Full Text of SB0514 99th General Assembly
SB0514sam001 99TH GENERAL ASSEMBLY | Sen. Toi W. Hutchinson Filed: 4/15/2016
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| 1 | | AMENDMENT TO SENATE BILL 514
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 514 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Corporate Accountability for Tax | 5 | | Expenditures Act is amended by changing Section 10 as follows:
| 6 | | (20 ILCS 715/10)
| 7 | | Sec. 10. Unified Economic Development Budget.
| 8 | | (a) For each State fiscal year ending on or after June 30, | 9 | | 2005, the
Department of Revenue shall
submit an annual Unified | 10 | | Economic Development Budget to the General Assembly.
The
| 11 | | Unified Economic Development Budget shall be due within 6 3 | 12 | | months after the end
of the fiscal
year, and shall present all | 13 | | types of development assistance granted during the
prior fiscal | 14 | | year,
including:
| 15 | | (1) The aggregate amount of uncollected or diverted | 16 | | State tax revenues
resulting
from each type of development |
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| 1 | | assistance provided in the tax statutes, as
reported to the
| 2 | | Department of Revenue on tax returns filed during the | 3 | | fiscal year.
| 4 | | (2) All State development assistance.
| 5 | | (b) All data contained in the Unified Economic Development | 6 | | Budget presented
to the
General Assembly shall be fully subject | 7 | | to the Freedom of Information Act.
| 8 | | (c) The Department of Revenue shall submit a report of the | 9 | | amounts in
subdivision (a)(1)
of this Section to the | 10 | | Department, which may append such report to the Unified
| 11 | | Economic
Development Budget rather than separately reporting | 12 | | such amounts.
| 13 | | (Source: P.A. 93-552, eff. 8-20-03.)
| 14 | | Section 10. The Use Tax Act is amended by changing Section | 15 | | 3-5 as follows:
| 16 | | (35 ILCS 105/3-5)
| 17 | | Sec. 3-5. Exemptions. Use of the following tangible | 18 | | personal property
is exempt from the tax imposed by this Act:
| 19 | | (1) Personal property purchased from a corporation, | 20 | | society, association,
foundation, institution, or | 21 | | organization, other than a limited liability
company, that is | 22 | | organized and operated as a not-for-profit service enterprise
| 23 | | for the benefit of persons 65 years of age or older if the | 24 | | personal property
was not purchased by the enterprise for the |
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| 1 | | purpose of resale 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 a not-for-profit
arts or | 6 | | 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) Personal property purchased by a governmental body, by | 21 | | a
corporation, society, association, foundation, or | 22 | | institution organized and
operated exclusively for charitable, | 23 | | religious, or educational purposes, or
by a not-for-profit | 24 | | corporation, society, association, foundation,
institution, or | 25 | | organization that has no compensated officers or employees
and | 26 | | that is organized and operated primarily for the recreation of |
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| 1 | | persons
55 years of age or older. A limited liability company | 2 | | may qualify for the
exemption under this paragraph only if the | 3 | | limited liability company is
organized and operated | 4 | | exclusively for educational purposes. On and after July
1, | 5 | | 1987, however, no entity otherwise eligible for this exemption | 6 | | shall make
tax-free purchases unless it has an active exemption | 7 | | identification number
issued by the Department.
| 8 | | (5) Until July 1, 2003, a passenger car that is a | 9 | | replacement vehicle to
the extent that the
purchase price of | 10 | | the car is subject to the Replacement Vehicle Tax.
| 11 | | (6) Until July 1, 2003 and beginning again on September 1, | 12 | | 2004 through August 30, 2014, graphic arts machinery and | 13 | | equipment, including
repair and replacement
parts, both new and | 14 | | used, and including that manufactured on special order,
| 15 | | certified by the purchaser to be used primarily for graphic | 16 | | arts production,
and including machinery and equipment | 17 | | purchased for lease.
Equipment includes chemicals or chemicals | 18 | | acting as catalysts but only if
the
chemicals or chemicals | 19 | | acting as catalysts effect a direct and immediate change
upon a | 20 | | graphic arts product.
| 21 | | (7) Farm chemicals.
| 22 | | (8) Legal tender, currency, medallions, or gold or silver | 23 | | coinage issued by
the State of Illinois, the government of the | 24 | | United States of America, or the
government of any foreign | 25 | | country, and bullion.
| 26 | | (9) Personal property purchased from a teacher-sponsored |
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| 1 | | student
organization affiliated with an elementary or | 2 | | secondary school located in
Illinois.
| 3 | | (10) A motor vehicle that is used for automobile renting, | 4 | | as defined in the
Automobile Renting Occupation and Use Tax | 5 | | Act.
| 6 | | (11) Farm machinery and equipment, both new and used,
| 7 | | including that manufactured on special order, certified by the | 8 | | purchaser
to be used primarily for production agriculture or | 9 | | State or federal
agricultural programs, including individual | 10 | | replacement parts for
the machinery and equipment, including | 11 | | machinery and equipment
purchased
for lease,
and including | 12 | | implements of husbandry defined in Section 1-130 of
the | 13 | | Illinois Vehicle Code, farm machinery and agricultural | 14 | | chemical and
fertilizer spreaders, and nurse wagons required to | 15 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 16 | | but excluding other motor
vehicles required to be
registered | 17 | | under the Illinois Vehicle Code.
Horticultural polyhouses or | 18 | | hoop houses used for propagating, growing, or
overwintering | 19 | | plants shall be considered farm machinery and equipment under
| 20 | | this item (11).
Agricultural chemical tender tanks and dry | 21 | | boxes shall include units sold
separately from a motor vehicle | 22 | | required to be licensed and units sold mounted
on a motor | 23 | | vehicle required to be licensed if the selling price of the | 24 | | tender
is separately stated.
| 25 | | Farm machinery and equipment shall include precision | 26 | | farming equipment
that is
installed or purchased to be |
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| 1 | | installed on farm machinery and equipment
including, but not | 2 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 3 | | or spreaders.
Precision farming equipment includes, but is not | 4 | | limited to, soil testing
sensors, computers, monitors, | 5 | | software, global positioning
and mapping systems, and other | 6 | | such equipment.
| 7 | | Farm machinery and equipment also includes computers, | 8 | | sensors, software, and
related equipment used primarily in the
| 9 | | computer-assisted operation of production agriculture | 10 | | facilities, equipment,
and
activities such as, but not limited | 11 | | to,
the collection, monitoring, and correlation of
animal and | 12 | | crop data for the purpose of
formulating animal diets and | 13 | | agricultural chemicals. This item (11) is exempt
from the | 14 | | provisions of
Section 3-90.
| 15 | | (12) Until June 30, 2013, fuel and petroleum products sold | 16 | | to or used by an air common
carrier, certified by the carrier | 17 | | to be used for consumption, shipment, or
storage in the conduct | 18 | | of its business as an air common carrier, for a
flight destined | 19 | | for or returning from a location or locations
outside the | 20 | | United States without regard to previous or subsequent domestic
| 21 | | stopovers.
| 22 | | Beginning July 1, 2013, fuel and petroleum products sold to | 23 | | or used by an air carrier, certified by the carrier to be used | 24 | | for consumption, shipment, or storage in the conduct of its | 25 | | business as an air common carrier, for a flight that (i) is | 26 | | engaged in foreign trade or is engaged in trade between the |
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| 1 | | United States and any of its possessions and (ii) transports at | 2 | | least one individual or package for hire from the city of | 3 | | origination to the city of final destination on the same | 4 | | aircraft, without regard to a change in the flight number of | 5 | | that aircraft. | 6 | | (13) Proceeds of mandatory service charges separately
| 7 | | stated on customers' bills for the purchase and consumption of | 8 | | food and
beverages purchased at retail from a retailer, to the | 9 | | extent that the proceeds
of the service charge are in fact | 10 | | turned over as tips or as a substitute
for tips to the | 11 | | employees who participate directly in preparing, serving,
| 12 | | hosting or cleaning up the food or beverage function with | 13 | | respect to which
the service charge is imposed.
| 14 | | (14) Until July 1, 2003, oil field exploration, drilling, | 15 | | and production
equipment,
including (i) rigs and parts of rigs, | 16 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 17 | | tubular goods,
including casing and drill strings, (iii) pumps | 18 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 19 | | individual replacement part for oil
field exploration, | 20 | | drilling, and production equipment, and (vi) machinery and
| 21 | | equipment purchased
for lease; but excluding motor vehicles | 22 | | required to be registered under the
Illinois Vehicle Code.
| 23 | | (15) Photoprocessing machinery and equipment, including | 24 | | repair and
replacement parts, both new and used, including that
| 25 | | manufactured on special order, certified by the purchaser to be | 26 | | used
primarily for photoprocessing, and including
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| 1 | | photoprocessing machinery and equipment purchased for lease.
| 2 | | (16) Coal and aggregate exploration, mining, off-highway | 3 | | hauling,
processing, maintenance, and reclamation equipment,
| 4 | | including replacement parts and equipment, and
including | 5 | | equipment purchased for lease, but excluding motor
vehicles | 6 | | required to be registered under the Illinois Vehicle Code. The | 7 | | changes made to this Section by Public Act 97-767 apply on and | 8 | | after July 1, 2003, but no claim for credit or refund is | 9 | | allowed on or after August 16, 2013 (the effective date of | 10 | | Public Act 98-456)
for such taxes paid during the period | 11 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 12 | | effective date of Public Act 98-456).
| 13 | | (17) Until July 1, 2003, distillation machinery and | 14 | | equipment, sold as a
unit or kit,
assembled or installed by the | 15 | | retailer, certified by the user to be used
only for the | 16 | | production of ethyl alcohol that will be used for consumption
| 17 | | as motor fuel or as a component of motor fuel for the personal | 18 | | use of the
user, and not subject to sale or resale.
| 19 | | (18) Manufacturing and assembling machinery and equipment | 20 | | used
primarily in the process of manufacturing or assembling | 21 | | tangible
personal property for wholesale or retail sale or | 22 | | lease, whether that sale
or lease is made directly by the | 23 | | manufacturer or by some other person,
whether the materials | 24 | | used in the process are
owned by the manufacturer or some other | 25 | | person, or whether that sale or
lease is made apart from or as | 26 | | an incident to the seller's engaging in
the service occupation |
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| 1 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 2 | | other similar items of no commercial value on
special order for | 3 | | a particular purchaser. The exemption provided by this | 4 | | paragraph (18) does not include machinery and equipment used in | 5 | | (i) the generation of electricity for wholesale or retail sale; | 6 | | (ii) the generation or treatment of natural or artificial gas | 7 | | for wholesale or retail sale that is delivered to customers | 8 | | through pipes, pipelines, or mains; or (iii) the treatment of | 9 | | water for wholesale or retail sale that is delivered to | 10 | | customers through pipes, pipelines, or mains. The provisions of | 11 | | Public Act 98-583 are declaratory of existing law as to the | 12 | | meaning and scope of this exemption.
| 13 | | (19) Personal property delivered to a purchaser or | 14 | | purchaser's donee
inside Illinois when the purchase order for | 15 | | that personal property was
received by a florist located | 16 | | outside Illinois who has a florist located
inside Illinois | 17 | | deliver the personal property.
| 18 | | (20) Semen used for artificial insemination of livestock | 19 | | for direct
agricultural production.
| 20 | | (21) Horses, or interests in horses, registered with and | 21 | | meeting the
requirements of any of the
Arabian Horse Club | 22 | | Registry of America, Appaloosa Horse Club, American Quarter
| 23 | | Horse Association, United States
Trotting Association, or | 24 | | Jockey Club, as appropriate, used for
purposes of breeding or | 25 | | racing for prizes. This item (21) is exempt from the provisions | 26 | | of Section 3-90, and the exemption provided for under this item |
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| 1 | | (21) applies for all periods beginning May 30, 1995, but no | 2 | | claim for credit or refund is allowed on or after January 1, | 3 | | 2008
for such taxes paid during the period beginning May 30, | 4 | | 2000 and ending on January 1, 2008.
| 5 | | (22) Computers and communications equipment utilized for | 6 | | any
hospital
purpose
and equipment used in the diagnosis,
| 7 | | analysis, or treatment of hospital patients purchased by a | 8 | | lessor who leases
the
equipment, under a lease of one year or | 9 | | longer executed or in effect at the
time the lessor would | 10 | | otherwise be subject to the tax imposed by this Act, to a
| 11 | | hospital
that has been issued an active tax exemption | 12 | | identification number by
the
Department under Section 1g of the | 13 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 14 | | manner that does not qualify for
this exemption or is used in | 15 | | any other non-exempt manner, the lessor
shall be liable for the
| 16 | | tax imposed under this Act or the Service Use Tax Act, as the | 17 | | case may
be, based on the fair market value of the property at | 18 | | the time the
non-qualifying use occurs. No lessor shall collect | 19 | | or attempt to collect an
amount (however
designated) that | 20 | | purports to reimburse that lessor for the tax imposed by this
| 21 | | Act or the Service Use Tax Act, as the case may be, if the tax | 22 | | has not been
paid by the lessor. If a lessor improperly | 23 | | collects any such amount from the
lessee, the lessee shall have | 24 | | a legal right to claim a refund of that amount
from the lessor. | 25 | | If, however, that amount is not refunded to the lessee for
any | 26 | | reason, the lessor is liable to pay that amount to the |
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| 1 | | Department.
| 2 | | (23) Personal property purchased by a lessor who leases the
| 3 | | property, under
a
lease of
one year or longer executed or in | 4 | | effect at the time
the lessor would otherwise be subject to the | 5 | | tax imposed by this Act,
to a governmental body
that has been | 6 | | issued an active sales tax exemption identification number by | 7 | | the
Department under Section 1g of the Retailers' Occupation | 8 | | Tax Act.
If the
property is leased in a manner that does not | 9 | | qualify for
this exemption
or used in any other non-exempt | 10 | | manner, the lessor shall be liable for the
tax imposed under | 11 | | this Act or the Service Use Tax Act, as the case may
be, based | 12 | | on the fair market value of the property at the time the
| 13 | | non-qualifying use occurs. No lessor shall collect or attempt | 14 | | to collect an
amount (however
designated) that purports to | 15 | | reimburse that lessor for the tax imposed by this
Act or the | 16 | | Service Use Tax Act, as the case may be, if the tax has not been
| 17 | | paid by the lessor. If a lessor improperly collects any such | 18 | | amount from the
lessee, the lessee shall have a legal right to | 19 | | claim a refund of that amount
from the lessor. If, however, | 20 | | that amount is not refunded to the lessee for
any reason, the | 21 | | lessor is liable to pay that amount to the Department.
| 22 | | (24) Beginning with taxable years ending on or after | 23 | | December
31, 1995
and
ending with taxable years ending on or | 24 | | before December 31, 2004,
personal property that is
donated for | 25 | | disaster relief to be used in a State or federally declared
| 26 | | disaster area in Illinois or bordering Illinois by a |
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| 1 | | manufacturer or retailer
that is registered in this State to a | 2 | | corporation, society, association,
foundation, or institution | 3 | | that has been issued a sales tax exemption
identification | 4 | | number by the Department that assists victims of the disaster
| 5 | | who reside within the declared disaster area.
| 6 | | (25) Beginning with taxable years ending on or after | 7 | | December
31, 1995 and
ending with taxable years ending on or | 8 | | before December 31, 2004, personal
property that is used in the | 9 | | performance of infrastructure repairs in this
State, including | 10 | | but not limited to municipal roads and streets, access roads,
| 11 | | bridges, sidewalks, waste disposal systems, water and sewer | 12 | | line extensions,
water distribution and purification | 13 | | facilities, storm water drainage and
retention facilities, and | 14 | | sewage treatment facilities, resulting from a State
or | 15 | | federally declared disaster in Illinois or bordering Illinois | 16 | | when such
repairs are initiated on facilities located in the | 17 | | declared disaster area
within 6 months after the disaster.
| 18 | | (26) Beginning July 1, 1999, game or game birds purchased | 19 | | at a "game
breeding
and hunting preserve area" as that term is
| 20 | | used in
the Wildlife Code. This paragraph is exempt from the | 21 | | provisions
of
Section 3-90.
| 22 | | (27) A motor vehicle, as that term is defined in Section | 23 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a | 24 | | corporation, limited liability company,
society, association, | 25 | | foundation, or institution that is determined by the
Department | 26 | | to be organized and operated exclusively for educational |
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| 1 | | purposes.
For purposes of this exemption, "a corporation, | 2 | | limited liability company,
society, association, foundation, | 3 | | or institution organized and operated
exclusively for | 4 | | educational purposes" means all tax-supported public schools,
| 5 | | private schools that offer systematic instruction in useful | 6 | | branches of
learning by methods common to public schools and | 7 | | that compare favorably in
their scope and intensity with the | 8 | | course of study presented in tax-supported
schools, and | 9 | | vocational or technical schools or institutes organized and
| 10 | | operated exclusively to provide a course of study of not less | 11 | | than 6 weeks
duration and designed to prepare individuals to | 12 | | follow a trade or to pursue a
manual, technical, mechanical, | 13 | | industrial, business, or commercial
occupation.
| 14 | | (28) Beginning January 1, 2000, personal property, | 15 | | including
food,
purchased through fundraising
events for the | 16 | | benefit of
a public or private elementary or
secondary school, | 17 | | a group of those schools, or one or more school
districts if | 18 | | the events are
sponsored by an entity recognized by the school | 19 | | district that consists
primarily of volunteers and includes
| 20 | | parents and teachers of the school children. This paragraph | 21 | | does not apply
to fundraising
events (i) for the benefit of | 22 | | private home instruction or (ii)
for which the fundraising | 23 | | entity purchases the personal property sold at
the events from | 24 | | another individual or entity that sold the property for the
| 25 | | purpose of resale by the fundraising entity and that
profits | 26 | | from the sale to the
fundraising entity. This paragraph is |
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| 1 | | exempt
from the provisions
of Section 3-90.
| 2 | | (29) Beginning January 1, 2000 and through December 31, | 3 | | 2001, new or
used automatic vending
machines that prepare and | 4 | | serve hot food and beverages, including coffee, soup,
and
other | 5 | | items, and replacement parts for these machines.
Beginning | 6 | | January 1,
2002 and through June 30, 2003, machines and parts | 7 | | for machines used in
commercial, coin-operated amusement and | 8 | | vending business if a use or occupation
tax is paid on the | 9 | | gross receipts derived from the use of the commercial,
| 10 | | coin-operated amusement and vending machines.
This
paragraph
| 11 | | is exempt from the provisions of Section 3-90.
| 12 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 13 | | food for human consumption that is to be consumed off the | 14 | | premises
where it is sold (other than alcoholic beverages, soft | 15 | | drinks, and food that
has been prepared for immediate | 16 | | consumption) and prescription and
nonprescription medicines, | 17 | | drugs, medical appliances, and insulin, urine
testing | 18 | | materials, syringes, and needles used by diabetics, for human | 19 | | use, when
purchased for use by a person receiving medical | 20 | | assistance under Article V of
the Illinois Public Aid Code who | 21 | | resides in a licensed long-term care facility,
as defined in | 22 | | the Nursing Home Care Act, or in a licensed facility as defined | 23 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 24 | | Specialized Mental Health Rehabilitation Act of 2013.
| 25 | | (31) Beginning on
the effective date of this amendatory Act | 26 | | of the 92nd General Assembly,
computers and communications |
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| 1 | | equipment
utilized for any hospital purpose and equipment used | 2 | | in the diagnosis,
analysis, or treatment of hospital patients | 3 | | purchased by a lessor who leases
the equipment, under a lease | 4 | | of one year or longer executed or in effect at the
time the | 5 | | lessor would otherwise be subject to the tax imposed by this | 6 | | Act, to a
hospital that has been issued an active tax exemption | 7 | | identification number by
the Department under Section 1g of the | 8 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 9 | | manner that does not qualify for this exemption or is
used in | 10 | | any other nonexempt manner, the lessor shall be liable for the | 11 | | tax
imposed under this Act or the Service Use Tax Act, as the | 12 | | case may be, based on
the fair market value of the property at | 13 | | the time the nonqualifying use
occurs. No lessor shall collect | 14 | | or attempt to collect an amount (however
designated) that | 15 | | purports to reimburse that lessor for the tax imposed by this
| 16 | | Act or the Service Use Tax Act, as the case may be, if the tax | 17 | | has not been
paid by the lessor. If a lessor improperly | 18 | | collects any such amount from the
lessee, the lessee shall have | 19 | | a legal right to claim a refund of that amount
from the lessor. | 20 | | If, however, that amount is not refunded to the lessee for
any | 21 | | reason, the lessor is liable to pay that amount to the | 22 | | Department.
This paragraph is exempt from the provisions of | 23 | | Section 3-90.
| 24 | | (32) Beginning on
the effective date of this amendatory Act | 25 | | of the 92nd General Assembly,
personal property purchased by a | 26 | | lessor who leases the property,
under a lease of one year or |
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| 1 | | longer executed or in effect at the time the
lessor would | 2 | | otherwise be subject to the tax imposed by this Act, to a
| 3 | | governmental body that has been issued an active sales tax | 4 | | exemption
identification number by the Department under | 5 | | Section 1g of the Retailers'
Occupation Tax Act. If the | 6 | | property is leased in a manner that does not
qualify for this | 7 | | exemption or used in any other nonexempt manner, the lessor
| 8 | | shall be liable for the tax imposed under this Act or the | 9 | | Service Use Tax Act,
as the case may be, based on the fair | 10 | | market value of the property at the time
the nonqualifying use | 11 | | occurs. No lessor shall collect or attempt to collect
an amount | 12 | | (however designated) that purports to reimburse that lessor for | 13 | | the
tax imposed by this Act or the Service Use Tax Act, as the | 14 | | case may be, if the
tax has not been paid by the lessor. If a | 15 | | lessor improperly collects any such
amount from the lessee, the | 16 | | lessee shall have a legal right to claim a refund
of that | 17 | | amount from the lessor. If, however, that amount is not | 18 | | refunded to
the lessee for any reason, the lessor is liable to | 19 | | pay that amount to the
Department. This paragraph is exempt | 20 | | from the provisions of Section 3-90.
| 21 | | (33) On and after July 1, 2003 and through June 30, 2004, | 22 | | the use in this State of motor vehicles of
the second division | 23 | | with a gross vehicle weight in excess of 8,000 pounds and
that | 24 | | are subject to the commercial distribution fee imposed under | 25 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 26 | | 1, 2004 and through June 30, 2005, the use in this State of |
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| 1 | | motor vehicles of the second division: (i) with a gross vehicle | 2 | | weight rating in excess of 8,000 pounds; (ii) that are subject | 3 | | to the commercial distribution fee imposed under Section | 4 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 5 | | primarily used for commercial purposes. Through June 30, 2005, | 6 | | this exemption applies to repair and
replacement parts added | 7 | | after the initial purchase of such a motor vehicle if
that | 8 | | motor
vehicle is used in a manner that would qualify for the | 9 | | rolling stock exemption
otherwise provided for in this Act. For | 10 | | purposes of this paragraph, the term "used for commercial | 11 | | purposes" means the transportation of persons or property in | 12 | | furtherance of any commercial or industrial enterprise, | 13 | | whether for-hire or not.
| 14 | | (34) Beginning January 1, 2008, tangible personal property | 15 | | used in the construction or maintenance of a community water | 16 | | supply, as defined under Section 3.145 of the Environmental | 17 | | Protection Act, that is operated by a not-for-profit | 18 | | corporation that holds a valid water supply permit issued under | 19 | | Title IV of the Environmental Protection Act. This paragraph is | 20 | | exempt from the provisions of Section 3-90. | 21 | | (35) Beginning January 1, 2010, materials, parts, | 22 | | equipment, components, and furnishings incorporated into or | 23 | | upon an aircraft as part of the modification, refurbishment, | 24 | | completion, replacement, repair, or maintenance of the | 25 | | aircraft. This exemption includes consumable supplies used in | 26 | | the modification, refurbishment, completion, replacement, |
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| 1 | | repair, and maintenance of aircraft, but excludes any | 2 | | materials, parts, equipment, components, and consumable | 3 | | supplies used in the modification, replacement, repair, and | 4 | | maintenance of aircraft engines or power plants, whether such | 5 | | engines or power plants are installed or uninstalled upon any | 6 | | such aircraft. "Consumable supplies" include, but are not | 7 | | limited to, adhesive, tape, sandpaper, general purpose | 8 | | lubricants, cleaning solution, latex gloves, and protective | 9 | | films. This exemption applies only to the use of qualifying | 10 | | tangible personal property by persons who modify, refurbish, | 11 | | complete, repair, replace, or maintain aircraft and who (i) | 12 | | hold an Air Agency Certificate and are empowered to operate an | 13 | | approved repair station by the Federal Aviation | 14 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 15 | | operations in accordance with Part 145 of the Federal Aviation | 16 | | Regulations. The exemption does not include aircraft operated | 17 | | by a commercial air carrier providing scheduled passenger air | 18 | | service pursuant to authority issued under Part 121 or Part 129 | 19 | | of the Federal Aviation Regulations. The changes made to this | 20 | | paragraph (35) by Public Act 98-534 are declarative of existing | 21 | | law. | 22 | | (36) 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 3-90. | 10 | | (37) Personal property purchased by a purchaser who is | 11 | | exempt from the tax imposed by this Act by operation of federal | 12 | | law. This paragraph is exempt from the provisions of Section | 13 | | 3-90. | 14 | | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | 15 | | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | 16 | | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | 17 | | 7-29-15.)
| 18 | | Section 15. 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) Until June 30, 2013, fuel and petroleum products sold | 24 | | to or used by an air common
carrier, certified by the carrier | 25 | | to be used for consumption, shipment, or
storage in the conduct | 26 | | of its business as an air common carrier, for a
flight destined |
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| 1 | | for or returning from a location or locations
outside the | 2 | | United States without regard to previous or subsequent domestic
| 3 | | stopovers.
| 4 | | Beginning July 1, 2013, fuel and petroleum products sold to | 5 | | or used by an air carrier, certified by the carrier to be used | 6 | | for consumption, shipment, or storage in the conduct of its | 7 | | business as an air common carrier, for a flight that (i) is | 8 | | engaged in foreign trade or is engaged in trade between the | 9 | | United States and any of its possessions and (ii) transports at | 10 | | least one individual or package for hire from the city of | 11 | | origination to the city of final destination on the same | 12 | | aircraft, without regard to a change in the flight number of | 13 | | that aircraft. | 14 | | (9) Proceeds of mandatory service charges separately | 15 | | stated on
customers' bills for the purchase and consumption of | 16 | | food and beverages
acquired as an incident to the purchase of a | 17 | | service from a serviceman, to
the extent that the proceeds of | 18 | | the service charge are in fact
turned over as tips or as a | 19 | | substitute for tips to the employees who
participate directly | 20 | | in preparing, serving, hosting or cleaning up the
food or | 21 | | beverage function with respect to which the service charge is | 22 | | imposed.
| 23 | | (10) Until July 1, 2003, oil field exploration, drilling, | 24 | | and production
equipment, including
(i) rigs and parts of rigs, | 25 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 26 | | tubular goods, including casing and
drill strings, (iii) pumps |
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| 1 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 2 | | individual replacement part for oil field exploration,
| 3 | | drilling, and production equipment, and (vi) machinery and | 4 | | equipment purchased
for lease; but
excluding motor vehicles | 5 | | required to be registered under the Illinois
Vehicle Code.
| 6 | | (11) Proceeds from the sale of photoprocessing machinery | 7 | | and
equipment, including repair and replacement parts, both new | 8 | | and
used, including that manufactured on special order, | 9 | | certified by the
purchaser to be used primarily for | 10 | | photoprocessing, and including
photoprocessing machinery and | 11 | | equipment purchased for lease.
| 12 | | (12) Coal and aggregate exploration, mining, off-highway | 13 | | hauling,
processing,
maintenance, and reclamation equipment, | 14 | | including
replacement parts and equipment, and including
| 15 | | equipment purchased for lease, but excluding motor vehicles | 16 | | required to be
registered under the Illinois Vehicle Code. The | 17 | | changes made to this Section by Public Act 97-767 apply on and | 18 | | after July 1, 2003, but no claim for credit or refund is | 19 | | allowed on or after August 16, 2013 (the effective date of | 20 | | Public Act 98-456)
for such taxes paid during the period | 21 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 22 | | effective date of Public Act 98-456).
| 23 | | (13) Semen used for artificial insemination of livestock | 24 | | for direct
agricultural production.
| 25 | | (14) Horses, or interests in horses, registered with and | 26 | | meeting the
requirements of any of the
Arabian Horse Club |
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| 1 | | Registry of America, Appaloosa Horse Club, American Quarter
| 2 | | Horse Association, United States
Trotting Association, or | 3 | | Jockey Club, as appropriate, used for
purposes of breeding or | 4 | | racing for prizes. This item (14) is exempt from the provisions | 5 | | of Section 3-75, and the exemption provided for under this item | 6 | | (14) applies for all periods beginning May 30, 1995, but no | 7 | | claim for credit or refund is allowed on or after the effective | 8 | | date of this amendatory Act of the 95th General Assembly for | 9 | | such taxes paid during the period beginning May 30, 2000 and | 10 | | ending on the effective date of this amendatory Act of the 95th | 11 | | General Assembly.
| 12 | | (15) Computers and communications equipment utilized for | 13 | | any
hospital
purpose
and equipment used in the diagnosis,
| 14 | | analysis, or treatment of hospital patients purchased by a | 15 | | lessor who leases
the
equipment, under a lease of one year or | 16 | | longer executed or in effect at the
time
the lessor would | 17 | | otherwise be subject to the tax imposed by this Act,
to a
| 18 | | hospital
that has been issued an active tax exemption | 19 | | identification number by the
Department under Section 1g of the | 20 | | Retailers' Occupation Tax Act.
If the
equipment is leased in a | 21 | | manner that does not qualify for
this exemption
or is used in | 22 | | any other non-exempt manner,
the lessor shall be liable for the
| 23 | | tax imposed under this Act or the Use Tax Act, as the case may
| 24 | | be, based on the fair market value of the property at the time | 25 | | the
non-qualifying use occurs. No lessor shall collect or | 26 | | attempt to collect an
amount (however
designated) that purports |
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| 1 | | to reimburse that lessor for the tax imposed by this
Act or the | 2 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 3 | | the lessor. If a lessor improperly collects any such amount | 4 | | from the
lessee, the lessee shall have a legal right to claim a | 5 | | refund of that amount
from the lessor. If, however, that amount | 6 | | is not refunded to the lessee for
any reason, the lessor is | 7 | | liable to pay that amount to the Department.
| 8 | | (16) Personal property purchased by a lessor who leases the
| 9 | | property, under
a
lease of one year or longer executed or in | 10 | | effect at the time
the lessor would otherwise be subject to the | 11 | | tax imposed by this Act,
to a governmental body
that has been | 12 | | issued an active tax exemption identification number by the
| 13 | | Department under Section 1g of the Retailers' Occupation Tax | 14 | | Act.
If the
property is leased in a manner that does not | 15 | | qualify for
this exemption
or is used in any other non-exempt | 16 | | manner,
the lessor shall be liable for the
tax imposed under | 17 | | this Act or the Use Tax Act, as the case may
be, based on the | 18 | | fair market value of the property at the time the
| 19 | | non-qualifying use occurs. No lessor shall collect or attempt | 20 | | to collect an
amount (however
designated) that purports to | 21 | | reimburse that lessor for the tax imposed by this
Act or the | 22 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 23 | | the lessor. If a lessor improperly collects any such amount | 24 | | from the
lessee, the lessee shall have a legal right to claim a | 25 | | refund of that amount
from the lessor. If, however, that amount | 26 | | is not refunded to the lessee for
any reason, the lessor is |
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| 1 | | liable to pay that amount to the Department.
| 2 | | (17) Beginning with taxable years ending on or after | 3 | | December
31,
1995
and
ending with taxable years ending on or | 4 | | before December 31, 2004,
personal property that is
donated for | 5 | | disaster relief to be used in a State or federally declared
| 6 | | disaster area in Illinois or bordering Illinois by a | 7 | | manufacturer or retailer
that is registered in this State to a | 8 | | corporation, society, association,
foundation, or institution | 9 | | that has been issued a sales tax exemption
identification | 10 | | number by the Department that assists victims of the disaster
| 11 | | who reside within the declared disaster area.
| 12 | | (18) Beginning with taxable years ending on or after | 13 | | December
31, 1995 and
ending with taxable years ending on or | 14 | | before December 31, 2004, personal
property that is used in the | 15 | | performance of infrastructure repairs in this
State, including | 16 | | but not limited to municipal roads and streets, access roads,
| 17 | | bridges, sidewalks, waste disposal systems, water and sewer | 18 | | line extensions,
water distribution and purification | 19 | | facilities, storm water drainage and
retention facilities, and | 20 | | sewage treatment facilities, resulting from a State
or | 21 | | federally declared disaster in Illinois or bordering Illinois | 22 | | when such
repairs are initiated on facilities located in the | 23 | | declared disaster area
within 6 months after the disaster.
| 24 | | (19) Beginning July 1, 1999, game or game birds purchased | 25 | | at a "game
breeding
and hunting preserve area" as that term is
| 26 | | used in
the Wildlife Code. This paragraph is exempt from the |
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| 1 | | provisions
of
Section 3-75.
| 2 | | (20) A motor vehicle, as that term is defined in Section | 3 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 4 | | corporation, limited liability
company, society, association, | 5 | | foundation, or institution that is determined by
the Department | 6 | | to be organized and operated exclusively for educational
| 7 | | purposes. For purposes of this exemption, "a corporation, | 8 | | limited liability
company, society, association, foundation, | 9 | | or institution organized and
operated
exclusively for | 10 | | educational purposes" means all tax-supported public schools,
| 11 | | private schools that offer systematic instruction in useful | 12 | | branches of
learning by methods common to public schools and | 13 | | that compare favorably in
their scope and intensity with the | 14 | | course of study presented in tax-supported
schools, and | 15 | | vocational or technical schools or institutes organized and
| 16 | | operated exclusively to provide a course of study of not less | 17 | | than 6 weeks
duration and designed to prepare individuals to | 18 | | follow a trade or to pursue a
manual, technical, mechanical, | 19 | | industrial, business, or commercial
occupation.
| 20 | | (21) Beginning January 1, 2000, personal property, | 21 | | including
food,
purchased through fundraising
events for the | 22 | | benefit of
a public or private elementary or
secondary school, | 23 | | a group of those schools, or one or more school
districts if | 24 | | the events are
sponsored by an entity recognized by the school | 25 | | district that consists
primarily of volunteers and includes
| 26 | | parents and teachers of the school children. This paragraph |
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| 1 | | does not apply
to fundraising
events (i) for the benefit of | 2 | | private home instruction or (ii)
for which the fundraising | 3 | | entity purchases the personal property sold at
the events from | 4 | | another individual or entity that sold the property for the
| 5 | | purpose of resale by the fundraising entity and that
profits | 6 | | from the sale to the
fundraising entity. This paragraph is | 7 | | exempt
from the provisions
of Section 3-75.
| 8 | | (22) Beginning January 1, 2000
and through December 31, | 9 | | 2001, new or used automatic vending
machines that prepare and | 10 | | serve hot food and beverages, including coffee, soup,
and
other | 11 | | items, and replacement parts for these machines.
Beginning | 12 | | January 1,
2002 and through June 30, 2003, machines and parts | 13 | | for machines used in
commercial, coin-operated
amusement
and | 14 | | vending business if a use or occupation tax is paid on the | 15 | | gross receipts
derived from
the use of the commercial, | 16 | | coin-operated amusement and vending machines.
This
paragraph
| 17 | | is exempt from the provisions of Section 3-75.
| 18 | | (23) Beginning August 23, 2001 and through June 30, 2016, | 19 | | food for human consumption that is to be consumed off the
| 20 | | premises
where it is sold (other than alcoholic beverages, soft | 21 | | drinks, and food that
has been prepared for immediate | 22 | | consumption) and prescription and
nonprescription medicines, | 23 | | drugs, medical appliances, and insulin, urine
testing | 24 | | materials, syringes, and needles used by diabetics, for human | 25 | | use, when
purchased for use by a person receiving medical | 26 | | assistance under Article V of
the Illinois Public Aid Code who |
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| 1 | | resides in a licensed long-term care facility,
as defined in | 2 | | the Nursing Home Care Act, or in a licensed facility as defined | 3 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 4 | | Specialized Mental Health Rehabilitation Act of 2013.
| 5 | | (24) Beginning on the effective date of this amendatory Act | 6 | | of the 92nd
General Assembly, computers and communications | 7 | | equipment
utilized for any hospital purpose and equipment used | 8 | | in the diagnosis,
analysis, or treatment of hospital patients | 9 | | purchased by a lessor who leases
the equipment, under a lease | 10 | | of one year or longer executed or in effect at the
time the | 11 | | lessor would otherwise be subject to the tax imposed by this | 12 | | Act, to a
hospital that has been issued an active tax exemption | 13 | | identification number by
the Department under Section 1g of the | 14 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 15 | | manner that does not qualify for this exemption or is
used in | 16 | | any other nonexempt manner, the lessor shall be liable for the
| 17 | | tax imposed under this Act or the Use Tax Act, as the case may | 18 | | be, based on the
fair market value of the property at the time | 19 | | the nonqualifying use occurs.
No lessor shall collect or | 20 | | attempt to collect an amount (however
designated) that purports | 21 | | to reimburse that lessor for the tax imposed by this
Act or the | 22 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 23 | | the lessor. If a lessor improperly collects any such amount | 24 | | from the
lessee, the lessee shall have a legal right to claim a | 25 | | refund of that amount
from the lessor. If, however, that amount | 26 | | is not refunded to the lessee for
any reason, the lessor is |
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| 1 | | liable to pay that amount to the Department.
This paragraph is | 2 | | exempt from the provisions of Section 3-75.
| 3 | | (25) Beginning
on the effective date of this amendatory Act | 4 | | of the 92nd General Assembly,
personal property purchased by a | 5 | | lessor
who leases the property, under a lease of one year or | 6 | | longer executed or in
effect at the time the lessor would | 7 | | otherwise be subject to the tax imposed by
this Act, to a | 8 | | governmental body that has been issued an active tax exemption
| 9 | | identification number by the Department under Section 1g of the | 10 | | Retailers'
Occupation Tax Act. If the property is leased in a | 11 | | manner that does not
qualify for this exemption or is used in | 12 | | any other nonexempt manner, the
lessor shall be liable for the | 13 | | tax imposed under this Act or the Use Tax Act,
as the case may | 14 | | be, based on the fair market value of the property at the time
| 15 | | the nonqualifying use occurs. No lessor shall collect or | 16 | | attempt to collect
an amount (however designated) that purports | 17 | | to reimburse that lessor for the
tax imposed by this Act or the | 18 | | Use Tax Act, as the case may be, if the tax has
not been paid by | 19 | | the lessor. If a lessor improperly collects any such amount
| 20 | | from the lessee, the lessee shall have a legal right to claim a | 21 | | refund of that
amount from the lessor. If, however, that amount | 22 | | is not refunded to the lessee
for any reason, the lessor is | 23 | | liable to pay that amount to the Department.
This paragraph is | 24 | | exempt from the provisions of Section 3-75.
| 25 | | (26) Beginning January 1, 2008, tangible personal property | 26 | | used in the construction or maintenance of a community water |
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| 1 | | supply, as defined under Section 3.145 of the Environmental | 2 | | Protection Act, that is operated by a not-for-profit | 3 | | corporation that holds a valid water supply permit issued under | 4 | | Title IV of the Environmental Protection Act. This paragraph is | 5 | | exempt from the provisions of Section 3-75.
| 6 | | (27) Beginning January 1, 2010, materials, parts, | 7 | | equipment, components, and furnishings incorporated into or | 8 | | upon an aircraft as part of the modification, refurbishment, | 9 | | completion, replacement, repair, or maintenance of the | 10 | | aircraft. This exemption includes consumable supplies used in | 11 | | the modification, refurbishment, completion, replacement, | 12 | | repair, and maintenance of aircraft, but excludes any | 13 | | materials, parts, equipment, components, and consumable | 14 | | supplies used in the modification, replacement, repair, and | 15 | | maintenance of aircraft engines or power plants, whether such | 16 | | engines or power plants are installed or uninstalled upon any | 17 | | such aircraft. "Consumable supplies" include, but are not | 18 | | limited to, adhesive, tape, sandpaper, general purpose | 19 | | lubricants, cleaning solution, latex gloves, and protective | 20 | | films. This exemption applies only to the use of qualifying | 21 | | tangible personal property transferred incident to the | 22 | | modification, refurbishment, completion, replacement, repair, | 23 | | or maintenance of aircraft by persons who (i) hold an Air | 24 | | Agency Certificate and are empowered to operate an approved | 25 | | repair station by the Federal Aviation Administration, (ii) | 26 | | have a Class IV Rating, and (iii) conduct operations in |
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| 1 | | accordance with Part 145 of the Federal Aviation Regulations. | 2 | | The exemption does not include aircraft operated by a | 3 | | commercial air carrier providing scheduled passenger air | 4 | | service pursuant to authority issued under Part 121 or Part 129 | 5 | | of the Federal Aviation Regulations. The changes made to this | 6 | | paragraph (27) by Public Act 98-534 are declarative of existing | 7 | | law. | 8 | | (28) Tangible personal property purchased by a | 9 | | public-facilities corporation, as described in Section | 10 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 11 | | constructing or furnishing a municipal convention hall, but | 12 | | only if the legal title to the municipal convention hall is | 13 | | transferred to the municipality without any further | 14 | | consideration by or on behalf of the municipality at the time | 15 | | of the completion of the municipal convention hall or upon the | 16 | | retirement or redemption of any bonds or other debt instruments | 17 | | issued by the public-facilities corporation in connection with | 18 | | the development of the municipal convention hall. This | 19 | | exemption includes existing public-facilities corporations as | 20 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 21 | | This paragraph is exempt from the provisions of Section 3-75. | 22 | | (29) Personal property purchased by a purchaser who is | 23 | | exempt from the tax imposed by this Act by operation of federal | 24 | | law. This paragraph is exempt from the provisions of Section | 25 | | 3-75. | 26 | | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; |
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| 1 | | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | 2 | | 7-16-14; 99-180, eff. 7-29-15.)
| 3 | | Section 20. The Service Occupation Tax Act is amended by | 4 | | changing Section 3-5 as follows:
| 5 | | (35 ILCS 115/3-5)
| 6 | | Sec. 3-5. Exemptions. The following tangible personal | 7 | | property is
exempt from the tax imposed by this Act:
| 8 | | (1) Personal property sold by a corporation, society, | 9 | | association,
foundation, institution, or organization, other | 10 | | than a limited liability
company, that is organized and | 11 | | operated as a not-for-profit service enterprise
for the benefit | 12 | | of persons 65 years of age or older if the personal property
| 13 | | was not purchased by the enterprise for the purpose of resale | 14 | | by the
enterprise.
| 15 | | (2) Personal property purchased by a not-for-profit | 16 | | Illinois county fair
association for use in conducting, | 17 | | operating, or promoting the county fair.
| 18 | | (3) Personal property purchased by any not-for-profit
arts | 19 | | or cultural organization that establishes, by proof required by | 20 | | the
Department by
rule, that it has received an exemption under | 21 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 22 | | organized and operated primarily for the
presentation
or | 23 | | support of arts or cultural programming, activities, or | 24 | | services. These
organizations include, but are not limited to, |
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| 1 | | music and dramatic arts
organizations such as symphony | 2 | | orchestras and theatrical groups, arts and
cultural service | 3 | | organizations, local arts councils, visual arts organizations,
| 4 | | and media arts organizations.
On and after the effective date | 5 | | of this amendatory Act of the 92nd General
Assembly, however, | 6 | | an entity otherwise eligible for this exemption shall not
make | 7 | | tax-free purchases unless it has an active identification | 8 | | number issued by
the Department.
| 9 | | (4) Legal tender, currency, medallions, or gold or silver | 10 | | coinage
issued by the State of Illinois, the government of the | 11 | | United States of
America, or the government of any foreign | 12 | | country, and bullion.
| 13 | | (5) Until July 1, 2003 and beginning again on September 1, | 14 | | 2004 through August 30, 2014, graphic arts machinery and | 15 | | equipment, including
repair and
replacement parts, both new and | 16 | | used, and including that manufactured on
special order or | 17 | | purchased for lease, certified by the purchaser to be used
| 18 | | primarily for graphic arts production.
Equipment includes | 19 | | chemicals or chemicals acting as catalysts but only if
the
| 20 | | chemicals or chemicals acting as catalysts effect a direct and | 21 | | immediate change
upon a graphic arts product.
| 22 | | (6) Personal property sold by a teacher-sponsored student | 23 | | organization
affiliated with an elementary or secondary school | 24 | | located in Illinois.
| 25 | | (7) Farm machinery and equipment, both new and used, | 26 | | including that
manufactured on special order, certified by the |
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| 1 | | purchaser to be used
primarily for production agriculture or | 2 | | State or federal agricultural
programs, including individual | 3 | | replacement parts for the machinery and
equipment, including | 4 | | machinery and equipment purchased for lease,
and including | 5 | | implements of husbandry defined in Section 1-130 of
the | 6 | | Illinois Vehicle Code, farm machinery and agricultural | 7 | | chemical and
fertilizer spreaders, and nurse wagons required to | 8 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 9 | | but
excluding other motor vehicles required to be registered | 10 | | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 11 | | hoop houses used for propagating, growing, or
overwintering | 12 | | plants shall be considered farm machinery and equipment under
| 13 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 14 | | shall include units sold
separately from a motor vehicle | 15 | | required to be licensed and units sold mounted
on a motor | 16 | | vehicle required to be licensed if the selling price of the | 17 | | tender
is separately stated.
| 18 | | Farm machinery and equipment shall include precision | 19 | | farming equipment
that is
installed or purchased to be | 20 | | installed on farm machinery and equipment
including, but not | 21 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 22 | | or spreaders.
Precision farming equipment includes, but is not | 23 | | limited to,
soil testing sensors, computers, monitors, | 24 | | software, global positioning
and mapping systems, and other | 25 | | such equipment.
| 26 | | Farm machinery and equipment also includes computers, |
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| 1 | | sensors, software, and
related equipment used primarily in the
| 2 | | computer-assisted operation of production agriculture | 3 | | facilities, equipment,
and activities such as, but
not limited | 4 | | to,
the collection, monitoring, and correlation of
animal and | 5 | | crop data for the purpose of
formulating animal diets and | 6 | | agricultural chemicals. This item (7) is exempt
from the | 7 | | provisions of
Section 3-55.
| 8 | | (8) Until June 30, 2013, fuel and petroleum products sold | 9 | | to or used by an air common
carrier, certified by the carrier | 10 | | to be used for consumption, shipment,
or storage in the conduct | 11 | | of its business as an air common carrier, for
a flight destined | 12 | | for or returning from a location or locations
outside the | 13 | | United States without regard to previous or subsequent domestic
| 14 | | stopovers.
| 15 | | Beginning July 1, 2013, fuel and petroleum products sold to | 16 | | or used by an air carrier, certified by the carrier to be used | 17 | | for consumption, shipment, or storage in the conduct of its | 18 | | business as an air common carrier, for a flight that (i) is | 19 | | engaged in foreign trade or is engaged in trade between the | 20 | | United States and any of its possessions and (ii) transports at | 21 | | least one individual or package for hire from the city of | 22 | | origination to the city of final destination on the same | 23 | | aircraft, without regard to a change in the flight number of | 24 | | that aircraft. | 25 | | (9) Proceeds of mandatory service charges separately
| 26 | | stated on customers' bills for the purchase and consumption of |
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| 1 | | food and
beverages, to the extent that the proceeds of the | 2 | | service charge are in fact
turned over as tips or as a | 3 | | substitute for tips to the employees who
participate directly | 4 | | in preparing, serving, hosting or cleaning up the
food or | 5 | | beverage function with respect to which the service charge is | 6 | | imposed.
| 7 | | (10) Until July 1, 2003, oil field exploration, drilling, | 8 | | and production
equipment,
including (i) rigs and parts of rigs, | 9 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 10 | | tubular goods, including casing and
drill strings, (iii) pumps | 11 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 12 | | individual replacement part for oil field exploration,
| 13 | | drilling, and production equipment, and (vi) machinery and | 14 | | equipment purchased
for lease; but
excluding motor vehicles | 15 | | required to be registered under the Illinois
Vehicle Code.
| 16 | | (11) Photoprocessing machinery and equipment, including | 17 | | repair and
replacement parts, both new and used, including that | 18 | | manufactured on
special order, certified by the purchaser to be | 19 | | used primarily for
photoprocessing, and including | 20 | | photoprocessing machinery and equipment
purchased for lease.
| 21 | | (12) Coal and aggregate exploration, mining, off-highway | 22 | | hauling,
processing,
maintenance, and reclamation equipment, | 23 | | including
replacement parts and equipment, and including
| 24 | | equipment
purchased for lease, but excluding motor vehicles | 25 | | required to be registered
under the Illinois Vehicle Code. The | 26 | | changes made to this Section by Public Act 97-767 apply on and |
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| 1 | | after July 1, 2003, but no claim for credit or refund is | 2 | | allowed on or after August 16, 2013 (the effective date of | 3 | | Public Act 98-456)
for such taxes paid during the period | 4 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 5 | | effective date of Public Act 98-456).
| 6 | | (13) Beginning January 1, 1992 and through June 30, 2016, | 7 | | food for human consumption that is to be consumed off the | 8 | | premises
where it is sold (other than alcoholic beverages, soft | 9 | | drinks and food that
has been prepared for immediate | 10 | | consumption) and prescription and
non-prescription medicines, | 11 | | drugs, medical appliances, and insulin, urine
testing | 12 | | materials, syringes, and needles used by diabetics, for human | 13 | | use,
when purchased for use by a person receiving medical | 14 | | assistance under
Article V of the Illinois Public Aid Code who | 15 | | resides in a licensed
long-term care facility, as defined in | 16 | | the Nursing Home Care Act, or in a licensed facility as defined | 17 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 18 | | Specialized Mental Health Rehabilitation Act of 2013.
| 19 | | (14) Semen used for artificial insemination of livestock | 20 | | for direct
agricultural production.
| 21 | | (15) Horses, or interests in horses, registered with and | 22 | | meeting the
requirements of any of the
Arabian Horse Club | 23 | | Registry of America, Appaloosa Horse Club, American Quarter
| 24 | | Horse Association, United States
Trotting Association, or | 25 | | Jockey Club, as appropriate, used for
purposes of breeding or | 26 | | racing for prizes. This item (15) is exempt from the provisions |
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| 1 | | of Section 3-55, and the exemption provided for under this item | 2 | | (15) applies for all periods beginning May 30, 1995, but no | 3 | | claim for credit or refund is allowed on or after January 1, | 4 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 5 | | paid during the period beginning May 30, 2000 and ending on | 6 | | January 1, 2008 (the effective date of Public Act 95-88).
| 7 | | (16) Computers and communications equipment utilized for | 8 | | any
hospital
purpose
and equipment used in the diagnosis,
| 9 | | analysis, or treatment of hospital patients sold to a lessor | 10 | | who leases the
equipment, under a lease of one year or longer | 11 | | executed or in effect at the
time of the purchase, to a
| 12 | | hospital
that has been issued an active tax exemption | 13 | | identification number by the
Department under Section 1g of the | 14 | | Retailers' Occupation Tax Act.
| 15 | | (17) Personal property sold to a lessor who leases the
| 16 | | property, under a
lease of one year or longer executed or in | 17 | | effect at the time of the purchase,
to a governmental body
that | 18 | | has been issued an active tax exemption identification number | 19 | | by the
Department under Section 1g of the Retailers' Occupation | 20 | | Tax Act.
| 21 | | (18) 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
donated for | 24 | | disaster relief to be used in a State or federally declared
| 25 | | disaster area in Illinois or bordering Illinois by a | 26 | | manufacturer or retailer
that is registered in this State to a |
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| 1 | | corporation, society, association,
foundation, or institution | 2 | | that has been issued a sales tax exemption
identification | 3 | | number by the Department that assists victims of the disaster
| 4 | | who reside within the declared disaster area.
| 5 | | (19) Beginning with taxable years ending on or after | 6 | | December
31, 1995 and
ending with taxable years ending on or | 7 | | before December 31, 2004, personal
property that is used in the | 8 | | performance of infrastructure repairs in this
State, including | 9 | | but not limited to municipal roads and streets, access roads,
| 10 | | bridges, sidewalks, waste disposal systems, water and sewer | 11 | | line extensions,
water distribution and purification | 12 | | facilities, storm water drainage and
retention facilities, and | 13 | | sewage treatment facilities, resulting from a State
or | 14 | | federally declared disaster in Illinois or bordering Illinois | 15 | | when such
repairs are initiated on facilities located in the | 16 | | declared disaster area
within 6 months after the disaster.
| 17 | | (20) Beginning July 1, 1999, game or game birds sold at a | 18 | | "game breeding
and
hunting preserve area" as that term is used
| 19 | | in the
Wildlife Code. This paragraph is exempt from the | 20 | | provisions
of
Section 3-55.
| 21 | | (21) A motor vehicle, as that term is defined in Section | 22 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 23 | | corporation, limited liability
company, society, association, | 24 | | foundation, or institution that is determined by
the Department | 25 | | to be organized and operated exclusively for educational
| 26 | | purposes. For purposes of this exemption, "a corporation, |
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| 1 | | limited liability
company, society, association, foundation, | 2 | | or institution organized and
operated
exclusively for | 3 | | educational purposes" means all tax-supported public schools,
| 4 | | private schools that offer systematic instruction in useful | 5 | | branches of
learning by methods common to public schools and | 6 | | that compare favorably in
their scope and intensity with the | 7 | | course of study presented in tax-supported
schools, and | 8 | | vocational or technical schools or institutes organized and
| 9 | | operated exclusively to provide a course of study of not less | 10 | | than 6 weeks
duration and designed to prepare individuals to | 11 | | follow a trade or to pursue a
manual, technical, mechanical, | 12 | | industrial, business, or commercial
occupation.
| 13 | | (22) Beginning January 1, 2000, personal property, | 14 | | including
food,
purchased through fundraising
events for the | 15 | | benefit of
a public or private elementary or
secondary school, | 16 | | a group of those schools, or one or more school
districts if | 17 | | the events are
sponsored by an entity recognized by the school | 18 | | district that consists
primarily of volunteers and includes
| 19 | | parents and teachers of the school children. This paragraph | 20 | | does not apply
to fundraising
events (i) for the benefit of | 21 | | private home instruction or (ii)
for which the fundraising | 22 | | entity purchases the personal property sold at
the events from | 23 | | another individual or entity that sold the property for the
| 24 | | purpose of resale by the fundraising entity and that
profits | 25 | | from the sale to the
fundraising entity. This paragraph is | 26 | | exempt
from the provisions
of Section 3-55.
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| 1 | | (23) Beginning January 1, 2000
and through December 31, | 2 | | 2001, new or used automatic vending
machines that prepare and | 3 | | serve hot food and beverages, including coffee, soup,
and
other | 4 | | items, and replacement parts for these machines.
Beginning | 5 | | January 1,
2002 and through June 30, 2003, machines and parts | 6 | | for
machines used in commercial, coin-operated amusement
and | 7 | | vending business if a use or occupation tax is paid on the | 8 | | gross receipts
derived from
the use of the commercial, | 9 | | coin-operated amusement and vending machines.
This paragraph | 10 | | is exempt from the provisions of Section 3-55.
| 11 | | (24) Beginning
on the effective date of this amendatory Act | 12 | | of the 92nd General Assembly,
computers and communications | 13 | | equipment
utilized for any hospital purpose and equipment used | 14 | | in the diagnosis,
analysis, or treatment of hospital patients | 15 | | sold to a lessor who leases the
equipment, under a lease of one | 16 | | year or longer executed or in effect at the
time of the | 17 | | purchase, to a hospital that has been issued an active tax
| 18 | | exemption identification number by the Department under | 19 | | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 20 | | is exempt from the provisions of
Section 3-55.
| 21 | | (25) Beginning
on the effective date of this amendatory Act | 22 | | of the 92nd General Assembly,
personal property sold to a | 23 | | lessor who
leases the property, under a lease of one year or | 24 | | longer executed or in effect
at the time of the purchase, to a | 25 | | governmental body 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. This paragraph is exempt from | 2 | | the
provisions of Section 3-55.
| 3 | | (26) Beginning on January 1, 2002 and through June 30, | 4 | | 2016, tangible personal property
purchased
from an Illinois | 5 | | retailer by a taxpayer engaged in centralized purchasing
| 6 | | activities in Illinois who will, upon receipt of the property | 7 | | in Illinois,
temporarily store the property in Illinois (i) for | 8 | | the purpose of subsequently
transporting it outside this State | 9 | | for use or consumption thereafter solely
outside this State or | 10 | | (ii) for the purpose of being processed, fabricated, or
| 11 | | manufactured into, attached to, or incorporated into other | 12 | | tangible personal
property to be transported outside this State | 13 | | and thereafter used or consumed
solely outside this State. The | 14 | | Director of Revenue shall, pursuant to rules
adopted in | 15 | | accordance with the Illinois Administrative Procedure Act, | 16 | | issue a
permit to any taxpayer in good standing with the | 17 | | Department who is eligible for
the exemption under this | 18 | | paragraph (26). The permit issued under
this paragraph (26) | 19 | | shall authorize the holder, to the extent and
in the manner | 20 | | specified in the rules adopted under this Act, to purchase
| 21 | | tangible personal property from a retailer exempt from the | 22 | | taxes imposed by
this Act. Taxpayers shall maintain all | 23 | | necessary books and records to
substantiate the use and | 24 | | consumption of all such tangible personal property
outside of | 25 | | the State of Illinois.
| 26 | | (27) Beginning January 1, 2008, tangible personal property |
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| 1 | | used in the construction or maintenance of a community water | 2 | | supply, as defined under Section 3.145 of the Environmental | 3 | | Protection Act, that is operated by a not-for-profit | 4 | | corporation that holds a valid water supply permit issued under | 5 | | Title IV of the Environmental Protection Act. This paragraph is | 6 | | exempt from the provisions of Section 3-55.
| 7 | | (28) Tangible personal property sold to a | 8 | | public-facilities corporation, as described in Section | 9 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 10 | | constructing or furnishing a municipal convention hall, but | 11 | | only if the legal title to the municipal convention hall is | 12 | | transferred to the municipality without any further | 13 | | consideration by or on behalf of the municipality at the time | 14 | | of the completion of the municipal convention hall or upon the | 15 | | retirement or redemption of any bonds or other debt instruments | 16 | | issued by the public-facilities corporation in connection with | 17 | | the development of the municipal convention hall. This | 18 | | exemption includes existing public-facilities corporations as | 19 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 20 | | This paragraph is exempt from the provisions of Section 3-55. | 21 | | (29) Beginning January 1, 2010, materials, parts, | 22 | | equipment, components, and furnishings incorporated into or | 23 | | upon an aircraft as part of the modification, refurbishment, | 24 | | completion, replacement, repair, or maintenance of the | 25 | | aircraft. This exemption includes consumable supplies used in | 26 | | the modification, refurbishment, completion, replacement, |
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| 1 | | repair, and maintenance of aircraft, but excludes any | 2 | | materials, parts, equipment, components, and consumable | 3 | | supplies used in the modification, replacement, repair, and | 4 | | maintenance of aircraft engines or power plants, whether such | 5 | | engines or power plants are installed or uninstalled upon any | 6 | | such aircraft. "Consumable supplies" include, but are not | 7 | | limited to, adhesive, tape, sandpaper, general purpose | 8 | | lubricants, cleaning solution, latex gloves, and protective | 9 | | films. This exemption applies only to the transfer of | 10 | | qualifying tangible personal property incident to the | 11 | | modification, refurbishment, completion, replacement, repair, | 12 | | or maintenance of an aircraft by persons who (i) hold an Air | 13 | | Agency Certificate and are empowered to operate an approved | 14 | | repair station by the Federal Aviation Administration, (ii) | 15 | | have a Class IV Rating, and (iii) conduct operations in | 16 | | accordance with Part 145 of the Federal Aviation Regulations. | 17 | | The exemption does not include aircraft operated by a | 18 | | commercial air carrier providing scheduled passenger air | 19 | | service pursuant to authority issued under Part 121 or Part 129 | 20 | | of the Federal Aviation Regulations. The changes made to this | 21 | | paragraph (29) by Public Act 98-534 are declarative of existing | 22 | | law. | 23 | | (30) Personal property purchased by a purchaser who is | 24 | | exempt from use tax by operation of federal law. This paragraph | 25 | | is exempt from the provisions of Section 3-55. | 26 | | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; |
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| 1 | | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | 2 | | 7-16-14; 99-180, eff. 7-29-15.)
| 3 | | Section 25. The Retailers' Occupation Tax Act is amended by | 4 | | changing Section 2-5 as follows:
| 5 | | (35 ILCS 120/2-5)
| 6 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 7 | | sale of
the following tangible personal property are exempt | 8 | | from the tax imposed
by this Act:
| 9 | | (1) Farm chemicals.
| 10 | | (2) 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 (2).
Agricultural chemical tender tanks and dry boxes |
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| 1 | | shall include units sold
separately from a motor vehicle | 2 | | required to be licensed and units sold mounted
on a motor | 3 | | vehicle required to be licensed, if the selling price of the | 4 | | tender
is separately stated.
| 5 | | Farm machinery and equipment shall include precision | 6 | | farming equipment
that is
installed or purchased to be | 7 | | installed on farm machinery and equipment
including, but not | 8 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 9 | | or spreaders.
Precision farming equipment includes, but is not | 10 | | limited to,
soil testing sensors, computers, monitors, | 11 | | software, global positioning
and mapping systems, and other | 12 | | such equipment.
| 13 | | Farm machinery and equipment also includes computers, | 14 | | sensors, software, and
related equipment used primarily in the
| 15 | | computer-assisted operation of production agriculture | 16 | | facilities, equipment,
and activities such as, but
not limited | 17 | | to,
the collection, monitoring, and correlation of
animal and | 18 | | crop data for the purpose of
formulating animal diets and | 19 | | agricultural chemicals. This item (2) is exempt
from the | 20 | | provisions of
Section 2-70.
| 21 | | (3) Until July 1, 2003, distillation machinery and | 22 | | equipment, sold as a
unit or kit,
assembled or installed by the | 23 | | retailer, certified by the user to be used
only for the | 24 | | production of ethyl alcohol that will be used for consumption
| 25 | | as motor fuel or as a component of motor fuel for the personal | 26 | | use of the
user, and not subject to sale or resale.
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| 1 | | (4) Until July 1, 2003 and beginning again September 1, | 2 | | 2004 through August 30, 2014, graphic arts machinery and | 3 | | equipment, including
repair and
replacement parts, both new and | 4 | | used, and including that manufactured on
special order or | 5 | | purchased for lease, certified by the purchaser to be used
| 6 | | primarily for graphic arts production.
Equipment includes | 7 | | chemicals or
chemicals acting as catalysts but only if
the | 8 | | chemicals or chemicals acting as catalysts effect a direct and | 9 | | immediate
change upon a
graphic arts product.
| 10 | | (5) A motor vehicle that is used for automobile renting, as | 11 | | defined in the Automobile Renting Occupation and Use Tax Act. | 12 | | This paragraph is exempt from
the provisions of Section 2-70.
| 13 | | (6) Personal property sold by a teacher-sponsored student | 14 | | organization
affiliated with an elementary or secondary school | 15 | | located in Illinois.
| 16 | | (7) Until July 1, 2003, proceeds of that portion of the | 17 | | selling price of
a passenger car the
sale of which is subject | 18 | | to the Replacement Vehicle Tax.
| 19 | | (8) Personal property sold to an Illinois county fair | 20 | | association for
use in conducting, operating, or promoting the | 21 | | county fair.
| 22 | | (9) Personal property sold to a not-for-profit arts
or | 23 | | cultural organization that establishes, by proof required by | 24 | | the Department
by
rule, that it has received an exemption under | 25 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 26 | | 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 | | (10) Personal property sold by a corporation, society, | 12 | | association,
foundation, institution, or organization, other | 13 | | than a limited liability
company, that is organized and | 14 | | operated as a not-for-profit service enterprise
for the benefit | 15 | | of persons 65 years of age or older if the personal property
| 16 | | was not purchased by the enterprise for the purpose of resale | 17 | | by the
enterprise.
| 18 | | (11) Personal property sold to a governmental body, to a | 19 | | corporation,
society, association, foundation, or institution | 20 | | organized and operated
exclusively for charitable, religious, | 21 | | or educational purposes, or to a
not-for-profit corporation, | 22 | | society, association, foundation, institution,
or organization | 23 | | that has no compensated officers or employees and that is
| 24 | | organized and operated primarily for the recreation of persons | 25 | | 55 years of
age or older. A limited liability company may | 26 | | qualify for the exemption under
this paragraph only if the |
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| 1 | | limited liability company is organized and operated
| 2 | | exclusively for educational purposes. On and after July 1, | 3 | | 1987, however, no
entity otherwise eligible for this exemption | 4 | | shall make tax-free purchases
unless it has an active | 5 | | identification number issued by the Department.
| 6 | | (12) Tangible personal property sold to
interstate | 7 | | carriers
for hire for use as
rolling stock moving in interstate | 8 | | commerce or to lessors under leases of
one year or longer | 9 | | executed or in effect at the time of purchase by
interstate | 10 | | carriers for hire for use as rolling stock moving in interstate
| 11 | | commerce and equipment operated by a telecommunications | 12 | | provider, licensed as a
common carrier by the Federal | 13 | | Communications Commission, which is permanently
installed in | 14 | | or affixed to aircraft moving in interstate commerce.
| 15 | | (12-5) On and after July 1, 2003 and through June 30, 2004, | 16 | | motor vehicles of the second division
with a gross vehicle | 17 | | weight in excess of 8,000 pounds
that
are
subject to the | 18 | | commercial distribution fee imposed under Section 3-815.1 of
| 19 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 20 | | through June 30, 2005, the use in this State of motor vehicles | 21 | | of the second division: (i) with a gross vehicle weight rating | 22 | | in excess of 8,000 pounds; (ii) that are subject to the | 23 | | commercial distribution fee imposed under Section 3-815.1 of | 24 | | the Illinois Vehicle Code; and (iii) that are primarily used | 25 | | for commercial purposes. Through June 30, 2005, this
exemption | 26 | | applies to repair and replacement parts added
after the
initial |
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| 1 | | purchase of such a motor vehicle if that motor vehicle is used | 2 | | in a
manner that
would qualify for the rolling stock exemption | 3 | | otherwise provided for in this
Act. For purposes of this | 4 | | paragraph, "used for commercial purposes" means the | 5 | | transportation of persons or property in furtherance of any | 6 | | commercial or industrial enterprise whether for-hire or not.
| 7 | | (13) Proceeds from sales to owners, lessors, or
shippers of
| 8 | | tangible personal property that is utilized by interstate | 9 | | carriers for
hire for use as rolling stock moving in interstate | 10 | | commerce
and equipment operated by a telecommunications | 11 | | provider, licensed as a
common carrier by the Federal | 12 | | Communications Commission, which is
permanently installed in | 13 | | or affixed to aircraft moving in interstate commerce.
| 14 | | (14) Machinery and equipment that will be used by the | 15 | | purchaser, or a
lessee of the purchaser, primarily in the | 16 | | process of manufacturing or
assembling tangible personal | 17 | | property for wholesale or retail sale or
lease, whether the | 18 | | sale or lease is made directly by the manufacturer or by
some | 19 | | other person, whether the materials used in the process are | 20 | | owned by
the manufacturer or some other person, or whether the | 21 | | sale or lease is made
apart from or as an incident to the | 22 | | seller's engaging in the service
occupation of producing | 23 | | machines, tools, dies, jigs, patterns, gauges, or
other similar | 24 | | items of no commercial value on special order for a particular
| 25 | | purchaser. The exemption provided by this paragraph (14) does | 26 | | not include machinery and equipment used in (i) the generation |
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| 1 | | of electricity for wholesale or retail sale; (ii) the | 2 | | generation or treatment of natural or artificial gas for | 3 | | wholesale or retail sale that is delivered to customers through | 4 | | pipes, pipelines, or mains; or (iii) the treatment of water for | 5 | | wholesale or retail sale that is delivered to customers through | 6 | | pipes, pipelines, or mains. The provisions of Public Act 98-583 | 7 | | are declaratory of existing law as to the meaning and scope of | 8 | | this exemption.
| 9 | | (15) Proceeds of mandatory service charges separately | 10 | | stated on
customers' bills for purchase and consumption of food | 11 | | and beverages, to the
extent that the proceeds of the service | 12 | | charge are in fact turned over as
tips or as a substitute for | 13 | | tips to the employees who participate directly
in preparing, | 14 | | serving, hosting or cleaning up the food or beverage function
| 15 | | with respect to which the service charge is imposed.
| 16 | | (16) Personal property Petroleum products sold to a | 17 | | purchaser if the purchaser is exempt from use tax seller
is | 18 | | prohibited by operation of federal law from charging tax to the | 19 | | purchaser . This paragraph is exempt
from the provisions of
| 20 | | Section 2-70.
| 21 | | (17) Tangible personal property sold to a common carrier by | 22 | | rail or
motor that
receives the physical possession of the | 23 | | property in Illinois and that
transports the property, or | 24 | | shares with another common carrier in the
transportation of the | 25 | | property, out of Illinois on a standard uniform bill
of lading | 26 | | showing the seller of the property as the shipper or consignor |
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| 1 | | of
the property to a destination outside Illinois, for use | 2 | | outside Illinois.
| 3 | | (18) Legal tender, currency, medallions, or gold or silver | 4 | | coinage
issued by the State of Illinois, the government of the | 5 | | United States of
America, or the government of any foreign | 6 | | country, and bullion.
| 7 | | (19) Until July 1 2003, oil field exploration, drilling, | 8 | | and production
equipment, including
(i) rigs and parts of rigs, | 9 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 10 | | tubular goods, including casing and
drill strings, (iii) pumps | 11 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 12 | | individual replacement part for oil field exploration,
| 13 | | drilling, and production equipment, and (vi) machinery and | 14 | | equipment purchased
for lease; but
excluding motor vehicles | 15 | | required to be registered under the Illinois
Vehicle Code.
| 16 | | (20) Photoprocessing machinery and equipment, including | 17 | | repair and
replacement parts, both new and used, including that | 18 | | manufactured on
special order, certified by the purchaser to be | 19 | | used primarily for
photoprocessing, and including | 20 | | photoprocessing machinery and equipment
purchased for lease.
| 21 | | (21) Coal and aggregate exploration, mining, off-highway | 22 | | hauling,
processing,
maintenance, and reclamation equipment, | 23 | | including
replacement parts and equipment, and including
| 24 | | equipment purchased for lease, but excluding motor vehicles | 25 | | required to be
registered under the Illinois Vehicle Code. The | 26 | | changes made to this Section by Public Act 97-767 apply on and |
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| 1 | | after July 1, 2003, but no claim for credit or refund is | 2 | | allowed on or after August 16, 2013 (the effective date of | 3 | | Public Act 98-456)
for such taxes paid during the period | 4 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 5 | | effective date of Public Act 98-456).
| 6 | | (22) Until June 30, 2013, fuel and petroleum products sold | 7 | | to or used by an air carrier,
certified by the carrier to be | 8 | | used for consumption, shipment, or storage
in the conduct of | 9 | | its business as an air common carrier, for a flight
destined | 10 | | for or returning from a location or locations
outside the | 11 | | United States without regard to previous or subsequent domestic
| 12 | | stopovers.
| 13 | | Beginning July 1, 2013, fuel and petroleum products sold to | 14 | | or used by an air carrier, certified by the carrier to be used | 15 | | for consumption, shipment, or storage in the conduct of its | 16 | | business as an air common carrier, for a flight that (i) is | 17 | | engaged in foreign trade or is engaged in trade between the | 18 | | United States and any of its possessions and (ii) transports at | 19 | | least one individual or package for hire from the city of | 20 | | origination to the city of final destination on the same | 21 | | aircraft, without regard to a change in the flight number of | 22 | | that aircraft. | 23 | | (23) A transaction in which the purchase order is received | 24 | | by a florist
who is located outside Illinois, but who has a | 25 | | florist located in Illinois
deliver the property to the | 26 | | purchaser or the purchaser's donee in Illinois.
|
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| 1 | | (24) Fuel consumed or used in the operation of ships, | 2 | | barges, or vessels
that are used primarily in or for the | 3 | | transportation of property or the
conveyance of persons for | 4 | | hire on rivers bordering on this State if the
fuel is delivered | 5 | | by the seller to the purchaser's barge, ship, or vessel
while | 6 | | it is afloat upon that bordering river.
| 7 | | (25) Except as provided in item (25-5) of this Section, a
| 8 | | motor vehicle sold in this State to a nonresident even though | 9 | | the
motor vehicle is delivered to the nonresident in this | 10 | | State, if the motor
vehicle is not to be titled in this State, | 11 | | and if a drive-away permit
is issued to the motor vehicle as | 12 | | provided in Section 3-603 of the Illinois
Vehicle Code or if | 13 | | the nonresident purchaser has vehicle registration
plates to | 14 | | transfer to the motor vehicle upon returning to his or her home
| 15 | | state. The issuance of the drive-away permit or having
the
| 16 | | out-of-state registration plates to be transferred is prima | 17 | | facie evidence
that the motor vehicle will not be titled in | 18 | | this State.
| 19 | | (25-5) The exemption under item (25) does not apply if the | 20 | | state in which the motor vehicle will be titled does not allow | 21 | | a reciprocal exemption for a motor vehicle sold and delivered | 22 | | in that state to an Illinois resident but titled in Illinois. | 23 | | The tax collected under this Act on the sale of a motor vehicle | 24 | | in this State to a resident of another state that does not | 25 | | allow a reciprocal exemption shall be imposed at a rate equal | 26 | | to the state's rate of tax on taxable property in the state in |
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| 1 | | which the purchaser is a resident, except that the tax shall | 2 | | not exceed the tax that would otherwise be imposed under this | 3 | | Act. At the time of the sale, the purchaser shall execute a | 4 | | statement, signed under penalty of perjury, of his or her | 5 | | intent to title the vehicle in the state in which the purchaser | 6 | | is a resident within 30 days after the sale and of the fact of | 7 | | the payment to the State of Illinois of tax in an amount | 8 | | equivalent to the state's rate of tax on taxable property in | 9 | | his or her state of residence and shall submit the statement to | 10 | | the appropriate tax collection agency in his or her state of | 11 | | residence. In addition, the retailer must retain a signed copy | 12 | | of the statement in his or her records. Nothing in this item | 13 | | shall be construed to require the removal of the vehicle from | 14 | | this state following the filing of an intent to title the | 15 | | vehicle in the purchaser's state of residence if the purchaser | 16 | | titles the vehicle in his or her state of residence within 30 | 17 | | days after the date of sale. The tax collected under this Act | 18 | | in accordance with this item (25-5) shall be proportionately | 19 | | distributed as if the tax were collected at the 6.25% general | 20 | | rate imposed under this Act.
| 21 | | (25-7) Beginning on July 1, 2007, no tax is imposed under | 22 | | this Act on the sale of an aircraft, as defined in Section 3 of | 23 | | the Illinois Aeronautics Act, if all of the following | 24 | | conditions are met: | 25 | | (1) the aircraft leaves this State within 15 days after | 26 | | the later of either the issuance of the final billing for |
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| 1 | | the sale of the aircraft, or the authorized approval for | 2 | | return to service, completion of the maintenance record | 3 | | entry, and completion of the test flight and ground test | 4 | | for inspection, as required by 14 C.F.R. 91.407; | 5 | | (2) the aircraft is not based or registered in this | 6 | | State after the sale of the aircraft; and | 7 | | (3) the seller retains in his or her books and records | 8 | | and provides to the Department a signed and dated | 9 | | certification from the purchaser, on a form prescribed by | 10 | | the Department, certifying that the requirements of this | 11 | | item (25-7) are met. The certificate must also include the | 12 | | name and address of the purchaser, the address of the | 13 | | location where the aircraft is to be titled or registered, | 14 | | the address of the primary physical location of the | 15 | | aircraft, and other information that the Department may | 16 | | reasonably require. | 17 | | For purposes of this item (25-7): | 18 | | "Based in this State" means hangared, stored, or otherwise | 19 | | used, excluding post-sale customizations as defined in this | 20 | | Section, for 10 or more days in each 12-month period | 21 | | immediately following the date of the sale of the aircraft. | 22 | | "Registered in this State" means an aircraft registered | 23 | | with the Department of Transportation, Aeronautics Division, | 24 | | or titled or registered with the Federal Aviation | 25 | | Administration to an address located in this State. | 26 | | This paragraph (25-7) is exempt from the provisions
of
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| 1 | | Section 2-70.
| 2 | | (26) Semen used for artificial insemination of livestock | 3 | | for direct
agricultural production.
| 4 | | (27) Horses, or interests in horses, registered with and | 5 | | meeting the
requirements of any of the
Arabian Horse Club | 6 | | Registry of America, Appaloosa Horse Club, American Quarter
| 7 | | Horse Association, United States
Trotting Association, or | 8 | | Jockey Club, as appropriate, used for
purposes of breeding or | 9 | | racing for prizes. This item (27) is exempt from the provisions | 10 | | of Section 2-70, and the exemption provided for under this item | 11 | | (27) applies for all periods beginning May 30, 1995, but no | 12 | | claim for credit or refund is allowed on or after January 1, | 13 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 14 | | paid during the period beginning May 30, 2000 and ending on | 15 | | January 1, 2008 (the effective date of Public Act 95-88).
| 16 | | (28) Computers and communications equipment utilized for | 17 | | any
hospital
purpose
and equipment used in the diagnosis,
| 18 | | analysis, or treatment of hospital patients sold to a lessor | 19 | | who leases the
equipment, under a lease of one year or longer | 20 | | executed or in effect at the
time of the purchase, to a
| 21 | | hospital
that has been issued an active tax exemption | 22 | | identification number by the
Department under Section 1g of | 23 | | this Act.
| 24 | | (29) Personal property sold to a lessor who leases the
| 25 | | property, under a
lease of one year or longer executed or in | 26 | | effect at the time of the purchase,
to a governmental body
that |
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| 1 | | has been issued an active tax exemption identification number | 2 | | by the
Department under Section 1g of this Act.
| 3 | | (30) Beginning with taxable years ending on or after | 4 | | December
31, 1995
and
ending with taxable years ending on or | 5 | | before December 31, 2004,
personal property that is
donated for | 6 | | disaster relief to be used in a State or federally declared
| 7 | | disaster area in Illinois or bordering Illinois by a | 8 | | manufacturer or retailer
that is registered in this State to a | 9 | | corporation, society, association,
foundation, or institution | 10 | | that has been issued a sales tax exemption
identification | 11 | | number by the Department that assists victims of the disaster
| 12 | | who reside within the declared disaster area.
| 13 | | (31) Beginning with taxable years ending on or after | 14 | | December
31, 1995 and
ending with taxable years ending on or | 15 | | before December 31, 2004, personal
property that is used in the | 16 | | performance of infrastructure repairs in this
State, including | 17 | | but not limited to municipal roads and streets, access roads,
| 18 | | bridges, sidewalks, waste disposal systems, water and sewer | 19 | | line extensions,
water distribution and purification | 20 | | facilities, storm water drainage and
retention facilities, and | 21 | | sewage treatment facilities, resulting from a State
or | 22 | | federally declared disaster in Illinois or bordering Illinois | 23 | | when such
repairs are initiated on facilities located in the | 24 | | declared disaster area
within 6 months after the disaster.
| 25 | | (32) Beginning July 1, 1999, game or game birds sold at a | 26 | | "game breeding
and
hunting preserve area" as that term is used
|
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| 1 | | in the
Wildlife Code. This paragraph is exempt from the | 2 | | provisions
of
Section 2-70.
| 3 | | (33) A motor vehicle, as that term is defined in Section | 4 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 5 | | corporation, limited liability
company, society, association, | 6 | | foundation, or institution that is determined by
the Department | 7 | | to be organized and operated exclusively for educational
| 8 | | purposes. For purposes of this exemption, "a corporation, | 9 | | limited liability
company, society, association, foundation, | 10 | | or institution organized and
operated
exclusively for | 11 | | educational purposes" means all tax-supported public schools,
| 12 | | private schools that offer systematic instruction in useful | 13 | | branches of
learning by methods common to public schools and | 14 | | that compare favorably in
their scope and intensity with the | 15 | | course of study presented in tax-supported
schools, and | 16 | | vocational or technical schools or institutes organized and
| 17 | | operated exclusively to provide a course of study of not less | 18 | | than 6 weeks
duration and designed to prepare individuals to | 19 | | follow a trade or to pursue a
manual, technical, mechanical, | 20 | | industrial, business, or commercial
occupation.
| 21 | | (34) Beginning January 1, 2000, personal property, | 22 | | including food, purchased
through fundraising events for the | 23 | | benefit of a public or private elementary or
secondary school, | 24 | | a group of those schools, or one or more school districts if
| 25 | | the events are sponsored by an entity recognized by the school | 26 | | district that
consists primarily of volunteers and includes |
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| 1 | | parents and teachers of the
school children. This paragraph | 2 | | does not apply to fundraising events (i) for
the benefit of | 3 | | private home instruction or (ii) for which the fundraising
| 4 | | entity purchases the personal property sold at the events from | 5 | | another
individual or entity that sold the property for the | 6 | | purpose of resale by the
fundraising entity and that profits | 7 | | from the sale to the fundraising entity.
This paragraph is | 8 | | exempt from the provisions of Section 2-70.
| 9 | | (35) Beginning January 1, 2000 and through December 31, | 10 | | 2001, new or used
automatic vending machines that prepare and | 11 | | serve hot food and beverages,
including coffee, soup, and other | 12 | | items, and replacement parts for these
machines. Beginning | 13 | | January 1, 2002 and through June 30, 2003, machines
and parts | 14 | | for machines used in
commercial, coin-operated amusement and | 15 | | vending business if a use or occupation
tax is paid on the | 16 | | gross receipts derived from the use of the commercial,
| 17 | | coin-operated amusement and vending machines. This paragraph | 18 | | is exempt from
the provisions of Section 2-70.
| 19 | | (35-5) Beginning August 23, 2001 and through June 30, 2016, | 20 | | food for human consumption that is to be consumed off
the | 21 | | premises where it is sold (other than alcoholic beverages, soft | 22 | | drinks,
and food that has been prepared for immediate | 23 | | consumption) and prescription
and nonprescription medicines, | 24 | | drugs, medical appliances, and insulin, urine
testing | 25 | | materials, syringes, and needles used by diabetics, for human | 26 | | use, when
purchased for use by a person receiving medical |
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| 1 | | assistance under Article V of
the Illinois Public Aid Code who | 2 | | resides in a licensed long-term care facility,
as defined in | 3 | | the Nursing Home Care Act, or a licensed facility as defined in | 4 | | the ID/DD Community Care Act, the MC/DD Act, or the Specialized | 5 | | Mental Health Rehabilitation Act of 2013.
| 6 | | (36) Beginning August 2, 2001, computers and | 7 | | communications equipment
utilized for any hospital purpose and | 8 | | equipment used in the diagnosis,
analysis, or treatment of | 9 | | hospital patients sold to a lessor who leases the
equipment, | 10 | | under a lease of one year or longer executed or in effect at | 11 | | the
time of the purchase, to a hospital that has been issued an | 12 | | active tax
exemption identification number by the Department | 13 | | under Section 1g of this Act.
This paragraph is exempt from the | 14 | | provisions of Section 2-70.
| 15 | | (37) Beginning August 2, 2001, personal property sold to a | 16 | | lessor who
leases the property, under a lease of one year or | 17 | | longer executed or in effect
at the time of the purchase, to a | 18 | | governmental body that has been issued an
active tax exemption | 19 | | identification number by the Department under Section 1g
of | 20 | | this Act. This paragraph is exempt from the provisions of | 21 | | Section 2-70.
| 22 | | (38) Beginning on January 1, 2002 and through June 30, | 23 | | 2016, tangible personal property purchased
from an Illinois | 24 | | retailer by a taxpayer engaged in centralized purchasing
| 25 | | activities in Illinois who will, upon receipt of the property | 26 | | in Illinois,
temporarily store the property in Illinois (i) for |
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| 1 | | the purpose of subsequently
transporting it outside this State | 2 | | for use or consumption thereafter solely
outside this State or | 3 | | (ii) for the purpose of being processed, fabricated, or
| 4 | | manufactured into, attached to, or incorporated into other | 5 | | tangible personal
property to be transported outside this State | 6 | | and thereafter used or consumed
solely outside this State. The | 7 | | Director of Revenue shall, pursuant to rules
adopted in | 8 | | accordance with the Illinois Administrative Procedure Act, | 9 | | issue a
permit to any taxpayer in good standing with the | 10 | | Department who is eligible for
the exemption under this | 11 | | paragraph (38). The permit issued under
this paragraph (38) | 12 | | shall authorize the holder, to the extent and
in the manner | 13 | | specified in the rules adopted under this Act, to purchase
| 14 | | tangible personal property from a retailer exempt from the | 15 | | taxes imposed by
this Act. Taxpayers shall maintain all | 16 | | necessary books and records to
substantiate the use and | 17 | | consumption of all such tangible personal property
outside of | 18 | | the State of Illinois.
| 19 | | (39) Beginning January 1, 2008, tangible personal property | 20 | | used in the construction or maintenance of a community water | 21 | | supply, as defined under Section 3.145 of the Environmental | 22 | | Protection Act, that is operated by a not-for-profit | 23 | | corporation that holds a valid water supply permit issued under | 24 | | Title IV of the Environmental Protection Act. This paragraph is | 25 | | exempt from the provisions of Section 2-70.
| 26 | | (40) Beginning January 1, 2010, materials, parts, |
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| 1 | | equipment, components, and furnishings incorporated into or | 2 | | upon an aircraft as part of the modification, refurbishment, | 3 | | completion, replacement, repair, or maintenance of the | 4 | | aircraft. This exemption includes consumable supplies used in | 5 | | the modification, refurbishment, completion, replacement, | 6 | | repair, and maintenance of aircraft, but excludes any | 7 | | materials, parts, equipment, components, and consumable | 8 | | supplies used in the modification, replacement, repair, and | 9 | | maintenance of aircraft engines or power plants, whether such | 10 | | engines or power plants are installed or uninstalled upon any | 11 | | such aircraft. "Consumable supplies" include, but are not | 12 | | limited to, adhesive, tape, sandpaper, general purpose | 13 | | lubricants, cleaning solution, latex gloves, and protective | 14 | | films. This exemption applies only to the sale of qualifying | 15 | | tangible personal property to persons who modify, refurbish, | 16 | | complete, replace, or maintain an aircraft and who (i) hold an | 17 | | Air Agency Certificate and are empowered to operate an approved | 18 | | repair station by the Federal Aviation Administration, (ii) | 19 | | have a Class IV Rating, and (iii) conduct operations in | 20 | | accordance with Part 145 of the Federal Aviation Regulations. | 21 | | The exemption does not include aircraft operated by a | 22 | | commercial air carrier providing scheduled passenger air | 23 | | service pursuant to authority issued under Part 121 or Part 129 | 24 | | of the Federal Aviation Regulations. The changes made to this | 25 | | paragraph (40) by Public Act 98-534 are declarative of existing | 26 | | law. |
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| 1 | | (41) Tangible personal property sold to a | 2 | | public-facilities corporation, as described in Section | 3 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 4 | | constructing or furnishing a municipal convention hall, but | 5 | | only if the legal title to the municipal convention hall is | 6 | | transferred to the municipality without any further | 7 | | consideration by or on behalf of the municipality at the time | 8 | | of the completion of the municipal convention hall or upon the | 9 | | retirement or redemption of any bonds or other debt instruments | 10 | | issued by the public-facilities corporation in connection with | 11 | | the development of the municipal convention hall. This | 12 | | exemption includes existing public-facilities corporations as | 13 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 14 | | This paragraph is exempt from the provisions of Section 2-70. | 15 | | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | 16 | | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | 17 | | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | 18 | | 7-29-15.)
| 19 | | Section 30. The Cigarette Tax Act is amended by changing | 20 | | Section 18c as follows:
| 21 | | (35 ILCS 130/18c)
| 22 | | Sec. 18c.
Possession of
not less than 10 and not
more than
| 23 | | 100 original packages of contraband cigarettes; penalty. With | 24 | | the exception of licensed distributors and transporters, as |
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| 1 | | defined in Section 9c of this Act, possessing unstamped | 2 | | original packages of cigarettes, and licensed distributors | 3 | | possessing original packages of cigarettes that bear a tax | 4 | | stamp of another state or taxing jurisdiction,
anyone | 5 | | possessing
not less than 10
and not more than 100 packages of
| 6 | | contraband cigarettes contained in original packages is
liable | 7 | | to pay to the Department, for deposit into the Tax Compliance | 8 | | and
Administration Fund, a penalty of $20 $10
for each such | 9 | | package of
cigarettes, unless reasonable cause can be | 10 | | established by the person upon whom
the penalty is imposed. | 11 | | Reasonable cause shall be determined in each situation
in | 12 | | accordance with rules adopted by the Department. The provisions | 13 | | of the Uniform Penalty and Interest Act do not apply to this | 14 | | Section.
| 15 | | (Source: P.A. 96-782, eff. 1-1-10.)
| 16 | | Section 35. The Counties Code is amended by changing | 17 | | Sections 5-1032 and 5-1033 as follows:
| 18 | | (55 ILCS 5/5-1032) (from Ch. 34, par. 5-1032)
| 19 | | Sec. 5-1032. County Automobile Renting Occupation Tax. The | 20 | | corporate
authorities of a county may impose a tax
upon all | 21 | | persons engaged in the business of renting automobiles in the | 22 | | county,
but outside any municipality, at the rate of not to | 23 | | exceed 1% of the gross
receipts from such business. The tax | 24 | | imposed by a county pursuant to this
Section and all civil |
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| 1 | | penalties that may be assessed as an Incident thereof
shall be | 2 | | collected and enforced by the State Department of Revenue. The
| 3 | | certificate of registration which is issued by the Department | 4 | | to a retailer
under the " Retailers' Occupation Tax Act ", | 5 | | approved June 23, 1933, as amended,
or under the " Automobile | 6 | | Renting Occupation and Use Tax Act ", enacted by
the | 7 | | Eighty-Second General Assembly, shall permit such person to | 8 | | engage in
a business which is taxable under any ordinance or | 9 | | resolution enacted pursuant
to this Section without | 10 | | registering separately with the Department under
such | 11 | | ordinance or resolution or under this Section. The Department | 12 | | shall
have full power to administer and enforce this Section; | 13 | | to collect all taxes
and penalties due hereunder; to dispose of | 14 | | taxes and penalties so collected
in the manner hereinafter | 15 | | provided, and to determine all rights to credit
memoranda, | 16 | | arising on account of the erroneous payment of tax or penalty
| 17 | | hereunder. In the administration of, and compliance with, this | 18 | | Section,
the Department and persons who are subject to this | 19 | | Section shall have the
same rights, remedies, privileges, | 20 | | immunities, powers and duties, and be
subject to the same | 21 | | conditions, restrictions, limitations, penalties and
| 22 | | definitions of terms, and employ the same modes of procedure, | 23 | | as are prescribed
in Sections 2 and 3 (in respect to all | 24 | | provisions therein other than the
State rate of tax; and with | 25 | | relation to the provisions of the " Retailers'
Occupation Tax " | 26 | | referred to therein, except as to the disposition of taxes
and |
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| 1 | | penalties collected, and except for the provision allowing | 2 | | retailers
a deduction from the tax to cover certain costs, and | 3 | | except that credit
memoranda issued hereunder may not be used | 4 | | to discharge any State tax
liability) of the " Automobile | 5 | | Renting Occupation and Use Tax Act ", as the
same are now or may | 6 | | hereafter be amended, as fully as if provisions
contained in | 7 | | those Sections of said Act were set forth herein.
| 8 | | Persons subject to any tax imposed pursuant to the | 9 | | authority granted in
this Section may reimburse themselves for | 10 | | their tax liability hereunder by
separately stating such tax as | 11 | | an additional charge, which charge may be
stated in | 12 | | combination, in a single amount, with State tax which sellers
| 13 | | are required to collect under the " Automobile Renting | 14 | | Occupation and Use
Tax Act " pursuant to such bracket schedules | 15 | | as the Department may prescribe.
| 16 | | Whenever the Department determines that a refund should be | 17 | | made under
this Section to a claimant instead of issuing a | 18 | | credit memorandum, the
Department shall notify the State | 19 | | Comptroller, who shall cause the order to
be drawn for the | 20 | | amount specified, and to the person named, in such
notification | 21 | | from the Department. Such refund shall be paid by the State
| 22 | | Treasurer out of the county automobile renting tax fund.
| 23 | | The Department shall forthwith pay over to the State | 24 | | Treasurer, ex-officio,
as trustee, all taxes and penalties | 25 | | collected hereunder. On or before the
25th day of each calendar | 26 | | month, the Department shall prepare and certify
to the |
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| 1 | | Comptroller the disbursement of stated sums of money to named | 2 | | counties
from which rentors have paid taxes or penalties | 3 | | hereunder to the Department
during the second preceding | 4 | | calendar month. The amount to be paid to each
county shall be | 5 | | the amount (not including credit memoranda) collected | 6 | | hereunder
during the second preceding calendar month by the | 7 | | Department, and not including
an amount equal to the amount of | 8 | | refunds made during the second preceding
calendar month by the | 9 | | Department on behalf of such county, less 2% of such
balance, | 10 | | which sum shall be retained by the State Treasurer to cover the
| 11 | | costs incurred by the Department in administering and enforcing | 12 | | this
Section as provided herein. The Department at the time of | 13 | | each monthly
disbursement to the counties shall prepare and | 14 | | certify to the Comptroller
the amount, so retained by the State | 15 | | Treasurer, to be paid into the General
Revenue Fund of the | 16 | | State Treasury. Within 10 days after receipt, by the
| 17 | | Comptroller, of the disbursement certification to the counties | 18 | | and the
General Revenue Fund, provided for in this Section to | 19 | | be given to the
Comptroller by the Department, the Comptroller | 20 | | shall cause the orders to be
drawn for the respective amounts | 21 | | in accordance with the directions
contained in such | 22 | | certification.
| 23 | | Nothing in this Section shall be construed to authorize a | 24 | | county to
impose a tax upon the privilege of engaging in any | 25 | | business which under the
constitution of the United States may | 26 | | not be made the subject of taxation
by this State.
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| 1 | | An ordinance or resolution imposing or discontinuing the | 2 | | tax under this Section or effecting a change in the rate | 3 | | thereof shall be adopted and a certified copy thereof filed | 4 | | with the Department either: (i) on or before the first day of | 5 | | April, in which case the Department shall proceed to administer | 6 | | and enforce this Section as of the first day of July next | 7 | | following the adoption or filing; or (ii) on or before the | 8 | | first day of October, in which case the Department shall | 9 | | proceed to administer and enforce this Section as of the first | 10 | | day of January next following the adoption and filing. | 11 | | An ordinance or resolution imposing a tax hereunder or | 12 | | effecting a change
in the rate thereof shall be effective on | 13 | | the first day of the calendar
month next following the month in | 14 | | which such ordinance or resolution is
passed. The corporate | 15 | | authorities of any county which levies a tax authorized
by this | 16 | | Section shall transmit to the Department of Revenue on or not | 17 | | later
than 5 days after passage of the ordinance or resolution | 18 | | a certified copy
of the ordinance or resolution imposing such | 19 | | tax whereupon the Department
of Revenue shall proceed to | 20 | | administer and enforce this Section on behalf
of such county as | 21 | | of the effective date of the ordinance or resolution.
Upon a | 22 | | change in rate of a tax levied hereunder, or upon the | 23 | | discontinuance
of the tax, the corporate authorities of the | 24 | | county shall on or not later
than 5 days after passage of the | 25 | | ordinance or resolution discontinuing the
tax or effecting a | 26 | | change in rate transmit to the Department of Revenue a
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| 1 | | certified copy of the ordinance or resolution effecting such | 2 | | change or discontinuance.
| 3 | | The Department of Revenue must upon the request of the | 4 | | County Clerk or County
Board submit to a county a list of those | 5 | | persons who are registered with
the Department to pay | 6 | | automobile renting occupation tax within the unincorporated
| 7 | | area of that governmental unit. This list shall contain only | 8 | | the names
of persons who have paid the tax and not the amount | 9 | | of tax paid by such person.
| 10 | | This Section shall be known and may be cited as the "County | 11 | | Automobile
Renting Occupation Tax Law".
| 12 | | (Source: P.A. 86-962.)
| 13 | | (55 ILCS 5/5-1033) (from Ch. 34, par. 5-1033)
| 14 | | Sec. 5-1033. County Automobile Renting Use Tax. The | 15 | | corporate
authorities of a county may impose a tax upon the | 16 | | privilege of using, in
such county an automobile which is | 17 | | rented from a rentor outside Illinois,
and which is titled or | 18 | | registered with an agency of this State's
government, at a rate | 19 | | not to exceed 1% of the rental price of such
automobile. Such | 20 | | tax shall be collected from persons whose Illinois
address for | 21 | | titling or registration purposes is given as being in the
| 22 | | unincorporated area of such county. Such tax shall be collected | 23 | | by the
Department of Revenue for any county imposing such tax. | 24 | | Such tax must be
paid to the State, or an exemption | 25 | | determination must be obtained from the
Department of Revenue, |
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| 1 | | before the title or certificate of registration for
the | 2 | | property may be issued. The tax or proof of exemption may be
| 3 | | transmitted to the Department by way of the State agency with | 4 | | which, or
State officer with whom, the tangible personal | 5 | | property must be titled or
registered if the Department and | 6 | | such agency or State officer determine
that this procedure will | 7 | | expedite the processing of applications for title
or | 8 | | registration.
| 9 | | The Department shall have full power to administer and | 10 | | enforce this Section;
to collect all taxes, penalties and | 11 | | interest due hereunder; to dispose of
taxes, penalties and | 12 | | interest so collected in the manner hereinafter provided,
and | 13 | | to determine all rights to credit memoranda or refunds arising | 14 | | on account
of the erroneous payment of tax, penalty or interest | 15 | | hereunder. In the
administration of, and compliance with, this | 16 | | Section, the Department and
persons who are subject to this | 17 | | Section shall have the same rights, remedies,
privileges, | 18 | | immunities, powers and duties, and be subject to the same
| 19 | | conditions, restrictions, limitations, penalties and | 20 | | definitions of terms,
and employ the same modes of procedure, | 21 | | as are prescribed in Sections 2 and
4 (except provisions | 22 | | pertaining to the State rate of tax; and with relation
to the | 23 | | provisions of the " Use Tax Act " referred to therein, except
| 24 | | provisions concerning collection or refunding of the tax by | 25 | | retailers, and
except the provisions of Section 19 pertaining | 26 | | to claims by retailers and
except the last paragraph concerning |
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| 1 | | refunds, and except that credit
memoranda issued hereunder may | 2 | | not be used to discharge any State tax
liability) of the | 3 | | " Automobile Renting Occupation and Use Tax Act ",
as the same | 4 | | are now or may hereafter be amended, which are not inconsistent
| 5 | | with this Section, as fully as if provisions contained in those | 6 | | Sections
of said Act were set forth herein.
| 7 | | Whenever the Department determines that a refund should be | 8 | | made under this
Section to a claimant instead of issuing a | 9 | | credit memorandum, the Department
shall notify the State | 10 | | Comptroller, who shall cause the order to be drawn
for the | 11 | | amount specified, and to the person named, in such notification
| 12 | | from the Department. Such refund shall be paid by the State | 13 | | Treasurer out
of the county automobile renting tax fund.
| 14 | | The Department shall forthwith pay over to the State | 15 | | Treasurer, ex-officio,
as trustee, all taxes, penalties and | 16 | | interest collected hereunder. On or
before the 25th day of each | 17 | | calendar month, the Department shall prepare
and certify to the | 18 | | State Comptroller the disbursement of stated sums of
money to | 19 | | named counties from which the Department, during the second | 20 | | preceding
calendar month, collected taxes hereunder from | 21 | | persons whose Illinois address
for titling or registration | 22 | | purposes is given as being in the unincorporated
area of such | 23 | | county. The amount to be paid to each county shall be the
| 24 | | amount (not including credit memoranda) collected hereunder | 25 | | during the second
preceding calendar month by the Department, | 26 | | and not including an amount
equal to the amount of refunds made |
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| 1 | | during the second preceding calendar
month by the Department on | 2 | | behalf of such county, less 2% of such balance,
which sum shall | 3 | | be retained by the State Treasurer to cover the costs
incurred | 4 | | by the Department in administering and enforcing this Section | 5 | | as
provided herein. The Department at the time of each monthly | 6 | | disbursement
to the counties shall prepare and certify to the | 7 | | State Comptroller the
amount, so retained by the State | 8 | | Treasurer, to be paid into the General
Revenue Fund of the | 9 | | State Treasury. Within 10 days after receipt, by the
State | 10 | | Comptroller, of the disbursement certification to the counties | 11 | | and
the General Revenue Fund, provided for in this Section to | 12 | | be given to the
State Comptroller by the Department, the State | 13 | | Comptroller shall cause the
orders to be drawn for the | 14 | | respective amounts in accordance with the
directions contained | 15 | | in such certification.
| 16 | | An ordinance or resolution imposing or discontinuing the | 17 | | tax under this Section or effecting a change in the rate | 18 | | thereof shall be adopted and a certified copy thereof filed | 19 | | with the Department either: (i) on or before the first day of | 20 | | April, in which case the Department shall proceed to administer | 21 | | and enforce this Section as of the first day of July next | 22 | | following the adoption or filing; or (ii) on or before the | 23 | | first day of October, in which case the Department shall | 24 | | proceed to administer and enforce this Section as of the first | 25 | | day of January next following the adoption and filing. | 26 | | An ordinance or resolution imposing a tax hereunder or |
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| 1 | | effecting a change
in the rate thereof shall be effective on | 2 | | the first day of the calendar
month next following the month in | 3 | | which such ordinance or resolution is
passed. The corporate | 4 | | authorities of any county which levies a tax authorized
by this | 5 | | Section shall transmit to the Department of Revenue on or not | 6 | | later
than 5 days after passage of the ordinance or resolution | 7 | | a certified copy
of the ordinance or resolution imposing such | 8 | | tax whereupon the Department
of Revenue shall proceed to | 9 | | administer and enforce this Section on behalf
of such county as | 10 | | of the effective date of the ordinance or resolution.
Upon a | 11 | | change in rate of a tax levied hereunder, or upon the | 12 | | discontinuance
of the tax, the corporate authorities of the | 13 | | county shall, on or not later
than 5 days after passage of the | 14 | | ordinance or resolution discontinuing the
tax or effecting a | 15 | | change in rate, transmit to the Department of Revenue a
| 16 | | certified copy of the ordinance or resolution effecting such | 17 | | change or
discontinuance.
| 18 | | This Section shall be known and may be cited as the "County | 19 | | Automobile
Renting Use Tax Law".
| 20 | | (Source: P.A. 86-962.)
| 21 | | Section 40. The Illinois Municipal Code is amended by | 22 | | changing Sections 8-11-7 and 8-11-8 as follows:
| 23 | | (65 ILCS 5/8-11-7) (from Ch. 24, par. 8-11-7)
| 24 | | Sec. 8-11-7. Municipal Automobile Renting Occupation Tax. |
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| 1 | | The corporate authorities of a municipality may impose
a tax | 2 | | upon all persons engaged in the business of renting automobiles | 3 | | in
the municipality at the rate of not to exceed 1% of the | 4 | | gross receipts from
such business. The tax imposed by a | 5 | | municipality pursuant to this Section
and all civil penalties | 6 | | that may be assessed as an incident thereof shall
be collected | 7 | | and enforced by the State Department of Revenue. The | 8 | | certificate
of registration which is issued by the Department | 9 | | to a retailer under the
Retailers' Occupation Tax Act or under | 10 | | the Automobile Renting Occupation and Use Tax
Act shall permit | 11 | | such
person to engage in a
business which is taxable under any | 12 | | ordinance or resolution enacted pursuant
to this Section | 13 | | without registering separately with the Department under
such | 14 | | ordinance or resolution or under this Section. The Department | 15 | | shall
have full power to administer and enforce this Section; | 16 | | to collect all taxes
and penalties due hereunder; to dispose of | 17 | | taxes and penalties so collected
in the manner hereinafter | 18 | | provided; and to determine all rights to credit
memoranda, | 19 | | arising on account of the erroneous payment of tax or penalty
| 20 | | hereunder. In the administration of, and compliance with, this | 21 | | Section,
the Department and persons who are subject to this | 22 | | Section shall have the
same rights, remedies, privileges, | 23 | | immunities, powers and duties, and be
subject to the same | 24 | | conditions, restrictions, limitations, penalties and
| 25 | | definitions of terms, and employ the same modes of procedure, | 26 | | as are prescribed
in Sections 2 and 3 (in respect to all |
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| 1 | | provisions therein other than the
State rate of tax; and with | 2 | | relation to the provisions of the " Retailers'
Occupation Tax " | 3 | | referred to therein, except as to the disposition of taxes
and | 4 | | penalties collected, and except for the provision allowing | 5 | | retailers
a deduction from the tax to cover certain costs, and | 6 | | except that credit
memoranda issued hereunder may not be used | 7 | | to discharge any State tax
liability) of the Automobile Renting | 8 | | Occupation and Use Tax Act, as fully
as if those provisions | 9 | | were set forth herein.
| 10 | | Persons subject to any tax imposed pursuant to the | 11 | | authority granted in
this Section may reimburse themselves for | 12 | | their tax liability hereunder
by separately stating such tax as | 13 | | an additional charge, which charge may
be stated in | 14 | | combination, in a single amount, with State tax which sellers
| 15 | | are required to collect under the Automobile Renting Occupation | 16 | | and
Use Tax Act pursuant to such bracket schedules as the | 17 | | Department may
prescribe.
| 18 | | Whenever the Department determines that a refund should be | 19 | | made under this
Section to a claimant instead of issuing a | 20 | | credit memorandum, the Department
shall notify the State | 21 | | Comptroller, who shall cause the order to be drawn
for the | 22 | | amount specified, and to the person named, in such notification
| 23 | | from the Department. Such refund shall be paid by the State | 24 | | Treasurer out
of the municipal automobile renting tax fund.
| 25 | | The Department shall forthwith pay over to the State | 26 | | Treasurer, ex-officio,
as trustee, all taxes and penalties |
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| 1 | | collected hereunder. On or before the
25th day of each calendar | 2 | | month, the Department shall prepare and certify
to the | 3 | | Comptroller the disbursement of stated sums of money to named
| 4 | | municipalities, the municipalities to be those from which | 5 | | rentors have paid
taxes or penalties hereunder to the | 6 | | Department during the second preceding
calendar month. The | 7 | | amount to be paid to each municipality shall be the
amount (not | 8 | | including credit memoranda) collected hereunder during the
| 9 | | second preceding calendar month by the Department, and not | 10 | | including an
amount equal to the amount of refunds made during | 11 | | the second preceding
calendar month by the Department on behalf | 12 | | of such municipality, less 1.6%
of such balance, which sum | 13 | | shall be retained by the State Treasurer to
cover the costs | 14 | | incurred by the Department in administering and enforcing
this | 15 | | Section as provided herein. The Department at the time of each
| 16 | | monthly disbursement to the municipalities shall prepare and | 17 | | certify to the
Comptroller the amount, so retained by the State | 18 | | Treasurer, to be paid into
the General Revenue Fund of the | 19 | | State Treasury. Within 10 days after
receipt, by the | 20 | | Comptroller, of the disbursement certification to the
| 21 | | municipalities and the General Revenue Fund, provided for in | 22 | | this
Section to be given to the Comptroller by the Department, | 23 | | the Comptroller
shall cause the orders to be drawn for the | 24 | | respective amounts
in accordance with the directions contained | 25 | | in such certification.
| 26 | | Nothing in this Section shall be construed to authorize a |
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| 1 | | municipality
to impose a tax upon the privilege of engaging in | 2 | | any business which under
the Constitution of the United States | 3 | | may not be made the subject of taxation
by this State.
| 4 | | An ordinance or resolution imposing or discontinuing the | 5 | | tax under this Section or effecting a change in the rate | 6 | | thereof shall be adopted and a certified copy thereof filed | 7 | | with the Department either: (i) on or before the first day of | 8 | | April, in which case the Department shall proceed to administer | 9 | | and enforce this Section as of the first day of July next | 10 | | following the adoption or filing; or (ii) on or before the | 11 | | first day of October, in which case the Department shall | 12 | | proceed to administer and enforce this Section as of the first | 13 | | day of January next following the adoption and filing. | 14 | | An ordinance or resolution imposing a tax hereunder or | 15 | | effecting a change
in the rate thereof shall be effective on | 16 | | the first day of the calendar
month next following publication | 17 | | as provided in Section 1-2-4. The corporate
authorities of any | 18 | | municipality which levies a tax authorized by this Section
| 19 | | shall transmit to the Department of Revenue on or not later | 20 | | than 5 days
after publication a certified copy of the ordinance | 21 | | or resolution imposing
such tax whereupon the Department of | 22 | | Revenue shall proceed to administer
and enforce this Section on | 23 | | behalf of such municipality as of the effective
date of the | 24 | | ordinance or resolution. Upon a change in rate of a tax levied
| 25 | | hereunder, or upon the discontinuance of the tax, the corporate | 26 | | authorities
of the municipality shall on or not later than 5 |
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| 1 | | days after publication
of the ordinance or resolution | 2 | | discontinuing the tax or effecting a change
in rate transmit to | 3 | | the Department of Revenue a certified copy of the
ordinance or | 4 | | resolution effecting such change or discontinuance.
| 5 | | The Department of Revenue must upon the request of the | 6 | | municipal clerk,
city council or village board of trustees | 7 | | submit to a city, village or
incorporated town a list of those | 8 | | persons who are registered with the
Department to pay | 9 | | automobile renting occupation tax within that
governmental | 10 | | unit. This list shall contain only the names of persons who
| 11 | | have paid the tax and not the amount of tax paid by such | 12 | | person.
| 13 | | As used in this Section, "municipal" and "municipality" | 14 | | means a city, village
or incorporated town, including an | 15 | | incorporated town which has superseded
a civil township.
| 16 | | This Section shall be known and may be cited as the | 17 | | "Municipal Automobile
Renting Occupation Tax Act".
| 18 | | (Source: P.A. 86-1475.)
| 19 | | (65 ILCS 5/8-11-8) (from Ch. 24, par. 8-11-8)
| 20 | | Sec. 8-11-8. Municipal Automobile Renting Use Tax. The | 21 | | corporate authorities of a municipality may impose a
tax upon | 22 | | the privilege of using, in such municipality, an automobile | 23 | | which
is rented from a rentor outside Illinois, and which is | 24 | | titled or registered
with an agency of this State's government, | 25 | | at a rate not to exceed 1% of
the rental price of such |
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| 1 | | automobile. Such tax shall be collected from persons
whose | 2 | | Illinois address for titling or registration purposes is given | 3 | | as
being in such municipality. Such tax shall be collected by | 4 | | the Department
of Revenue for any municipality imposing such | 5 | | tax. Such tax must be paid
to the State, or an exemption | 6 | | determination must be obtained from the Department
of Revenue, | 7 | | before the title or certificate of registration for the | 8 | | property
may be issued. The tax or proof of exemption may be | 9 | | transmitted to the
Department by way of the State agency with | 10 | | which, or State officer with
whom, the tangible personal | 11 | | property must be titled or registered if the
Department and | 12 | | such agency or State officer determine that this procedure
will | 13 | | expedite the processing of applications for title or | 14 | | registration.
| 15 | | The Department shall have full power to administer and | 16 | | enforce this Section;
to collect all taxes, penalties and | 17 | | interest due hereunder; to dispose of
taxes, penalties and | 18 | | interest so collected in the manner hereinafter provided,
and | 19 | | to determine all rights to credit memoranda or refunds arising | 20 | | on account
of the erroneous payment of tax, penalty or interest | 21 | | hereunder. In the
administration of, and compliance with, this | 22 | | Section, the Department and
persons who are subject to this | 23 | | Section shall have the same rights, remedies,
privileges, | 24 | | immunities, powers and duties, and be subject to the same | 25 | | conditions,
restrictions, limitations, penalties and | 26 | | definitions of terms, and employ
the same modes of procedure as |
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| 1 | | are prescribed in Sections 2 and 4 (except
provisions | 2 | | pertaining to the State rate of tax; and with relation to the
| 3 | | provisions of the " Use Tax Act " referred to therein, except | 4 | | provisions concerning
collection or refunding of the tax by | 5 | | retailers, and except the provisions
of Section 19 pertaining | 6 | | to claims by retailers and except the last paragraph
concerning | 7 | | refunds, and except that credit memoranda issued hereunder may
| 8 | | not be used to discharge any State tax liability) of the | 9 | | " Automobile Renting
Occupation and Use Tax Act ", enacted by the | 10 | | Eighty-second General Assembly,
as the same are now or may | 11 | | hereafter be amended, which are not inconsistent
with this | 12 | | Section, as fully as if provisions contained in those Sections
| 13 | | of said Act were set forth herein.
| 14 | | Whenever the Department determines that a refund should be | 15 | | made under this
Section to a claimant instead of issuing a | 16 | | credit memorandum, the Department
shall notify the State | 17 | | Comptroller, who shall cause the order to be drawn
for the | 18 | | amount specified, and to the person named, in such notification
| 19 | | from the Department. Such refund shall be paid by the State | 20 | | Treasurer out
of the municipal automobile renting tax fund.
| 21 | | The Department shall forthwith pay over to the State | 22 | | Treasurer, ex-officio,
as trustee, all taxes, penalties and | 23 | | interest collected hereunder. On or
before the 25th day of each | 24 | | calendar month, the Department shall prepare
and certify to the | 25 | | State Comptroller the disbursement of stated sums of
money to | 26 | | named municipalities, the municipality in each instance to be |
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| 1 | | that
municipality from which the Department, during the second | 2 | | preceding calendar
month, collected taxes hereunder from | 3 | | persons whose Illinois address for
titling or registration | 4 | | purposes is given as being in such municipality.
The amount to | 5 | | be paid to each municipality shall be the amount (not including
| 6 | | credit memoranda) collected hereunder during the second | 7 | | preceding calendar
month by the Department, and not including | 8 | | an amount equal to the amount
of refunds made during the second | 9 | | preceding calendar month by the Department
on behalf of such | 10 | | municipality, less 1.6% of such balance, which sum shall
be | 11 | | retained by the State Treasurer to cover the costs incurred by | 12 | | the Department
in administering and enforcing this Section as | 13 | | provided herein. The Department
at the time of each monthly | 14 | | disbursement to the municipalities shall prepare
and certify to | 15 | | the State Comptroller the amount, so retained by the State
| 16 | | Treasurer, to be paid into the General Revenue Fund of the | 17 | | State Treasury.
Within 10 days after receipt, by the State | 18 | | Comptroller, of the disbursement
certification to the | 19 | | municipalities and the General Revenue Fund, provided
or in | 20 | | this Section to be given to the State Comptroller by the | 21 | | Department,
the State Comptroller shall cause the orders to be | 22 | | drawn for the respective
amounts in accordance with the | 23 | | directions contained in such certification.
| 24 | | An ordinance or resolution imposing or discontinuing the | 25 | | tax under this Section or effecting a change in the rate | 26 | | thereof shall be adopted and a certified copy thereof filed |
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| 1 | | with the Department either: (i) on or before the first day of | 2 | | April, in which case the Department shall proceed to administer | 3 | | and enforce this Section as of the first day of July next | 4 | | following the adoption or filing; or (ii) on or before the | 5 | | first day of October, in which case the Department shall | 6 | | proceed to administer and enforce this Section as of the first | 7 | | day of January next following the adoption and filing. | 8 | | An ordinance or resolution imposing a tax hereunder or | 9 | | effecting a change
in the rate thereof shall be effective on | 10 | | the first day of the second calendar
month next following | 11 | | publication as provided in Section 1-2-4. The corporate
| 12 | | authorities of any municipality which levies a tax authorized | 13 | | by this Section
shall transmit to the Department of Revenue not | 14 | | later than 5 days after
publication a certified copy of the | 15 | | ordinance or resolution imposing such
tax whereupon the | 16 | | Department of Revenue shall proceed to administer and
enforce | 17 | | this Section on behalf of such municipality as of the effective
| 18 | | date of the ordinance or resolution. Upon a change in rate of a | 19 | | tax levied
hereunder, or upon the discontinuance of the tax, | 20 | | the corporate authorities
of the municipality shall, on or not | 21 | | later than 5 days after publication
of the ordinance or | 22 | | resolution discontinuing the tax or effecting a change
in rate, | 23 | | transmit to the Department of Revenue a certified copy of the | 24 | | ordinance
or resolution effecting such change or | 25 | | discontinuance.
| 26 | | As used in this Section, "Municipal" and "Municipality" |
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| 1 | | means a city, village
or incorporated town, including an | 2 | | incorporated town which has superseded
a civil township.
| 3 | | This Section shall be known and may be cited as the | 4 | | "Municipal Automobile
Renting Use Tax Act".
| 5 | | (Source: P.A. 84-149.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.".
|
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