Full Text of SB3505 100th General Assembly
SB3505sam002 100TH GENERAL ASSEMBLY | Sen. Jil Tracy Filed: 4/18/2018
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| 1 | | AMENDMENT TO SENATE BILL 3505
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3505 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Use Tax Act is amended by changing Section | 5 | | 3-55 as follows:
| 6 | | (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
| 7 | | Sec. 3-55. Multistate exemption. To prevent actual or | 8 | | likely multistate taxation, the tax imposed by this
Act
does | 9 | | not apply to the use of
tangible personal property in this | 10 | | State under the following circumstances:
| 11 | | (a) The use, in this State, of tangible personal property | 12 | | acquired
outside this State by a nonresident individual and | 13 | | brought into this
State by the individual for his or her own | 14 | | use while temporarily within
this State or while passing | 15 | | through this State.
| 16 | | (b) (Blank).
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| 1 | | (c) The use, in this State, by owners, lessors,
or
shippers
| 2 | | of tangible personal property that is utilized by interstate | 3 | | carriers
for hire for use as rolling stock moving in interstate | 4 | | commerce as
long as so used by the interstate carriers for | 5 | | hire, and equipment
operated by a telecommunications provider, | 6 | | licensed as a common carrier by the
Federal Communications | 7 | | Commission, which is permanently installed in or affixed
to | 8 | | aircraft moving in interstate commerce.
| 9 | | (d) The use, in this State, of tangible personal property | 10 | | that is
acquired outside this State and caused to be brought | 11 | | into this State by
a person who has already paid a tax in | 12 | | another State in respect to the
sale, purchase, or use of that | 13 | | property, to the extent of the amount of
the tax properly due | 14 | | and paid in the other State.
| 15 | | (e) The temporary storage, in this State, of tangible | 16 | | personal
property that is acquired outside this State and that, | 17 | | after
being brought into this State and stored here | 18 | | temporarily, is used
solely outside this State or is physically | 19 | | attached to or incorporated
into other tangible personal | 20 | | property that is used solely outside this
State, or is altered | 21 | | by converting, fabricating, manufacturing, printing,
| 22 | | processing, or shaping, and, as altered, is used solely outside | 23 | | this State.
| 24 | | (f) The temporary storage in this State of building | 25 | | materials and
fixtures that are acquired either in this State | 26 | | or outside this State
by an Illinois registered combination |
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| 1 | | retailer and construction contractor, and
that the purchaser | 2 | | thereafter uses outside this State by incorporating that
| 3 | | property into real estate located outside this State.
| 4 | | (g) The use or purchase of tangible personal property by a | 5 | | common carrier
by rail or motor that receives the physical | 6 | | possession of the property in
Illinois, and
that transports the | 7 | | property, or shares with another common carrier in the
| 8 | | transportation of the property, out of Illinois on a standard | 9 | | uniform bill of
lading showing the seller of the property as | 10 | | the shipper or consignor of the
property to a destination | 11 | | outside Illinois, for use outside Illinois.
| 12 | | (h) Except as provided in subsection (h-1), the use, in | 13 | | this State, of a motor vehicle that was sold in
this State to a | 14 | | nonresident, even though the motor vehicle is
delivered to the | 15 | | nonresident in this State, if the motor vehicle
is not to be | 16 | | titled in this State, and if a
drive-away permit is issued to | 17 | | the motor vehicle as
provided in Section 3-603 of the Illinois | 18 | | Vehicle Code or if the
nonresident purchaser has vehicle | 19 | | registration plates to transfer
to the motor vehicle upon | 20 | | returning to his or her home state.
The issuance of the | 21 | | drive-away permit or having the
out-of-state
registration | 22 | | plates to be transferred shall be prima facie evidence
that the | 23 | | motor vehicle will not be titled in this State.
| 24 | | (h-1) The exemption under subsection (h) does not apply if | 25 | | the state in which the motor vehicle will be titled does not | 26 | | allow a reciprocal exemption for the use in that state of a |
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| 1 | | motor vehicle sold and delivered in that state to an Illinois | 2 | | resident but titled in Illinois. The tax collected under this | 3 | | Act on the sale of a motor vehicle in this State to a resident | 4 | | of another state that does not allow a reciprocal exemption | 5 | | shall be imposed at a rate equal to the state's rate of tax on | 6 | | taxable property in the state in which the purchaser is a | 7 | | resident, except that the tax shall not exceed the tax that | 8 | | would otherwise be imposed under this Act. At the time of the | 9 | | sale, the purchaser shall execute a statement, signed under | 10 | | penalty of perjury, of his or her intent to title the vehicle | 11 | | in the state in which the purchaser is a resident within 30 | 12 | | days after the sale and of the fact of the payment to the State | 13 | | of Illinois of tax in an amount equivalent to the state's rate | 14 | | of tax on taxable property in his or her state of residence and | 15 | | shall submit the statement to the appropriate tax collection | 16 | | agency in his or her state of residence. In addition, the | 17 | | retailer must retain a signed copy of the statement in his or | 18 | | her records. Nothing in this subsection shall be construed to | 19 | | require the removal of the vehicle from this state following | 20 | | the filing of an intent to title the vehicle in the purchaser's | 21 | | state of residence if the purchaser titles the vehicle in his | 22 | | or her state of residence within 30 days after the date of | 23 | | sale. The tax collected under this Act in accordance with this | 24 | | subsection (h-1) shall be proportionately distributed as if the | 25 | | tax were collected at the 6.25% general rate imposed under this | 26 | | Act.
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| 1 | | (h-2) The following exemptions apply with respect to | 2 | | certain aircraft: | 3 | | (1) Beginning on July 1, 2007, no tax is imposed under | 4 | | this Act on the purchase of an aircraft, as defined in | 5 | | Section 3 of the Illinois Aeronautics Act, if all of the | 6 | | following conditions are met: | 7 | | (A) the aircraft leaves this State within 15 days | 8 | | after the later of either the issuance of the final | 9 | | billing for the purchase of the aircraft or the | 10 | | authorized approval for return to service, completion | 11 | | of the maintenance record entry, and completion of the | 12 | | test flight and ground test for inspection, as required | 13 | | by 14 C.F.R. 91.407; | 14 | | (B) the aircraft is not based or registered in this | 15 | | State after the purchase of the aircraft; and | 16 | | (C) the purchaser provides the Department with a | 17 | | signed and dated certification, on a form prescribed by | 18 | | the Department, certifying that the requirements of | 19 | | this item (1) are met. The certificate must also | 20 | | include the name and address of the purchaser, the | 21 | | address of the location where the aircraft is to be | 22 | | titled or registered, the address of the primary | 23 | | physical location of the aircraft, and other | 24 | | information that the Department may reasonably | 25 | | require. | 26 | | (2) Beginning on July 1, 2007, no tax is imposed under |
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| 1 | | this Act on the use of an aircraft, as defined in Section 3 | 2 | | of the Illinois Aeronautics Act, that is temporarily | 3 | | located in this State for the purpose of a prepurchase | 4 | | evaluation if all of the following conditions are met: | 5 | | (A) the aircraft is not based or registered in this | 6 | | State after the prepurchase evaluation; and | 7 | | (B) the purchaser provides the Department with a | 8 | | signed and dated certification, on a form prescribed by | 9 | | the Department, certifying that the requirements of | 10 | | this item (2) are met. The certificate must also | 11 | | include the name and address of the purchaser, the | 12 | | address of the location where the aircraft is to be | 13 | | titled or registered, the address of the primary | 14 | | physical location of the aircraft, and other | 15 | | information that the Department may reasonably | 16 | | require. | 17 | | (3) Beginning on July 1, 2007, no tax is imposed under | 18 | | this Act on the use of an aircraft, as defined in Section 3 | 19 | | of the Illinois Aeronautics Act, that is temporarily | 20 | | located in this State for the purpose of a post-sale | 21 | | customization if all of the following conditions are met: | 22 | | (A) the aircraft leaves this State within 15 days | 23 | | after the authorized approval for return to service, | 24 | | completion of the maintenance record entry, and | 25 | | completion of the test flight and ground test for | 26 | | inspection, as required by 14 C.F.R. 91.407; |
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| 1 | | (B) the aircraft is not based or registered in this | 2 | | State either before or after the post-sale | 3 | | customization; and | 4 | | (C) the purchaser provides the Department with a | 5 | | signed and dated certification, on a form prescribed by | 6 | | the Department, certifying that the requirements of | 7 | | this item (3) are met. The certificate must also | 8 | | include the name and address of the purchaser, the | 9 | | address of the location where the aircraft is to be | 10 | | titled or registered, the address of the primary | 11 | | physical location of the aircraft, and other | 12 | | information that the Department may reasonably | 13 | | require. | 14 | | If tax becomes due under this subsection (h-2) because of | 15 | | the purchaser's use of the aircraft in this State, the | 16 | | purchaser shall file a return with the Department and pay the | 17 | | tax on the fair market value of the aircraft. This return and | 18 | | payment of the tax must be made no later than 30 days after the | 19 | | aircraft is used in a taxable manner in this State. The tax is | 20 | | based on the fair market value of the aircraft on the date that | 21 | | it is first used in a taxable manner in this State. | 22 | | For purposes of this subsection (h-2): | 23 | | "Based in this State" means hangared, stored, or otherwise | 24 | | used, excluding post-sale customizations as defined in this | 25 | | Section, for 10 or more days in each 12-month period | 26 | | immediately following the date of the sale of the aircraft. |
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| 1 | | "Post-sale customization" means any improvement, | 2 | | maintenance, or repair that is performed on an aircraft | 3 | | following a transfer of ownership of the aircraft. | 4 | | "Prepurchase evaluation" means an examination of an | 5 | | aircraft to provide a potential purchaser with information | 6 | | relevant to the potential purchase. | 7 | | "Registered in this State" means an aircraft registered | 8 | | with the Department of Transportation, Aeronautics Division, | 9 | | or titled or registered with the Federal Aviation | 10 | | Administration to an address located in this State.
| 11 | | This subsection (h-2) is exempt from the provisions of | 12 | | Section 3-90.
| 13 | | (i) Beginning July 1, 1999, the use, in this State, of fuel | 14 | | acquired
outside this State and brought into this State in the | 15 | | fuel supply
tanks of locomotives engaged in freight hauling and | 16 | | passenger service for
interstate commerce. This subsection is | 17 | | exempt from the provisions of Section
3-90.
| 18 | | (j) Beginning on January 1, 2002 and through June 30, 2016, | 19 | | and beginning again on the first day of the first month to | 20 | | occur on or after the effective date of this amendatory Act of | 21 | | the 100th General Assembly and through June 30, 2021, the use | 22 | | of tangible personal property
purchased from an Illinois | 23 | | retailer by a taxpayer engaged in centralized
purchasing | 24 | | activities in Illinois who will, upon receipt of the property | 25 | | in
Illinois, temporarily store the property in Illinois (i) for | 26 | | the purpose of
subsequently transporting it outside this State |
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| 1 | | for use or consumption
thereafter solely outside this State or | 2 | | (ii) for the purpose of being
processed, fabricated, or | 3 | | manufactured into, attached to, or incorporated into
other | 4 | | tangible personal property to be transported outside this State | 5 | | and
thereafter used or consumed solely outside this State. The | 6 | | Director of Revenue
shall, pursuant to rules adopted in | 7 | | accordance with the Illinois Administrative
Procedure Act, | 8 | | issue a permit to any taxpayer in good standing with the
| 9 | | Department who is eligible for the exemption under this | 10 | | subsection (j). The
permit issued under this subsection (j) | 11 | | shall authorize the holder, to the
extent and in the manner | 12 | | specified in the rules adopted under this Act, to
purchase | 13 | | tangible personal property from a retailer exempt from the | 14 | | taxes
imposed by this Act. Taxpayers shall maintain all | 15 | | necessary books and records
to substantiate the use and | 16 | | consumption of all such tangible personal property
outside of | 17 | | the State of Illinois.
| 18 | | (Source: P.A. 100-321, eff. 8-24-17.)
| 19 | | Section 10. The Service Use Tax Act is amended by changing | 20 | | Section 3-45 as follows:
| 21 | | (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)
| 22 | | Sec. 3-45. Multistate exemption. To prevent actual or | 23 | | likely multistate
taxation, the tax imposed by this Act does | 24 | | not apply
to the use of tangible personal property in this |
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| 1 | | State under the following
circumstances:
| 2 | | (a) The use, in this State, of property acquired outside | 3 | | this State
by a nonresident individual and brought into this | 4 | | State by the
individual for his or her own use while | 5 | | temporarily within this State or
while passing through this | 6 | | State.
| 7 | | (b) The use, in this State, of property that is
acquired | 8 | | outside
this State and that is moved into this State for use as | 9 | | rolling stock
moving in interstate commerce.
| 10 | | (c) The use, in this State, of property that is acquired | 11 | | outside
this State and caused to be brought into this State by | 12 | | a person who has
already paid a tax in another state in respect | 13 | | to the sale, purchase, or
use of that property, to the extent | 14 | | of the amount of the tax properly
due and paid in the other | 15 | | state.
| 16 | | (d) The temporary storage, in this State, of property that | 17 | | is
acquired outside this State and that after being brought | 18 | | into
this State and stored here temporarily, is used solely | 19 | | outside this
State or is physically attached to or incorporated | 20 | | into other property
that is used solely outside this State, or | 21 | | is altered by converting,
fabricating, manufacturing, | 22 | | printing, processing, or shaping, and, as
altered, is used | 23 | | solely outside this State.
| 24 | | (e) Beginning July 1, 1999, the use, in this State, of fuel | 25 | | acquired
outside this State and brought into this State in the | 26 | | fuel supply
tanks of locomotives engaged in freight hauling and |
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| 1 | | passenger service for
interstate commerce. This subsection is | 2 | | exempt from the provisions of Section
3-75.
| 3 | | (f) Beginning on January 1, 2002 and through June 30, 2016, | 4 | | and beginning again on the first day of the first month to | 5 | | occur on or after the effective date of this amendatory Act of | 6 | | the 100th General Assembly and through June 30, 2021, the use | 7 | | of tangible personal property
purchased from an Illinois | 8 | | retailer by a taxpayer engaged in centralized
purchasing | 9 | | activities in Illinois who will, upon receipt of the property | 10 | | in
Illinois, temporarily store the property in Illinois (i) for | 11 | | the purpose of
subsequently transporting it outside this State | 12 | | for use or consumption
thereafter solely outside this State or | 13 | | (ii) for the purpose of being
processed, fabricated, or | 14 | | manufactured into, attached to, or incorporated into
other | 15 | | tangible personal property to be transported outside this State | 16 | | and
thereafter used or consumed solely outside this State. The | 17 | | Director of Revenue
shall, pursuant to rules adopted in | 18 | | accordance with the Illinois Administrative
Procedure Act, | 19 | | issue a permit to any taxpayer in good standing with the
| 20 | | Department who is eligible for the exemption under this | 21 | | subsection (f). The
permit issued under this subsection (f) | 22 | | shall authorize the holder, to the
extent and in the manner | 23 | | specified in the rules adopted under this Act, to
purchase | 24 | | tangible personal property from a retailer exempt from the | 25 | | taxes
imposed by this Act. Taxpayers shall maintain all | 26 | | necessary books and records
to substantiate the use and |
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| 1 | | consumption of all such tangible personal property
outside of | 2 | | the State of Illinois.
| 3 | | (Source: P.A. 97-73, eff. 6-30-11.)
| 4 | | Section 15. The Service Occupation Tax Act is amended by | 5 | | changing Section 3-5 as follows:
| 6 | | (35 ILCS 115/3-5)
| 7 | | Sec. 3-5. Exemptions. The following tangible personal | 8 | | property is
exempt from the tax imposed by this Act:
| 9 | | (1) Personal property sold by a corporation, society, | 10 | | association,
foundation, institution, or organization, other | 11 | | than a limited liability
company, that is organized and | 12 | | operated as a not-for-profit service enterprise
for the benefit | 13 | | of persons 65 years of age or older if the personal property
| 14 | | was not purchased by the enterprise for the purpose of resale | 15 | | by the
enterprise.
| 16 | | (2) Personal property purchased by a not-for-profit | 17 | | Illinois county fair
association for use in conducting, | 18 | | operating, or promoting the county fair.
| 19 | | (3) Personal property purchased by any not-for-profit
arts | 20 | | or cultural organization that establishes, by proof required by | 21 | | the
Department by
rule, that it has received an exemption under | 22 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 23 | | organized and operated primarily for the
presentation
or | 24 | | support of arts or cultural programming, activities, or |
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| 1 | | services. These
organizations include, but are not limited to, | 2 | | music and dramatic arts
organizations such as symphony | 3 | | orchestras and theatrical groups, arts and
cultural service | 4 | | organizations, local arts councils, visual arts organizations,
| 5 | | and media arts organizations.
On and after the effective date | 6 | | of this amendatory Act of the 92nd General
Assembly, however, | 7 | | an entity otherwise eligible for this exemption shall not
make | 8 | | tax-free purchases unless it has an active identification | 9 | | number issued by
the Department.
| 10 | | (4) Legal tender, currency, medallions, or gold or silver | 11 | | coinage
issued by the State of Illinois, the government of the | 12 | | United States of
America, or the government of any foreign | 13 | | country, and bullion.
| 14 | | (5) Until July 1, 2003 and beginning again on September 1, | 15 | | 2004 through August 30, 2014, graphic arts machinery and | 16 | | equipment, including
repair and
replacement parts, both new and | 17 | | used, and including that manufactured on
special order or | 18 | | purchased for lease, certified by the purchaser to be used
| 19 | | primarily for graphic arts production.
Equipment includes | 20 | | chemicals or chemicals acting as catalysts but only if
the
| 21 | | chemicals or chemicals acting as catalysts effect a direct and | 22 | | immediate change
upon a graphic arts product. Beginning on July | 23 | | 1, 2017, graphic arts machinery and equipment is included in | 24 | | the manufacturing and assembling machinery and equipment | 25 | | exemption under Section 2 of this Act.
| 26 | | (6) Personal property sold by a teacher-sponsored student |
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| 1 | | organization
affiliated with an elementary or secondary school | 2 | | located in Illinois.
| 3 | | (7) Farm machinery and equipment, both new and used, | 4 | | including that
manufactured on special order, certified by the | 5 | | purchaser to be used
primarily for production agriculture or | 6 | | State or federal agricultural
programs, including individual | 7 | | replacement parts for the machinery and
equipment, including | 8 | | machinery and equipment purchased for lease,
and including | 9 | | implements of husbandry defined in Section 1-130 of
the | 10 | | Illinois Vehicle Code, farm machinery and agricultural | 11 | | chemical and
fertilizer spreaders, and nurse wagons required to | 12 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 13 | | but
excluding other motor vehicles required to be registered | 14 | | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 15 | | hoop houses used for propagating, growing, or
overwintering | 16 | | plants shall be considered farm machinery and equipment under
| 17 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 18 | | shall include units sold
separately from a motor vehicle | 19 | | required to be licensed and units sold mounted
on a motor | 20 | | vehicle required to be licensed if the selling price of the | 21 | | tender
is separately stated.
| 22 | | Farm machinery and equipment shall include precision | 23 | | farming equipment
that is
installed or purchased to be | 24 | | installed on farm machinery and equipment
including, but not | 25 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 26 | | or spreaders.
Precision farming equipment includes, but is not |
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| 1 | | limited to,
soil testing sensors, computers, monitors, | 2 | | software, global positioning
and mapping systems, and other | 3 | | such equipment.
| 4 | | Farm machinery and equipment also includes computers, | 5 | | sensors, software, and
related equipment used primarily in the
| 6 | | computer-assisted operation of production agriculture | 7 | | facilities, equipment,
and activities such as, but
not limited | 8 | | to,
the collection, monitoring, and correlation of
animal and | 9 | | crop data for the purpose of
formulating animal diets and | 10 | | agricultural chemicals. This item (7) is exempt
from the | 11 | | provisions of
Section 3-55.
| 12 | | (8) Until June 30, 2013, fuel and petroleum products sold | 13 | | to or used by an air common
carrier, certified by the carrier | 14 | | to be used for consumption, shipment,
or storage in the conduct | 15 | | of its business as an air common carrier, for
a flight destined | 16 | | for or returning from a location or locations
outside the | 17 | | United States without regard to previous or subsequent domestic
| 18 | | stopovers.
| 19 | | Beginning July 1, 2013, fuel and petroleum products sold to | 20 | | or used by an air carrier, certified by the carrier to be used | 21 | | for consumption, shipment, or storage in the conduct of its | 22 | | business as an air common carrier, for a flight that (i) is | 23 | | engaged in foreign trade or is engaged in trade between the | 24 | | United States and any of its possessions and (ii) transports at | 25 | | least one individual or package for hire from the city of | 26 | | origination to the city of final destination on the same |
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| 1 | | aircraft, without regard to a change in the flight number of | 2 | | that aircraft. | 3 | | (9) Proceeds of mandatory service charges separately
| 4 | | stated on customers' bills for the purchase and consumption of | 5 | | food and
beverages, to the extent that the proceeds of the | 6 | | service charge are in fact
turned over as tips or as a | 7 | | substitute for tips to the employees who
participate directly | 8 | | in preparing, serving, hosting or cleaning up the
food or | 9 | | beverage function with respect to which the service charge is | 10 | | imposed.
| 11 | | (10) Until July 1, 2003, oil field exploration, drilling, | 12 | | and production
equipment,
including (i) rigs and parts of rigs, | 13 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 14 | | tubular goods, including casing and
drill strings, (iii) pumps | 15 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 16 | | individual replacement part for oil field exploration,
| 17 | | drilling, and production equipment, and (vi) machinery and | 18 | | equipment purchased
for lease; but
excluding motor vehicles | 19 | | required to be registered under the Illinois
Vehicle Code.
| 20 | | (11) Photoprocessing machinery and equipment, including | 21 | | repair and
replacement parts, both new and used, including that | 22 | | manufactured on
special order, certified by the purchaser to be | 23 | | used primarily for
photoprocessing, and including | 24 | | photoprocessing machinery and equipment
purchased for lease.
| 25 | | (12) Coal and aggregate exploration, mining, off-highway | 26 | | hauling,
processing,
maintenance, and reclamation equipment, |
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| 1 | | including
replacement parts and equipment, and including
| 2 | | equipment
purchased for lease, but excluding motor vehicles | 3 | | required to be registered
under the Illinois Vehicle Code. The | 4 | | changes made to this Section by Public Act 97-767 apply on and | 5 | | after July 1, 2003, but no claim for credit or refund is | 6 | | allowed on or after August 16, 2013 (the effective date of | 7 | | Public Act 98-456)
for such taxes paid during the period | 8 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 9 | | effective date of Public Act 98-456).
| 10 | | (13) Beginning January 1, 1992 and through June 30, 2016, | 11 | | food for human consumption that is to be consumed off the | 12 | | premises
where it is sold (other than alcoholic beverages, soft | 13 | | drinks and food that
has been prepared for immediate | 14 | | consumption) and prescription and
non-prescription medicines, | 15 | | drugs, medical appliances, and insulin, urine
testing | 16 | | materials, syringes, and needles used by diabetics, for human | 17 | | use,
when purchased for use by a person receiving medical | 18 | | assistance under
Article V of the Illinois Public Aid Code who | 19 | | resides in a licensed
long-term care facility, as defined in | 20 | | the Nursing Home Care Act, or in a licensed facility as defined | 21 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 22 | | Specialized Mental Health Rehabilitation Act of 2013.
| 23 | | (14) Semen used for artificial insemination of livestock | 24 | | for direct
agricultural production.
| 25 | | (15) Horses, or interests in horses, registered with and | 26 | | meeting the
requirements of any of the
Arabian Horse Club |
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| 1 | | Registry of America, Appaloosa Horse Club, American Quarter
| 2 | | Horse Association, United States
Trotting Association, or | 3 | | Jockey Club, as appropriate, used for
purposes of breeding or | 4 | | racing for prizes. This item (15) is exempt from the provisions | 5 | | of Section 3-55, and the exemption provided for under this item | 6 | | (15) applies for all periods beginning May 30, 1995, but no | 7 | | claim for credit or refund is allowed on or after January 1, | 8 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 9 | | paid during the period beginning May 30, 2000 and ending on | 10 | | January 1, 2008 (the effective date of Public Act 95-88).
| 11 | | (16) Computers and communications equipment utilized for | 12 | | any
hospital
purpose
and equipment used in the diagnosis,
| 13 | | analysis, or treatment of hospital patients sold to a lessor | 14 | | who leases the
equipment, under a lease of one year or longer | 15 | | executed or in effect at the
time of the purchase, to a
| 16 | | hospital
that has been issued an active tax exemption | 17 | | identification number by the
Department under Section 1g of the | 18 | | Retailers' Occupation Tax Act.
| 19 | | (17) Personal property sold to a lessor who leases the
| 20 | | property, under a
lease of one year or longer executed or in | 21 | | effect at the time of the purchase,
to a governmental body
that | 22 | | has been issued an active tax exemption identification number | 23 | | by the
Department under Section 1g of the Retailers' Occupation | 24 | | Tax Act.
| 25 | | (18) Beginning with taxable years ending on or after | 26 | | December
31, 1995
and
ending with taxable years ending on or |
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| 1 | | before December 31, 2004,
personal property that is
donated for | 2 | | disaster relief to be used in a State or federally declared
| 3 | | disaster area in Illinois or bordering Illinois by a | 4 | | manufacturer or retailer
that is registered in this State to a | 5 | | corporation, society, association,
foundation, or institution | 6 | | that has been issued a sales tax exemption
identification | 7 | | number by the Department that assists victims of the disaster
| 8 | | who reside within the declared disaster area.
| 9 | | (19) Beginning with taxable years ending on or after | 10 | | December
31, 1995 and
ending with taxable years ending on or | 11 | | before December 31, 2004, personal
property that is used in the | 12 | | performance of infrastructure repairs in this
State, including | 13 | | but not limited to municipal roads and streets, access roads,
| 14 | | bridges, sidewalks, waste disposal systems, water and sewer | 15 | | line extensions,
water distribution and purification | 16 | | facilities, storm water drainage and
retention facilities, and | 17 | | sewage treatment facilities, resulting from a State
or | 18 | | federally declared disaster in Illinois or bordering Illinois | 19 | | when such
repairs are initiated on facilities located in the | 20 | | declared disaster area
within 6 months after the disaster.
| 21 | | (20) Beginning July 1, 1999, game or game birds sold at a | 22 | | "game breeding
and
hunting preserve area" as that term is used
| 23 | | in the
Wildlife Code. This paragraph is exempt from the | 24 | | provisions
of
Section 3-55.
| 25 | | (21) A motor vehicle, as that term is defined in Section | 26 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
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| 1 | | corporation, limited liability
company, society, association, | 2 | | foundation, or institution that is determined by
the Department | 3 | | to be organized and operated exclusively for educational
| 4 | | purposes. For purposes of this exemption, "a corporation, | 5 | | limited liability
company, society, association, foundation, | 6 | | or institution organized and
operated
exclusively for | 7 | | educational purposes" means all tax-supported public schools,
| 8 | | private schools that offer systematic instruction in useful | 9 | | branches of
learning by methods common to public schools and | 10 | | that compare favorably in
their scope and intensity with the | 11 | | course of study presented in tax-supported
schools, and | 12 | | vocational or technical schools or institutes organized and
| 13 | | operated exclusively to provide a course of study of not less | 14 | | than 6 weeks
duration and designed to prepare individuals to | 15 | | follow a trade or to pursue a
manual, technical, mechanical, | 16 | | industrial, business, or commercial
occupation.
| 17 | | (22) Beginning January 1, 2000, personal property, | 18 | | including
food,
purchased through fundraising
events for the | 19 | | benefit of
a public or private elementary or
secondary school, | 20 | | a group of those schools, or one or more school
districts if | 21 | | the events are
sponsored by an entity recognized by the school | 22 | | district that consists
primarily of volunteers and includes
| 23 | | parents and teachers of the school children. This paragraph | 24 | | does not apply
to fundraising
events (i) for the benefit of | 25 | | private home instruction or (ii)
for which the fundraising | 26 | | entity purchases the personal property sold at
the events from |
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| 1 | | another individual or entity that sold the property for the
| 2 | | purpose of resale by the fundraising entity and that
profits | 3 | | from the sale to the
fundraising entity. This paragraph is | 4 | | exempt
from the provisions
of Section 3-55.
| 5 | | (23) Beginning January 1, 2000
and through December 31, | 6 | | 2001, new or used automatic vending
machines that prepare and | 7 | | serve hot food and beverages, including coffee, soup,
and
other | 8 | | items, and replacement parts for these machines.
Beginning | 9 | | January 1,
2002 and through June 30, 2003, machines and parts | 10 | | for
machines used in commercial, coin-operated amusement
and | 11 | | vending business if a use or occupation tax is paid on the | 12 | | gross receipts
derived from
the use of the commercial, | 13 | | coin-operated amusement and vending machines.
This paragraph | 14 | | is exempt from the provisions of Section 3-55.
| 15 | | (24) Beginning
on the effective date of this amendatory Act | 16 | | of the 92nd General Assembly,
computers and communications | 17 | | equipment
utilized for any hospital purpose and equipment used | 18 | | in the diagnosis,
analysis, or treatment of hospital patients | 19 | | sold to a lessor who leases the
equipment, under a lease of one | 20 | | year or longer executed or in effect at the
time of the | 21 | | purchase, to a hospital that has been issued an active tax
| 22 | | exemption identification number by the Department under | 23 | | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 24 | | is exempt from the provisions of
Section 3-55.
| 25 | | (25) Beginning
on the effective date of this amendatory Act | 26 | | of the 92nd General Assembly,
personal property sold to a |
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| 1 | | lessor who
leases the property, under a lease of one year or | 2 | | longer executed or in effect
at the time of the purchase, to a | 3 | | governmental body that has been issued an
active tax exemption | 4 | | identification number by the Department under Section 1g
of the | 5 | | Retailers' Occupation Tax Act. This paragraph is exempt from | 6 | | the
provisions of Section 3-55.
| 7 | | (26) Beginning on January 1, 2002 and through June 30, | 8 | | 2016, and beginning again on the first day of the first month | 9 | | to occur on or after the effective date of this amendatory Act | 10 | | of the 100th General Assembly and through June 30, 2021, | 11 | | tangible personal property
purchased
from an Illinois retailer | 12 | | by a taxpayer engaged in centralized purchasing
activities in | 13 | | Illinois who will, upon receipt of the property in Illinois,
| 14 | | temporarily store the property in Illinois (i) for the purpose | 15 | | of subsequently
transporting it outside this State for use or | 16 | | consumption thereafter solely
outside this State or (ii) for | 17 | | the purpose of being processed, fabricated, or
manufactured | 18 | | into, attached to, or incorporated into other tangible personal
| 19 | | property to be transported outside this State and thereafter | 20 | | used or consumed
solely outside this State. The Director of | 21 | | Revenue shall, pursuant to rules
adopted in accordance with the | 22 | | Illinois Administrative Procedure Act, issue a
permit to any | 23 | | taxpayer in good standing with the Department who is eligible | 24 | | for
the exemption under this paragraph (26). The permit issued | 25 | | under
this paragraph (26) shall authorize the holder, to the | 26 | | extent and
in the manner specified in the rules adopted under |
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| 1 | | this Act, to purchase
tangible personal property from a | 2 | | retailer exempt from the taxes imposed by
this Act. Taxpayers | 3 | | shall maintain all necessary books and records to
substantiate | 4 | | the use and consumption of all such tangible personal property
| 5 | | outside of the State of Illinois.
| 6 | | (27) Beginning January 1, 2008, tangible personal property | 7 | | used in the construction or maintenance of a community water | 8 | | supply, as defined under Section 3.145 of the Environmental | 9 | | Protection Act, that is operated by a not-for-profit | 10 | | corporation that holds a valid water supply permit issued under | 11 | | Title IV of the Environmental Protection Act. This paragraph is | 12 | | exempt from the provisions of Section 3-55.
| 13 | | (28) Tangible personal property sold to a | 14 | | public-facilities corporation, as described in Section | 15 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 16 | | constructing or furnishing a municipal convention hall, but | 17 | | only if the legal title to the municipal convention hall is | 18 | | transferred to the municipality without any further | 19 | | consideration by or on behalf of the municipality at the time | 20 | | of the completion of the municipal convention hall or upon the | 21 | | retirement or redemption of any bonds or other debt instruments | 22 | | issued by the public-facilities corporation in connection with | 23 | | the development of the municipal convention hall. This | 24 | | exemption includes existing public-facilities corporations as | 25 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 26 | | This paragraph is exempt from the provisions of Section 3-55. |
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| 1 | | (29) Beginning January 1, 2010, materials, parts, | 2 | | equipment, components, and furnishings incorporated into or | 3 | | upon an aircraft as part of the modification, refurbishment, | 4 | | completion, replacement, repair, or maintenance of the | 5 | | aircraft. This exemption includes consumable supplies used in | 6 | | the modification, refurbishment, completion, replacement, | 7 | | repair, and maintenance of aircraft, but excludes any | 8 | | materials, parts, equipment, components, and consumable | 9 | | supplies used in the modification, replacement, repair, and | 10 | | maintenance of aircraft engines or power plants, whether such | 11 | | engines or power plants are installed or uninstalled upon any | 12 | | such aircraft. "Consumable supplies" include, but are not | 13 | | limited to, adhesive, tape, sandpaper, general purpose | 14 | | lubricants, cleaning solution, latex gloves, and protective | 15 | | films. This exemption applies only to the transfer of | 16 | | qualifying tangible personal property incident to the | 17 | | modification, refurbishment, completion, replacement, repair, | 18 | | or maintenance of an aircraft by persons who (i) hold an Air | 19 | | Agency Certificate and are empowered to operate an approved | 20 | | repair station by the Federal Aviation Administration, (ii) | 21 | | have a Class IV Rating, and (iii) conduct operations in | 22 | | accordance with Part 145 of the Federal Aviation Regulations. | 23 | | The exemption does not include aircraft operated by a | 24 | | commercial air carrier providing scheduled passenger air | 25 | | service pursuant to authority issued under Part 121 or Part 129 | 26 | | of the Federal Aviation Regulations. The changes made to this |
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| 1 | | paragraph (29) by Public Act 98-534 are declarative of existing | 2 | | law. | 3 | | (30) Beginning January 1, 2017, menstrual pads, tampons, | 4 | | and menstrual cups. | 5 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 6 | | 100-22, eff. 7-6-17.)
| 7 | | Section 20. The Retailers' Occupation Tax Act is amended by | 8 | | changing Section 2-5 as follows:
| 9 | | (35 ILCS 120/2-5)
| 10 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 11 | | sale of
the following tangible personal property are exempt | 12 | | from the tax imposed
by this Act:
| 13 | | (1) Farm chemicals.
| 14 | | (2) Farm machinery and equipment, both new and used, | 15 | | including that
manufactured on special order, certified by | 16 | | the purchaser to be used
primarily for production | 17 | | agriculture or State or federal agricultural
programs, | 18 | | including individual replacement parts for the machinery | 19 | | and
equipment, including machinery and equipment purchased | 20 | | for lease,
and including implements of husbandry defined in | 21 | | Section 1-130 of
the Illinois Vehicle Code, farm machinery | 22 | | and agricultural chemical and
fertilizer spreaders, and | 23 | | nurse wagons required to be registered
under Section 3-809 | 24 | | of the Illinois Vehicle Code,
but
excluding other motor |
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| 1 | | vehicles required to be registered under the Illinois
| 2 | | Vehicle Code.
Horticultural polyhouses or hoop houses used | 3 | | for propagating, growing, or
overwintering plants shall be | 4 | | considered farm machinery and equipment under
this item | 5 | | (2).
Agricultural chemical tender tanks and dry boxes shall | 6 | | include units sold
separately from a motor vehicle required | 7 | | to be licensed and units sold mounted
on a motor vehicle | 8 | | required to be licensed, if the selling price of the tender
| 9 | | is separately stated.
| 10 | | Farm machinery and equipment shall include precision | 11 | | farming equipment
that is
installed or purchased to be | 12 | | installed on farm machinery and equipment
including, but | 13 | | not limited to, tractors, harvesters, sprayers, planters,
| 14 | | seeders, or spreaders.
Precision farming equipment | 15 | | includes, but is not limited to,
soil testing sensors, | 16 | | computers, monitors, software, global positioning
and | 17 | | mapping systems, and other such equipment.
| 18 | | Farm machinery and equipment also includes computers, | 19 | | sensors, software, and
related equipment used primarily in | 20 | | the
computer-assisted operation of production agriculture | 21 | | facilities, equipment,
and activities such as, but
not | 22 | | limited to,
the collection, monitoring, and correlation of
| 23 | | animal and crop data for the purpose of
formulating animal | 24 | | diets and agricultural chemicals. This item (2) is exempt
| 25 | | from the provisions of
Section 2-70.
| 26 | | (3) Until July 1, 2003, distillation machinery and |
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| 1 | | equipment, sold as a
unit or kit,
assembled or installed by | 2 | | the retailer, certified by the user to be used
only for the | 3 | | production of ethyl alcohol that will be used for | 4 | | consumption
as motor fuel or as a component of motor fuel | 5 | | for the personal use of the
user, and not subject to sale | 6 | | or resale.
| 7 | | (4) Until July 1, 2003 and beginning again September 1, | 8 | | 2004 through August 30, 2014, graphic arts machinery and | 9 | | equipment, including
repair and
replacement parts, both | 10 | | new and used, and including that manufactured on
special | 11 | | order or purchased for lease, certified by the purchaser to | 12 | | be used
primarily for graphic arts production.
Equipment | 13 | | includes chemicals or
chemicals acting as catalysts but | 14 | | only if
the chemicals or chemicals acting as catalysts | 15 | | effect a direct and immediate
change upon a
graphic arts | 16 | | product. Beginning on July 1, 2017, graphic arts machinery | 17 | | and equipment is included in the manufacturing and | 18 | | assembling machinery and equipment exemption under | 19 | | paragraph (14).
| 20 | | (5) A motor vehicle that is used for automobile | 21 | | renting, as defined in the Automobile Renting Occupation | 22 | | and Use Tax Act. This paragraph is exempt from
the | 23 | | provisions of Section 2-70.
| 24 | | (6) Personal property sold by a teacher-sponsored | 25 | | student organization
affiliated with an elementary or | 26 | | secondary school located in Illinois.
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| 1 | | (7) Until July 1, 2003, proceeds of that portion of the | 2 | | selling price of
a passenger car the
sale of which is | 3 | | subject to the Replacement Vehicle Tax.
| 4 | | (8) Personal property sold to an Illinois county fair | 5 | | association for
use in conducting, operating, or promoting | 6 | | the county fair.
| 7 | | (9) Personal property sold to a not-for-profit arts
or | 8 | | cultural organization that establishes, by proof required | 9 | | by the Department
by
rule, that it has received an | 10 | | exemption under Section 501(c)(3) of the
Internal Revenue | 11 | | Code and that is organized and operated primarily for the
| 12 | | presentation
or support of arts or cultural programming, | 13 | | activities, or services. These
organizations include, but | 14 | | are not limited to, music and dramatic arts
organizations | 15 | | such as symphony orchestras and theatrical groups, arts and
| 16 | | cultural service organizations, local arts councils, | 17 | | visual arts organizations,
and media arts organizations.
| 18 | | On and after July 1, 2001 ( the effective date of Public Act | 19 | | 92-35) this amendatory Act of the 92nd General
Assembly , | 20 | | however, an entity otherwise eligible for this exemption | 21 | | shall not
make tax-free purchases unless it has an active | 22 | | identification number issued by
the Department.
| 23 | | (10) Personal property sold by a corporation, society, | 24 | | association,
foundation, institution, or organization, | 25 | | other than a limited liability
company, that is organized | 26 | | and operated as a not-for-profit service enterprise
for the |
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| 1 | | benefit of persons 65 years of age or older if the personal | 2 | | property
was not purchased by the enterprise for the | 3 | | purpose of resale by the
enterprise.
| 4 | | (11) Personal property sold to a governmental body, to | 5 | | a corporation,
society, association, foundation, or | 6 | | institution organized and operated
exclusively for | 7 | | charitable, religious, or educational purposes, or to a
| 8 | | not-for-profit corporation, society, association, | 9 | | foundation, institution,
or organization that has no | 10 | | compensated officers or employees and that is
organized and | 11 | | operated primarily for the recreation of persons 55 years | 12 | | of
age or older. A limited liability company may qualify | 13 | | for the exemption under
this paragraph only if the limited | 14 | | liability company is organized and operated
exclusively | 15 | | for educational purposes. On and after July 1, 1987, | 16 | | however, no
entity otherwise eligible for this exemption | 17 | | shall make tax-free purchases
unless it has an active | 18 | | identification number issued by the Department.
| 19 | | (12) (Blank).
| 20 | | (12-5) On and after July 1, 2003 and through June 30, | 21 | | 2004, motor vehicles of the second division
with a gross | 22 | | vehicle weight in excess of 8,000 pounds
that
are
subject | 23 | | to the commercial distribution fee imposed under Section | 24 | | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | 25 | | 2004 and through June 30, 2005, the use in this State of | 26 | | motor vehicles of the second division: (i) with a gross |
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| 1 | | vehicle weight rating in excess of 8,000 pounds; (ii) that | 2 | | are subject to the commercial distribution fee imposed | 3 | | under Section 3-815.1 of the Illinois Vehicle Code; and | 4 | | (iii) that are primarily used for commercial purposes. | 5 | | Through June 30, 2005, this
exemption applies to repair and | 6 | | replacement parts added
after the
initial purchase of such | 7 | | a motor vehicle if that motor vehicle is used in a
manner | 8 | | that
would qualify for the rolling stock exemption | 9 | | otherwise provided for in this
Act. For purposes of this | 10 | | paragraph, "used for commercial purposes" means the | 11 | | transportation of persons or property in furtherance of any | 12 | | commercial or industrial enterprise whether for-hire or | 13 | | not.
| 14 | | (13) Proceeds from sales to owners, lessors, or
| 15 | | shippers of
tangible personal property that is utilized by | 16 | | interstate carriers for
hire for use as rolling stock | 17 | | moving in interstate commerce
and equipment operated by a | 18 | | telecommunications provider, licensed as a
common carrier | 19 | | by the Federal Communications Commission, which is
| 20 | | permanently installed in or affixed to aircraft moving in | 21 | | interstate commerce.
| 22 | | (14) Machinery and equipment that will be used by the | 23 | | purchaser, or a
lessee of the purchaser, primarily in the | 24 | | process of manufacturing or
assembling tangible personal | 25 | | property for wholesale or retail sale or
lease, whether the | 26 | | sale or lease is made directly by the manufacturer or by
|
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| 1 | | some other person, whether the materials used in the | 2 | | process are owned by
the manufacturer or some other person, | 3 | | or whether the sale or lease is made
apart from or as an | 4 | | incident to the seller's engaging in the service
occupation | 5 | | of producing machines, tools, dies, jigs, patterns, | 6 | | gauges, or
other similar items of no commercial value on | 7 | | special order for a particular
purchaser. The exemption | 8 | | provided by this paragraph (14) does not include machinery | 9 | | and equipment used in (i) the generation of electricity for | 10 | | wholesale or retail sale; (ii) the generation or treatment | 11 | | of natural or artificial gas for wholesale or retail sale | 12 | | that is delivered to customers through pipes, pipelines, or | 13 | | mains; or (iii) the treatment of water for wholesale or | 14 | | retail sale that is delivered to customers through pipes, | 15 | | pipelines, or mains. The provisions of Public Act 98-583 | 16 | | are declaratory of existing law as to the meaning and scope | 17 | | of this exemption. Beginning on July 1, 2017, the exemption | 18 | | provided by this paragraph (14) includes, but is not | 19 | | limited to, graphic arts machinery and equipment, as | 20 | | defined in paragraph (4) of this Section.
| 21 | | (15) Proceeds of mandatory service charges separately | 22 | | stated on
customers' bills for purchase and consumption of | 23 | | food and beverages, to the
extent that the proceeds of the | 24 | | service charge are in fact turned over as
tips or as a | 25 | | substitute for tips to the employees who participate | 26 | | directly
in preparing, serving, hosting or cleaning up the |
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| 1 | | food or beverage function
with respect to which the service | 2 | | charge is imposed.
| 3 | | (16) Petroleum products sold to a purchaser if the | 4 | | seller
is prohibited by federal law from charging tax to | 5 | | the purchaser.
| 6 | | (17) Tangible personal property sold to a common | 7 | | carrier by rail or
motor that
receives the physical | 8 | | possession of the property in Illinois and that
transports | 9 | | the property, or shares with another common carrier in the
| 10 | | transportation of the property, out of Illinois on a | 11 | | standard uniform bill
of lading showing the seller of the | 12 | | property as the shipper or consignor of
the property to a | 13 | | destination outside Illinois, for use outside Illinois.
| 14 | | (18) Legal tender, currency, medallions, or gold or | 15 | | silver coinage
issued by the State of Illinois, the | 16 | | government of the United States of
America, or the | 17 | | government of any foreign country, and bullion.
| 18 | | (19) Until July 1 , 2003, oil field exploration, | 19 | | drilling, and production
equipment, including
(i) rigs and | 20 | | parts of rigs, rotary rigs, cable tool
rigs, and workover | 21 | | rigs, (ii) pipe and tubular goods, including casing and
| 22 | | drill strings, (iii) pumps and pump-jack units, (iv) | 23 | | storage tanks and flow
lines, (v) any individual | 24 | | replacement part for oil field exploration,
drilling, and | 25 | | production equipment, and (vi) machinery and equipment | 26 | | purchased
for lease; but
excluding motor vehicles required |
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| 1 | | to be registered under the Illinois
Vehicle Code.
| 2 | | (20) Photoprocessing machinery and equipment, | 3 | | including repair and
replacement parts, both new and used, | 4 | | including that manufactured on
special order, certified by | 5 | | the purchaser to be used primarily for
photoprocessing, and | 6 | | including photoprocessing machinery and equipment
| 7 | | purchased for lease.
| 8 | | (21) Coal and aggregate exploration, mining, | 9 | | off-highway hauling,
processing,
maintenance, and | 10 | | reclamation equipment, including
replacement parts and | 11 | | equipment, and including
equipment purchased for lease, | 12 | | but excluding motor vehicles required to be
registered | 13 | | under the Illinois Vehicle Code. The changes made to this | 14 | | Section by Public Act 97-767 apply on and after July 1, | 15 | | 2003, but no claim for credit or refund is allowed on or | 16 | | after August 16, 2013 (the effective date of Public Act | 17 | | 98-456)
for such taxes paid during the period beginning | 18 | | July 1, 2003 and ending on August 16, 2013 (the effective | 19 | | date of Public Act 98-456).
| 20 | | (22) Until June 30, 2013, fuel and petroleum products | 21 | | sold to or used by an air carrier,
certified by the carrier | 22 | | to be used for consumption, shipment, or storage
in the | 23 | | conduct of its business as an air common carrier, for a | 24 | | flight
destined for or returning from a location or | 25 | | locations
outside the United States without regard to | 26 | | previous or subsequent domestic
stopovers.
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| 1 | | Beginning July 1, 2013, fuel and petroleum products | 2 | | sold to or used by an air carrier, certified by the carrier | 3 | | to be used for consumption, shipment, or storage in the | 4 | | conduct of its business as an air common carrier, for a | 5 | | flight that (i) is engaged in foreign trade or is engaged | 6 | | in trade between the United States and any of its | 7 | | possessions and (ii) transports at least one individual or | 8 | | package for hire from the city of origination to the city | 9 | | of final destination on the same aircraft, without regard | 10 | | to a change in the flight number of that aircraft. | 11 | | (23) A transaction in which the purchase order is | 12 | | received by a florist
who is located outside Illinois, but | 13 | | who has a florist located in Illinois
deliver the property | 14 | | to the purchaser or the purchaser's donee in Illinois.
| 15 | | (24) Fuel consumed or used in the operation of ships, | 16 | | barges, or vessels
that are used primarily in or for the | 17 | | transportation of property or the
conveyance of persons for | 18 | | hire on rivers bordering on this State if the
fuel is | 19 | | delivered by the seller to the purchaser's barge, ship, or | 20 | | vessel
while it is afloat upon that bordering river.
| 21 | | (25) Except as provided in item (25-5) of this Section, | 22 | | a
motor vehicle sold in this State to a nonresident even | 23 | | though the
motor vehicle is delivered to the nonresident in | 24 | | this State, if the motor
vehicle is not to be titled in | 25 | | this State, and if a drive-away permit
is issued to the | 26 | | motor vehicle as provided in Section 3-603 of the Illinois
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| 1 | | Vehicle Code or if the nonresident purchaser has vehicle | 2 | | registration
plates to transfer to the motor vehicle upon | 3 | | returning to his or her home
state. The issuance of the | 4 | | drive-away permit or having
the
out-of-state registration | 5 | | plates to be transferred is prima facie evidence
that the | 6 | | motor vehicle will not be titled in this State.
| 7 | | (25-5) The exemption under item (25) does not apply if | 8 | | the state in which the motor vehicle will be titled does | 9 | | not allow a reciprocal exemption for a motor vehicle sold | 10 | | and delivered in that state to an Illinois resident but | 11 | | titled in Illinois. The tax collected under this Act on the | 12 | | sale of a motor vehicle in this State to a resident of | 13 | | another state that does not allow a reciprocal exemption | 14 | | shall be imposed at a rate equal to the state's rate of tax | 15 | | on taxable property in the state in which the purchaser is | 16 | | a resident, except that the tax shall not exceed the tax | 17 | | that would otherwise be imposed under this Act. At the time | 18 | | of the sale, the purchaser shall execute a statement, | 19 | | signed under penalty of perjury, of his or her intent to | 20 | | title the vehicle in the state in which the purchaser is a | 21 | | resident within 30 days after the sale and of the fact of | 22 | | the payment to the State of Illinois of tax in an amount | 23 | | equivalent to the state's rate of tax on taxable property | 24 | | in his or her state of residence and shall submit the | 25 | | statement to the appropriate tax collection agency in his | 26 | | or her state of residence. In addition, the retailer must |
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| 1 | | retain a signed copy of the statement in his or her | 2 | | records. Nothing in this item shall be construed to require | 3 | | the removal of the vehicle from this state following the | 4 | | filing of an intent to title the vehicle in the purchaser's | 5 | | state of residence if the purchaser titles the vehicle in | 6 | | his or her state of residence within 30 days after the date | 7 | | of sale. The tax collected under this Act in accordance | 8 | | with this item (25-5) shall be proportionately distributed | 9 | | as if the tax were collected at the 6.25% general rate | 10 | | imposed under this Act.
| 11 | | (25-7) Beginning on July 1, 2007, no tax is imposed | 12 | | under this Act on the sale of an aircraft, as defined in | 13 | | Section 3 of the Illinois Aeronautics Act, if all of the | 14 | | following conditions are met: | 15 | | (1) the aircraft leaves this State within 15 days | 16 | | after the later of either the issuance of the final | 17 | | billing for the sale of the aircraft, or the authorized | 18 | | approval for return to service, completion of the | 19 | | maintenance record entry, and completion of the test | 20 | | flight and ground test for inspection, as required by | 21 | | 14 C.F.R. 91.407; | 22 | | (2) the aircraft is not based or registered in this | 23 | | State after the sale of the aircraft; and | 24 | | (3) the seller retains in his or her books and | 25 | | records and provides to the Department a signed and | 26 | | dated certification from the purchaser, on a form |
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| 1 | | prescribed by the Department, certifying that the | 2 | | requirements of this item (25-7) are met. The | 3 | | certificate must also include the name and address of | 4 | | the purchaser, the address of the location where the | 5 | | aircraft is to be titled or registered, the address of | 6 | | the primary physical location of the aircraft, and | 7 | | other information that the Department may reasonably | 8 | | require. | 9 | | For purposes of this item (25-7): | 10 | | "Based in this State" means hangared, stored, or | 11 | | otherwise used, excluding post-sale customizations as | 12 | | defined in this Section, for 10 or more days in each | 13 | | 12-month period immediately following the date of the sale | 14 | | of the aircraft. | 15 | | "Registered in this State" means an aircraft | 16 | | registered with the Department of Transportation, | 17 | | Aeronautics Division, or titled or registered with the | 18 | | Federal Aviation Administration to an address located in | 19 | | this State. | 20 | | This paragraph (25-7) is exempt from the provisions
of
| 21 | | Section 2-70.
| 22 | | (26) Semen used for artificial insemination of | 23 | | livestock for direct
agricultural production.
| 24 | | (27) Horses, or interests in horses, registered with | 25 | | and meeting the
requirements of any of the
Arabian Horse | 26 | | Club Registry of America, Appaloosa Horse Club, American |
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| 1 | | Quarter
Horse Association, United States
Trotting | 2 | | Association, or Jockey Club, as appropriate, used for
| 3 | | purposes of breeding or racing for prizes. This item (27) | 4 | | is exempt from the provisions of Section 2-70, and the | 5 | | exemption provided for under this item (27) applies for all | 6 | | periods beginning May 30, 1995, but no claim for credit or | 7 | | refund is allowed on or after January 1, 2008 (the | 8 | | effective date of Public Act 95-88)
for such taxes paid | 9 | | during the period beginning May 30, 2000 and ending on | 10 | | January 1, 2008 (the effective date of Public Act 95-88).
| 11 | | (28) Computers and communications equipment utilized | 12 | | for any
hospital
purpose
and equipment used in the | 13 | | diagnosis,
analysis, or treatment of hospital patients | 14 | | sold to a lessor who leases the
equipment, under a lease of | 15 | | one year or longer executed or in effect at the
time of the | 16 | | purchase, to a
hospital
that has been issued an active tax | 17 | | exemption identification number by the
Department under | 18 | | Section 1g of this Act.
| 19 | | (29) Personal property sold to a lessor who leases the
| 20 | | property, under a
lease of one year or longer executed or | 21 | | in effect at the time of the purchase,
to a governmental | 22 | | body
that has been issued an active tax exemption | 23 | | identification number by the
Department under Section 1g of | 24 | | this Act.
| 25 | | (30) 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
| 2 | | donated for disaster relief to be used in a State or | 3 | | federally declared
disaster area in Illinois or bordering | 4 | | Illinois by a manufacturer or retailer
that is registered | 5 | | in this State to a corporation, society, association,
| 6 | | foundation, or institution that has been issued a sales tax | 7 | | exemption
identification number by the Department that | 8 | | assists victims of the disaster
who reside within the | 9 | | declared disaster area.
| 10 | | (31) Beginning with taxable years ending on or after | 11 | | December
31, 1995 and
ending with taxable years ending on | 12 | | or before December 31, 2004, personal
property that is used | 13 | | in the performance of infrastructure repairs in this
State, | 14 | | including but not limited to municipal roads and streets, | 15 | | access roads,
bridges, sidewalks, waste disposal systems, | 16 | | water and sewer line extensions,
water distribution and | 17 | | purification facilities, storm water drainage and
| 18 | | retention facilities, and sewage treatment facilities, | 19 | | resulting from a State
or federally declared disaster in | 20 | | Illinois or bordering Illinois when such
repairs are | 21 | | initiated on facilities located in the declared disaster | 22 | | area
within 6 months after the disaster.
| 23 | | (32) Beginning July 1, 1999, game or game birds sold at | 24 | | a "game breeding
and
hunting preserve area" as that term is | 25 | | used
in the
Wildlife Code. This paragraph is exempt from | 26 | | the provisions
of
Section 2-70.
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| 1 | | (33) A motor vehicle, as that term is defined in | 2 | | Section 1-146
of the
Illinois Vehicle Code, that is donated | 3 | | to a corporation, limited liability
company, society, | 4 | | association, foundation, or institution that is determined | 5 | | by
the Department to be organized and operated exclusively | 6 | | for educational
purposes. For purposes of this exemption, | 7 | | "a corporation, limited liability
company, society, | 8 | | association, foundation, or institution organized and
| 9 | | operated
exclusively for educational purposes" means all | 10 | | tax-supported public schools,
private schools that offer | 11 | | systematic instruction in useful branches of
learning by | 12 | | methods common to public schools and that compare favorably | 13 | | in
their scope and intensity with the course of study | 14 | | presented in tax-supported
schools, and vocational or | 15 | | technical schools or institutes organized and
operated | 16 | | exclusively to provide a course of study of not less than 6 | 17 | | weeks
duration and designed to prepare individuals to | 18 | | follow a trade or to pursue a
manual, technical, | 19 | | mechanical, industrial, business, or commercial
| 20 | | occupation.
| 21 | | (34) Beginning January 1, 2000, personal property, | 22 | | including food, purchased
through fundraising events for | 23 | | the benefit of a public or private elementary or
secondary | 24 | | school, a group of those schools, or one or more school | 25 | | districts if
the events are sponsored by an entity | 26 | | recognized by the school district that
consists primarily |
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| 1 | | of volunteers and includes parents and teachers of the
| 2 | | school children. This paragraph does not apply to | 3 | | fundraising events (i) for
the benefit of private home | 4 | | instruction or (ii) for which the fundraising
entity | 5 | | purchases the personal property sold at the events from | 6 | | another
individual or entity that sold the property for the | 7 | | purpose of resale by the
fundraising entity and that | 8 | | profits from the sale to the fundraising entity.
This | 9 | | paragraph is exempt from the provisions of Section 2-70.
| 10 | | (35) Beginning January 1, 2000 and through December 31, | 11 | | 2001, new or used
automatic vending machines that prepare | 12 | | and serve hot food and beverages,
including coffee, soup, | 13 | | and other items, and replacement parts for these
machines. | 14 | | Beginning January 1, 2002 and through June 30, 2003, | 15 | | machines
and parts for machines used in
commercial, | 16 | | coin-operated amusement and vending business if a use or | 17 | | occupation
tax is paid on the gross receipts derived from | 18 | | the use of the commercial,
coin-operated amusement and | 19 | | vending machines. This paragraph is exempt from
the | 20 | | provisions of Section 2-70.
| 21 | | (35-5) Beginning August 23, 2001 and through June 30, | 22 | | 2016, food for human consumption that is to be consumed off
| 23 | | the premises where it is sold (other than alcoholic | 24 | | beverages, soft drinks,
and food that has been prepared for | 25 | | immediate consumption) and prescription
and | 26 | | nonprescription medicines, drugs, medical appliances, and |
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| 1 | | insulin, urine
testing materials, syringes, and needles | 2 | | used by diabetics, for human use, when
purchased for use by | 3 | | a person receiving medical assistance under Article V of
| 4 | | the Illinois Public Aid Code who resides in a licensed | 5 | | long-term care facility,
as defined in the Nursing Home | 6 | | Care Act, or a licensed facility as defined in the ID/DD | 7 | | Community Care Act, the MC/DD Act, or the Specialized | 8 | | Mental Health Rehabilitation Act of 2013.
| 9 | | (36) Beginning August 2, 2001, computers and | 10 | | communications equipment
utilized for any hospital purpose | 11 | | and equipment used in the diagnosis,
analysis, or treatment | 12 | | of hospital patients sold to a lessor who leases the
| 13 | | equipment, under a lease of one year or longer executed or | 14 | | in effect at the
time of the purchase, to a hospital that | 15 | | has been issued an active tax
exemption identification | 16 | | number by the Department under Section 1g of this Act.
This | 17 | | paragraph is exempt from the provisions of Section 2-70.
| 18 | | (37) Beginning August 2, 2001, personal property sold | 19 | | to a lessor who
leases the property, under a lease of one | 20 | | year or longer executed or in effect
at the time of the | 21 | | purchase, to a governmental body that has been issued an
| 22 | | active tax exemption identification number by the | 23 | | Department under Section 1g
of this Act. This paragraph is | 24 | | exempt from the provisions of Section 2-70.
| 25 | | (38) Beginning on January 1, 2002 and through June 30, | 26 | | 2016, and beginning again on the first day of the first |
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| 1 | | month to occur on or after the effective date of this | 2 | | amendatory Act of the 100th General Assembly and through | 3 | | June 30, 2021, tangible personal property purchased
from an | 4 | | Illinois retailer by a taxpayer engaged in centralized | 5 | | purchasing
activities in Illinois who will, upon receipt of | 6 | | the property in Illinois,
temporarily store the property in | 7 | | Illinois (i) for the purpose of subsequently
transporting | 8 | | it outside this State for use or consumption thereafter | 9 | | solely
outside this State or (ii) for the purpose of being | 10 | | processed, fabricated, or
manufactured into, attached to, | 11 | | or incorporated into other tangible personal
property to be | 12 | | transported outside this State and thereafter used or | 13 | | consumed
solely outside this State. The Director of Revenue | 14 | | shall, pursuant to rules
adopted in accordance with the | 15 | | Illinois Administrative Procedure Act, issue a
permit to | 16 | | any taxpayer in good standing with the Department who is | 17 | | eligible for
the exemption under this paragraph (38). The | 18 | | permit issued under
this paragraph (38) shall authorize the | 19 | | holder, to the extent and
in the manner specified in the | 20 | | rules adopted under this Act, to purchase
tangible personal | 21 | | property from a retailer exempt from the taxes imposed by
| 22 | | this Act. Taxpayers shall maintain all necessary books and | 23 | | records to
substantiate the use and consumption of all such | 24 | | tangible personal property
outside of the State of | 25 | | Illinois.
| 26 | | (39) Beginning January 1, 2008, tangible personal |
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| 1 | | property used in the construction or maintenance of a | 2 | | community water supply, as defined under Section 3.145 of | 3 | | the Environmental Protection Act, that is operated by a | 4 | | not-for-profit corporation that holds a valid water supply | 5 | | permit issued under Title IV of the Environmental | 6 | | Protection Act. This paragraph is exempt from the | 7 | | provisions of Section 2-70.
| 8 | | (40) Beginning January 1, 2010, materials, parts, | 9 | | equipment, components, and furnishings incorporated into | 10 | | or upon an aircraft as part of the modification, | 11 | | refurbishment, completion, replacement, repair, or | 12 | | maintenance of the aircraft. This exemption includes | 13 | | consumable supplies used in the modification, | 14 | | refurbishment, completion, replacement, repair, and | 15 | | maintenance of aircraft, but excludes any materials, | 16 | | parts, equipment, components, and consumable supplies used | 17 | | in the modification, replacement, repair, and maintenance | 18 | | of aircraft engines or power plants, whether such engines | 19 | | or power plants are installed or uninstalled upon any such | 20 | | aircraft. "Consumable supplies" include, but are not | 21 | | limited to, adhesive, tape, sandpaper, general purpose | 22 | | lubricants, cleaning solution, latex gloves, and | 23 | | protective films. This exemption applies only to the sale | 24 | | of qualifying tangible personal property to persons who | 25 | | modify, refurbish, complete, replace, or maintain an | 26 | | aircraft and who (i) hold an Air Agency Certificate and are |
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| 1 | | empowered to operate an approved repair station by the | 2 | | Federal Aviation Administration, (ii) have a Class IV | 3 | | Rating, and (iii) conduct operations in accordance with | 4 | | Part 145 of the Federal Aviation Regulations. The exemption | 5 | | does not include aircraft operated by a commercial air | 6 | | carrier providing scheduled passenger air service pursuant | 7 | | to authority issued under Part 121 or Part 129 of the | 8 | | Federal Aviation Regulations. The changes made to this | 9 | | paragraph (40) by Public Act 98-534 are declarative of | 10 | | existing law. | 11 | | (41) Tangible personal property sold to 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, | 15 | | but only if the legal title to the municipal convention | 16 | | hall is transferred to the municipality without any further | 17 | | consideration by or on behalf of the municipality at the | 18 | | time of the completion of the municipal convention hall or | 19 | | upon the retirement or redemption of any bonds or other | 20 | | debt instruments issued by the public-facilities | 21 | | corporation in connection with the development of the | 22 | | municipal convention hall. This exemption includes | 23 | | existing public-facilities corporations as provided in | 24 | | Section 11-65-25 of the Illinois Municipal Code. This | 25 | | paragraph is exempt from the provisions of Section 2-70. | 26 | | (42) Beginning January 1, 2017, menstrual pads, |
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| 1 | | tampons, and menstrual cups. | 2 | | (43) Merchandise that is subject to the Rental Purchase | 3 | | Agreement Occupation and Use Tax. The purchaser must | 4 | | certify that the item is purchased to be rented subject to | 5 | | a rental purchase agreement, as defined in the Rental | 6 | | Purchase Agreement Act, and provide proof of registration | 7 | | under the Rental Purchase Agreement Occupation and Use Tax | 8 | | Act. This paragraph is exempt from the provisions of | 9 | | Section 2-70. | 10 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 11 | | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | 12 | | 1-1-18; revised 9-26-17.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.".
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