Full Text of SB1801 98th General Assembly
SB1801eng 98TH 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 | | 3-5 as follows:
| 6 | | (35 ILCS 105/3-5)
| 7 | | Sec. 3-5. Exemptions. Use of the following tangible | 8 | | personal property
is exempt from the tax imposed by this Act:
| 9 | | (1) Personal property purchased from a corporation, | 10 | | society, association,
foundation, institution, or | 11 | | organization, other than a limited liability
company, that is | 12 | | organized and operated as a not-for-profit service enterprise
| 13 | | for the benefit of persons 65 years of age or older if the | 14 | | personal property
was not purchased by the enterprise for the | 15 | | purpose of resale by the
enterprise.
| 16 | | (2) Personal property purchased by a not-for-profit | 17 | | Illinois county
fair association for use in conducting, | 18 | | operating, or promoting the
county fair.
| 19 | | (3) Personal property purchased by a not-for-profit
arts or | 20 | | cultural organization that establishes, by proof required by | 21 | | the
Department by
rule, that it has received an exemption under | 22 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 23 | | organized and operated primarily for the
presentation
or |
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| 1 | | support of arts or cultural programming, activities, or | 2 | | services. These
organizations include, but are not limited to, | 3 | | music and dramatic arts
organizations such as symphony | 4 | | orchestras and theatrical groups, arts and
cultural service | 5 | | organizations, local arts councils, visual arts organizations,
| 6 | | and media arts organizations.
On and after the effective date | 7 | | of this amendatory Act of the 92nd General
Assembly, however, | 8 | | an entity otherwise eligible for this exemption shall not
make | 9 | | tax-free purchases unless it has an active identification | 10 | | number issued by
the Department.
| 11 | | (4) Personal property purchased by a governmental body, by | 12 | | a
corporation, society, association, foundation, or | 13 | | institution organized and
operated exclusively for charitable, | 14 | | religious, or educational purposes, or
by a not-for-profit | 15 | | corporation, society, association, foundation,
institution, or | 16 | | organization that has no compensated officers or employees
and | 17 | | that is organized and operated primarily for the recreation of | 18 | | persons
55 years of age or older. A limited liability company | 19 | | may qualify for the
exemption under this paragraph only if the | 20 | | limited liability company is
organized and operated | 21 | | exclusively for educational purposes. On and after July
1, | 22 | | 1987, however, no entity otherwise eligible for this exemption | 23 | | shall make
tax-free purchases unless it has an active exemption | 24 | | identification number
issued by the Department.
| 25 | | (5) Until July 1, 2003, a passenger car that is a | 26 | | replacement vehicle to
the extent that the
purchase price of |
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| 1 | | the car is subject to the Replacement Vehicle Tax.
| 2 | | (6) Until July 1, 2003 and beginning again on September 1, | 3 | | 2004 through August 30, 2014, graphic arts machinery and | 4 | | equipment, including
repair and replacement
parts, both new and | 5 | | used, and including that manufactured on special order,
| 6 | | certified by the purchaser to be used primarily for graphic | 7 | | arts production,
and including machinery and equipment | 8 | | purchased for lease.
Equipment includes chemicals or chemicals | 9 | | acting as catalysts but only if
the
chemicals or chemicals | 10 | | acting as catalysts effect a direct and immediate change
upon a | 11 | | graphic arts product.
| 12 | | (7) Farm chemicals.
| 13 | | (8) Legal tender, currency, medallions, or gold or silver | 14 | | coinage issued by
the State of Illinois, the government of the | 15 | | United States of America, or the
government of any foreign | 16 | | country, and bullion.
| 17 | | (9) Personal property purchased from a teacher-sponsored | 18 | | student
organization affiliated with an elementary or | 19 | | secondary school located in
Illinois.
| 20 | | (10) A motor vehicle of the first division, a motor vehicle | 21 | | of the
second division that is a self-contained motor vehicle | 22 | | designed or
permanently converted to provide living quarters | 23 | | for recreational, camping,
or travel use, with direct walk | 24 | | through to the living quarters from the
driver's seat, or a | 25 | | motor vehicle of the second division that is of the
van | 26 | | configuration designed for the transportation of not less than |
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| 1 | | 7 nor
more than 16 passengers, as defined in Section 1-146 of | 2 | | the Illinois
Vehicle Code, that is used for automobile renting, | 3 | | as defined in the
Automobile Renting Occupation and Use Tax | 4 | | Act.
| 5 | | (11) Farm machinery and equipment, both new and used,
| 6 | | including that manufactured on special order, certified by the | 7 | | purchaser
to be used primarily for production agriculture or | 8 | | State or federal
agricultural programs, including individual | 9 | | replacement parts for
the machinery and equipment, including | 10 | | machinery and equipment
purchased
for lease,
and including | 11 | | implements of husbandry defined in Section 1-130 of
the | 12 | | Illinois Vehicle Code, farm machinery and agricultural | 13 | | chemical and
fertilizer spreaders, and nurse wagons required to | 14 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 15 | | but excluding other motor
vehicles required to be
registered | 16 | | under the Illinois Vehicle Code.
Horticultural polyhouses or | 17 | | hoop houses used for propagating, growing, or
overwintering | 18 | | plants shall be considered farm machinery and equipment under
| 19 | | this item (11).
Agricultural chemical tender tanks and dry | 20 | | boxes shall include units sold
separately from a motor vehicle | 21 | | required to be licensed and units sold mounted
on a motor | 22 | | vehicle required to be licensed if the selling price of the | 23 | | tender
is separately stated.
| 24 | | Farm machinery and equipment shall include precision | 25 | | farming equipment
that is
installed or purchased to be | 26 | | installed on farm machinery and equipment
including, but not |
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| 1 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 2 | | or spreaders.
Precision farming equipment includes, but is not | 3 | | limited to, soil testing
sensors, computers, monitors, | 4 | | software, global positioning
and mapping systems, and other | 5 | | such equipment.
| 6 | | Farm machinery and equipment also includes computers, | 7 | | sensors, software, and
related equipment used primarily in the
| 8 | | computer-assisted operation of production agriculture | 9 | | facilities, equipment,
and
activities such as, but not limited | 10 | | to,
the collection, monitoring, and correlation of
animal and | 11 | | crop data for the purpose of
formulating animal diets and | 12 | | agricultural chemicals. This item (11) is exempt
from the | 13 | | provisions of
Section 3-90.
| 14 | | (12) Fuel and petroleum products sold to or used by an air | 15 | | common
carrier, certified by the carrier to be used for | 16 | | consumption, shipment, or
storage in the conduct of its | 17 | | business as an air common carrier, for a
flight destined for or | 18 | | returning from a location or locations
outside the United | 19 | | States without regard to previous or subsequent domestic
| 20 | | stopovers.
| 21 | | (13) Proceeds of mandatory service charges separately
| 22 | | stated on customers' bills for the purchase and consumption of | 23 | | food and
beverages purchased at retail from a retailer, to the | 24 | | extent that the proceeds
of the service charge are in fact | 25 | | turned over as tips or as a substitute
for tips to the | 26 | | employees who participate directly in preparing, serving,
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| 1 | | hosting or cleaning up the food or beverage function with | 2 | | respect to which
the service charge is imposed.
| 3 | | (14) Until July 1, 2003, oil field exploration, drilling, | 4 | | and production
equipment,
including (i) rigs and parts of rigs, | 5 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 6 | | tubular goods,
including casing and drill strings, (iii) pumps | 7 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 8 | | individual replacement part for oil
field exploration, | 9 | | drilling, and production equipment, and (vi) machinery and
| 10 | | equipment purchased
for lease; but excluding motor vehicles | 11 | | required to be registered under the
Illinois Vehicle Code.
| 12 | | (15) Photoprocessing machinery and equipment, including | 13 | | repair and
replacement parts, both new and used, including that
| 14 | | manufactured on special order, certified by the purchaser to be | 15 | | used
primarily for photoprocessing, and including
| 16 | | photoprocessing machinery and equipment purchased for lease.
| 17 | | (16) Until July 1, 2003, and beginning again on the | 18 | | effective date of this amendatory Act of the 97th General | 19 | | Assembly and thereafter, coal and aggregate exploration, | 20 | | mining, offhighway hauling,
processing, maintenance, and | 21 | | reclamation equipment,
including replacement parts and | 22 | | equipment, and
including equipment purchased for lease, but | 23 | | excluding motor
vehicles required to be registered under the | 24 | | Illinois Vehicle Code.
| 25 | | (17) Until July 1, 2003, distillation machinery and | 26 | | equipment, sold as a
unit or kit,
assembled or installed by the |
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| 1 | | retailer, certified by the user to be used
only for the | 2 | | production of ethyl alcohol that will be used for consumption
| 3 | | as motor fuel or as a component of motor fuel for the personal | 4 | | use of the
user, and not subject to sale or resale.
| 5 | | (18) Manufacturing and assembling machinery and equipment | 6 | | used
primarily in the process of manufacturing or assembling | 7 | | tangible
personal property for wholesale or retail sale or | 8 | | lease, whether that sale
or lease is made directly by the | 9 | | manufacturer or by some other person,
whether the materials | 10 | | used in the process are
owned by the manufacturer or some other | 11 | | person, or whether that sale or
lease is made apart from or as | 12 | | an incident to the seller's engaging in
the service occupation | 13 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 14 | | other similar items of no commercial value on
special order for | 15 | | a particular purchaser.
| 16 | | (19) Personal property delivered to a purchaser or | 17 | | purchaser's donee
inside Illinois when the purchase order for | 18 | | that personal property was
received by a florist located | 19 | | outside Illinois who has a florist located
inside Illinois | 20 | | deliver the personal property.
| 21 | | (20) Semen used for artificial insemination of livestock | 22 | | for direct
agricultural production.
| 23 | | (21) Horses, or interests in horses, registered with and | 24 | | meeting the
requirements of any of the
Arabian Horse Club | 25 | | Registry of America, Appaloosa Horse Club, American Quarter
| 26 | | Horse Association, United States
Trotting Association, or |
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| 1 | | Jockey Club, as appropriate, used for
purposes of breeding or | 2 | | racing for prizes. This item (21) is exempt from the provisions | 3 | | of Section 3-90, and the exemption provided for under this item | 4 | | (21) applies for all periods beginning May 30, 1995, but no | 5 | | claim for credit or refund is allowed on or after January 1, | 6 | | 2008
for such taxes paid during the period beginning May 30, | 7 | | 2000 and ending on January 1, 2008.
| 8 | | (22) Computers and communications equipment utilized for | 9 | | any
hospital
purpose
and equipment used in the diagnosis,
| 10 | | analysis, or treatment of hospital patients purchased by a | 11 | | lessor who leases
the
equipment, under a lease of one year or | 12 | | longer executed or in effect at the
time the lessor would | 13 | | otherwise be subject to the tax imposed by this Act, to a
| 14 | | hospital
that has been issued an active tax exemption | 15 | | identification number by
the
Department under Section 1g of the | 16 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 17 | | manner that does not qualify for
this exemption or is used in | 18 | | any other non-exempt manner, the lessor
shall be liable for the
| 19 | | tax imposed under this Act or the Service Use Tax Act, as the | 20 | | case may
be, based on the fair market value of the property at | 21 | | the time the
non-qualifying use occurs. No lessor shall collect | 22 | | or attempt to collect an
amount (however
designated) that | 23 | | purports to reimburse that lessor for the tax imposed by this
| 24 | | Act or the Service Use Tax Act, as the case may be, if the tax | 25 | | has not been
paid by the lessor. If a lessor improperly | 26 | | collects any such amount from the
lessee, the lessee shall have |
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| 1 | | a legal right to claim a refund of that amount
from the lessor. | 2 | | If, however, that amount is not refunded to the lessee for
any | 3 | | reason, the lessor is liable to pay that amount to the | 4 | | Department.
| 5 | | (23) Personal property purchased by a lessor who leases the
| 6 | | property, under
a
lease of
one year or longer executed or in | 7 | | effect at the time
the lessor would otherwise be subject to the | 8 | | tax imposed by this Act,
to a governmental body
that has been | 9 | | issued an active sales tax exemption identification number by | 10 | | the
Department under Section 1g of the Retailers' Occupation | 11 | | Tax Act.
If the
property is leased in a manner that does not | 12 | | qualify for
this exemption
or used in any other non-exempt | 13 | | manner, the lessor shall be liable for the
tax imposed under | 14 | | this Act or the Service Use Tax Act, as the case may
be, based | 15 | | on the fair market value of the property at the time the
| 16 | | non-qualifying use occurs. No lessor shall collect or attempt | 17 | | to collect an
amount (however
designated) that purports to | 18 | | reimburse that lessor for the tax imposed by this
Act or the | 19 | | Service Use Tax Act, as the case may be, if the tax has not been
| 20 | | paid by the lessor. If a lessor improperly collects any such | 21 | | amount from the
lessee, the lessee shall have a legal right to | 22 | | claim a refund of that amount
from the lessor. If, however, | 23 | | that amount is not refunded to the lessee for
any reason, the | 24 | | lessor is liable to pay that amount to the Department.
| 25 | | (24) Beginning with taxable years ending on or after | 26 | | December
31, 1995
and
ending with taxable years ending on or |
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| 1 | | before December 31, 2004,
personal property that is
donated for | 2 | | disaster relief to be used in a State or federally declared
| 3 | | disaster area in Illinois or bordering Illinois by a | 4 | | manufacturer or retailer
that is registered in this State to a | 5 | | corporation, society, association,
foundation, or institution | 6 | | that has been issued a sales tax exemption
identification | 7 | | number by the Department that assists victims of the disaster
| 8 | | who reside within the declared disaster area.
| 9 | | (25) Beginning with taxable years ending on or after | 10 | | December
31, 1995 and
ending with taxable years ending on or | 11 | | before December 31, 2004, personal
property that is used in the | 12 | | performance of infrastructure repairs in this
State, including | 13 | | but not limited to municipal roads and streets, access roads,
| 14 | | bridges, sidewalks, waste disposal systems, water and sewer | 15 | | line extensions,
water distribution and purification | 16 | | facilities, storm water drainage and
retention facilities, and | 17 | | sewage treatment facilities, resulting from a State
or | 18 | | federally declared disaster in Illinois or bordering Illinois | 19 | | when such
repairs are initiated on facilities located in the | 20 | | declared disaster area
within 6 months after the disaster.
| 21 | | (26) Beginning July 1, 1999, game or game birds purchased | 22 | | at a "game
breeding
and hunting preserve area" as that term is
| 23 | | used in
the Wildlife Code. This paragraph is exempt from the | 24 | | provisions
of
Section 3-90.
| 25 | | (27) A motor vehicle, as that term is defined in Section | 26 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a |
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| 1 | | corporation, limited liability company,
society, association, | 2 | | foundation, or institution that is determined by the
Department | 3 | | to be organized and operated exclusively for educational | 4 | | purposes.
For purposes of this exemption, "a corporation, | 5 | | limited liability company,
society, association, foundation, | 6 | | or institution organized and operated
exclusively for | 7 | | educational purposes" means all tax-supported public schools,
| 8 | | private schools that offer systematic instruction in useful | 9 | | branches of
learning by methods common to public schools and | 10 | | that compare favorably in
their scope and intensity with the | 11 | | course of study presented in tax-supported
schools, and | 12 | | vocational or technical schools or institutes organized and
| 13 | | operated exclusively to provide a course of study of not less | 14 | | than 6 weeks
duration and designed to prepare individuals to | 15 | | follow a trade or to pursue a
manual, technical, mechanical, | 16 | | industrial, business, or commercial
occupation.
| 17 | | (28) Beginning January 1, 2000, personal property, | 18 | | including
food,
purchased through fundraising
events for the | 19 | | benefit of
a public or private elementary or
secondary school, | 20 | | a group of those schools, or one or more school
districts if | 21 | | the events are
sponsored by an entity recognized by the school | 22 | | district that consists
primarily of volunteers and includes
| 23 | | parents and teachers of the school children. This paragraph | 24 | | does not apply
to fundraising
events (i) for the benefit of | 25 | | private home instruction or (ii)
for which the fundraising | 26 | | entity purchases the personal property sold at
the events from |
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| 1 | | another individual or entity that sold the property for the
| 2 | | purpose of resale by the fundraising entity and that
profits | 3 | | from the sale to the
fundraising entity. This paragraph is | 4 | | exempt
from the provisions
of Section 3-90.
| 5 | | (29) Beginning January 1, 2000 and through December 31, | 6 | | 2001, new or
used automatic vending
machines that prepare and | 7 | | serve hot food and beverages, including coffee, soup,
and
other | 8 | | items, and replacement parts for these machines.
Beginning | 9 | | January 1,
2002 and through June 30, 2003, machines and parts | 10 | | for machines used in
commercial, coin-operated amusement and | 11 | | vending business if a use or occupation
tax is paid on the | 12 | | gross receipts derived from the use of the commercial,
| 13 | | coin-operated amusement and vending machines.
This
paragraph
| 14 | | is exempt from the provisions of Section 3-90.
| 15 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 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
nonprescription 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 ID/DD Community Care Act or the Specialized Mental |
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| 1 | | Health Rehabilitation Act.
| 2 | | (31) Beginning on
the effective date of this amendatory Act | 3 | | of the 92nd General Assembly,
computers and communications | 4 | | equipment
utilized for any hospital purpose and equipment used | 5 | | in the diagnosis,
analysis, or treatment of hospital patients | 6 | | purchased by a lessor who leases
the equipment, under a lease | 7 | | of one year or longer executed or in effect at the
time the | 8 | | lessor would otherwise be subject to the tax imposed by this | 9 | | Act, to a
hospital that has been issued an active tax exemption | 10 | | identification number by
the Department under Section 1g of the | 11 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 12 | | manner that does not qualify for this exemption or is
used in | 13 | | any other nonexempt manner, the lessor shall be liable for the | 14 | | tax
imposed under this Act or the Service Use Tax Act, as the | 15 | | case may be, based on
the fair market value of the property at | 16 | | the time the nonqualifying use
occurs. No lessor shall collect | 17 | | or attempt to collect an amount (however
designated) that | 18 | | purports to reimburse that lessor for the tax imposed by this
| 19 | | Act or the Service Use Tax Act, as the case may be, if the tax | 20 | | has not been
paid by the lessor. If a lessor improperly | 21 | | collects any such amount from the
lessee, the lessee shall have | 22 | | a legal right to claim a refund of that amount
from the lessor. | 23 | | If, however, that amount is not refunded to the lessee for
any | 24 | | reason, the lessor is liable to pay that amount to the | 25 | | Department.
This paragraph is exempt from the provisions of | 26 | | Section 3-90.
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| 1 | | (32) Beginning on
the effective date of this amendatory Act | 2 | | of the 92nd General Assembly,
personal property purchased by a | 3 | | lessor who leases the property,
under a lease of one year or | 4 | | longer executed or in effect at the time the
lessor would | 5 | | otherwise be subject to the tax imposed by this Act, to a
| 6 | | governmental body that has been issued an active sales tax | 7 | | exemption
identification number by the Department under | 8 | | Section 1g of the Retailers'
Occupation Tax Act. If the | 9 | | property is leased in a manner that does not
qualify for this | 10 | | exemption or used in any other nonexempt manner, the lessor
| 11 | | shall be liable for the tax imposed under this Act or the | 12 | | Service Use Tax Act,
as the case may be, based on the fair | 13 | | market value of the property at the time
the nonqualifying use | 14 | | occurs. No lessor shall collect or attempt to collect
an amount | 15 | | (however designated) that purports to reimburse that lessor for | 16 | | the
tax imposed by this Act or the Service Use Tax Act, as the | 17 | | case may be, if the
tax has not been paid by the lessor. If a | 18 | | lessor improperly collects any such
amount from the lessee, the | 19 | | lessee shall have a legal right to claim a refund
of that | 20 | | amount from the lessor. If, however, that amount is not | 21 | | refunded to
the lessee for any reason, the lessor is liable to | 22 | | pay that amount to the
Department. This paragraph is exempt | 23 | | from the provisions of Section 3-90.
| 24 | | (33) On and after July 1, 2003 and through June 30, 2004, | 25 | | the use in this State of motor vehicles of
the second division | 26 | | with a gross vehicle weight in excess of 8,000 pounds and
that |
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| 1 | | are subject to the commercial distribution fee imposed under | 2 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 3 | | 1, 2004 and through June 30, 2005, the use in this State of | 4 | | motor vehicles of the second division: (i) with a gross vehicle | 5 | | weight rating in excess of 8,000 pounds; (ii) that are subject | 6 | | to the commercial distribution fee imposed under Section | 7 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 8 | | primarily used for commercial purposes. Through June 30, 2005, | 9 | | this exemption applies to repair and
replacement parts added | 10 | | after the initial purchase of such a motor vehicle if
that | 11 | | motor
vehicle is used in a manner that would qualify for the | 12 | | rolling stock exemption
otherwise provided for in this Act. For | 13 | | purposes of this paragraph, the term "used for commercial | 14 | | purposes" means the transportation of persons or property in | 15 | | furtherance of any commercial or industrial enterprise, | 16 | | whether for-hire or not.
| 17 | | (34) Beginning January 1, 2008, tangible personal property | 18 | | used in the construction or maintenance of a community water | 19 | | supply, as defined under Section 3.145 of the Environmental | 20 | | Protection Act, that is operated by a not-for-profit | 21 | | corporation that holds a valid water supply permit issued under | 22 | | Title IV of the Environmental Protection Act. This paragraph is | 23 | | exempt from the provisions of Section 3-90. | 24 | | (35) Beginning January 1, 2010, materials, parts, | 25 | | equipment, components, and furnishings incorporated into or | 26 | | upon an aircraft as part of the modification, refurbishment, |
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| 1 | | completion, replacement, repair, or maintenance of the | 2 | | aircraft. This exemption includes consumable supplies used in | 3 | | the modification, refurbishment, completion, replacement, | 4 | | repair, and maintenance of aircraft, but excludes any | 5 | | materials, parts, equipment, components, and consumable | 6 | | supplies used in the modification, replacement, repair, and | 7 | | maintenance of aircraft engines or power plants, whether such | 8 | | engines or power plants are installed or uninstalled upon any | 9 | | such aircraft. "Consumable supplies" include, but are not | 10 | | limited to, adhesive, tape, sandpaper, general purpose | 11 | | lubricants, cleaning solution, latex gloves, and protective | 12 | | films. This exemption applies only to the use of qualifying | 13 | | tangible personal property by persons who modify, refurbish, | 14 | | complete, repair, replace, or maintain aircraft and who those | 15 | | organizations that (i) hold an Air Agency Certificate and are | 16 | | empowered to operate an approved repair station by the Federal | 17 | | Aviation Administration, (ii) have a Class IV Rating, and (iii) | 18 | | conduct operations in accordance with Part 145 of the Federal | 19 | | Aviation Regulations. The exemption does not include aircraft | 20 | | operated by a commercial air carrier providing scheduled | 21 | | passenger air service pursuant to authority issued under Part | 22 | | 121 or Part 129 of the Federal Aviation Regulations. The | 23 | | changes made to this paragraph (35) by this amendatory Act of | 24 | | the 98th General Assembly are declarative of existing law and | 25 | | are not a new enactment. | 26 | | (36) Tangible personal property purchased by a |
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| 1 | | public-facilities corporation, as described in Section | 2 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 3 | | constructing or furnishing a municipal convention hall, but | 4 | | only if the legal title to the municipal convention hall is | 5 | | transferred to the municipality without any further | 6 | | consideration by or on behalf of the municipality at the time | 7 | | of the completion of the municipal convention hall or upon the | 8 | | retirement or redemption of any bonds or other debt instruments | 9 | | issued by the public-facilities corporation in connection with | 10 | | the development of the municipal convention hall. This | 11 | | exemption includes existing public-facilities corporations as | 12 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 13 | | This paragraph is exempt from the provisions of Section 3-90. | 14 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 15 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 16 | | 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. | 17 | | 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
| 18 | | Section 10. The Service Use Tax Act is amended by changing | 19 | | Section 3-5 as follows:
| 20 | | (35 ILCS 110/3-5)
| 21 | | Sec. 3-5. Exemptions. Use of the following tangible | 22 | | personal property
is exempt from the tax imposed by this Act:
| 23 | | (1) Personal property purchased from a corporation, | 24 | | society,
association, foundation, institution, or |
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| 1 | | organization, other than a limited
liability company, that is | 2 | | organized and operated as a not-for-profit service
enterprise | 3 | | for the benefit of persons 65 years of age or older if the | 4 | | personal
property was not purchased by the enterprise for the | 5 | | purpose of resale by the
enterprise.
| 6 | | (2) Personal property purchased by a non-profit Illinois | 7 | | county fair
association for use in conducting, operating, or | 8 | | promoting the county fair.
| 9 | | (3) Personal property purchased by a not-for-profit arts
or | 10 | | cultural
organization that establishes, by proof required by | 11 | | the Department by rule,
that it has received an exemption under | 12 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 13 | | organized and operated primarily for the
presentation
or | 14 | | support of arts or cultural programming, activities, or | 15 | | services. These
organizations include, but are not limited to, | 16 | | music and dramatic arts
organizations such as symphony | 17 | | orchestras and theatrical groups, arts and
cultural service | 18 | | organizations, local arts councils, visual arts organizations,
| 19 | | and media arts organizations.
On and after the effective date | 20 | | of this amendatory Act of the 92nd General
Assembly, however, | 21 | | an entity otherwise eligible for this exemption shall not
make | 22 | | tax-free purchases unless it has an active identification | 23 | | number issued by
the Department.
| 24 | | (4) Legal tender, currency, medallions, or gold or silver | 25 | | coinage issued
by the State of Illinois, the government of the | 26 | | United States of America,
or the government of any foreign |
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| 1 | | country, and bullion.
| 2 | | (5) Until July 1, 2003 and beginning again on September 1, | 3 | | 2004 through August 30, 2014, graphic arts machinery and | 4 | | equipment, including
repair and
replacement parts, both new and | 5 | | used, and including that manufactured on
special order or | 6 | | purchased for lease, certified by the purchaser to be used
| 7 | | primarily for graphic arts production.
Equipment includes | 8 | | chemicals or
chemicals acting as catalysts but only if
the | 9 | | chemicals or chemicals acting as catalysts effect a direct and | 10 | | immediate
change upon a graphic arts product.
| 11 | | (6) Personal property purchased from a teacher-sponsored | 12 | | student
organization affiliated with an elementary or | 13 | | secondary school located
in Illinois.
| 14 | | (7) Farm machinery and equipment, both new and used, | 15 | | including that
manufactured on special order, certified by the | 16 | | purchaser to be used
primarily for production agriculture or | 17 | | State or federal agricultural
programs, including individual | 18 | | replacement parts for the machinery and
equipment, including | 19 | | machinery and equipment purchased for lease,
and including | 20 | | implements of husbandry defined in Section 1-130 of
the | 21 | | Illinois Vehicle Code, farm machinery and agricultural | 22 | | chemical and
fertilizer spreaders, and nurse wagons required to | 23 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 24 | | but
excluding other motor vehicles required to be registered | 25 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or | 26 | | hoop houses used for propagating, growing, or
overwintering |
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| 1 | | plants shall be considered farm machinery and equipment under
| 2 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 3 | | shall include units sold
separately from a motor vehicle | 4 | | required to be licensed and units sold mounted
on a motor | 5 | | vehicle required to be licensed if the selling price of the | 6 | | tender
is separately stated.
| 7 | | Farm machinery and equipment shall include precision | 8 | | farming equipment
that is
installed or purchased to be | 9 | | installed on farm machinery and equipment
including, but not | 10 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 11 | | or spreaders.
Precision farming equipment includes, but is not | 12 | | limited to,
soil testing sensors, computers, monitors, | 13 | | software, global positioning
and mapping systems, and other | 14 | | such equipment.
| 15 | | Farm machinery and equipment also includes computers, | 16 | | sensors, software, and
related equipment used primarily in the
| 17 | | computer-assisted operation of production agriculture | 18 | | facilities, equipment,
and activities such as, but
not limited | 19 | | to,
the collection, monitoring, and correlation of
animal and | 20 | | crop data for the purpose of
formulating animal diets and | 21 | | agricultural chemicals. This item (7) is exempt
from the | 22 | | provisions of
Section 3-75.
| 23 | | (8) Fuel and petroleum products sold to or used by an air | 24 | | common
carrier, certified by the carrier to be used for | 25 | | consumption, shipment, or
storage in the conduct of its | 26 | | business as an air common carrier, for a
flight destined for or |
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| 1 | | returning from a location or locations
outside the United | 2 | | States without regard to previous or subsequent domestic
| 3 | | stopovers.
| 4 | | (9) Proceeds of mandatory service charges separately | 5 | | stated on
customers' bills for the purchase and consumption of | 6 | | food and beverages
acquired as an incident to the purchase of a | 7 | | service from a serviceman, to
the extent that the proceeds of | 8 | | the service charge are in fact
turned over as tips or as a | 9 | | substitute for tips to the employees who
participate directly | 10 | | in preparing, serving, hosting or cleaning up the
food or | 11 | | beverage function with respect to which the service charge is | 12 | | imposed.
| 13 | | (10) Until July 1, 2003, oil field exploration, drilling, | 14 | | and production
equipment, including
(i) rigs and parts of rigs, | 15 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 16 | | tubular goods, including casing and
drill strings, (iii) pumps | 17 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 18 | | individual replacement part for oil field exploration,
| 19 | | drilling, and production equipment, and (vi) machinery and | 20 | | equipment purchased
for lease; but
excluding motor vehicles | 21 | | required to be registered under the Illinois
Vehicle Code.
| 22 | | (11) Proceeds from the sale of photoprocessing machinery | 23 | | and
equipment, including repair and replacement parts, both new | 24 | | and
used, including that manufactured on special order, | 25 | | certified by the
purchaser to be used primarily for | 26 | | photoprocessing, and including
photoprocessing machinery and |
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| 1 | | equipment purchased for lease.
| 2 | | (12) Until July 1, 2003, and beginning again on the | 3 | | effective date of this amendatory Act of the 97th General | 4 | | Assembly and thereafter, coal and aggregate exploration, | 5 | | mining, offhighway hauling,
processing,
maintenance, and | 6 | | reclamation equipment, including
replacement parts and | 7 | | equipment, and including
equipment purchased for lease, but | 8 | | excluding motor vehicles required to be
registered under the | 9 | | Illinois Vehicle Code.
| 10 | | (13) Semen used for artificial insemination of livestock | 11 | | for direct
agricultural production.
| 12 | | (14) Horses, or interests in horses, registered with and | 13 | | meeting the
requirements of any of the
Arabian Horse Club | 14 | | Registry of America, Appaloosa Horse Club, American Quarter
| 15 | | Horse Association, United States
Trotting Association, or | 16 | | Jockey Club, as appropriate, used for
purposes of breeding or | 17 | | racing for prizes. This item (14) is exempt from the provisions | 18 | | of Section 3-75, and the exemption provided for under this item | 19 | | (14) applies for all periods beginning May 30, 1995, but no | 20 | | claim for credit or refund is allowed on or after the effective | 21 | | date of this amendatory Act of the 95th General Assembly for | 22 | | such taxes paid during the period beginning May 30, 2000 and | 23 | | ending on the effective date of this amendatory Act of the 95th | 24 | | General Assembly.
| 25 | | (15) Computers and communications equipment utilized for | 26 | | any
hospital
purpose
and equipment used in the diagnosis,
|
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| 1 | | analysis, or treatment of hospital patients purchased by a | 2 | | lessor who leases
the
equipment, under a lease of one year or | 3 | | longer executed or in effect at the
time
the lessor would | 4 | | otherwise be subject to the tax imposed by this Act,
to a
| 5 | | hospital
that has been issued an active tax exemption | 6 | | identification number by the
Department under Section 1g of the | 7 | | Retailers' Occupation Tax Act.
If the
equipment is leased in a | 8 | | manner that does not qualify for
this exemption
or is used in | 9 | | any other non-exempt manner,
the lessor shall be liable for the
| 10 | | tax imposed under this Act or the Use Tax Act, as the case may
| 11 | | be, based on the fair market value of the property at the time | 12 | | the
non-qualifying use occurs. No lessor shall collect or | 13 | | attempt to collect an
amount (however
designated) that purports | 14 | | to reimburse that lessor for the tax imposed by this
Act or the | 15 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 16 | | the lessor. If a lessor improperly collects any such amount | 17 | | from the
lessee, the lessee shall have a legal right to claim a | 18 | | refund of that amount
from the lessor. If, however, that amount | 19 | | is not refunded to the lessee for
any reason, the lessor is | 20 | | liable to pay that amount to the Department.
| 21 | | (16) Personal property purchased by a lessor who leases the
| 22 | | property, under
a
lease of one year or longer executed or in | 23 | | effect at the time
the lessor would otherwise be subject to the | 24 | | tax imposed by this Act,
to a governmental body
that has been | 25 | | issued an active tax exemption identification number by the
| 26 | | Department under Section 1g of the Retailers' Occupation Tax |
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| 1 | | Act.
If the
property is leased in a manner that does not | 2 | | qualify for
this exemption
or is used in any other non-exempt | 3 | | manner,
the lessor shall be liable for the
tax imposed under | 4 | | this Act or the Use Tax Act, as the case may
be, based on the | 5 | | fair market value of the property at the time the
| 6 | | non-qualifying use occurs. No lessor shall collect or attempt | 7 | | to collect an
amount (however
designated) that purports to | 8 | | reimburse that lessor for the tax imposed by this
Act or the | 9 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 10 | | the lessor. If a lessor improperly collects any such amount | 11 | | from the
lessee, the lessee shall have a legal right to claim a | 12 | | refund of that amount
from the lessor. If, however, that amount | 13 | | is not refunded to the lessee for
any reason, the lessor is | 14 | | liable to pay that amount to the Department.
| 15 | | (17) Beginning with taxable years ending on or after | 16 | | December
31,
1995
and
ending with taxable years ending on or | 17 | | before December 31, 2004,
personal property that is
donated for | 18 | | disaster relief to be used in a State or federally declared
| 19 | | disaster area in Illinois or bordering Illinois by a | 20 | | manufacturer or retailer
that is registered in this State to a | 21 | | corporation, society, association,
foundation, or institution | 22 | | that has been issued a sales tax exemption
identification | 23 | | number by the Department that assists victims of the disaster
| 24 | | who reside within the declared disaster area.
| 25 | | (18) Beginning with taxable years ending on or after | 26 | | December
31, 1995 and
ending with taxable years ending on or |
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| 1 | | before December 31, 2004, personal
property that is used in the | 2 | | performance of infrastructure repairs in this
State, including | 3 | | but not limited to municipal roads and streets, access roads,
| 4 | | bridges, sidewalks, waste disposal systems, water and sewer | 5 | | line extensions,
water distribution and purification | 6 | | facilities, storm water drainage and
retention facilities, and | 7 | | sewage treatment facilities, resulting from a State
or | 8 | | federally declared disaster in Illinois or bordering Illinois | 9 | | when such
repairs are initiated on facilities located in the | 10 | | declared disaster area
within 6 months after the disaster.
| 11 | | (19) Beginning July 1, 1999, game or game birds purchased | 12 | | at a "game
breeding
and hunting preserve area" as that term is
| 13 | | used in
the Wildlife Code. This paragraph is exempt from the | 14 | | provisions
of
Section 3-75.
| 15 | | (20) A motor vehicle, as that term is defined in Section | 16 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 17 | | corporation, limited liability
company, society, association, | 18 | | foundation, or institution that is determined by
the Department | 19 | | to be organized and operated exclusively for educational
| 20 | | purposes. For purposes of this exemption, "a corporation, | 21 | | limited liability
company, society, association, foundation, | 22 | | or institution organized and
operated
exclusively for | 23 | | educational purposes" means all tax-supported public schools,
| 24 | | private schools that offer systematic instruction in useful | 25 | | branches of
learning by methods common to public schools and | 26 | | that compare favorably in
their scope and intensity with the |
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| 1 | | course of study presented in tax-supported
schools, and | 2 | | vocational or technical schools or institutes organized and
| 3 | | operated exclusively to provide a course of study of not less | 4 | | than 6 weeks
duration and designed to prepare individuals to | 5 | | follow a trade or to pursue a
manual, technical, mechanical, | 6 | | industrial, business, or commercial
occupation.
| 7 | | (21) Beginning January 1, 2000, personal property, | 8 | | including
food,
purchased through fundraising
events for the | 9 | | benefit of
a public or private elementary or
secondary school, | 10 | | a group of those schools, or one or more school
districts if | 11 | | the events are
sponsored by an entity recognized by the school | 12 | | district that consists
primarily of volunteers and includes
| 13 | | parents and teachers of the school children. This paragraph | 14 | | does not apply
to fundraising
events (i) for the benefit of | 15 | | private home instruction or (ii)
for which the fundraising | 16 | | entity purchases the personal property sold at
the events from | 17 | | another individual or entity that sold the property for the
| 18 | | purpose of resale by the fundraising entity and that
profits | 19 | | from the sale to the
fundraising entity. This paragraph is | 20 | | exempt
from the provisions
of Section 3-75.
| 21 | | (22) Beginning January 1, 2000
and through December 31, | 22 | | 2001, new or used automatic vending
machines that prepare and | 23 | | serve hot food and beverages, including coffee, soup,
and
other | 24 | | items, and replacement parts for these machines.
Beginning | 25 | | January 1,
2002 and through June 30, 2003, machines and parts | 26 | | for machines used in
commercial, coin-operated
amusement
and |
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| 1 | | vending business if a use or occupation tax is paid on the | 2 | | gross receipts
derived from
the use of the commercial, | 3 | | coin-operated amusement and vending machines.
This
paragraph
| 4 | | is exempt from the provisions of Section 3-75.
| 5 | | (23) Beginning August 23, 2001 and through June 30, 2016, | 6 | | food for human consumption that is to be consumed off the
| 7 | | premises
where it is sold (other than alcoholic beverages, soft | 8 | | drinks, and food that
has been prepared for immediate | 9 | | consumption) and prescription and
nonprescription medicines, | 10 | | drugs, medical appliances, and insulin, urine
testing | 11 | | materials, syringes, and needles used by diabetics, for human | 12 | | use, when
purchased for use by a person receiving medical | 13 | | assistance under Article V of
the Illinois Public Aid Code who | 14 | | resides in a licensed long-term care facility,
as defined in | 15 | | the Nursing Home Care Act, or in a licensed facility as defined | 16 | | in the ID/DD Community Care Act or the Specialized Mental | 17 | | Health Rehabilitation Act.
| 18 | | (24) Beginning on the effective date of this amendatory Act | 19 | | of the 92nd
General Assembly, computers and communications | 20 | | equipment
utilized for any hospital purpose and equipment used | 21 | | in the diagnosis,
analysis, or treatment of hospital patients | 22 | | purchased by a lessor who leases
the equipment, under a lease | 23 | | of one year or longer executed or in effect at the
time the | 24 | | lessor would otherwise be subject to the tax imposed by this | 25 | | Act, to a
hospital that has been issued an active tax exemption | 26 | | identification number by
the Department under Section 1g of the |
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| 1 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 2 | | manner that does not qualify for this exemption or is
used in | 3 | | any other nonexempt manner, the lessor shall be liable for the
| 4 | | tax imposed under this Act or the Use Tax Act, as the case may | 5 | | be, based on the
fair market value of the property at the time | 6 | | the nonqualifying use occurs.
No lessor shall collect or | 7 | | attempt to collect an amount (however
designated) that purports | 8 | | to reimburse that lessor for the tax imposed by this
Act or the | 9 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 10 | | the lessor. If a lessor improperly collects any such amount | 11 | | from the
lessee, the lessee shall have a legal right to claim a | 12 | | refund of that amount
from the lessor. If, however, that amount | 13 | | is not refunded to the lessee for
any reason, the lessor is | 14 | | liable to pay that amount to the Department.
This paragraph is | 15 | | exempt from the provisions of Section 3-75.
| 16 | | (25) Beginning
on the effective date of this amendatory Act | 17 | | of the 92nd General Assembly,
personal property purchased by a | 18 | | lessor
who leases the property, under a lease of one year or | 19 | | longer executed or in
effect at the time the lessor would | 20 | | otherwise be subject to the tax imposed by
this Act, to a | 21 | | governmental body that has been issued an active tax exemption
| 22 | | identification number by the Department under Section 1g of the | 23 | | Retailers'
Occupation Tax Act. If the property is leased in a | 24 | | manner that does not
qualify for this exemption or is used in | 25 | | any other nonexempt manner, the
lessor shall be liable for the | 26 | | tax imposed under this Act or the Use Tax Act,
as the case may |
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| 1 | | be, based on the fair market value of the property at the time
| 2 | | the nonqualifying use occurs. No lessor shall collect or | 3 | | attempt to collect
an amount (however designated) that purports | 4 | | to reimburse that lessor for the
tax imposed by this Act or the | 5 | | Use Tax Act, as the case may be, if the tax has
not been paid by | 6 | | the lessor. If a lessor improperly collects any such amount
| 7 | | from the lessee, the lessee shall have a legal right to claim a | 8 | | refund of that
amount from the lessor. If, however, that amount | 9 | | is not refunded to the lessee
for any reason, the lessor is | 10 | | liable to pay that amount to the Department.
This paragraph is | 11 | | exempt from the provisions of Section 3-75.
| 12 | | (26) Beginning January 1, 2008, tangible personal property | 13 | | used in the construction or maintenance of a community water | 14 | | supply, as defined under Section 3.145 of the Environmental | 15 | | Protection Act, that is operated by a not-for-profit | 16 | | corporation that holds a valid water supply permit issued under | 17 | | Title IV of the Environmental Protection Act. This paragraph is | 18 | | exempt from the provisions of Section 3-75.
| 19 | | (27) Beginning January 1, 2010, materials, parts, | 20 | | equipment, components, and furnishings incorporated into or | 21 | | upon an aircraft as part of the modification, refurbishment, | 22 | | completion, replacement, repair, or maintenance of the | 23 | | aircraft. This exemption includes consumable supplies used in | 24 | | the modification, refurbishment, completion, replacement, | 25 | | repair, and maintenance of aircraft, but excludes any | 26 | | materials, parts, equipment, components, and consumable |
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| 1 | | supplies used in the modification, replacement, repair, and | 2 | | maintenance of aircraft engines or power plants, whether such | 3 | | engines or power plants are installed or uninstalled upon any | 4 | | such aircraft. "Consumable supplies" include, but are not | 5 | | limited to, adhesive, tape, sandpaper, general purpose | 6 | | lubricants, cleaning solution, latex gloves, and protective | 7 | | films. This exemption applies only to the use of qualifying | 8 | | tangible personal property transferred incident to the | 9 | | modification, refurbishment, completion, replacement, repair, | 10 | | or maintenance of aircraft by persons who those organizations | 11 | | that (i) hold an Air Agency Certificate and are empowered to | 12 | | operate an approved repair station by the Federal Aviation | 13 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 14 | | operations in accordance with Part 145 of the Federal Aviation | 15 | | Regulations. The exemption does not include aircraft operated | 16 | | by a commercial air carrier providing scheduled passenger air | 17 | | service pursuant to authority issued under Part 121 or Part 129 | 18 | | of the Federal Aviation Regulations. The changes made to this | 19 | | paragraph (27) by this amendatory Act of the 98th General | 20 | | Assembly are declarative of existing law and are not a new | 21 | | enactment. | 22 | | (28) Tangible personal property purchased by a | 23 | | public-facilities corporation, as described in Section | 24 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 25 | | constructing or furnishing a municipal convention hall, but | 26 | | only if the legal title to the municipal convention hall is |
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| 1 | | transferred to the municipality without any further | 2 | | consideration by or on behalf of the municipality at the time | 3 | | of the completion of the municipal convention hall or upon the | 4 | | retirement or redemption of any bonds or other debt instruments | 5 | | issued by the public-facilities corporation in connection with | 6 | | the development of the municipal convention hall. This | 7 | | exemption includes existing public-facilities corporations as | 8 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 9 | | This paragraph is exempt from the provisions of Section 3-75. | 10 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 11 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 12 | | 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. | 13 | | 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
| 14 | | Section 15. The Service Occupation Tax Act is amended by | 15 | | changing Section 3-5 as follows:
| 16 | | (35 ILCS 115/3-5)
| 17 | | Sec. 3-5. Exemptions. The following tangible personal | 18 | | property is
exempt from the tax imposed by this Act:
| 19 | | (1) Personal property sold by a corporation, society, | 20 | | association,
foundation, institution, or organization, other | 21 | | than a limited liability
company, that is organized and | 22 | | operated as a not-for-profit service enterprise
for the benefit | 23 | | of persons 65 years of age or older if the personal property
| 24 | | was not purchased by the enterprise for the purpose of resale |
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| 1 | | by the
enterprise.
| 2 | | (2) Personal property purchased by a not-for-profit | 3 | | Illinois county fair
association for use in conducting, | 4 | | operating, or promoting the county fair.
| 5 | | (3) Personal property purchased by any not-for-profit
arts | 6 | | or cultural organization that establishes, by proof required by | 7 | | the
Department by
rule, that it has received an exemption under | 8 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 9 | | organized and operated primarily for the
presentation
or | 10 | | support of arts or cultural programming, activities, or | 11 | | services. These
organizations include, but are not limited to, | 12 | | music and dramatic arts
organizations such as symphony | 13 | | orchestras and theatrical groups, arts and
cultural service | 14 | | organizations, local arts councils, visual arts organizations,
| 15 | | and media arts organizations.
On and after the effective date | 16 | | of this amendatory Act of the 92nd General
Assembly, however, | 17 | | an entity otherwise eligible for this exemption shall not
make | 18 | | tax-free purchases unless it has an active identification | 19 | | number issued by
the Department.
| 20 | | (4) Legal tender, currency, medallions, or gold or silver | 21 | | coinage
issued by the State of Illinois, the government of the | 22 | | United States of
America, or the government of any foreign | 23 | | country, and bullion.
| 24 | | (5) Until July 1, 2003 and beginning again on September 1, | 25 | | 2004 through August 30, 2014, graphic arts machinery and | 26 | | equipment, including
repair and
replacement parts, both new and |
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| 1 | | used, and including that manufactured on
special order or | 2 | | purchased for lease, certified by the purchaser to be used
| 3 | | primarily for graphic arts production.
Equipment includes | 4 | | chemicals or chemicals acting as catalysts but only if
the
| 5 | | chemicals or chemicals acting as catalysts effect a direct and | 6 | | immediate change
upon a graphic arts product.
| 7 | | (6) Personal property sold by a teacher-sponsored student | 8 | | organization
affiliated with an elementary or secondary school | 9 | | located in Illinois.
| 10 | | (7) Farm machinery and equipment, both new and used, | 11 | | including that
manufactured on special order, certified by the | 12 | | purchaser to be used
primarily for production agriculture or | 13 | | State or federal agricultural
programs, including individual | 14 | | replacement parts for the machinery and
equipment, including | 15 | | machinery and equipment purchased for lease,
and including | 16 | | implements of husbandry defined in Section 1-130 of
the | 17 | | Illinois Vehicle Code, farm machinery and agricultural | 18 | | chemical and
fertilizer spreaders, and nurse wagons required to | 19 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 20 | | but
excluding other motor vehicles required to be registered | 21 | | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 22 | | hoop houses used for propagating, growing, or
overwintering | 23 | | plants shall be considered farm machinery and equipment under
| 24 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 25 | | shall include units sold
separately from a motor vehicle | 26 | | required to be licensed and units sold mounted
on a motor |
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| 1 | | vehicle required to be licensed if the selling price of the | 2 | | tender
is separately stated.
| 3 | | Farm machinery and equipment shall include precision | 4 | | farming equipment
that is
installed or purchased to be | 5 | | installed on farm machinery and equipment
including, but not | 6 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 7 | | or spreaders.
Precision farming equipment includes, but is not | 8 | | limited to,
soil testing sensors, computers, monitors, | 9 | | software, global positioning
and mapping systems, and other | 10 | | such equipment.
| 11 | | Farm machinery and equipment also includes computers, | 12 | | sensors, software, and
related equipment used primarily in the
| 13 | | computer-assisted operation of production agriculture | 14 | | facilities, equipment,
and activities such as, but
not limited | 15 | | to,
the collection, monitoring, and correlation of
animal and | 16 | | crop data for the purpose of
formulating animal diets and | 17 | | agricultural chemicals. This item (7) is exempt
from the | 18 | | provisions of
Section 3-55.
| 19 | | (8) Fuel and petroleum products sold to or used by an air | 20 | | common
carrier, certified by the carrier to be used for | 21 | | consumption, shipment,
or storage in the conduct of its | 22 | | business as an air common carrier, for
a flight destined for or | 23 | | returning from a location or locations
outside the United | 24 | | States without regard to previous or subsequent domestic
| 25 | | stopovers.
| 26 | | (9) Proceeds of mandatory service charges separately
|
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| 1 | | stated on customers' bills for the purchase and consumption of | 2 | | food and
beverages, to the extent that the proceeds of the | 3 | | service charge are in fact
turned over as tips or as a | 4 | | substitute for tips to the employees who
participate directly | 5 | | in preparing, serving, hosting or cleaning up the
food or | 6 | | beverage function with respect to which the service charge is | 7 | | imposed.
| 8 | | (10) Until July 1, 2003, oil field exploration, drilling, | 9 | | and production
equipment,
including (i) rigs and parts of rigs, | 10 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 11 | | tubular goods, including casing and
drill strings, (iii) pumps | 12 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 13 | | individual replacement part for oil field exploration,
| 14 | | drilling, and production equipment, and (vi) machinery and | 15 | | equipment purchased
for lease; but
excluding motor vehicles | 16 | | required to be registered under the Illinois
Vehicle Code.
| 17 | | (11) Photoprocessing machinery and equipment, including | 18 | | repair and
replacement parts, both new and used, including that | 19 | | manufactured on
special order, certified by the purchaser to be | 20 | | used primarily for
photoprocessing, and including | 21 | | photoprocessing machinery and equipment
purchased for lease.
| 22 | | (12) Until July 1, 2003, and beginning again on the | 23 | | effective date of this amendatory Act of the 97th General | 24 | | Assembly and thereafter, coal and aggregate exploration, | 25 | | mining, offhighway hauling,
processing,
maintenance, and | 26 | | reclamation equipment, including
replacement parts and |
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| 1 | | equipment, and including
equipment
purchased for lease, but | 2 | | excluding motor vehicles required to be registered
under the | 3 | | Illinois Vehicle Code.
| 4 | | (13) Beginning January 1, 1992 and through June 30, 2016, | 5 | | food for human consumption that is to be consumed off the | 6 | | premises
where it is sold (other than alcoholic beverages, soft | 7 | | drinks and food that
has been prepared for immediate | 8 | | consumption) and prescription and
non-prescription medicines, | 9 | | drugs, medical appliances, and insulin, urine
testing | 10 | | materials, syringes, and needles used by diabetics, for human | 11 | | use,
when purchased for use by a person receiving medical | 12 | | assistance under
Article V of the Illinois Public Aid Code who | 13 | | resides in a licensed
long-term care facility, as defined in | 14 | | the Nursing Home Care Act, or in a licensed facility as defined | 15 | | in the ID/DD Community Care Act or the Specialized Mental | 16 | | Health Rehabilitation Act.
| 17 | | (14) Semen used for artificial insemination of livestock | 18 | | for direct
agricultural production.
| 19 | | (15) Horses, or interests in horses, registered with and | 20 | | meeting the
requirements of any of the
Arabian Horse Club | 21 | | Registry of America, Appaloosa Horse Club, American Quarter
| 22 | | Horse Association, United States
Trotting Association, or | 23 | | Jockey Club, as appropriate, used for
purposes of breeding or | 24 | | racing for prizes. This item (15) is exempt from the provisions | 25 | | of Section 3-55, and the exemption provided for under this item | 26 | | (15) applies for all periods beginning May 30, 1995, but no |
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| 1 | | claim for credit or refund is allowed on or after January 1, | 2 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 3 | | paid during the period beginning May 30, 2000 and ending on | 4 | | January 1, 2008 (the effective date of Public Act 95-88).
| 5 | | (16) Computers and communications equipment utilized for | 6 | | any
hospital
purpose
and equipment used in the diagnosis,
| 7 | | analysis, or treatment of hospital patients sold to a lessor | 8 | | who leases the
equipment, under a lease of one year or longer | 9 | | executed or in effect at the
time of the purchase, to a
| 10 | | hospital
that has been issued an active tax exemption | 11 | | identification number by the
Department under Section 1g of the | 12 | | Retailers' Occupation Tax Act.
| 13 | | (17) Personal property sold to a lessor who leases the
| 14 | | property, under a
lease of one year or longer executed or in | 15 | | effect at the time of the purchase,
to a governmental body
that | 16 | | has been issued an active tax exemption identification number | 17 | | by the
Department under Section 1g of the Retailers' Occupation | 18 | | Tax Act.
| 19 | | (18) Beginning with taxable years ending on or after | 20 | | December
31, 1995
and
ending with taxable years ending on or | 21 | | before December 31, 2004,
personal property that is
donated for | 22 | | disaster relief to be used in a State or federally declared
| 23 | | disaster area in Illinois or bordering Illinois by a | 24 | | manufacturer or retailer
that is registered in this State to a | 25 | | corporation, society, association,
foundation, or institution | 26 | | that has been issued a sales tax exemption
identification |
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| 1 | | number by the Department that assists victims of the disaster
| 2 | | who reside within the declared disaster area.
| 3 | | (19) 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 used in the | 6 | | performance of infrastructure repairs in this
State, including | 7 | | but not limited to municipal roads and streets, access roads,
| 8 | | bridges, sidewalks, waste disposal systems, water and sewer | 9 | | line extensions,
water distribution and purification | 10 | | facilities, storm water drainage and
retention facilities, and | 11 | | sewage treatment facilities, resulting from a State
or | 12 | | federally declared disaster in Illinois or bordering Illinois | 13 | | when such
repairs are initiated on facilities located in the | 14 | | declared disaster area
within 6 months after the disaster.
| 15 | | (20) Beginning July 1, 1999, game or game birds sold at a | 16 | | "game breeding
and
hunting preserve area" as that term is used
| 17 | | in the
Wildlife Code. This paragraph is exempt from the | 18 | | provisions
of
Section 3-55.
| 19 | | (21) A motor vehicle, as that term is defined in Section | 20 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 21 | | corporation, limited liability
company, society, association, | 22 | | foundation, or institution that is determined by
the Department | 23 | | to be organized and operated exclusively for educational
| 24 | | purposes. For purposes of this exemption, "a corporation, | 25 | | limited liability
company, society, association, foundation, | 26 | | or institution organized and
operated
exclusively for |
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| 1 | | educational purposes" means all tax-supported public schools,
| 2 | | private schools that offer systematic instruction in useful | 3 | | branches of
learning by methods common to public schools and | 4 | | that compare favorably in
their scope and intensity with the | 5 | | course of study presented in tax-supported
schools, and | 6 | | vocational or technical schools or institutes organized and
| 7 | | operated exclusively to provide a course of study of not less | 8 | | than 6 weeks
duration and designed to prepare individuals to | 9 | | follow a trade or to pursue a
manual, technical, mechanical, | 10 | | industrial, business, or commercial
occupation.
| 11 | | (22) Beginning January 1, 2000, personal property, | 12 | | including
food,
purchased through fundraising
events for the | 13 | | benefit of
a public or private elementary or
secondary school, | 14 | | a group of those schools, or one or more school
districts if | 15 | | the events are
sponsored by an entity recognized by the school | 16 | | district that consists
primarily of volunteers and includes
| 17 | | parents and teachers of the school children. This paragraph | 18 | | does not apply
to fundraising
events (i) for the benefit of | 19 | | private home instruction or (ii)
for which the fundraising | 20 | | entity purchases the personal property sold at
the events from | 21 | | another individual or entity that sold the property for the
| 22 | | purpose of resale by the fundraising entity and that
profits | 23 | | from the sale to the
fundraising entity. This paragraph is | 24 | | exempt
from the provisions
of Section 3-55.
| 25 | | (23) Beginning January 1, 2000
and through December 31, | 26 | | 2001, new or used automatic vending
machines that prepare and |
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| 1 | | serve hot food and beverages, including coffee, soup,
and
other | 2 | | items, and replacement parts for these machines.
Beginning | 3 | | January 1,
2002 and through June 30, 2003, machines and parts | 4 | | for
machines used in commercial, coin-operated amusement
and | 5 | | vending business if a use or occupation tax is paid on the | 6 | | gross receipts
derived from
the use of the commercial, | 7 | | coin-operated amusement and vending machines.
This paragraph | 8 | | is exempt from the provisions of Section 3-55.
| 9 | | (24) Beginning
on the effective date of this amendatory Act | 10 | | of the 92nd General Assembly,
computers and communications | 11 | | equipment
utilized for any hospital purpose and equipment used | 12 | | in the diagnosis,
analysis, or treatment of hospital patients | 13 | | sold to a lessor who leases the
equipment, under a lease of one | 14 | | year or longer executed or in effect at the
time of the | 15 | | purchase, to a hospital that has been issued an active tax
| 16 | | exemption identification number by the Department under | 17 | | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 18 | | is exempt from the provisions of
Section 3-55.
| 19 | | (25) Beginning
on the effective date of this amendatory Act | 20 | | of the 92nd General Assembly,
personal property sold to a | 21 | | lessor who
leases the property, under a lease of one year or | 22 | | longer executed or in effect
at the time of the purchase, to a | 23 | | governmental body that has been issued an
active tax exemption | 24 | | identification number by the Department under Section 1g
of the | 25 | | Retailers' Occupation Tax Act. This paragraph is exempt from | 26 | | the
provisions of Section 3-55.
|
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| 1 | | (26) Beginning on January 1, 2002 and through June 30, | 2 | | 2016, tangible personal property
purchased
from an Illinois | 3 | | retailer by a taxpayer engaged in centralized purchasing
| 4 | | activities in Illinois who will, upon receipt of the property | 5 | | in Illinois,
temporarily store the property in Illinois (i) for | 6 | | the purpose of subsequently
transporting it outside this State | 7 | | for use or consumption thereafter solely
outside this State or | 8 | | (ii) for the purpose of being processed, fabricated, or
| 9 | | manufactured into, attached to, or incorporated into other | 10 | | tangible personal
property to be transported outside this State | 11 | | and thereafter used or consumed
solely outside this State. The | 12 | | Director of Revenue shall, pursuant to rules
adopted in | 13 | | accordance with the Illinois Administrative Procedure Act, | 14 | | issue a
permit to any taxpayer in good standing with the | 15 | | Department who is eligible for
the exemption under this | 16 | | paragraph (26). The permit issued under
this paragraph (26) | 17 | | shall authorize the holder, to the extent and
in the manner | 18 | | specified in the rules adopted under this Act, to purchase
| 19 | | tangible personal property from a retailer exempt from the | 20 | | taxes imposed by
this Act. Taxpayers shall maintain all | 21 | | necessary books and records to
substantiate the use and | 22 | | consumption of all such tangible personal property
outside of | 23 | | the State of Illinois.
| 24 | | (27) Beginning January 1, 2008, tangible personal property | 25 | | used in the construction or maintenance of a community water | 26 | | supply, as defined under Section 3.145 of the Environmental |
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| 1 | | Protection Act, that is operated by a not-for-profit | 2 | | corporation that holds a valid water supply permit issued under | 3 | | Title IV of the Environmental Protection Act. This paragraph is | 4 | | exempt from the provisions of Section 3-55.
| 5 | | (28) Tangible personal property sold to a | 6 | | public-facilities corporation, as described in Section | 7 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 8 | | constructing or furnishing a municipal convention hall, but | 9 | | only if the legal title to the municipal convention hall is | 10 | | transferred to the municipality without any further | 11 | | consideration by or on behalf of the municipality at the time | 12 | | of the completion of the municipal convention hall or upon the | 13 | | retirement or redemption of any bonds or other debt instruments | 14 | | issued by the public-facilities corporation in connection with | 15 | | the development of the municipal convention hall. This | 16 | | exemption includes existing public-facilities corporations as | 17 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 18 | | This paragraph is exempt from the provisions of Section 3-55. | 19 | | (29) Beginning January 1, 2010, materials, parts, | 20 | | equipment, components, and furnishings incorporated into or | 21 | | upon an aircraft as part of the modification, refurbishment, | 22 | | completion, replacement, repair, or maintenance of the | 23 | | aircraft. This exemption includes consumable supplies used in | 24 | | the modification, refurbishment, completion, replacement, | 25 | | repair, and maintenance of aircraft, but excludes any | 26 | | materials, parts, equipment, components, and consumable |
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| 1 | | supplies used in the modification, replacement, repair, and | 2 | | maintenance of aircraft engines or power plants, whether such | 3 | | engines or power plants are installed or uninstalled upon any | 4 | | such aircraft. "Consumable supplies" include, but are not | 5 | | limited to, adhesive, tape, sandpaper, general purpose | 6 | | lubricants, cleaning solution, latex gloves, and protective | 7 | | films. This exemption applies only to the transfer of | 8 | | qualifying tangible personal property incident to the | 9 | | modification, refurbishment, completion, replacement, repair, | 10 | | or maintenance of an aircraft to persons who those | 11 | | organizations that (i) hold an Air Agency Certificate and are | 12 | | empowered to operate an approved repair station by the Federal | 13 | | Aviation Administration, (ii) have a Class IV Rating, and (iii) | 14 | | conduct operations in accordance with Part 145 of the Federal | 15 | | Aviation Regulations. The exemption does not include aircraft | 16 | | operated by a commercial air carrier providing scheduled | 17 | | passenger air service pursuant to authority issued under Part | 18 | | 121 or Part 129 of the Federal Aviation Regulations. The | 19 | | changes made to this paragraph (29) by this amendatory Act of | 20 | | the 98th General Assembly are declarative of existing law and | 21 | | are not a new enactment. | 22 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 23 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 24 | | 7-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. | 25 | | 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. | 26 | | 7-9-12.)
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| 1 | | Section 20. The Retailers' Occupation Tax Act is amended by | 2 | | changing Section 2-5 as follows:
| 3 | | (35 ILCS 120/2-5)
| 4 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 5 | | sale of
the following tangible personal property are exempt | 6 | | from the tax imposed
by this Act:
| 7 | | (1) Farm chemicals.
| 8 | | (2) Farm machinery and equipment, both new and used, | 9 | | including that
manufactured on special order, certified by the | 10 | | purchaser to be used
primarily for production agriculture or | 11 | | State or federal agricultural
programs, including individual | 12 | | replacement parts for the machinery and
equipment, including | 13 | | machinery and equipment purchased for lease,
and including | 14 | | implements of husbandry defined in Section 1-130 of
the | 15 | | Illinois Vehicle Code, farm machinery and agricultural | 16 | | chemical and
fertilizer spreaders, and nurse wagons required to | 17 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 18 | | but
excluding other motor vehicles required to be registered | 19 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or | 20 | | hoop houses used for propagating, growing, or
overwintering | 21 | | plants shall be considered farm machinery and equipment under
| 22 | | this item (2).
Agricultural chemical tender tanks and dry boxes | 23 | | shall include units sold
separately from a motor vehicle | 24 | | required to be licensed and units sold mounted
on a motor |
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| 1 | | vehicle required to be licensed, if the selling price of the | 2 | | tender
is separately stated.
| 3 | | Farm machinery and equipment shall include precision | 4 | | farming equipment
that is
installed or purchased to be | 5 | | installed on farm machinery and equipment
including, but not | 6 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 7 | | or spreaders.
Precision farming equipment includes, but is not | 8 | | limited to,
soil testing sensors, computers, monitors, | 9 | | software, global positioning
and mapping systems, and other | 10 | | such equipment.
| 11 | | Farm machinery and equipment also includes computers, | 12 | | sensors, software, and
related equipment used primarily in the
| 13 | | computer-assisted operation of production agriculture | 14 | | facilities, equipment,
and activities such as, but
not limited | 15 | | to,
the collection, monitoring, and correlation of
animal and | 16 | | crop data for the purpose of
formulating animal diets and | 17 | | agricultural chemicals. This item (2) is exempt
from the | 18 | | provisions of
Section 2-70.
| 19 | | (3) Until July 1, 2003, distillation machinery and | 20 | | equipment, sold as a
unit or kit,
assembled or installed by the | 21 | | retailer, certified by the user to be used
only for the | 22 | | production of ethyl alcohol that will be used for consumption
| 23 | | as motor fuel or as a component of motor fuel for the personal | 24 | | use of the
user, and not subject to sale or resale.
| 25 | | (4) Until July 1, 2003 and beginning again September 1, | 26 | | 2004 through August 30, 2014, graphic arts machinery and |
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| 1 | | equipment, including
repair and
replacement parts, both new and | 2 | | used, and including that manufactured on
special order or | 3 | | purchased for lease, certified by the purchaser to be used
| 4 | | primarily for graphic arts production.
Equipment includes | 5 | | chemicals or
chemicals acting as catalysts but only if
the | 6 | | chemicals or chemicals acting as catalysts effect a direct and | 7 | | immediate
change upon a
graphic arts product.
| 8 | | (5) A motor vehicle of the first division, a motor vehicle | 9 | | of the second division that is a self contained motor vehicle | 10 | | designed or permanently converted to provide living quarters | 11 | | for recreational, camping, or travel use, with direct walk | 12 | | through access to the living quarters from the driver's seat, | 13 | | or a motor vehicle of the second division that is of the van | 14 | | configuration designed for the transportation of not less than | 15 | | 7 nor more than 16 passengers, as defined in Section 1-146 of | 16 | | the Illinois Vehicle Code, that is used for automobile renting, | 17 | | as defined in the Automobile Renting Occupation and Use Tax | 18 | | Act. This paragraph is exempt from
the provisions of Section | 19 | | 2-70.
| 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) Until July 1, 2003, proceeds of that portion of the | 24 | | selling price of
a passenger car the
sale of which is subject | 25 | | to the Replacement Vehicle Tax.
| 26 | | (8) Personal property sold to an Illinois county fair |
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| 1 | | association for
use in conducting, operating, or promoting the | 2 | | county fair.
| 3 | | (9) Personal property sold to a not-for-profit arts
or | 4 | | cultural organization that establishes, by proof required by | 5 | | the Department
by
rule, that it has received an exemption under | 6 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 7 | | organized and operated primarily for the
presentation
or | 8 | | support of arts or cultural programming, activities, or | 9 | | services. These
organizations include, but are not limited to, | 10 | | music and dramatic arts
organizations such as symphony | 11 | | orchestras and theatrical groups, arts and
cultural service | 12 | | organizations, local arts councils, visual arts organizations,
| 13 | | and media arts organizations.
On and after the effective date | 14 | | of this amendatory Act of the 92nd General
Assembly, however, | 15 | | an entity otherwise eligible for this exemption shall not
make | 16 | | tax-free purchases unless it has an active identification | 17 | | number issued by
the Department.
| 18 | | (10) Personal property sold by a corporation, society, | 19 | | association,
foundation, institution, or organization, other | 20 | | than a limited liability
company, that is organized and | 21 | | operated as a not-for-profit service enterprise
for the benefit | 22 | | of persons 65 years of age or older if the personal property
| 23 | | was not purchased by the enterprise for the purpose of resale | 24 | | by the
enterprise.
| 25 | | (11) Personal property sold to a governmental body, to a | 26 | | corporation,
society, association, foundation, or institution |
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| 1 | | organized and operated
exclusively for charitable, religious, | 2 | | or educational purposes, or to a
not-for-profit corporation, | 3 | | society, association, foundation, institution,
or organization | 4 | | that has no compensated officers or employees and that is
| 5 | | organized and operated primarily for the recreation of persons | 6 | | 55 years of
age or older. A limited liability company may | 7 | | qualify for the exemption under
this paragraph only if the | 8 | | limited liability company is organized and operated
| 9 | | exclusively for educational purposes. On and after July 1, | 10 | | 1987, however, no
entity otherwise eligible for this exemption | 11 | | shall make tax-free purchases
unless it has an active | 12 | | identification number issued by the Department.
| 13 | | (12) Tangible personal property sold to
interstate | 14 | | carriers
for hire for use as
rolling stock moving in interstate | 15 | | commerce or to lessors under leases of
one year or longer | 16 | | executed or in effect at the time of purchase by
interstate | 17 | | carriers for hire for use as rolling stock moving in interstate
| 18 | | commerce and equipment operated by a telecommunications | 19 | | provider, licensed as a
common carrier by the Federal | 20 | | Communications Commission, which is permanently
installed in | 21 | | or affixed to aircraft moving in interstate commerce.
| 22 | | (12-5) On and after July 1, 2003 and through June 30, 2004, | 23 | | motor vehicles of the second division
with a gross vehicle | 24 | | weight in excess of 8,000 pounds
that
are
subject to the | 25 | | commercial distribution fee imposed under Section 3-815.1 of
| 26 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and |
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| 1 | | through June 30, 2005, the use in this State of motor vehicles | 2 | | of the second division: (i) with a gross vehicle weight rating | 3 | | in excess of 8,000 pounds; (ii) that are subject to the | 4 | | commercial distribution fee imposed under Section 3-815.1 of | 5 | | the Illinois Vehicle Code; and (iii) that are primarily used | 6 | | for commercial purposes. Through June 30, 2005, this
exemption | 7 | | applies to repair and replacement parts added
after the
initial | 8 | | purchase of such a motor vehicle if that motor vehicle is used | 9 | | in a
manner that
would qualify for the rolling stock exemption | 10 | | otherwise provided for in this
Act. For purposes of this | 11 | | paragraph, "used for commercial purposes" means the | 12 | | transportation of persons or property in furtherance of any | 13 | | commercial or industrial enterprise whether for-hire or not.
| 14 | | (13) Proceeds from sales to owners, lessors, or
shippers of
| 15 | | tangible personal property that is utilized by interstate | 16 | | carriers for
hire for use as rolling stock moving in interstate | 17 | | commerce
and equipment operated by a telecommunications | 18 | | provider, licensed as a
common carrier by the Federal | 19 | | Communications Commission, which is
permanently installed in | 20 | | or affixed to aircraft moving in interstate commerce.
| 21 | | (14) Machinery and equipment that will be used by the | 22 | | purchaser, or a
lessee of the purchaser, primarily in the | 23 | | process of manufacturing or
assembling tangible personal | 24 | | property for wholesale or retail sale or
lease, whether the | 25 | | sale or lease is made directly by the manufacturer or by
some | 26 | | other person, whether the materials used in the process are |
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| 1 | | owned by
the manufacturer or some other person, or whether the | 2 | | sale or lease is made
apart from or as an incident to the | 3 | | seller's engaging in the service
occupation of producing | 4 | | machines, tools, dies, jigs, patterns, gauges, or
other similar | 5 | | items of no commercial value on special order for a particular
| 6 | | purchaser.
| 7 | | (15) Proceeds of mandatory service charges separately | 8 | | stated on
customers' bills for purchase and consumption of food | 9 | | and beverages, to the
extent that the proceeds of the service | 10 | | charge are in fact turned over as
tips or as a substitute for | 11 | | tips to the employees who participate directly
in preparing, | 12 | | serving, hosting or cleaning up the food or beverage function
| 13 | | with respect to which the service charge is imposed.
| 14 | | (16) Petroleum products sold to a purchaser if the seller
| 15 | | is prohibited by federal law from charging tax to the | 16 | | purchaser.
| 17 | | (17) Tangible personal property sold to a common carrier by | 18 | | rail or
motor that
receives the physical possession of the | 19 | | property in Illinois and that
transports the property, or | 20 | | shares with another common carrier in the
transportation of the | 21 | | property, out of Illinois on a standard uniform bill
of lading | 22 | | showing the seller of the property as the shipper or consignor | 23 | | of
the property to a destination outside Illinois, for use | 24 | | outside Illinois.
| 25 | | (18) Legal tender, currency, medallions, or gold or silver | 26 | | coinage
issued by the State of Illinois, the government of the |
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| 1 | | United States of
America, or the government of any foreign | 2 | | country, and bullion.
| 3 | | (19) Until July 1 2003, oil field exploration, drilling, | 4 | | and production
equipment, including
(i) rigs and parts of rigs, | 5 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 6 | | tubular goods, including casing and
drill strings, (iii) pumps | 7 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 8 | | individual replacement part for oil field exploration,
| 9 | | drilling, and production equipment, and (vi) machinery and | 10 | | equipment purchased
for lease; but
excluding motor vehicles | 11 | | required to be registered under the Illinois
Vehicle Code.
| 12 | | (20) Photoprocessing machinery and equipment, including | 13 | | repair and
replacement parts, both new and used, including that | 14 | | manufactured on
special order, certified by the purchaser to be | 15 | | used primarily for
photoprocessing, and including | 16 | | photoprocessing machinery and equipment
purchased for lease.
| 17 | | (21) Until July 1, 2003, and beginning again on the | 18 | | effective date of this amendatory Act of the 97th General | 19 | | Assembly and thereafter, coal and aggregate exploration, | 20 | | mining, offhighway hauling,
processing,
maintenance, and | 21 | | reclamation equipment, including
replacement parts and | 22 | | equipment, and including
equipment purchased for lease, but | 23 | | excluding motor vehicles required to be
registered under the | 24 | | Illinois Vehicle Code.
| 25 | | (22) Fuel and petroleum products sold to or used by an air | 26 | | carrier,
certified by the carrier to be used for consumption, |
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| 1 | | shipment, or storage
in the conduct of its business as an air | 2 | | common carrier, for a flight
destined for or returning from a | 3 | | location or locations
outside the United States without regard | 4 | | to previous or subsequent domestic
stopovers.
| 5 | | (23) A transaction in which the purchase order is received | 6 | | by a florist
who is located outside Illinois, but who has a | 7 | | florist located in Illinois
deliver the property to the | 8 | | purchaser or the purchaser's donee in Illinois.
| 9 | | (24) Fuel consumed or used in the operation of ships, | 10 | | barges, or vessels
that are used primarily in or for the | 11 | | transportation of property or the
conveyance of persons for | 12 | | hire on rivers bordering on this State if the
fuel is delivered | 13 | | by the seller to the purchaser's barge, ship, or vessel
while | 14 | | it is afloat upon that bordering river.
| 15 | | (25) Except as provided in item (25-5) of this Section, a
| 16 | | motor vehicle sold in this State to a nonresident even though | 17 | | the
motor vehicle is delivered to the nonresident in this | 18 | | State, if the motor
vehicle is not to be titled in this State, | 19 | | and if a drive-away permit
is issued to the motor vehicle as | 20 | | provided in Section 3-603 of the Illinois
Vehicle Code or if | 21 | | the nonresident purchaser has vehicle registration
plates to | 22 | | transfer to the motor vehicle upon returning to his or her home
| 23 | | state. The issuance of the drive-away permit or having
the
| 24 | | out-of-state registration plates to be transferred is prima | 25 | | facie evidence
that the motor vehicle will not be titled in | 26 | | this State.
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| 1 | | (25-5) The exemption under item (25) does not apply if the | 2 | | state in which the motor vehicle will be titled does not allow | 3 | | a reciprocal exemption for a motor vehicle sold and delivered | 4 | | in that state to an Illinois resident but titled in Illinois. | 5 | | The tax collected under this Act on the sale of a motor vehicle | 6 | | in this State to a resident of another state that does not | 7 | | allow a reciprocal exemption shall be imposed at a rate equal | 8 | | to the state's rate of tax on taxable property in the state in | 9 | | which the purchaser is a resident, except that the tax shall | 10 | | not exceed the tax that would otherwise be imposed under this | 11 | | Act. At the time of the sale, the purchaser shall execute a | 12 | | statement, signed under penalty of perjury, of his or her | 13 | | intent to title the vehicle in the state in which the purchaser | 14 | | is a resident within 30 days after the sale and of the fact of | 15 | | the payment to the State of Illinois of tax in an amount | 16 | | equivalent to the state's rate of tax on taxable property in | 17 | | his or her state of residence and shall submit the statement to | 18 | | the appropriate tax collection agency in his or her state of | 19 | | residence. In addition, the retailer must retain a signed copy | 20 | | of the statement in his or her records. Nothing in this item | 21 | | shall be construed to require the removal of the vehicle from | 22 | | this state following the filing of an intent to title the | 23 | | vehicle in the purchaser's state of residence if the purchaser | 24 | | titles the vehicle in his or her state of residence within 30 | 25 | | days after the date of sale. The tax collected under this Act | 26 | | in accordance with this item (25-5) shall be proportionately |
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| 1 | | distributed as if the tax were collected at the 6.25% general | 2 | | rate imposed under this Act.
| 3 | | (25-7) Beginning on July 1, 2007, no tax is imposed under | 4 | | this Act on the sale of an aircraft, as defined in Section 3 of | 5 | | the Illinois Aeronautics Act, if all of the following | 6 | | conditions are met: | 7 | | (1) the aircraft leaves this State within 15 days after | 8 | | the later of either the issuance of the final billing for | 9 | | the sale of the aircraft, or the authorized approval for | 10 | | return to service, completion of the maintenance record | 11 | | entry, and completion of the test flight and ground test | 12 | | for inspection, as required by 14 C.F.R. 91.407; | 13 | | (2) the aircraft is not based or registered in this | 14 | | State after the sale of the aircraft; and | 15 | | (3) the seller retains in his or her books and records | 16 | | and provides to the Department a signed and dated | 17 | | certification from the purchaser, on a form prescribed by | 18 | | the Department, certifying that the requirements of this | 19 | | item (25-7) are met. The certificate must also include the | 20 | | name and address of the purchaser, the address of the | 21 | | location where the aircraft is to be titled or registered, | 22 | | the address of the primary physical location of the | 23 | | aircraft, and other information that the Department may | 24 | | reasonably require. | 25 | | For purposes of this item (25-7): | 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 | | "Registered in this State" means an aircraft registered | 5 | | with the Department of Transportation, Aeronautics Division, | 6 | | or titled or registered with the Federal Aviation | 7 | | Administration to an address located in this State. | 8 | | This paragraph (25-7) is exempt from the provisions
of
| 9 | | Section 2-70.
| 10 | | (26) Semen used for artificial insemination of livestock | 11 | | for direct
agricultural production.
| 12 | | (27) Horses, or interests in horses, registered with and | 13 | | meeting the
requirements of any of the
Arabian Horse Club | 14 | | Registry of America, Appaloosa Horse Club, American Quarter
| 15 | | Horse Association, United States
Trotting Association, or | 16 | | Jockey Club, as appropriate, used for
purposes of breeding or | 17 | | racing for prizes. This item (27) is exempt from the provisions | 18 | | of Section 2-70, and the exemption provided for under this item | 19 | | (27) applies for all periods beginning May 30, 1995, but no | 20 | | claim for credit or refund is allowed on or after January 1, | 21 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 22 | | paid during the period beginning May 30, 2000 and ending on | 23 | | January 1, 2008 (the effective date of Public Act 95-88).
| 24 | | (28) Computers and communications equipment utilized for | 25 | | any
hospital
purpose
and equipment used in the diagnosis,
| 26 | | analysis, or treatment of hospital patients sold to a lessor |
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| 1 | | who leases the
equipment, under a lease of one year or longer | 2 | | executed or in effect at the
time of the purchase, to a
| 3 | | hospital
that has been issued an active tax exemption | 4 | | identification number by the
Department under Section 1g of | 5 | | this Act.
| 6 | | (29) Personal property sold to a lessor who leases the
| 7 | | property, under a
lease of one year or longer executed or in | 8 | | effect at the time of the purchase,
to a governmental body
that | 9 | | has been issued an active tax exemption identification number | 10 | | by the
Department under Section 1g of this Act.
| 11 | | (30) Beginning with taxable years ending on or after | 12 | | December
31, 1995
and
ending with taxable years ending on or | 13 | | before December 31, 2004,
personal property that is
donated for | 14 | | disaster relief to be used in a State or federally declared
| 15 | | disaster area in Illinois or bordering Illinois by a | 16 | | manufacturer or retailer
that is registered in this State to a | 17 | | corporation, society, association,
foundation, or institution | 18 | | that has been issued a sales tax exemption
identification | 19 | | number by the Department that assists victims of the disaster
| 20 | | who reside within the declared disaster area.
| 21 | | (31) Beginning with taxable years ending on or after | 22 | | December
31, 1995 and
ending with taxable years ending on or | 23 | | before December 31, 2004, personal
property that is used in the | 24 | | performance of infrastructure repairs in this
State, including | 25 | | but not limited to municipal roads and streets, access roads,
| 26 | | bridges, sidewalks, waste disposal systems, water and sewer |
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| 1 | | line extensions,
water distribution and purification | 2 | | facilities, storm water drainage and
retention facilities, and | 3 | | sewage treatment facilities, resulting from a State
or | 4 | | federally declared disaster in Illinois or bordering Illinois | 5 | | when such
repairs are initiated on facilities located in the | 6 | | declared disaster area
within 6 months after the disaster.
| 7 | | (32) Beginning July 1, 1999, game or game birds sold at a | 8 | | "game breeding
and
hunting preserve area" as that term is used
| 9 | | in the
Wildlife Code. This paragraph is exempt from the | 10 | | provisions
of
Section 2-70.
| 11 | | (33) A motor vehicle, as that term is defined in Section | 12 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 13 | | corporation, limited liability
company, society, association, | 14 | | foundation, or institution that is determined by
the Department | 15 | | to be organized and operated exclusively for educational
| 16 | | purposes. For purposes of this exemption, "a corporation, | 17 | | limited liability
company, society, association, foundation, | 18 | | or institution organized and
operated
exclusively for | 19 | | educational purposes" means all tax-supported public schools,
| 20 | | private schools that offer systematic instruction in useful | 21 | | branches of
learning by methods common to public schools and | 22 | | that compare favorably in
their scope and intensity with the | 23 | | course of study presented in tax-supported
schools, and | 24 | | vocational or technical schools or institutes organized and
| 25 | | operated exclusively to provide a course of study of not less | 26 | | than 6 weeks
duration and designed to prepare individuals to |
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| 1 | | follow a trade or to pursue a
manual, technical, mechanical, | 2 | | industrial, business, or commercial
occupation.
| 3 | | (34) Beginning January 1, 2000, personal property, | 4 | | including food, purchased
through fundraising events for the | 5 | | benefit of a public or private elementary or
secondary school, | 6 | | a group of those schools, or one or more school districts if
| 7 | | the events are sponsored by an entity recognized by the school | 8 | | district that
consists primarily of volunteers and includes | 9 | | parents and teachers of the
school children. This paragraph | 10 | | does not apply to fundraising events (i) for
the benefit of | 11 | | private home instruction or (ii) for which the fundraising
| 12 | | entity purchases the personal property sold at the events from | 13 | | another
individual or entity that sold the property for the | 14 | | purpose of resale by the
fundraising entity and that profits | 15 | | from the sale to the fundraising entity.
This paragraph is | 16 | | exempt from the provisions of Section 2-70.
| 17 | | (35) Beginning January 1, 2000 and through December 31, | 18 | | 2001, new or used
automatic vending machines that prepare and | 19 | | serve hot food and beverages,
including coffee, soup, and other | 20 | | items, and replacement parts for these
machines. Beginning | 21 | | January 1, 2002 and through June 30, 2003, machines
and parts | 22 | | for machines used in
commercial, coin-operated amusement and | 23 | | vending business if a use or occupation
tax is paid on the | 24 | | gross receipts derived from the use of the commercial,
| 25 | | coin-operated amusement and vending machines. This paragraph | 26 | | is exempt from
the provisions of Section 2-70.
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| 1 | | (35-5) Beginning August 23, 2001 and through June 30, 2016, | 2 | | food for human consumption that is to be consumed off
the | 3 | | premises where it is sold (other than alcoholic beverages, soft | 4 | | drinks,
and food that has been prepared for immediate | 5 | | consumption) and prescription
and nonprescription medicines, | 6 | | drugs, medical appliances, and insulin, urine
testing | 7 | | materials, syringes, and needles used by diabetics, for human | 8 | | use, when
purchased for use by a person receiving medical | 9 | | assistance under Article V of
the Illinois Public Aid Code who | 10 | | resides in a licensed long-term care facility,
as defined in | 11 | | the Nursing Home Care Act, or a licensed facility as defined in | 12 | | the ID/DD Community Care Act or the Specialized Mental Health | 13 | | Rehabilitation Act.
| 14 | | (36) Beginning August 2, 2001, computers and | 15 | | communications equipment
utilized for any hospital purpose and | 16 | | equipment used in the diagnosis,
analysis, or treatment of | 17 | | hospital patients sold to a lessor who leases the
equipment, | 18 | | under a lease of one year or longer executed or in effect at | 19 | | the
time of the purchase, to a hospital that has been issued an | 20 | | active tax
exemption identification number by the Department | 21 | | under Section 1g of this Act.
This paragraph is exempt from the | 22 | | provisions of Section 2-70.
| 23 | | (37) Beginning August 2, 2001, personal property sold to a | 24 | | lessor who
leases the property, under a lease of one year or | 25 | | longer executed or in effect
at the time of the purchase, to a | 26 | | governmental body that has been issued an
active tax exemption |
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| 1 | | identification number by the Department under Section 1g
of | 2 | | this Act. This paragraph is exempt from the provisions of | 3 | | Section 2-70.
| 4 | | (38) Beginning on January 1, 2002 and through June 30, | 5 | | 2016, tangible personal property purchased
from an Illinois | 6 | | retailer by a taxpayer engaged in centralized purchasing
| 7 | | activities in Illinois who will, upon receipt of the property | 8 | | in Illinois,
temporarily store the property in Illinois (i) for | 9 | | the purpose of subsequently
transporting it outside this State | 10 | | for use or consumption thereafter solely
outside this State or | 11 | | (ii) for the purpose of being processed, fabricated, or
| 12 | | manufactured into, attached to, or incorporated into other | 13 | | tangible personal
property to be transported outside this State | 14 | | and thereafter used or consumed
solely outside this State. The | 15 | | Director of Revenue shall, pursuant to rules
adopted in | 16 | | accordance with the Illinois Administrative Procedure Act, | 17 | | issue a
permit to any taxpayer in good standing with the | 18 | | Department who is eligible for
the exemption under this | 19 | | paragraph (38). The permit issued under
this paragraph (38) | 20 | | shall authorize the holder, to the extent and
in the manner | 21 | | specified in the rules adopted under this Act, to purchase
| 22 | | tangible personal property from a retailer exempt from the | 23 | | taxes imposed by
this Act. Taxpayers shall maintain all | 24 | | necessary books and records to
substantiate the use and | 25 | | consumption of all such tangible personal property
outside of | 26 | | the State of Illinois.
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| 1 | | (39) Beginning January 1, 2008, tangible personal property | 2 | | used in the construction or maintenance of a community water | 3 | | supply, as defined under Section 3.145 of the Environmental | 4 | | Protection Act, that is operated by a not-for-profit | 5 | | corporation that holds a valid water supply permit issued under | 6 | | Title IV of the Environmental Protection Act. This paragraph is | 7 | | exempt from the provisions of Section 2-70.
| 8 | | (40) Beginning January 1, 2010, materials, parts, | 9 | | equipment, components, and furnishings incorporated into or | 10 | | upon an aircraft as part of the modification, refurbishment, | 11 | | completion, replacement, repair, or maintenance of the | 12 | | aircraft. This exemption includes consumable supplies used in | 13 | | the modification, refurbishment, completion, replacement, | 14 | | repair, and maintenance of aircraft, but excludes any | 15 | | materials, parts, equipment, components, and consumable | 16 | | supplies used in the modification, replacement, repair, and | 17 | | maintenance of aircraft engines or power plants, whether such | 18 | | engines or power plants are installed or uninstalled upon any | 19 | | such aircraft. "Consumable supplies" include, but are not | 20 | | limited to, adhesive, tape, sandpaper, general purpose | 21 | | lubricants, cleaning solution, latex gloves, and protective | 22 | | films. This exemption applies only to the sale of qualifying | 23 | | tangible personal property to persons who modify, refurbish, | 24 | | complete, replace, or maintain an aircraft and who those | 25 | | organizations that (i) hold an Air Agency Certificate and are | 26 | | empowered to operate an approved repair station by the Federal |
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| 1 | | Aviation Administration, (ii) have a Class IV Rating, and (iii) | 2 | | conduct operations in accordance with Part 145 of the Federal | 3 | | Aviation Regulations. The exemption does not include aircraft | 4 | | operated by a commercial air carrier providing scheduled | 5 | | passenger air service pursuant to authority issued under Part | 6 | | 121 or Part 129 of the Federal Aviation Regulations. The | 7 | | changes made to this paragraph (40) by this amendatory Act of | 8 | | the 98th General Assembly are declarative of existing law and | 9 | | are not a new enactment. | 10 | | (41) Tangible personal property sold to a | 11 | | public-facilities corporation, as described in Section | 12 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 13 | | constructing or furnishing a municipal convention hall, but | 14 | | only if the legal title to the municipal convention hall is | 15 | | transferred to the municipality without any further | 16 | | consideration by or on behalf of the municipality at the time | 17 | | of the completion of the municipal convention hall or upon the | 18 | | retirement or redemption of any bonds or other debt instruments | 19 | | issued by the public-facilities corporation in connection with | 20 | | the development of the municipal convention hall. This | 21 | | exemption includes existing public-facilities corporations as | 22 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 23 | | This paragraph is exempt from the provisions of Section 2-70. | 24 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 25 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 26 | | 7-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. |
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| 1 | | 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. | 2 | | 7-9-12.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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