | have a Class IV Rating, and (iii) conduct operations in | ||||||
11 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
12 | The exemption does not include aircraft operated by a | ||||||
13 | commercial air carrier providing scheduled passenger air | ||||||
14 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
15 | of the Federal Aviation Regulations. The changes made to this | ||||||
16 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
17 | law. This paragraph is exempt from the provisions of Section | ||||||
18 | 3-55. It is the intent of the General Assembly that the | ||||||
19 | exemption under this paragraph (29) applies continuously on and | ||||||
20 | after January 1, 2010. | ||||||
21 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
22 | and menstrual cups. | ||||||
23 | (31) Tangible personal property transferred to a purchaser | ||||||
24 | who is exempt from tax by operation of federal law. This | ||||||
25 | paragraph is exempt from the provisions of Section 3-55. | ||||||
26 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; |
| |||||||
| |||||||
1 | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. | ||||||
2 | 1-4-19; revised 1-8-19.)
| ||||||
3 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
4 | changing Section 2-5 as follows:
| ||||||
5 | (35 ILCS 120/2-5)
| ||||||
6 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
7 | sale of
the following tangible personal property are exempt | ||||||
8 | from the tax imposed
by this Act:
| ||||||
9 | (1) Farm chemicals.
| ||||||
10 | (2) Farm machinery and equipment, both new and used, | ||||||
11 | including that
manufactured on special order, certified by | ||||||
12 | the purchaser to be used
primarily for production | ||||||
13 | agriculture or State or federal agricultural
programs, | ||||||
14 | including individual replacement parts for the machinery | ||||||
15 | and
equipment, including machinery and equipment purchased | ||||||
16 | for lease,
and including implements of husbandry defined in | ||||||
17 | Section 1-130 of
the Illinois Vehicle Code, farm machinery | ||||||
18 | and agricultural chemical and
fertilizer spreaders, and | ||||||
19 | nurse wagons required to be registered
under Section 3-809 | ||||||
20 | of the Illinois Vehicle Code,
but
excluding other motor | ||||||
21 | vehicles required to be registered under the Illinois
| ||||||
22 | Vehicle Code.
Horticultural polyhouses or hoop houses used | ||||||
23 | for propagating, growing, or
overwintering plants shall be | ||||||
24 | considered farm machinery and equipment under
this item |
| |||||||
| |||||||
1 | (2).
Agricultural chemical tender tanks and dry boxes shall | ||||||
2 | include units sold
separately from a motor vehicle required | ||||||
3 | to be licensed and units sold mounted
on a motor vehicle | ||||||
4 | required to be licensed, if the selling price of the tender
| ||||||
5 | is separately stated.
| ||||||
6 | Farm machinery and equipment shall include precision | ||||||
7 | farming equipment
that is
installed or purchased to be | ||||||
8 | installed on farm machinery and equipment
including, but | ||||||
9 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
10 | seeders, or spreaders.
Precision farming equipment | ||||||
11 | includes, but is not limited to,
soil testing sensors, | ||||||
12 | computers, monitors, software, global positioning
and | ||||||
13 | mapping systems, and other such equipment.
| ||||||
14 | Farm machinery and equipment also includes computers, | ||||||
15 | sensors, software, and
related equipment used primarily in | ||||||
16 | the
computer-assisted operation of production agriculture | ||||||
17 | facilities, equipment,
and activities such as, but
not | ||||||
18 | limited to,
the collection, monitoring, and correlation of
| ||||||
19 | animal and crop data for the purpose of
formulating animal | ||||||
20 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
21 | from the provisions of
Section 2-70.
| ||||||
22 | (3) Until July 1, 2003, distillation machinery and | ||||||
23 | equipment, sold as a
unit or kit,
assembled or installed by | ||||||
24 | the retailer, certified by the user to be used
only for the | ||||||
25 | production of ethyl alcohol that will be used for | ||||||
26 | consumption
as motor fuel or as a component of motor fuel |
| |||||||
| |||||||
1 | for the personal use of the
user, and not subject to sale | ||||||
2 | or resale.
| ||||||
3 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
4 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
5 | equipment, including
repair and
replacement parts, both | ||||||
6 | new and used, and including that manufactured on
special | ||||||
7 | order or purchased for lease, certified by the purchaser to | ||||||
8 | be used
primarily for graphic arts production.
Equipment | ||||||
9 | includes chemicals or
chemicals acting as catalysts but | ||||||
10 | only if
the chemicals or chemicals acting as catalysts | ||||||
11 | effect a direct and immediate
change upon a
graphic arts | ||||||
12 | product. Beginning on July 1, 2017, graphic arts machinery | ||||||
13 | and equipment is included in the manufacturing and | ||||||
14 | assembling machinery and equipment exemption under | ||||||
15 | paragraph (14).
| ||||||
16 | (5) A motor vehicle that is used for automobile | ||||||
17 | renting, as defined in the Automobile Renting Occupation | ||||||
18 | and Use Tax Act. This paragraph is exempt from
the | ||||||
19 | provisions of Section 2-70.
| ||||||
20 | (6) Personal property sold by a teacher-sponsored | ||||||
21 | student organization
affiliated with an elementary or | ||||||
22 | secondary school located in Illinois.
| ||||||
23 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
24 | selling price of
a passenger car the
sale of which is | ||||||
25 | subject to the Replacement Vehicle Tax.
| ||||||
26 | (8) Personal property sold to an Illinois county fair |
| |||||||
| |||||||
1 | association for
use in conducting, operating, or promoting | ||||||
2 | the county fair.
| ||||||
3 | (9) Personal property sold to a not-for-profit arts
or | ||||||
4 | cultural organization that establishes, by proof required | ||||||
5 | by the Department
by
rule, that it has received an | ||||||
6 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
7 | Code and that is organized and operated primarily for the
| ||||||
8 | presentation
or support of arts or cultural programming, | ||||||
9 | activities, or services. These
organizations include, but | ||||||
10 | are not limited to, music and dramatic arts
organizations | ||||||
11 | such as symphony orchestras and theatrical groups, arts and
| ||||||
12 | cultural service organizations, local arts councils, | ||||||
13 | visual arts organizations,
and media arts organizations.
| ||||||
14 | On and after July 1, 2001 (the effective date of Public Act | ||||||
15 | 92-35), however, an entity otherwise eligible for this | ||||||
16 | exemption shall not
make tax-free purchases unless it has | ||||||
17 | an active identification number issued by
the Department.
| ||||||
18 | (10) Personal property sold by a corporation, society, | ||||||
19 | association,
foundation, institution, or organization, | ||||||
20 | other than a limited liability
company, that is organized | ||||||
21 | and operated as a not-for-profit service enterprise
for the | ||||||
22 | benefit of persons 65 years of age or older if the personal | ||||||
23 | property
was not purchased by the enterprise for the | ||||||
24 | purpose of resale by the
enterprise.
| ||||||
25 | (11) Personal property sold to a governmental body, to | ||||||
26 | a corporation,
society, association, foundation, or |
| |||||||
| |||||||
1 | institution organized and operated
exclusively for | ||||||
2 | charitable, religious, or educational purposes, or to a
| ||||||
3 | not-for-profit corporation, society, association, | ||||||
4 | foundation, institution,
or organization that has no | ||||||
5 | compensated officers or employees and that is
organized and | ||||||
6 | operated primarily for the recreation of persons 55 years | ||||||
7 | of
age or older. A limited liability company may qualify | ||||||
8 | for the exemption under
this paragraph only if the limited | ||||||
9 | liability company is organized and operated
exclusively | ||||||
10 | for educational purposes. On and after July 1, 1987, | ||||||
11 | however, no
entity otherwise eligible for this exemption | ||||||
12 | shall make tax-free purchases
unless it has an active | ||||||
13 | identification number issued by the Department.
| ||||||
14 | (12) (Blank).
| ||||||
15 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
16 | 2004, motor vehicles of the second division
with a gross | ||||||
17 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
18 | to the commercial distribution fee imposed under Section | ||||||
19 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
20 | 2004 and through June 30, 2005, the use in this State of | ||||||
21 | motor vehicles of the second division: (i) with a gross | ||||||
22 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
23 | are subject to the commercial distribution fee imposed | ||||||
24 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
25 | (iii) that are primarily used for commercial purposes. | ||||||
26 | Through June 30, 2005, this
exemption applies to repair and |
| |||||||
| |||||||
1 | replacement parts added
after the
initial purchase of such | ||||||
2 | a motor vehicle if that motor vehicle is used in a
manner | ||||||
3 | that
would qualify for the rolling stock exemption | ||||||
4 | otherwise provided for in this
Act. For purposes of this | ||||||
5 | paragraph, "used for commercial purposes" means the | ||||||
6 | transportation of persons or property in furtherance of any | ||||||
7 | commercial or industrial enterprise whether for-hire or | ||||||
8 | not.
| ||||||
9 | (13) Proceeds from sales to owners, lessors, or
| ||||||
10 | shippers of
tangible personal property that is utilized by | ||||||
11 | interstate carriers for
hire for use as rolling stock | ||||||
12 | moving in interstate commerce
and equipment operated by a | ||||||
13 | telecommunications provider, licensed as a
common carrier | ||||||
14 | by the Federal Communications Commission, which is
| ||||||
15 | permanently installed in or affixed to aircraft moving in | ||||||
16 | interstate commerce.
| ||||||
17 | (14) Machinery and equipment that will be used by the | ||||||
18 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
19 | process of manufacturing or
assembling tangible personal | ||||||
20 | property for wholesale or retail sale or
lease, whether the | ||||||
21 | sale or lease is made directly by the manufacturer or by
| ||||||
22 | some other person, whether the materials used in the | ||||||
23 | process are owned by
the manufacturer or some other person, | ||||||
24 | or whether the sale or lease is made
apart from or as an | ||||||
25 | incident to the seller's engaging in the service
occupation | ||||||
26 | of producing machines, tools, dies, jigs, patterns, |
| |||||||
| |||||||
1 | gauges, or
other similar items of no commercial value on | ||||||
2 | special order for a particular
purchaser. The exemption | ||||||
3 | provided by this paragraph (14) does not include machinery | ||||||
4 | and equipment used in (i) the generation of electricity for | ||||||
5 | wholesale or retail sale; (ii) the generation or treatment | ||||||
6 | of natural or artificial gas for wholesale or retail sale | ||||||
7 | that is delivered to customers through pipes, pipelines, or | ||||||
8 | mains; or (iii) the treatment of water for wholesale or | ||||||
9 | retail sale that is delivered to customers through pipes, | ||||||
10 | pipelines, or mains. The provisions of Public Act 98-583 | ||||||
11 | are declaratory of existing law as to the meaning and scope | ||||||
12 | of this exemption. Beginning on July 1, 2017, the exemption | ||||||
13 | provided by this paragraph (14) includes, but is not | ||||||
14 | limited to, graphic arts machinery and equipment, as | ||||||
15 | defined in paragraph (4) of this Section.
| ||||||
16 | (15) Proceeds of mandatory service charges separately | ||||||
17 | stated on
customers' bills for purchase and consumption of | ||||||
18 | food and beverages, to the
extent that the proceeds of the | ||||||
19 | service charge are in fact turned over as
tips or as a | ||||||
20 | substitute for tips to the employees who participate | ||||||
21 | directly
in preparing, serving, hosting or cleaning up the | ||||||
22 | food or beverage function
with respect to which the service | ||||||
23 | charge is imposed.
| ||||||
24 | (16) Tangible personal property sold to a purchaser if | ||||||
25 | the purchaser is exempt from use tax by operation of | ||||||
26 | federal law. This paragraph is exempt from the provisions |
| |||||||
| |||||||
1 | of Section 2-70.
| ||||||
2 | (17) Tangible personal property sold to a common | ||||||
3 | carrier by rail or
motor that
receives the physical | ||||||
4 | possession of the property in Illinois and that
transports | ||||||
5 | the property, or shares with another common carrier in the
| ||||||
6 | transportation of the property, out of Illinois on a | ||||||
7 | standard uniform bill
of lading showing the seller of the | ||||||
8 | property as the shipper or consignor of
the property to a | ||||||
9 | destination outside Illinois, for use outside Illinois.
| ||||||
10 | (18) Legal tender, currency, medallions, or gold or | ||||||
11 | silver coinage
issued by the State of Illinois, the | ||||||
12 | government of the United States of
America, or the | ||||||
13 | government of any foreign country, and bullion.
| ||||||
14 | (19) Until July 1, 2003, oil field exploration, | ||||||
15 | drilling, and production
equipment, including
(i) rigs and | ||||||
16 | parts of rigs, rotary rigs, cable tool
rigs, and workover | ||||||
17 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
18 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
19 | storage tanks and flow
lines, (v) any individual | ||||||
20 | replacement part for oil field exploration,
drilling, and | ||||||
21 | production equipment, and (vi) machinery and equipment | ||||||
22 | purchased
for lease; but
excluding motor vehicles required | ||||||
23 | to be registered under the Illinois
Vehicle Code.
| ||||||
24 | (20) Photoprocessing machinery and equipment, | ||||||
25 | including repair and
replacement parts, both new and used, | ||||||
26 | including that manufactured on
special order, certified by |
| |||||||
| |||||||
1 | the purchaser to be used primarily for
photoprocessing, and | ||||||
2 | including photoprocessing machinery and equipment
| ||||||
3 | purchased for lease.
| ||||||
4 | (21) Until July 1, 2023, coal and aggregate | ||||||
5 | exploration, mining, off-highway hauling,
processing,
| ||||||
6 | maintenance, and reclamation equipment, including
| ||||||
7 | replacement parts and equipment, and including
equipment | ||||||
8 | purchased for lease, but excluding motor vehicles required | ||||||
9 | to be
registered under the Illinois Vehicle Code. The | ||||||
10 | changes made to this Section by Public Act 97-767 apply on | ||||||
11 | and after July 1, 2003, but no claim for credit or refund | ||||||
12 | is allowed on or after August 16, 2013 (the effective date | ||||||
13 | of Public Act 98-456)
for such taxes paid during the period | ||||||
14 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
15 | effective date of Public Act 98-456).
| ||||||
16 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
17 | sold to or used by an air carrier,
certified by the carrier | ||||||
18 | to be used for consumption, shipment, or storage
in the | ||||||
19 | conduct of its business as an air common carrier, for a | ||||||
20 | flight
destined for or returning from a location or | ||||||
21 | locations
outside the United States without regard to | ||||||
22 | previous or subsequent domestic
stopovers.
| ||||||
23 | Beginning July 1, 2013, fuel and petroleum products | ||||||
24 | sold to or used by an air carrier, certified by the carrier | ||||||
25 | to be used for consumption, shipment, or storage in the | ||||||
26 | conduct of its business as an air common carrier, for a |
| |||||||
| |||||||
1 | flight that (i) is engaged in foreign trade or is engaged | ||||||
2 | in trade between the United States and any of its | ||||||
3 | possessions and (ii) transports at least one individual or | ||||||
4 | package for hire from the city of origination to the city | ||||||
5 | of final destination on the same aircraft, without regard | ||||||
6 | to a change in the flight number of that aircraft. | ||||||
7 | (23) A transaction in which the purchase order is | ||||||
8 | received by a florist
who is located outside Illinois, but | ||||||
9 | who has a florist located in Illinois
deliver the property | ||||||
10 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
11 | (24) Fuel consumed or used in the operation of ships, | ||||||
12 | barges, or vessels
that are used primarily in or for the | ||||||
13 | transportation of property or the
conveyance of persons for | ||||||
14 | hire on rivers bordering on this State if the
fuel is | ||||||
15 | delivered by the seller to the purchaser's barge, ship, or | ||||||
16 | vessel
while it is afloat upon that bordering river.
| ||||||
17 | (25) Except as provided in item (25-5) of this Section, | ||||||
18 | a
motor vehicle sold in this State to a nonresident even | ||||||
19 | though the
motor vehicle is delivered to the nonresident in | ||||||
20 | this State, if the motor
vehicle is not to be titled in | ||||||
21 | this State, and if a drive-away permit
is issued to the | ||||||
22 | motor vehicle as provided in Section 3-603 of the Illinois
| ||||||
23 | Vehicle Code or if the nonresident purchaser has vehicle | ||||||
24 | registration
plates to transfer to the motor vehicle upon | ||||||
25 | returning to his or her home
state. The issuance of the | ||||||
26 | drive-away permit or having
the
out-of-state registration |
| |||||||
| |||||||
1 | plates to be transferred is prima facie evidence
that the | ||||||
2 | motor vehicle will not be titled in this State.
| ||||||
3 | (25-5) The exemption under item (25) does not apply if | ||||||
4 | the state in which the motor vehicle will be titled does | ||||||
5 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
6 | and delivered in that state to an Illinois resident but | ||||||
7 | titled in Illinois. The tax collected under this Act on the | ||||||
8 | sale of a motor vehicle in this State to a resident of | ||||||
9 | another state that does not allow a reciprocal exemption | ||||||
10 | shall be imposed at a rate equal to the state's rate of tax | ||||||
11 | on taxable property in the state in which the purchaser is | ||||||
12 | a resident, except that the tax shall not exceed the tax | ||||||
13 | that would otherwise be imposed under this Act. At the time | ||||||
14 | of the sale, the purchaser shall execute a statement, | ||||||
15 | signed under penalty of perjury, of his or her intent to | ||||||
16 | title the vehicle in the state in which the purchaser is a | ||||||
17 | resident within 30 days after the sale and of the fact of | ||||||
18 | the payment to the State of Illinois of tax in an amount | ||||||
19 | equivalent to the state's rate of tax on taxable property | ||||||
20 | in his or her state of residence and shall submit the | ||||||
21 | statement to the appropriate tax collection agency in his | ||||||
22 | or her state of residence. In addition, the retailer must | ||||||
23 | retain a signed copy of the statement in his or her | ||||||
24 | records. Nothing in this item shall be construed to require | ||||||
25 | the removal of the vehicle from this state following the | ||||||
26 | filing of an intent to title the vehicle in the purchaser's |
| |||||||
| |||||||
1 | state of residence if the purchaser titles the vehicle in | ||||||
2 | his or her state of residence within 30 days after the date | ||||||
3 | of sale. The tax collected under this Act in accordance | ||||||
4 | with this item (25-5) shall be proportionately distributed | ||||||
5 | as if the tax were collected at the 6.25% general rate | ||||||
6 | imposed under this Act.
| ||||||
7 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
8 | under this Act on the sale of an aircraft, as defined in | ||||||
9 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
10 | following conditions are met: | ||||||
11 | (1) the aircraft leaves this State within 15 days | ||||||
12 | after the later of either the issuance of the final | ||||||
13 | billing for the sale of the aircraft, or the authorized | ||||||
14 | approval for return to service, completion of the | ||||||
15 | maintenance record entry, and completion of the test | ||||||
16 | flight and ground test for inspection, as required by | ||||||
17 | 14 C.F.R. 91.407; | ||||||
18 | (2) the aircraft is not based or registered in this | ||||||
19 | State after the sale of the aircraft; and | ||||||
20 | (3) the seller retains in his or her books and | ||||||
21 | records and provides to the Department a signed and | ||||||
22 | dated certification from the purchaser, on a form | ||||||
23 | prescribed by the Department, certifying that the | ||||||
24 | requirements of this item (25-7) are met. The | ||||||
25 | certificate must also include the name and address of | ||||||
26 | the purchaser, the address of the location where the |
| |||||||
| |||||||
1 | aircraft is to be titled or registered, the address of | ||||||
2 | the primary physical location of the aircraft, and | ||||||
3 | other information that the Department may reasonably | ||||||
4 | require. | ||||||
5 | For purposes of this item (25-7): | ||||||
6 | "Based in this State" means hangared, stored, or | ||||||
7 | otherwise used, excluding post-sale customizations as | ||||||
8 | defined in this Section, for 10 or more days in each | ||||||
9 | 12-month period immediately following the date of the sale | ||||||
10 | of the aircraft. | ||||||
11 | "Registered in this State" means an aircraft | ||||||
12 | registered with the Department of Transportation, | ||||||
13 | Aeronautics Division, or titled or registered with the | ||||||
14 | Federal Aviation Administration to an address located in | ||||||
15 | this State. | ||||||
16 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
17 | Section 2-70.
| ||||||
18 | (26) Semen used for artificial insemination of | ||||||
19 | livestock for direct
agricultural production.
| ||||||
20 | (27) Horses, or interests in horses, registered with | ||||||
21 | and meeting the
requirements of any of the
Arabian Horse | ||||||
22 | Club Registry of America, Appaloosa Horse Club, American | ||||||
23 | Quarter
Horse Association, United States
Trotting | ||||||
24 | Association, or Jockey Club, as appropriate, used for
| ||||||
25 | purposes of breeding or racing for prizes. This item (27) | ||||||
26 | is exempt from the provisions of Section 2-70, and the |
| |||||||
| |||||||
1 | exemption provided for under this item (27) applies for all | ||||||
2 | periods beginning May 30, 1995, but no claim for credit or | ||||||
3 | refund is allowed on or after January 1, 2008 (the | ||||||
4 | effective date of Public Act 95-88)
for such taxes paid | ||||||
5 | during the period beginning May 30, 2000 and ending on | ||||||
6 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
7 | (28) Computers and communications equipment utilized | ||||||
8 | for any
hospital
purpose
and equipment used in the | ||||||
9 | diagnosis,
analysis, or treatment of hospital patients | ||||||
10 | sold to a lessor who leases the
equipment, under a lease of | ||||||
11 | one year or longer executed or in effect at the
time of the | ||||||
12 | purchase, to a
hospital
that has been issued an active tax | ||||||
13 | exemption identification number by the
Department under | ||||||
14 | Section 1g of this Act.
| ||||||
15 | (29) Personal property sold to a lessor who leases the
| ||||||
16 | property, under a
lease of one year or longer executed or | ||||||
17 | in effect at the time of the purchase,
to a governmental | ||||||
18 | body
that has been issued an active tax exemption | ||||||
19 | identification number by the
Department under Section 1g of | ||||||
20 | this Act.
| ||||||
21 | (30) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995
and
ending with taxable years ending on | ||||||
23 | or before December 31, 2004,
personal property that is
| ||||||
24 | donated for disaster relief to be used in a State or | ||||||
25 | federally declared
disaster area in Illinois or bordering | ||||||
26 | Illinois by a manufacturer or retailer
that is registered |
| |||||||
| |||||||
1 | in this State to a corporation, society, association,
| ||||||
2 | foundation, or institution that has been issued a sales tax | ||||||
3 | exemption
identification number by the Department that | ||||||
4 | assists victims of the disaster
who reside within the | ||||||
5 | declared disaster area.
| ||||||
6 | (31) Beginning with taxable years ending on or after | ||||||
7 | December
31, 1995 and
ending with taxable years ending on | ||||||
8 | or before December 31, 2004, personal
property that is used | ||||||
9 | in the performance of infrastructure repairs in this
State, | ||||||
10 | including but not limited to municipal roads and streets, | ||||||
11 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
12 | water and sewer line extensions,
water distribution and | ||||||
13 | purification facilities, storm water drainage and
| ||||||
14 | retention facilities, and sewage treatment facilities, | ||||||
15 | resulting from a State
or federally declared disaster in | ||||||
16 | Illinois or bordering Illinois when such
repairs are | ||||||
17 | initiated on facilities located in the declared disaster | ||||||
18 | area
within 6 months after the disaster.
| ||||||
19 | (32) Beginning July 1, 1999, game or game birds sold at | ||||||
20 | a "game breeding
and
hunting preserve area" as that term is | ||||||
21 | used
in the
Wildlife Code. This paragraph is exempt from | ||||||
22 | the provisions
of
Section 2-70.
| ||||||
23 | (33) A motor vehicle, as that term is defined in | ||||||
24 | Section 1-146
of the
Illinois Vehicle Code, that is donated | ||||||
25 | to a corporation, limited liability
company, society, | ||||||
26 | association, foundation, or institution that is determined |
| |||||||
| |||||||
1 | by
the Department to be organized and operated exclusively | ||||||
2 | for educational
purposes. For purposes of this exemption, | ||||||
3 | "a corporation, limited liability
company, society, | ||||||
4 | association, foundation, or institution organized and
| ||||||
5 | operated
exclusively for educational purposes" means all | ||||||
6 | tax-supported public schools,
private schools that offer | ||||||
7 | systematic instruction in useful branches of
learning by | ||||||
8 | methods common to public schools and that compare favorably | ||||||
9 | in
their scope and intensity with the course of study | ||||||
10 | presented in tax-supported
schools, and vocational or | ||||||
11 | technical schools or institutes organized and
operated | ||||||
12 | exclusively to provide a course of study of not less than 6 | ||||||
13 | weeks
duration and designed to prepare individuals to | ||||||
14 | follow a trade or to pursue a
manual, technical, | ||||||
15 | mechanical, industrial, business, or commercial
| ||||||
16 | occupation.
| ||||||
17 | (34) Beginning January 1, 2000, personal property, | ||||||
18 | including food, purchased
through fundraising events for | ||||||
19 | the benefit of a public or private elementary or
secondary | ||||||
20 | school, a group of those schools, or one or more school | ||||||
21 | districts if
the events are sponsored by an entity | ||||||
22 | recognized by the school district that
consists primarily | ||||||
23 | of volunteers and includes parents and teachers of the
| ||||||
24 | school children. This paragraph does not apply to | ||||||
25 | fundraising events (i) for
the benefit of private home | ||||||
26 | instruction or (ii) for which the fundraising
entity |
| |||||||
| |||||||
1 | purchases the personal property sold at the events from | ||||||
2 | another
individual or entity that sold the property for the | ||||||
3 | purpose of resale by the
fundraising entity and that | ||||||
4 | profits from the sale to the fundraising entity.
This | ||||||
5 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
6 | (35) Beginning January 1, 2000 and through December 31, | ||||||
7 | 2001, new or used
automatic vending machines that prepare | ||||||
8 | and serve hot food and beverages,
including coffee, soup, | ||||||
9 | and other items, and replacement parts for these
machines. | ||||||
10 | Beginning January 1, 2002 and through June 30, 2003, | ||||||
11 | machines
and parts for machines used in
commercial, | ||||||
12 | coin-operated amusement and vending business if a use or | ||||||
13 | occupation
tax is paid on the gross receipts derived from | ||||||
14 | the use of the commercial,
coin-operated amusement and | ||||||
15 | vending machines. This paragraph is exempt from
the | ||||||
16 | provisions of Section 2-70.
| ||||||
17 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
18 | 2016, food for human consumption that is to be consumed off
| ||||||
19 | the premises where it is sold (other than alcoholic | ||||||
20 | beverages, soft drinks,
and food that has been prepared for | ||||||
21 | immediate consumption) and prescription
and | ||||||
22 | nonprescription medicines, drugs, medical appliances, and | ||||||
23 | insulin, urine
testing materials, syringes, and needles | ||||||
24 | used by diabetics, for human use, when
purchased for use by | ||||||
25 | a person receiving medical assistance under Article V of
| ||||||
26 | the Illinois Public Aid Code who resides in a licensed |
| |||||||
| |||||||
1 | long-term care facility,
as defined in the Nursing Home | ||||||
2 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
3 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
4 | Mental Health Rehabilitation Act of 2013.
| ||||||
5 | (36) Beginning August 2, 2001, computers and | ||||||
6 | communications equipment
utilized for any hospital purpose | ||||||
7 | and equipment used in the diagnosis,
analysis, or treatment | ||||||
8 | of hospital patients sold to a lessor who leases the
| ||||||
9 | equipment, under a lease of one year or longer executed or | ||||||
10 | in effect at the
time of the purchase, to a hospital that | ||||||
11 | has been issued an active tax
exemption identification | ||||||
12 | number by the Department under Section 1g of this Act.
This | ||||||
13 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
14 | (37) Beginning August 2, 2001, personal property sold | ||||||
15 | to a lessor who
leases the property, under a lease of one | ||||||
16 | year or longer executed or in effect
at the time of the | ||||||
17 | purchase, to a governmental body that has been issued an
| ||||||
18 | active tax exemption identification number by the | ||||||
19 | Department under Section 1g
of this Act. This paragraph is | ||||||
20 | exempt from the provisions of Section 2-70.
| ||||||
21 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
22 | 2016, tangible personal property purchased
from an | ||||||
23 | Illinois retailer by a taxpayer engaged in centralized | ||||||
24 | purchasing
activities in Illinois who will, upon receipt of | ||||||
25 | the property in Illinois,
temporarily store the property in | ||||||
26 | Illinois (i) for the purpose of subsequently
transporting |
| |||||||
| |||||||
1 | it outside this State for use or consumption thereafter | ||||||
2 | solely
outside this State or (ii) for the purpose of being | ||||||
3 | processed, fabricated, or
manufactured into, attached to, | ||||||
4 | or incorporated into other tangible personal
property to be | ||||||
5 | transported outside this State and thereafter used or | ||||||
6 | consumed
solely outside this State. The Director of Revenue | ||||||
7 | shall, pursuant to rules
adopted in accordance with the | ||||||
8 | Illinois Administrative Procedure Act, issue a
permit to | ||||||
9 | any taxpayer in good standing with the Department who is | ||||||
10 | eligible for
the exemption under this paragraph (38). The | ||||||
11 | permit issued under
this paragraph (38) shall authorize the | ||||||
12 | holder, to the extent and
in the manner specified in the | ||||||
13 | rules adopted under this Act, to purchase
tangible personal | ||||||
14 | property from a retailer exempt from the taxes imposed by
| ||||||
15 | this Act. Taxpayers shall maintain all necessary books and | ||||||
16 | records to
substantiate the use and consumption of all such | ||||||
17 | tangible personal property
outside of the State of | ||||||
18 | Illinois.
| ||||||
19 | (39) Beginning January 1, 2008, tangible personal | ||||||
20 | property used in the construction or maintenance of a | ||||||
21 | community water supply, as defined under Section 3.145 of | ||||||
22 | the Environmental Protection Act, that is operated by a | ||||||
23 | not-for-profit corporation that holds a valid water supply | ||||||
24 | permit issued under Title IV of the Environmental | ||||||
25 | Protection Act. This paragraph is exempt from the | ||||||
26 | provisions of Section 2-70.
|
| |||||||
| |||||||
1 | (40) Beginning January 1, 2010, materials, parts, | ||||||
2 | equipment, components, and furnishings incorporated into | ||||||
3 | or upon an aircraft as part of the modification, | ||||||
4 | refurbishment, completion, replacement, repair, or | ||||||
5 | maintenance of the aircraft. This exemption includes | ||||||
6 | consumable supplies used in the modification, | ||||||
7 | refurbishment, completion, replacement, repair, and | ||||||
8 | maintenance of aircraft, but excludes any materials, | ||||||
9 | parts, equipment, components, and consumable supplies used | ||||||
10 | in the modification, replacement, repair, and maintenance | ||||||
11 | of aircraft engines or power plants, whether such engines | ||||||
12 | or power plants are installed or uninstalled upon any such | ||||||
13 | aircraft. "Consumable supplies" include, but are not | ||||||
14 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
15 | lubricants, cleaning solution, latex gloves, and | ||||||
16 | protective films. This exemption applies only to the sale | ||||||
17 | of qualifying tangible personal property to persons who | ||||||
18 | modify, refurbish, complete, replace, or maintain an | ||||||
19 | aircraft and who (i) hold an Air Agency Certificate and are | ||||||
20 | empowered to operate an approved repair station by the | ||||||
21 | Federal Aviation Administration, (ii) have a Class IV | ||||||
22 | Rating, and (iii) conduct operations in accordance with | ||||||
23 | Part 145 of the Federal Aviation Regulations. The exemption | ||||||
24 | does not include aircraft operated by a commercial air | ||||||
25 | carrier providing scheduled passenger air service pursuant | ||||||
26 | to authority issued under Part 121 or Part 129 of the |
| |||||||
| |||||||
1 | Federal Aviation Regulations. The changes made to this | ||||||
2 | paragraph (40) by Public Act 98-534 are declarative of | ||||||
3 | existing law. This paragraph is exempt from the provisions | ||||||
4 | of Section 2-70. It is the intent of the General Assembly | ||||||
5 | that the exemption under this paragraph (40) applies | ||||||
6 | continuously on and after January 1, 2010. | ||||||
7 | (41) Tangible personal property sold to a | ||||||
8 | public-facilities corporation, as described in Section | ||||||
9 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
10 | constructing or furnishing a municipal convention hall, | ||||||
11 | but only if the legal title to the municipal convention | ||||||
12 | hall is transferred to the municipality without any further | ||||||
13 | consideration by or on behalf of the municipality at the | ||||||
14 | time of the completion of the municipal convention hall or | ||||||
15 | upon the retirement or redemption of any bonds or other | ||||||
16 | debt instruments issued by the public-facilities | ||||||
17 | corporation in connection with the development of the | ||||||
18 | municipal convention hall. This exemption includes | ||||||
19 | existing public-facilities corporations as provided in | ||||||
20 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
21 | paragraph is exempt from the provisions of Section 2-70. | ||||||
22 | (42) Beginning January 1, 2017, menstrual pads, | ||||||
23 | tampons, and menstrual cups. | ||||||
24 | (43) Merchandise that is subject to the Rental Purchase | ||||||
25 | Agreement Occupation and Use Tax. The purchaser must | ||||||
26 | certify that the item is purchased to be rented subject to |
| |||||||
| |||||||
1 | a rental purchase agreement, as defined in the Rental | ||||||
2 | Purchase Agreement Act, and provide proof of registration | ||||||
3 | under the Rental Purchase Agreement Occupation and Use Tax | ||||||
4 | Act. This paragraph is exempt from the provisions of | ||||||
5 | Section 2-70. | ||||||
6 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
7 | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | ||||||
8 | 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18; | ||||||
9 | 100-1171, eff. 1-4-19; revised 1-8-19.)
| ||||||
10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
|