Full Text of SB0401 97th General Assembly
SB0401enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Use Tax Act is amended by changing Section | 5 | | 3-55 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 | 8 | | likely multistate taxation, the tax imposed by this
Act
does | 9 | | not apply to the use of
tangible personal property in this | 10 | | State under the following circumstances:
| 11 | | (a) The use, in this State, of tangible personal property | 12 | | acquired
outside this State by a nonresident individual and | 13 | | brought into this
State by the individual for his or her own | 14 | | use while temporarily within
this State or while passing | 15 | | through this State.
| 16 | | (b) The use, in this State, of tangible personal
property | 17 | | by an
interstate carrier for hire as rolling stock moving in | 18 | | interstate
commerce or by lessors under a lease of one year or | 19 | | longer executed or
in effect at the time of purchase of | 20 | | tangible personal property by
interstate carriers for-hire for | 21 | | use as rolling stock moving in interstate
commerce as long as | 22 | | so used by the interstate carriers for-hire, and equipment
| 23 | | operated by a telecommunications provider, licensed as a common |
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| 1 | | carrier by the
Federal Communications Commission, which is | 2 | | permanently installed in or affixed
to aircraft moving in | 3 | | interstate commerce.
| 4 | | (c) The use, in this State, by owners, lessors,
or
shippers
| 5 | | of tangible personal property that is utilized by interstate | 6 | | carriers
for hire for use as rolling stock moving in interstate | 7 | | commerce as
long as so used by the interstate carriers for | 8 | | hire, and equipment
operated by a telecommunications provider, | 9 | | licensed as a common carrier by the
Federal Communications | 10 | | Commission, which is permanently installed in or affixed
to | 11 | | aircraft moving in interstate commerce.
| 12 | | (d) The use, in this State, of tangible personal property | 13 | | that is
acquired outside this State and caused to be brought | 14 | | into this State by
a person who has already paid a tax in | 15 | | another State in respect to the
sale, purchase, or use of that | 16 | | property, to the extent of the amount of
the tax properly due | 17 | | and paid in the other State.
| 18 | | (e) The temporary storage, in this State, of tangible | 19 | | personal
property that is acquired outside this State and that, | 20 | | after
being brought into this State and stored here | 21 | | temporarily, is used
solely outside this State or is physically | 22 | | attached to or incorporated
into other tangible personal | 23 | | property that is used solely outside this
State, or is altered | 24 | | by converting, fabricating, manufacturing, printing,
| 25 | | processing, or shaping, and, as altered, is used solely outside | 26 | | this State.
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| 1 | | (f) The temporary storage in this State of building | 2 | | materials and
fixtures that are acquired either in this State | 3 | | or outside this State
by an Illinois registered combination | 4 | | retailer and construction contractor, and
that the purchaser | 5 | | thereafter uses outside this State by incorporating that
| 6 | | property into real estate located outside this State.
| 7 | | (g) The use or purchase of tangible personal property by a | 8 | | common carrier
by rail or motor that receives the physical | 9 | | possession of the property in
Illinois, and
that transports the | 10 | | property, or shares with another common carrier in the
| 11 | | transportation of the property, out of Illinois on a standard | 12 | | uniform bill of
lading showing the seller of the property as | 13 | | the shipper or consignor of the
property to a destination | 14 | | outside Illinois, for use outside Illinois.
| 15 | | (h) Except as provided in subsection (h-1), the use, in | 16 | | this State, of a motor vehicle that was sold in
this State to a | 17 | | nonresident, even though the motor vehicle is
delivered to the | 18 | | nonresident in this State, if the motor vehicle
is not to be | 19 | | titled in this State, and if a
drive-away permit is issued to | 20 | | the motor vehicle as
provided in Section 3-603 of the Illinois | 21 | | Vehicle Code or if the
nonresident purchaser has vehicle | 22 | | registration plates to transfer
to the motor vehicle upon | 23 | | returning to his or her home state.
The issuance of the | 24 | | drive-away permit or having the
out-of-state
registration | 25 | | plates to be transferred shall be prima facie evidence
that the | 26 | | motor vehicle will not be titled in this State.
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| 1 | | (h-1) The exemption under subsection (h) does not apply if | 2 | | the state in which the motor vehicle will be titled does not | 3 | | allow a reciprocal exemption for the use in that state of a | 4 | | motor vehicle sold and delivered in that state to an Illinois | 5 | | resident but titled in Illinois. The tax collected under this | 6 | | Act on the sale of a motor vehicle in this State to a resident | 7 | | of another state that does not allow a reciprocal exemption | 8 | | shall be imposed at a rate equal to the state's rate of tax on | 9 | | taxable property in the state in which the purchaser is a | 10 | | resident, except that the tax shall not exceed the tax that | 11 | | would otherwise be imposed under this Act. At the time of the | 12 | | sale, the purchaser shall execute a statement, signed under | 13 | | penalty of perjury, of his or her intent to title the vehicle | 14 | | in the state in which the purchaser is a resident within 30 | 15 | | days after the sale and of the fact of the payment to the State | 16 | | of Illinois of tax in an amount equivalent to the state's rate | 17 | | of tax on taxable property in his or her state of residence and | 18 | | shall submit the statement to the appropriate tax collection | 19 | | agency in his or her state of residence. In addition, the | 20 | | retailer must retain a signed copy of the statement in his or | 21 | | her records. Nothing in this subsection shall be construed to | 22 | | require the removal of the vehicle from this state following | 23 | | the filing of an intent to title the vehicle in the purchaser's | 24 | | state of residence if the purchaser titles the vehicle in his | 25 | | or her state of residence within 30 days after the date of | 26 | | sale. The tax collected under this Act in accordance with this |
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| 1 | | subsection (h-1) shall be proportionately distributed as if the | 2 | | tax were collected at the 6.25% general rate imposed under this | 3 | | Act.
| 4 | | (h-2) The following exemptions apply with respect to | 5 | | certain 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 | 18 | | the purchaser's use of the aircraft in this State, the | 19 | | purchaser shall file a return with the Department and pay the | 20 | | tax on the fair market value of the aircraft. This return and | 21 | | payment of the tax must be made no later than 30 days after the | 22 | | aircraft is used in a taxable manner in this State. The tax is | 23 | | based on the fair market value of the aircraft on the date that | 24 | | it 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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| 1 | | used, excluding post-sale customizations as defined in this | 2 | | Section, for 10 or more days in each 12-month period | 3 | | immediately following the date of the sale of the aircraft. | 4 | | "Post-sale customization" means any improvement, | 5 | | maintenance, or repair that is performed on an aircraft | 6 | | following a transfer of ownership of the aircraft. | 7 | | "Prepurchase evaluation" means an examination of an | 8 | | aircraft to provide a potential purchaser with information | 9 | | relevant to the potential purchase. | 10 | | "Registered in this State" means an aircraft registered | 11 | | with the Department of Transportation, Aeronautics Division, | 12 | | or titled or registered with the Federal Aviation | 13 | | Administration to an address located in this State.
| 14 | | This subsection (h-2) is exempt from the provisions of | 15 | | Section 3-90.
| 16 | | (i) Beginning July 1, 1999, the use, in this State, of fuel | 17 | | acquired
outside this State and brought into this State in the | 18 | | fuel supply
tanks of locomotives engaged in freight hauling and | 19 | | passenger service for
interstate commerce. This subsection is | 20 | | exempt from the provisions of Section
3-90.
| 21 | | (j) Beginning on January 1, 2002 and through June 30, 2016 | 22 | | 2011 , the use of tangible personal property
purchased from an | 23 | | Illinois retailer by a taxpayer engaged in centralized
| 24 | | purchasing activities in Illinois who will, upon receipt of the | 25 | | property in
Illinois, temporarily store the property in | 26 | | Illinois (i) for the purpose of
subsequently transporting it |
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| 1 | | outside this State for use or consumption
thereafter solely | 2 | | outside this State or (ii) for the purpose of being
processed, | 3 | | fabricated, or manufactured into, attached to, or incorporated | 4 | | into
other tangible personal property to be transported outside | 5 | | this State and
thereafter used or consumed solely outside this | 6 | | State. The Director of Revenue
shall, pursuant to rules adopted | 7 | | in accordance with the Illinois Administrative
Procedure Act, | 8 | | issue a permit to any taxpayer in good standing with the
| 9 | | Department who is eligible for the exemption under this | 10 | | subsection (j). The
permit issued under this subsection (j) | 11 | | shall authorize the holder, to the
extent and in the manner | 12 | | specified in the rules adopted under this Act, to
purchase | 13 | | tangible personal property from a retailer exempt from the | 14 | | taxes
imposed by this Act. Taxpayers shall maintain all | 15 | | necessary books and records
to substantiate the use and | 16 | | consumption of all such tangible personal property
outside of | 17 | | the 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 | 20 | | Section 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 | 23 | | likely multistate
taxation, the tax imposed by this Act does | 24 | | not apply
to the use of tangible personal property in this |
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| 1 | | State under the following
circumstances:
| 2 | | (a) The use, in this State, of property acquired outside | 3 | | this State
by a nonresident individual and brought into this | 4 | | State by the
individual for his or her own use while | 5 | | temporarily within this State or
while passing through this | 6 | | State.
| 7 | | (b) The use, in this State, of property that is
acquired | 8 | | outside
this State and that is moved into this State for use as | 9 | | rolling stock
moving in interstate commerce.
| 10 | | (c) The use, in this State, of property that is acquired | 11 | | outside
this State and caused to be brought into this State by | 12 | | a person who has
already paid a tax in another state in respect | 13 | | to the sale, purchase, or
use of that property, to the extent | 14 | | of the amount of the tax properly
due and paid in the other | 15 | | state.
| 16 | | (d) The temporary storage, in this State, of property that | 17 | | is
acquired outside this State and that after being brought | 18 | | into
this State and stored here temporarily, is used solely | 19 | | outside this
State or is physically attached to or incorporated | 20 | | into other property
that is used solely outside this State, or | 21 | | is altered by converting,
fabricating, manufacturing, | 22 | | printing, processing, or shaping, and, as
altered, is used | 23 | | solely outside this State.
| 24 | | (e) Beginning July 1, 1999, the use, in this State, of fuel | 25 | | acquired
outside this State and brought into this State in the | 26 | | fuel supply
tanks of locomotives engaged in freight hauling and |
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| 1 | | passenger service for
interstate commerce. This subsection is | 2 | | exempt from the provisions of Section
3-75.
| 3 | | (f) Beginning on January 1, 2002 and through June 30, 2016 | 4 | | 2011 , the use of tangible personal property
purchased from an | 5 | | Illinois retailer by a taxpayer engaged in centralized
| 6 | | purchasing activities in Illinois who will, upon receipt of the | 7 | | property in
Illinois, temporarily store the property in | 8 | | Illinois (i) for the purpose of
subsequently transporting it | 9 | | outside this State for use or consumption
thereafter solely | 10 | | outside this State or (ii) for the purpose of being
processed, | 11 | | fabricated, or manufactured into, attached to, or incorporated | 12 | | into
other tangible personal property to be transported outside | 13 | | this State and
thereafter used or consumed solely outside this | 14 | | State. The Director of Revenue
shall, pursuant to rules adopted | 15 | | in accordance with the Illinois Administrative
Procedure Act, | 16 | | issue a permit to any taxpayer in good standing with the
| 17 | | Department who is eligible for the exemption under this | 18 | | subsection (f). The
permit issued under this subsection (f) | 19 | | shall authorize the holder, to the
extent and in the manner | 20 | | specified in the rules adopted under this Act, to
purchase | 21 | | tangible personal property from a retailer exempt from the | 22 | | taxes
imposed by this Act. Taxpayers shall maintain all | 23 | | necessary books and records
to substantiate the use and | 24 | | consumption of all such tangible personal property
outside of | 25 | | the 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 | 2 | | changing Section 3-5 as follows:
| 3 | | (35 ILCS 115/3-5)
| 4 | | Sec. 3-5. Exemptions. The following tangible personal | 5 | | property is
exempt from the tax imposed by this Act:
| 6 | | (1) Personal property sold by a corporation, society, | 7 | | association,
foundation, institution, or organization, other | 8 | | than a limited liability
company, that is organized and | 9 | | operated as a not-for-profit service enterprise
for the benefit | 10 | | of persons 65 years of age or older if the personal property
| 11 | | was not purchased by the enterprise for the purpose of resale | 12 | | by the
enterprise.
| 13 | | (2) Personal property purchased by a not-for-profit | 14 | | Illinois county fair
association for use in conducting, | 15 | | operating, or promoting the county fair.
| 16 | | (3) Personal property purchased by any not-for-profit
arts | 17 | | or cultural organization that establishes, by proof required by | 18 | | the
Department by
rule, that it has received an exemption under | 19 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 20 | | organized and operated primarily for the
presentation
or | 21 | | support of arts or cultural programming, activities, or | 22 | | services. These
organizations include, but are not limited to, | 23 | | music and dramatic arts
organizations such as symphony | 24 | | orchestras and theatrical groups, arts and
cultural service |
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| 1 | | organizations, local arts councils, visual arts organizations,
| 2 | | and media arts organizations.
On and after the effective date | 3 | | of this amendatory Act of the 92nd General
Assembly, however, | 4 | | an entity otherwise eligible for this exemption shall not
make | 5 | | tax-free purchases unless it has an active identification | 6 | | number issued by
the Department.
| 7 | | (4) Legal tender, currency, medallions, or gold or silver | 8 | | coinage
issued by the State of Illinois, the government of the | 9 | | United States of
America, or the government of any foreign | 10 | | country, and bullion.
| 11 | | (5) Until July 1, 2003 and beginning again on September 1, | 12 | | 2004 through August 30, 2014, graphic arts machinery and | 13 | | equipment, including
repair and
replacement parts, both new and | 14 | | used, and including that manufactured on
special order or | 15 | | purchased for lease, certified by the purchaser to be used
| 16 | | primarily for graphic arts production.
Equipment includes | 17 | | chemicals or chemicals acting as catalysts but only if
the
| 18 | | chemicals or chemicals acting as catalysts effect a direct and | 19 | | immediate change
upon a graphic arts product.
| 20 | | (6) Personal property sold by a teacher-sponsored student | 21 | | organization
affiliated with an elementary or secondary school | 22 | | located in Illinois.
| 23 | | (7) Farm machinery and equipment, both new and used, | 24 | | including that
manufactured on special order, certified by the | 25 | | purchaser to be used
primarily for production agriculture or | 26 | | State or federal agricultural
programs, including individual |
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| 1 | | replacement parts for the machinery and
equipment, including | 2 | | machinery and equipment purchased for lease,
and including | 3 | | implements of husbandry defined in Section 1-130 of
the | 4 | | Illinois Vehicle Code, farm machinery and agricultural | 5 | | chemical and
fertilizer spreaders, and nurse wagons required to | 6 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 7 | | but
excluding other motor vehicles required to be registered | 8 | | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 9 | | hoop houses used for propagating, growing, or
overwintering | 10 | | plants shall be considered farm machinery and equipment under
| 11 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 12 | | shall include units sold
separately from a motor vehicle | 13 | | required to be licensed and units sold mounted
on a motor | 14 | | vehicle required to be licensed if the selling price of the | 15 | | tender
is separately stated.
| 16 | | Farm machinery and equipment shall include precision | 17 | | farming equipment
that is
installed or purchased to be | 18 | | installed on farm machinery and equipment
including, but not | 19 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 20 | | or spreaders.
Precision farming equipment includes, but is not | 21 | | limited to,
soil testing sensors, computers, monitors, | 22 | | software, global positioning
and mapping systems, and other | 23 | | such equipment.
| 24 | | Farm machinery and equipment also includes computers, | 25 | | sensors, software, and
related equipment used primarily in the
| 26 | | computer-assisted operation of production agriculture |
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| 1 | | facilities, equipment,
and activities such as, but
not limited | 2 | | to,
the collection, monitoring, and correlation of
animal and | 3 | | crop data for the purpose of
formulating animal diets and | 4 | | agricultural chemicals. This item (7) is exempt
from the | 5 | | provisions of
Section 3-55.
| 6 | | (8) Fuel and petroleum products sold to or used by an air | 7 | | common
carrier, certified by the carrier to be used for | 8 | | consumption, shipment,
or storage in the conduct of its | 9 | | business as an air common carrier, for
a flight destined for or | 10 | | returning from a location or locations
outside the United | 11 | | States without regard to previous or subsequent domestic
| 12 | | stopovers.
| 13 | | (9) Proceeds of mandatory service charges separately
| 14 | | stated on customers' bills for the purchase and consumption of | 15 | | food and
beverages, to the extent that the proceeds of the | 16 | | service charge are in fact
turned over as tips or as a | 17 | | substitute for tips to the employees who
participate directly | 18 | | in preparing, serving, hosting or cleaning up the
food or | 19 | | beverage function with respect to which the service charge is | 20 | | imposed.
| 21 | | (10) Until July 1, 2003, oil field exploration, drilling, | 22 | | and production
equipment,
including (i) rigs and parts of rigs, | 23 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 24 | | tubular goods, including casing and
drill strings, (iii) pumps | 25 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 26 | | individual replacement part for oil field exploration,
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| 1 | | drilling, and production equipment, and (vi) machinery and | 2 | | equipment purchased
for lease; but
excluding motor vehicles | 3 | | required to be registered under the Illinois
Vehicle Code.
| 4 | | (11) Photoprocessing machinery and equipment, including | 5 | | repair and
replacement parts, both new and used, including that | 6 | | manufactured on
special order, certified by the purchaser to be | 7 | | used primarily for
photoprocessing, and including | 8 | | photoprocessing machinery and equipment
purchased for lease.
| 9 | | (12) Until July 1, 2003, coal exploration, mining, | 10 | | offhighway hauling,
processing,
maintenance, and reclamation | 11 | | equipment, including
replacement parts and equipment, and | 12 | | including
equipment
purchased for lease, but excluding motor | 13 | | vehicles required to be registered
under the Illinois Vehicle | 14 | | Code.
| 15 | | (13) Beginning January 1, 1992 and through June 30, 2011, | 16 | | food for human consumption that is to be consumed off the | 17 | | premises
where it is sold (other than alcoholic beverages, soft | 18 | | drinks and food that
has been prepared for immediate | 19 | | consumption) and prescription and
non-prescription medicines, | 20 | | drugs, medical appliances, and insulin, urine
testing | 21 | | materials, syringes, and needles used by diabetics, for human | 22 | | use,
when purchased for use by a person receiving medical | 23 | | assistance under
Article V of the Illinois Public Aid Code who | 24 | | resides in a licensed
long-term care facility, as defined in | 25 | | the Nursing Home Care Act, or in a licensed facility as defined | 26 | | in the MR/DD Community Care Act.
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| 1 | | (14) Semen used for artificial insemination of livestock | 2 | | for direct
agricultural production.
| 3 | | (15) Horses, or interests in horses, registered with and | 4 | | meeting the
requirements of any of the
Arabian Horse Club | 5 | | Registry of America, Appaloosa Horse Club, American Quarter
| 6 | | Horse Association, United States
Trotting Association, or | 7 | | Jockey Club, as appropriate, used for
purposes of breeding or | 8 | | racing for prizes. This item (15) is exempt from the provisions | 9 | | of Section 3-55, and the exemption provided for under this item | 10 | | (15) applies for all periods beginning May 30, 1995, but no | 11 | | claim for credit or refund is allowed on or after January 1, | 12 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 13 | | paid during the period beginning May 30, 2000 and ending on | 14 | | January 1, 2008 (the effective date of Public Act 95-88).
| 15 | | (16) Computers and communications equipment utilized for | 16 | | any
hospital
purpose
and equipment used in the diagnosis,
| 17 | | analysis, or treatment of hospital patients sold to a lessor | 18 | | who leases the
equipment, under a lease of one year or longer | 19 | | executed or in effect at the
time of the purchase, to a
| 20 | | hospital
that has been issued an active tax exemption | 21 | | identification number by the
Department under Section 1g of the | 22 | | Retailers' Occupation Tax Act.
| 23 | | (17) Personal property sold to a lessor who leases the
| 24 | | property, under a
lease of one year or longer executed or in | 25 | | effect at the time of the purchase,
to a governmental body
that | 26 | | has been issued an active tax exemption identification number |
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| 1 | | by the
Department under Section 1g of the Retailers' Occupation | 2 | | Tax Act.
| 3 | | (18) Beginning with taxable years ending on or after | 4 | | December
31, 1995
and
ending with taxable years ending on or | 5 | | before December 31, 2004,
personal property that is
donated for | 6 | | disaster relief to be used in a State or federally declared
| 7 | | disaster area in Illinois or bordering Illinois by a | 8 | | manufacturer or retailer
that is registered in this State to a | 9 | | corporation, society, association,
foundation, or institution | 10 | | that has been issued a sales tax exemption
identification | 11 | | number by the Department that assists victims of the disaster
| 12 | | who reside within the declared disaster area.
| 13 | | (19) Beginning with taxable years ending on or after | 14 | | December
31, 1995 and
ending with taxable years ending on or | 15 | | before December 31, 2004, personal
property that is used in the | 16 | | performance of infrastructure repairs in this
State, including | 17 | | but not limited to municipal roads and streets, access roads,
| 18 | | bridges, sidewalks, waste disposal systems, water and sewer | 19 | | line extensions,
water distribution and purification | 20 | | facilities, storm water drainage and
retention facilities, and | 21 | | sewage treatment facilities, resulting from a State
or | 22 | | federally declared disaster in Illinois or bordering Illinois | 23 | | when such
repairs are initiated on facilities located in the | 24 | | declared 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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| 1 | | hunting area" as those terms are used
in the
Wildlife Code or | 2 | | at a hunting enclosure approved through rules adopted by the
| 3 | | Department of Natural Resources. This paragraph is exempt from | 4 | | the provisions
of
Section 3-55.
| 5 | | (21) A motor vehicle, as that term is defined in Section | 6 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 7 | | corporation, limited liability
company, society, association, | 8 | | foundation, or institution that is determined by
the Department | 9 | | to be organized and operated exclusively for educational
| 10 | | purposes. For purposes of this exemption, "a corporation, | 11 | | limited liability
company, society, association, foundation, | 12 | | or institution organized and
operated
exclusively for | 13 | | educational purposes" means all tax-supported public schools,
| 14 | | private schools that offer systematic instruction in useful | 15 | | branches of
learning by methods common to public schools and | 16 | | that compare favorably in
their scope and intensity with the | 17 | | course of study presented in tax-supported
schools, and | 18 | | vocational or technical schools or institutes organized and
| 19 | | operated exclusively to provide a course of study of not less | 20 | | than 6 weeks
duration and designed to prepare individuals to | 21 | | follow a trade or to pursue a
manual, technical, mechanical, | 22 | | industrial, business, or commercial
occupation.
| 23 | | (22) Beginning January 1, 2000, personal property, | 24 | | including
food,
purchased through fundraising
events for the | 25 | | benefit of
a public or private elementary or
secondary school, | 26 | | a group of those schools, or one or more school
districts if |
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| 1 | | the events are
sponsored by an entity recognized by the school | 2 | | district that consists
primarily of volunteers and includes
| 3 | | parents and teachers of the school children. This paragraph | 4 | | does not apply
to fundraising
events (i) for the benefit of | 5 | | private home instruction or (ii)
for which the fundraising | 6 | | entity purchases the personal property sold at
the events from | 7 | | another individual or entity that sold the property for the
| 8 | | purpose of resale by the fundraising entity and that
profits | 9 | | from the sale to the
fundraising entity. This paragraph is | 10 | | exempt
from the provisions
of Section 3-55.
| 11 | | (23) Beginning January 1, 2000
and through December 31, | 12 | | 2001, new or used automatic vending
machines that prepare and | 13 | | serve hot food and beverages, including coffee, soup,
and
other | 14 | | items, and replacement parts for these machines.
Beginning | 15 | | January 1,
2002 and through June 30, 2003, machines and parts | 16 | | for
machines used in commercial, coin-operated amusement
and | 17 | | vending business if a use or occupation tax is paid on the | 18 | | gross receipts
derived from
the use of the commercial, | 19 | | coin-operated amusement and vending machines.
This paragraph | 20 | | is exempt from the provisions of Section 3-55.
| 21 | | (24) Beginning
on the effective date of this amendatory Act | 22 | | of the 92nd General Assembly,
computers and communications | 23 | | equipment
utilized for any hospital purpose and equipment used | 24 | | in the diagnosis,
analysis, or treatment of hospital patients | 25 | | sold to a lessor who leases the
equipment, under a lease of one | 26 | | year or longer executed or in effect at the
time of the |
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| 1 | | purchase, to a hospital that has been issued an active tax
| 2 | | exemption identification number by the Department under | 3 | | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 4 | | is exempt from the provisions of
Section 3-55.
| 5 | | (25) Beginning
on the effective date of this amendatory Act | 6 | | of the 92nd General Assembly,
personal property sold to a | 7 | | lessor who
leases the property, under a lease of one year or | 8 | | longer executed or in effect
at the time of the purchase, to a | 9 | | governmental body that has been issued an
active tax exemption | 10 | | identification number by the Department under Section 1g
of the | 11 | | Retailers' Occupation Tax Act. This paragraph is exempt from | 12 | | the
provisions of Section 3-55.
| 13 | | (26) Beginning on January 1, 2002 and through June 30, 2016 | 14 | | 2011 , tangible personal property
purchased
from an Illinois | 15 | | retailer by a taxpayer engaged in centralized purchasing
| 16 | | activities in Illinois who will, upon receipt of the property | 17 | | in Illinois,
temporarily store the property in Illinois (i) for | 18 | | the purpose of subsequently
transporting it outside this State | 19 | | for use or consumption thereafter solely
outside this State or | 20 | | (ii) for the purpose of being processed, fabricated, or
| 21 | | manufactured into, attached to, or incorporated into other | 22 | | tangible personal
property to be transported outside this State | 23 | | and thereafter used or consumed
solely outside this State. The | 24 | | Director of Revenue shall, pursuant to rules
adopted in | 25 | | accordance with the Illinois Administrative Procedure Act, | 26 | | issue a
permit to any taxpayer in good standing with the |
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| 1 | | Department who is eligible for
the exemption under this | 2 | | paragraph (26). The permit issued under
this paragraph (26) | 3 | | shall authorize the holder, to the extent and
in the manner | 4 | | specified in the rules adopted under this Act, to purchase
| 5 | | tangible personal property from a retailer exempt from the | 6 | | taxes imposed by
this Act. Taxpayers shall maintain all | 7 | | necessary books and records to
substantiate the use and | 8 | | consumption of all such tangible personal property
outside of | 9 | | the State of Illinois.
| 10 | | (27) Beginning January 1, 2008, tangible personal property | 11 | | used in the construction or maintenance of a community water | 12 | | supply, as defined under Section 3.145 of the Environmental | 13 | | Protection Act, that is operated by a not-for-profit | 14 | | corporation that holds a valid water supply permit issued under | 15 | | Title IV of the Environmental Protection Act. This paragraph is | 16 | | exempt from the provisions of Section 3-55.
| 17 | | (28) Tangible personal property sold to a | 18 | | public-facilities corporation, as described in Section | 19 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 20 | | constructing or furnishing a municipal convention hall, but | 21 | | only if the legal title to the municipal convention hall is | 22 | | transferred to the municipality without any further | 23 | | consideration by or on behalf of the municipality at the time | 24 | | of the completion of the municipal convention hall or upon the | 25 | | retirement or redemption of any bonds or other debt instruments | 26 | | issued by the public-facilities corporation in connection with |
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| 1 | | the development of the municipal convention hall. This | 2 | | exemption includes existing public-facilities corporations as | 3 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 4 | | This paragraph is exempt from the provisions of Section 3-55. | 5 | | (29) Beginning January 1, 2010, materials, parts, | 6 | | equipment, components, and furnishings incorporated into or | 7 | | upon an aircraft as part of the modification, refurbishment, | 8 | | completion, replacement, repair, or maintenance of the | 9 | | aircraft. This exemption includes consumable supplies used in | 10 | | the modification, refurbishment, completion, replacement, | 11 | | repair, and maintenance of aircraft, but excludes any | 12 | | materials, parts, equipment, components, and consumable | 13 | | supplies used in the modification, replacement, repair, and | 14 | | maintenance of aircraft engines or power plants, whether such | 15 | | engines or power plants are installed or uninstalled upon any | 16 | | such aircraft. "Consumable supplies" include, but are not | 17 | | limited to, adhesive, tape, sandpaper, general purpose | 18 | | lubricants, cleaning solution, latex gloves, and protective | 19 | | films. This exemption applies only to those organizations that | 20 | | (i) hold an Air Agency Certificate and are empowered to operate | 21 | | an approved repair station by the Federal Aviation | 22 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 23 | | operations in accordance with Part 145 of the Federal Aviation | 24 | | Regulations. The exemption does not include aircraft operated | 25 | | by a commercial air carrier providing scheduled passenger air | 26 | | service pursuant to authority issued under Part 121 or Part 129 |
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| 1 | | of the Federal Aviation Regulations. | 2 | | (Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, | 3 | | eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 4 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 5 | | 7-2-10.)
| 6 | | Section 20. The Retailers' Occupation Tax Act is amended by | 7 | | changing Section 2-5 as follows:
| 8 | | (35 ILCS 120/2-5)
| 9 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 10 | | sale of
the following tangible personal property are exempt | 11 | | from the tax imposed
by this Act:
| 12 | | (1) Farm chemicals.
| 13 | | (2) Farm machinery and equipment, both new and used, | 14 | | including that
manufactured on special order, certified by the | 15 | | purchaser to be used
primarily for production agriculture or | 16 | | State or federal agricultural
programs, including individual | 17 | | replacement parts for the machinery and
equipment, including | 18 | | machinery and equipment purchased for lease,
and including | 19 | | implements of husbandry defined in Section 1-130 of
the | 20 | | Illinois Vehicle Code, farm machinery and agricultural | 21 | | chemical and
fertilizer spreaders, and nurse wagons required to | 22 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 23 | | but
excluding other motor vehicles required to be registered | 24 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or |
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| 1 | | hoop houses used for propagating, growing, or
overwintering | 2 | | plants shall be considered farm machinery and equipment under
| 3 | | this item (2).
Agricultural chemical tender tanks and dry boxes | 4 | | shall include units sold
separately from a motor vehicle | 5 | | required to be licensed and units sold mounted
on a motor | 6 | | vehicle required to be licensed, if the selling price of the | 7 | | tender
is separately stated.
| 8 | | Farm machinery and equipment shall include precision | 9 | | farming equipment
that is
installed or purchased to be | 10 | | installed on farm machinery and equipment
including, but not | 11 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 12 | | or spreaders.
Precision farming equipment includes, but is not | 13 | | limited to,
soil testing sensors, computers, monitors, | 14 | | software, global positioning
and mapping systems, and other | 15 | | such equipment.
| 16 | | Farm machinery and equipment also includes computers, | 17 | | sensors, software, and
related equipment used primarily in the
| 18 | | computer-assisted operation of production agriculture | 19 | | facilities, equipment,
and activities such as, but
not limited | 20 | | to,
the collection, monitoring, and correlation of
animal and | 21 | | crop data for the purpose of
formulating animal diets and | 22 | | agricultural chemicals. This item (7) is exempt
from the | 23 | | provisions of
Section 2-70.
| 24 | | (3) Until July 1, 2003, distillation machinery and | 25 | | equipment, sold as a
unit or kit,
assembled or installed by the | 26 | | retailer, certified by the user to be used
only for the |
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| 1 | | production of ethyl alcohol that will be used for consumption
| 2 | | as motor fuel or as a component of motor fuel for the personal | 3 | | use of the
user, and not subject to sale or resale.
| 4 | | (4) Until July 1, 2003 and beginning again September 1, | 5 | | 2004 through August 30, 2014, graphic arts machinery and | 6 | | equipment, including
repair and
replacement parts, both new and | 7 | | used, and including that manufactured on
special order or | 8 | | purchased for lease, certified by the purchaser to be used
| 9 | | primarily for graphic arts production.
Equipment includes | 10 | | chemicals or
chemicals acting as catalysts but only if
the | 11 | | chemicals or chemicals acting as catalysts effect a direct and | 12 | | immediate
change upon a
graphic arts product.
| 13 | | (5) A motor vehicle of the first division, a motor vehicle | 14 | | of the second division that is a self contained motor vehicle | 15 | | designed or permanently converted to provide living quarters | 16 | | for recreational, camping, or travel use, with direct walk | 17 | | through access to the living quarters from the driver's seat, | 18 | | or a motor vehicle of the second division that is of the van | 19 | | configuration designed for the transportation of not less than | 20 | | 7 nor more than 16 passengers, as defined in Section 1-146 of | 21 | | the Illinois Vehicle Code, that is used for automobile renting, | 22 | | as defined in the Automobile Renting Occupation and Use Tax | 23 | | Act. This paragraph is exempt from
the provisions of Section | 24 | | 2-70.
| 25 | | (6) Personal property sold by a teacher-sponsored student | 26 | | organization
affiliated with an elementary or secondary school |
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| 1 | | located in Illinois.
| 2 | | (7) Until July 1, 2003, proceeds of that portion of the | 3 | | selling price of
a passenger car the
sale of which is subject | 4 | | to the Replacement Vehicle Tax.
| 5 | | (8) Personal property sold to an Illinois county fair | 6 | | association for
use in conducting, operating, or promoting the | 7 | | county fair.
| 8 | | (9) Personal property sold to a not-for-profit arts
or | 9 | | cultural organization that establishes, by proof required by | 10 | | the Department
by
rule, that it has received an exemption under | 11 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 12 | | organized and operated primarily for the
presentation
or | 13 | | support of arts or cultural programming, activities, or | 14 | | services. These
organizations include, but are not limited to, | 15 | | music and dramatic arts
organizations such as symphony | 16 | | orchestras and theatrical groups, arts and
cultural service | 17 | | organizations, local arts councils, visual arts organizations,
| 18 | | and media arts organizations.
On and after the effective date | 19 | | of this amendatory Act of the 92nd General
Assembly, however, | 20 | | an entity otherwise eligible for this exemption shall not
make | 21 | | tax-free purchases unless it has an active identification | 22 | | number issued by
the Department.
| 23 | | (10) Personal property sold by a corporation, society, | 24 | | association,
foundation, institution, or organization, other | 25 | | than a limited liability
company, that is organized and | 26 | | operated as a not-for-profit service enterprise
for the benefit |
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| 1 | | of persons 65 years of age or older if the personal property
| 2 | | was not purchased by the enterprise for the purpose of resale | 3 | | by the
enterprise.
| 4 | | (11) Personal property sold to a governmental body, to a | 5 | | corporation,
society, association, foundation, or institution | 6 | | organized and operated
exclusively for charitable, religious, | 7 | | or educational purposes, or to a
not-for-profit corporation, | 8 | | society, association, foundation, institution,
or organization | 9 | | that has no compensated officers or employees and that is
| 10 | | organized and operated primarily for the recreation of persons | 11 | | 55 years of
age or older. A limited liability company may | 12 | | qualify for the exemption under
this paragraph only if the | 13 | | limited liability company is organized and operated
| 14 | | exclusively for educational purposes. On and after July 1, | 15 | | 1987, however, no
entity otherwise eligible for this exemption | 16 | | shall make tax-free purchases
unless it has an active | 17 | | identification number issued by the Department.
| 18 | | (12) Tangible personal property sold to
interstate | 19 | | carriers
for hire for use as
rolling stock moving in interstate | 20 | | commerce or to lessors under leases of
one year or longer | 21 | | executed or in effect at the time of purchase by
interstate | 22 | | carriers for hire for use as rolling stock moving in interstate
| 23 | | commerce and equipment operated by a telecommunications | 24 | | provider, licensed as a
common carrier by the Federal | 25 | | Communications Commission, which is permanently
installed in | 26 | | or 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, | 2 | | motor vehicles of the second division
with a gross vehicle | 3 | | weight in excess of 8,000 pounds
that
are
subject to the | 4 | | commercial distribution fee imposed under Section 3-815.1 of
| 5 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 6 | | through June 30, 2005, the use in this State of motor vehicles | 7 | | of the second division: (i) with a gross vehicle weight rating | 8 | | in excess of 8,000 pounds; (ii) that are subject to the | 9 | | commercial distribution fee imposed under Section 3-815.1 of | 10 | | the Illinois Vehicle Code; and (iii) that are primarily used | 11 | | for commercial purposes. Through June 30, 2005, this
exemption | 12 | | applies to repair and replacement parts added
after the
initial | 13 | | purchase of such a motor vehicle if that motor vehicle is used | 14 | | in a
manner that
would qualify for the rolling stock exemption | 15 | | otherwise provided for in this
Act. For purposes of this | 16 | | paragraph, "used for commercial purposes" means the | 17 | | transportation of persons or property in furtherance of any | 18 | | commercial or industrial enterprise whether for-hire or not.
| 19 | | (13) Proceeds from sales to owners, lessors, or
shippers of
| 20 | | tangible personal property that is utilized by interstate | 21 | | carriers for
hire for use as rolling stock moving in interstate | 22 | | commerce
and equipment operated by a telecommunications | 23 | | provider, licensed as a
common carrier by the Federal | 24 | | Communications Commission, which is
permanently installed in | 25 | | or affixed to aircraft moving in interstate commerce.
| 26 | | (14) Machinery and equipment that will be used by the |
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| 1 | | purchaser, or a
lessee of the purchaser, primarily in the | 2 | | process of manufacturing or
assembling tangible personal | 3 | | property for wholesale or retail sale or
lease, whether the | 4 | | sale or lease is made directly by the manufacturer or by
some | 5 | | other person, whether the materials used in the process are | 6 | | owned by
the manufacturer or some other person, or whether the | 7 | | sale or lease is made
apart from or as an incident to the | 8 | | seller's engaging in the service
occupation of producing | 9 | | machines, tools, dies, jigs, patterns, gauges, or
other similar | 10 | | items of no commercial value on special order for a particular
| 11 | | purchaser.
| 12 | | (15) Proceeds of mandatory service charges separately | 13 | | stated on
customers' bills for purchase and consumption of food | 14 | | and beverages, to the
extent that the proceeds of the service | 15 | | charge are in fact turned over as
tips or as a substitute for | 16 | | tips to the employees who participate directly
in preparing, | 17 | | serving, hosting or cleaning up the food or beverage function
| 18 | | with respect to which the service charge is imposed.
| 19 | | (16) Petroleum products sold to a purchaser if the seller
| 20 | | is prohibited by federal law from charging tax to the | 21 | | purchaser.
| 22 | | (17) Tangible personal property sold to a common carrier by | 23 | | rail or
motor that
receives the physical possession of the | 24 | | property in Illinois and that
transports the property, or | 25 | | shares with another common carrier in the
transportation of the | 26 | | property, out of Illinois on a standard uniform bill
of lading |
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| 1 | | showing the seller of the property as the shipper or consignor | 2 | | of
the property to a destination outside Illinois, for use | 3 | | outside Illinois.
| 4 | | (18) Legal tender, currency, medallions, or gold or silver | 5 | | coinage
issued by the State of Illinois, the government of the | 6 | | United States of
America, or the government of any foreign | 7 | | country, and bullion.
| 8 | | (19) Until July 1 2003, oil field exploration, drilling, | 9 | | and production
equipment, including
(i) rigs and parts of rigs, | 10 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 11 | | tubular goods, including casing and
drill strings, (iii) pumps | 12 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 13 | | individual replacement part for oil field exploration,
| 14 | | drilling, and production equipment, and (vi) machinery and | 15 | | equipment purchased
for lease; but
excluding motor vehicles | 16 | | required to be registered under the Illinois
Vehicle Code.
| 17 | | (20) Photoprocessing machinery and equipment, including | 18 | | repair and
replacement parts, both new and used, including that | 19 | | manufactured on
special order, certified by the purchaser to be | 20 | | used primarily for
photoprocessing, and including | 21 | | photoprocessing machinery and equipment
purchased for lease.
| 22 | | (21) Until July 1, 2003, coal exploration, mining, | 23 | | offhighway hauling,
processing,
maintenance, and reclamation | 24 | | equipment, including
replacement parts and equipment, and | 25 | | including
equipment purchased for lease, but excluding motor | 26 | | vehicles required to be
registered under the Illinois Vehicle |
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| 1 | | Code.
| 2 | | (22) Fuel and petroleum products sold to or used by an air | 3 | | carrier,
certified by the carrier to be used for consumption, | 4 | | shipment, or storage
in the conduct of its business as an air | 5 | | common carrier, for a flight
destined for or returning from a | 6 | | location or locations
outside the United States without regard | 7 | | to previous or subsequent domestic
stopovers.
| 8 | | (23) A transaction in which the purchase order is received | 9 | | by a florist
who is located outside Illinois, but who has a | 10 | | florist located in Illinois
deliver the property to the | 11 | | purchaser or the purchaser's donee in Illinois.
| 12 | | (24) Fuel consumed or used in the operation of ships, | 13 | | barges, or vessels
that are used primarily in or for the | 14 | | transportation of property or the
conveyance of persons for | 15 | | hire on rivers bordering on this State if the
fuel is delivered | 16 | | by the seller to the purchaser's barge, ship, or vessel
while | 17 | | it is afloat upon that bordering river.
| 18 | | (25) Except as provided in item (25-5) of this Section, a
| 19 | | motor vehicle sold in this State to a nonresident even though | 20 | | the
motor vehicle is delivered to the nonresident in this | 21 | | State, if the motor
vehicle is not to be titled in this State, | 22 | | and if a drive-away permit
is issued to the motor vehicle as | 23 | | provided in Section 3-603 of the Illinois
Vehicle Code or if | 24 | | the nonresident purchaser has vehicle registration
plates to | 25 | | transfer to the motor vehicle upon returning to his or her home
| 26 | | state. The issuance of the drive-away permit or having
the
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| 1 | | out-of-state registration plates to be transferred is prima | 2 | | facie evidence
that the motor vehicle will not be titled in | 3 | | this State.
| 4 | | (25-5) The exemption under item (25) does not apply if the | 5 | | state in which the motor vehicle will be titled does not allow | 6 | | a reciprocal exemption for a motor vehicle sold and delivered | 7 | | in that state to an Illinois resident but titled in Illinois. | 8 | | The tax collected under this Act on the sale of a motor vehicle | 9 | | in this State to a resident of another state that does not | 10 | | allow a reciprocal exemption shall be imposed at a rate equal | 11 | | to the state's rate of tax on taxable property in the state in | 12 | | which the purchaser is a resident, except that the tax shall | 13 | | not exceed the tax that would otherwise be imposed under this | 14 | | Act. At the time of the sale, the purchaser shall execute a | 15 | | statement, signed under penalty of perjury, of his or her | 16 | | intent to title the vehicle in the state in which the purchaser | 17 | | is a resident within 30 days after the sale and of the fact of | 18 | | the payment to the State of Illinois of tax in an amount | 19 | | equivalent to the state's rate of tax on taxable property in | 20 | | his or her state of residence and shall submit the statement to | 21 | | the appropriate tax collection agency in his or her state of | 22 | | residence. In addition, the retailer must retain a signed copy | 23 | | of the statement in his or her records. Nothing in this item | 24 | | shall be construed to require the removal of the vehicle from | 25 | | this state following the filing of an intent to title the | 26 | | vehicle in the purchaser's state of residence if the purchaser |
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| 1 | | titles the vehicle in his or her state of residence within 30 | 2 | | days after the date of sale. The tax collected under this Act | 3 | | in accordance with this item (25-5) shall be proportionately | 4 | | distributed as if the tax were collected at the 6.25% general | 5 | | rate imposed under this Act.
| 6 | | (25-7) Beginning on July 1, 2007, no tax is imposed under | 7 | | this Act on the sale of an aircraft, as defined in Section 3 of | 8 | | the Illinois Aeronautics Act, if all of the following | 9 | | conditions 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 | 4 | | used, excluding post-sale customizations as defined in this | 5 | | Section, for 10 or more days in each 12-month period | 6 | | immediately following the date of the sale of the aircraft. | 7 | | "Registered in this State" means an aircraft registered | 8 | | with the Department of Transportation, Aeronautics Division, | 9 | | or titled or registered with the Federal Aviation | 10 | | Administration to an address located in this State. | 11 | | This paragraph (25-7) is exempt from the provisions
of
| 12 | | Section 2-70.
| 13 | | (26) Semen used for artificial insemination of livestock | 14 | | for direct
agricultural production.
| 15 | | (27) Horses, or interests in horses, registered with and | 16 | | meeting the
requirements of any of the
Arabian Horse Club | 17 | | Registry of America, Appaloosa Horse Club, American Quarter
| 18 | | Horse Association, United States
Trotting Association, or | 19 | | Jockey Club, as appropriate, used for
purposes of breeding or | 20 | | racing for prizes. This item (27) is exempt from the provisions | 21 | | of Section 2-70, and the exemption provided for under this item | 22 | | (27) applies for all periods beginning May 30, 1995, but no | 23 | | claim for credit or refund is allowed on or after January 1, | 24 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 25 | | paid during the period beginning May 30, 2000 and ending on | 26 | | January 1, 2008 (the effective date of Public Act 95-88).
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| 1 | | (28) Computers and communications equipment utilized for | 2 | | any
hospital
purpose
and equipment used in the diagnosis,
| 3 | | analysis, or treatment of hospital patients sold to a lessor | 4 | | who leases the
equipment, under a lease of one year or longer | 5 | | executed or in effect at the
time of the purchase, to a
| 6 | | hospital
that has been issued an active tax exemption | 7 | | identification number by the
Department under Section 1g of | 8 | | this Act.
| 9 | | (29) Personal property sold to a lessor who leases the
| 10 | | property, under a
lease of one year or longer executed or in | 11 | | effect at the time of the purchase,
to a governmental body
that | 12 | | has been issued an active tax exemption identification number | 13 | | by the
Department under Section 1g of this Act.
| 14 | | (30) Beginning with taxable years ending on or after | 15 | | December
31, 1995
and
ending with taxable years ending on or | 16 | | before December 31, 2004,
personal property that is
donated for | 17 | | disaster relief to be used in a State or federally declared
| 18 | | disaster area in Illinois or bordering Illinois by a | 19 | | manufacturer or retailer
that is registered in this State to a | 20 | | corporation, society, association,
foundation, or institution | 21 | | that has been issued a sales tax exemption
identification | 22 | | number by the Department that assists victims of the disaster
| 23 | | who reside within the declared disaster area.
| 24 | | (31) Beginning with taxable years ending on or after | 25 | | December
31, 1995 and
ending with taxable years ending on or | 26 | | before December 31, 2004, personal
property that is used in the |
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| 1 | | performance of infrastructure repairs in this
State, including | 2 | | but not limited to municipal roads and streets, access roads,
| 3 | | bridges, sidewalks, waste disposal systems, water and sewer | 4 | | line extensions,
water distribution and purification | 5 | | facilities, storm water drainage and
retention facilities, and | 6 | | sewage treatment facilities, resulting from a State
or | 7 | | federally declared disaster in Illinois or bordering Illinois | 8 | | when such
repairs are initiated on facilities located in the | 9 | | declared disaster area
within 6 months after the disaster.
| 10 | | (32) Beginning July 1, 1999, game or game birds sold at a | 11 | | "game breeding
and
hunting preserve area" or an "exotic game | 12 | | hunting area" as those terms are used
in the
Wildlife Code or | 13 | | at a hunting enclosure approved through rules adopted by the
| 14 | | Department of Natural Resources. This paragraph is exempt from | 15 | | the provisions
of
Section 2-70.
| 16 | | (33) A motor vehicle, as that term is defined in Section | 17 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 18 | | corporation, limited liability
company, society, association, | 19 | | foundation, or institution that is determined by
the Department | 20 | | to be organized and operated exclusively for educational
| 21 | | purposes. For purposes of this exemption, "a corporation, | 22 | | limited liability
company, society, association, foundation, | 23 | | or institution organized and
operated
exclusively for | 24 | | educational purposes" means all tax-supported public schools,
| 25 | | private schools that offer systematic instruction in useful | 26 | | branches of
learning by methods common to public schools and |
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| 1 | | that compare favorably in
their scope and intensity with the | 2 | | course of study presented in tax-supported
schools, and | 3 | | vocational or technical schools or institutes organized and
| 4 | | operated exclusively to provide a course of study of not less | 5 | | than 6 weeks
duration and designed to prepare individuals to | 6 | | follow a trade or to pursue a
manual, technical, mechanical, | 7 | | industrial, business, or commercial
occupation.
| 8 | | (34) Beginning January 1, 2000, personal property, | 9 | | including food, purchased
through fundraising events for the | 10 | | benefit of a public or private elementary or
secondary school, | 11 | | a group of those schools, or one or more school districts if
| 12 | | the events are sponsored by an entity recognized by the school | 13 | | district that
consists primarily of volunteers and includes | 14 | | parents and teachers of the
school children. This paragraph | 15 | | does not apply to fundraising events (i) for
the benefit of | 16 | | private home instruction or (ii) for which the fundraising
| 17 | | entity purchases the personal property sold at the events from | 18 | | another
individual or entity that sold the property for the | 19 | | purpose of resale by the
fundraising entity and that profits | 20 | | from the sale to the fundraising entity.
This paragraph is | 21 | | exempt from the provisions of Section 2-70.
| 22 | | (35) Beginning January 1, 2000 and through December 31, | 23 | | 2001, new or used
automatic vending machines that prepare and | 24 | | serve hot food and beverages,
including coffee, soup, and other | 25 | | items, and replacement parts for these
machines. Beginning | 26 | | January 1, 2002 and through June 30, 2003, machines
and parts |
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| 1 | | for machines used in
commercial, coin-operated amusement and | 2 | | vending business if a use or occupation
tax is paid on the | 3 | | gross receipts derived from the use of the commercial,
| 4 | | coin-operated amusement and vending machines. This paragraph | 5 | | is exempt from
the provisions of Section 2-70.
| 6 | | (35-5) Beginning August 23, 2001 and through June 30, 2011, | 7 | | food for human consumption that is to be consumed off
the | 8 | | premises where it is sold (other than alcoholic beverages, soft | 9 | | drinks,
and food that has been prepared for immediate | 10 | | consumption) and prescription
and nonprescription medicines, | 11 | | drugs, medical appliances, and insulin, urine
testing | 12 | | materials, syringes, and needles used by diabetics, for human | 13 | | use, when
purchased for use by a person receiving medical | 14 | | assistance under Article V of
the Illinois Public Aid Code who | 15 | | resides in a licensed long-term care facility,
as defined in | 16 | | the Nursing Home Care Act, or a licensed facility as defined in | 17 | | the MR/DD Community Care Act.
| 18 | | (36) Beginning August 2, 2001, computers and | 19 | | communications equipment
utilized for any hospital purpose and | 20 | | equipment used in the diagnosis,
analysis, or treatment of | 21 | | hospital patients sold to a lessor who leases the
equipment, | 22 | | under a lease of one year or longer executed or in effect at | 23 | | the
time of the purchase, to a hospital that has been issued an | 24 | | active tax
exemption identification number by the Department | 25 | | under Section 1g of this Act.
This paragraph is exempt from the | 26 | | provisions of Section 2-70.
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| 1 | | (37) Beginning August 2, 2001, personal property sold to a | 2 | | lessor who
leases the property, under a lease of one year or | 3 | | longer executed or in effect
at the time of the purchase, to a | 4 | | governmental body that has been issued an
active tax exemption | 5 | | identification number by the Department under Section 1g
of | 6 | | this Act. This paragraph is exempt from the provisions of | 7 | | Section 2-70.
| 8 | | (38) Beginning on January 1, 2002 and through June 30, 2016 | 9 | | 2011 , tangible personal property purchased
from an Illinois | 10 | | retailer by a taxpayer engaged in centralized purchasing
| 11 | | activities in Illinois who will, upon receipt of the property | 12 | | in Illinois,
temporarily store the property in Illinois (i) for | 13 | | the purpose of subsequently
transporting it outside this State | 14 | | for use or consumption thereafter solely
outside this State or | 15 | | (ii) for the purpose of being processed, fabricated, or
| 16 | | manufactured into, attached to, or incorporated into other | 17 | | tangible personal
property to be transported outside this State | 18 | | and thereafter used or consumed
solely outside this State. The | 19 | | Director of Revenue shall, pursuant to rules
adopted in | 20 | | accordance with the Illinois Administrative Procedure Act, | 21 | | issue a
permit to any taxpayer in good standing with the | 22 | | Department who is eligible for
the exemption under this | 23 | | paragraph (38). The permit issued under
this paragraph (38) | 24 | | shall authorize the holder, to the extent and
in the manner | 25 | | specified in the rules adopted under this Act, to purchase
| 26 | | tangible personal property from a retailer exempt from the |
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| 1 | | taxes imposed by
this Act. Taxpayers shall maintain all | 2 | | necessary books and records to
substantiate the use and | 3 | | consumption of all such tangible personal property
outside of | 4 | | the State of Illinois.
| 5 | | (39) Beginning January 1, 2008, tangible personal property | 6 | | used in the construction or maintenance of a community water | 7 | | supply, as defined under Section 3.145 of the Environmental | 8 | | Protection Act, that is operated by a not-for-profit | 9 | | corporation that holds a valid water supply permit issued under | 10 | | Title IV of the Environmental Protection Act. This paragraph is | 11 | | exempt from the provisions of Section 2-70.
| 12 | | (40) Beginning January 1, 2010, materials, parts, | 13 | | equipment, components, and furnishings incorporated into or | 14 | | upon an aircraft as part of the modification, refurbishment, | 15 | | completion, replacement, repair, or maintenance of the | 16 | | aircraft. This exemption includes consumable supplies used in | 17 | | the modification, refurbishment, completion, replacement, | 18 | | repair, and maintenance of aircraft, but excludes any | 19 | | materials, parts, equipment, components, and consumable | 20 | | supplies used in the modification, replacement, repair, and | 21 | | maintenance of aircraft engines or power plants, whether such | 22 | | engines or power plants are installed or uninstalled upon any | 23 | | such aircraft. "Consumable supplies" include, but are not | 24 | | limited to, adhesive, tape, sandpaper, general purpose | 25 | | lubricants, cleaning solution, latex gloves, and protective | 26 | | films. This exemption applies only to those organizations that |
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| 1 | | (i) hold an Air Agency Certificate and are empowered to operate | 2 | | an approved repair station by the Federal Aviation | 3 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 4 | | operations in accordance with Part 145 of the Federal Aviation | 5 | | Regulations. The exemption does not include aircraft operated | 6 | | by a commercial air carrier providing scheduled passenger air | 7 | | service pursuant to authority issued under Part 121 or Part 129 | 8 | | of the Federal Aviation Regulations. | 9 | | (41) Tangible personal property sold to a | 10 | | public-facilities corporation, as described in Section | 11 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 12 | | constructing or furnishing a municipal convention hall, but | 13 | | only if the legal title to the municipal convention hall is | 14 | | transferred to the municipality without any further | 15 | | consideration by or on behalf of the municipality at the time | 16 | | of the completion of the municipal convention hall or upon the | 17 | | retirement or redemption of any bonds or other debt instruments | 18 | | issued by the public-facilities corporation in connection with | 19 | | the development of the municipal convention hall. This | 20 | | exemption includes existing public-facilities corporations as | 21 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 22 | | This 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, | 24 | | eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08; | 25 | | 95-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. | 26 | | 7-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, |
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| 1 | | eff. 7-2-10.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law. |
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