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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by changing Section | ||||||
5 | 3-5 as follows:
| ||||||
6 | (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
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7 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
8 | personal property
is exempt from the tax imposed by this Act:
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9 | (1) Personal property purchased from a corporation, | ||||||
10 | society, association,
foundation, institution, or | ||||||
11 | organization, other than a limited liability
company, that is | ||||||
12 | organized and operated as a not-for-profit service enterprise
| ||||||
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 |
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| |||||||
1 | support of arts or cultural programming, activities, or | ||||||
2 | services. These
organizations include, but are not limited to, | ||||||
3 | music and dramatic arts
organizations such as symphony | ||||||
4 | orchestras and theatrical groups, arts and
cultural service | ||||||
5 | organizations, local arts councils, visual arts organizations,
| ||||||
6 | and media arts organizations.
On and after the effective date | ||||||
7 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
8 | an entity otherwise eligible for this exemption shall not
make | ||||||
9 | tax-free purchases unless it has an active identification | ||||||
10 | number issued by
the Department.
| ||||||
11 | (4) Personal property purchased by a governmental body, by | ||||||
12 | a
corporation, society, association, foundation, or | ||||||
13 | institution organized and
operated exclusively for charitable, | ||||||
14 | religious, or educational purposes, or
by a not-for-profit | ||||||
15 | corporation, society, association, foundation,
institution, or | ||||||
16 | organization that has no compensated officers or employees
and | ||||||
17 | that is organized and operated primarily for the recreation of | ||||||
18 | persons
55 years of age or older. A limited liability company | ||||||
19 | may qualify for the
exemption under this paragraph only if the | ||||||
20 | limited liability company is
organized and operated | ||||||
21 | exclusively for educational purposes. On and after July
1, | ||||||
22 | 1987, however, no entity otherwise eligible for this exemption | ||||||
23 | shall make
tax-free purchases unless it has an active exemption | ||||||
24 | identification number
issued by the Department.
| ||||||
25 | (5) Until July 1, 2003, a passenger car that is a | ||||||
26 | replacement vehicle to
the extent that the
purchase price of |
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1 | the car is subject to the Replacement Vehicle Tax.
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2 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
3 | 2004, graphic arts machinery and equipment, including
repair | ||||||
4 | and replacement
parts, both new and used, and including that | ||||||
5 | manufactured on special order,
certified by the purchaser to be | ||||||
6 | used primarily for graphic arts production,
and including | ||||||
7 | machinery and equipment purchased for lease.
Equipment | ||||||
8 | includes chemicals or chemicals acting as catalysts but only if
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9 | the
chemicals or chemicals acting as catalysts effect a direct | ||||||
10 | and immediate change
upon a graphic arts product.
| ||||||
11 | (7) Farm chemicals.
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12 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
13 | coinage issued by
the State of Illinois, the government of the | ||||||
14 | United States of America, or the
government of any foreign | ||||||
15 | country, and bullion.
| ||||||
16 | (9) Personal property purchased from a teacher-sponsored | ||||||
17 | student
organization affiliated with an elementary or | ||||||
18 | secondary school located in
Illinois.
| ||||||
19 | (10) A motor vehicle of the first division, a motor vehicle | ||||||
20 | of the
second division that is a self-contained motor vehicle | ||||||
21 | designed or
permanently converted to provide living quarters | ||||||
22 | for recreational, camping,
or travel use, with direct walk | ||||||
23 | through to the living quarters from the
driver's seat, or a | ||||||
24 | motor vehicle of the second division that is of the
van | ||||||
25 | configuration designed for the transportation of not less than | ||||||
26 | 7 nor
more than 16 passengers, as defined in Section 1-146 of |
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1 | the Illinois
Vehicle Code, that is used for automobile renting, | ||||||
2 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
3 | Act.
| ||||||
4 | (11) Farm machinery and equipment, both new and used,
| ||||||
5 | including that manufactured on special order, certified by the | ||||||
6 | purchaser
to be used primarily for production agriculture or | ||||||
7 | State or federal
agricultural programs, including individual | ||||||
8 | replacement parts for
the machinery and equipment, including | ||||||
9 | machinery and equipment
purchased
for lease,
and including | ||||||
10 | implements of husbandry defined in Section 1-130 of
the | ||||||
11 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
12 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
13 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
14 | but excluding other motor
vehicles required to be
registered | ||||||
15 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
16 | hoop houses used for propagating, growing, or
overwintering | ||||||
17 | plants shall be considered farm machinery and equipment under
| ||||||
18 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
19 | boxes shall include units sold
separately from a motor vehicle | ||||||
20 | required to be licensed and units sold mounted
on a motor | ||||||
21 | vehicle required to be licensed if the selling price of the | ||||||
22 | tender
is separately stated.
| ||||||
23 | Farm machinery and equipment shall include precision | ||||||
24 | farming equipment
that is
installed or purchased to be | ||||||
25 | installed on farm machinery and equipment
including, but not | ||||||
26 | limited to, tractors, harvesters, sprayers, planters,
seeders, |
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1 | or spreaders.
Precision farming equipment includes, but is not | ||||||
2 | limited to, soil testing
sensors, computers, monitors, | ||||||
3 | software, global positioning
and mapping systems, and other | ||||||
4 | such equipment.
| ||||||
5 | Farm machinery and equipment also includes computers, | ||||||
6 | sensors, software, and
related equipment used primarily in the
| ||||||
7 | computer-assisted operation of production agriculture | ||||||
8 | facilities, equipment,
and
activities such as, but not limited | ||||||
9 | to,
the collection, monitoring, and correlation of
animal and | ||||||
10 | crop data for the purpose of
formulating animal diets and | ||||||
11 | agricultural chemicals. This item (11) is exempt
from the | ||||||
12 | provisions of
Section 3-90.
| ||||||
13 | (12) Fuel and petroleum products sold to or used by an air | ||||||
14 | common
carrier, certified by the carrier to be used for | ||||||
15 | consumption, shipment, or
storage in the conduct of its | ||||||
16 | business as an air common carrier, for a
flight destined for or | ||||||
17 | returning from a location or locations
outside the United | ||||||
18 | States without regard to previous or subsequent domestic
| ||||||
19 | stopovers.
| ||||||
20 | (13) Proceeds of mandatory service charges separately
| ||||||
21 | stated on customers' bills for the purchase and consumption of | ||||||
22 | food and
beverages purchased at retail from a retailer, to the | ||||||
23 | extent that the proceeds
of the service charge are in fact | ||||||
24 | turned over as tips or as a substitute
for tips to the | ||||||
25 | employees who participate directly in preparing, serving,
| ||||||
26 | hosting or cleaning up the food or beverage function with |
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1 | respect to which
the service charge is imposed.
| ||||||
2 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
3 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
4 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
5 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
6 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
7 | individual replacement part for oil
field exploration, | ||||||
8 | drilling, and production equipment, and (vi) machinery and
| ||||||
9 | equipment purchased
for lease; but excluding motor vehicles | ||||||
10 | required to be registered under the
Illinois Vehicle Code.
| ||||||
11 | (15) Photoprocessing machinery and equipment, including | ||||||
12 | repair and
replacement parts, both new and used, including that
| ||||||
13 | manufactured on special order, certified by the purchaser to be | ||||||
14 | used
primarily for photoprocessing, and including
| ||||||
15 | photoprocessing machinery and equipment purchased for lease.
| ||||||
16 | (16) Until July 1, 2003, coal exploration, mining, | ||||||
17 | offhighway hauling,
processing, maintenance, and reclamation | ||||||
18 | equipment,
including replacement parts and equipment, and
| ||||||
19 | including equipment purchased for lease, but excluding motor
| ||||||
20 | vehicles required to be registered under the Illinois Vehicle | ||||||
21 | Code.
| ||||||
22 | (17) Until July 1, 2003, distillation machinery and | ||||||
23 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
24 | retailer, certified by the user to be used
only for the | ||||||
25 | production of ethyl alcohol that will be used for consumption
| ||||||
26 | as motor fuel or as a component of motor fuel for the personal |
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| |||||||
1 | use of the
user, and not subject to sale or resale.
| ||||||
2 | (18) Manufacturing and assembling machinery and equipment | ||||||
3 | used
primarily in the process of manufacturing or assembling | ||||||
4 | tangible
personal property for wholesale or retail sale or | ||||||
5 | lease, whether that sale
or lease is made directly by the | ||||||
6 | manufacturer or by some other person,
whether the materials | ||||||
7 | used in the process are
owned by the manufacturer or some other | ||||||
8 | person, or whether that sale or
lease is made apart from or as | ||||||
9 | an incident to the seller's engaging in
the service occupation | ||||||
10 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
11 | other similar items of no commercial value on
special order for | ||||||
12 | a particular purchaser.
| ||||||
13 | (19) Personal property delivered to a purchaser or | ||||||
14 | purchaser's donee
inside Illinois when the purchase order for | ||||||
15 | that personal property was
received by a florist located | ||||||
16 | outside Illinois who has a florist located
inside Illinois | ||||||
17 | deliver the personal property.
| ||||||
18 | (20) Semen used for artificial insemination of livestock | ||||||
19 | for direct
agricultural production.
| ||||||
20 | (21) Horses, or interests in horses, registered with and | ||||||
21 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
22 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
23 | Horse Association, United States
Trotting Association, or | ||||||
24 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
25 | racing for prizes.
| ||||||
26 | (22) Computers and communications equipment utilized for |
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1 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
2 | analysis, or treatment of hospital patients purchased by a | ||||||
3 | lessor who leases
the
equipment, under a lease of one year or | ||||||
4 | longer executed or in effect at the
time the lessor would | ||||||
5 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
6 | hospital
that has been issued an active tax exemption | ||||||
7 | identification number by
the
Department under Section 1g of the | ||||||
8 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
9 | manner that does not qualify for
this exemption or is used in | ||||||
10 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
11 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
12 | case may
be, based on the fair market value of the property at | ||||||
13 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
14 | or attempt to collect an
amount (however
designated) that | ||||||
15 | purports to reimburse that lessor for the tax imposed by this
| ||||||
16 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
17 | has not been
paid by the lessor. If a lessor improperly | ||||||
18 | collects any such amount from the
lessee, the lessee shall have | ||||||
19 | a legal right to claim a refund of that amount
from the lessor. | ||||||
20 | If, however, that amount is not refunded to the lessee for
any | ||||||
21 | reason, the lessor is liable to pay that amount to the | ||||||
22 | Department.
| ||||||
23 | (23) Personal property purchased by a lessor who leases the
| ||||||
24 | property, under
a
lease of
one year or longer executed or in | ||||||
25 | effect at the time
the lessor would otherwise be subject to the | ||||||
26 | tax imposed by this Act,
to a governmental body
that has been |
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| |||||||
1 | issued an active sales tax exemption identification number by | ||||||
2 | the
Department under Section 1g of the Retailers' Occupation | ||||||
3 | Tax Act.
If the
property is leased in a manner that does not | ||||||
4 | qualify for
this exemption
or used in any other non-exempt | ||||||
5 | manner, the lessor shall be liable for the
tax imposed under | ||||||
6 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
7 | on the fair market value of the property at the time the
| ||||||
8 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
9 | to collect an
amount (however
designated) that purports to | ||||||
10 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
11 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
12 | paid by the lessor. If a lessor improperly collects any such | ||||||
13 | amount from the
lessee, the lessee shall have a legal right to | ||||||
14 | claim a refund of that amount
from the lessor. If, however, | ||||||
15 | that amount is not refunded to the lessee for
any reason, the | ||||||
16 | lessor is liable to pay that amount to the Department.
| ||||||
17 | (24) Beginning with taxable years ending on or after | ||||||
18 | December
31, 1995
and
ending with taxable years ending on or | ||||||
19 | before December 31, 2004,
personal property that is
donated for | ||||||
20 | disaster relief to be used in a State or federally declared
| ||||||
21 | disaster area in Illinois or bordering Illinois by a | ||||||
22 | manufacturer or retailer
that is registered in this State to a | ||||||
23 | corporation, society, association,
foundation, or institution | ||||||
24 | that has been issued a sales tax exemption
identification | ||||||
25 | number by the Department that assists victims of the disaster
| ||||||
26 | who reside within the declared disaster area.
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1 | (25) Beginning with taxable years ending on or after | ||||||
2 | December
31, 1995 and
ending with taxable years ending on or | ||||||
3 | before December 31, 2004, personal
property that is used in the | ||||||
4 | performance of infrastructure repairs in this
State, including | ||||||
5 | but not limited to municipal roads and streets, access roads,
| ||||||
6 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
7 | line extensions,
water distribution and purification | ||||||
8 | facilities, storm water drainage and
retention facilities, and | ||||||
9 | sewage treatment facilities, resulting from a State
or | ||||||
10 | federally declared disaster in Illinois or bordering Illinois | ||||||
11 | when such
repairs are initiated on facilities located in the | ||||||
12 | declared disaster area
within 6 months after the disaster.
| ||||||
13 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
14 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
15 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
16 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
17 | Department of Natural Resources. This paragraph is exempt from | ||||||
18 | the provisions
of
Section 3-90.
| ||||||
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 |
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| |||||||
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, 2011, | ||||||
10 | food for human consumption that is to be consumed off the | ||||||
11 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
12 | drinks, and food that
has been prepared for immediate | ||||||
13 | consumption) and prescription and
nonprescription medicines, | ||||||
14 | drugs, medical appliances, and insulin, urine
testing | ||||||
15 | materials, syringes, and needles used by diabetics, for human | ||||||
16 | use, when
purchased for use by a person receiving medical | ||||||
17 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
18 | resides in a licensed long-term care facility,
as defined in | ||||||
19 | the Nursing Home Care Act.
| ||||||
20 | (31) Beginning on
the effective date of this amendatory Act | ||||||
21 | of the 92nd General Assembly,
computers and communications | ||||||
22 | equipment
utilized for any hospital purpose and equipment used | ||||||
23 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
24 | purchased by a lessor who leases
the equipment, under a lease | ||||||
25 | of one year or longer executed or in effect at the
time the | ||||||
26 | lessor would otherwise be subject to the tax imposed by this |
| |||||||
| |||||||
1 | Act, to a
hospital that has been issued an active tax exemption | ||||||
2 | identification number by
the Department under Section 1g of the | ||||||
3 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
4 | manner that does not qualify for this exemption or is
used in | ||||||
5 | any other nonexempt manner, the lessor shall be liable for the | ||||||
6 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
7 | case may be, based on
the fair market value of the property at | ||||||
8 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
9 | or attempt to collect an amount (however
designated) that | ||||||
10 | purports to reimburse that lessor for the tax imposed by this
| ||||||
11 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
12 | has not been
paid by the lessor. If a lessor improperly | ||||||
13 | collects any such amount from the
lessee, the lessee shall have | ||||||
14 | a legal right to claim a refund of that amount
from the lessor. | ||||||
15 | If, however, that amount is not refunded to the lessee for
any | ||||||
16 | reason, the lessor is liable to pay that amount to the | ||||||
17 | Department.
This paragraph is exempt from the provisions of | ||||||
18 | Section 3-90.
| ||||||
19 | (32) Beginning on
the effective date of this amendatory Act | ||||||
20 | of the 92nd General Assembly,
personal property purchased by a | ||||||
21 | lessor who leases the property,
under a lease of one year or | ||||||
22 | longer executed or in effect at the time the
lessor would | ||||||
23 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
24 | governmental body that has been issued an active sales tax | ||||||
25 | exemption
identification number by the Department under | ||||||
26 | Section 1g of the Retailers'
Occupation Tax Act. If the |
| |||||||
| |||||||
1 | property is leased in a manner that does not
qualify for this | ||||||
2 | exemption or used in any other nonexempt manner, the lessor
| ||||||
3 | shall be liable for the tax imposed under this Act or the | ||||||
4 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
5 | market value of the property at the time
the nonqualifying use | ||||||
6 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
7 | (however designated) that purports to reimburse that lessor for | ||||||
8 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
9 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
10 | lessor improperly collects any such
amount from the lessee, the | ||||||
11 | lessee shall have a legal right to claim a refund
of that | ||||||
12 | amount from the lessor. If, however, that amount is not | ||||||
13 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
14 | pay that amount to the
Department. This paragraph is exempt | ||||||
15 | from the provisions of Section 3-90.
| ||||||
16 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
17 | the use in this State of motor vehicles of
the second division | ||||||
18 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
19 | are subject to the commercial distribution fee imposed under | ||||||
20 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
21 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
22 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
23 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
24 | to the commercial distribution fee imposed under Section | ||||||
25 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
26 | primarily used for commercial purposes. Through June 30, 2005, |
| |||||||
| |||||||
1 | this exemption applies to repair and
replacement parts added | ||||||
2 | after the initial purchase of such a motor vehicle if
that | ||||||
3 | motor
vehicle is used in a manner that would qualify for the | ||||||
4 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
5 | purposes of this paragraph, the term "used for commercial | ||||||
6 | purposes" means the transportation of persons or property in | ||||||
7 | furtherance of any commercial or industrial enterprise, | ||||||
8 | whether for-hire or not.
| ||||||
9 | (34) Beginning January 1, 2008, tangible personal property | ||||||
10 | used in the construction, maintenance, or operation of a | ||||||
11 | community water supply, as defined under Section 3.145 of the | ||||||
12 | Environmental Protection Act, that is operated by a | ||||||
13 | not-for-profit corporation that holds a valid water supply | ||||||
14 | permit issued under Title IV of the Environmental Protection | ||||||
15 | Act. This paragraph is exempt from the provisions of Section | ||||||
16 | 3-90.
| ||||||
17 | (Source: P.A. 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, | ||||||
18 | eff. 7-30-04; 93-1033, eff. 9-3-04; 94-1002, eff. 7-3-06.)
| ||||||
19 | Section 10. The Service Use Tax Act is amended by changing | ||||||
20 | Section 3-5 as follows:
| ||||||
21 | (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| ||||||
22 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
23 | personal property
is exempt from the tax imposed by this Act:
| ||||||
24 | (1) Personal property purchased from a corporation, |
| |||||||
| |||||||
1 | society,
association, foundation, institution, or | ||||||
2 | organization, other than a limited
liability company, that is | ||||||
3 | organized and operated as a not-for-profit service
enterprise | ||||||
4 | for the benefit of persons 65 years of age or older if the | ||||||
5 | personal
property was not purchased by the enterprise for the | ||||||
6 | purpose of resale by the
enterprise.
| ||||||
7 | (2) Personal property purchased by a non-profit Illinois | ||||||
8 | county fair
association for use in conducting, operating, or | ||||||
9 | promoting the county fair.
| ||||||
10 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
11 | 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 the effective date | ||||||
21 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
22 | an entity otherwise eligible for this exemption shall not
make | ||||||
23 | tax-free purchases unless it has an active identification | ||||||
24 | 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, graphic arts machinery and equipment, including
repair | ||||||
5 | and
replacement parts, both new and used, and including that | ||||||
6 | manufactured on
special order or purchased for lease, certified | ||||||
7 | by the purchaser to be used
primarily for graphic arts | ||||||
8 | production.
Equipment includes chemicals or
chemicals acting | ||||||
9 | as catalysts but only if
the chemicals or chemicals acting as | ||||||
10 | catalysts effect a direct and immediate
change upon a graphic | ||||||
11 | arts product.
| ||||||
12 | (6) Personal property purchased from a teacher-sponsored | ||||||
13 | student
organization affiliated with an elementary or | ||||||
14 | secondary school located
in Illinois.
| ||||||
15 | (7) Farm machinery and equipment, both new and used, | ||||||
16 | including that
manufactured on special order, certified by the | ||||||
17 | purchaser to be used
primarily for production agriculture or | ||||||
18 | State or federal agricultural
programs, including individual | ||||||
19 | replacement parts for the machinery and
equipment, including | ||||||
20 | machinery and equipment purchased for lease,
and including | ||||||
21 | implements of husbandry defined in Section 1-130 of
the | ||||||
22 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
23 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
24 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
25 | but
excluding other motor vehicles required to be registered | ||||||
26 | under the Illinois
Vehicle Code.
Horticultural polyhouses or |
| |||||||
| |||||||
1 | hoop houses used for propagating, growing, or
overwintering | ||||||
2 | plants shall be considered farm machinery and equipment under
| ||||||
3 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
4 | shall include units sold
separately from a motor vehicle | ||||||
5 | required to be licensed and units sold mounted
on a motor | ||||||
6 | vehicle required to be licensed if the selling price of the | ||||||
7 | tender
is separately stated.
| ||||||
8 | Farm machinery and equipment shall include precision | ||||||
9 | farming equipment
that is
installed or purchased to be | ||||||
10 | installed on farm machinery and equipment
including, but not | ||||||
11 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
12 | or spreaders.
Precision farming equipment includes, but is not | ||||||
13 | limited to,
soil testing sensors, computers, monitors, | ||||||
14 | software, global positioning
and mapping systems, and other | ||||||
15 | such equipment.
| ||||||
16 | Farm machinery and equipment also includes computers, | ||||||
17 | sensors, software, and
related equipment used primarily in the
| ||||||
18 | computer-assisted operation of production agriculture | ||||||
19 | facilities, equipment,
and activities such as, but
not limited | ||||||
20 | to,
the collection, monitoring, and correlation of
animal and | ||||||
21 | crop data for the purpose of
formulating animal diets and | ||||||
22 | agricultural chemicals. This item (7) is exempt
from the | ||||||
23 | provisions of
Section 3-75.
| ||||||
24 | (8) Fuel and petroleum products sold to or used by an air | ||||||
25 | common
carrier, certified by the carrier to be used for | ||||||
26 | consumption, shipment, or
storage in the conduct of its |
| |||||||
| |||||||
1 | business as an air common carrier, for a
flight destined for or | ||||||
2 | returning from a location or locations
outside the United | ||||||
3 | States without regard to previous or subsequent domestic
| ||||||
4 | stopovers.
| ||||||
5 | (9) Proceeds of mandatory service charges separately | ||||||
6 | stated on
customers' bills for the purchase and consumption of | ||||||
7 | food and beverages
acquired as an incident to the purchase of a | ||||||
8 | service from a serviceman, to
the extent that the proceeds of | ||||||
9 | the service charge are in fact
turned over as tips or as a | ||||||
10 | substitute for tips to the employees who
participate directly | ||||||
11 | in preparing, serving, hosting or cleaning up the
food or | ||||||
12 | beverage function with respect to which the service charge is | ||||||
13 | imposed.
| ||||||
14 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
15 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
16 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
17 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
18 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
19 | individual replacement part for oil field exploration,
| ||||||
20 | drilling, and production equipment, and (vi) machinery and | ||||||
21 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
22 | required to be registered under the Illinois
Vehicle Code.
| ||||||
23 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
24 | and
equipment, including repair and replacement parts, both new | ||||||
25 | and
used, including that manufactured on special order, | ||||||
26 | certified by the
purchaser to be used primarily for |
| |||||||
| |||||||
1 | photoprocessing, and including
photoprocessing machinery and | ||||||
2 | equipment purchased for lease.
| ||||||
3 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
4 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
5 | equipment, including
replacement parts and equipment, and | ||||||
6 | including
equipment purchased for lease, but excluding motor | ||||||
7 | vehicles required to be
registered under the Illinois Vehicle | ||||||
8 | Code.
| ||||||
9 | (13) Semen used for artificial insemination of livestock | ||||||
10 | for direct
agricultural production.
| ||||||
11 | (14) Horses, or interests in horses, registered with and | ||||||
12 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
13 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
14 | Horse Association, United States
Trotting Association, or | ||||||
15 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
16 | racing for prizes.
| ||||||
17 | (15) Computers and communications equipment utilized for | ||||||
18 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
19 | analysis, or treatment of hospital patients purchased by a | ||||||
20 | lessor who leases
the
equipment, under a lease of one year or | ||||||
21 | longer executed or in effect at the
time
the lessor would | ||||||
22 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
23 | hospital
that has been issued an active tax exemption | ||||||
24 | identification number by the
Department under Section 1g of the | ||||||
25 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
26 | manner that does not qualify for
this exemption
or is used in |
| |||||||
| |||||||
1 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
2 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
3 | be, based on the fair market value of the property at the time | ||||||
4 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
5 | attempt to collect an
amount (however
designated) that purports | ||||||
6 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
7 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
8 | the lessor. If a lessor improperly collects any such amount | ||||||
9 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
10 | refund of that amount
from the lessor. If, however, that amount | ||||||
11 | is not refunded to the lessee for
any reason, the lessor is | ||||||
12 | liable to pay that amount to the Department.
| ||||||
13 | (16) Personal property purchased by a lessor who leases the
| ||||||
14 | property, under
a
lease of one year or longer executed or in | ||||||
15 | effect at the time
the lessor would otherwise be subject to the | ||||||
16 | tax imposed by this Act,
to a governmental body
that has been | ||||||
17 | issued an active tax exemption identification number by the
| ||||||
18 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
19 | Act.
If the
property is leased in a manner that does not | ||||||
20 | qualify for
this exemption
or is used in any other non-exempt | ||||||
21 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
22 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
23 | fair market value of the property at the time the
| ||||||
24 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
25 | to collect an
amount (however
designated) that purports to | ||||||
26 | reimburse that lessor for the tax imposed by this
Act or the |
| |||||||
| |||||||
1 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
2 | the lessor. If a lessor improperly collects any such amount | ||||||
3 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
4 | refund of that amount
from the lessor. If, however, that amount | ||||||
5 | is not refunded to the lessee for
any reason, the lessor is | ||||||
6 | liable to pay that amount to the Department.
| ||||||
7 | (17) Beginning with taxable years ending on or after | ||||||
8 | December
31,
1995
and
ending with taxable years ending on or | ||||||
9 | before December 31, 2004,
personal property that is
donated for | ||||||
10 | disaster relief to be used in a State or federally declared
| ||||||
11 | disaster area in Illinois or bordering Illinois by a | ||||||
12 | manufacturer or retailer
that is registered in this State to a | ||||||
13 | corporation, society, association,
foundation, or institution | ||||||
14 | that has been issued a sales tax exemption
identification | ||||||
15 | number by the Department that assists victims of the disaster
| ||||||
16 | who reside within the declared disaster area.
| ||||||
17 | (18) Beginning with taxable years ending on or after | ||||||
18 | December
31, 1995 and
ending with taxable years ending on or | ||||||
19 | before December 31, 2004, personal
property that is used in the | ||||||
20 | performance of infrastructure repairs in this
State, including | ||||||
21 | but not limited to municipal roads and streets, access roads,
| ||||||
22 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
23 | line extensions,
water distribution and purification | ||||||
24 | facilities, storm water drainage and
retention facilities, and | ||||||
25 | sewage treatment facilities, resulting from a State
or | ||||||
26 | federally declared disaster in Illinois or bordering Illinois |
| |||||||
| |||||||
1 | when such
repairs are initiated on facilities located in the | ||||||
2 | declared disaster area
within 6 months after the disaster.
| ||||||
3 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
4 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
5 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
6 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
7 | Department of Natural Resources. This paragraph is exempt from | ||||||
8 | the provisions
of
Section 3-75.
| ||||||
9 | (20) A motor vehicle, as that term is defined in Section | ||||||
10 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
11 | corporation, limited liability
company, society, association, | ||||||
12 | foundation, or institution that is determined by
the Department | ||||||
13 | to be organized and operated exclusively for educational
| ||||||
14 | purposes. For purposes of this exemption, "a corporation, | ||||||
15 | limited liability
company, society, association, foundation, | ||||||
16 | or institution organized and
operated
exclusively for | ||||||
17 | educational purposes" means all tax-supported public schools,
| ||||||
18 | private schools that offer systematic instruction in useful | ||||||
19 | branches of
learning by methods common to public schools and | ||||||
20 | that compare favorably in
their scope and intensity with the | ||||||
21 | course of study presented in tax-supported
schools, and | ||||||
22 | vocational or technical schools or institutes organized and
| ||||||
23 | operated exclusively to provide a course of study of not less | ||||||
24 | than 6 weeks
duration and designed to prepare individuals to | ||||||
25 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
26 | industrial, business, or commercial
occupation.
|
| |||||||
| |||||||
1 | (21) Beginning January 1, 2000, personal property, | ||||||
2 | including
food,
purchased through fundraising
events for the | ||||||
3 | benefit of
a public or private elementary or
secondary school, | ||||||
4 | a group of those schools, or one or more school
districts if | ||||||
5 | the events are
sponsored by an entity recognized by the school | ||||||
6 | district that consists
primarily of volunteers and includes
| ||||||
7 | parents and teachers of the school children. This paragraph | ||||||
8 | does not apply
to fundraising
events (i) for the benefit of | ||||||
9 | private home instruction or (ii)
for which the fundraising | ||||||
10 | entity purchases the personal property sold at
the events from | ||||||
11 | another individual or entity that sold the property for the
| ||||||
12 | purpose of resale by the fundraising entity and that
profits | ||||||
13 | from the sale to the
fundraising entity. This paragraph is | ||||||
14 | exempt
from the provisions
of Section 3-75.
| ||||||
15 | (22) Beginning January 1, 2000
and through December 31, | ||||||
16 | 2001, new or used automatic vending
machines that prepare and | ||||||
17 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
18 | items, and replacement parts for these machines.
Beginning | ||||||
19 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
20 | for machines used in
commercial, coin-operated
amusement
and | ||||||
21 | vending business if a use or occupation tax is paid on the | ||||||
22 | gross receipts
derived from
the use of the commercial, | ||||||
23 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
24 | is exempt from the provisions of Section 3-75.
| ||||||
25 | (23) Beginning August 23, 2001 and through June 30, 2011, | ||||||
26 | food for human consumption that is to be consumed off the
|
| |||||||
| |||||||
1 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
2 | drinks, and food that
has been prepared for immediate | ||||||
3 | consumption) and prescription and
nonprescription medicines, | ||||||
4 | drugs, medical appliances, and insulin, urine
testing | ||||||
5 | materials, syringes, and needles used by diabetics, for human | ||||||
6 | use, when
purchased for use by a person receiving medical | ||||||
7 | assistance under Article 5 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.
| ||||||
10 | (24) Beginning on the effective date of this amendatory Act | ||||||
11 | of the 92nd
General Assembly, computers and communications | ||||||
12 | equipment
utilized for any hospital purpose and equipment used | ||||||
13 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
14 | purchased by a lessor who leases
the equipment, under a lease | ||||||
15 | of one year or longer executed or in effect at the
time the | ||||||
16 | lessor would otherwise be subject to the tax imposed by this | ||||||
17 | Act, to a
hospital that has been issued an active tax exemption | ||||||
18 | identification number by
the Department under Section 1g of the | ||||||
19 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
20 | manner that does not qualify for this exemption or is
used in | ||||||
21 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
22 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
23 | be, based on the
fair market value of the property at the time | ||||||
24 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
25 | attempt to collect an amount (however
designated) that purports | ||||||
26 | to reimburse that lessor for the tax imposed by this
Act or the |
| |||||||
| |||||||
1 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
2 | the lessor. If a lessor improperly collects any such amount | ||||||
3 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
4 | refund of that amount
from the lessor. If, however, that amount | ||||||
5 | is not refunded to the lessee for
any reason, the lessor is | ||||||
6 | liable to pay that amount to the Department.
This paragraph is | ||||||
7 | exempt from the provisions of Section 3-75.
| ||||||
8 | (25) Beginning
on the effective date of this amendatory Act | ||||||
9 | of the 92nd General Assembly,
personal property purchased by a | ||||||
10 | lessor
who leases the property, under a lease of one year or | ||||||
11 | longer executed or in
effect at the time the lessor would | ||||||
12 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
13 | governmental body that has been issued an active tax exemption
| ||||||
14 | identification number by the Department under Section 1g of the | ||||||
15 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
16 | manner that does not
qualify for this exemption or is used in | ||||||
17 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
18 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
19 | be, based on the fair market value of the property at the time
| ||||||
20 | the nonqualifying use occurs. No lessor shall collect or | ||||||
21 | attempt to collect
an amount (however designated) that purports | ||||||
22 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
23 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
24 | the lessor. If a lessor improperly collects any such amount
| ||||||
25 | from the lessee, the lessee shall have a legal right to claim a | ||||||
26 | refund of that
amount from the lessor. If, however, that amount |
| |||||||
| |||||||
1 | is not refunded to the lessee
for any reason, the lessor is | ||||||
2 | liable to pay that amount to the Department.
This paragraph is | ||||||
3 | exempt from the provisions of Section 3-75.
| ||||||
4 | (26) Beginning January 1, 2008, tangible personal property | ||||||
5 | used in the construction, maintenance, or operation of a | ||||||
6 | community water supply, as defined under Section 3.145 of the | ||||||
7 | Environmental Protection Act, that is operated by a | ||||||
8 | not-for-profit corporation that holds a valid water supply | ||||||
9 | permit issued under Title IV of the Environmental Protection | ||||||
10 | Act. This paragraph is exempt from the provisions of Section | ||||||
11 | 3-75.
| ||||||
12 | (Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04; | ||||||
13 | 94-1002, eff. 7-3-06.)
| ||||||
14 | Section 15. The Service Occupation Tax Act is amended by | ||||||
15 | changing Section 3-5 as follows:
| ||||||
16 | (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| ||||||
17 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
18 | property is
exempt from the tax imposed by this Act:
| ||||||
19 | (1) Personal property sold by a corporation, society, | ||||||
20 | association,
foundation, institution, or organization, other | ||||||
21 | than a limited liability
company, that is organized and | ||||||
22 | operated as a not-for-profit service enterprise
for the benefit | ||||||
23 | of persons 65 years of age or older if the personal property
| ||||||
24 | was not purchased by the enterprise for the purpose of resale |
| |||||||
| |||||||
1 | by the
enterprise.
| ||||||
2 | (2) Personal property purchased by a not-for-profit | ||||||
3 | Illinois county fair
association for use in conducting, | ||||||
4 | operating, or promoting the county fair.
| ||||||
5 | (3) Personal property purchased by any not-for-profit
arts | ||||||
6 | or cultural organization that establishes, by proof required by | ||||||
7 | the
Department by
rule, that it has received an exemption under | ||||||
8 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
9 | organized and operated primarily for the
presentation
or | ||||||
10 | support of arts or cultural programming, activities, or | ||||||
11 | services. These
organizations include, but are not limited to, | ||||||
12 | music and dramatic arts
organizations such as symphony | ||||||
13 | orchestras and theatrical groups, arts and
cultural service | ||||||
14 | organizations, local arts councils, visual arts organizations,
| ||||||
15 | and media arts organizations.
On and after the effective date | ||||||
16 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
17 | an entity otherwise eligible for this exemption shall not
make | ||||||
18 | tax-free purchases unless it has an active identification | ||||||
19 | number issued by
the Department.
| ||||||
20 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
21 | coinage
issued by the State of Illinois, the government of the | ||||||
22 | United States of
America, or the government of any foreign | ||||||
23 | country, and bullion.
| ||||||
24 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
25 | 2004, graphic arts machinery and equipment, including
repair | ||||||
26 | and
replacement parts, both new and used, and including that |
| |||||||
| |||||||
1 | manufactured on
special order or purchased for lease, certified | ||||||
2 | by the purchaser to be used
primarily for graphic arts | ||||||
3 | production.
Equipment includes chemicals or chemicals acting | ||||||
4 | as catalysts but only if
the
chemicals or chemicals acting as | ||||||
5 | catalysts effect a direct and immediate change
upon a graphic | ||||||
6 | arts product.
| ||||||
7 | (6) Personal property sold by a teacher-sponsored student | ||||||
8 | organization
affiliated with an elementary or secondary school | ||||||
9 | located in Illinois.
| ||||||
10 | (7) Farm machinery and equipment, both new and used, | ||||||
11 | including that
manufactured on special order, certified by the | ||||||
12 | purchaser to be used
primarily for production agriculture or | ||||||
13 | State or federal agricultural
programs, including individual | ||||||
14 | replacement parts for the machinery and
equipment, including | ||||||
15 | machinery and equipment purchased for lease,
and including | ||||||
16 | implements of husbandry defined in Section 1-130 of
the | ||||||
17 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
18 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
19 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
20 | but
excluding other motor vehicles required to be registered | ||||||
21 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
22 | hoop houses used for propagating, growing, or
overwintering | ||||||
23 | plants shall be considered farm machinery and equipment under
| ||||||
24 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
25 | shall include units sold
separately from a motor vehicle | ||||||
26 | required to be licensed and units sold mounted
on a motor |
| |||||||
| |||||||
1 | vehicle required to be licensed if the selling price of the | ||||||
2 | tender
is separately stated.
| ||||||
3 | Farm machinery and equipment shall include precision | ||||||
4 | farming equipment
that is
installed or purchased to be | ||||||
5 | installed on farm machinery and equipment
including, but not | ||||||
6 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
7 | or spreaders.
Precision farming equipment includes, but is not | ||||||
8 | limited to,
soil testing sensors, computers, monitors, | ||||||
9 | software, global positioning
and mapping systems, and other | ||||||
10 | such equipment.
| ||||||
11 | Farm machinery and equipment also includes computers, | ||||||
12 | sensors, software, and
related equipment used primarily in the
| ||||||
13 | computer-assisted operation of production agriculture | ||||||
14 | facilities, equipment,
and activities such as, but
not limited | ||||||
15 | to,
the collection, monitoring, and correlation of
animal and | ||||||
16 | crop data for the purpose of
formulating animal diets and | ||||||
17 | agricultural chemicals. This item (7) is exempt
from the | ||||||
18 | provisions of
Section 3-55.
| ||||||
19 | (8) Fuel and petroleum products sold to or used by an air | ||||||
20 | common
carrier, certified by the carrier to be used for | ||||||
21 | consumption, shipment,
or storage in the conduct of its | ||||||
22 | business as an air common carrier, for
a flight destined for or | ||||||
23 | returning from a location or locations
outside the United | ||||||
24 | States without regard to previous or subsequent domestic
| ||||||
25 | stopovers.
| ||||||
26 | (9) Proceeds of mandatory service charges separately
|
| |||||||
| |||||||
1 | stated on customers' bills for the purchase and consumption of | ||||||
2 | food and
beverages, to the extent that the proceeds of the | ||||||
3 | 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) 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 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
23 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
24 | equipment, including
replacement parts and equipment, and | ||||||
25 | including
equipment
purchased for lease, but excluding motor | ||||||
26 | vehicles required to be registered
under the Illinois Vehicle |
| |||||||
| |||||||
1 | Code.
| ||||||
2 | (13) Beginning January 1, 1992 and through June 30, 2011, | ||||||
3 | food for human consumption that is to be consumed off the | ||||||
4 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
5 | drinks and food that
has been prepared for immediate | ||||||
6 | consumption) and prescription and
non-prescription 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 5 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.
| ||||||
13 | (14) Semen used for artificial insemination of livestock | ||||||
14 | for direct
agricultural production.
| ||||||
15 | (15) Horses, or interests in horses, registered with and | ||||||
16 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
17 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
18 | Horse Association, United States
Trotting Association, or | ||||||
19 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
20 | racing for prizes.
| ||||||
21 | (16) Computers and communications equipment utilized for | ||||||
22 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
23 | analysis, or treatment of hospital patients sold to a lessor | ||||||
24 | who leases the
equipment, under a lease of one year or longer | ||||||
25 | executed or in effect at the
time of the purchase, to a
| ||||||
26 | hospital
that has been issued an active tax exemption |
| |||||||
| |||||||
1 | identification number by the
Department under Section 1g of the | ||||||
2 | Retailers' Occupation Tax Act.
| ||||||
3 | (17) Personal property sold to a lessor who leases the
| ||||||
4 | property, under a
lease of one year or longer executed or in | ||||||
5 | effect at the time of the purchase,
to a governmental body
that | ||||||
6 | has been issued an active tax exemption identification number | ||||||
7 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
8 | Tax Act.
| ||||||
9 | (18) Beginning with taxable years ending on or after | ||||||
10 | December
31, 1995
and
ending with taxable years ending on or | ||||||
11 | before December 31, 2004,
personal property that is
donated for | ||||||
12 | disaster relief to be used in a State or federally declared
| ||||||
13 | disaster area in Illinois or bordering Illinois by a | ||||||
14 | manufacturer or retailer
that is registered in this State to a | ||||||
15 | corporation, society, association,
foundation, or institution | ||||||
16 | that has been issued a sales tax exemption
identification | ||||||
17 | number by the Department that assists victims of the disaster
| ||||||
18 | who reside within the declared disaster area.
| ||||||
19 | (19) 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 used in the | ||||||
22 | performance of infrastructure repairs in this
State, including | ||||||
23 | but not limited to municipal roads and streets, access roads,
| ||||||
24 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
25 | line extensions,
water distribution and purification | ||||||
26 | facilities, storm water drainage and
retention facilities, and |
| |||||||
| |||||||
1 | sewage treatment facilities, resulting from a State
or | ||||||
2 | federally declared disaster in Illinois or bordering Illinois | ||||||
3 | when such
repairs are initiated on facilities located in the | ||||||
4 | declared disaster area
within 6 months after the disaster.
| ||||||
5 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
6 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
7 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
8 | at a hunting enclosure approved through rules adopted by the
| ||||||
9 | Department of Natural Resources. This paragraph is exempt from | ||||||
10 | the provisions
of
Section 3-55.
| ||||||
11 | (21) A motor vehicle, as that term is defined in Section | ||||||
12 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
13 | corporation, limited liability
company, society, association, | ||||||
14 | foundation, or institution that is determined by
the Department | ||||||
15 | to be organized and operated exclusively for educational
| ||||||
16 | purposes. For purposes of this exemption, "a corporation, | ||||||
17 | limited liability
company, society, association, foundation, | ||||||
18 | or institution organized and
operated
exclusively for | ||||||
19 | educational purposes" means all tax-supported public schools,
| ||||||
20 | private schools that offer systematic instruction in useful | ||||||
21 | branches of
learning by methods common to public schools and | ||||||
22 | that compare favorably in
their scope and intensity with the | ||||||
23 | course of study presented in tax-supported
schools, and | ||||||
24 | vocational or technical schools or institutes organized and
| ||||||
25 | operated exclusively to provide a course of study of not less | ||||||
26 | than 6 weeks
duration and designed to prepare individuals to |
| |||||||
| |||||||
1 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
2 | industrial, business, or commercial
occupation.
| ||||||
3 | (22) Beginning January 1, 2000, personal property, | ||||||
4 | including
food,
purchased through fundraising
events for the | ||||||
5 | benefit of
a public or private elementary or
secondary school, | ||||||
6 | a group of those schools, or one or more school
districts if | ||||||
7 | the events are
sponsored by an entity recognized by the school | ||||||
8 | district that consists
primarily of volunteers and includes
| ||||||
9 | parents and teachers of the school children. This paragraph | ||||||
10 | does not apply
to fundraising
events (i) for the benefit of | ||||||
11 | private home instruction or (ii)
for which the fundraising | ||||||
12 | entity purchases the personal property sold at
the events from | ||||||
13 | another individual or entity that sold the property for the
| ||||||
14 | purpose of resale by the fundraising entity and that
profits | ||||||
15 | from the sale to the
fundraising entity. This paragraph is | ||||||
16 | exempt
from the provisions
of Section 3-55.
| ||||||
17 | (23) Beginning January 1, 2000
and through December 31, | ||||||
18 | 2001, new or used automatic vending
machines that prepare and | ||||||
19 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
20 | items, and replacement parts for these machines.
Beginning | ||||||
21 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
22 | for
machines used in commercial, coin-operated amusement
and | ||||||
23 | vending business if a use or occupation tax is paid on the | ||||||
24 | gross receipts
derived from
the use of the commercial, | ||||||
25 | coin-operated amusement and vending machines.
This paragraph | ||||||
26 | is exempt from the provisions of Section 3-55.
|
| |||||||
| |||||||
1 | (24) Beginning
on the effective date of this amendatory Act | ||||||
2 | of the 92nd General Assembly,
computers and communications | ||||||
3 | equipment
utilized for any hospital purpose and equipment used | ||||||
4 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
5 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
6 | year or longer executed or in effect at the
time of the | ||||||
7 | purchase, to a hospital that has been issued an active tax
| ||||||
8 | exemption identification number by the Department under | ||||||
9 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
10 | is exempt from the provisions of
Section 3-55.
| ||||||
11 | (25) Beginning
on the effective date of this amendatory Act | ||||||
12 | of the 92nd General Assembly,
personal property sold to a | ||||||
13 | lessor who
leases the property, under a lease of one year or | ||||||
14 | longer executed or in effect
at the time of the purchase, to a | ||||||
15 | governmental body that has been issued an
active tax exemption | ||||||
16 | identification number by the Department under Section 1g
of the | ||||||
17 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
18 | the
provisions of Section 3-55.
| ||||||
19 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
20 | 2011, tangible personal property
purchased
from an Illinois | ||||||
21 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
22 | activities in Illinois who will, upon receipt of the property | ||||||
23 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
24 | the purpose of subsequently
transporting it outside this State | ||||||
25 | for use or consumption thereafter solely
outside this State or | ||||||
26 | (ii) for the purpose of being processed, fabricated, or
|
| |||||||
| |||||||
1 | manufactured into, attached to, or incorporated into other | ||||||
2 | tangible personal
property to be transported outside this State | ||||||
3 | and thereafter used or consumed
solely outside this State. The | ||||||
4 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
5 | accordance with the Illinois Administrative Procedure Act, | ||||||
6 | issue a
permit to any taxpayer in good standing with the | ||||||
7 | Department who is eligible for
the exemption under this | ||||||
8 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
9 | shall authorize the holder, to the extent and
in the manner | ||||||
10 | specified in the rules adopted under this Act, to purchase
| ||||||
11 | tangible personal property from a retailer exempt from the | ||||||
12 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
13 | necessary books and records to
substantiate the use and | ||||||
14 | consumption of all such tangible personal property
outside of | ||||||
15 | the State of Illinois.
| ||||||
16 | (27) Beginning January 1, 2008, tangible personal property | ||||||
17 | used in the construction, maintenance, or operation of a | ||||||
18 | community water supply, as defined under Section 3.145 of the | ||||||
19 | Environmental Protection Act, that is operated by a | ||||||
20 | not-for-profit corporation that holds a valid water supply | ||||||
21 | permit issued under Title IV of the Environmental Protection | ||||||
22 | Act. This paragraph is exempt from the provisions of Section | ||||||
23 | 3-55.
| ||||||
24 | (Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04; | ||||||
25 | 94-1002, eff. 7-3-06.)
|
| |||||||
| |||||||
1 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
2 | changing Section 2-5 as follows:
| ||||||
3 | (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| ||||||
4 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
5 | sale of
the following tangible personal property are exempt | ||||||
6 | from the tax imposed
by this Act:
| ||||||
7 | (1) Farm chemicals.
| ||||||
8 | (2) Farm machinery and equipment, both new and used, | ||||||
9 | including that
manufactured on special order, certified by the | ||||||
10 | purchaser to be used
primarily for production agriculture or | ||||||
11 | State or federal agricultural
programs, including individual | ||||||
12 | replacement parts for the machinery and
equipment, including | ||||||
13 | machinery and equipment purchased for lease,
and including | ||||||
14 | implements of husbandry defined in Section 1-130 of
the | ||||||
15 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
16 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
17 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
18 | but
excluding other motor vehicles required to be registered | ||||||
19 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
20 | hoop houses used for propagating, growing, or
overwintering | ||||||
21 | plants shall be considered farm machinery and equipment under
| ||||||
22 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
23 | shall include units sold
separately from a motor vehicle | ||||||
24 | required to be licensed and units sold mounted
on a motor | ||||||
25 | vehicle required to be licensed, if the selling price of the |
| |||||||
| |||||||
1 | tender
is separately stated.
| ||||||
2 | Farm machinery and equipment shall include precision | ||||||
3 | farming equipment
that is
installed or purchased to be | ||||||
4 | installed on farm machinery and equipment
including, but not | ||||||
5 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
6 | or spreaders.
Precision farming equipment includes, but is not | ||||||
7 | limited to,
soil testing sensors, computers, monitors, | ||||||
8 | software, global positioning
and mapping systems, and other | ||||||
9 | such equipment.
| ||||||
10 | Farm machinery and equipment also includes computers, | ||||||
11 | sensors, software, and
related equipment used primarily in the
| ||||||
12 | computer-assisted operation of production agriculture | ||||||
13 | facilities, equipment,
and activities such as, but
not limited | ||||||
14 | to,
the collection, monitoring, and correlation of
animal and | ||||||
15 | crop data for the purpose of
formulating animal diets and | ||||||
16 | agricultural chemicals. This item (7) is exempt
from the | ||||||
17 | provisions of
Section 2-70.
| ||||||
18 | (3) Until July 1, 2003, distillation machinery and | ||||||
19 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
20 | retailer, certified by the user to be used
only for the | ||||||
21 | production of ethyl alcohol that will be used for consumption
| ||||||
22 | as motor fuel or as a component of motor fuel for the personal | ||||||
23 | use of the
user, and not subject to sale or resale.
| ||||||
24 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
25 | 2004, graphic arts machinery and equipment, including
repair | ||||||
26 | and
replacement parts, both new and used, and including that |
| |||||||
| |||||||
1 | manufactured on
special order or purchased for lease, certified | ||||||
2 | by the purchaser to be used
primarily for graphic arts | ||||||
3 | production.
Equipment includes chemicals or
chemicals acting | ||||||
4 | as catalysts but only if
the chemicals or chemicals acting as | ||||||
5 | catalysts effect a direct and immediate
change upon a
graphic | ||||||
6 | arts product.
| ||||||
7 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
8 | of the second
division that is a self-contained motor vehicle | ||||||
9 | designed or permanently
converted to provide living quarters | ||||||
10 | for recreational, camping, or travel
use, with direct walk | ||||||
11 | through access to the living quarters from the
driver's seat, | ||||||
12 | or a motor vehicle of the second division that is of the van
| ||||||
13 | configuration designed for the transportation of not less than | ||||||
14 | 7 nor more
than 16 passengers, as defined in Section 1-146 of | ||||||
15 | the Illinois Vehicle
Code, that is used for automobile renting, | ||||||
16 | as defined in the Automobile
Renting Occupation and Use Tax | ||||||
17 | Act.
| ||||||
18 | (6) Personal property sold by a teacher-sponsored student | ||||||
19 | organization
affiliated with an elementary or secondary school | ||||||
20 | located in Illinois.
| ||||||
21 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
22 | selling price of
a passenger car the
sale of which is subject | ||||||
23 | to the Replacement Vehicle Tax.
| ||||||
24 | (8) Personal property sold to an Illinois county fair | ||||||
25 | association for
use in conducting, operating, or promoting the | ||||||
26 | county fair.
|
| |||||||
| |||||||
1 | (9) Personal property sold to a not-for-profit arts
or | ||||||
2 | cultural organization that establishes, by proof required by | ||||||
3 | the Department
by
rule, that it has received an exemption under | ||||||
4 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
5 | organized and operated primarily for the
presentation
or | ||||||
6 | support of arts or cultural programming, activities, or | ||||||
7 | services. These
organizations include, but are not limited to, | ||||||
8 | music and dramatic arts
organizations such as symphony | ||||||
9 | orchestras and theatrical groups, arts and
cultural service | ||||||
10 | organizations, local arts councils, visual arts organizations,
| ||||||
11 | and media arts organizations.
On and after the effective date | ||||||
12 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
13 | an entity otherwise eligible for this exemption shall not
make | ||||||
14 | tax-free purchases unless it has an active identification | ||||||
15 | number issued by
the Department.
| ||||||
16 | (10) Personal property sold by a corporation, society, | ||||||
17 | association,
foundation, institution, or organization, other | ||||||
18 | than a limited liability
company, that is organized and | ||||||
19 | operated as a not-for-profit service enterprise
for the benefit | ||||||
20 | of persons 65 years of age or older if the personal property
| ||||||
21 | was not purchased by the enterprise for the purpose of resale | ||||||
22 | by the
enterprise.
| ||||||
23 | (11) Personal property sold to a governmental body, to a | ||||||
24 | corporation,
society, association, foundation, or institution | ||||||
25 | organized and operated
exclusively for charitable, religious, | ||||||
26 | or educational purposes, or to a
not-for-profit corporation, |
| |||||||
| |||||||
1 | society, association, foundation, institution,
or organization | ||||||
2 | that has no compensated officers or employees and that is
| ||||||
3 | organized and operated primarily for the recreation of persons | ||||||
4 | 55 years of
age or older. A limited liability company may | ||||||
5 | qualify for the exemption under
this paragraph only if the | ||||||
6 | limited liability company is organized and operated
| ||||||
7 | exclusively for educational purposes. On and after July 1, | ||||||
8 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
9 | shall make tax-free purchases
unless it has an active | ||||||
10 | identification number issued by the Department.
| ||||||
11 | (12) Tangible personal property sold to
interstate | ||||||
12 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
13 | commerce or to lessors under leases of
one year or longer | ||||||
14 | executed or in effect at the time of purchase by
interstate | ||||||
15 | carriers for hire for use as rolling stock moving in interstate
| ||||||
16 | commerce and equipment operated by a telecommunications | ||||||
17 | provider, licensed as a
common carrier by the Federal | ||||||
18 | Communications Commission, which is permanently
installed in | ||||||
19 | or affixed to aircraft moving in interstate commerce.
| ||||||
20 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
21 | motor vehicles of the second division
with a gross vehicle | ||||||
22 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
23 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
24 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
25 | through June 30, 2005, the use in this State of motor vehicles | ||||||
26 | of the second division: (i) with a gross vehicle weight rating |
| |||||||
| |||||||
1 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
2 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
3 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
4 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
5 | applies to repair and replacement parts added
after the
initial | ||||||
6 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
7 | in a
manner that
would qualify for the rolling stock exemption | ||||||
8 | otherwise provided for in this
Act. For purposes of this | ||||||
9 | paragraph, "used for commercial purposes" means the | ||||||
10 | transportation of persons or property in furtherance of any | ||||||
11 | commercial or industrial enterprise whether for-hire or not.
| ||||||
12 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
13 | tangible personal property that is utilized by interstate | ||||||
14 | carriers for
hire for use as rolling stock moving in interstate | ||||||
15 | commerce
and equipment operated by a telecommunications | ||||||
16 | provider, licensed as a
common carrier by the Federal | ||||||
17 | Communications Commission, which is
permanently installed in | ||||||
18 | or affixed to aircraft moving in interstate commerce.
| ||||||
19 | (14) Machinery and equipment that will be used by the | ||||||
20 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
21 | process of manufacturing or
assembling tangible personal | ||||||
22 | property for wholesale or retail sale or
lease, whether the | ||||||
23 | sale or lease is made directly by the manufacturer or by
some | ||||||
24 | other person, whether the materials used in the process are | ||||||
25 | owned by
the manufacturer or some other person, or whether the | ||||||
26 | sale or lease is made
apart from or as an incident to the |
| |||||||
| |||||||
1 | seller's engaging in the service
occupation of producing | ||||||
2 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
3 | items of no commercial value on special order for a particular
| ||||||
4 | purchaser.
| ||||||
5 | (15) Proceeds of mandatory service charges separately | ||||||
6 | stated on
customers' bills for purchase and consumption of food | ||||||
7 | and beverages, to the
extent that the proceeds of the service | ||||||
8 | charge are in fact turned over as
tips or as a substitute for | ||||||
9 | tips to the employees who participate directly
in preparing, | ||||||
10 | serving, hosting or cleaning up the food or beverage function
| ||||||
11 | with respect to which the service charge is imposed.
| ||||||
12 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
13 | is prohibited by federal law from charging tax to the | ||||||
14 | purchaser.
| ||||||
15 | (17) Tangible personal property sold to a common carrier by | ||||||
16 | rail or
motor that
receives the physical possession of the | ||||||
17 | property in Illinois and that
transports the property, or | ||||||
18 | shares with another common carrier in the
transportation of the | ||||||
19 | property, out of Illinois on a standard uniform bill
of lading | ||||||
20 | showing the seller of the property as the shipper or consignor | ||||||
21 | of
the property to a destination outside Illinois, for use | ||||||
22 | outside Illinois.
| ||||||
23 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
24 | coinage
issued by the State of Illinois, the government of the | ||||||
25 | United States of
America, or the government of any foreign | ||||||
26 | country, and bullion.
|
| |||||||
| |||||||
1 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
2 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
3 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
4 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
5 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
6 | individual replacement part for oil field exploration,
| ||||||
7 | drilling, and production equipment, and (vi) machinery and | ||||||
8 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
9 | required to be registered under the Illinois
Vehicle Code.
| ||||||
10 | (20) Photoprocessing machinery and equipment, including | ||||||
11 | repair and
replacement parts, both new and used, including that | ||||||
12 | manufactured on
special order, certified by the purchaser to be | ||||||
13 | used primarily for
photoprocessing, and including | ||||||
14 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
15 | (21) Until July 1, 2003, coal exploration, mining, | ||||||
16 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
17 | equipment, including
replacement parts and equipment, and | ||||||
18 | including
equipment purchased for lease, but excluding motor | ||||||
19 | vehicles required to be
registered under the Illinois Vehicle | ||||||
20 | Code.
| ||||||
21 | (22) Fuel and petroleum products sold to or used by an air | ||||||
22 | carrier,
certified by the carrier to be used for consumption, | ||||||
23 | shipment, or storage
in the conduct of its business as an air | ||||||
24 | common carrier, for a flight
destined for or returning from a | ||||||
25 | location or locations
outside the United States without regard | ||||||
26 | to previous or subsequent domestic
stopovers.
|
| |||||||
| |||||||
1 | (23) A transaction in which the purchase order is received | ||||||
2 | by a florist
who is located outside Illinois, but who has a | ||||||
3 | florist located in Illinois
deliver the property to the | ||||||
4 | purchaser or the purchaser's donee in Illinois.
| ||||||
5 | (24) Fuel consumed or used in the operation of ships, | ||||||
6 | barges, or vessels
that are used primarily in or for the | ||||||
7 | transportation of property or the
conveyance of persons for | ||||||
8 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
9 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
10 | it is afloat upon that bordering river.
| ||||||
11 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
12 | motor vehicle sold in this State to a nonresident even though | ||||||
13 | the
motor vehicle is delivered to the nonresident in this | ||||||
14 | State, if the motor
vehicle is not to be titled in this State, | ||||||
15 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
16 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
17 | the nonresident purchaser has vehicle registration
plates to | ||||||
18 | transfer to the motor vehicle upon returning to his or her home
| ||||||
19 | state. The issuance of the drive-away permit or having
the
| ||||||
20 | out-of-state registration plates to be transferred is prima | ||||||
21 | facie evidence
that the motor vehicle will not be titled in | ||||||
22 | this State.
| ||||||
23 | (25-5) The exemption under item (25) does not apply if the | ||||||
24 | state in which the motor vehicle will be titled does not allow | ||||||
25 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
26 | in that state to an Illinois resident but titled in Illinois. |
| |||||||
| |||||||
1 | The tax collected under this Act on the sale of a motor vehicle | ||||||
2 | in this State to a resident of another state that does not | ||||||
3 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
4 | to the state's rate of tax on taxable property in the state in | ||||||
5 | which the purchaser is a resident, except that the tax shall | ||||||
6 | not exceed the tax that would otherwise be imposed under this | ||||||
7 | Act. At the time of the sale, the purchaser shall execute a | ||||||
8 | statement, signed under penalty of perjury, of his or her | ||||||
9 | intent to title the vehicle in the state in which the purchaser | ||||||
10 | is a resident within 30 days after the sale and of the fact of | ||||||
11 | the payment to the State of Illinois of tax in an amount | ||||||
12 | equivalent to the state's rate of tax on taxable property in | ||||||
13 | his or her state of residence and shall submit the statement to | ||||||
14 | the appropriate tax collection agency in his or her state of | ||||||
15 | residence. In addition, the retailer must retain a signed copy | ||||||
16 | of the statement in his or her records. Nothing in this item | ||||||
17 | shall be construed to require the removal of the vehicle from | ||||||
18 | this state following the filing of an intent to title the | ||||||
19 | vehicle in the purchaser's state of residence if the purchaser | ||||||
20 | titles the vehicle in his or her state of residence within 30 | ||||||
21 | days after the date of sale. The tax collected under this Act | ||||||
22 | in accordance with this item (25-5) shall be proportionately | ||||||
23 | distributed as if the tax were collected at the 6.25% general | ||||||
24 | rate imposed under this Act.
| ||||||
25 | (26) Semen used for artificial insemination of livestock | ||||||
26 | for direct
agricultural production.
|
| |||||||
| |||||||
1 | (27) Horses, or interests in horses, registered with and | ||||||
2 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
3 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
4 | Horse Association, United States
Trotting Association, or | ||||||
5 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
6 | racing for prizes.
| ||||||
7 | (28) Computers and communications equipment utilized for | ||||||
8 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
9 | analysis, or treatment of hospital patients sold to a lessor | ||||||
10 | who leases the
equipment, under a lease of one year or longer | ||||||
11 | executed or in effect at the
time of the purchase, to a
| ||||||
12 | hospital
that has been issued an active tax exemption | ||||||
13 | identification number by the
Department under Section 1g of | ||||||
14 | 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 in | ||||||
17 | effect at the time of the purchase,
to a governmental body
that | ||||||
18 | has been issued an active tax exemption identification number | ||||||
19 | by the
Department under Section 1g of this Act.
| ||||||
20 | (30) Beginning with taxable years ending on or after | ||||||
21 | December
31, 1995
and
ending with taxable years ending on or | ||||||
22 | before December 31, 2004,
personal property that is
donated for | ||||||
23 | disaster relief to be used in a State or federally declared
| ||||||
24 | disaster area in Illinois or bordering Illinois by a | ||||||
25 | manufacturer or retailer
that is registered in this State to a | ||||||
26 | corporation, society, association,
foundation, or institution |
| |||||||
| |||||||
1 | that has been issued a sales tax exemption
identification | ||||||
2 | number by the Department that assists victims of the disaster
| ||||||
3 | who reside within the declared disaster area.
| ||||||
4 | (31) Beginning with taxable years ending on or after | ||||||
5 | December
31, 1995 and
ending with taxable years ending on or | ||||||
6 | before December 31, 2004, personal
property that is used in the | ||||||
7 | performance of infrastructure repairs in this
State, including | ||||||
8 | but not limited to municipal roads and streets, access roads,
| ||||||
9 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
10 | line extensions,
water distribution and purification | ||||||
11 | facilities, storm water drainage and
retention facilities, and | ||||||
12 | sewage treatment facilities, resulting from a State
or | ||||||
13 | federally declared disaster in Illinois or bordering Illinois | ||||||
14 | when such
repairs are initiated on facilities located in the | ||||||
15 | declared disaster area
within 6 months after the disaster.
| ||||||
16 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
17 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
18 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
19 | at a hunting enclosure approved through rules adopted by the
| ||||||
20 | Department of Natural Resources. This paragraph is exempt from | ||||||
21 | the provisions
of
Section 2-70.
| ||||||
22 | (33) A motor vehicle, as that term is defined in Section | ||||||
23 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
24 | corporation, limited liability
company, society, association, | ||||||
25 | foundation, or institution that is determined by
the Department | ||||||
26 | to be organized and operated exclusively for educational
|
| |||||||
| |||||||
1 | purposes. For purposes of this exemption, "a corporation, | ||||||
2 | limited liability
company, society, association, foundation, | ||||||
3 | or institution organized and
operated
exclusively for | ||||||
4 | educational purposes" means all tax-supported public schools,
| ||||||
5 | private schools that offer systematic instruction in useful | ||||||
6 | branches of
learning by methods common to public schools and | ||||||
7 | that compare favorably in
their scope and intensity with the | ||||||
8 | course of study presented in tax-supported
schools, and | ||||||
9 | vocational or technical schools or institutes organized and
| ||||||
10 | operated exclusively to provide a course of study of not less | ||||||
11 | than 6 weeks
duration and designed to prepare individuals to | ||||||
12 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
13 | industrial, business, or commercial
occupation.
| ||||||
14 | (34) Beginning January 1, 2000, personal property, | ||||||
15 | including food, purchased
through fundraising events for the | ||||||
16 | benefit of a public or private elementary or
secondary school, | ||||||
17 | a group of those schools, or one or more school districts if
| ||||||
18 | the events are sponsored by an entity recognized by the school | ||||||
19 | district that
consists primarily of volunteers and includes | ||||||
20 | parents and teachers of the
school children. This paragraph | ||||||
21 | does not apply to fundraising events (i) for
the benefit of | ||||||
22 | private home instruction or (ii) for which the fundraising
| ||||||
23 | entity purchases the personal property sold at the events from | ||||||
24 | another
individual or entity that sold the property for the | ||||||
25 | purpose of resale by the
fundraising entity and that profits | ||||||
26 | from the sale to the fundraising entity.
This paragraph is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 2-70.
| ||||||
2 | (35) Beginning January 1, 2000 and through December 31, | ||||||
3 | 2001, new or used
automatic vending machines that prepare and | ||||||
4 | serve hot food and beverages,
including coffee, soup, and other | ||||||
5 | items, and replacement parts for these
machines. Beginning | ||||||
6 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
7 | for machines used in
commercial, coin-operated amusement and | ||||||
8 | vending business if a use or occupation
tax is paid on the | ||||||
9 | gross receipts derived from the use of the commercial,
| ||||||
10 | coin-operated amusement and vending machines. This paragraph | ||||||
11 | is exempt from
the provisions of Section 2-70.
| ||||||
12 | (35-5) Beginning August 23, 2001 and through June 30, 2011, | ||||||
13 | food for human consumption that is to be consumed off
the | ||||||
14 | premises where it is sold (other than alcoholic beverages, soft | ||||||
15 | drinks,
and food that has been prepared for immediate | ||||||
16 | consumption) and prescription
and nonprescription medicines, | ||||||
17 | drugs, medical appliances, and insulin, urine
testing | ||||||
18 | materials, syringes, and needles used by diabetics, for human | ||||||
19 | use, when
purchased for use by a person receiving medical | ||||||
20 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
21 | resides in a licensed long-term care facility,
as defined in | ||||||
22 | the Nursing Home Care Act.
| ||||||
23 | (36) Beginning August 2, 2001, computers and | ||||||
24 | communications equipment
utilized for any hospital purpose and | ||||||
25 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
26 | hospital patients sold to a lessor who leases the
equipment, |
| |||||||
| |||||||
1 | under a lease of one year or longer executed or in effect at | ||||||
2 | the
time of the purchase, to a hospital that has been issued an | ||||||
3 | active tax
exemption identification number by the Department | ||||||
4 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
5 | provisions of Section 2-70.
| ||||||
6 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
7 | lessor who
leases the property, under a lease of one year or | ||||||
8 | longer executed or in effect
at the time of the purchase, to a | ||||||
9 | governmental body that has been issued an
active tax exemption | ||||||
10 | identification number by the Department under Section 1g
of | ||||||
11 | this Act. This paragraph is exempt from the provisions of | ||||||
12 | Section 2-70.
| ||||||
13 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
14 | 2011, tangible personal property purchased
from an Illinois | ||||||
15 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
16 | activities in Illinois who will, upon receipt of the property | ||||||
17 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
18 | the purpose of subsequently
transporting it outside this State | ||||||
19 | for use or consumption thereafter solely
outside this State or | ||||||
20 | (ii) for the purpose of being processed, fabricated, or
| ||||||
21 | manufactured into, attached to, or incorporated into other | ||||||
22 | tangible personal
property to be transported outside this State | ||||||
23 | and thereafter used or consumed
solely outside this State. The | ||||||
24 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
25 | accordance with the Illinois Administrative Procedure Act, | ||||||
26 | issue a
permit to any taxpayer in good standing with the |
| |||||||
| |||||||
1 | Department who is eligible for
the exemption under this | ||||||
2 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
3 | shall authorize the holder, to the extent and
in the manner | ||||||
4 | specified in the rules adopted under this Act, to purchase
| ||||||
5 | tangible personal property from a retailer exempt from the | ||||||
6 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
7 | necessary books and records to
substantiate the use and | ||||||
8 | consumption of all such tangible personal property
outside of | ||||||
9 | the State of Illinois.
| ||||||
10 | (39) Beginning January 1, 2008, tangible personal property | ||||||
11 | used in the construction, maintenance, or operation of a | ||||||
12 | community water supply, as defined under Section 3.145 of the | ||||||
13 | Environmental Protection Act, that is operated by a | ||||||
14 | not-for-profit corporation that holds a valid water supply | ||||||
15 | permit issued under Title IV of the Environmental Protection | ||||||
16 | Act. This paragraph is exempt from the provisions of Section | ||||||
17 | 2-70.
| ||||||
18 | (Source: P.A. 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, | ||||||
19 | eff. 7-30-04; 93-1033, eff. 9-3-04; 93-1068, eff. 1-15-05; | ||||||
20 | 94-1002, eff. 7-3-06.)
|