97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1768

 

Introduced 2/9/2011, by Sen. Bill Brady

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-55  from Ch. 120, par. 439.3-55
35 ILCS 110/3-45  from Ch. 120, par. 439.33-45
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use, Service Use, Service Occupation, and Retailers' Occupation Tax Acts. Extends the exemption for centralized purchasing activities from June 30, 2011 to June 30, 2016. Effective immediately.


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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
53-55 as follows:
 
6    (35 ILCS 105/3-55)  (from Ch. 120, par. 439.3-55)
7    Sec. 3-55. Multistate exemption. To prevent actual or
8likely multistate taxation, the tax imposed by this Act does
9not apply to the use of tangible personal property in this
10State under the following circumstances:
11    (a) The use, in this State, of tangible personal property
12acquired outside this State by a nonresident individual and
13brought into this State by the individual for his or her own
14use while temporarily within this State or while passing
15through this State.
16    (b) The use, in this State, of tangible personal property
17by an interstate carrier for hire as rolling stock moving in
18interstate commerce or by lessors under a lease of one year or
19longer executed or in effect at the time of purchase of
20tangible personal property by interstate carriers for-hire for
21use as rolling stock moving in interstate commerce as long as
22so used by the interstate carriers for-hire, and equipment
23operated by a telecommunications provider, licensed as a common

 

 

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1carrier by the Federal Communications Commission, which is
2permanently installed in or affixed to aircraft moving in
3interstate commerce.
4    (c) The use, in this State, by owners, lessors, or shippers
5of tangible personal property that is utilized by interstate
6carriers for hire for use as rolling stock moving in interstate
7commerce as long as so used by the interstate carriers for
8hire, and equipment operated by a telecommunications provider,
9licensed as a common carrier by the Federal Communications
10Commission, which is permanently installed in or affixed to
11aircraft moving in interstate commerce.
12    (d) The use, in this State, of tangible personal property
13that is acquired outside this State and caused to be brought
14into this State by a person who has already paid a tax in
15another State in respect to the sale, purchase, or use of that
16property, to the extent of the amount of the tax properly due
17and paid in the other State.
18    (e) The temporary storage, in this State, of tangible
19personal property that is acquired outside this State and that,
20after being brought into this State and stored here
21temporarily, is used solely outside this State or is physically
22attached to or incorporated into other tangible personal
23property that is used solely outside this State, or is altered
24by converting, fabricating, manufacturing, printing,
25processing, or shaping, and, as altered, is used solely outside
26this State.

 

 

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1    (f) The temporary storage in this State of building
2materials and fixtures that are acquired either in this State
3or outside this State by an Illinois registered combination
4retailer and construction contractor, and that the purchaser
5thereafter uses outside this State by incorporating that
6property into real estate located outside this State.
7    (g) The use or purchase of tangible personal property by a
8common carrier by rail or motor that receives the physical
9possession of the property in Illinois, and that transports the
10property, or shares with another common carrier in the
11transportation of the property, out of Illinois on a standard
12uniform bill of lading showing the seller of the property as
13the shipper or consignor of the property to a destination
14outside Illinois, for use outside Illinois.
15    (h) Except as provided in subsection (h-1), the use, in
16this State, of a motor vehicle that was sold in this State to a
17nonresident, even though the motor vehicle is delivered to the
18nonresident in this State, if the motor vehicle is not to be
19titled in this State, and if a drive-away permit is issued to
20the motor vehicle as provided in Section 3-603 of the Illinois
21Vehicle Code or if the nonresident purchaser has vehicle
22registration plates to transfer to the motor vehicle upon
23returning to his or her home state. The issuance of the
24drive-away permit or having the out-of-state registration
25plates to be transferred shall be prima facie evidence that the
26motor vehicle will not be titled in this State.

 

 

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1    (h-1) The exemption under subsection (h) does not apply if
2the state in which the motor vehicle will be titled does not
3allow a reciprocal exemption for the use in that state of a
4motor vehicle sold and delivered in that state to an Illinois
5resident but titled in Illinois. The tax collected under this
6Act on the sale of a motor vehicle in this State to a resident
7of another state that does not allow a reciprocal exemption
8shall be imposed at a rate equal to the state's rate of tax on
9taxable property in the state in which the purchaser is a
10resident, except that the tax shall not exceed the tax that
11would otherwise be imposed under this Act. At the time of the
12sale, the purchaser shall execute a statement, signed under
13penalty of perjury, of his or her intent to title the vehicle
14in the state in which the purchaser is a resident within 30
15days after the sale and of the fact of the payment to the State
16of Illinois of tax in an amount equivalent to the state's rate
17of tax on taxable property in his or her state of residence and
18shall submit the statement to the appropriate tax collection
19agency in his or her state of residence. In addition, the
20retailer must retain a signed copy of the statement in his or
21her records. Nothing in this subsection shall be construed to
22require the removal of the vehicle from this state following
23the filing of an intent to title the vehicle in the purchaser's
24state of residence if the purchaser titles the vehicle in his
25or her state of residence within 30 days after the date of
26sale. The tax collected under this Act in accordance with this

 

 

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1subsection (h-1) shall be proportionately distributed as if the
2tax were collected at the 6.25% general rate imposed under this
3Act.
4    (h-2) The following exemptions apply with respect to
5certain aircraft:
6        (1) Beginning on July 1, 2007, no tax is imposed under
7    this Act on the purchase of an aircraft, as defined in
8    Section 3 of the Illinois Aeronautics Act, if all of the
9    following conditions are met:
10            (A) the aircraft leaves this State within 15 days
11        after the later of either the issuance of the final
12        billing for the purchase of the aircraft or the
13        authorized approval for return to service, completion
14        of the maintenance record entry, and completion of the
15        test flight and ground test for inspection, as required
16        by 14 C.F.R. 91.407;
17            (B) the aircraft is not based or registered in this
18        State after the purchase of the aircraft; and
19            (C) the purchaser provides the Department with a
20        signed and dated certification, on a form prescribed by
21        the Department, certifying that the requirements of
22        this item (1) are met. The certificate must also
23        include the name and address of the purchaser, the
24        address of the location where the aircraft is to be
25        titled or registered, the address of the primary
26        physical location of the aircraft, and other

 

 

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1        information that the Department may reasonably
2        require.
3        (2) Beginning on July 1, 2007, no tax is imposed under
4    this Act on the use of an aircraft, as defined in Section 3
5    of the Illinois Aeronautics Act, that is temporarily
6    located in this State for the purpose of a prepurchase
7    evaluation if all of the following conditions are met:
8            (A) the aircraft is not based or registered in this
9        State after the prepurchase evaluation; and
10            (B) the purchaser provides the Department with a
11        signed and dated certification, on a form prescribed by
12        the Department, certifying that the requirements of
13        this item (2) are met. The certificate must also
14        include the name and address of the purchaser, the
15        address of the location where the aircraft is to be
16        titled or registered, the address of the primary
17        physical location of the aircraft, and other
18        information that the Department may reasonably
19        require.
20        (3) Beginning on July 1, 2007, no tax is imposed under
21    this Act on the use of an aircraft, as defined in Section 3
22    of the Illinois Aeronautics Act, that is temporarily
23    located in this State for the purpose of a post-sale
24    customization if all of the following conditions are met:
25            (A) the aircraft leaves this State within 15 days
26        after the authorized approval for return to service,

 

 

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1        completion of the maintenance record entry, and
2        completion of the test flight and ground test for
3        inspection, as required by 14 C.F.R. 91.407;
4            (B) the aircraft is not based or registered in this
5        State either before or after the post-sale
6        customization; and
7            (C) the purchaser provides the Department with a
8        signed and dated certification, on a form prescribed by
9        the Department, certifying that the requirements of
10        this item (3) are met. The certificate must also
11        include the name and address of the purchaser, the
12        address of the location where the aircraft is to be
13        titled or registered, the address of the primary
14        physical location of the aircraft, and other
15        information that the Department may reasonably
16        require.
17    If tax becomes due under this subsection (h-2) because of
18the purchaser's use of the aircraft in this State, the
19purchaser shall file a return with the Department and pay the
20tax on the fair market value of the aircraft. This return and
21payment of the tax must be made no later than 30 days after the
22aircraft is used in a taxable manner in this State. The tax is
23based on the fair market value of the aircraft on the date that
24it is first used in a taxable manner in this State.
25    For purposes of this subsection (h-2):
26    "Based in this State" means hangared, stored, or otherwise

 

 

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1used, excluding post-sale customizations as defined in this
2Section, for 10 or more days in each 12-month period
3immediately following the date of the sale of the aircraft.
4    "Post-sale customization" means any improvement,
5maintenance, or repair that is performed on an aircraft
6following a transfer of ownership of the aircraft.
7    "Prepurchase evaluation" means an examination of an
8aircraft to provide a potential purchaser with information
9relevant to the potential purchase.
10    "Registered in this State" means an aircraft registered
11with the Department of Transportation, Aeronautics Division,
12or titled or registered with the Federal Aviation
13Administration to an address located in this State.
14    This subsection (h-2) is exempt from the provisions of
15Section 3-90.
16    (i) Beginning July 1, 1999, the use, in this State, of fuel
17acquired outside this State and brought into this State in the
18fuel supply tanks of locomotives engaged in freight hauling and
19passenger service for interstate commerce. This subsection is
20exempt from the provisions of Section 3-90.
21    (j) Beginning on January 1, 2002 and through June 30, 2016
222011, the use of tangible personal property purchased from an
23Illinois retailer by a taxpayer engaged in centralized
24purchasing activities in Illinois who will, upon receipt of the
25property in Illinois, temporarily store the property in
26Illinois (i) for the purpose of subsequently transporting it

 

 

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1outside this State for use or consumption thereafter solely
2outside this State or (ii) for the purpose of being processed,
3fabricated, or manufactured into, attached to, or incorporated
4into other tangible personal property to be transported outside
5this State and thereafter used or consumed solely outside this
6State. The Director of Revenue shall, pursuant to rules adopted
7in accordance with the Illinois Administrative Procedure Act,
8issue a permit to any taxpayer in good standing with the
9Department who is eligible for the exemption under this
10subsection (j). The permit issued under this subsection (j)
11shall authorize the holder, to the extent and in the manner
12specified in the rules adopted under this Act, to purchase
13tangible personal property from a retailer exempt from the
14taxes imposed by this Act. Taxpayers shall maintain all
15necessary books and records to substantiate the use and
16consumption of all such tangible personal property outside of
17the State of Illinois.
18(Source: P.A. 94-1002, eff. 7-3-06; 95-304, eff. 8-20-07.)
 
19    Section 10. The Service Use Tax Act is amended by changing
20Section 3-45 as follows:
 
21    (35 ILCS 110/3-45)  (from Ch. 120, par. 439.33-45)
22    Sec. 3-45. Multistate exemption. To prevent actual or
23likely multistate taxation, the tax imposed by this Act does
24not apply to the use of tangible personal property in this

 

 

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1State under the following circumstances:
2    (a) The use, in this State, of property acquired outside
3this State by a nonresident individual and brought into this
4State by the individual for his or her own use while
5temporarily within this State or while passing through this
6State.
7    (b) The use, in this State, of property that is acquired
8outside this State and that is moved into this State for use as
9rolling stock moving in interstate commerce.
10    (c) The use, in this State, of property that is acquired
11outside this State and caused to be brought into this State by
12a person who has already paid a tax in another state in respect
13to the sale, purchase, or use of that property, to the extent
14of the amount of the tax properly due and paid in the other
15state.
16    (d) The temporary storage, in this State, of property that
17is acquired outside this State and that after being brought
18into this State and stored here temporarily, is used solely
19outside this State or is physically attached to or incorporated
20into other property that is used solely outside this State, or
21is altered by converting, fabricating, manufacturing,
22printing, processing, or shaping, and, as altered, is used
23solely outside this State.
24    (e) Beginning July 1, 1999, the use, in this State, of fuel
25acquired outside this State and brought into this State in the
26fuel supply tanks of locomotives engaged in freight hauling and

 

 

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1passenger service for interstate commerce. This subsection is
2exempt from the provisions of Section 3-75.
3    (f) Beginning on January 1, 2002 and through June 30, 2016
42011, the use of tangible personal property purchased from an
5Illinois retailer by a taxpayer engaged in centralized
6purchasing activities in Illinois who will, upon receipt of the
7property in Illinois, temporarily store the property in
8Illinois (i) for the purpose of subsequently transporting it
9outside this State for use or consumption thereafter solely
10outside this State or (ii) for the purpose of being processed,
11fabricated, or manufactured into, attached to, or incorporated
12into other tangible personal property to be transported outside
13this State and thereafter used or consumed solely outside this
14State. The Director of Revenue shall, pursuant to rules adopted
15in accordance with the Illinois Administrative Procedure Act,
16issue a permit to any taxpayer in good standing with the
17Department who is eligible for the exemption under this
18subsection (f). The permit issued under this subsection (f)
19shall authorize the holder, to the extent and in the manner
20specified in the rules adopted under this Act, to purchase
21tangible personal property from a retailer exempt from the
22taxes imposed by this Act. Taxpayers shall maintain all
23necessary books and records to substantiate the use and
24consumption of all such tangible personal property outside of
25the State of Illinois.
26(Source: P.A. 93-23, eff. 6-20-03; 94-1002, eff. 7-3-06.)
 

 

 

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1    Section 15. The Service Occupation Tax Act is amended by
2changing Section 3-5 as follows:
 
3    (35 ILCS 115/3-5)
4    Sec. 3-5. Exemptions. The following tangible personal
5property is exempt from the tax imposed by this Act:
6    (1) 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    (2) Personal property purchased by a not-for-profit
14Illinois county fair association for use in conducting,
15operating, or promoting the county fair.
16    (3) Personal property purchased by any not-for-profit arts
17or cultural organization that establishes, by proof required by
18the Department by rule, that it has received an exemption under
19Section 501(c)(3) of the Internal Revenue Code and that is
20organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service

 

 

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1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after the effective date
3of this amendatory Act of the 92nd General Assembly, however,
4an entity otherwise eligible for this exemption shall not make
5tax-free purchases unless it has an active identification
6number issued by the Department.
7    (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (5) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new and
14used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product.
20    (6) Personal property sold by a teacher-sponsored student
21organization affiliated with an elementary or secondary school
22located in Illinois.
23    (7) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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

 

 

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (7) is exempt from the
5provisions of Section 3-55.
6    (8) Fuel and petroleum products sold to or used by an air
7common carrier, certified by the carrier to be used for
8consumption, shipment, or storage in the conduct of its
9business as an air common carrier, for a flight destined for or
10returning from a location or locations outside the United
11States without regard to previous or subsequent domestic
12stopovers.
13    (9) Proceeds of mandatory service charges separately
14stated on customers' bills for the purchase and consumption of
15food and beverages, to the extent that the proceeds of the
16service charge are in fact turned over as tips or as a
17substitute for tips to the employees who participate directly
18in preparing, serving, hosting or cleaning up the food or
19beverage function with respect to which the service charge is
20imposed.
21    (10) Until July 1, 2003, oil field exploration, drilling,
22and production equipment, including (i) rigs and parts of rigs,
23rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
24tubular goods, including casing and drill strings, (iii) pumps
25and pump-jack units, (iv) storage tanks and flow lines, (v) any
26individual replacement part for oil field exploration,

 

 

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1drilling, and production equipment, and (vi) machinery and
2equipment purchased for lease; but excluding motor vehicles
3required to be registered under the Illinois Vehicle Code.
4    (11) Photoprocessing machinery and equipment, including
5repair and replacement parts, both new and used, including that
6manufactured on special order, certified by the purchaser to be
7used primarily for photoprocessing, and including
8photoprocessing machinery and equipment purchased for lease.
9    (12) Until July 1, 2003, coal exploration, mining,
10offhighway hauling, processing, maintenance, and reclamation
11equipment, including replacement parts and equipment, and
12including equipment purchased for lease, but excluding motor
13vehicles required to be registered under the Illinois Vehicle
14Code.
15    (13) Beginning January 1, 1992 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 non-prescription 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    (14) Semen used for artificial insemination of livestock
2for direct agricultural production.
3    (15) Horses, or interests in horses, registered with and
4meeting the requirements of any of the Arabian Horse Club
5Registry of America, Appaloosa Horse Club, American Quarter
6Horse Association, United States Trotting Association, or
7Jockey Club, as appropriate, used for purposes of breeding or
8racing for prizes. This item (15) is exempt from the provisions
9of Section 3-55, and the exemption provided for under this item
10(15) applies for all periods beginning May 30, 1995, but no
11claim for credit or refund is allowed on or after January 1,
122008 (the effective date of Public Act 95-88) for such taxes
13paid during the period beginning May 30, 2000 and ending on
14January 1, 2008 (the effective date of Public Act 95-88).
15    (16) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients sold to a lessor
18who leases the equipment, under a lease of one year or longer
19executed or in effect at the time of the purchase, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of the
22Retailers' Occupation Tax Act.
23    (17) Personal property sold to a lessor who leases the
24property, under a lease of one year or longer executed or in
25effect at the time of the purchase, to a governmental body that
26has been issued an active tax exemption identification number

 

 

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

 

 

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1hunting area" as those terms are used in the Wildlife Code or
2at a hunting enclosure approved through rules adopted by the
3Department of Natural Resources. This paragraph is exempt from
4the provisions of Section 3-55.
5    (21) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the Department
9to be organized and operated exclusively for educational
10purposes. For purposes of this exemption, "a corporation,
11limited liability company, society, association, foundation,
12or institution organized and operated exclusively for
13educational purposes" means all tax-supported public schools,
14private schools that offer systematic instruction in useful
15branches of learning by methods common to public schools and
16that compare favorably in their scope and intensity with the
17course of study presented in tax-supported schools, and
18vocational or technical schools or institutes organized and
19operated exclusively to provide a course of study of not less
20than 6 weeks duration and designed to prepare individuals to
21follow a trade or to pursue a manual, technical, mechanical,
22industrial, business, or commercial occupation.
23    (22) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

 

 

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1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 3-55.
11    (23) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and other
14items, and replacement parts for these machines. Beginning
15January 1, 2002 and through June 30, 2003, machines and parts
16for machines used in commercial, coin-operated amusement and
17vending business if a use or occupation tax is paid on the
18gross receipts derived from the use of the commercial,
19coin-operated amusement and vending machines. This paragraph
20is exempt from the provisions of Section 3-55.
21    (24) Beginning on the effective date of this amendatory Act
22of the 92nd General Assembly, computers and communications
23equipment utilized for any hospital purpose and equipment used
24in the diagnosis, analysis, or treatment of hospital patients
25sold to a lessor who leases the equipment, under a lease of one
26year or longer executed or in effect at the time of the

 

 

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1purchase, to a hospital that has been issued an active tax
2exemption identification number by the Department under
3Section 1g of the Retailers' Occupation Tax Act. This paragraph
4is exempt from the provisions of Section 3-55.
5    (25) Beginning on the effective date of this amendatory Act
6of the 92nd General Assembly, personal property sold to a
7lessor who leases the property, under a lease of one year or
8longer executed or in effect at the time of the purchase, to a
9governmental body that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. This paragraph is exempt from
12the provisions of Section 3-55.
13    (26) Beginning on January 1, 2002 and through June 30, 2016
142011, tangible personal property purchased from an Illinois
15retailer by a taxpayer engaged in centralized purchasing
16activities in Illinois who will, upon receipt of the property
17in Illinois, temporarily store the property in Illinois (i) for
18the purpose of subsequently transporting it outside this State
19for use or consumption thereafter solely outside this State or
20(ii) for the purpose of being processed, fabricated, or
21manufactured into, attached to, or incorporated into other
22tangible personal property to be transported outside this State
23and thereafter used or consumed solely outside this State. The
24Director of Revenue shall, pursuant to rules adopted in
25accordance with the Illinois Administrative Procedure Act,
26issue a permit to any taxpayer in good standing with the

 

 

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1Department who is eligible for the exemption under this
2paragraph (26). The permit issued under this paragraph (26)
3shall authorize the holder, to the extent and in the manner
4specified in the rules adopted under this Act, to purchase
5tangible personal property from a retailer exempt from the
6taxes imposed by this Act. Taxpayers shall maintain all
7necessary books and records to substantiate the use and
8consumption of all such tangible personal property outside of
9the State of Illinois.
10    (27) Beginning January 1, 2008, tangible personal property
11used in the construction or maintenance of a community water
12supply, as defined under Section 3.145 of the Environmental
13Protection Act, that is operated by a not-for-profit
14corporation that holds a valid water supply permit issued under
15Title IV of the Environmental Protection Act. This paragraph is
16exempt from the provisions of Section 3-55.
17    (28) Tangible personal property sold to a
18public-facilities corporation, as described in Section
1911-65-10 of the Illinois Municipal Code, for purposes of
20constructing or furnishing a municipal convention hall, but
21only if the legal title to the municipal convention hall is
22transferred to the municipality without any further
23consideration by or on behalf of the municipality at the time
24of the completion of the municipal convention hall or upon the
25retirement or redemption of any bonds or other debt instruments
26issued by the public-facilities corporation in connection with

 

 

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1the development of the municipal convention hall. This
2exemption includes existing public-facilities corporations as
3provided in Section 11-65-25 of the Illinois Municipal Code.
4This paragraph is exempt from the provisions of Section 3-55.
5    (29) Beginning January 1, 2010, materials, parts,
6equipment, components, and furnishings incorporated into or
7upon an aircraft as part of the modification, refurbishment,
8completion, replacement, repair, or maintenance of the
9aircraft. This exemption includes consumable supplies used in
10the modification, refurbishment, completion, replacement,
11repair, and maintenance of aircraft, but excludes any
12materials, parts, equipment, components, and consumable
13supplies used in the modification, replacement, repair, and
14maintenance of aircraft engines or power plants, whether such
15engines or power plants are installed or uninstalled upon any
16such aircraft. "Consumable supplies" include, but are not
17limited to, adhesive, tape, sandpaper, general purpose
18lubricants, cleaning solution, latex gloves, and protective
19films. This exemption applies only to those organizations that
20(i) hold an Air Agency Certificate and are empowered to operate
21an approved repair station by the Federal Aviation
22Administration, (ii) have a Class IV Rating, and (iii) conduct
23operations in accordance with Part 145 of the Federal Aviation
24Regulations. The exemption does not include aircraft operated
25by a commercial air carrier providing scheduled passenger air
26service pursuant to authority issued under Part 121 or Part 129

 

 

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1of the Federal Aviation Regulations.
2(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
3eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
496-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
57-2-10.)
 
6    Section 20. The Retailers' Occupation Tax Act is amended by
7changing Section 2-5 as follows:
 
8    (35 ILCS 120/2-5)
9    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
10sale of the following tangible personal property are exempt
11from the tax imposed by this Act:
12    (1) Farm chemicals.
13    (2) Farm machinery and equipment, both new and used,
14including that manufactured on special order, certified by the
15purchaser to be used primarily for production agriculture or
16State or federal agricultural programs, including individual
17replacement parts for the machinery and equipment, including
18machinery and equipment purchased for lease, and including
19implements of husbandry defined in Section 1-130 of the
20Illinois Vehicle Code, farm machinery and agricultural
21chemical and fertilizer spreaders, and nurse wagons required to
22be registered under Section 3-809 of the Illinois Vehicle Code,
23but excluding other motor vehicles required to be registered
24under the Illinois Vehicle Code. Horticultural polyhouses or

 

 

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1hoop houses used for propagating, growing, or overwintering
2plants shall be considered farm machinery and equipment under
3this item (2). Agricultural chemical tender tanks and dry boxes
4shall include units sold separately from a motor vehicle
5required to be licensed and units sold mounted on a motor
6vehicle required to be licensed, if the selling price of the
7tender is separately stated.
8    Farm machinery and equipment shall include precision
9farming equipment that is installed or purchased to be
10installed on farm machinery and equipment including, but not
11limited to, tractors, harvesters, sprayers, planters, seeders,
12or spreaders. Precision farming equipment includes, but is not
13limited to, soil testing sensors, computers, monitors,
14software, global positioning and mapping systems, and other
15such equipment.
16    Farm machinery and equipment also includes computers,
17sensors, software, and related equipment used primarily in the
18computer-assisted operation of production agriculture
19facilities, equipment, and activities such as, but not limited
20to, the collection, monitoring, and correlation of animal and
21crop data for the purpose of formulating animal diets and
22agricultural chemicals. This item (7) is exempt from the
23provisions of Section 2-70.
24    (3) Until July 1, 2003, distillation machinery and
25equipment, sold as a unit or kit, assembled or installed by the
26retailer, certified by the user to be used only for the

 

 

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1production of ethyl alcohol that will be used for consumption
2as motor fuel or as a component of motor fuel for the personal
3use of the user, and not subject to sale or resale.
4    (4) Until July 1, 2003 and beginning again September 1,
52004 through August 30, 2014, graphic arts machinery and
6equipment, including repair and replacement parts, both new and
7used, and including that manufactured on special order or
8purchased for lease, certified by the purchaser to be used
9primarily for graphic arts production. Equipment includes
10chemicals or chemicals acting as catalysts but only if the
11chemicals or chemicals acting as catalysts effect a direct and
12immediate change upon a graphic arts product.
13    (5) A motor vehicle of the first division, a motor vehicle
14of the second division that is a self contained motor vehicle
15designed or permanently converted to provide living quarters
16for recreational, camping, or travel use, with direct walk
17through access to the living quarters from the driver's seat,
18or a motor vehicle of the second division that is of the van
19configuration designed for the transportation of not less than
207 nor more than 16 passengers, as defined in Section 1-146 of
21the Illinois Vehicle Code, that is used for automobile renting,
22as defined in the Automobile Renting Occupation and Use Tax
23Act. This paragraph is exempt from the provisions of Section
242-70.
25    (6) Personal property sold by a teacher-sponsored student
26organization affiliated with an elementary or secondary school

 

 

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1located in Illinois.
2    (7) Until July 1, 2003, proceeds of that portion of the
3selling price of a passenger car the sale of which is subject
4to the Replacement Vehicle Tax.
5    (8) Personal property sold to an Illinois county fair
6association for use in conducting, operating, or promoting the
7county fair.
8    (9) Personal property sold to a not-for-profit arts or
9cultural organization that establishes, by proof required by
10the Department by rule, that it has received an exemption under
11Section 501(c)(3) of the Internal Revenue Code and that is
12organized and operated primarily for the presentation or
13support of arts or cultural programming, activities, or
14services. These organizations include, but are not limited to,
15music and dramatic arts organizations such as symphony
16orchestras and theatrical groups, arts and cultural service
17organizations, local arts councils, visual arts organizations,
18and media arts organizations. On and after the effective date
19of this amendatory Act of the 92nd General Assembly, however,
20an entity otherwise eligible for this exemption shall not make
21tax-free purchases unless it has an active identification
22number issued by the Department.
23    (10) Personal property sold by a corporation, society,
24association, foundation, institution, or organization, other
25than a limited liability company, that is organized and
26operated as a not-for-profit service enterprise for the benefit

 

 

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1of persons 65 years of age or older if the personal property
2was not purchased by the enterprise for the purpose of resale
3by the enterprise.
4    (11) Personal property sold to a governmental body, to a
5corporation, society, association, foundation, or institution
6organized and operated exclusively for charitable, religious,
7or educational purposes, or to a not-for-profit corporation,
8society, association, foundation, institution, or organization
9that has no compensated officers or employees and that is
10organized and operated primarily for the recreation of persons
1155 years of age or older. A limited liability company may
12qualify for the exemption under this paragraph only if the
13limited liability company is organized and operated
14exclusively for educational purposes. On and after July 1,
151987, however, no entity otherwise eligible for this exemption
16shall make tax-free purchases unless it has an active
17identification number issued by the Department.
18    (12) Tangible personal property sold to interstate
19carriers for hire for use as rolling stock moving in interstate
20commerce or to lessors under leases of one year or longer
21executed or in effect at the time of purchase by interstate
22carriers for hire for use as rolling stock moving in interstate
23commerce and equipment operated by a telecommunications
24provider, licensed as a common carrier by the Federal
25Communications Commission, which is permanently installed in
26or affixed to aircraft moving in interstate commerce.

 

 

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1    (12-5) On and after July 1, 2003 and through June 30, 2004,
2motor vehicles of the second division with a gross vehicle
3weight in excess of 8,000 pounds that are subject to the
4commercial distribution fee imposed under Section 3-815.1 of
5the Illinois Vehicle Code. Beginning on July 1, 2004 and
6through June 30, 2005, the use in this State of motor vehicles
7of the second division: (i) with a gross vehicle weight rating
8in excess of 8,000 pounds; (ii) that are subject to the
9commercial distribution fee imposed under Section 3-815.1 of
10the Illinois Vehicle Code; and (iii) that are primarily used
11for commercial purposes. Through June 30, 2005, this exemption
12applies to repair and replacement parts added after the initial
13purchase of such a motor vehicle if that motor vehicle is used
14in a manner that would qualify for the rolling stock exemption
15otherwise provided for in this Act. For purposes of this
16paragraph, "used for commercial purposes" means the
17transportation of persons or property in furtherance of any
18commercial or industrial enterprise whether for-hire or not.
19    (13) Proceeds from sales to owners, lessors, or shippers of
20tangible personal property that is utilized by interstate
21carriers for hire for use as rolling stock moving in interstate
22commerce and equipment operated by a telecommunications
23provider, licensed as a common carrier by the Federal
24Communications Commission, which is permanently installed in
25or affixed to aircraft moving in interstate commerce.
26    (14) Machinery and equipment that will be used by the

 

 

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1purchaser, or a lessee of the purchaser, primarily in the
2process of manufacturing or assembling tangible personal
3property for wholesale or retail sale or lease, whether the
4sale or lease is made directly by the manufacturer or by some
5other person, whether the materials used in the process are
6owned by the manufacturer or some other person, or whether the
7sale or lease is made apart from or as an incident to the
8seller's engaging in the service occupation of producing
9machines, tools, dies, jigs, patterns, gauges, or other similar
10items of no commercial value on special order for a particular
11purchaser.
12    (15) Proceeds of mandatory service charges separately
13stated on customers' bills for purchase and consumption of food
14and beverages, to the extent that the proceeds of the service
15charge are in fact turned over as tips or as a substitute for
16tips to the employees who participate directly in preparing,
17serving, hosting or cleaning up the food or beverage function
18with respect to which the service charge is imposed.
19    (16) Petroleum products sold to a purchaser if the seller
20is prohibited by federal law from charging tax to the
21purchaser.
22    (17) Tangible personal property sold to a common carrier by
23rail or motor that receives the physical possession of the
24property in Illinois and that transports the property, or
25shares with another common carrier in the transportation of the
26property, out of Illinois on a standard uniform bill of lading

 

 

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1showing the seller of the property as the shipper or consignor
2of the property to a destination outside Illinois, for use
3outside Illinois.
4    (18) Legal tender, currency, medallions, or gold or silver
5coinage issued by the State of Illinois, the government of the
6United States of America, or the government of any foreign
7country, and bullion.
8    (19) Until July 1 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of rigs,
10rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
11tubular goods, including casing and drill strings, (iii) pumps
12and pump-jack units, (iv) storage tanks and flow lines, (v) any
13individual replacement part for oil field exploration,
14drilling, and production equipment, and (vi) machinery and
15equipment purchased for lease; but excluding motor vehicles
16required to be registered under the Illinois Vehicle Code.
17    (20) Photoprocessing machinery and equipment, including
18repair and replacement parts, both new and used, including that
19manufactured on special order, certified by the purchaser to be
20used primarily for photoprocessing, and including
21photoprocessing machinery and equipment purchased for lease.
22    (21) Until July 1, 2003, coal exploration, mining,
23offhighway hauling, processing, maintenance, and reclamation
24equipment, including replacement parts and equipment, and
25including equipment purchased for lease, but excluding motor
26vehicles required to be registered under the Illinois Vehicle

 

 

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1Code.
2    (22) Fuel and petroleum products sold to or used by an air
3carrier, certified by the carrier to be used for consumption,
4shipment, or storage in the conduct of its business as an air
5common carrier, for a flight destined for or returning from a
6location or locations outside the United States without regard
7to previous or subsequent domestic stopovers.
8    (23) A transaction in which the purchase order is received
9by a florist who is located outside Illinois, but who has a
10florist located in Illinois deliver the property to the
11purchaser or the purchaser's donee in Illinois.
12    (24) Fuel consumed or used in the operation of ships,
13barges, or vessels that are used primarily in or for the
14transportation of property or the conveyance of persons for
15hire on rivers bordering on this State if the fuel is delivered
16by the seller to the purchaser's barge, ship, or vessel while
17it is afloat upon that bordering river.
18    (25) Except as provided in item (25-5) of this Section, a
19motor vehicle sold in this State to a nonresident even though
20the motor vehicle is delivered to the nonresident in this
21State, if the motor vehicle is not to be titled in this State,
22and if a drive-away permit is issued to the motor vehicle as
23provided in Section 3-603 of the Illinois Vehicle Code or if
24the nonresident purchaser has vehicle registration plates to
25transfer to the motor vehicle upon returning to his or her home
26state. The issuance of the drive-away permit or having the

 

 

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1out-of-state registration plates to be transferred is prima
2facie evidence that the motor vehicle will not be titled in
3this State.
4    (25-5) The exemption under item (25) does not apply if the
5state in which the motor vehicle will be titled does not allow
6a reciprocal exemption for a motor vehicle sold and delivered
7in that state to an Illinois resident but titled in Illinois.
8The tax collected under this Act on the sale of a motor vehicle
9in this State to a resident of another state that does not
10allow a reciprocal exemption shall be imposed at a rate equal
11to the state's rate of tax on taxable property in the state in
12which the purchaser is a resident, except that the tax shall
13not exceed the tax that would otherwise be imposed under this
14Act. At the time of the sale, the purchaser shall execute a
15statement, signed under penalty of perjury, of his or her
16intent to title the vehicle in the state in which the purchaser
17is a resident within 30 days after the sale and of the fact of
18the payment to the State of Illinois of tax in an amount
19equivalent to the state's rate of tax on taxable property in
20his or her state of residence and shall submit the statement to
21the appropriate tax collection agency in his or her state of
22residence. In addition, the retailer must retain a signed copy
23of the statement in his or her records. Nothing in this item
24shall be construed to require the removal of the vehicle from
25this state following the filing of an intent to title the
26vehicle in the purchaser's state of residence if the purchaser

 

 

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1titles the vehicle in his or her state of residence within 30
2days after the date of sale. The tax collected under this Act
3in accordance with this item (25-5) shall be proportionately
4distributed as if the tax were collected at the 6.25% general
5rate imposed under this Act.
6    (25-7) Beginning on July 1, 2007, no tax is imposed under
7this Act on the sale of an aircraft, as defined in Section 3 of
8the Illinois Aeronautics Act, if all of the following
9conditions are met:
10        (1) the aircraft leaves this State within 15 days after
11    the later of either the issuance of the final billing for
12    the sale of the aircraft, or the authorized approval for
13    return to service, completion of the maintenance record
14    entry, and completion of the test flight and ground test
15    for inspection, as required by 14 C.F.R. 91.407;
16        (2) the aircraft is not based or registered in this
17    State after the sale of the aircraft; and
18        (3) the seller retains in his or her books and records
19    and provides to the Department a signed and dated
20    certification from the purchaser, on a form prescribed by
21    the Department, certifying that the requirements of this
22    item (25-7) are met. The certificate must also include the
23    name and address of the purchaser, the address of the
24    location where the aircraft is to be titled or registered,
25    the address of the primary physical location of the
26    aircraft, and other information that the Department may

 

 

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1    reasonably require.
2    For purposes of this item (25-7):
3    "Based in this State" means hangared, stored, or otherwise
4used, excluding post-sale customizations as defined in this
5Section, for 10 or more days in each 12-month period
6immediately following the date of the sale of the aircraft.
7    "Registered in this State" means an aircraft registered
8with the Department of Transportation, Aeronautics Division,
9or titled or registered with the Federal Aviation
10Administration to an address located in this State.
11    This paragraph (25-7) is exempt from the provisions of
12Section 2-70.
13    (26) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (27) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (27) is exempt from the provisions
21of Section 2-70, and the exemption provided for under this item
22(27) applies for all periods beginning May 30, 1995, but no
23claim for credit or refund is allowed on or after January 1,
242008 (the effective date of Public Act 95-88) for such taxes
25paid during the period beginning May 30, 2000 and ending on
26January 1, 2008 (the effective date of Public Act 95-88).

 

 

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

 

 

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1performance of infrastructure repairs in this State, including
2but not limited to municipal roads and streets, access roads,
3bridges, sidewalks, waste disposal systems, water and sewer
4line extensions, water distribution and purification
5facilities, storm water drainage and retention facilities, and
6sewage treatment facilities, resulting from a State or
7federally declared disaster in Illinois or bordering Illinois
8when such repairs are initiated on facilities located in the
9declared disaster area within 6 months after the disaster.
10    (32) Beginning July 1, 1999, game or game birds sold at a
11"game breeding and hunting preserve area" or an "exotic game
12hunting area" as those terms are used in the Wildlife Code or
13at a hunting enclosure approved through rules adopted by the
14Department of Natural Resources. This paragraph is exempt from
15the provisions of Section 2-70.
16    (33) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

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1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (34) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 2-70.
22    (35) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

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1for machines used in commercial, coin-operated amusement and
2vending business if a use or occupation tax is paid on the
3gross receipts derived from the use of the commercial,
4coin-operated amusement and vending machines. This paragraph
5is exempt from the provisions of Section 2-70.
6    (35-5) Beginning August 23, 2001 and through June 30, 2011,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages, soft
9drinks, and food that has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or a licensed facility as defined in
17the MR/DD Community Care Act.
18    (36) Beginning August 2, 2001, computers and
19communications equipment utilized for any hospital purpose and
20equipment used in the diagnosis, analysis, or treatment of
21hospital patients sold to a lessor who leases the equipment,
22under a lease of one year or longer executed or in effect at
23the time of the purchase, to a hospital that has been issued an
24active tax exemption identification number by the Department
25under Section 1g of this Act. This paragraph is exempt from the
26provisions of Section 2-70.

 

 

SB1768- 40 -LRB097 07937 HLH 48054 b

1    (37) Beginning August 2, 2001, personal property sold to a
2lessor who leases the property, under a lease of one year or
3longer executed or in effect at the time of the purchase, to a
4governmental body that has been issued an active tax exemption
5identification number by the Department under Section 1g of
6this Act. This paragraph is exempt from the provisions of
7Section 2-70.
8    (38) Beginning on January 1, 2002 and through June 30, 2016
92011, tangible personal property purchased from an Illinois
10retailer by a taxpayer engaged in centralized purchasing
11activities in Illinois who will, upon receipt of the property
12in Illinois, temporarily store the property in Illinois (i) for
13the purpose of subsequently transporting it outside this State
14for use or consumption thereafter solely outside this State or
15(ii) for the purpose of being processed, fabricated, or
16manufactured into, attached to, or incorporated into other
17tangible personal property to be transported outside this State
18and thereafter used or consumed solely outside this State. The
19Director of Revenue shall, pursuant to rules adopted in
20accordance with the Illinois Administrative Procedure Act,
21issue a permit to any taxpayer in good standing with the
22Department who is eligible for the exemption under this
23paragraph (38). The permit issued under this paragraph (38)
24shall authorize the holder, to the extent and in the manner
25specified in the rules adopted under this Act, to purchase
26tangible personal property from a retailer exempt from the

 

 

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1taxes imposed by this Act. Taxpayers shall maintain all
2necessary books and records to substantiate the use and
3consumption of all such tangible personal property outside of
4the State of Illinois.
5    (39) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued under
10Title IV of the Environmental Protection Act. This paragraph is
11exempt from the provisions of Section 2-70.
12    (40) Beginning January 1, 2010, materials, parts,
13equipment, components, and furnishings incorporated into or
14upon an aircraft as part of the modification, refurbishment,
15completion, replacement, repair, or maintenance of the
16aircraft. This exemption includes consumable supplies used in
17the modification, refurbishment, completion, replacement,
18repair, and maintenance of aircraft, but excludes any
19materials, parts, equipment, components, and consumable
20supplies used in the modification, replacement, repair, and
21maintenance of aircraft engines or power plants, whether such
22engines or power plants are installed or uninstalled upon any
23such aircraft. "Consumable supplies" include, but are not
24limited to, adhesive, tape, sandpaper, general purpose
25lubricants, cleaning solution, latex gloves, and protective
26films. This exemption applies only to those organizations that

 

 

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1(i) hold an Air Agency Certificate and are empowered to operate
2an approved repair station by the Federal Aviation
3Administration, (ii) have a Class IV Rating, and (iii) conduct
4operations in accordance with Part 145 of the Federal Aviation
5Regulations. The exemption does not include aircraft operated
6by a commercial air carrier providing scheduled passenger air
7service pursuant to authority issued under Part 121 or Part 129
8of the Federal Aviation Regulations.
9    (41) Tangible personal property sold to a
10public-facilities corporation, as described in Section
1111-65-10 of the Illinois Municipal Code, for purposes of
12constructing or furnishing a municipal convention hall, but
13only if the legal title to the municipal convention hall is
14transferred to the municipality without any further
15consideration by or on behalf of the municipality at the time
16of the completion of the municipal convention hall or upon the
17retirement or redemption of any bonds or other debt instruments
18issued by the public-facilities corporation in connection with
19the development of the municipal convention hall. This
20exemption includes existing public-facilities corporations as
21provided in Section 11-65-25 of the Illinois Municipal Code.
22This paragraph is exempt from the provisions of Section 2-70.
23(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
24eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;
2595-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
267-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,

 

 

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1eff. 7-2-10.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.