Rep. Bill Mitchell

Filed: 3/8/2011

 

 


 

 


 
09700HB2477ham001LRB097 07323 PJG 51693 a

1
AMENDMENT TO HOUSE BILL 2477

2    AMENDMENT NO. ______. Amend House Bill 2477 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit

 

 

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1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts or
4cultural organization that establishes, by proof required by
5the Department by rule, that it has received an exemption under
6Section 501(c)(3) of the Internal Revenue Code and that is
7organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after the effective date
14of this amendatory Act of the 92nd General Assembly, however,
15an entity otherwise eligible for this exemption shall not make
16tax-free purchases unless it has an active identification
17number issued by the Department.
18    (4) Personal property purchased by a governmental body, by
19a corporation, society, association, foundation, or
20institution organized and operated exclusively for charitable,
21religious, or educational purposes, or by a not-for-profit
22corporation, society, association, foundation, institution, or
23organization that has no compensated officers or employees and
24that is organized and operated primarily for the recreation of
25persons 55 years of age or older. A limited liability company
26may qualify for the exemption under this paragraph only if the

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active exemption
5identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon a
18graphic arts product.
19    (7) Farm chemicals.
20    (8) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (9) Personal property purchased from a teacher-sponsored
25student organization affiliated with an elementary or
26secondary school located in Illinois.

 

 

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1    (10) A motor vehicle of the first division, a motor vehicle
2of the second division that is a self-contained motor vehicle
3designed or permanently converted to provide living quarters
4for recreational, camping, or travel use, with direct walk
5through to the living quarters from the driver's seat, or a
6motor vehicle of the second division that is of the van
7configuration designed for the transportation of not less than
87 nor more than 16 passengers, as defined in Section 1-146 of
9the Illinois Vehicle Code, that is used for automobile renting,
10as defined in the Automobile Renting Occupation and Use Tax
11Act.
12    (11) Farm machinery and equipment, both new and used,
13including that manufactured on special order, certified by the
14purchaser to be used primarily for production agriculture or
15State or federal agricultural programs, including individual
16replacement parts for the machinery and equipment, including
17machinery and equipment purchased for lease, and including
18implements of husbandry defined in Section 1-130 of the
19Illinois Vehicle Code, farm machinery and agricultural
20chemical and fertilizer spreaders, and nurse wagons required to
21be registered under Section 3-809 of the Illinois Vehicle Code,
22but excluding other motor vehicles required to be registered
23under the Illinois Vehicle Code. Horticultural polyhouses or
24hoop houses used for propagating, growing, or overwintering
25plants shall be considered farm machinery and equipment under
26this item (11). Agricultural chemical tender tanks and dry

 

 

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1boxes shall include units sold separately from a motor vehicle
2required to be licensed and units sold mounted on a motor
3vehicle required to be licensed if the selling price of the
4tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals. This item (11) is exempt from the
20provisions of Section 3-90.
21    (12) Fuel and petroleum products sold to or used by an air
22common carrier, certified by the carrier to be used for
23consumption, shipment, or storage in the conduct of its
24business as an air common carrier, for a flight destined for or
25returning from a location or locations outside the United
26States without regard to previous or subsequent domestic

 

 

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1stopovers.
2    (13) Proceeds of mandatory service charges separately
3stated on customers' bills for the purchase and consumption of
4food and beverages purchased at retail from a retailer, to the
5extent that the proceeds of the service charge are in fact
6turned over as tips or as a substitute for tips to the
7employees who participate directly in preparing, serving,
8hosting or cleaning up the food or beverage function with
9respect to which the service charge is imposed.
10    (14) Until July 1, 2003, oil field exploration, drilling,
11and production equipment, including (i) rigs and parts of rigs,
12rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
13tubular goods, including casing and drill strings, (iii) pumps
14and pump-jack units, (iv) storage tanks and flow lines, (v) any
15individual replacement part for oil field exploration,
16drilling, and production equipment, and (vi) machinery and
17equipment purchased for lease; but excluding motor vehicles
18required to be registered under the Illinois Vehicle Code.
19    (15) Photoprocessing machinery and equipment, including
20repair and replacement parts, both new and used, including that
21manufactured on special order, certified by the purchaser to be
22used primarily for photoprocessing, and including
23photoprocessing machinery and equipment purchased for lease.
24    (16) Until July 1, 2003, coal exploration, mining,
25offhighway hauling, processing, maintenance, and reclamation
26equipment, including replacement parts and equipment, and

 

 

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1including equipment purchased for lease, but excluding motor
2vehicles required to be registered under the Illinois Vehicle
3Code.
4    (17) Until July 1, 2003, distillation machinery and
5equipment, sold as a unit or kit, assembled or installed by the
6retailer, certified by the user to be used only for the
7production of ethyl alcohol that will be used for consumption
8as motor fuel or as a component of motor fuel for the personal
9use of the user, and not subject to sale or resale.
10    (18) Manufacturing and assembling machinery and equipment
11used primarily in the process of manufacturing or assembling
12tangible personal property for wholesale or retail sale or
13lease, whether that sale or lease is made directly by the
14manufacturer or by some other person, whether the materials
15used in the process are owned by the manufacturer or some other
16person, or whether that sale or lease is made apart from or as
17an incident to the seller's engaging in the service occupation
18of producing machines, tools, dies, jigs, patterns, gauges, or
19other similar items of no commercial value on special order for
20a particular purchaser.
21    (19) Personal property delivered to a purchaser or
22purchaser's donee inside Illinois when the purchase order for
23that personal property was received by a florist located
24outside Illinois who has a florist located inside Illinois
25deliver the personal property.
26    (20) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (21) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (21) is exempt from the provisions
8of Section 3-90, and the exemption provided for under this item
9(21) applies for all periods beginning May 30, 1995, but no
10claim for credit or refund is allowed on or after January 1,
112008 for such taxes paid during the period beginning May 30,
122000 and ending on January 1, 2008.
13    (22) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of the
21Retailers' Occupation Tax Act. If the equipment is leased in a
22manner that does not qualify for this exemption or is used in
23any other non-exempt manner, the lessor shall be liable for the
24tax imposed under this Act or the Service Use Tax Act, as the
25case may be, based on the fair market value of the property at
26the time the non-qualifying use occurs. No lessor shall collect

 

 

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1or attempt to collect an amount (however designated) that
2purports to reimburse that lessor for the tax imposed by this
3Act or the Service Use Tax Act, as the case may be, if the tax
4has not been paid by the lessor. If a lessor improperly
5collects any such amount from the lessee, the lessee shall have
6a legal right to claim a refund of that amount from the lessor.
7If, however, that amount is not refunded to the lessee for any
8reason, the lessor is liable to pay that amount to the
9Department.
10    (23) Personal property purchased by a lessor who leases the
11property, under a lease of one year or longer executed or in
12effect at the time the lessor would otherwise be subject to the
13tax imposed by this Act, to a governmental body that has been
14issued an active sales tax exemption identification number by
15the Department under Section 1g of the Retailers' Occupation
16Tax Act. If the property is leased in a manner that does not
17qualify for this exemption or used in any other non-exempt
18manner, the lessor shall be liable for the tax imposed under
19this Act or the Service Use Tax Act, as the case may be, based
20on the fair market value of the property at the time the
21non-qualifying use occurs. No lessor shall collect or attempt
22to collect an amount (however designated) that purports to
23reimburse that lessor for the tax imposed by this Act or the
24Service Use Tax Act, as the case may be, if the tax has not been
25paid by the lessor. If a lessor improperly collects any such
26amount from the lessee, the lessee shall have a legal right to

 

 

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1claim a refund of that amount from the lessor. If, however,
2that amount is not refunded to the lessee for any reason, the
3lessor is liable to pay that amount to the Department.
4    (24) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is donated for
7disaster relief to be used in a State or federally declared
8disaster area in Illinois or bordering Illinois by a
9manufacturer or retailer that is registered in this State to a
10corporation, society, association, foundation, or institution
11that has been issued a sales tax exemption identification
12number by the Department that assists victims of the disaster
13who reside within the declared disaster area.
14    (25) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is used in the
17performance of infrastructure repairs in this State, including
18but not limited to municipal roads and streets, access roads,
19bridges, sidewalks, waste disposal systems, water and sewer
20line extensions, water distribution and purification
21facilities, storm water drainage and retention facilities, and
22sewage treatment facilities, resulting from a State or
23federally declared disaster in Illinois or bordering Illinois
24when such repairs are initiated on facilities located in the
25declared disaster area within 6 months after the disaster.
26    (26) Beginning July 1, 1999, game or game birds purchased

 

 

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1at a "game breeding and hunting preserve area" or an "exotic
2game hunting area" as those terms are used in the Wildlife Code
3or at a hunting enclosure approved through rules adopted by the
4Department of Natural Resources. This paragraph is exempt from
5the provisions of Section 3-90.
6    (27) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the Department
10to be organized and operated exclusively for educational
11purposes. For purposes of this exemption, "a corporation,
12limited liability company, society, association, foundation,
13or institution organized and operated exclusively for
14educational purposes" means all tax-supported public schools,
15private schools that offer systematic instruction in useful
16branches of learning by methods common to public schools and
17that compare favorably in their scope and intensity with the
18course of study presented in tax-supported schools, and
19vocational or technical schools or institutes organized and
20operated exclusively to provide a course of study of not less
21than 6 weeks duration and designed to prepare individuals to
22follow a trade or to pursue a manual, technical, mechanical,
23industrial, business, or commercial occupation.
24    (28) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

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1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 3-90.
12    (29) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and other
15items, and replacement parts for these machines. Beginning
16January 1, 2002 and through June 30, 2003, machines and parts
17for machines used in commercial, coin-operated amusement and
18vending business if a use or occupation tax is paid on the
19gross receipts derived from the use of the commercial,
20coin-operated amusement and vending machines. This paragraph
21is exempt from the provisions of Section 3-90.
22    (30) Beginning January 1, 2001 and through June 30, 2011,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or in a licensed facility as defined
7in the MR/DD Community Care Act.
8    (31) Beginning on the effective date of this amendatory Act
9of the 92nd General Assembly, computers and communications
10equipment utilized for any hospital purpose and equipment used
11in the diagnosis, analysis, or treatment of hospital patients
12purchased by a lessor who leases the equipment, under a lease
13of one year or longer executed or in effect at the time the
14lessor would otherwise be subject to the tax imposed by this
15Act, to a hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. If the equipment is leased in a
18manner that does not qualify for this exemption or is used in
19any other nonexempt manner, the lessor shall be liable for the
20tax imposed under this Act or the Service Use Tax Act, as the
21case may be, based on the fair market value of the property at
22the time the nonqualifying use occurs. No lessor shall collect
23or attempt to collect an amount (however designated) that
24purports to reimburse that lessor for the tax imposed by this
25Act or the Service Use Tax Act, as the case may be, if the tax
26has not been paid by the lessor. If a lessor improperly

 

 

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1collects any such amount from the lessee, the lessee shall have
2a legal right to claim a refund of that amount from the lessor.
3If, however, that amount is not refunded to the lessee for any
4reason, the lessor is liable to pay that amount to the
5Department. This paragraph is exempt from the provisions of
6Section 3-90.
7    (32) Beginning on the effective date of this amendatory Act
8of the 92nd General Assembly, personal property purchased by a
9lessor who leases the property, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12governmental body that has been issued an active sales tax
13exemption identification number by the Department under
14Section 1g of the Retailers' Occupation Tax Act. If the
15property is leased in a manner that does not qualify for this
16exemption or used in any other nonexempt manner, the lessor
17shall be liable for the tax imposed under this Act or the
18Service Use Tax Act, as the case may be, based on the fair
19market value of the property at the time the nonqualifying use
20occurs. No lessor shall collect or attempt to collect an amount
21(however designated) that purports to reimburse that lessor for
22the tax imposed by this Act or the Service Use Tax Act, as the
23case may be, if the tax has not been paid by the lessor. If a
24lessor improperly collects any such amount from the lessee, the
25lessee shall have a legal right to claim a refund of that
26amount from the lessor. If, however, that amount is not

 

 

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1refunded to the lessee for any reason, the lessor is liable to
2pay that amount to the Department. This paragraph is exempt
3from the provisions of Section 3-90.
4    (33) On and after July 1, 2003 and through June 30, 2004,
5the use in this State of motor vehicles of the second division
6with a gross vehicle weight in excess of 8,000 pounds and that
7are subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
91, 2004 and through June 30, 2005, the use in this State of
10motor vehicles of the second division: (i) with a gross vehicle
11weight rating in excess of 8,000 pounds; (ii) that are subject
12to the commercial distribution fee imposed under Section
133-815.1 of the Illinois Vehicle Code; and (iii) that are
14primarily used for commercial purposes. Through June 30, 2005,
15this exemption applies to repair and replacement parts added
16after the initial purchase of such a motor vehicle if that
17motor vehicle is used in a manner that would qualify for the
18rolling stock exemption otherwise provided for in this Act. For
19purposes of this paragraph, the term "used for commercial
20purposes" means the transportation of persons or property in
21furtherance of any commercial or industrial enterprise,
22whether for-hire or not.
23    (34) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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1corporation that holds a valid water supply permit issued under
2Title IV of the Environmental Protection Act. This paragraph is
3exempt from the provisions of Section 3-90.
4    (35) Beginning January 1, 2010, materials, parts,
5equipment, components, and furnishings incorporated into or
6upon an aircraft as part of the modification, refurbishment,
7completion, replacement, repair, or maintenance of the
8aircraft. This exemption includes consumable supplies used in
9the modification, refurbishment, completion, replacement,
10repair, and maintenance of aircraft, but excludes any
11materials, parts, equipment, components, and consumable
12supplies used in the modification, replacement, repair, and
13maintenance of aircraft engines or power plants, whether such
14engines or power plants are installed or uninstalled upon any
15such aircraft. "Consumable supplies" include, but are not
16limited to, adhesive, tape, sandpaper, general purpose
17lubricants, cleaning solution, latex gloves, and protective
18films. This exemption applies only to those organizations that
19(i) hold an Air Agency Certificate and are empowered to operate
20an approved repair station by the Federal Aviation
21Administration, (ii) have a Class IV Rating, and (iii) conduct
22operations in accordance with Part 145 of the Federal Aviation
23Regulations. The exemption does not include aircraft operated
24by a commercial air carrier providing scheduled passenger air
25service pursuant to authority issued under Part 121 or Part 129
26of the Federal Aviation Regulations.

 

 

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1    (36) Tangible personal property purchased by a
2public-facilities corporation, as described in Section
311-65-10 of the Illinois Municipal Code, for purposes of
4constructing or furnishing a municipal convention hall, but
5only if the legal title to the municipal convention hall is
6transferred to the municipality without any further
7consideration by or on behalf of the municipality at the time
8of the completion of the municipal convention hall or upon the
9retirement or redemption of any bonds or other debt instruments
10issued by the public-facilities corporation in connection with
11the development of the municipal convention hall. This
12exemption includes existing public-facilities corporations as
13provided in Section 11-65-25 of the Illinois Municipal Code.
14This paragraph is exempt from the provisions of Section 3-90.
15    (37) Beginning on July 1, 2011, that part of the selling
16price of motor fuel or gasohol that exceeds $3.00 per gallon.
17This paragraph is exempt from the provisions of Section 3-90.
18(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
19eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
2096-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
217-2-10.)
 
22    Section 10. The Service Use Tax Act is amended by changing
23Section 3-5 as follows:
 
24    (35 ILCS 110/3-5)

 

 

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1    Sec. 3-5. Exemptions. Use of the following tangible
2personal property is exempt from the tax imposed by this Act:
3    (1) Personal property purchased from a corporation,
4society, association, foundation, institution, or
5organization, other than a limited liability company, that is
6organized and operated as a not-for-profit service enterprise
7for the benefit of persons 65 years of age or older if the
8personal property was not purchased by the enterprise for the
9purpose of resale by the enterprise.
10    (2) Personal property purchased by a non-profit Illinois
11county fair association for use in conducting, operating, or
12promoting the county fair.
13    (3) Personal property purchased by a not-for-profit arts or
14cultural organization that establishes, by proof required by
15the Department by rule, that it has received an exemption under
16Section 501(c)(3) of the Internal Revenue Code and that is
17organized and operated primarily for the presentation or
18support of arts or cultural programming, activities, or
19services. These organizations include, but are not limited to,
20music and dramatic arts organizations such as symphony
21orchestras and theatrical groups, arts and cultural service
22organizations, local arts councils, visual arts organizations,
23and media arts organizations. On and after the effective date
24of this amendatory Act of the 92nd General Assembly, however,
25an entity otherwise eligible for this exemption shall not make
26tax-free purchases unless it has an active identification

 

 

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1number issued by the Department.
2    (4) Legal tender, currency, medallions, or gold or silver
3coinage issued by the State of Illinois, the government of the
4United States of America, or the government of any foreign
5country, and bullion.
6    (5) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product.
15    (6) Personal property purchased from a teacher-sponsored
16student organization affiliated with an elementary or
17secondary school located in Illinois.
18    (7) Farm machinery and equipment, both new and used,
19including that manufactured on special order, certified by the
20purchaser to be used primarily for production agriculture or
21State or federal agricultural programs, including individual
22replacement parts for the machinery and equipment, including
23machinery and equipment purchased for lease, and including
24implements of husbandry defined in Section 1-130 of the
25Illinois Vehicle Code, farm machinery and agricultural
26chemical and fertilizer spreaders, and nurse wagons required to

 

 

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1be registered under Section 3-809 of the Illinois Vehicle Code,
2but excluding other motor vehicles required to be registered
3under the Illinois Vehicle Code. Horticultural polyhouses or
4hoop houses used for propagating, growing, or overwintering
5plants shall be considered farm machinery and equipment under
6this item (7). Agricultural chemical tender tanks and dry boxes
7shall include units sold separately from a motor vehicle
8required to be licensed and units sold mounted on a motor
9vehicle required to be licensed if the selling price of the
10tender is separately stated.
11    Farm machinery and equipment shall include precision
12farming equipment that is installed or purchased to be
13installed on farm machinery and equipment including, but not
14limited to, tractors, harvesters, sprayers, planters, seeders,
15or spreaders. Precision farming equipment includes, but is not
16limited to, soil testing sensors, computers, monitors,
17software, global positioning and mapping systems, and other
18such equipment.
19    Farm machinery and equipment also includes computers,
20sensors, software, and related equipment used primarily in the
21computer-assisted operation of production agriculture
22facilities, equipment, and activities such as, but not limited
23to, the collection, monitoring, and correlation of animal and
24crop data for the purpose of formulating animal diets and
25agricultural chemicals. This item (7) is exempt from the
26provisions of Section 3-75.

 

 

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1    (8) Fuel and petroleum products sold to or used by an air
2common carrier, certified by the carrier to be used for
3consumption, shipment, or storage in the conduct of its
4business as an air common carrier, for a flight destined for or
5returning from a location or locations outside the United
6States without regard to previous or subsequent domestic
7stopovers.
8    (9) Proceeds of mandatory service charges separately
9stated on customers' bills for the purchase and consumption of
10food and beverages acquired as an incident to the purchase of a
11service from a serviceman, to the extent that the proceeds of
12the service charge are in fact turned over as tips or as a
13substitute for tips to the employees who participate directly
14in preparing, serving, hosting or cleaning up the food or
15beverage function with respect to which the service charge is
16imposed.
17    (10) Until July 1, 2003, oil field exploration, drilling,
18and production equipment, including (i) rigs and parts of rigs,
19rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
20tubular goods, including casing and drill strings, (iii) pumps
21and pump-jack units, (iv) storage tanks and flow lines, (v) any
22individual replacement part for oil field exploration,
23drilling, and production equipment, and (vi) machinery and
24equipment purchased for lease; but excluding motor vehicles
25required to be registered under the Illinois Vehicle Code.
26    (11) Proceeds from the sale of photoprocessing machinery

 

 

09700HB2477ham001- 22 -LRB097 07323 PJG 51693 a

1and equipment, including repair and replacement parts, both new
2and used, including that manufactured on special order,
3certified by the purchaser to be used primarily for
4photoprocessing, and including photoprocessing machinery and
5equipment purchased for lease.
6    (12) Until July 1, 2003, coal exploration, mining,
7offhighway hauling, processing, maintenance, and reclamation
8equipment, including replacement parts and equipment, and
9including equipment purchased for lease, but excluding motor
10vehicles required to be registered under the Illinois Vehicle
11Code.
12    (13) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (14) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (14) is exempt from the provisions
20of Section 3-75, and the exemption provided for under this item
21(14) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after the effective
23date of this amendatory Act of the 95th General Assembly for
24such taxes paid during the period beginning May 30, 2000 and
25ending on the effective date of this amendatory Act of the 95th
26General Assembly.

 

 

09700HB2477ham001- 23 -LRB097 07323 PJG 51693 a

1    (15) Computers and communications equipment utilized for
2any hospital purpose and equipment used in the diagnosis,
3analysis, or treatment of hospital patients purchased by a
4lessor who leases the equipment, under a lease of one year or
5longer executed or in effect at the time the lessor would
6otherwise be subject to the tax imposed by this Act, to a
7hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of the
9Retailers' Occupation Tax Act. If the equipment is leased in a
10manner that does not qualify for this exemption or is used in
11any other non-exempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Use Tax Act, as the case may
13be, based on the fair market value of the property at the time
14the non-qualifying use occurs. No lessor shall collect or
15attempt to collect an amount (however designated) that purports
16to reimburse that lessor for the tax imposed by this Act or the
17Use Tax Act, as the case may be, if the tax has not been paid by
18the lessor. If a lessor improperly collects any such amount
19from the lessee, the lessee shall have a legal right to claim a
20refund of that amount from the lessor. If, however, that amount
21is not refunded to the lessee for any reason, the lessor is
22liable to pay that amount to the Department.
23    (16) Personal property purchased by a lessor who leases the
24property, under a lease of one year or longer executed or in
25effect at the time the lessor would otherwise be subject to the
26tax imposed by this Act, to a governmental body that has been

 

 

09700HB2477ham001- 24 -LRB097 07323 PJG 51693 a

1issued an active tax exemption identification number by the
2Department under Section 1g of the Retailers' Occupation Tax
3Act. If the property is leased in a manner that does not
4qualify for this exemption or is used in any other non-exempt
5manner, the lessor shall be liable for the tax imposed under
6this Act or the Use Tax Act, as the case may be, based on the
7fair market value of the property at the time the
8non-qualifying use occurs. No lessor shall collect or attempt
9to collect an amount (however designated) that purports to
10reimburse that lessor for the tax imposed by this Act or the
11Use Tax Act, as the case may be, if the tax has not been paid by
12the lessor. If a lessor improperly collects any such amount
13from the lessee, the lessee shall have a legal right to claim a
14refund of that amount from the lessor. If, however, that amount
15is not refunded to the lessee for any reason, the lessor is
16liable to pay that amount to the Department.
17    (17) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated for
20disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

 

 

09700HB2477ham001- 25 -LRB097 07323 PJG 51693 a

1    (18) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (19) Beginning July 1, 1999, game or game birds purchased
14at a "game breeding and hunting preserve area" or an "exotic
15game hunting area" as those terms are used in the Wildlife Code
16or at a hunting enclosure approved through rules adopted by the
17Department of Natural Resources. This paragraph is exempt from
18the provisions of Section 3-75.
19    (20) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the Department
23to be organized and operated exclusively for educational
24purposes. For purposes of this exemption, "a corporation,
25limited liability company, society, association, foundation,
26or institution organized and operated exclusively for

 

 

09700HB2477ham001- 26 -LRB097 07323 PJG 51693 a

1educational purposes" means all tax-supported public schools,
2private schools that offer systematic instruction in useful
3branches of learning by methods common to public schools and
4that compare favorably in their scope and intensity with the
5course of study presented in tax-supported schools, and
6vocational or technical schools or institutes organized and
7operated exclusively to provide a course of study of not less
8than 6 weeks duration and designed to prepare individuals to
9follow a trade or to pursue a manual, technical, mechanical,
10industrial, business, or commercial occupation.
11    (21) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-75.
25    (22) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

 

 

09700HB2477ham001- 27 -LRB097 07323 PJG 51693 a

1serve hot food and beverages, including coffee, soup, and other
2items, and replacement parts for these machines. Beginning
3January 1, 2002 and through June 30, 2003, machines and parts
4for machines used in commercial, coin-operated amusement and
5vending business if a use or occupation tax is paid on the
6gross receipts derived from the use of the commercial,
7coin-operated amusement and vending machines. This paragraph
8is exempt from the provisions of Section 3-75.
9    (23) Beginning August 23, 2001 and through June 30, 2011,
10food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages, soft
12drinks, and food that has been prepared for immediate
13consumption) and prescription and nonprescription medicines,
14drugs, medical appliances, and insulin, urine testing
15materials, syringes, and needles used by diabetics, for human
16use, when purchased for use by a person receiving medical
17assistance under Article V of the Illinois Public Aid Code who
18resides in a licensed long-term care facility, as defined in
19the Nursing Home Care Act, or in a licensed facility as defined
20in the MR/DD Community Care Act.
21    (24) Beginning on the effective date of this amendatory Act
22of the 92nd General Assembly, computers and communications
23equipment utilized for any hospital purpose and equipment used
24in the diagnosis, analysis, or treatment of hospital patients
25purchased by a lessor who leases the equipment, under a lease
26of one year or longer executed or in effect at the time the

 

 

09700HB2477ham001- 28 -LRB097 07323 PJG 51693 a

1lessor would otherwise be subject to the tax imposed by this
2Act, to a hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of the
4Retailers' Occupation Tax Act. If the equipment is leased in a
5manner that does not qualify for this exemption or is used in
6any other nonexempt manner, the lessor shall be liable for the
7tax imposed under this Act or the Use Tax Act, as the case may
8be, based on the fair market value of the property at the time
9the nonqualifying use occurs. No lessor shall collect or
10attempt to collect an amount (however designated) that purports
11to reimburse that lessor for the tax imposed by this Act or the
12Use Tax Act, as the case may be, if the tax has not been paid by
13the lessor. If a lessor improperly collects any such amount
14from the lessee, the lessee shall have a legal right to claim a
15refund of that amount from the lessor. If, however, that amount
16is not refunded to the lessee for any reason, the lessor is
17liable to pay that amount to the Department. This paragraph is
18exempt from the provisions of Section 3-75.
19    (25) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, personal property purchased by a
21lessor who leases the property, under a lease of one year or
22longer executed or in effect at the time the lessor would
23otherwise be subject to the tax imposed by this Act, to a
24governmental body that has been issued an active tax exemption
25identification number by the Department under Section 1g of the
26Retailers' Occupation Tax Act. If the property is leased in a

 

 

09700HB2477ham001- 29 -LRB097 07323 PJG 51693 a

1manner that does not qualify for this exemption or is used in
2any other nonexempt manner, the lessor shall be liable for the
3tax imposed under this Act or the Use Tax Act, as the case may
4be, based on the fair market value of the property at the time
5the nonqualifying use occurs. No lessor shall collect or
6attempt to collect an amount (however designated) that purports
7to reimburse that lessor for the tax imposed by this Act or the
8Use Tax Act, as the case may be, if the tax has not been paid by
9the lessor. If a lessor improperly collects any such amount
10from the lessee, the lessee shall have a legal right to claim a
11refund of that amount from the lessor. If, however, that amount
12is not refunded to the lessee for any reason, the lessor is
13liable to pay that amount to the Department. This paragraph is
14exempt from the provisions of Section 3-75.
15    (26) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued under
20Title IV of the Environmental Protection Act. This paragraph is
21exempt from the provisions of Section 3-75.
22    (27) Beginning January 1, 2010, materials, parts,
23equipment, components, and furnishings incorporated into or
24upon an aircraft as part of the modification, refurbishment,
25completion, replacement, repair, or maintenance of the
26aircraft. This exemption includes consumable supplies used in

 

 

09700HB2477ham001- 30 -LRB097 07323 PJG 51693 a

1the modification, refurbishment, completion, replacement,
2repair, and maintenance of aircraft, but excludes any
3materials, parts, equipment, components, and consumable
4supplies used in the modification, replacement, repair, and
5maintenance of aircraft engines or power plants, whether such
6engines or power plants are installed or uninstalled upon any
7such aircraft. "Consumable supplies" include, but are not
8limited to, adhesive, tape, sandpaper, general purpose
9lubricants, cleaning solution, latex gloves, and protective
10films. This exemption applies only to those organizations that
11(i) hold an Air Agency Certificate and are empowered to operate
12an approved repair station by the Federal Aviation
13Administration, (ii) have a Class IV Rating, and (iii) conduct
14operations in accordance with Part 145 of the Federal Aviation
15Regulations. The exemption does not include aircraft operated
16by a commercial air carrier providing scheduled passenger air
17service pursuant to authority issued under Part 121 or Part 129
18of the Federal Aviation Regulations.
19    (28) Tangible personal property purchased by a
20public-facilities corporation, as described in Section
2111-65-10 of the Illinois Municipal Code, for purposes of
22constructing or furnishing a municipal convention hall, but
23only if the legal title to the municipal convention hall is
24transferred to the municipality without any further
25consideration by or on behalf of the municipality at the time
26of the completion of the municipal convention hall or upon the

 

 

09700HB2477ham001- 31 -LRB097 07323 PJG 51693 a

1retirement or redemption of any bonds or other debt instruments
2issued by the public-facilities corporation in connection with
3the development of the municipal convention hall. This
4exemption includes existing public-facilities corporations as
5provided in Section 11-65-25 of the Illinois Municipal Code.
6This paragraph is exempt from the provisions of Section 3-75.
7    (29) Beginning on July 1, 2011, that part of the selling
8price of motor fuel or gasohol that exceeds $3.00 per gallon.
9This paragraph is exempt from the provisions of Section 3-75.
10(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
11eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1296-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
137-2-10.)
 
14    Section 15. The Service Occupation Tax Act is amended by
15changing Section 3-5 as follows:
 
16    (35 ILCS 115/3-5)
17    Sec. 3-5. Exemptions. The following tangible personal
18property is exempt from the tax imposed by this Act:
19    (1) Personal property sold by a corporation, society,
20association, foundation, institution, or organization, other
21than a limited liability company, that is organized and
22operated as a not-for-profit service enterprise for the benefit
23of persons 65 years of age or older if the personal property
24was not purchased by the enterprise for the purpose of resale

 

 

09700HB2477ham001- 32 -LRB097 07323 PJG 51693 a

1by the enterprise.
2    (2) Personal property purchased by a not-for-profit
3Illinois county fair association for use in conducting,
4operating, or promoting the county fair.
5    (3) Personal property purchased by any not-for-profit arts
6or cultural organization that establishes, by proof required by
7the Department by rule, that it has received an exemption under
8Section 501(c)(3) of the Internal Revenue Code and that is
9organized and operated primarily for the presentation or
10support of arts or cultural programming, activities, or
11services. These organizations include, but are not limited to,
12music and dramatic arts organizations such as symphony
13orchestras and theatrical groups, arts and cultural service
14organizations, local arts councils, visual arts organizations,
15and media arts organizations. On and after the effective date
16of this amendatory Act of the 92nd General Assembly, however,
17an entity otherwise eligible for this exemption shall not make
18tax-free purchases unless it has an active identification
19number issued by the Department.
20    (4) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (5) Until July 1, 2003 and beginning again on September 1,
252004 through August 30, 2014, graphic arts machinery and
26equipment, including repair and replacement parts, both new and

 

 

09700HB2477ham001- 33 -LRB097 07323 PJG 51693 a

1used, and including that manufactured on special order or
2purchased for lease, certified by the purchaser to be used
3primarily for graphic arts production. Equipment includes
4chemicals or chemicals acting as catalysts but only if the
5chemicals or chemicals acting as catalysts effect a direct and
6immediate change upon a graphic arts product.
7    (6) Personal property sold by a teacher-sponsored student
8organization affiliated with an elementary or secondary school
9located in Illinois.
10    (7) Farm machinery and equipment, both new and used,
11including that manufactured on special order, certified by the
12purchaser to be used primarily for production agriculture or
13State or federal agricultural programs, including individual
14replacement parts for the machinery and equipment, including
15machinery and equipment purchased for lease, and including
16implements of husbandry defined in Section 1-130 of the
17Illinois Vehicle Code, farm machinery and agricultural
18chemical and fertilizer spreaders, and nurse wagons required to
19be registered under Section 3-809 of the Illinois Vehicle Code,
20but excluding other motor vehicles required to be registered
21under the Illinois Vehicle Code. Horticultural polyhouses or
22hoop houses used for propagating, growing, or overwintering
23plants shall be considered farm machinery and equipment under
24this item (7). Agricultural chemical tender tanks and dry boxes
25shall include units sold separately from a motor vehicle
26required to be licensed and units sold mounted on a motor

 

 

09700HB2477ham001- 34 -LRB097 07323 PJG 51693 a

1vehicle required to be licensed if the selling price of the
2tender is separately stated.
3    Farm machinery and equipment shall include precision
4farming equipment that is installed or purchased to be
5installed on farm machinery and equipment including, but not
6limited to, tractors, harvesters, sprayers, planters, seeders,
7or spreaders. Precision farming equipment includes, but is not
8limited to, soil testing sensors, computers, monitors,
9software, global positioning and mapping systems, and other
10such equipment.
11    Farm machinery and equipment also includes computers,
12sensors, software, and related equipment used primarily in the
13computer-assisted operation of production agriculture
14facilities, equipment, and activities such as, but not limited
15to, the collection, monitoring, and correlation of animal and
16crop data for the purpose of formulating animal diets and
17agricultural chemicals. This item (7) is exempt from the
18provisions of Section 3-55.
19    (8) Fuel and petroleum products sold to or used by an air
20common carrier, certified by the carrier to be used for
21consumption, shipment, or storage in the conduct of its
22business as an air common carrier, for a flight destined for or
23returning from a location or locations outside the United
24States without regard to previous or subsequent domestic
25stopovers.
26    (9) Proceeds of mandatory service charges separately

 

 

09700HB2477ham001- 35 -LRB097 07323 PJG 51693 a

1stated on customers' bills for the purchase and consumption of
2food and beverages, to the extent that the proceeds of the
3service charge are in fact turned over as tips or as a
4substitute for tips to the employees who participate directly
5in preparing, serving, hosting or cleaning up the food or
6beverage function with respect to which the service charge is
7imposed.
8    (10) Until July 1, 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of rigs,
10rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
11tubular goods, including casing and drill strings, (iii) pumps
12and pump-jack units, (iv) storage tanks and flow lines, (v) any
13individual replacement part for oil field exploration,
14drilling, and production equipment, and (vi) machinery and
15equipment purchased for lease; but excluding motor vehicles
16required to be registered under the Illinois Vehicle Code.
17    (11) Photoprocessing machinery and equipment, including
18repair and replacement parts, both new and used, including that
19manufactured on special order, certified by the purchaser to be
20used primarily for photoprocessing, and including
21photoprocessing machinery and equipment purchased for lease.
22    (12) Until July 1, 2003, coal exploration, mining,
23offhighway hauling, processing, maintenance, and reclamation
24equipment, including replacement parts and equipment, and
25including equipment purchased for lease, but excluding motor
26vehicles required to be registered under the Illinois Vehicle

 

 

09700HB2477ham001- 36 -LRB097 07323 PJG 51693 a

1Code.
2    (13) Beginning January 1, 1992 and through June 30, 2011,
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks and food that has been prepared for immediate
6consumption) and prescription and non-prescription medicines,
7drugs, medical appliances, and insulin, urine testing
8materials, syringes, and needles used by diabetics, for human
9use, when purchased for use by a person receiving medical
10assistance under Article V of the Illinois Public Aid Code who
11resides in a licensed long-term care facility, as defined in
12the Nursing Home Care Act, or in a licensed facility as defined
13in the MR/DD Community Care Act.
14    (14) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (15) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (15) is exempt from the provisions
22of Section 3-55, and the exemption provided for under this item
23(15) applies for all periods beginning May 30, 1995, but no
24claim for credit or refund is allowed on or after January 1,
252008 (the effective date of Public Act 95-88) for such taxes
26paid during the period beginning May 30, 2000 and ending on

 

 

09700HB2477ham001- 37 -LRB097 07323 PJG 51693 a

1January 1, 2008 (the effective date of Public Act 95-88).
2    (16) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients sold to a lessor
5who leases the equipment, under a lease of one year or longer
6executed or in effect at the time of the purchase, to a
7hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of the
9Retailers' Occupation Tax Act.
10    (17) Personal property sold to a lessor who leases the
11property, under a lease of one year or longer executed or in
12effect at the time of the purchase, to a governmental body that
13has been issued an active tax exemption identification number
14by the Department under Section 1g of the Retailers' Occupation
15Tax Act.
16    (18) Beginning with taxable years ending on or after
17December 31, 1995 and ending with taxable years ending on or
18before December 31, 2004, personal property that is donated for
19disaster relief to be used in a State or federally declared
20disaster area in Illinois or bordering Illinois by a
21manufacturer or retailer that is registered in this State to a
22corporation, society, association, foundation, or institution
23that has been issued a sales tax exemption identification
24number by the Department that assists victims of the disaster
25who reside within the declared disaster area.
26    (19) Beginning with taxable years ending on or after

 

 

09700HB2477ham001- 38 -LRB097 07323 PJG 51693 a

1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in the
3performance of infrastructure repairs in this State, including
4but not limited to municipal roads and streets, access roads,
5bridges, sidewalks, waste disposal systems, water and sewer
6line extensions, water distribution and purification
7facilities, storm water drainage and retention facilities, and
8sewage treatment facilities, resulting from a State or
9federally declared disaster in Illinois or bordering Illinois
10when such repairs are initiated on facilities located in the
11declared disaster area within 6 months after the disaster.
12    (20) Beginning July 1, 1999, game or game birds sold at a
13"game breeding and hunting preserve area" or an "exotic game
14hunting area" as those terms are used in the Wildlife Code or
15at a hunting enclosure approved through rules adopted by the
16Department of Natural Resources. This paragraph is exempt from
17the provisions of Section 3-55.
18    (21) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the Department
22to be organized and operated exclusively for educational
23purposes. For purposes of this exemption, "a corporation,
24limited liability company, society, association, foundation,
25or institution organized and operated exclusively for
26educational purposes" means all tax-supported public schools,

 

 

09700HB2477ham001- 39 -LRB097 07323 PJG 51693 a

1private schools that offer systematic instruction in useful
2branches of learning by methods common to public schools and
3that compare favorably in their scope and intensity with the
4course of study presented in tax-supported schools, and
5vocational or technical schools or institutes organized and
6operated exclusively to provide a course of study of not less
7than 6 weeks duration and designed to prepare individuals to
8follow a trade or to pursue a manual, technical, mechanical,
9industrial, business, or commercial occupation.
10    (22) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-55.
24    (23) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and other

 

 

09700HB2477ham001- 40 -LRB097 07323 PJG 51693 a

1items, and replacement parts for these machines. Beginning
2January 1, 2002 and through June 30, 2003, machines and parts
3for machines used in commercial, coin-operated amusement and
4vending business if a use or occupation tax is paid on the
5gross receipts derived from the use of the commercial,
6coin-operated amusement and vending machines. This paragraph
7is exempt from the provisions of Section 3-55.
8    (24) Beginning on the effective date of this amendatory Act
9of the 92nd General Assembly, computers and communications
10equipment utilized for any hospital purpose and equipment used
11in the diagnosis, analysis, or treatment of hospital patients
12sold to a lessor who leases the equipment, under a lease of one
13year or longer executed or in effect at the time of the
14purchase, to a hospital that has been issued an active tax
15exemption identification number by the Department under
16Section 1g of the Retailers' Occupation Tax Act. This paragraph
17is exempt from the provisions of Section 3-55.
18    (25) Beginning on the effective date of this amendatory Act
19of the 92nd General Assembly, personal property sold to a
20lessor who leases the property, under a lease of one year or
21longer executed or in effect at the time of the purchase, to a
22governmental body that has been issued an active tax exemption
23identification number by the Department under Section 1g of the
24Retailers' Occupation Tax Act. This paragraph is exempt from
25the provisions of Section 3-55.
26    (26) Beginning on January 1, 2002 and through June 30,

 

 

09700HB2477ham001- 41 -LRB097 07323 PJG 51693 a

12011, tangible personal property purchased from an Illinois
2retailer by a taxpayer engaged in centralized purchasing
3activities in Illinois who will, upon receipt of the property
4in Illinois, temporarily store the property in Illinois (i) for
5the purpose of subsequently transporting it outside this State
6for use or consumption thereafter solely outside this State or
7(ii) for the purpose of being processed, fabricated, or
8manufactured into, attached to, or incorporated into other
9tangible personal property to be transported outside this State
10and thereafter used or consumed solely outside this State. The
11Director of Revenue shall, pursuant to rules adopted in
12accordance with the Illinois Administrative Procedure Act,
13issue a permit to any taxpayer in good standing with the
14Department who is eligible for the exemption under this
15paragraph (26). The permit issued under this paragraph (26)
16shall authorize the holder, to the extent and in the manner
17specified in the rules adopted under this Act, to purchase
18tangible personal property from a retailer exempt from the
19taxes imposed by this Act. Taxpayers shall maintain all
20necessary books and records to substantiate the use and
21consumption of all such tangible personal property outside of
22the State of Illinois.
23    (27) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

09700HB2477ham001- 42 -LRB097 07323 PJG 51693 a

1corporation that holds a valid water supply permit issued under
2Title IV of the Environmental Protection Act. This paragraph is
3exempt from the provisions of Section 3-55.
4    (28) Tangible personal property sold to a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt instruments
13issued by the public-facilities corporation in connection with
14the development of the municipal convention hall. This
15exemption includes existing public-facilities corporations as
16provided in Section 11-65-25 of the Illinois Municipal Code.
17This paragraph is exempt from the provisions of Section 3-55.
18    (29) Beginning January 1, 2010, materials, parts,
19equipment, components, and furnishings incorporated into or
20upon an aircraft as part of the modification, refurbishment,
21completion, replacement, repair, or maintenance of the
22aircraft. This exemption includes consumable supplies used in
23the modification, refurbishment, completion, replacement,
24repair, and maintenance of aircraft, but excludes any
25materials, parts, equipment, components, and consumable
26supplies used in the modification, replacement, repair, and

 

 

09700HB2477ham001- 43 -LRB097 07323 PJG 51693 a

1maintenance of aircraft engines or power plants, whether such
2engines or power plants are installed or uninstalled upon any
3such aircraft. "Consumable supplies" include, but are not
4limited to, adhesive, tape, sandpaper, general purpose
5lubricants, cleaning solution, latex gloves, and protective
6films. This exemption applies only to those organizations that
7(i) hold an Air Agency Certificate and are empowered to operate
8an approved repair station by the Federal Aviation
9Administration, (ii) have a Class IV Rating, and (iii) conduct
10operations in accordance with Part 145 of the Federal Aviation
11Regulations. The exemption does not include aircraft operated
12by a commercial air carrier providing scheduled passenger air
13service pursuant to authority issued under Part 121 or Part 129
14of the Federal Aviation Regulations.
15    (30) Beginning on July 1, 2011, that part of the selling
16price of motor fuel or gasohol that exceeds $3.00 per gallon.
17This paragraph is exempt from the provisions of Section 3-55.
18(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
19eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
2096-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
217-2-10.)
 
22    Section 20. The Retailers' Occupation Tax Act is amended by
23changing Section 2-5 as follows:
 
24    (35 ILCS 120/2-5)

 

 

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1    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
2sale of the following tangible personal property are exempt
3from the tax imposed by this Act:
4    (1) Farm chemicals.
5    (2) Farm machinery and equipment, both new and used,
6including that manufactured on special order, certified by the
7purchaser to be used primarily for production agriculture or
8State or federal agricultural programs, including individual
9replacement parts for the machinery and equipment, including
10machinery and equipment purchased for lease, and including
11implements of husbandry defined in Section 1-130 of the
12Illinois Vehicle Code, farm machinery and agricultural
13chemical and fertilizer spreaders, and nurse wagons required to
14be registered under Section 3-809 of the Illinois Vehicle Code,
15but excluding other motor vehicles required to be registered
16under the Illinois Vehicle Code. Horticultural polyhouses or
17hoop houses used for propagating, growing, or overwintering
18plants shall be considered farm machinery and equipment under
19this item (2). Agricultural chemical tender tanks and dry boxes
20shall include units sold separately from a motor vehicle
21required to be licensed and units sold mounted on a motor
22vehicle required to be licensed, if the selling price of the
23tender is separately stated.
24    Farm machinery and equipment shall include precision
25farming equipment that is installed or purchased to be
26installed on farm machinery and equipment including, but not

 

 

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1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (7) is exempt from the
13provisions of Section 2-70.
14    (3) Until July 1, 2003, distillation machinery and
15equipment, sold as a unit or kit, assembled or installed by the
16retailer, certified by the user to be used only for the
17production of ethyl alcohol that will be used for consumption
18as motor fuel or as a component of motor fuel for the personal
19use of the user, and not subject to sale or resale.
20    (4) Until July 1, 2003 and beginning again September 1,
212004 through August 30, 2014, graphic arts machinery and
22equipment, including repair and replacement parts, both new and
23used, and including that manufactured on special order or
24purchased for lease, certified by the purchaser to be used
25primarily for graphic arts production. Equipment includes
26chemicals or chemicals acting as catalysts but only if the

 

 

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1chemicals or chemicals acting as catalysts effect a direct and
2immediate change upon a graphic arts product.
3    (5) A motor vehicle of the first division, a motor vehicle
4of the second division that is a self contained motor vehicle
5designed or permanently converted to provide living quarters
6for recreational, camping, or travel use, with direct walk
7through access to the living quarters from the driver's seat,
8or a motor vehicle of the second division that is of the van
9configuration designed for the transportation of not less than
107 nor more than 16 passengers, as defined in Section 1-146 of
11the Illinois Vehicle Code, that is used for automobile renting,
12as defined in the Automobile Renting Occupation and Use Tax
13Act. This paragraph is exempt from the provisions of Section
142-70.
15    (6) Personal property sold by a teacher-sponsored student
16organization affiliated with an elementary or secondary school
17located in Illinois.
18    (7) Until July 1, 2003, proceeds of that portion of the
19selling price of a passenger car the sale of which is subject
20to the Replacement Vehicle Tax.
21    (8) Personal property sold to an Illinois county fair
22association for use in conducting, operating, or promoting the
23county fair.
24    (9) Personal property sold to a not-for-profit arts or
25cultural organization that establishes, by proof required by
26the Department by rule, that it has received an exemption under

 

 

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1Section 501(c)(3) of the Internal Revenue Code and that is
2organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after the effective date
9of this amendatory Act of the 92nd General Assembly, however,
10an entity otherwise eligible for this exemption shall not make
11tax-free purchases unless it has an active identification
12number issued by the Department.
13    (10) Personal property sold by a corporation, society,
14association, foundation, institution, or organization, other
15than a limited liability company, that is organized and
16operated as a not-for-profit service enterprise for the benefit
17of persons 65 years of age or older if the personal property
18was not purchased by the enterprise for the purpose of resale
19by the enterprise.
20    (11) Personal property sold to a governmental body, to a
21corporation, society, association, foundation, or institution
22organized and operated exclusively for charitable, religious,
23or educational purposes, or to a not-for-profit corporation,
24society, association, foundation, institution, or organization
25that has no compensated officers or employees and that is
26organized and operated primarily for the recreation of persons

 

 

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155 years of age or older. A limited liability company may
2qualify for the exemption under this paragraph only if the
3limited liability company is organized and operated
4exclusively for educational purposes. On and after July 1,
51987, however, no entity otherwise eligible for this exemption
6shall make tax-free purchases unless it has an active
7identification number issued by the Department.
8    (12) Tangible personal property sold to interstate
9carriers for hire for use as rolling stock moving in interstate
10commerce or to lessors under leases of one year or longer
11executed or in effect at the time of purchase by interstate
12carriers for hire for use as rolling stock moving in interstate
13commerce and equipment operated by a telecommunications
14provider, licensed as a common carrier by the Federal
15Communications Commission, which is permanently installed in
16or affixed to aircraft moving in interstate commerce.
17    (12-5) On and after July 1, 2003 and through June 30, 2004,
18motor vehicles of the second division with a gross vehicle
19weight in excess of 8,000 pounds that are subject to the
20commercial distribution fee imposed under Section 3-815.1 of
21the Illinois Vehicle Code. Beginning on July 1, 2004 and
22through June 30, 2005, the use in this State of motor vehicles
23of the second division: (i) with a gross vehicle weight rating
24in excess of 8,000 pounds; (ii) that are subject to the
25commercial distribution fee imposed under Section 3-815.1 of
26the Illinois Vehicle Code; and (iii) that are primarily used

 

 

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1for commercial purposes. Through June 30, 2005, this exemption
2applies to repair and replacement parts added after the initial
3purchase of such a motor vehicle if that motor vehicle is used
4in a manner that would qualify for the rolling stock exemption
5otherwise provided for in this Act. For purposes of this
6paragraph, "used for commercial purposes" means the
7transportation of persons or property in furtherance of any
8commercial or industrial enterprise whether for-hire or not.
9    (13) Proceeds from sales to owners, lessors, or shippers of
10tangible personal property that is utilized by interstate
11carriers for hire for use as rolling stock moving in interstate
12commerce and equipment operated by a telecommunications
13provider, licensed as a common carrier by the Federal
14Communications Commission, which is permanently installed in
15or affixed to aircraft moving in interstate commerce.
16    (14) Machinery and equipment that will be used by the
17purchaser, or a lessee of the purchaser, primarily in the
18process of manufacturing or assembling tangible personal
19property for wholesale or retail sale or lease, whether the
20sale or lease is made directly by the manufacturer or by some
21other person, whether the materials used in the process are
22owned by the manufacturer or some other person, or whether the
23sale or lease is made apart from or as an incident to the
24seller's engaging in the service occupation of producing
25machines, tools, dies, jigs, patterns, gauges, or other similar
26items of no commercial value on special order for a particular

 

 

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1purchaser.
2    (15) Proceeds of mandatory service charges separately
3stated on customers' bills for purchase and consumption of food
4and beverages, to the extent that the proceeds of the service
5charge are in fact turned over as tips or as a substitute for
6tips to the employees who participate directly in preparing,
7serving, hosting or cleaning up the food or beverage function
8with respect to which the service charge is imposed.
9    (16) Petroleum products sold to a purchaser if the seller
10is prohibited by federal law from charging tax to the
11purchaser.
12    (17) Tangible personal property sold to a common carrier by
13rail or motor that receives the physical possession of the
14property in Illinois and that transports the property, or
15shares with another common carrier in the transportation of the
16property, out of Illinois on a standard uniform bill of lading
17showing the seller of the property as the shipper or consignor
18of the property to a destination outside Illinois, for use
19outside Illinois.
20    (18) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (19) Until July 1 2003, oil field exploration, drilling,
25and production equipment, including (i) rigs and parts of rigs,
26rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

 

 

09700HB2477ham001- 51 -LRB097 07323 PJG 51693 a

1tubular goods, including casing and drill strings, (iii) pumps
2and pump-jack units, (iv) storage tanks and flow lines, (v) any
3individual replacement part for oil field exploration,
4drilling, and production equipment, and (vi) machinery and
5equipment purchased for lease; but excluding motor vehicles
6required to be registered under the Illinois Vehicle Code.
7    (20) Photoprocessing machinery and equipment, including
8repair and replacement parts, both new and used, including that
9manufactured on special order, certified by the purchaser to be
10used primarily for photoprocessing, and including
11photoprocessing machinery and equipment purchased for lease.
12    (21) Until July 1, 2003, coal exploration, mining,
13offhighway hauling, processing, maintenance, and reclamation
14equipment, including replacement parts and equipment, and
15including equipment purchased for lease, but excluding motor
16vehicles required to be registered under the Illinois Vehicle
17Code.
18    (22) Fuel and petroleum products sold to or used by an air
19carrier, certified by the carrier to be used for consumption,
20shipment, or storage in the conduct of its business as an air
21common carrier, for a flight destined for or returning from a
22location or locations outside the United States without regard
23to previous or subsequent domestic stopovers.
24    (23) A transaction in which the purchase order is received
25by a florist who is located outside Illinois, but who has a
26florist located in Illinois deliver the property to the

 

 

09700HB2477ham001- 52 -LRB097 07323 PJG 51693 a

1purchaser or the purchaser's donee in Illinois.
2    (24) Fuel consumed or used in the operation of ships,
3barges, or vessels that are used primarily in or for the
4transportation of property or the conveyance of persons for
5hire on rivers bordering on this State if the fuel is delivered
6by the seller to the purchaser's barge, ship, or vessel while
7it is afloat upon that bordering river.
8    (25) Except as provided in item (25-5) of this Section, a
9motor vehicle sold in this State to a nonresident even though
10the motor vehicle is delivered to the nonresident in this
11State, if the motor vehicle is not to be titled in this State,
12and if a drive-away permit is issued to the motor vehicle as
13provided in Section 3-603 of the Illinois Vehicle Code or if
14the nonresident purchaser has vehicle registration plates to
15transfer to the motor vehicle upon returning to his or her home
16state. The issuance of the drive-away permit or having the
17out-of-state registration plates to be transferred is prima
18facie evidence that the motor vehicle will not be titled in
19this State.
20    (25-5) The exemption under item (25) does not apply if the
21state in which the motor vehicle will be titled does not allow
22a reciprocal exemption for a motor vehicle sold and delivered
23in that state to an Illinois resident but titled in Illinois.
24The tax collected under this Act on the sale of a motor vehicle
25in this State to a resident of another state that does not
26allow a reciprocal exemption shall be imposed at a rate equal

 

 

09700HB2477ham001- 53 -LRB097 07323 PJG 51693 a

1to the state's rate of tax on taxable property in the state in
2which the purchaser is a resident, except that the tax shall
3not exceed the tax that would otherwise be imposed under this
4Act. At the time of the sale, the purchaser shall execute a
5statement, signed under penalty of perjury, of his or her
6intent to title the vehicle in the state in which the purchaser
7is a resident within 30 days after the sale and of the fact of
8the payment to the State of Illinois of tax in an amount
9equivalent to the state's rate of tax on taxable property in
10his or her state of residence and shall submit the statement to
11the appropriate tax collection agency in his or her state of
12residence. In addition, the retailer must retain a signed copy
13of the statement in his or her records. Nothing in this item
14shall be construed to require the removal of the vehicle from
15this state following the filing of an intent to title the
16vehicle in the purchaser's state of residence if the purchaser
17titles the vehicle in his or her state of residence within 30
18days after the date of sale. The tax collected under this Act
19in accordance with this item (25-5) shall be proportionately
20distributed as if the tax were collected at the 6.25% general
21rate imposed under this Act.
22    (25-7) Beginning on July 1, 2007, no tax is imposed under
23this Act on the sale of an aircraft, as defined in Section 3 of
24the Illinois Aeronautics Act, if all of the following
25conditions are met:
26        (1) the aircraft leaves this State within 15 days after

 

 

09700HB2477ham001- 54 -LRB097 07323 PJG 51693 a

1    the later of either the issuance of the final billing for
2    the sale of the aircraft, or the authorized approval for
3    return to service, completion of the maintenance record
4    entry, and completion of the test flight and ground test
5    for inspection, as required by 14 C.F.R. 91.407;
6        (2) the aircraft is not based or registered in this
7    State after the sale of the aircraft; and
8        (3) the seller retains in his or her books and records
9    and provides to the Department a signed and dated
10    certification from the purchaser, on a form prescribed by
11    the Department, certifying that the requirements of this
12    item (25-7) are met. The certificate must also include the
13    name and address of the purchaser, the address of the
14    location where the aircraft is to be titled or registered,
15    the address of the primary physical location of the
16    aircraft, and other information that the Department may
17    reasonably require.
18    For purposes of this item (25-7):
19    "Based in this State" means hangared, stored, or otherwise
20used, excluding post-sale customizations as defined in this
21Section, for 10 or more days in each 12-month period
22immediately following the date of the sale of the aircraft.
23    "Registered in this State" means an aircraft registered
24with the Department of Transportation, Aeronautics Division,
25or titled or registered with the Federal Aviation
26Administration to an address located in this State.

 

 

09700HB2477ham001- 55 -LRB097 07323 PJG 51693 a

1    This paragraph (25-7) is exempt from the provisions of
2Section 2-70.
3    (26) Semen used for artificial insemination of livestock
4for direct agricultural production.
5    (27) Horses, or interests in horses, registered with and
6meeting the requirements of any of the Arabian Horse Club
7Registry of America, Appaloosa Horse Club, American Quarter
8Horse Association, United States Trotting Association, or
9Jockey Club, as appropriate, used for purposes of breeding or
10racing for prizes. This item (27) is exempt from the provisions
11of Section 2-70, and the exemption provided for under this item
12(27) applies for all periods beginning May 30, 1995, but no
13claim for credit or refund is allowed on or after January 1,
142008 (the effective date of Public Act 95-88) for such taxes
15paid during the period beginning May 30, 2000 and ending on
16January 1, 2008 (the effective date of Public Act 95-88).
17    (28) Computers and communications equipment utilized for
18any hospital purpose and equipment used in the diagnosis,
19analysis, or treatment of hospital patients sold to a lessor
20who leases the equipment, under a lease of one year or longer
21executed or in effect at the time of the purchase, to a
22hospital that has been issued an active tax exemption
23identification number by the Department under Section 1g of
24this Act.
25    (29) Personal property sold to a lessor who leases the
26property, under a lease of one year or longer executed or in

 

 

09700HB2477ham001- 56 -LRB097 07323 PJG 51693 a

1effect at the time of the purchase, to a governmental body that
2has been issued an active tax exemption identification number
3by the Department under Section 1g of this Act.
4    (30) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is donated for
7disaster relief to be used in a State or federally declared
8disaster area in Illinois or bordering Illinois by a
9manufacturer or retailer that is registered in this State to a
10corporation, society, association, foundation, or institution
11that has been issued a sales tax exemption identification
12number by the Department that assists victims of the disaster
13who reside within the declared disaster area.
14    (31) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is used in the
17performance of infrastructure repairs in this State, including
18but not limited to municipal roads and streets, access roads,
19bridges, sidewalks, waste disposal systems, water and sewer
20line extensions, water distribution and purification
21facilities, storm water drainage and retention facilities, and
22sewage treatment facilities, resulting from a State or
23federally declared disaster in Illinois or bordering Illinois
24when such repairs are initiated on facilities located in the
25declared disaster area within 6 months after the disaster.
26    (32) Beginning July 1, 1999, game or game birds sold at a

 

 

09700HB2477ham001- 57 -LRB097 07323 PJG 51693 a

1"game breeding and hunting preserve area" or an "exotic game
2hunting area" as those terms are used in the Wildlife Code or
3at a hunting enclosure approved through rules adopted by the
4Department of Natural Resources. This paragraph is exempt from
5the provisions of Section 2-70.
6    (33) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the Department
10to be organized and operated exclusively for educational
11purposes. For purposes of this exemption, "a corporation,
12limited liability company, society, association, foundation,
13or institution organized and operated exclusively for
14educational purposes" means all tax-supported public schools,
15private schools that offer systematic instruction in useful
16branches of learning by methods common to public schools and
17that compare favorably in their scope and intensity with the
18course of study presented in tax-supported schools, and
19vocational or technical schools or institutes organized and
20operated exclusively to provide a course of study of not less
21than 6 weeks duration and designed to prepare individuals to
22follow a trade or to pursue a manual, technical, mechanical,
23industrial, business, or commercial occupation.
24    (34) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

09700HB2477ham001- 58 -LRB097 07323 PJG 51693 a

1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 2-70.
12    (35) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and other
15items, and replacement parts for these machines. Beginning
16January 1, 2002 and through June 30, 2003, machines and parts
17for machines used in commercial, coin-operated amusement and
18vending business if a use or occupation tax is paid on the
19gross receipts derived from the use of the commercial,
20coin-operated amusement and vending machines. This paragraph
21is exempt from the provisions of Section 2-70.
22    (35-5) Beginning August 23, 2001 and through June 30, 2011,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

09700HB2477ham001- 59 -LRB097 07323 PJG 51693 a

1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or a licensed facility as defined in
7the MR/DD Community Care Act.
8    (36) Beginning August 2, 2001, computers and
9communications equipment utilized for any hospital purpose and
10equipment used in the diagnosis, analysis, or treatment of
11hospital patients sold to a lessor who leases the equipment,
12under a lease of one year or longer executed or in effect at
13the time of the purchase, to a hospital that has been issued an
14active tax exemption identification number by the Department
15under Section 1g of this Act. This paragraph is exempt from the
16provisions of Section 2-70.
17    (37) Beginning August 2, 2001, personal property sold to a
18lessor who leases the property, under a lease of one year or
19longer executed or in effect at the time of the purchase, to a
20governmental body that has been issued an active tax exemption
21identification number by the Department under Section 1g of
22this Act. This paragraph is exempt from the provisions of
23Section 2-70.
24    (38) Beginning on January 1, 2002 and through June 30,
252011, tangible personal property purchased from an Illinois
26retailer by a taxpayer engaged in centralized purchasing

 

 

09700HB2477ham001- 60 -LRB097 07323 PJG 51693 a

1activities in Illinois who will, upon receipt of the property
2in Illinois, temporarily store the property in Illinois (i) for
3the purpose of subsequently transporting it outside this State
4for use or consumption thereafter solely outside this State or
5(ii) for the purpose of being processed, fabricated, or
6manufactured into, attached to, or incorporated into other
7tangible personal property to be transported outside this State
8and thereafter used or consumed solely outside this State. The
9Director of Revenue shall, pursuant to rules adopted in
10accordance with the Illinois Administrative Procedure Act,
11issue a permit to any taxpayer in good standing with the
12Department who is eligible for the exemption under this
13paragraph (38). The permit issued under this paragraph (38)
14shall authorize the holder, to the extent and in the manner
15specified in the rules adopted under this Act, to purchase
16tangible personal property from a retailer exempt from the
17taxes imposed by this Act. Taxpayers shall maintain all
18necessary books and records to substantiate the use and
19consumption of all such tangible personal property outside of
20the State of Illinois.
21    (39) Beginning January 1, 2008, tangible personal property
22used in the construction or maintenance of a community water
23supply, as defined under Section 3.145 of the Environmental
24Protection Act, that is operated by a not-for-profit
25corporation that holds a valid water supply permit issued under
26Title IV of the Environmental Protection Act. This paragraph is

 

 

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1exempt from the provisions of Section 2-70.
2    (40) Beginning January 1, 2010, materials, parts,
3equipment, components, and furnishings incorporated into or
4upon an aircraft as part of the modification, refurbishment,
5completion, replacement, repair, or maintenance of the
6aircraft. This exemption includes consumable supplies used in
7the modification, refurbishment, completion, replacement,
8repair, and maintenance of aircraft, but excludes any
9materials, parts, equipment, components, and consumable
10supplies used in the modification, replacement, repair, and
11maintenance of aircraft engines or power plants, whether such
12engines or power plants are installed or uninstalled upon any
13such aircraft. "Consumable supplies" include, but are not
14limited to, adhesive, tape, sandpaper, general purpose
15lubricants, cleaning solution, latex gloves, and protective
16films. This exemption applies only to those organizations that
17(i) hold an Air Agency Certificate and are empowered to operate
18an approved repair station by the Federal Aviation
19Administration, (ii) have a Class IV Rating, and (iii) conduct
20operations in accordance with Part 145 of the Federal Aviation
21Regulations. The exemption does not include aircraft operated
22by a commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part 129
24of the Federal Aviation Regulations.
25    (41) Tangible personal property sold to a
26public-facilities corporation, as described in Section

 

 

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111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt instruments
8issued by the public-facilities corporation in connection with
9the development of the municipal convention hall. This
10exemption includes existing public-facilities corporations as
11provided in Section 11-65-25 of the Illinois Municipal Code.
12This paragraph is exempt from the provisions of Section 2-70.
13    (42) Beginning on July 1, 2011, that part of the selling
14price of motor fuel or gasohol that exceeds $3.00 per gallon.
15This paragraph is exempt from the provisions of Section 2-70.
16(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
17eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;
1895-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
197-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
20eff. 7-2-10.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".