97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3245

 

Introduced 2/24/2011, by Rep. Jerry L. Mitchell - Richard Morthland

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, from August 15th through November 15th of each year beginning in 2012, propane used for agricultural purposes is exempt from taxation under the Acts. Effective immediatley.


LRB097 07940 HLH 48057 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle of the first division, a motor vehicle
21of the second division that is a self-contained motor vehicle
22designed or permanently converted to provide living quarters
23for recreational, camping, or travel use, with direct walk
24through to the living quarters from the driver's seat, or a
25motor vehicle of the second division that is of the van
26configuration designed for the transportation of not less than

 

 

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17 nor more than 16 passengers, as defined in Section 1-146 of
2the Illinois Vehicle Code, that is used for automobile renting,
3as defined in the Automobile Renting Occupation and Use Tax
4Act.
5    (11) 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 (11). Agricultural chemical tender tanks and dry
20boxes shall 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 (11) is exempt from the
13provisions of Section 3-90.
14    (12) Fuel and petroleum products sold to or used by an air
15common carrier, certified by the carrier to be used for
16consumption, shipment, or storage in the conduct of its
17business as an air common carrier, for a flight destined for or
18returning from a location or locations outside the United
19States without regard to previous or subsequent domestic
20stopovers.
21    (13) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages purchased at retail from a retailer, to the
24extent that the proceeds of the service charge are in fact
25turned over as tips or as a substitute for tips to the
26employees who participate directly in preparing, serving,

 

 

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1hosting or cleaning up the food or beverage function with
2respect to which the service charge is imposed.
3    (14) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (15) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (16) Until July 1, 2003, coal exploration, mining,
18offhighway hauling, processing, maintenance, and reclamation
19equipment, including replacement parts and equipment, and
20including equipment purchased for lease, but excluding motor
21vehicles required to be registered under the Illinois Vehicle
22Code.
23    (17) Until July 1, 2003, distillation machinery and
24equipment, sold as a unit or kit, assembled or installed by the
25retailer, certified by the user to be used only for the
26production of ethyl alcohol that will be used for consumption

 

 

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1as motor fuel or as a component of motor fuel for the personal
2use of the user, and not subject to sale or resale.
3    (18) Manufacturing and assembling machinery and equipment
4used primarily in the process of manufacturing or assembling
5tangible personal property for wholesale or retail sale or
6lease, whether that sale or lease is made directly by the
7manufacturer or by some other person, whether the materials
8used in the process are owned by the manufacturer or some other
9person, or whether that sale or lease is made apart from or as
10an incident to the seller's engaging in the service occupation
11of producing machines, tools, dies, jigs, patterns, gauges, or
12other similar items of no commercial value on special order for
13a particular purchaser.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the provisions

 

 

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1of Section 3-90, and the exemption provided for under this item
2(21) applies for all periods beginning May 30, 1995, but no
3claim for credit or refund is allowed on or after January 1,
42008 for such taxes paid during the period beginning May 30,
52000 and ending on January 1, 2008.
6    (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, 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
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. If the equipment is leased in a
15manner that does not qualify for this exemption or is used in
16any other non-exempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Service Use Tax Act, as the
18case may be, based on the fair market value of the property at
19the time the non-qualifying use occurs. No lessor shall collect
20or attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall have
25a legal right to claim a refund of that amount from the lessor.
26If, however, that amount is not refunded to the lessee for any

 

 

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

 

 

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1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (25) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in the
10performance of infrastructure repairs in this State, including
11but not limited to municipal roads and streets, access roads,
12bridges, sidewalks, waste disposal systems, water and sewer
13line extensions, water distribution and purification
14facilities, storm water drainage and retention facilities, and
15sewage treatment facilities, resulting from a State or
16federally declared disaster in Illinois or bordering Illinois
17when such repairs are initiated on facilities located in the
18declared disaster area within 6 months after the disaster.
19    (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" or an "exotic
21game hunting area" as those terms are used in the Wildlife Code
22or at a hunting enclosure approved through rules adopted by the
23Department of Natural Resources. This paragraph is exempt from
24the provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the Department
3to be organized and operated exclusively for educational
4purposes. For purposes of this exemption, "a corporation,
5limited liability company, society, association, foundation,
6or institution organized and operated exclusively for
7educational purposes" means all tax-supported public schools,
8private schools that offer systematic instruction in useful
9branches of learning by methods common to public schools and
10that compare favorably in their scope and intensity with the
11course of study presented in tax-supported schools, and
12vocational or technical schools or institutes organized and
13operated exclusively to provide a course of study of not less
14than 6 weeks duration and designed to prepare individuals to
15follow a trade or to pursue a manual, technical, mechanical,
16industrial, business, or commercial occupation.
17    (28) Beginning January 1, 2000, personal property,
18including food, purchased through fundraising events for the
19benefit of a public or private elementary or secondary school,
20a group of those schools, or one or more school districts if
21the events are sponsored by an entity recognized by the school
22district that consists primarily of volunteers and includes
23parents and teachers of the school children. This paragraph
24does not apply to fundraising events (i) for the benefit of
25private home instruction or (ii) for which the fundraising
26entity purchases the personal property sold at the events from

 

 

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-90.
5    (29) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-90.
15    (30) Beginning January 1, 2001 and through June 30, 2011,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the MR/DD Community Care Act.

 

 

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

 

 

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1of the 92nd General Assembly, personal property purchased by a
2lessor who leases the property, under a lease of one year or
3longer executed or in effect at the time the lessor would
4otherwise be subject to the tax imposed by this Act, to a
5governmental body that has been issued an active sales tax
6exemption identification number by the Department under
7Section 1g of the Retailers' Occupation Tax Act. If the
8property is leased in a manner that does not qualify for this
9exemption or used in any other nonexempt manner, the lessor
10shall be liable for the tax imposed under this Act or the
11Service Use Tax Act, as the case may be, based on the fair
12market value of the property at the time the nonqualifying use
13occurs. No lessor shall collect or attempt to collect an amount
14(however designated) that purports to reimburse that lessor for
15the tax imposed by this Act or the Service Use Tax Act, as the
16case may be, if the tax has not been paid by the lessor. If a
17lessor improperly collects any such amount from the lessee, the
18lessee shall have a legal right to claim a refund of that
19amount from the lessor. If, however, that amount is not
20refunded to the lessee for any reason, the lessor is liable to
21pay that amount to the Department. This paragraph is exempt
22from the provisions of Section 3-90.
23    (33) On and after July 1, 2003 and through June 30, 2004,
24the use in this State of motor vehicles of the second division
25with a gross vehicle weight in excess of 8,000 pounds and that
26are subject to the commercial distribution fee imposed under

 

 

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1Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
21, 2004 and through June 30, 2005, the use in this State of
3motor vehicles of the second division: (i) with a gross vehicle
4weight rating in excess of 8,000 pounds; (ii) that are subject
5to the commercial distribution fee imposed under Section
63-815.1 of the Illinois Vehicle Code; and (iii) that are
7primarily used for commercial purposes. Through June 30, 2005,
8this exemption applies to repair and replacement parts added
9after the initial purchase of such a motor vehicle if that
10motor vehicle is used in a manner that would qualify for the
11rolling stock exemption otherwise provided for in this Act. For
12purposes of this paragraph, the term "used for commercial
13purposes" means the transportation of persons or property in
14furtherance of any commercial or industrial enterprise,
15whether for-hire or not.
16    (34) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued under
21Title IV of the Environmental Protection Act. This paragraph is
22exempt from the provisions of Section 3-90.
23    (35) Beginning January 1, 2010, materials, parts,
24equipment, components, and furnishings incorporated into or
25upon an aircraft as part of the modification, refurbishment,
26completion, replacement, repair, or maintenance of the

 

 

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1aircraft. This exemption includes consumable supplies used in
2the modification, refurbishment, completion, replacement,
3repair, and maintenance of aircraft, but excludes any
4materials, parts, equipment, components, and consumable
5supplies used in the modification, replacement, repair, and
6maintenance of aircraft engines or power plants, whether such
7engines or power plants are installed or uninstalled upon any
8such aircraft. "Consumable supplies" include, but are not
9limited to, adhesive, tape, sandpaper, general purpose
10lubricants, cleaning solution, latex gloves, and protective
11films. This exemption applies only to those organizations that
12(i) hold an Air Agency Certificate and are empowered to operate
13an approved repair station by the Federal Aviation
14Administration, (ii) have a Class IV Rating, and (iii) conduct
15operations in accordance with Part 145 of the Federal Aviation
16Regulations. The exemption does not include aircraft operated
17by a commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part 129
19of the Federal Aviation Regulations.
20    (36) Tangible personal property purchased by a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt instruments
3issued by the public-facilities corporation in connection with
4the development of the municipal convention hall. This
5exemption includes existing public-facilities corporations as
6provided in Section 11-65-25 of the Illinois Municipal Code.
7This paragraph is exempt from the provisions of Section 3-90.
8    (37) From August 15th through November 15th of each year
9beginning in 2012, propane used for agricultural purposes. This
10paragraph is exempt from the provisions of Section 3-90.
11(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
12eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1396-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
147-2-10.)
 
15    Section 10. The Service Use Tax Act is amended by changing
16Section 3-5 as follows:
 
17    (35 ILCS 110/3-5)
18    Sec. 3-5. Exemptions. Use of the following tangible
19personal property is exempt from the tax imposed by this Act:
20    (1) Personal property purchased from a corporation,
21society, association, foundation, institution, or
22organization, other than a limited liability company, that is
23organized and operated as a not-for-profit service enterprise
24for the benefit of persons 65 years of age or older if the

 

 

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1personal property was not purchased by the enterprise for the
2purpose of resale by the enterprise.
3    (2) Personal property purchased by a non-profit Illinois
4county fair association for use in conducting, operating, or
5promoting the county fair.
6    (3) Personal property purchased by a not-for-profit arts or
7cultural organization that establishes, by proof required by
8the Department by rule, that it has received an exemption under
9Section 501(c)(3) of the Internal Revenue Code and that is
10organized and operated primarily for the presentation or
11support of arts or cultural programming, activities, or
12services. These organizations include, but are not limited to,
13music and dramatic arts organizations such as symphony
14orchestras and theatrical groups, arts and cultural service
15organizations, local arts councils, visual arts organizations,
16and media arts organizations. On and after the effective date
17of this amendatory Act of the 92nd General Assembly, however,
18an entity otherwise eligible for this exemption shall not make
19tax-free purchases unless it has an active identification
20number issued by the Department.
21    (4) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (5) Until July 1, 2003 and beginning again on September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

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

 

 

HB3245- 20 -LRB097 07940 HLH 48057 b

1required to be licensed and units sold mounted on a motor
2vehicle required to be licensed if the selling price of the
3tender is separately stated.
4    Farm machinery and equipment shall include precision
5farming equipment that is installed or purchased to be
6installed on farm machinery and equipment including, but not
7limited to, tractors, harvesters, sprayers, planters, seeders,
8or spreaders. Precision farming equipment includes, but is not
9limited to, soil testing sensors, computers, monitors,
10software, global positioning and mapping systems, and other
11such equipment.
12    Farm machinery and equipment also includes computers,
13sensors, software, and related equipment used primarily in the
14computer-assisted operation of production agriculture
15facilities, equipment, and activities such as, but not limited
16to, the collection, monitoring, and correlation of animal and
17crop data for the purpose of formulating animal diets and
18agricultural chemicals. This item (7) is exempt from the
19provisions of Section 3-75.
20    (8) Fuel and petroleum products sold to or used by an air
21common carrier, certified by the carrier to be used for
22consumption, shipment, or storage in the conduct of its
23business as an air common carrier, for a flight destined for or
24returning from a location or locations outside the United
25States without regard to previous or subsequent domestic
26stopovers.

 

 

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1    (9) Proceeds of mandatory service charges separately
2stated on customers' bills for the purchase and consumption of
3food and beverages acquired as an incident to the purchase of a
4service from a serviceman, to the extent that the proceeds of
5the service charge are in fact turned over as tips or as a
6substitute for tips to the employees who participate directly
7in preparing, serving, hosting or cleaning up the food or
8beverage function with respect to which the service charge is
9imposed.
10    (10) 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    (11) Proceeds from the sale of photoprocessing machinery
20and equipment, including repair and replacement parts, both new
21and used, including that manufactured on special order,
22certified by the purchaser to be used primarily for
23photoprocessing, and including photoprocessing machinery and
24equipment purchased for lease.
25    (12) Until July 1, 2003, coal exploration, mining,
26offhighway hauling, processing, maintenance, and reclamation

 

 

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1equipment, including replacement parts and equipment, and
2including equipment purchased for lease, but excluding motor
3vehicles required to be registered under the Illinois Vehicle
4Code.
5    (13) Semen used for artificial insemination of livestock
6for direct agricultural production.
7    (14) Horses, or interests in horses, registered with and
8meeting the requirements of any of the Arabian Horse Club
9Registry of America, Appaloosa Horse Club, American Quarter
10Horse Association, United States Trotting Association, or
11Jockey Club, as appropriate, used for purposes of breeding or
12racing for prizes. This item (14) is exempt from the provisions
13of Section 3-75, and the exemption provided for under this item
14(14) applies for all periods beginning May 30, 1995, but no
15claim for credit or refund is allowed on or after the effective
16date of this amendatory Act of the 95th General Assembly for
17such taxes paid during the period beginning May 30, 2000 and
18ending on the effective date of this amendatory Act of the 95th
19General Assembly.
20    (15) Computers and communications equipment utilized for
21any hospital purpose and equipment used in the diagnosis,
22analysis, or treatment of hospital patients purchased by a
23lessor who leases the equipment, under a lease of one year or
24longer executed or in effect at the time the lessor would
25otherwise be subject to the tax imposed by this Act, to a
26hospital that has been issued an active tax exemption

 

 

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

 

 

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1non-qualifying use occurs. No lessor shall collect or attempt
2to collect an amount (however designated) that purports to
3reimburse that lessor for the tax imposed by this Act or the
4Use Tax Act, as the case may be, if the tax has not been paid by
5the lessor. If a lessor improperly collects any such amount
6from the lessee, the lessee shall have a legal right to claim a
7refund of that amount from the lessor. If, however, that amount
8is not refunded to the lessee for any reason, the lessor is
9liable to pay that amount to the Department.
10    (17) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is donated for
13disaster relief to be used in a State or federally declared
14disaster area in Illinois or bordering Illinois by a
15manufacturer or retailer that is registered in this State to a
16corporation, society, association, foundation, or institution
17that has been issued a sales tax exemption identification
18number by the Department that assists victims of the disaster
19who reside within the declared disaster area.
20    (18) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is used in the
23performance of infrastructure repairs in this State, including
24but not limited to municipal roads and streets, access roads,
25bridges, sidewalks, waste disposal systems, water and sewer
26line extensions, water distribution and purification

 

 

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1facilities, storm water drainage and retention facilities, and
2sewage treatment facilities, resulting from a State or
3federally declared disaster in Illinois or bordering Illinois
4when such repairs are initiated on facilities located in the
5declared disaster area within 6 months after the disaster.
6    (19) Beginning July 1, 1999, game or game birds purchased
7at a "game breeding and hunting preserve area" or an "exotic
8game hunting area" as those terms are used in the Wildlife Code
9or at a hunting enclosure approved through rules adopted by the
10Department of Natural Resources. This paragraph is exempt from
11the provisions of Section 3-75.
12    (20) A motor vehicle, as that term is defined in Section
131-146 of the Illinois Vehicle Code, that is donated to a
14corporation, limited liability company, society, association,
15foundation, or institution that is determined by the Department
16to be organized and operated exclusively for educational
17purposes. For purposes of this exemption, "a corporation,
18limited liability company, society, association, foundation,
19or institution organized and operated exclusively for
20educational purposes" means all tax-supported public schools,
21private schools that offer systematic instruction in useful
22branches of learning by methods common to public schools and
23that compare favorably in their scope and intensity with the
24course of study presented in tax-supported schools, and
25vocational or technical schools or institutes organized and
26operated exclusively to provide a course of study of not less

 

 

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1than 6 weeks duration and designed to prepare individuals to
2follow a trade or to pursue a manual, technical, mechanical,
3industrial, business, or commercial occupation.
4    (21) Beginning January 1, 2000, personal property,
5including food, purchased through fundraising events for the
6benefit of a public or private elementary or secondary school,
7a group of those schools, or one or more school districts if
8the events are sponsored by an entity recognized by the school
9district that consists primarily of volunteers and includes
10parents and teachers of the school children. This paragraph
11does not apply to fundraising events (i) for the benefit of
12private home instruction or (ii) for which the fundraising
13entity purchases the personal property sold at the events from
14another individual or entity that sold the property for the
15purpose of resale by the fundraising entity and that profits
16from the sale to the fundraising entity. This paragraph is
17exempt from the provisions of Section 3-75.
18    (22) Beginning January 1, 2000 and through December 31,
192001, new or used automatic vending machines that prepare and
20serve hot food and beverages, including coffee, soup, and other
21items, and replacement parts for these machines. Beginning
22January 1, 2002 and through June 30, 2003, machines and parts
23for machines used in commercial, coin-operated amusement and
24vending business if a use or occupation tax is paid on the
25gross receipts derived from the use of the commercial,
26coin-operated amusement and vending machines. This paragraph

 

 

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1is exempt from the provisions of Section 3-75.
2    (23) Beginning August 23, 2001 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 nonprescription 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    (24) Beginning on the effective date of this amendatory Act
15of the 92nd General Assembly, computers and communications
16equipment utilized for any hospital purpose and equipment used
17in the diagnosis, analysis, or treatment of hospital patients
18purchased by a lessor who leases the equipment, under a lease
19of one year or longer executed or in effect at the time the
20lessor would otherwise be subject to the tax imposed by this
21Act, to a hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of the
23Retailers' Occupation Tax Act. If the equipment is leased in a
24manner that does not qualify for this exemption or is used in
25any other nonexempt manner, the lessor shall be liable for the
26tax imposed under this Act or the Use Tax Act, as the case may

 

 

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

 

 

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1Use Tax Act, as the case may be, if the tax has not been paid by
2the lessor. If a lessor improperly collects any such amount
3from the lessee, the lessee shall have a legal right to claim a
4refund of that amount from the lessor. If, however, that amount
5is not refunded to the lessee for any reason, the lessor is
6liable to pay that amount to the Department. This paragraph is
7exempt from the provisions of Section 3-75.
8    (26) Beginning January 1, 2008, tangible personal property
9used in the construction or maintenance of a community water
10supply, as defined under Section 3.145 of the Environmental
11Protection Act, that is operated by a not-for-profit
12corporation that holds a valid water supply permit issued under
13Title IV of the Environmental Protection Act. This paragraph is
14exempt from the provisions of Section 3-75.
15    (27) Beginning January 1, 2010, materials, parts,
16equipment, components, and furnishings incorporated into or
17upon an aircraft as part of the modification, refurbishment,
18completion, replacement, repair, or maintenance of the
19aircraft. This exemption includes consumable supplies used in
20the modification, refurbishment, completion, replacement,
21repair, and maintenance of aircraft, but excludes any
22materials, parts, equipment, components, and consumable
23supplies used in the modification, replacement, repair, and
24maintenance of aircraft engines or power plants, whether such
25engines or power plants are installed or uninstalled upon any
26such aircraft. "Consumable supplies" include, but are not

 

 

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1limited to, adhesive, tape, sandpaper, general purpose
2lubricants, cleaning solution, latex gloves, and protective
3films. This exemption applies only to those organizations that
4(i) hold an Air Agency Certificate and are empowered to operate
5an approved repair station by the Federal Aviation
6Administration, (ii) have a Class IV Rating, and (iii) conduct
7operations in accordance with Part 145 of the Federal Aviation
8Regulations. The exemption does not include aircraft operated
9by a commercial air carrier providing scheduled passenger air
10service pursuant to authority issued under Part 121 or Part 129
11of the Federal Aviation Regulations.
12    (28) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 3-75.
26    (29) From August 15th through November 15th of each year

 

 

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1beginning in 2012, propane used for agricultural purposes. This
2paragraph is exempt from the provisions of Section 3-75.
3(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
4eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
596-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
67-2-10.)
 
7    Section 15. The Service Occupation Tax Act is amended by
8changing Section 3-5 as follows:
 
9    (35 ILCS 115/3-5)
10    Sec. 3-5. Exemptions. The following tangible personal
11property is exempt from the tax imposed by this Act:
12    (1) Personal property sold by a corporation, society,
13association, foundation, institution, or organization, other
14than a limited liability company, that is organized and
15operated as a not-for-profit service enterprise for the benefit
16of persons 65 years of age or older if the personal property
17was not purchased by the enterprise for the purpose of resale
18by the enterprise.
19    (2) Personal property purchased by a not-for-profit
20Illinois county fair association for use in conducting,
21operating, or promoting the county fair.
22    (3) Personal property purchased by any not-for-profit arts
23or cultural organization that establishes, by proof required by
24the 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    (4) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (5) Until July 1, 2003 and beginning again on September 1,
182004 through August 30, 2014, graphic arts machinery and
19equipment, including repair and replacement parts, both new and
20used, and including that manufactured on special order or
21purchased for lease, certified by the purchaser to be used
22primarily for graphic arts production. Equipment includes
23chemicals or chemicals acting as catalysts but only if the
24chemicals or chemicals acting as catalysts effect a direct and
25immediate change upon a graphic arts product.
26    (6) Personal property sold by a teacher-sponsored student

 

 

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1organization affiliated with an elementary or secondary school
2located in Illinois.
3    (7) Farm machinery and equipment, both new and used,
4including that manufactured on special order, certified by the
5purchaser to be used primarily for production agriculture or
6State or federal agricultural programs, including individual
7replacement parts for the machinery and equipment, including
8machinery and equipment purchased for lease, and including
9implements of husbandry defined in Section 1-130 of the
10Illinois Vehicle Code, farm machinery and agricultural
11chemical and fertilizer spreaders, and nurse wagons required to
12be registered under Section 3-809 of the Illinois Vehicle Code,
13but excluding other motor vehicles required to be registered
14under the Illinois Vehicle Code. Horticultural polyhouses or
15hoop houses used for propagating, growing, or overwintering
16plants shall be considered farm machinery and equipment under
17this item (7). Agricultural chemical tender tanks and dry boxes
18shall include units sold separately from a motor vehicle
19required to be licensed and units sold mounted on a motor
20vehicle required to be licensed if the selling price of the
21tender is separately stated.
22    Farm machinery and equipment shall include precision
23farming equipment that is installed or purchased to be
24installed on farm machinery and equipment including, but not
25limited to, tractors, harvesters, sprayers, planters, seeders,
26or spreaders. Precision farming equipment includes, but is not

 

 

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1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4    Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (7) is exempt from the
11provisions of Section 3-55.
12    (8) Fuel and petroleum products sold to or used by an air
13common carrier, certified by the carrier to be used for
14consumption, shipment, or storage in the conduct of its
15business as an air common carrier, for a flight destined for or
16returning from a location or locations outside the United
17States without regard to previous or subsequent domestic
18stopovers.
19    (9) Proceeds of mandatory service charges separately
20stated on customers' bills for the purchase and consumption of
21food and beverages, to the extent that the proceeds of the
22service charge are in fact turned over as tips or as a
23substitute for tips to the employees who participate directly
24in preparing, serving, hosting or cleaning up the food or
25beverage function with respect to which the service charge is
26imposed.

 

 

HB3245- 35 -LRB097 07940 HLH 48057 b

1    (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of rigs,
3rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
4tubular goods, including casing and drill strings, (iii) pumps
5and pump-jack units, (iv) storage tanks and flow lines, (v) any
6individual replacement part for oil field exploration,
7drilling, and production equipment, and (vi) machinery and
8equipment purchased for lease; but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code.
10    (11) Photoprocessing machinery and equipment, including
11repair and replacement parts, both new and used, including that
12manufactured on special order, certified by the purchaser to be
13used primarily for photoprocessing, and including
14photoprocessing machinery and equipment purchased for lease.
15    (12) Until July 1, 2003, coal exploration, mining,
16offhighway hauling, processing, maintenance, and reclamation
17equipment, including replacement parts and equipment, and
18including equipment purchased for lease, but excluding motor
19vehicles required to be registered under the Illinois Vehicle
20Code.
21    (13) Beginning January 1, 1992 and through June 30, 2011,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft
24drinks and food that has been prepared for immediate
25consumption) and prescription and non-prescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

HB3245- 36 -LRB097 07940 HLH 48057 b

1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or in a licensed facility as defined
6in the MR/DD Community Care Act.
7    (14) Semen used for artificial insemination of livestock
8for direct agricultural production.
9    (15) Horses, or interests in horses, registered with and
10meeting the requirements of any of the Arabian Horse Club
11Registry of America, Appaloosa Horse Club, American Quarter
12Horse Association, United States Trotting Association, or
13Jockey Club, as appropriate, used for purposes of breeding or
14racing for prizes. This item (15) is exempt from the provisions
15of Section 3-55, and the exemption provided for under this item
16(15) applies for all periods beginning May 30, 1995, but no
17claim for credit or refund is allowed on or after January 1,
182008 (the effective date of Public Act 95-88) for such taxes
19paid during the period beginning May 30, 2000 and ending on
20January 1, 2008 (the effective date of Public Act 95-88).
21    (16) Computers and communications equipment utilized for
22any hospital purpose and equipment used in the diagnosis,
23analysis, or treatment of hospital patients sold to a lessor
24who leases the equipment, under a lease of one year or longer
25executed or in effect at the time of the purchase, to a
26hospital that has been issued an active tax exemption

 

 

HB3245- 37 -LRB097 07940 HLH 48057 b

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

 

 

HB3245- 38 -LRB097 07940 HLH 48057 b

1sewage treatment facilities, resulting from a State or
2federally declared disaster in Illinois or bordering Illinois
3when such repairs are initiated on facilities located in the
4declared disaster area within 6 months after the disaster.
5    (20) Beginning July 1, 1999, game or game birds sold at a
6"game breeding and hunting preserve area" or an "exotic game
7hunting area" as those terms are used in the Wildlife Code or
8at a hunting enclosure approved through rules adopted by the
9Department of Natural Resources. This paragraph is exempt from
10the provisions of Section 3-55.
11    (21) A motor vehicle, as that term is defined in Section
121-146 of the Illinois Vehicle Code, that is donated to a
13corporation, limited liability company, society, association,
14foundation, or institution that is determined by the Department
15to be organized and operated exclusively for educational
16purposes. For purposes of this exemption, "a corporation,
17limited liability company, society, association, foundation,
18or institution organized and operated exclusively for
19educational purposes" means all tax-supported public schools,
20private schools that offer systematic instruction in useful
21branches of learning by methods common to public schools and
22that compare favorably in their scope and intensity with the
23course of study presented in tax-supported schools, and
24vocational or technical schools or institutes organized and
25operated exclusively to provide a course of study of not less
26than 6 weeks duration and designed to prepare individuals to

 

 

HB3245- 39 -LRB097 07940 HLH 48057 b

1follow a trade or to pursue a manual, technical, mechanical,
2industrial, business, or commercial occupation.
3    (22) Beginning January 1, 2000, personal property,
4including food, purchased through fundraising events for the
5benefit of a public or private elementary or secondary school,
6a group of those schools, or one or more school districts if
7the events are sponsored by an entity recognized by the school
8district that consists primarily of volunteers and includes
9parents and teachers of the school children. This paragraph
10does not apply to fundraising events (i) for the benefit of
11private home instruction or (ii) for which the fundraising
12entity purchases the personal property sold at the events from
13another individual or entity that sold the property for the
14purpose of resale by the fundraising entity and that profits
15from the sale to the fundraising entity. This paragraph is
16exempt from the provisions of Section 3-55.
17    (23) Beginning January 1, 2000 and through December 31,
182001, new or used automatic vending machines that prepare and
19serve hot food and beverages, including coffee, soup, and other
20items, and replacement parts for these machines. Beginning
21January 1, 2002 and through June 30, 2003, machines and parts
22for machines used in commercial, coin-operated amusement and
23vending business if a use or occupation tax is paid on the
24gross receipts derived from the use of the commercial,
25coin-operated amusement and vending machines. This paragraph
26is exempt from the provisions of Section 3-55.

 

 

HB3245- 40 -LRB097 07940 HLH 48057 b

1    (24) Beginning on the effective date of this amendatory Act
2of the 92nd General Assembly, computers and communications
3equipment utilized for any hospital purpose and equipment used
4in the diagnosis, analysis, or treatment of hospital patients
5sold to a lessor who leases the equipment, under a lease of one
6year or longer executed or in effect at the time of the
7purchase, to a hospital that has been issued an active tax
8exemption identification number by the Department under
9Section 1g of the Retailers' Occupation Tax Act. This paragraph
10is exempt from the provisions of Section 3-55.
11    (25) Beginning on the effective date of this amendatory Act
12of the 92nd General Assembly, personal property sold to a
13lessor who leases the property, under a lease of one year or
14longer executed or in effect at the time of the purchase, to a
15governmental body that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. This paragraph is exempt from
18the provisions of Section 3-55.
19    (26) Beginning on January 1, 2002 and through June 30,
202011, tangible personal property purchased from an Illinois
21retailer by a taxpayer engaged in centralized purchasing
22activities in Illinois who will, upon receipt of the property
23in Illinois, temporarily store the property in Illinois (i) for
24the purpose of subsequently transporting it outside this State
25for use or consumption thereafter solely outside this State or
26(ii) for the purpose of being processed, fabricated, or

 

 

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1manufactured into, attached to, or incorporated into other
2tangible personal property to be transported outside this State
3and thereafter used or consumed solely outside this State. The
4Director of Revenue shall, pursuant to rules adopted in
5accordance with the Illinois Administrative Procedure Act,
6issue a permit to any taxpayer in good standing with the
7Department who is eligible for the exemption under this
8paragraph (26). The permit issued under this paragraph (26)
9shall authorize the holder, to the extent and in the manner
10specified in the rules adopted under this Act, to purchase
11tangible personal property from a retailer exempt from the
12taxes imposed by this Act. Taxpayers shall maintain all
13necessary books and records to substantiate the use and
14consumption of all such tangible personal property outside of
15the State of Illinois.
16    (27) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued under
21Title IV of the Environmental Protection Act. This paragraph is
22exempt from the provisions of Section 3-55.
23    (28) Tangible personal property sold to a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 3-55.
11    (29) Beginning January 1, 2010, materials, parts,
12equipment, components, and furnishings incorporated into or
13upon an aircraft as part of the modification, refurbishment,
14completion, replacement, repair, or maintenance of the
15aircraft. This exemption includes consumable supplies used in
16the modification, refurbishment, completion, replacement,
17repair, and maintenance of aircraft, but excludes any
18materials, parts, equipment, components, and consumable
19supplies used in the modification, replacement, repair, and
20maintenance of aircraft engines or power plants, whether such
21engines or power plants are installed or uninstalled upon any
22such aircraft. "Consumable supplies" include, but are not
23limited to, adhesive, tape, sandpaper, general purpose
24lubricants, cleaning solution, latex gloves, and protective
25films. This exemption applies only to those organizations that
26(i) hold an Air Agency Certificate and are empowered to operate

 

 

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1an approved repair station by the Federal Aviation
2Administration, (ii) have a Class IV Rating, and (iii) conduct
3operations in accordance with Part 145 of the Federal Aviation
4Regulations. The exemption does not include aircraft operated
5by a commercial air carrier providing scheduled passenger air
6service pursuant to authority issued under Part 121 or Part 129
7of the Federal Aviation Regulations.
8    (30) From August 15th through November 15th of each year
9beginning in 2012, propane used for agricultural purposes. This
10paragraph is exempt from the provisions of Section 3-55.
11(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
12eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1396-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
147-2-10.)
 
15    Section 20. The Retailers' Occupation Tax Act is amended by
16changing Section 2-5 as follows:
 
17    (35 ILCS 120/2-5)
18    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
19sale of the following tangible personal property are exempt
20from the tax imposed by this Act:
21    (1) Farm chemicals.
22    (2) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or

 

 

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1State or federal agricultural programs, including individual
2replacement parts for the machinery and equipment, including
3machinery and equipment purchased for lease, and including
4implements of husbandry defined in Section 1-130 of the
5Illinois Vehicle Code, farm machinery and agricultural
6chemical and fertilizer spreaders, and nurse wagons required to
7be registered under Section 3-809 of the Illinois Vehicle Code,
8but excluding other motor vehicles required to be registered
9under the Illinois Vehicle Code. Horticultural polyhouses or
10hoop houses used for propagating, growing, or overwintering
11plants shall be considered farm machinery and equipment under
12this item (2). Agricultural chemical tender tanks and dry boxes
13shall include units sold separately from a motor vehicle
14required to be licensed and units sold mounted on a motor
15vehicle required to be licensed, if the selling price of the
16tender is separately stated.
17    Farm machinery and equipment shall include precision
18farming equipment that is installed or purchased to be
19installed on farm machinery and equipment including, but not
20limited to, tractors, harvesters, sprayers, planters, seeders,
21or spreaders. Precision farming equipment includes, but is not
22limited to, soil testing sensors, computers, monitors,
23software, global positioning and mapping systems, and other
24such equipment.
25    Farm machinery and equipment also includes computers,
26sensors, software, and related equipment used primarily in the

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (7) is exempt from the
6provisions of Section 2-70.
7    (3) Until July 1, 2003, distillation machinery and
8equipment, sold as a unit or kit, assembled or installed by the
9retailer, certified by the user to be used only for the
10production of ethyl alcohol that will be used for consumption
11as motor fuel or as a component of motor fuel for the personal
12use of the user, and not subject to sale or resale.
13    (4) Until July 1, 2003 and beginning again September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product.
22    (5) A motor vehicle of the first division, a motor vehicle
23of the second division that is a self contained motor vehicle
24designed or permanently converted to provide living quarters
25for recreational, camping, or travel use, with direct walk
26through access to the living quarters from the driver's seat,

 

 

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1or a motor vehicle of the second division that is of the van
2configuration designed for the transportation of not less than
37 nor more than 16 passengers, as defined in Section 1-146 of
4the Illinois Vehicle Code, that is used for automobile renting,
5as defined in the Automobile Renting Occupation and Use Tax
6Act. This paragraph is exempt from the provisions of Section
72-70.
8    (6) Personal property sold by a teacher-sponsored student
9organization affiliated with an elementary or secondary school
10located in Illinois.
11    (7) Until July 1, 2003, proceeds of that portion of the
12selling price of a passenger car the sale of which is subject
13to the Replacement Vehicle Tax.
14    (8) Personal property sold to an Illinois county fair
15association for use in conducting, operating, or promoting the
16county fair.
17    (9) Personal property sold to a not-for-profit arts or
18cultural organization that establishes, by proof required by
19the Department by rule, that it has received an exemption under
20Section 501(c)(3) of the Internal Revenue Code and that is
21organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,
24music and dramatic arts organizations such as symphony
25orchestras and theatrical groups, arts and cultural service
26organizations, local arts councils, visual arts organizations,

 

 

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1and media arts organizations. On and after the effective date
2of this amendatory Act of the 92nd General Assembly, however,
3an entity otherwise eligible for this exemption shall not make
4tax-free purchases unless it has an active identification
5number issued by the Department.
6    (10) Personal property sold by a corporation, society,
7association, foundation, institution, or organization, other
8than a limited liability company, that is organized and
9operated as a not-for-profit service enterprise for the benefit
10of persons 65 years of age or older if the personal property
11was not purchased by the enterprise for the purpose of resale
12by the enterprise.
13    (11) Personal property sold to a governmental body, to a
14corporation, society, association, foundation, or institution
15organized and operated exclusively for charitable, religious,
16or educational purposes, or to a not-for-profit corporation,
17society, association, foundation, institution, or organization
18that has no compensated officers or employees and that is
19organized and operated primarily for the recreation of persons
2055 years of age or older. A limited liability company may
21qualify for the exemption under this paragraph only if the
22limited liability company is organized and operated
23exclusively for educational purposes. On and after July 1,
241987, however, no entity otherwise eligible for this exemption
25shall make tax-free purchases unless it has an active
26identification number issued by the Department.

 

 

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1    (12) Tangible personal property sold to interstate
2carriers for hire for use as rolling stock moving in interstate
3commerce or to lessors under leases of one year or longer
4executed or in effect at the time of purchase by interstate
5carriers for hire for use as rolling stock moving in interstate
6commerce and equipment operated by a telecommunications
7provider, licensed as a common carrier by the Federal
8Communications Commission, which is permanently installed in
9or affixed to aircraft moving in interstate commerce.
10    (12-5) On and after July 1, 2003 and through June 30, 2004,
11motor vehicles of the second division with a gross vehicle
12weight in excess of 8,000 pounds that are subject to the
13commercial distribution fee imposed under Section 3-815.1 of
14the Illinois Vehicle Code. Beginning on July 1, 2004 and
15through June 30, 2005, the use in this State of motor vehicles
16of the second division: (i) with a gross vehicle weight rating
17in excess of 8,000 pounds; (ii) that are subject to the
18commercial distribution fee imposed under Section 3-815.1 of
19the Illinois Vehicle Code; and (iii) that are primarily used
20for commercial purposes. Through June 30, 2005, this exemption
21applies to repair and replacement parts added after the initial
22purchase of such a motor vehicle if that motor vehicle is used
23in a manner that would qualify for the rolling stock exemption
24otherwise provided for in this Act. For purposes of this
25paragraph, "used for commercial purposes" means the
26transportation of persons or property in furtherance of any

 

 

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1commercial or industrial enterprise whether for-hire or not.
2    (13) Proceeds from sales to owners, lessors, or shippers of
3tangible personal property that is utilized by interstate
4carriers for hire for use as rolling stock moving in interstate
5commerce and equipment operated by a telecommunications
6provider, licensed as a common carrier by the Federal
7Communications Commission, which is permanently installed in
8or affixed to aircraft moving in interstate commerce.
9    (14) Machinery and equipment that will be used by the
10purchaser, or a lessee of the purchaser, primarily in the
11process of manufacturing or assembling tangible personal
12property for wholesale or retail sale or lease, whether the
13sale or lease is made directly by the manufacturer or by some
14other person, whether the materials used in the process are
15owned by the manufacturer or some other person, or whether the
16sale or lease is made apart from or as an incident to the
17seller's engaging in the service occupation of producing
18machines, tools, dies, jigs, patterns, gauges, or other similar
19items of no commercial value on special order for a particular
20purchaser.
21    (15) Proceeds of mandatory service charges separately
22stated on customers' bills for purchase and consumption of food
23and beverages, to the extent that the proceeds of the service
24charge are in fact turned over as tips or as a substitute for
25tips to the employees who participate directly in preparing,
26serving, hosting or cleaning up the food or beverage function

 

 

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1with respect to which the service charge is imposed.
2    (16) Petroleum products sold to a purchaser if the seller
3is prohibited by federal law from charging tax to the
4purchaser.
5    (17) Tangible personal property sold to a common carrier by
6rail or motor that receives the physical possession of the
7property in Illinois and that transports the property, or
8shares with another common carrier in the transportation of the
9property, out of Illinois on a standard uniform bill of lading
10showing the seller of the property as the shipper or consignor
11of the property to a destination outside Illinois, for use
12outside Illinois.
13    (18) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (19) 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    (20) Photoprocessing machinery and equipment, including

 

 

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1repair and replacement parts, both new and used, including that
2manufactured on special order, certified by the purchaser to be
3used primarily for photoprocessing, and including
4photoprocessing machinery and equipment purchased for lease.
5    (21) Until July 1, 2003, coal exploration, mining,
6offhighway hauling, processing, maintenance, and reclamation
7equipment, including replacement parts and equipment, and
8including equipment purchased for lease, but excluding motor
9vehicles required to be registered under the Illinois Vehicle
10Code.
11    (22) Fuel and petroleum products sold to or used by an air
12carrier, certified by the carrier to be used for consumption,
13shipment, or storage in the conduct of its business as an air
14common carrier, for a flight destined for or returning from a
15location or locations outside the United States without regard
16to previous or subsequent domestic stopovers.
17    (23) A transaction in which the purchase order is received
18by a florist who is located outside Illinois, but who has a
19florist located in Illinois deliver the property to the
20purchaser or the purchaser's donee in Illinois.
21    (24) Fuel consumed or used in the operation of ships,
22barges, or vessels that are used primarily in or for the
23transportation of property or the conveyance of persons for
24hire on rivers bordering on this State if the fuel is delivered
25by the seller to the purchaser's barge, ship, or vessel while
26it is afloat upon that bordering river.

 

 

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1    (25) Except as provided in item (25-5) of this Section, a
2motor vehicle sold in this State to a nonresident even though
3the motor vehicle is delivered to the nonresident in this
4State, if the motor vehicle is not to be titled in this State,
5and if a drive-away permit is issued to the motor vehicle as
6provided in Section 3-603 of the Illinois Vehicle Code or if
7the nonresident purchaser has vehicle registration plates to
8transfer to the motor vehicle upon returning to his or her home
9state. The issuance of the drive-away permit or having the
10out-of-state registration plates to be transferred is prima
11facie evidence that the motor vehicle will not be titled in
12this State.
13    (25-5) The exemption under item (25) does not apply if the
14state in which the motor vehicle will be titled does not allow
15a reciprocal exemption for a motor vehicle sold and delivered
16in that state to an Illinois resident but titled in Illinois.
17The tax collected under this Act on the sale of a motor vehicle
18in this State to a resident of another state that does not
19allow a reciprocal exemption shall be imposed at a rate equal
20to the state's rate of tax on taxable property in the state in
21which the purchaser is a resident, except that the tax shall
22not exceed the tax that would otherwise be imposed under this
23Act. At the time of the sale, the purchaser shall execute a
24statement, signed under penalty of perjury, of his or her
25intent to title the vehicle in the state in which the purchaser
26is a resident within 30 days after the sale and of the fact of

 

 

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1the payment to the State of Illinois of tax in an amount
2equivalent to the state's rate of tax on taxable property in
3his or her state of residence and shall submit the statement to
4the appropriate tax collection agency in his or her state of
5residence. In addition, the retailer must retain a signed copy
6of the statement in his or her records. Nothing in this item
7shall be construed to require the removal of the vehicle from
8this state following the filing of an intent to title the
9vehicle in the purchaser's state of residence if the purchaser
10titles the vehicle in his or her state of residence within 30
11days after the date of sale. The tax collected under this Act
12in accordance with this item (25-5) shall be proportionately
13distributed as if the tax were collected at the 6.25% general
14rate imposed under this Act.
15    (25-7) Beginning on July 1, 2007, no tax is imposed under
16this Act on the sale of an aircraft, as defined in Section 3 of
17the Illinois Aeronautics Act, if all of the following
18conditions are met:
19        (1) the aircraft leaves this State within 15 days after
20    the later of either the issuance of the final billing for
21    the sale of the aircraft, or the authorized approval for
22    return to service, completion of the maintenance record
23    entry, and completion of the test flight and ground test
24    for inspection, as required by 14 C.F.R. 91.407;
25        (2) the aircraft is not based or registered in this
26    State after the sale of the aircraft; and

 

 

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1        (3) the seller retains in his or her books and records
2    and provides to the Department a signed and dated
3    certification from the purchaser, on a form prescribed by
4    the Department, certifying that the requirements of this
5    item (25-7) are met. The certificate must also include the
6    name and address of the purchaser, the address of the
7    location where the aircraft is to be titled or registered,
8    the address of the primary physical location of the
9    aircraft, and other information that the Department may
10    reasonably require.
11    For purposes of this item (25-7):
12    "Based in this State" means hangared, stored, or otherwise
13used, excluding post-sale customizations as defined in this
14Section, for 10 or more days in each 12-month period
15immediately following the date of the sale of the aircraft.
16    "Registered in this State" means an aircraft registered
17with the Department of Transportation, Aeronautics Division,
18or titled or registered with the Federal Aviation
19Administration to an address located in this State.
20    This paragraph (25-7) is exempt from the provisions of
21Section 2-70.
22    (26) Semen used for artificial insemination of livestock
23for direct agricultural production.
24    (27) Horses, or interests in horses, registered with and
25meeting the requirements of any of the Arabian Horse Club
26Registry of America, Appaloosa Horse Club, American Quarter

 

 

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1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (27) is exempt from the provisions
4of Section 2-70, and the exemption provided for under this item
5(27) applies for all periods beginning May 30, 1995, but no
6claim for credit or refund is allowed on or after January 1,
72008 (the effective date of Public Act 95-88) for such taxes
8paid during the period beginning May 30, 2000 and ending on
9January 1, 2008 (the effective date of Public Act 95-88).
10    (28) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients sold to a lessor
13who leases the equipment, under a lease of one year or longer
14executed or in effect at the time of the purchase, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17this Act.
18    (29) Personal property sold to a lessor who leases the
19property, under a lease of one year or longer executed or in
20effect at the time of the purchase, to a governmental body that
21has been issued an active tax exemption identification number
22by the Department under Section 1g of this Act.
23    (30) Beginning with taxable years ending on or after
24December 31, 1995 and ending with taxable years ending on or
25before December 31, 2004, personal property that is donated for
26disaster relief to be used in a State or federally declared

 

 

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1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (31) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in the
10performance of infrastructure repairs in this State, including
11but not limited to municipal roads and streets, access roads,
12bridges, sidewalks, waste disposal systems, water and sewer
13line extensions, water distribution and purification
14facilities, storm water drainage and retention facilities, and
15sewage treatment facilities, resulting from a State or
16federally declared disaster in Illinois or bordering Illinois
17when such repairs are initiated on facilities located in the
18declared disaster area within 6 months after the disaster.
19    (32) Beginning July 1, 1999, game or game birds sold at a
20"game breeding and hunting preserve area" or an "exotic game
21hunting area" as those terms are used in the Wildlife Code or
22at a hunting enclosure approved through rules adopted by the
23Department of Natural Resources. This paragraph is exempt from
24the provisions of Section 2-70.
25    (33) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the Department
3to be organized and operated exclusively for educational
4purposes. For purposes of this exemption, "a corporation,
5limited liability company, society, association, foundation,
6or institution organized and operated exclusively for
7educational purposes" means all tax-supported public schools,
8private schools that offer systematic instruction in useful
9branches of learning by methods common to public schools and
10that compare favorably in their scope and intensity with the
11course of study presented in tax-supported schools, and
12vocational or technical schools or institutes organized and
13operated exclusively to provide a course of study of not less
14than 6 weeks duration and designed to prepare individuals to
15follow a trade or to pursue a manual, technical, mechanical,
16industrial, business, or commercial occupation.
17    (34) Beginning January 1, 2000, personal property,
18including food, purchased through fundraising events for the
19benefit of a public or private elementary or secondary school,
20a group of those schools, or one or more school districts if
21the events are sponsored by an entity recognized by the school
22district that consists primarily of volunteers and includes
23parents and teachers of the school children. This paragraph
24does not apply to fundraising events (i) for the benefit of
25private home instruction or (ii) for which the fundraising
26entity purchases the personal property sold at the events from

 

 

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 2-70.
5    (35) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 2-70.
15    (35-5) Beginning August 23, 2001 and through June 30, 2011,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or a licensed facility as defined in
26the MR/DD Community Care Act.

 

 

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1    (36) Beginning August 2, 2001, computers and
2communications equipment utilized for any hospital purpose and
3equipment used in the diagnosis, analysis, or treatment of
4hospital patients sold to a lessor who leases the equipment,
5under a lease of one year or longer executed or in effect at
6the time of the purchase, to a hospital that has been issued an
7active tax exemption identification number by the Department
8under Section 1g of this Act. This paragraph is exempt from the
9provisions of Section 2-70.
10    (37) Beginning August 2, 2001, personal property sold to a
11lessor who leases the property, under a lease of one year or
12longer executed or in effect at the time of the purchase, to a
13governmental body that has been issued an active tax exemption
14identification number by the Department under Section 1g of
15this Act. This paragraph is exempt from the provisions of
16Section 2-70.
17    (38) Beginning on January 1, 2002 and through June 30,
182011, tangible personal property purchased from an Illinois
19retailer by a taxpayer engaged in centralized purchasing
20activities in Illinois who will, upon receipt of the property
21in Illinois, temporarily store the property in Illinois (i) for
22the purpose of subsequently transporting it outside this State
23for use or consumption thereafter solely outside this State or
24(ii) for the purpose of being processed, fabricated, or
25manufactured into, attached to, or incorporated into other
26tangible personal property to be transported outside this State

 

 

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1and thereafter used or consumed solely outside this State. The
2Director of Revenue shall, pursuant to rules adopted in
3accordance with the Illinois Administrative Procedure Act,
4issue a permit to any taxpayer in good standing with the
5Department who is eligible for the exemption under this
6paragraph (38). The permit issued under this paragraph (38)
7shall authorize the holder, to the extent and in the manner
8specified in the rules adopted under this Act, to purchase
9tangible personal property from a retailer exempt from the
10taxes imposed by this Act. Taxpayers shall maintain all
11necessary books and records to substantiate the use and
12consumption of all such tangible personal property outside of
13the State of Illinois.
14    (39) Beginning January 1, 2008, tangible personal property
15used in the construction or maintenance of a community water
16supply, as defined under Section 3.145 of the Environmental
17Protection Act, that is operated by a not-for-profit
18corporation that holds a valid water supply permit issued under
19Title IV of the Environmental Protection Act. This paragraph is
20exempt from the provisions of Section 2-70.
21    (40) Beginning January 1, 2010, materials, parts,
22equipment, components, and furnishings incorporated into or
23upon an aircraft as part of the modification, refurbishment,
24completion, replacement, repair, or maintenance of the
25aircraft. This exemption includes consumable supplies used in
26the modification, refurbishment, completion, replacement,

 

 

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1repair, and maintenance of aircraft, but excludes any
2materials, parts, equipment, components, and consumable
3supplies used in the modification, replacement, repair, and
4maintenance of aircraft engines or power plants, whether such
5engines or power plants are installed or uninstalled upon any
6such aircraft. "Consumable supplies" include, but are not
7limited to, adhesive, tape, sandpaper, general purpose
8lubricants, cleaning solution, latex gloves, and protective
9films. This exemption applies only to those organizations that
10(i) hold an Air Agency Certificate and are empowered to operate
11an approved repair station by the Federal Aviation
12Administration, (ii) have a Class IV Rating, and (iii) conduct
13operations in accordance with Part 145 of the Federal Aviation
14Regulations. The exemption does not include aircraft operated
15by a commercial air carrier providing scheduled passenger air
16service pursuant to authority issued under Part 121 or Part 129
17of the Federal Aviation Regulations.
18    (41) Tangible personal property sold to a
19public-facilities corporation, as described in Section
2011-65-10 of the Illinois Municipal Code, for purposes of
21constructing or furnishing a municipal convention hall, but
22only if the legal title to the municipal convention hall is
23transferred to the municipality without any further
24consideration by or on behalf of the municipality at the time
25of the completion of the municipal convention hall or upon the
26retirement or redemption of any bonds or other debt instruments

 

 

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1issued by the public-facilities corporation in connection with
2the development of the municipal convention hall. This
3exemption includes existing public-facilities corporations as
4provided in Section 11-65-25 of the Illinois Municipal Code.
5This paragraph is exempt from the provisions of Section 2-70.
6    (42) From August 15th through November 15th of each year
7beginning in 2012, propane used for agricultural purposes. This
8paragraph is exempt from the provisions of Section 2-70.
9(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
10eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;
1195-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
127-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
13eff. 7-2-10.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.