Full Text of SB0514 100th General Assembly
SB0514ham001 100TH GENERAL ASSEMBLY | Rep. David A. Welter Filed: 11/26/2018
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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 1. Short title. This Act may be cited as the | 5 | | Peer-to-Peer Car Sharing Program Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Car sharing delivery period" means the period during which | 8 | | a shared vehicle is being delivered to the location of the car | 9 | | sharing start time, if applicable, as documented by the | 10 | | governing car sharing program agreement. | 11 | | "Car sharing period" means the period that commences with | 12 | | the car sharing delivery period or, if there is no car sharing | 13 | | delivery period, that commences with the car sharing start time | 14 | | and in either case ends at the car sharing termination time. | 15 | | "Car sharing program agreement" means the terms and | 16 | | conditions applicable to a shared vehicle owner and a shared |
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| 1 | | vehicle driver that govern the use of a shared vehicle through | 2 | | a peer-to-peer car sharing program. | 3 | | "Car sharing start time" means the time when the shared | 4 | | vehicle becomes subject to the control of the shared vehicle | 5 | | driver at or after the time the reservation of a shared vehicle | 6 | | is scheduled to begin as documented in the records of a | 7 | | peer–to–peer car sharing program. | 8 | | "Car sharing termination time" means the earliest | 9 | | occurring event of the following: | 10 | | (i) the expiration of the agreed period established for | 11 | | the use of a shared vehicle in the governing car sharing | 12 | | program agreement; | 13 | | (ii) the intent to terminate the use of the shared | 14 | | vehicle is verifiably communicated by the shared vehicle | 15 | | driver to the shared vehicle owner using the peer-to-peer | 16 | | car sharing program; or | 17 | | (iii) the shared vehicle owner or the shared vehicle | 18 | | owner's authorized designee takes possession and control | 19 | | of the shared vehicle. | 20 | | "Motor vehicle" means a passenger car as defined in Section | 21 | | 1-157 of the Illinois Vehicle Code. | 22 | | "Peer-to-peer car sharing" means the authorized use of a | 23 | | motor vehicle by an individual other than the vehicle's owner | 24 | | through a peer-to-peer car sharing program. | 25 | | "Peer-to-peer car sharing program" means a business | 26 | | platform that connects vehicle owners with drivers to enable |
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| 1 | | the sharing of motor vehicles for financial consideration. | 2 | | "Shared vehicle" means a motor vehicle that is available | 3 | | for sharing through a peer-to-peer car sharing program. | 4 | | "Shared vehicle driver" means an individual who has been | 5 | | authorized to drive the shared vehicle by the shared vehicle | 6 | | owner under a car sharing program agreement. | 7 | | "Shared vehicle owner" means the registered owner of a | 8 | | vehicle made available for sharing to shared vehicle drivers | 9 | | through a peer-to-peer car sharing program. | 10 | | Section 10. Insurance. | 11 | | (a) Except as provided in this subsection, a peer-to-peer | 12 | | car sharing program shall assume the liability of a shared | 13 | | vehicle owner for any bodily injury or property damage to third | 14 | | parties or uninsured and underinsured motorist or personal | 15 | | injury protection losses during the car sharing period in an | 16 | | amount stated in the car sharing program agreement which amount | 17 | | may not be less than those set forth in Section 7-203 of the | 18 | | Illinois Insurance Code. | 19 | | The assumption of liability under this subsection does not | 20 | | apply if the shared vehicle owner made an intentional or | 21 | | fraudulent material misrepresentation to the peer-to-peer car | 22 | | sharing program before the car sharing period in which the loss | 23 | | occurred. | 24 | | (b) Nothing in subsection (a) limits: | 25 | | (1) the liability of the peer-to-peer car sharing |
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| 1 | | program for any act or omission of the peer-to-peer car | 2 | | sharing program itself that results in injury to any person | 3 | | as a result of the use of a shared vehicle through a | 4 | | peer-to-peer car sharing program; or | 5 | | (2) the ability of the peer-to-peer car sharing program | 6 | | to, by contract, seek indemnification from the shared | 7 | | vehicle owner or the shared vehicle driver for economic | 8 | | loss sustained by the peer-to-peer car sharing program | 9 | | resulting from a breach of the terms and conditions of the | 10 | | car sharing program agreement.
| 11 | | (c) At the time a vehicle owner registers as a shared | 12 | | vehicle owner on a peer-to-peer car sharing program and before | 13 | | the shared vehicle owner makes a shared vehicle available for | 14 | | car sharing on the peer-to-peer car sharing program, the | 15 | | peer-to-peer car sharing program shall notify the shared | 16 | | vehicle owner that, if the shared vehicle has a lien against | 17 | | it, the use of the shared vehicle through a peer-to-peer car | 18 | | sharing program, including use without physical damage | 19 | | coverage, may violate the terms of the contract with the | 20 | | lienholder. | 21 | | (d) A peer-to-peer car sharing program shall ensure that, | 22 | | during each car sharing period, the shared vehicle owner and | 23 | | the shared vehicle driver are insured under a motor vehicle | 24 | | liability insurance policy that: | 25 | | (1) recognizes that the vehicle insured under the | 26 | | policy is made available and used through a peer-to-peer |
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| 1 | | car sharing program; and | 2 | | (2) provides insurance coverage in amounts no less than | 3 | | the minimum amounts set forth in Section 7-203 of the | 4 | | Illinois Insurance Code. | 5 | | (e) The insurance described under subsection (d) of this | 6 | | Section may be satisfied by motor vehicle liability insurance | 7 | | maintained by: | 8 | | (1) a shared vehicle owner; | 9 | | (2) a shared vehicle driver; | 10 | | (3) a peer-to-peer car sharing program; or | 11 | | (4) both a shared vehicle owner, a shared vehicle | 12 | | driver, and a peer-to-peer car sharing program. | 13 | | The insurance described in this subsection that is | 14 | | satisfying the insurance requirement of subsection (d) shall be | 15 | | primary during each car sharing period. | 16 | | (f) An authorized insurer that writes motor vehicle | 17 | | liability insurance in this State may exclude any and all | 18 | | coverage and the duty to defend or indemnify for any claim | 19 | | afforded under a shared vehicle owner's personal motor vehicle | 20 | | liability insurance policy. Nothing in this Act invalidates or | 21 | | limits an exclusion contained in a motor vehicle liability | 22 | | insurance policy, including any insurance policy in use or | 23 | | approved for use that excludes coverage for motor vehicles made | 24 | | available for rent, sharing, or hire or for any business use. | 25 | | (g) No policy of personal private passenger automobile | 26 | | liability insurance shall be canceled, voided, terminated, |
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| 1 | | rescinded, or nonrenewed solely on the basis that the vehicle | 2 | | has been made available for car sharing pursuant to a | 3 | | peer-to-peer car sharing program that is in compliance with the | 4 | | provisions of this Section. | 5 | | (h) A peer-to-peer car sharing program shall collect and | 6 | | verify records pertaining to the use of a vehicle, including, | 7 | | but not limited to, times used, fees paid by the shared vehicle | 8 | | driver, and revenues received by the shared vehicle owner and | 9 | | provide that information upon request to the shared vehicle | 10 | | owner, the shared vehicle owner's insurer, or the shared | 11 | | vehicle driver's insurer to facilitate a claim coverage | 12 | | investigation. The peer-to-peer car sharing program shall | 13 | | retain the records for a period not less than the applicable | 14 | | personal injury statute of limitations. | 15 | | (i) A peer-to-peer car sharing program and a shared vehicle | 16 | | owner is exempt from vicarious liability in accordance with 49 | 17 | | U.S.C. 30106 and under any State or local law that imposes | 18 | | liability solely based on vehicle ownership. | 19 | | (j) A motor vehicle insurer that defends or indemnifies a | 20 | | claim against a shared vehicle that is excluded under the terms | 21 | | of its policy shall have the right to seek contribution against | 22 | | the motor vehicle insurer of the peer-to-peer car sharing | 23 | | program if the claim is: | 24 | | (1) made against the shared vehicle owner or the shared | 25 | | vehicle driver for loss or injury that occurs during the | 26 | | car sharing period; and |
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| 1 | | (2) excluded under the terms of its policy.
| 2 | | (k) Notwithstanding any other law, statute, rule, or | 3 | | regulation to the contrary, a peer-to-peer car sharing program | 4 | | shall have an insurable interest in a shared vehicle during the | 5 | | car sharing period. | 6 | | Section 15. Disclosure. Each car sharing program agreement | 7 | | made in this State shall disclose to the shared vehicle owner | 8 | | and the shared vehicle driver: | 9 | | (1) any right of the peer-to-peer car sharing program to | 10 | | seek indemnification from the shared vehicle owner or the | 11 | | shared vehicle driver for economic loss sustained by the | 12 | | peer-to-peer car sharing program resulting from a breach of the | 13 | | terms and conditions of the car sharing program agreement; | 14 | | (2) that a motor vehicle liability insurance policy issued | 15 | | to the shared vehicle owner for the shared vehicle or to the | 16 | | shared vehicle driver does not provide a defense or | 17 | | indemnification for any claim asserted by the peer-to-peer car | 18 | | sharing program; | 19 | | (3) that the peer-to-peer car sharing program's insurance | 20 | | coverage on the shared vehicle owner and the shared vehicle | 21 | | driver is in effect only during each car sharing period and | 22 | | that, for any use of the shared vehicle by the shared vehicle | 23 | | driver after the car sharing termination time, the shared | 24 | | vehicle driver and the shared vehicle owner should contact the | 25 | | shared vehicle driver's or the shared vehicle owner's insurer |
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| 1 | | regarding insurance coverage; | 2 | | (4) the daily rate, fees, and if applicable, any insurance | 3 | | or protection package costs that are charged to the shared | 4 | | vehicle owner or the shared vehicle driver. | 5 | | (5) that the shared vehicle owner's motor vehicle liability | 6 | | insurance may not provide coverage for a shared vehicle. | 7 | | (6) an emergency telephone number to personnel capable of | 8 | | fielding roadside assistance and other customer service | 9 | | inquiries. | 10 | | Section 20. Responsibilities. | 11 | | (a) A peer-to-peer car sharing program may not enter into a | 12 | | car sharing program agreement authorizing an individual to be a | 13 | | shared vehicle driver unless the individual is duly licensed | 14 | | under Chapter 6 of the Illinois Vehicle Code or, in the case of | 15 | | a nonresident, then duly licensed under the laws of the State | 16 | | or country of the individual's residence unless the State or | 17 | | country of his residence does not require that a driver be | 18 | | licensed. | 19 | | (b) A peer-to-peer car sharing program shall keep a record | 20 | | of the registration number of the shared vehicle, the name and | 21 | | address of the shared vehicle driver, the number of the | 22 | | driver's license, if any, of the shared vehicle driver, and the | 23 | | date and place when and where the license, if any, was issued. | 24 | | Such record shall be open to inspection by any officer or | 25 | | designated agent of the Secretary of State. |
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| 1 | | (c) A peer-to-peer car sharing program shall have sole | 2 | | responsibility for any equipment, such as a GPS system or other | 3 | | special equipment that is put in or on the vehicle to monitor | 4 | | or facilitate the car sharing transaction, and shall agree to | 5 | | indemnify and hold harmless the vehicle owner for any damage to | 6 | | or theft of such equipment during the sharing period not caused | 7 | | by the vehicle owner. The peer-to-peer car sharing program has | 8 | | the right to seek indemnity from the shared vehicle driver for | 9 | | any loss or damage to such equipment that occurs during the | 10 | | sharing period. | 11 | | Section 25. Safety recalls. | 12 | | (a) At the time when a vehicle owner registers as a shared | 13 | | vehicle owner on a peer-to-peer car sharing program and prior | 14 | | to the time when the shared vehicle owner makes a shared | 15 | | vehicle available for car sharing on the peer-to-peer car | 16 | | sharing program, the peer-to-peer car sharing program shall: | 17 | | (1) verify that the shared vehicle does not have any | 18 | | safety recalls on the vehicle for which the repairs have | 19 | | not been made; and | 20 | | (2) notify the shared vehicle owner of the requirements | 21 | | under subsection (b) of this Section. | 22 | | (b) If the shared vehicle owner has received an actual | 23 | | notice of a safety recall on the vehicle, a shared vehicle | 24 | | owner may not make a vehicle available as a shared vehicle on a | 25 | | peer-to-peer car sharing program until the safety recall repair |
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| 1 | | has been made. | 2 | | (c) If a shared vehicle owner receives an actual notice of | 3 | | a safety recall on a shared vehicle while the shared vehicle is | 4 | | made available on the peer-to-peer car sharing program, the | 5 | | shared vehicle owner shall remove the shared vehicle as | 6 | | available on the peer-to-peer car sharing program, as soon as | 7 | | practicably possible but no later than 72 hours after receiving | 8 | | the notice of the safety recall and until the safety recall | 9 | | repair has been made. | 10 | | (d) If a shared vehicle owner receives an actual notice of | 11 | | a safety recall while the shared vehicle is being used in the | 12 | | possession of a shared vehicle driver, as soon as practicably | 13 | | possible but no later than 72 hours after receiving the notice | 14 | | of the safety recall, the shared vehicle owner shall notify the | 15 | | peer-to-peer car sharing program about the safety recall so | 16 | | that the shared vehicle owner may address the safety recall | 17 | | repair. | 18 | | Section 30. Uniform Traffic Citations. | 19 | | (a) A Uniform Traffic Citation issued under the Automated | 20 | | Traffic Control Systems in Highway Construction or Maintenance | 21 | | Zones Act to a peer-to-peer car sharing program, or, shared | 22 | | vehicle owner, shall be dismissed with respect to the | 23 | | peer-to-peer car sharing program, or, shared vehicle owner, if: | 24 | | (1) the peer-to-peer car sharing program, or, shared | 25 | | vehicle owner responds to the Uniform Traffic Citation by |
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| 1 | | submitting, within 30 days of the mailing of the citation, | 2 | | an affidavit of non-liability stating that, at the time of | 3 | | the alleged speeding or other traffic violation, the | 4 | | vehicle was in the custody and control of a shared vehicle | 5 | | driver under the terms of a car sharing program agreement; | 6 | | and | 7 | | (2) the driver's license number, name, and last known | 8 | | address of the shared driver is provided.
| 9 | | (b) A Uniform Traffic Citation dismissed with respect to a | 10 | | peer-to-peer car sharing program, or, shared vehicle owner in | 11 | | accordance with subsection (a) may then be issued and delivered | 12 | | by mail or other means to the shared vehicle driver identified | 13 | | in the affidavit of non-liability. | 14 | | Section 35. 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 July 1, 2001 (the | 16 | | effective date of Public Act 92-35), however, an entity | 17 | | otherwise eligible for this exemption shall not
make tax-free | 18 | | purchases unless it has an active identification number issued | 19 | | 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. Beginning on July 1, 2017, graphic arts | 21 | | machinery and equipment is included in the manufacturing and | 22 | | assembling machinery and equipment exemption under paragraph | 23 | | (18).
| 24 | | (7) Farm chemicals.
| 25 | | (8) Legal tender, currency, medallions, or gold or silver | 26 | | coinage issued by
the State of Illinois, the government of the |
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| 1 | | United States of America, or the
government of any foreign | 2 | | country, and bullion.
| 3 | | (9) Personal property purchased from a teacher-sponsored | 4 | | student
organization affiliated with an elementary or | 5 | | secondary school located in
Illinois.
| 6 | | (10) A motor vehicle that is : | 7 | | (a) used for automobile renting, as defined in the
| 8 | | Automobile Renting Occupation and Use Tax Act ; or .
| 9 | | (b) used exclusively for peer-to-peer car sharing, as | 10 | | defined in Peer-to-Peer Car Sharing Program Act, if at the | 11 | | time of purchase, the purchaser makes a formal election to | 12 | | obtain the tax exemption set forth in this paragraph. | 13 | | Notwithstanding any law, rule, or regulation to the | 14 | | contrary, any person who elects to accept the tax exemption set | 15 | | forth in this paragraph thereby irrevocably elects that all | 16 | | proceeds from the use of the vehicle in automobile renting, as | 17 | | defined in the Automobile Renting Occupation and Use Tax Act, | 18 | | or peer-to-peer car sharing, as defined in the Peer-to-Peer Car | 19 | | Sharing Program Act, are subject to taxation pursuant to: | 20 | | (i) the Retailers' Occupation Tax Act; | 21 | | (ii) the Home Rule County Use Tax Law; | 22 | | (iii) the County Automobile Renting Occupation Tax | 23 | | Law; | 24 | | (iv) the County Automobile Renting Use Tax Law; | 25 | | (v) the Municipal Automobile Renting Occupation | 26 | | Tax Act; |
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| 1 | | (vi) the Municipal Automobile Renting Use Tax Act; | 2 | | (vii) Section 13 of the Metropolitan Pier and | 3 | | Exposition Authority Act; | 4 | | (viii) Section 5.02 of the Local Mass Transit | 5 | | District Act; and | 6 | | (ix) Section 4.03.1 of the Regional Transportation | 7 | | Authority Act. | 8 | | A person electing to obtain the exemption set forth in this | 9 | | paragraph (10) shall annually confirm in writing to the | 10 | | Department of Revenue that the vehicle is used in automobile | 11 | | renting, as defined in the Automobile Renting Occupation and | 12 | | Use Tax Act, or used exclusively for peer-to-peer car sharing, | 13 | | as defined in the Peer-to-Peer Car Sharing Program Act. | 14 | | The Department of Revenue is authorized to engage in audit, | 15 | | assessment, and other enforcement activities to ensure | 16 | | compliance with this paragraph (10). | 17 | | The Department of Revenue is authorized to adopt any other | 18 | | rules, policies, and procedures to enforce this paragraph (10). | 19 | | (11) Farm machinery and equipment, both new and used,
| 20 | | including that manufactured on special order, certified by the | 21 | | purchaser
to be used primarily for production agriculture or | 22 | | State or federal
agricultural programs, including individual | 23 | | replacement parts for
the machinery and equipment, including | 24 | | machinery and equipment
purchased
for lease,
and including | 25 | | implements of husbandry defined in Section 1-130 of
the | 26 | | Illinois Vehicle Code, farm machinery and agricultural |
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| 1 | | chemical and
fertilizer spreaders, and nurse wagons required to | 2 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 3 | | but excluding other motor
vehicles required to be
registered | 4 | | under the Illinois Vehicle Code.
Horticultural polyhouses or | 5 | | hoop houses used for propagating, growing, or
overwintering | 6 | | plants shall be considered farm machinery and equipment under
| 7 | | this item (11).
Agricultural chemical tender tanks and dry | 8 | | boxes shall include units sold
separately from a motor vehicle | 9 | | required to be licensed and units sold mounted
on a motor | 10 | | vehicle required to be licensed if the selling price of the | 11 | | tender
is separately stated.
| 12 | | Farm machinery and equipment shall include precision | 13 | | farming equipment
that is
installed or purchased to be | 14 | | installed on farm machinery and equipment
including, but not | 15 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 16 | | or spreaders.
Precision farming equipment includes, but is not | 17 | | limited to, soil testing
sensors, computers, monitors, | 18 | | software, global positioning
and mapping systems, and other | 19 | | such equipment.
| 20 | | Farm machinery and equipment also includes computers, | 21 | | sensors, software, and
related equipment used primarily in the
| 22 | | computer-assisted operation of production agriculture | 23 | | facilities, equipment,
and
activities such as, but not limited | 24 | | to,
the collection, monitoring, and correlation of
animal and | 25 | | crop data for the purpose of
formulating animal diets and | 26 | | agricultural chemicals. This item (11) is exempt
from the |
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| 1 | | provisions of
Section 3-90.
| 2 | | (12) Until June 30, 2013, fuel and petroleum products sold | 3 | | to or used by an air common
carrier, certified by the carrier | 4 | | to be used for consumption, shipment, or
storage in the conduct | 5 | | of its business as an air common carrier, for a
flight destined | 6 | | for or returning from a location or locations
outside the | 7 | | United States without regard to previous or subsequent domestic
| 8 | | stopovers.
| 9 | | Beginning July 1, 2013, fuel and petroleum products sold to | 10 | | or used by an air carrier, certified by the carrier to be used | 11 | | for consumption, shipment, or storage in the conduct of its | 12 | | business as an air common carrier, for a flight that (i) is | 13 | | engaged in foreign trade or is engaged in trade between the | 14 | | United States and any of its possessions and (ii) transports at | 15 | | least one individual or package for hire from the city of | 16 | | origination to the city of final destination on the same | 17 | | aircraft, without regard to a change in the flight number of | 18 | | that aircraft. | 19 | | (13) Proceeds of mandatory service charges separately
| 20 | | stated on customers' bills for the purchase and consumption of | 21 | | food and
beverages purchased at retail from a retailer, to the | 22 | | extent that the proceeds
of the service charge are in fact | 23 | | turned over as tips or as a substitute
for tips to the | 24 | | employees who participate directly in preparing, serving,
| 25 | | hosting or cleaning up the food or beverage function with | 26 | | respect to which
the service charge is imposed.
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| 1 | | (14) Until July 1, 2003, oil field exploration, drilling, | 2 | | and production
equipment,
including (i) rigs and parts of rigs, | 3 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 4 | | tubular goods,
including casing and drill strings, (iii) pumps | 5 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 6 | | individual replacement part for oil
field exploration, | 7 | | drilling, and production equipment, and (vi) machinery and
| 8 | | equipment purchased
for lease; but excluding motor vehicles | 9 | | required to be registered under the
Illinois Vehicle Code.
| 10 | | (15) Photoprocessing machinery and equipment, including | 11 | | repair and
replacement parts, both new and used, including that
| 12 | | manufactured on special order, certified by the purchaser to be | 13 | | used
primarily for photoprocessing, and including
| 14 | | photoprocessing machinery and equipment purchased for lease.
| 15 | | (16) Until July 1, 2023, coal and aggregate exploration, | 16 | | mining, off-highway hauling,
processing, maintenance, and | 17 | | reclamation equipment,
including replacement parts and | 18 | | equipment, and
including equipment purchased for lease, but | 19 | | excluding motor
vehicles required to be registered under the | 20 | | Illinois Vehicle Code. The changes made to this Section by | 21 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 22 | | for credit or refund is allowed on or after August 16, 2013 | 23 | | (the effective date of Public Act 98-456)
for such taxes paid | 24 | | during the period beginning July 1, 2003 and ending on August | 25 | | 16, 2013 (the effective date of Public Act 98-456).
| 26 | | (17) Until July 1, 2003, distillation machinery and |
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| 1 | | equipment, sold as a
unit or kit,
assembled or installed by the | 2 | | retailer, certified by the user to be used
only for the | 3 | | production of ethyl alcohol that will be used for consumption
| 4 | | as motor fuel or as a component of motor fuel for the personal | 5 | | use of the
user, and not subject to sale or resale.
| 6 | | (18) Manufacturing and assembling machinery and equipment | 7 | | used
primarily in the process of manufacturing or assembling | 8 | | tangible
personal property for wholesale or retail sale or | 9 | | lease, whether that sale
or lease is made directly by the | 10 | | manufacturer or by some other person,
whether the materials | 11 | | used in the process are
owned by the manufacturer or some other | 12 | | person, or whether that sale or
lease is made apart from or as | 13 | | an incident to the seller's engaging in
the service occupation | 14 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 15 | | other similar items of no commercial value on
special order for | 16 | | a particular purchaser. The exemption provided by this | 17 | | paragraph (18) does not include machinery and equipment used in | 18 | | (i) the generation of electricity for wholesale or retail sale; | 19 | | (ii) the generation or treatment of natural or artificial gas | 20 | | for wholesale or retail sale that is delivered to customers | 21 | | through pipes, pipelines, or mains; or (iii) the treatment of | 22 | | water for wholesale or retail sale that is delivered to | 23 | | customers through pipes, pipelines, or mains. The provisions of | 24 | | Public Act 98-583 are declaratory of existing law as to the | 25 | | meaning and scope of this exemption. Beginning on July 1, 2017, | 26 | | the exemption provided by this paragraph (18) includes, but is |
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| 1 | | not limited to, graphic arts machinery and equipment, as | 2 | | defined in paragraph (6) of this Section.
| 3 | | (19) Personal property delivered to a purchaser or | 4 | | purchaser's donee
inside Illinois when the purchase order for | 5 | | that personal property was
received by a florist located | 6 | | outside Illinois who has a florist located
inside Illinois | 7 | | deliver the personal property.
| 8 | | (20) Semen used for artificial insemination of livestock | 9 | | for direct
agricultural production.
| 10 | | (21) Horses, or interests in horses, registered with and | 11 | | meeting the
requirements of any of the
Arabian Horse Club | 12 | | Registry of America, Appaloosa Horse Club, American Quarter
| 13 | | Horse Association, United States
Trotting Association, or | 14 | | Jockey Club, as appropriate, used for
purposes of breeding or | 15 | | racing for prizes. This item (21) is exempt from the provisions | 16 | | of Section 3-90, and the exemption provided for under this item | 17 | | (21) applies for all periods beginning May 30, 1995, but no | 18 | | claim for credit or refund is allowed on or after January 1, | 19 | | 2008
for such taxes paid during the period beginning May 30, | 20 | | 2000 and ending on January 1, 2008.
| 21 | | (22) Computers and communications equipment utilized for | 22 | | any
hospital
purpose
and equipment used in the diagnosis,
| 23 | | analysis, or treatment of hospital patients purchased by a | 24 | | lessor who leases
the
equipment, under a lease of one year or | 25 | | longer executed or in effect at the
time the lessor would | 26 | | otherwise be subject to the tax imposed by this Act, to a
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| 1 | | hospital
that has been issued an active tax exemption | 2 | | identification number by
the
Department under Section 1g of the | 3 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 4 | | manner that does not qualify for
this exemption or is used in | 5 | | any other non-exempt manner, the lessor
shall be liable for the
| 6 | | tax imposed under this Act or the Service Use Tax Act, as the | 7 | | case may
be, based on the fair market value of the property at | 8 | | the time the
non-qualifying use occurs. No lessor shall collect | 9 | | or attempt to collect an
amount (however
designated) that | 10 | | purports to reimburse that lessor for the tax imposed by this
| 11 | | Act or the Service Use Tax Act, as the case may be, if the tax | 12 | | has not been
paid by the lessor. If a lessor improperly | 13 | | collects any such amount from the
lessee, the lessee shall have | 14 | | a legal right to claim a refund of that amount
from the lessor. | 15 | | If, however, that amount is not refunded to the lessee for
any | 16 | | reason, the lessor is liable to pay that amount to the | 17 | | Department.
| 18 | | (23) Personal property purchased by a lessor who leases the
| 19 | | property, under
a
lease of
one year or longer executed or in | 20 | | effect at the time
the lessor would otherwise be subject to the | 21 | | tax imposed by this Act,
to a governmental body
that has been | 22 | | issued an active sales tax exemption identification number by | 23 | | the
Department under Section 1g of the Retailers' Occupation | 24 | | Tax Act.
If the
property is leased in a manner that does not | 25 | | qualify for
this exemption
or used in any other non-exempt | 26 | | manner, the lessor shall be liable for the
tax imposed under |
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| 1 | | this Act or the Service Use Tax Act, as the case may
be, based | 2 | | on the fair market value of the property at the time the
| 3 | | non-qualifying use occurs. No lessor shall collect or attempt | 4 | | to collect an
amount (however
designated) that purports to | 5 | | reimburse that lessor for the tax imposed by this
Act or the | 6 | | Service Use Tax Act, as the case may be, if the tax has not been
| 7 | | paid by the lessor. If a lessor improperly collects any such | 8 | | amount from the
lessee, the lessee shall have a legal right to | 9 | | claim a refund of that amount
from the lessor. If, however, | 10 | | that amount is not refunded to the lessee for
any reason, the | 11 | | lessor is liable to pay that amount to the Department.
| 12 | | (24) 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
donated for | 15 | | disaster relief to be used in a State or federally declared
| 16 | | disaster area in Illinois or bordering Illinois by a | 17 | | manufacturer or retailer
that is registered in this State to a | 18 | | corporation, society, association,
foundation, or institution | 19 | | that has been issued a sales tax exemption
identification | 20 | | number by the Department that assists victims of the disaster
| 21 | | who reside within the declared disaster area.
| 22 | | (25) 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 used in the | 25 | | performance of infrastructure repairs in this
State, including | 26 | | but not limited to municipal roads and streets, access roads,
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| 1 | | bridges, sidewalks, waste disposal systems, water and sewer | 2 | | line extensions,
water distribution and purification | 3 | | facilities, storm water drainage and
retention facilities, and | 4 | | sewage treatment facilities, resulting from a State
or | 5 | | federally declared disaster in Illinois or bordering Illinois | 6 | | when such
repairs are initiated on facilities located in the | 7 | | declared disaster area
within 6 months after the disaster.
| 8 | | (26) Beginning July 1, 1999, game or game birds purchased | 9 | | at a "game
breeding
and hunting preserve area" as that term is
| 10 | | used in
the Wildlife Code. This paragraph is exempt from the | 11 | | provisions
of
Section 3-90.
| 12 | | (27) A motor vehicle, as that term is defined in Section | 13 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a | 14 | | corporation, limited liability company,
society, association, | 15 | | foundation, or institution that is determined by the
Department | 16 | | to be organized and operated exclusively for educational | 17 | | purposes.
For purposes of this exemption, "a corporation, | 18 | | limited liability company,
society, association, foundation, | 19 | | or institution organized and operated
exclusively for | 20 | | educational purposes" means all tax-supported public schools,
| 21 | | private schools that offer systematic instruction in useful | 22 | | branches of
learning by methods common to public schools and | 23 | | that compare favorably in
their scope and intensity with the | 24 | | course of study presented in tax-supported
schools, and | 25 | | vocational or technical schools or institutes organized and
| 26 | | operated exclusively to provide a course of study of not less |
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| 1 | | than 6 weeks
duration and designed to prepare individuals to | 2 | | follow a trade or to pursue a
manual, technical, mechanical, | 3 | | industrial, business, or commercial
occupation.
| 4 | | (28) Beginning January 1, 2000, personal property, | 5 | | including
food,
purchased through fundraising
events for the | 6 | | benefit of
a public or private elementary or
secondary school, | 7 | | a group of those schools, or one or more school
districts if | 8 | | the events are
sponsored by an entity recognized by the school | 9 | | district that consists
primarily of volunteers and includes
| 10 | | parents and teachers of the school children. This paragraph | 11 | | does not apply
to fundraising
events (i) for the benefit of | 12 | | private home instruction or (ii)
for which the fundraising | 13 | | entity purchases the personal property sold at
the events from | 14 | | another individual or entity that sold the property for the
| 15 | | purpose of resale by the fundraising entity and that
profits | 16 | | from the sale to the
fundraising entity. This paragraph is | 17 | | exempt
from the provisions
of Section 3-90.
| 18 | | (29) Beginning January 1, 2000 and through December 31, | 19 | | 2001, new or
used automatic vending
machines that prepare and | 20 | | serve hot food and beverages, including coffee, soup,
and
other | 21 | | items, and replacement parts for these machines.
Beginning | 22 | | January 1,
2002 and through June 30, 2003, machines and parts | 23 | | for machines used in
commercial, coin-operated amusement and | 24 | | vending business if a use or occupation
tax is paid on the | 25 | | gross receipts derived from the use of the commercial,
| 26 | | coin-operated amusement and vending machines.
This
paragraph
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| 1 | | is exempt from the provisions of Section 3-90.
| 2 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 3 | | food for human consumption that is to be consumed off the | 4 | | premises
where it is sold (other than alcoholic beverages, soft | 5 | | drinks, and food that
has been prepared for immediate | 6 | | consumption) and prescription and
nonprescription medicines, | 7 | | drugs, medical appliances, and insulin, urine
testing | 8 | | materials, syringes, and needles used by diabetics, for human | 9 | | use, when
purchased for use by a person receiving medical | 10 | | assistance under Article V of
the Illinois Public Aid Code who | 11 | | resides in a licensed long-term care facility,
as defined in | 12 | | the Nursing Home Care Act, or in a licensed facility as defined | 13 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 14 | | Specialized Mental Health Rehabilitation Act of 2013.
| 15 | | (31) Beginning on August 2, 2001 (the effective date of | 16 | | Public Act 92-227),
computers and communications equipment
| 17 | | utilized for any hospital purpose and equipment used in the | 18 | | diagnosis,
analysis, or treatment of hospital patients | 19 | | purchased by a lessor who leases
the equipment, under a lease | 20 | | of one year or longer executed or in effect at the
time the | 21 | | lessor would otherwise be subject to the tax imposed by this | 22 | | Act, to a
hospital that has been issued an active tax exemption | 23 | | identification number by
the Department under Section 1g of the | 24 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 25 | | manner that does not qualify for this exemption or is
used in | 26 | | any other nonexempt manner, the lessor shall be liable for the |
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| 1 | | tax
imposed under this Act or the Service Use Tax Act, as the | 2 | | case may be, based on
the fair market value of the property at | 3 | | the time the nonqualifying use
occurs. No lessor shall collect | 4 | | or attempt to collect an amount (however
designated) that | 5 | | purports to reimburse that lessor for the tax imposed by this
| 6 | | Act or the Service Use Tax Act, as the case may be, if the tax | 7 | | has not been
paid by the lessor. If a lessor improperly | 8 | | collects any such amount from the
lessee, the lessee shall have | 9 | | a legal right to claim a refund of that amount
from the lessor. | 10 | | If, however, that amount is not refunded to the lessee for
any | 11 | | reason, the lessor is liable to pay that amount to the | 12 | | Department.
This paragraph is exempt from the provisions of | 13 | | Section 3-90.
| 14 | | (32) Beginning on August 2, 2001 (the effective date of | 15 | | Public Act 92-227),
personal property purchased by a lessor who | 16 | | leases the property,
under a lease of one year or longer | 17 | | executed or in effect at the time the
lessor would otherwise be | 18 | | subject to the tax imposed by this Act, to a
governmental body | 19 | | that has been issued an active sales tax exemption
| 20 | | identification number by the Department under Section 1g of the | 21 | | Retailers'
Occupation Tax Act. If the property is leased in a | 22 | | manner that does not
qualify for this exemption or used in any | 23 | | other nonexempt manner, the lessor
shall be liable for the tax | 24 | | imposed under this Act or the Service Use Tax Act,
as the case | 25 | | may be, based on the fair market value of the property at the | 26 | | time
the nonqualifying use occurs. No lessor shall collect or |
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| 1 | | attempt to collect
an amount (however designated) that purports | 2 | | to reimburse that lessor for the
tax imposed by this Act or the | 3 | | Service Use Tax Act, as the case may be, if the
tax has not been | 4 | | paid by the lessor. If a lessor improperly collects any such
| 5 | | amount from the lessee, the lessee shall have a legal right to | 6 | | claim a refund
of that amount from the lessor. If, however, | 7 | | that amount is not refunded to
the lessee for any reason, the | 8 | | lessor is liable to pay that amount to the
Department. This | 9 | | paragraph is exempt from the provisions of Section 3-90.
| 10 | | (33) On and after July 1, 2003 and through June 30, 2004, | 11 | | the use in this State of motor vehicles of
the second division | 12 | | with a gross vehicle weight in excess of 8,000 pounds and
that | 13 | | are subject to the commercial distribution fee imposed under | 14 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 15 | | 1, 2004 and through June 30, 2005, the use in this State of | 16 | | motor vehicles of the second division: (i) with a gross vehicle | 17 | | weight rating in excess of 8,000 pounds; (ii) that are subject | 18 | | to the commercial distribution fee imposed under Section | 19 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 20 | | primarily used for commercial purposes. Through June 30, 2005, | 21 | | this exemption applies to repair and
replacement parts added | 22 | | after the initial purchase of such a motor vehicle if
that | 23 | | motor
vehicle is used in a manner that would qualify for the | 24 | | rolling stock exemption
otherwise provided for in this Act. For | 25 | | purposes of this paragraph, the term "used for commercial | 26 | | purposes" means the transportation of persons or property in |
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| 1 | | furtherance of any commercial or industrial enterprise, | 2 | | whether for-hire or not.
| 3 | | (34) Beginning January 1, 2008, tangible personal property | 4 | | used in the construction or maintenance of a community water | 5 | | supply, as defined under Section 3.145 of the Environmental | 6 | | Protection Act, that is operated by a not-for-profit | 7 | | corporation that holds a valid water supply permit issued under | 8 | | Title IV of the Environmental Protection Act. This paragraph is | 9 | | exempt from the provisions of Section 3-90. | 10 | | (35) Beginning January 1, 2010, materials, parts, | 11 | | equipment, components, and furnishings incorporated into or | 12 | | upon an aircraft as part of the modification, refurbishment, | 13 | | completion, replacement, repair, or maintenance of the | 14 | | aircraft. This exemption includes consumable supplies used in | 15 | | the modification, refurbishment, completion, replacement, | 16 | | repair, and maintenance of aircraft, but excludes any | 17 | | materials, parts, equipment, components, and consumable | 18 | | supplies used in the modification, replacement, repair, and | 19 | | maintenance of aircraft engines or power plants, whether such | 20 | | engines or power plants are installed or uninstalled upon any | 21 | | such aircraft. "Consumable supplies" include, but are not | 22 | | limited to, adhesive, tape, sandpaper, general purpose | 23 | | lubricants, cleaning solution, latex gloves, and protective | 24 | | films. This exemption applies only to the use of qualifying | 25 | | tangible personal property by persons who modify, refurbish, | 26 | | complete, repair, replace, or maintain aircraft and who (i) |
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| 1 | | hold an Air Agency Certificate and are empowered to operate an | 2 | | approved repair station by the Federal Aviation | 3 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 4 | | operations in accordance with Part 145 of the Federal Aviation | 5 | | Regulations. The exemption does not include aircraft operated | 6 | | by a commercial air carrier providing scheduled passenger air | 7 | | service pursuant to authority issued under Part 121 or Part 129 | 8 | | of the Federal Aviation Regulations. The changes made to this | 9 | | paragraph (35) by Public Act 98-534 are declarative of existing | 10 | | law. | 11 | | (36) Tangible personal property purchased by a | 12 | | public-facilities corporation, as described in Section | 13 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 14 | | constructing or furnishing a municipal convention hall, but | 15 | | only if the legal title to the municipal convention hall is | 16 | | transferred to the municipality without any further | 17 | | consideration by or on behalf of the municipality at the time | 18 | | of the completion of the municipal convention hall or upon the | 19 | | retirement or redemption of any bonds or other debt instruments | 20 | | issued by the public-facilities corporation in connection with | 21 | | the development of the municipal convention hall. This | 22 | | exemption includes existing public-facilities corporations as | 23 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 24 | | This paragraph is exempt from the provisions of Section 3-90. | 25 | | (37) Beginning January 1, 2017, menstrual pads, tampons, | 26 | | and menstrual cups. |
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| 1 | | (38) Merchandise that is subject to the Rental Purchase | 2 | | Agreement Occupation and Use Tax. The purchaser must certify | 3 | | that the item is purchased to be rented subject to a rental | 4 | | purchase agreement, as defined in the Rental Purchase Agreement | 5 | | Act, and provide proof of registration under the Rental | 6 | | Purchase Agreement Occupation and Use Tax Act. This paragraph | 7 | | is exempt from the provisions of Section 3-90. | 8 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 9 | | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff. | 10 | | 6-29-18; 100-863, eff. 8-14-18.)
| 11 | | Section 40. The Retailers' Occupation Tax Act is amended by | 12 | | changing Section 2-5 as follows:
| 13 | | (35 ILCS 120/2-5)
| 14 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 15 | | sale of
the following tangible personal property are exempt | 16 | | from the tax imposed
by this Act:
| 17 | | (1) Farm chemicals.
| 18 | | (2) Farm machinery and equipment, both new and used, | 19 | | including that
manufactured on special order, certified by | 20 | | the purchaser to be used
primarily for production | 21 | | agriculture or State or federal agricultural
programs, | 22 | | including individual replacement parts for the machinery | 23 | | and
equipment, including machinery and equipment purchased | 24 | | for lease,
and including implements of husbandry defined in |
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| 1 | | Section 1-130 of
the Illinois Vehicle Code, farm machinery | 2 | | and agricultural chemical and
fertilizer spreaders, and | 3 | | nurse wagons required to be registered
under Section 3-809 | 4 | | of the Illinois Vehicle Code,
but
excluding other motor | 5 | | vehicles required to be registered under the Illinois
| 6 | | Vehicle Code.
Horticultural polyhouses or hoop houses used | 7 | | for propagating, growing, or
overwintering plants shall be | 8 | | considered farm machinery and equipment under
this item | 9 | | (2).
Agricultural chemical tender tanks and dry boxes shall | 10 | | include units sold
separately from a motor vehicle required | 11 | | to be licensed and units sold mounted
on a motor vehicle | 12 | | required to be licensed, if the selling price of the tender
| 13 | | is separately stated.
| 14 | | Farm machinery and equipment shall include precision | 15 | | farming equipment
that is
installed or purchased to be | 16 | | installed on farm machinery and equipment
including, but | 17 | | not limited to, tractors, harvesters, sprayers, planters,
| 18 | | seeders, or spreaders.
Precision farming equipment | 19 | | includes, but is not limited to,
soil testing sensors, | 20 | | computers, monitors, software, global positioning
and | 21 | | mapping systems, and other such equipment.
| 22 | | Farm machinery and equipment also includes computers, | 23 | | sensors, software, and
related equipment used primarily in | 24 | | the
computer-assisted operation of production agriculture | 25 | | facilities, equipment,
and activities such as, but
not | 26 | | limited to,
the collection, monitoring, and correlation of
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| 1 | | animal and crop data for the purpose of
formulating animal | 2 | | diets and agricultural chemicals. This item (2) is exempt
| 3 | | from the provisions of
Section 2-70.
| 4 | | (3) Until July 1, 2003, distillation machinery and | 5 | | equipment, sold as a
unit or kit,
assembled or installed by | 6 | | the retailer, certified by the user to be used
only for the | 7 | | production of ethyl alcohol that will be used for | 8 | | consumption
as motor fuel or as a component of motor fuel | 9 | | for the personal use of the
user, and not subject to sale | 10 | | or resale.
| 11 | | (4) Until July 1, 2003 and beginning again September 1, | 12 | | 2004 through August 30, 2014, graphic arts machinery and | 13 | | equipment, including
repair and
replacement parts, both | 14 | | new and used, and including that manufactured on
special | 15 | | order or purchased for lease, certified by the purchaser to | 16 | | be used
primarily for graphic arts production.
Equipment | 17 | | includes chemicals or
chemicals acting as catalysts but | 18 | | only if
the chemicals or chemicals acting as catalysts | 19 | | effect a direct and immediate
change upon a
graphic arts | 20 | | product. Beginning on July 1, 2017, graphic arts machinery | 21 | | and equipment is included in the manufacturing and | 22 | | assembling machinery and equipment exemption under | 23 | | paragraph (14).
| 24 | | (5) A motor vehicle that is used : | 25 | | (i) for automobile renting, as defined in the | 26 | | Automobile Renting Occupation and Use Tax Act ; or |
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| 1 | | (ii) exclusively for peer-to-peer car sharing as | 2 | | defined in the Peer-to-Peer Car Sharing Program Act, if | 3 | | at the time of purchase, the purchaser makes a formal | 4 | | election to obtain the tax exemption set forth in this | 5 | | paragraph (5) . | 6 | | Notwithstanding any law, rule, or regulation to the | 7 | | contrary, any person who elects to accept the tax exemption set | 8 | | forth in this Section thereby irrevocably elects that all | 9 | | proceeds from the use of the vehicle in automobile renting, as | 10 | | defined in the Automobile Renting Occupation and Use Tax Act, | 11 | | or peer-to-peer car sharing, as defined in the Peer-to-Peer Car | 12 | | Sharing Program Act, are subject to taxation pursuant to: | 13 | | (i) the Retailers' Occupation Tax Act; | 14 | | (ii) the Home Rule County Use Tax Law; | 15 | | (iii) the County Automobile Renting Occupation Tax | 16 | | Law; | 17 | | (iv) the County Automobile Renting Use Tax Law; | 18 | | (v) the Municipal Automobile Renting Occupation | 19 | | Tax Act; | 20 | | (vi) the Municipal Automobile Renting Use Tax Act; | 21 | | (vii) Section 13 of the Metropolitan Pier and | 22 | | Exposition Authority Act; | 23 | | (viii) Section 5.02 of the Local Mass Transit | 24 | | District Act; and | 25 | | (ix) Section 4.03.1 of the Regional Transportation | 26 | | Authority Act. |
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| 1 | | This paragraph is exempt from
the provisions of Section | 2 | | 2-70.
| 3 | | A person electing to obtain the exemption set forth in this | 4 | | paragraph (5) shall annually confirm in writing to the | 5 | | Department of Revenue that the vehicle is used in automobile | 6 | | renting, as defined in the Automobile Renting Occupation and | 7 | | Use Tax Act, or exclusively used for peer-to-peer car sharing, | 8 | | as defined in the Peer-to-Peer Car Sharing Program Act. | 9 | | The Department of Revenue is authorized to engage in audit, | 10 | | assessment, and other enforcement activities to ensure | 11 | | compliance with this paragraph (5). | 12 | | The Department of Revenue is authorized to adopt any other | 13 | | rules, policies, and procedures to enforce this paragraph (5). | 14 | | (6) Personal property sold by a teacher-sponsored | 15 | | student organization
affiliated with an elementary or | 16 | | secondary school located in Illinois.
| 17 | | (7) Until July 1, 2003, proceeds of that portion of the | 18 | | selling price of
a passenger car the
sale of which is | 19 | | subject to the Replacement Vehicle Tax.
| 20 | | (8) Personal property sold to an Illinois county fair | 21 | | association for
use in conducting, operating, or promoting | 22 | | the county fair.
| 23 | | (9) Personal property sold to a not-for-profit arts
or | 24 | | cultural organization that establishes, by proof required | 25 | | by the Department
by
rule, that it has received an | 26 | | exemption under Section 501(c)(3) of the
Internal Revenue |
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| 1 | | Code and that is organized and operated primarily for the
| 2 | | presentation
or support of arts or cultural programming, | 3 | | activities, or services. These
organizations include, but | 4 | | are not limited to, music and dramatic arts
organizations | 5 | | such as symphony orchestras and theatrical groups, arts and
| 6 | | cultural service organizations, local arts councils, | 7 | | visual arts organizations,
and media arts organizations.
| 8 | | On and after July 1, 2001 (the effective date of Public Act | 9 | | 92-35), however, an entity otherwise eligible for this | 10 | | exemption shall not
make tax-free purchases unless it has | 11 | | an active identification number issued by
the Department.
| 12 | | (10) Personal property sold by a corporation, society, | 13 | | association,
foundation, institution, or organization, | 14 | | other than a limited liability
company, that is organized | 15 | | and operated as a not-for-profit service enterprise
for the | 16 | | benefit of persons 65 years of age or older if the personal | 17 | | property
was not purchased by the enterprise for the | 18 | | purpose of resale by the
enterprise.
| 19 | | (11) Personal property sold to a governmental body, to | 20 | | a corporation,
society, association, foundation, or | 21 | | institution organized and operated
exclusively for | 22 | | charitable, religious, or educational purposes, or to a
| 23 | | not-for-profit corporation, society, association, | 24 | | foundation, institution,
or organization that has no | 25 | | compensated officers or employees and that is
organized and | 26 | | operated primarily for the recreation of persons 55 years |
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| 1 | | of
age or older. A limited liability company may qualify | 2 | | for the exemption under
this paragraph only if the limited | 3 | | liability company is organized and operated
exclusively | 4 | | for educational purposes. On and after July 1, 1987, | 5 | | however, no
entity otherwise eligible for this exemption | 6 | | shall make tax-free purchases
unless it has an active | 7 | | identification number issued by the Department.
| 8 | | (12) (Blank).
| 9 | | (12-5) On and after July 1, 2003 and through June 30, | 10 | | 2004, motor vehicles of the second division
with a gross | 11 | | vehicle weight in excess of 8,000 pounds
that
are
subject | 12 | | to the commercial distribution fee imposed under Section | 13 | | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | 14 | | 2004 and through June 30, 2005, the use in this State of | 15 | | motor vehicles of the second division: (i) with a gross | 16 | | vehicle weight rating in excess of 8,000 pounds; (ii) that | 17 | | are subject to the commercial distribution fee imposed | 18 | | under Section 3-815.1 of the Illinois Vehicle Code; and | 19 | | (iii) that are primarily used for commercial purposes. | 20 | | Through June 30, 2005, this
exemption applies to repair and | 21 | | replacement parts added
after the
initial purchase of such | 22 | | a motor vehicle if that motor vehicle is used in a
manner | 23 | | that
would qualify for the rolling stock exemption | 24 | | otherwise provided for in this
Act. For purposes of this | 25 | | paragraph, "used for commercial purposes" means the | 26 | | transportation of persons or property in furtherance of any |
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| 1 | | commercial or industrial enterprise whether for-hire or | 2 | | not.
| 3 | | (13) Proceeds from sales to owners, lessors, or
| 4 | | shippers of
tangible personal property that is utilized by | 5 | | interstate carriers for
hire for use as rolling stock | 6 | | moving in interstate commerce
and equipment operated by a | 7 | | telecommunications provider, licensed as a
common carrier | 8 | | by the Federal Communications Commission, which is
| 9 | | permanently installed in or affixed to aircraft moving in | 10 | | interstate commerce.
| 11 | | (14) Machinery and equipment that will be used by the | 12 | | purchaser, or a
lessee of the purchaser, primarily in the | 13 | | process of manufacturing or
assembling tangible personal | 14 | | property for wholesale or retail sale or
lease, whether the | 15 | | sale or lease is made directly by the manufacturer or by
| 16 | | some other person, whether the materials used in the | 17 | | process are owned by
the manufacturer or some other person, | 18 | | or whether the sale or lease is made
apart from or as an | 19 | | incident to the seller's engaging in the service
occupation | 20 | | of producing machines, tools, dies, jigs, patterns, | 21 | | gauges, or
other similar items of no commercial value on | 22 | | special order for a particular
purchaser. The exemption | 23 | | provided by this paragraph (14) does not include machinery | 24 | | and equipment used in (i) the generation of electricity for | 25 | | wholesale or retail sale; (ii) the generation or treatment | 26 | | of natural or artificial gas for wholesale or retail sale |
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| 1 | | that is delivered to customers through pipes, pipelines, or | 2 | | mains; or (iii) the treatment of water for wholesale or | 3 | | retail sale that is delivered to customers through pipes, | 4 | | pipelines, or mains. The provisions of Public Act 98-583 | 5 | | are declaratory of existing law as to the meaning and scope | 6 | | of this exemption. Beginning on July 1, 2017, the exemption | 7 | | provided by this paragraph (14) includes, but is not | 8 | | limited to, graphic arts machinery and equipment, as | 9 | | defined in paragraph (4) of this Section.
| 10 | | (15) Proceeds of mandatory service charges separately | 11 | | stated on
customers' bills for purchase and consumption of | 12 | | food and beverages, to the
extent that the proceeds of the | 13 | | service charge are in fact turned over as
tips or as a | 14 | | substitute for tips to the employees who participate | 15 | | directly
in preparing, serving, hosting or cleaning up the | 16 | | food or beverage function
with respect to which the service | 17 | | charge is imposed.
| 18 | | (16) Petroleum products sold to a purchaser if the | 19 | | seller
is prohibited by federal law from charging tax to | 20 | | the purchaser.
| 21 | | (17) Tangible personal property sold to a common | 22 | | carrier by rail or
motor that
receives the physical | 23 | | possession of the property in Illinois and that
transports | 24 | | the property, or shares with another common carrier in the
| 25 | | transportation of the property, out of Illinois on a | 26 | | standard uniform bill
of lading showing the seller of the |
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| 1 | | property as the shipper or consignor of
the property to a | 2 | | destination outside Illinois, for use outside Illinois.
| 3 | | (18) Legal tender, currency, medallions, or gold or | 4 | | silver coinage
issued by the State of Illinois, the | 5 | | government of the United States of
America, or the | 6 | | government of any foreign country, and bullion.
| 7 | | (19) Until July 1, 2003, oil field exploration, | 8 | | drilling, and production
equipment, including
(i) rigs and | 9 | | parts of rigs, rotary rigs, cable tool
rigs, and workover | 10 | | rigs, (ii) pipe and tubular goods, including casing and
| 11 | | drill strings, (iii) pumps and pump-jack units, (iv) | 12 | | storage tanks and flow
lines, (v) any individual | 13 | | replacement part for oil field exploration,
drilling, and | 14 | | production equipment, and (vi) machinery and equipment | 15 | | purchased
for lease; but
excluding motor vehicles required | 16 | | to be registered under the Illinois
Vehicle Code.
| 17 | | (20) Photoprocessing machinery and equipment, | 18 | | including repair and
replacement parts, both new and used, | 19 | | including that manufactured on
special order, certified by | 20 | | the purchaser to be used primarily for
photoprocessing, and | 21 | | including photoprocessing machinery and equipment
| 22 | | purchased for lease.
| 23 | | (21) Until July 1, 2023, coal and aggregate | 24 | | exploration, mining, off-highway hauling,
processing,
| 25 | | maintenance, and reclamation equipment, including
| 26 | | replacement parts and equipment, and including
equipment |
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| 1 | | purchased for lease, but excluding motor vehicles required | 2 | | to be
registered under the Illinois Vehicle Code. The | 3 | | changes made to this Section by Public Act 97-767 apply on | 4 | | and after July 1, 2003, but no claim for credit or refund | 5 | | is allowed on or after August 16, 2013 (the effective date | 6 | | of Public Act 98-456)
for such taxes paid during the period | 7 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 8 | | effective date of Public Act 98-456).
| 9 | | (22) Until June 30, 2013, fuel and petroleum products | 10 | | sold to or used by an air carrier,
certified by the carrier | 11 | | to be used for consumption, shipment, or storage
in the | 12 | | conduct of its business as an air common carrier, for a | 13 | | flight
destined for or returning from a location or | 14 | | locations
outside the United States without regard to | 15 | | previous or subsequent domestic
stopovers.
| 16 | | Beginning July 1, 2013, fuel and petroleum products | 17 | | sold to or used by an air carrier, certified by the carrier | 18 | | to be used for consumption, shipment, or storage in the | 19 | | conduct of its business as an air common carrier, for a | 20 | | flight that (i) is engaged in foreign trade or is engaged | 21 | | in trade between the United States and any of its | 22 | | possessions and (ii) transports at least one individual or | 23 | | package for hire from the city of origination to the city | 24 | | of final destination on the same aircraft, without regard | 25 | | to a change in the flight number of that aircraft. | 26 | | (23) A transaction in which the purchase order is |
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| 1 | | received by a florist
who is located outside Illinois, but | 2 | | who has a florist located in Illinois
deliver the property | 3 | | to the purchaser or the purchaser's donee in Illinois.
| 4 | | (24) Fuel consumed or used in the operation of ships, | 5 | | barges, or vessels
that are used primarily in or for the | 6 | | transportation of property or the
conveyance of persons for | 7 | | hire on rivers bordering on this State if the
fuel is | 8 | | delivered by the seller to the purchaser's barge, ship, or | 9 | | vessel
while it is afloat upon that bordering river.
| 10 | | (25) Except as provided in item (25-5) of this Section, | 11 | | a
motor vehicle sold in this State to a nonresident even | 12 | | though the
motor vehicle is delivered to the nonresident in | 13 | | this State, if the motor
vehicle is not to be titled in | 14 | | this State, and if a drive-away permit
is issued to the | 15 | | motor vehicle as provided in Section 3-603 of the Illinois
| 16 | | Vehicle Code or if the nonresident purchaser has vehicle | 17 | | registration
plates to transfer to the motor vehicle upon | 18 | | returning to his or her home
state. The issuance of the | 19 | | drive-away permit or having
the
out-of-state registration | 20 | | plates to be transferred is prima facie evidence
that the | 21 | | motor vehicle will not be titled in this State.
| 22 | | (25-5) The exemption under item (25) does not apply if | 23 | | the state in which the motor vehicle will be titled does | 24 | | not allow a reciprocal exemption for a motor vehicle sold | 25 | | and delivered in that state to an Illinois resident but | 26 | | titled in Illinois. The tax collected under this Act on the |
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| 1 | | sale of a motor vehicle in this State to a resident of | 2 | | another state that does not allow a reciprocal exemption | 3 | | shall be imposed at a rate equal to the state's rate of tax | 4 | | on taxable property in the state in which the purchaser is | 5 | | a resident, except that the tax shall not exceed the tax | 6 | | that would otherwise be imposed under this Act. At the time | 7 | | of the sale, the purchaser shall execute a statement, | 8 | | signed under penalty of perjury, of his or her intent to | 9 | | title the vehicle in the state in which the purchaser is a | 10 | | resident within 30 days after the sale and of the fact of | 11 | | the payment to the State of Illinois of tax in an amount | 12 | | equivalent to the state's rate of tax on taxable property | 13 | | in his or her state of residence and shall submit the | 14 | | statement to the appropriate tax collection agency in his | 15 | | or her state of residence. In addition, the retailer must | 16 | | retain a signed copy of the statement in his or her | 17 | | records. Nothing in this item shall be construed to require | 18 | | the removal of the vehicle from this state following the | 19 | | filing of an intent to title the vehicle in the purchaser's | 20 | | state of residence if the purchaser titles the vehicle in | 21 | | his or her state of residence within 30 days after the date | 22 | | of sale. The tax collected under this Act in accordance | 23 | | with this item (25-5) shall be proportionately distributed | 24 | | as if the tax were collected at the 6.25% general rate | 25 | | imposed under this Act.
| 26 | | (25-7) Beginning on July 1, 2007, no tax is imposed |
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| 1 | | under this Act on the sale of an aircraft, as defined in | 2 | | Section 3 of the Illinois Aeronautics Act, if all of the | 3 | | following conditions are met: | 4 | | (1) the aircraft leaves this State within 15 days | 5 | | after the later of either the issuance of the final | 6 | | billing for the sale of the aircraft, or the authorized | 7 | | approval for return to service, completion of the | 8 | | maintenance record entry, and completion of the test | 9 | | flight and ground test for inspection, as required by | 10 | | 14 C.F.R. 91.407; | 11 | | (2) the aircraft is not based or registered in this | 12 | | State after the sale of the aircraft; and | 13 | | (3) the seller retains in his or her books and | 14 | | records and provides to the Department a signed and | 15 | | dated certification from the purchaser, on a form | 16 | | prescribed by the Department, certifying that the | 17 | | requirements of this item (25-7) are met. The | 18 | | certificate must also include the name and address of | 19 | | the purchaser, the address of the location where the | 20 | | aircraft is to be titled or registered, the address of | 21 | | the primary physical location of the aircraft, and | 22 | | other information that the Department may reasonably | 23 | | require. | 24 | | For purposes of this item (25-7): | 25 | | "Based in this State" means hangared, stored, or | 26 | | otherwise used, excluding post-sale customizations as |
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| 1 | | defined in this Section, for 10 or more days in each | 2 | | 12-month period immediately following the date of the sale | 3 | | of the aircraft. | 4 | | "Registered in this State" means an aircraft | 5 | | registered with the Department of Transportation, | 6 | | Aeronautics Division, or titled or registered with the | 7 | | Federal Aviation Administration to an address located in | 8 | | this State. | 9 | | This paragraph (25-7) is exempt from the provisions
of
| 10 | | Section 2-70.
| 11 | | (26) Semen used for artificial insemination of | 12 | | livestock for direct
agricultural production.
| 13 | | (27) Horses, or interests in horses, registered with | 14 | | and meeting the
requirements of any of the
Arabian Horse | 15 | | Club Registry of America, Appaloosa Horse Club, American | 16 | | Quarter
Horse Association, United States
Trotting | 17 | | Association, or Jockey Club, as appropriate, used for
| 18 | | purposes of breeding or racing for prizes. This item (27) | 19 | | is exempt from the provisions of Section 2-70, and the | 20 | | exemption provided for under this item (27) applies for all | 21 | | periods beginning May 30, 1995, but no claim for credit or | 22 | | refund is allowed on or after January 1, 2008 (the | 23 | | effective date of Public Act 95-88)
for such taxes paid | 24 | | during the period beginning May 30, 2000 and ending on | 25 | | January 1, 2008 (the effective date of Public Act 95-88).
| 26 | | (28) Computers and communications equipment utilized |
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| 1 | | for any
hospital
purpose
and equipment used in the | 2 | | diagnosis,
analysis, or treatment of hospital patients | 3 | | sold to a lessor who leases the
equipment, under a lease of | 4 | | one year or longer executed or in effect at the
time of the | 5 | | purchase, to a
hospital
that has been issued an active tax | 6 | | exemption identification number by the
Department under | 7 | | Section 1g of this Act.
| 8 | | (29) Personal property sold to a lessor who leases the
| 9 | | property, under a
lease of one year or longer executed or | 10 | | in effect at the time of the purchase,
to a governmental | 11 | | body
that has been issued an active tax exemption | 12 | | identification number by the
Department under Section 1g of | 13 | | this Act.
| 14 | | (30) Beginning with taxable years ending on or after | 15 | | December
31, 1995
and
ending with taxable years ending on | 16 | | or before December 31, 2004,
personal property that is
| 17 | | donated for disaster relief to be used in a State or | 18 | | federally declared
disaster area in Illinois or bordering | 19 | | Illinois by a manufacturer or retailer
that is registered | 20 | | in this State to a corporation, society, association,
| 21 | | foundation, or institution that has been issued a sales tax | 22 | | exemption
identification number by the Department that | 23 | | assists victims of the disaster
who reside within the | 24 | | declared disaster area.
| 25 | | (31) Beginning with taxable years ending on or after | 26 | | December
31, 1995 and
ending with taxable years ending on |
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| 1 | | or before December 31, 2004, personal
property that is used | 2 | | in the performance of infrastructure repairs in this
State, | 3 | | including but not limited to municipal roads and streets, | 4 | | access roads,
bridges, sidewalks, waste disposal systems, | 5 | | water and sewer line extensions,
water distribution and | 6 | | purification facilities, storm water drainage and
| 7 | | retention facilities, and sewage treatment facilities, | 8 | | resulting from a State
or federally declared disaster in | 9 | | Illinois or bordering Illinois when such
repairs are | 10 | | initiated on facilities located in the declared disaster | 11 | | area
within 6 months after the disaster.
| 12 | | (32) Beginning July 1, 1999, game or game birds sold at | 13 | | a "game breeding
and
hunting preserve area" as that term is | 14 | | used
in the
Wildlife Code. This paragraph is exempt from | 15 | | the provisions
of
Section 2-70.
| 16 | | (33) A motor vehicle, as that term is defined in | 17 | | Section 1-146
of the
Illinois Vehicle Code, that is donated | 18 | | to a corporation, limited liability
company, society, | 19 | | association, foundation, or institution that is determined | 20 | | by
the Department to be organized and operated exclusively | 21 | | for educational
purposes. For purposes of this exemption, | 22 | | "a corporation, limited liability
company, society, | 23 | | association, foundation, or institution organized and
| 24 | | operated
exclusively for educational purposes" means all | 25 | | tax-supported public schools,
private schools that offer | 26 | | systematic instruction in useful branches of
learning by |
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| 1 | | methods common to public schools and that compare favorably | 2 | | in
their scope and intensity with the course of study | 3 | | presented in tax-supported
schools, and vocational or | 4 | | technical schools or institutes organized and
operated | 5 | | exclusively to provide a course of study of not less than 6 | 6 | | weeks
duration and designed to prepare individuals to | 7 | | follow a trade or to pursue a
manual, technical, | 8 | | mechanical, industrial, business, or commercial
| 9 | | occupation.
| 10 | | (34) Beginning January 1, 2000, personal property, | 11 | | including food, purchased
through fundraising events for | 12 | | the benefit of a public or private elementary or
secondary | 13 | | school, a group of those schools, or one or more school | 14 | | districts if
the events are sponsored by an entity | 15 | | recognized by the school district that
consists primarily | 16 | | of volunteers and includes parents and teachers of the
| 17 | | school children. This paragraph does not apply to | 18 | | fundraising events (i) for
the benefit of private home | 19 | | instruction or (ii) for which the fundraising
entity | 20 | | purchases the personal property sold at the events from | 21 | | another
individual or entity that sold the property for the | 22 | | purpose of resale by the
fundraising entity and that | 23 | | profits from the sale to the fundraising entity.
This | 24 | | paragraph is exempt from the provisions of Section 2-70.
| 25 | | (35) Beginning January 1, 2000 and through December 31, | 26 | | 2001, new or used
automatic vending machines that prepare |
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| 1 | | and serve hot food and beverages,
including coffee, soup, | 2 | | and other items, and replacement parts for these
machines. | 3 | | Beginning January 1, 2002 and through June 30, 2003, | 4 | | machines
and parts for machines used in
commercial, | 5 | | coin-operated amusement and vending business if a use or | 6 | | occupation
tax is paid on the gross receipts derived from | 7 | | the use of the commercial,
coin-operated amusement and | 8 | | vending machines. This paragraph is exempt from
the | 9 | | provisions of Section 2-70.
| 10 | | (35-5) Beginning August 23, 2001 and through June 30, | 11 | | 2016, food for human consumption that is to be consumed off
| 12 | | the premises where it is sold (other than alcoholic | 13 | | beverages, soft drinks,
and food that has been prepared for | 14 | | immediate consumption) and prescription
and | 15 | | nonprescription medicines, drugs, medical appliances, and | 16 | | insulin, urine
testing materials, syringes, and needles | 17 | | used by diabetics, for human use, when
purchased for use by | 18 | | a person receiving medical assistance under Article V of
| 19 | | the Illinois Public Aid Code who resides in a licensed | 20 | | long-term care facility,
as defined in the Nursing Home | 21 | | Care Act, or a licensed facility as defined in the ID/DD | 22 | | Community Care Act, the MC/DD Act, or the Specialized | 23 | | Mental Health Rehabilitation Act of 2013.
| 24 | | (36) Beginning August 2, 2001, computers and | 25 | | communications equipment
utilized for any hospital purpose | 26 | | and equipment used in the diagnosis,
analysis, or treatment |
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| 1 | | of hospital patients sold to a lessor who leases the
| 2 | | equipment, under a lease of one year or longer executed or | 3 | | in effect at the
time of the purchase, to a hospital that | 4 | | has been issued an active tax
exemption identification | 5 | | number by the Department under Section 1g of this Act.
This | 6 | | paragraph is exempt from the provisions of Section 2-70.
| 7 | | (37) Beginning August 2, 2001, personal property sold | 8 | | to a lessor who
leases the property, under a lease of one | 9 | | year or longer executed or in effect
at the time of the | 10 | | purchase, to a governmental body that has been issued an
| 11 | | active tax exemption identification number by the | 12 | | Department under Section 1g
of this Act. This paragraph is | 13 | | exempt from the provisions of Section 2-70.
| 14 | | (38) Beginning on January 1, 2002 and through June 30, | 15 | | 2016, tangible personal property purchased
from an | 16 | | Illinois retailer by a taxpayer engaged in centralized | 17 | | purchasing
activities in Illinois who will, upon receipt of | 18 | | the property in Illinois,
temporarily store the property in | 19 | | Illinois (i) for the purpose of subsequently
transporting | 20 | | it outside this State for use or consumption thereafter | 21 | | solely
outside this State or (ii) for the purpose of being | 22 | | processed, fabricated, or
manufactured into, attached to, | 23 | | or incorporated into other tangible personal
property to be | 24 | | transported outside this State and thereafter used or | 25 | | consumed
solely outside this State. The Director of Revenue | 26 | | shall, pursuant to rules
adopted in accordance with the |
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| 1 | | Illinois Administrative Procedure Act, issue a
permit to | 2 | | any taxpayer in good standing with the Department who is | 3 | | eligible for
the exemption under this paragraph (38). The | 4 | | permit issued under
this paragraph (38) shall authorize the | 5 | | holder, to the extent and
in the manner specified in the | 6 | | rules adopted under this Act, to purchase
tangible personal | 7 | | property from a retailer exempt from the taxes imposed by
| 8 | | this Act. Taxpayers shall maintain all necessary books and | 9 | | records to
substantiate the use and consumption of all such | 10 | | tangible personal property
outside of the State of | 11 | | Illinois.
| 12 | | (39) Beginning January 1, 2008, tangible personal | 13 | | property used in the construction or maintenance of a | 14 | | community water supply, as defined under Section 3.145 of | 15 | | the Environmental Protection Act, that is operated by a | 16 | | not-for-profit corporation that holds a valid water supply | 17 | | permit issued under Title IV of the Environmental | 18 | | Protection Act. This paragraph is exempt from the | 19 | | provisions of Section 2-70.
| 20 | | (40) Beginning January 1, 2010, materials, parts, | 21 | | equipment, components, and furnishings incorporated into | 22 | | or upon an aircraft as part of the modification, | 23 | | refurbishment, completion, replacement, repair, or | 24 | | maintenance of the aircraft. This exemption includes | 25 | | consumable supplies used in the modification, | 26 | | refurbishment, completion, replacement, repair, and |
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| 1 | | maintenance of aircraft, but excludes any materials, | 2 | | parts, equipment, components, and consumable supplies used | 3 | | in the modification, replacement, repair, and maintenance | 4 | | of aircraft engines or power plants, whether such engines | 5 | | or power plants are installed or uninstalled upon any such | 6 | | aircraft. "Consumable supplies" include, but are not | 7 | | limited to, adhesive, tape, sandpaper, general purpose | 8 | | lubricants, cleaning solution, latex gloves, and | 9 | | protective films. This exemption applies only to the sale | 10 | | of qualifying tangible personal property to persons who | 11 | | modify, refurbish, complete, replace, or maintain an | 12 | | aircraft and who (i) hold an Air Agency Certificate and are | 13 | | empowered to operate an approved repair station by the | 14 | | Federal Aviation Administration, (ii) have a Class IV | 15 | | Rating, and (iii) conduct operations in accordance with | 16 | | Part 145 of the Federal Aviation Regulations. The exemption | 17 | | does not include aircraft operated by a commercial air | 18 | | carrier providing scheduled passenger air service pursuant | 19 | | to authority issued under Part 121 or Part 129 of the | 20 | | Federal Aviation Regulations. The changes made to this | 21 | | paragraph (40) by Public Act 98-534 are declarative of | 22 | | existing law. | 23 | | (41) Tangible personal property sold to a | 24 | | public-facilities corporation, as described in Section | 25 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 26 | | constructing or furnishing a municipal convention hall, |
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| 1 | | but only if the legal title to the municipal convention | 2 | | hall is transferred to the municipality without any further | 3 | | consideration by or on behalf of the municipality at the | 4 | | time of the completion of the municipal convention hall or | 5 | | upon the retirement or redemption of any bonds or other | 6 | | debt instruments issued by the public-facilities | 7 | | corporation in connection with the development of the | 8 | | municipal convention hall. This exemption includes | 9 | | existing public-facilities corporations as provided in | 10 | | Section 11-65-25 of the Illinois Municipal Code. This | 11 | | paragraph is exempt from the provisions of Section 2-70. | 12 | | (42) Beginning January 1, 2017, menstrual pads, | 13 | | tampons, and menstrual cups. | 14 | | (43) Merchandise that is subject to the Rental Purchase | 15 | | Agreement Occupation and Use Tax. The purchaser must | 16 | | certify that the item is purchased to be rented subject to | 17 | | a rental purchase agreement, as defined in the Rental | 18 | | Purchase Agreement Act, and provide proof of registration | 19 | | under the Rental Purchase Agreement Occupation and Use Tax | 20 | | Act. This paragraph is exempt from the provisions of | 21 | | Section 2-70. | 22 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 23 | | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | 24 | | 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18.)
| 25 | | Section 45. The Automobile Renting Occupation and Use Tax |
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| 1 | | Act is amended by changing Sections 2 and 3 as follows:
| 2 | | (35 ILCS 155/2) (from Ch. 120, par. 1702)
| 3 | | Sec. 2. Definitions. "Renting" means any transfer of the | 4 | | possession
or right to possession of an automobile to a user | 5 | | for a valuable consideration
for a period of one year or less , | 6 | | excluding car sharing conducted through a peer-to-peer car | 7 | | sharing program as defined in the Peer-to-Peer Car Sharing | 8 | | Program Act .
| 9 | | "Renting" does not include making a charge for the use of | 10 | | an
automobile where the rentor, either himself or through an | 11 | | agent, furnishes a
service of operating an automobile so that | 12 | | the rentor remains in possession of
the automobile, because | 13 | | this does not constitute a transfer of possession
or right to | 14 | | possession of the automobile.
| 15 | | "Renting" does not include the making of a charge by an
| 16 | | automobile dealer for the use of an automobile as a | 17 | | demonstrator in connection
with the dealer's business of | 18 | | selling, where the charge is merely made to
recover the costs | 19 | | of operating the automobile as a demonstrator and is not
| 20 | | intended as a rental or leasing charge in the ordinary sense.
| 21 | | "Automobile" means (1) any motor vehicle of the first | 22 | | division, or (2) a motor vehicle
of the second division which: | 23 | | (A) is a self-contained motor vehicle designed or
permanently | 24 | | converted to provide living quarters for recreational, camping | 25 | | or
travel use, with direct walk through access to the living |
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| 1 | | quarters from the
driver's seat; (B) is of the van
| 2 | | configuration designed for the transportation of not less than | 3 | | 7 nor more than
16 passengers, as defined in Section 1-146 of | 4 | | the Illinois Vehicle
Code; or (C) has a Gross Vehicle Weight | 5 | | Rating, as defined in Section 1-124.5 of the Illinois Vehicle | 6 | | Code, of 8,000 pounds or less.
| 7 | | "Department" means the Department of Revenue.
| 8 | | "Person" means any natural individual, firm, partnership, | 9 | | association,
joint stock company, joint adventure, public or | 10 | | private corporation, limited
liability company, or a receiver, | 11 | | executor, trustee, conservator or other
representative | 12 | | appointed by order of any court.
| 13 | | "Rentor" means any person, firm, corporation or | 14 | | association engaged in
the business of renting or leasing | 15 | | automobiles to users. For this purpose,
the objective of making | 16 | | a profit is not necessary to make the renting activity
a | 17 | | business "Rentor" does not mean a person, firm, corporation, or | 18 | | association that facilitates car sharing as part of a | 19 | | peer-to-peer car sharing program as defined in the Peer-to-Peer | 20 | | Car Sharing Program Act .
| 21 | | "Rentee" means any user to whom the possession, or the | 22 | | right to possession,
of an automobile is transferred for a | 23 | | valuable consideration for a period
of one year or less, | 24 | | whether paid for by the "rentee" or by someone else.
| 25 | | "Gross receipts" from the renting of tangible personal | 26 | | property or
"rent" means the total rental price or leasing |
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| 1 | | price. In the case of
rental transactions in which the | 2 | | consideration is paid to the rentor on an
installment basis, | 3 | | the amounts of such payments shall be included by the rentor
in | 4 | | gross receipts or rent only as and when payments are received | 5 | | by the rentor.
| 6 | | "Gross receipts" does not include receipts received by an | 7 | | automobile dealer
from a manufacturer or service contract | 8 | | provider
for the use of an automobile by a person while that | 9 | | person's automobile is
being repaired by that automobile dealer | 10 | | and the repair is made pursuant to a
manufacturer's warranty or | 11 | | a service contract where a manufacturer or service
contract | 12 | | provider reimburses that automobile dealer pursuant to a
| 13 | | manufacturer's warranty or a service contract and the | 14 | | reimbursement is merely
made
to recover the costs of operating | 15 | | the automobile as a loaner vehicle.
| 16 | | "Rental price" means the consideration for renting or | 17 | | leasing an automobile
valued in money, whether received in | 18 | | money or otherwise, including cash
credits, property and | 19 | | services, and shall be determined without any deduction
on | 20 | | account of the cost of the property rented, the cost of | 21 | | materials used,
labor or service cost, or any other expense | 22 | | whatsoever, but does not
include charges that are added by a | 23 | | rentor on account of the
rentor's tax liability under this Act | 24 | | or on account of the rentor's duty
to collect, from the rentee, | 25 | | the tax that is imposed by Section 4 of this Act.
The phrase | 26 | | "rental price" does not include compensation paid to a rentor |
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| 1 | | by a
rentee in consideration of the waiver by the rentor of any | 2 | | right of action or
claim against the rentee for loss or damage | 3 | | to the automobile
rented and also does not include a separately | 4 | | stated charge for insurance or
recovery of refueling costs or | 5 | | other separately stated charges that are not for
the use of | 6 | | tangible personal property.
| 7 | | "Peer-to-peer car sharing program" has the meaning | 8 | | ascribed to it in the Peer-to-Peer Car Sharing Program Act. | 9 | | (Source: P.A. 98-574, eff. 1-1-14.)
| 10 | | (35 ILCS 155/3) (from Ch. 120, par. 1703)
| 11 | | Sec. 3. Automobile renting and peer-to-peer car sharing. | 12 | | (a) A tax is imposed upon : (i) persons engaged in this | 13 | | State in the business
of renting automobiles in Illinois ; and | 14 | | (ii) upon only those shared vehicle owners engaged in car | 15 | | sharing conducted through a peer-to-peer car sharing program | 16 | | whose vehicles used for car sharing are used exclusively for | 17 | | car sharing and that received the tangible personal property | 18 | | tax exemption pursuant to subsection (5) of Section 2-5 of the | 19 | | Retailers' Occupation Tax Act at the rate of 5% of the gross | 20 | | receipts
received from such business. The tax herein imposed | 21 | | does not apply to the
renting of automobiles to or to car | 22 | | sharing transactions involving any governmental body, nor to | 23 | | any corporation,
society, association, foundation or | 24 | | institution organized and operated
exclusively for charitable, | 25 | | religious or educational purposes, nor to any
not for profit |
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| 1 | | corporation, society, association, foundation, institution
or | 2 | | organization which has no compensated officers or employees and | 3 | | which is
organized and operated primarily for the recreation of | 4 | | persons 55 years of
age or older. The tax herein imposed does | 5 | | not apply to any person engaged in the renting of automobiles, | 6 | | or to peer-to-peer car sharing transactions, with respect to | 7 | | vehicles the purchase of which was subject to taxation pursuant | 8 | | to Section 2-5 of the Retailer's Occupation Tax Act and Section | 9 | | 3-5 of the Use Tax Act as a result of a purchaser not electing | 10 | | exemption at the time of purchase. Every person engaged in this | 11 | | State in the business of renting
automobiles and each | 12 | | peer-to-peer car sharing program shall apply to the Department | 13 | | (upon a form prescribed and
furnished by the Department) for a | 14 | | certificate of registration under this
Act. The certificate of | 15 | | registration which is issued by the Department to a
retailer | 16 | | under the Retailers' Occupation Tax Act shall permit such | 17 | | rentor
to engage in a business which is taxable under this | 18 | | Section without
registering separately with the Department. A | 19 | | registered peer-to-peer car sharing program may collect and | 20 | | remit the taxes imposed by this Section to the Department on | 21 | | behalf of shared vehicle owners engaged in car sharing | 22 | | conducted through the registered peer-to-peer car sharing | 23 | | program.
| 24 | | The Department shall have full power to administer and | 25 | | enforce this Section,
to collect all taxes and penalties due | 26 | | hereunder, to dispose of taxes and
penalties so collected in |
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| 1 | | the manner hereinafter provided, and to determine
all rights to | 2 | | credit memoranda, arising on account of the erroneous payment
| 3 | | of tax or penalty hereunder. In the administration of, and | 4 | | compliance with,
this Section, the Department and persons who | 5 | | are subject to this Section
shall have the same rights, | 6 | | remedies, privileges, immunities, powers and
duties, and be | 7 | | subject to the same conditions, restrictions, limitations,
| 8 | | penalties and definitions of terms, and employ the same modes | 9 | | of procedure,
as are prescribed in Sections 1, 1a, 2 through | 10 | | 2-65 (in respect to all
provisions therein other than the State | 11 | | rate of tax), 2a, 2b, 2c, 3 (except
provisions relating to | 12 | | transaction returns, electronic filing of returns, and quarter | 13 | | monthly payments),
4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, | 14 | | 6a, 6b, 6c, 7, 8, 9, 10, 11,
11a, 12 and 13 of the Retailers' | 15 | | Occupation Tax Act and Section 3-7 of the
Uniform Penalty and | 16 | | Interest Act as fully as if those provisions were set
forth | 17 | | herein.
| 18 | | (b) With respect to the tax imposed upon shared vehicle | 19 | | owners engaged in car sharing conducted through a peer-to-peer | 20 | | car sharing program, no home rule unit of government has any | 21 | | authority to impose, pursuant to its home rule jurisdiction, a | 22 | | tax upon shared vehicle owners engaged in car sharing, whose | 23 | | vehicles are used exclusively or non-exclusively for | 24 | | peer-to-peer car sharing, as defined in the Peer-to-Peer Car | 25 | | Sharing Program Act; however, this tax is applicable with | 26 | | respect to vehicles purchased by individuals who elected to |
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| 1 | | claim the exemptions set forth in paragraph (5) of Section 2-5 | 2 | | of the Retailer's Occupation Tax Act and paragraph (10) of | 3 | | Section 3-5 of the Use Tax Act. This Section is a denial and | 4 | | limitation of home rule powers and functions under subsection | 5 | | (g) of Section 6 of Article VII of the Illinois Constitution. | 6 | | (Source: P.A. 100-303, eff. 8-24-17.)
| 7 | | Section 50. The Renter's Financial Responsibility and | 8 | | Protection Act is amended by changing Section 10 as follows:
| 9 | | (625 ILCS 27/10)
| 10 | | Sec. 10. Definitions. As used in this Act:
| 11 | | "Rental Company" means a person or entity that rents
| 12 | | private passenger vehicles to the public for 30 days or less. | 13 | | "Rental Company" does not mean a peer-to-peer car sharing | 14 | | program or shared vehicle owner as defined in the Peer-to-Peer | 15 | | Car Sharing Program Act.
| 16 | | "Renter" means a person or entity that obtains the use of a | 17 | | private
passenger vehicle from a rental company under terms of | 18 | | a rental agreement.
| 19 | | "Rental Agreement" means an agreement for 30 days or less | 20 | | setting
forth the terms and conditions governing the use of a | 21 | | private passenger vehicle
provided by a rental company.
| 22 | | "Authorized Driver" means: the renter; the renter's spouse | 23 | | if the spouse is a
licensed driver and satisfies
the rental | 24 | | company's minimum age requirement; the renter's employer, |
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| 1 | | employee,
or co-worker if that person is a
licensed driver, | 2 | | satisfies the rental company's minimum age requirement, and at
| 3 | | the time of the rental is engaged in a business activity with | 4 | | the renter; any
person who is expressly listed by the rental | 5 | | company on the
rental
agreement as an authorized driver; and | 6 | | any person driving directly to a medical
or police facility | 7 | | under
circumstances reasonably believed to constitute an | 8 | | emergency and who is a
licensed driver.
| 9 | | "Damage Waiver" means a rental company's agreement not to | 10 | | hold
an authorized driver liable for all or a part of any | 11 | | damage to or loss of a
rented vehicle for which the renter may
| 12 | | be liable pursuant to Section 6-305.2. "Damage Waiver" shall | 13 | | encompass within
its meaning other similar terms
used by rental | 14 | | companies, such as "Collision Damage Waiver", "Loss Damage
| 15 | | Waiver", "Physical Damage Waiver", and the like.
| 16 | | (Source: P.A. 90-113, eff. 7-14-97.)
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.".
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