Full Text of HB0033 94th General Assembly
HB0033 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0033
Introduced 12/15/2004, by Rep. Robert W. Pritchard SYNOPSIS AS INTRODUCED: |
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35 ILCS 105/3-5 |
from Ch. 120, par. 439.3-5 |
35 ILCS 105/3-5.5 |
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35 ILCS 105/3-10 |
from Ch. 120, par. 439.3-10 |
35 ILCS 110/3-5 |
from Ch. 120, par. 439.33-5 |
35 ILCS 110/3-5.5 |
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35 ILCS 110/3-10 |
from Ch. 120, par. 439.33-10 |
35 ILCS 115/3-5 |
from Ch. 120, par. 439.103-5 |
35 ILCS 115/3-5.5 |
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35 ILCS 115/3-10 |
from Ch. 120, par. 439.103-10 |
35 ILCS 120/2-5 |
from Ch. 120, par. 441-5 |
35 ILCS 120/2-5.5 |
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35 ILCS 120/2-10 |
from Ch. 120, par. 441-10 |
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Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides for tax exemptions for: (i) certain users of ostomy supplies who reside in licensed long-term care facilities and (ii) not-for-profit sellers of ostomy supplies. Provides that the rate of tax on ostomy supplies is 1% (instead of 6.25%).
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A BILL FOR
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HB0033 |
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| AN ACT concerning taxes.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Use Tax Act is amended by changing Sections | 5 |
| 3-5, 3-5.5, and 3-10 as follows:
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| (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
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| Sec. 3-5. Exemptions. Use of the following tangible | 8 |
| personal property
is exempt from the tax imposed by this Act:
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| (1) Personal property purchased from a corporation, | 10 |
| society, association,
foundation, institution, or | 11 |
| organization, other than a limited liability
company, that is | 12 |
| organized and operated as a not-for-profit service enterprise
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| for the benefit of persons 65 years of age or older if the | 14 |
| personal property
was not purchased by the enterprise for the | 15 |
| purpose of resale by the
enterprise.
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| (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.
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| (3) Personal property purchased by a not-for-profit
arts or | 20 |
| cultural organization that establishes, by proof required by | 21 |
| the
Department by
rule, that it has received an exemption under | 22 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 23 |
| organized and operated primarily for the
presentation
or | 24 |
| support of arts or cultural programming, activities, or | 25 |
| services. These
organizations include, but are not limited to, | 26 |
| music and dramatic arts
organizations such as symphony | 27 |
| orchestras and theatrical groups, arts and
cultural service | 28 |
| organizations, local arts councils, visual arts organizations,
| 29 |
| and media arts organizations.
On and after the effective date | 30 |
| of this amendatory Act of the 92nd General
Assembly, however, | 31 |
| an entity otherwise eligible for this exemption shall not
make | 32 |
| tax-free purchases unless it has an active identification |
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| number issued by
the Department.
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| (4) Personal property purchased by a governmental body, by | 3 |
| a
corporation, society, association, foundation, or | 4 |
| institution organized and
operated exclusively for charitable, | 5 |
| religious, or educational purposes, or
by a not-for-profit | 6 |
| corporation, society, association, foundation,
institution, or | 7 |
| organization that has no compensated officers or employees
and | 8 |
| that is organized and operated primarily for the recreation of | 9 |
| persons
55 years of age or older. A limited liability company | 10 |
| may qualify for the
exemption under this paragraph only if the | 11 |
| limited liability company is
organized and operated | 12 |
| exclusively for educational purposes. On and after July
1, | 13 |
| 1987, however, no entity otherwise eligible for this exemption | 14 |
| shall make
tax-free purchases unless it has an active exemption | 15 |
| identification number
issued by the Department.
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| (5) Until July 1, 2003, a passenger car that is a | 17 |
| replacement vehicle to
the extent that the
purchase price of | 18 |
| the car is subject to the Replacement Vehicle Tax.
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| (6) Until July 1, 2003 and beginning again on September 1, | 20 |
| 2004, graphic arts machinery and equipment, including
repair | 21 |
| and replacement
parts, both new and used, and including that | 22 |
| manufactured on special order,
certified by the purchaser to be | 23 |
| used primarily for graphic arts production,
and including | 24 |
| machinery and equipment purchased for lease.
Equipment | 25 |
| includes chemicals or chemicals acting as catalysts but only if
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chemicals or chemicals acting as catalysts effect a direct | 27 |
| and immediate change
upon a graphic arts product.
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| (7) Farm chemicals.
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| (8) Legal tender, currency, medallions, or gold or silver | 30 |
| coinage issued by
the State of Illinois, the government of the | 31 |
| United States of America, or the
government of any foreign | 32 |
| country, and bullion.
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| (9) Personal property purchased from a teacher-sponsored | 34 |
| student
organization affiliated with an elementary or | 35 |
| secondary school located in
Illinois.
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| (10) A motor vehicle of the first division, a motor vehicle |
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| of the
second division that is a self-contained motor vehicle | 2 |
| designed or
permanently converted to provide living quarters | 3 |
| for recreational, camping,
or travel use, with direct walk | 4 |
| through to the living quarters from the
driver's seat, or a | 5 |
| motor vehicle of the second division that is of the
van | 6 |
| configuration designed for the transportation of not less than | 7 |
| 7 nor
more than 16 passengers, as defined in Section 1-146 of | 8 |
| the Illinois
Vehicle Code, that is used for automobile renting, | 9 |
| as defined in the
Automobile Renting Occupation and Use Tax | 10 |
| Act.
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| (11) Farm machinery and equipment, both new and used,
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| including that manufactured on special order, certified by the | 13 |
| purchaser
to be used primarily for production agriculture or | 14 |
| State or federal
agricultural programs, including individual | 15 |
| replacement parts for
the machinery and equipment, including | 16 |
| machinery and equipment
purchased
for lease,
and including | 17 |
| implements of husbandry defined in Section 1-130 of
the | 18 |
| Illinois Vehicle Code, farm machinery and agricultural | 19 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 20 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
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| but excluding other motor
vehicles required to be
registered | 22 |
| under the Illinois Vehicle Code.
Horticultural polyhouses or | 23 |
| hoop houses used for propagating, growing, or
overwintering | 24 |
| plants shall be considered farm machinery and equipment under
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| this item (11).
Agricultural chemical tender tanks and dry | 26 |
| boxes shall include units sold
separately from a motor vehicle | 27 |
| required to be licensed and units sold mounted
on a motor | 28 |
| vehicle required to be licensed if the selling price of the | 29 |
| tender
is separately stated.
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| Farm machinery and equipment shall include precision | 31 |
| farming equipment
that is
installed or purchased to be | 32 |
| installed on farm machinery and equipment
including, but not | 33 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 34 |
| or spreaders.
Precision farming equipment includes, but is not | 35 |
| limited to, soil testing
sensors, computers, monitors, | 36 |
| software, global positioning
and mapping systems, and other |
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| such equipment.
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| Farm machinery and equipment also includes computers, | 3 |
| sensors, software, and
related equipment used primarily in the
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| computer-assisted operation of production agriculture | 5 |
| facilities, equipment,
and
activities such as, but not limited | 6 |
| to,
the collection, monitoring, and correlation of
animal and | 7 |
| crop data for the purpose of
formulating animal diets and | 8 |
| agricultural chemicals. This item (11) is exempt
from the | 9 |
| provisions of
Section 3-90.
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| (12) Fuel and petroleum products sold to or used by an air | 11 |
| common
carrier, certified by the carrier to be used for | 12 |
| consumption, shipment, or
storage in the conduct of its | 13 |
| business as an air common carrier, for a
flight destined for or | 14 |
| returning from a location or locations
outside the United | 15 |
| States without regard to previous or subsequent domestic
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| stopovers.
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| (13) Proceeds of mandatory service charges separately
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| stated on customers' bills for the purchase and consumption of | 19 |
| food and
beverages purchased at retail from a retailer, to the | 20 |
| extent that the proceeds
of the service charge are in fact | 21 |
| turned over as tips or as a substitute
for tips to the | 22 |
| employees who participate directly in preparing, serving,
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| hosting or cleaning up the food or beverage function with | 24 |
| respect to which
the service charge is imposed.
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| (14) Until July 1, 2003, oil field exploration, drilling, | 26 |
| and production
equipment,
including (i) rigs and parts of rigs, | 27 |
| rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 28 |
| tubular goods,
including casing and drill strings, (iii) pumps | 29 |
| and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 30 |
| individual replacement part for oil
field exploration, | 31 |
| drilling, and production equipment, and (vi) machinery and
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| equipment purchased
for lease; but excluding motor vehicles | 33 |
| required to be registered under the
Illinois Vehicle Code.
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| (15) Photoprocessing machinery and equipment, including | 35 |
| repair and
replacement parts, both new and used, including that
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| manufactured on special order, certified by the purchaser to be |
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| used
primarily for photoprocessing, and including
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| photoprocessing machinery and equipment purchased for lease.
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| (16) Until July 1, 2003, coal exploration, mining, | 4 |
| offhighway hauling,
processing, maintenance, and reclamation | 5 |
| equipment,
including replacement parts and equipment, and
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| including equipment purchased for lease, but excluding motor
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| vehicles required to be registered under the Illinois Vehicle | 8 |
| Code.
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| (17) Until July 1, 2003, distillation machinery and | 10 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 11 |
| retailer, certified by the user to be used
only for the | 12 |
| production of ethyl alcohol that will be used for consumption
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| as motor fuel or as a component of motor fuel for the personal | 14 |
| use of the
user, and not subject to sale or resale.
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| (18) Manufacturing and assembling machinery and equipment | 16 |
| used
primarily in the process of manufacturing or assembling | 17 |
| tangible
personal property for wholesale or retail sale or | 18 |
| lease, whether that sale
or lease is made directly by the | 19 |
| manufacturer or by some other person,
whether the materials | 20 |
| used in the process are
owned by the manufacturer or some other | 21 |
| person, or whether that sale or
lease is made apart from or as | 22 |
| an incident to the seller's engaging in
the service occupation | 23 |
| of producing machines, tools, dies, jigs,
patterns, gauges, or | 24 |
| other similar items of no commercial value on
special order for | 25 |
| a particular purchaser.
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| (19) Personal property delivered to a purchaser or | 27 |
| purchaser's donee
inside Illinois when the purchase order for | 28 |
| that personal property was
received by a florist located | 29 |
| outside Illinois who has a florist located
inside Illinois | 30 |
| deliver the personal property.
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| (20) Semen used for artificial insemination of livestock | 32 |
| for direct
agricultural production.
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| (21) Horses, or interests in horses, registered with and | 34 |
| meeting the
requirements of any of the
Arabian Horse Club | 35 |
| Registry of America, Appaloosa Horse Club, American Quarter
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| Horse Association, United States
Trotting Association, or |
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| Jockey Club, as appropriate, used for
purposes of breeding or | 2 |
| racing for prizes.
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| (22) Computers and communications equipment utilized for | 4 |
| any
hospital
purpose
and equipment used in the diagnosis,
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| analysis, or treatment of hospital patients purchased by a | 6 |
| lessor who leases
the
equipment, under a lease of one year or | 7 |
| longer executed or in effect at the
time the lessor would | 8 |
| otherwise be subject to the tax imposed by this Act, to a
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| hospital
that has been issued an active tax exemption | 10 |
| identification number by
the
Department under Section 1g of the | 11 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 12 |
| manner that does not qualify for
this exemption or is used in | 13 |
| any other non-exempt manner, the lessor
shall be liable for the
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| tax imposed under this Act or the Service Use Tax Act, as the | 15 |
| case may
be, based on the fair market value of the property at | 16 |
| the time the
non-qualifying use occurs. No lessor shall collect | 17 |
| or attempt to collect an
amount (however
designated) that | 18 |
| purports to reimburse that lessor for the tax imposed by this
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| Act or the Service Use Tax Act, as the case may be, if the tax | 20 |
| has not been
paid by the lessor. If a lessor improperly | 21 |
| collects any such amount from the
lessee, the lessee shall have | 22 |
| a legal right to claim a refund of that amount
from the lessor. | 23 |
| If, however, that amount is not refunded to the lessee for
any | 24 |
| reason, the lessor is liable to pay that amount to the | 25 |
| Department.
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| (23) Personal property purchased by a lessor who leases the
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| property, under
a
lease of
one year or longer executed or in | 28 |
| effect at the time
the lessor would otherwise be subject to the | 29 |
| tax imposed by this Act,
to a governmental body
that has been | 30 |
| issued an active sales tax exemption identification number by | 31 |
| the
Department under Section 1g of the Retailers' Occupation | 32 |
| Tax Act.
If the
property is leased in a manner that does not | 33 |
| qualify for
this exemption
or used in any other non-exempt | 34 |
| manner, the lessor shall be liable for the
tax imposed under | 35 |
| this Act or the Service Use Tax Act, as the case may
be, based | 36 |
| on the fair market value of the property at the time the
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| non-qualifying use occurs. No lessor shall collect or attempt | 2 |
| to collect an
amount (however
designated) that purports to | 3 |
| reimburse that lessor for the tax imposed by this
Act or the | 4 |
| Service Use Tax Act, as the case may be, if the tax has not been
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| paid by the lessor. If a lessor improperly collects any such | 6 |
| amount from the
lessee, the lessee shall have a legal right to | 7 |
| claim a refund of that amount
from the lessor. If, however, | 8 |
| that amount is not refunded to the lessee for
any reason, the | 9 |
| lessor is liable to pay that amount to the Department.
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| (24) Beginning with taxable years ending on or after | 11 |
| December
31, 1995
and
ending with taxable years ending on or | 12 |
| before December 31, 2004,
personal property that is
donated for | 13 |
| disaster relief to be used in a State or federally declared
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| disaster area in Illinois or bordering Illinois by a | 15 |
| manufacturer or retailer
that is registered in this State to a | 16 |
| corporation, society, association,
foundation, or institution | 17 |
| that has been issued a sales tax exemption
identification | 18 |
| number by the Department that assists victims of the disaster
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| who reside within the declared disaster area.
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| (25) Beginning with taxable years ending on or after | 21 |
| December
31, 1995 and
ending with taxable years ending on or | 22 |
| before December 31, 2004, personal
property that is used in the | 23 |
| performance of infrastructure repairs in this
State, including | 24 |
| but not limited to municipal roads and streets, access roads,
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| bridges, sidewalks, waste disposal systems, water and sewer | 26 |
| line extensions,
water distribution and purification | 27 |
| facilities, storm water drainage and
retention facilities, and | 28 |
| sewage treatment facilities, resulting from a State
or | 29 |
| federally declared disaster in Illinois or bordering Illinois | 30 |
| when such
repairs are initiated on facilities located in the | 31 |
| declared disaster area
within 6 months after the disaster.
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| (26) Beginning July 1, 1999, game or game birds purchased | 33 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 34 |
| game hunting area" as those terms are
used in
the Wildlife Code | 35 |
| or at a hunting enclosure approved through rules adopted by
the
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| Department of Natural Resources. This paragraph is exempt from |
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| the provisions
of
Section 3-90.
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| (27) A motor vehicle, as that term is defined in Section | 3 |
| 1-146
of the
Illinois
Vehicle Code, that is donated to a | 4 |
| corporation, limited liability company,
society, association, | 5 |
| foundation, or institution that is determined by the
Department | 6 |
| to be organized and operated exclusively for educational | 7 |
| purposes.
For purposes of this exemption, "a corporation, | 8 |
| limited liability company,
society, association, foundation, | 9 |
| or institution organized and operated
exclusively for | 10 |
| educational purposes" means all tax-supported public schools,
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| private schools that offer systematic instruction in useful | 12 |
| branches of
learning by methods common to public schools and | 13 |
| that compare favorably in
their scope and intensity with the | 14 |
| course of study presented in tax-supported
schools, and | 15 |
| vocational or technical schools or institutes organized and
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| operated exclusively to provide a course of study of not less | 17 |
| than 6 weeks
duration and designed to prepare individuals to | 18 |
| follow a trade or to pursue a
manual, technical, mechanical, | 19 |
| industrial, business, or commercial
occupation.
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| (28) Beginning January 1, 2000, personal property, | 21 |
| including
food,
purchased through fundraising
events for the | 22 |
| benefit of
a public or private elementary or
secondary school, | 23 |
| a group of those schools, or one or more school
districts if | 24 |
| the events are
sponsored by an entity recognized by the school | 25 |
| district that consists
primarily of volunteers and includes
| 26 |
| parents and teachers of the school children. This paragraph | 27 |
| does not apply
to fundraising
events (i) for the benefit of | 28 |
| private home instruction or (ii)
for which the fundraising | 29 |
| entity purchases the personal property sold at
the events from | 30 |
| another individual or entity that sold the property for the
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| purpose of resale by the fundraising entity and that
profits | 32 |
| from the sale to the
fundraising entity. This paragraph is | 33 |
| exempt
from the provisions
of Section 3-90.
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| (29) Beginning January 1, 2000 and through December 31, | 35 |
| 2001, new or
used automatic vending
machines that prepare and | 36 |
| serve hot food and beverages, including coffee, soup,
and
other |
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| items, and replacement parts for these machines.
Beginning | 2 |
| January 1,
2002 and through June 30, 2003, machines and parts | 3 |
| for machines used in
commercial, coin-operated amusement and | 4 |
| vending business if a use or occupation
tax is paid on the | 5 |
| gross receipts derived from the use of the commercial,
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| coin-operated amusement and vending machines.
This
paragraph
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| is exempt from the provisions of Section 3-90.
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| (30) Food for human consumption that is to be consumed off | 9 |
| the premises
where it is sold (other than alcoholic beverages, | 10 |
| soft drinks, and food that
has been prepared for immediate | 11 |
| consumption) and prescription and
nonprescription medicines, | 12 |
| drugs, medical appliances, colostomy bags and other supplies | 13 |
| and equipment used for the care of ostomy patients, and | 14 |
| insulin, urine
testing materials, syringes, and needles used by | 15 |
| diabetics, for human use, when
purchased for use by a person | 16 |
| receiving medical assistance under Article 5 of
the Illinois | 17 |
| Public Aid Code who resides in a licensed long-term care | 18 |
| facility,
as defined in the Nursing Home Care Act.
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| (31) Beginning on
the effective date of this amendatory Act | 20 |
| of the 92nd General Assembly,
computers and communications | 21 |
| equipment
utilized for any hospital purpose and equipment used | 22 |
| in the diagnosis,
analysis, or treatment of hospital patients | 23 |
| purchased by a lessor who leases
the equipment, under a lease | 24 |
| of one year or longer executed or in effect at the
time the | 25 |
| lessor would otherwise be subject to the tax imposed by this | 26 |
| Act, to a
hospital that has been issued an active tax exemption | 27 |
| identification number by
the Department under Section 1g of the | 28 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 29 |
| manner that does not qualify for this exemption or is
used in | 30 |
| any other nonexempt manner, the lessor shall be liable for the | 31 |
| tax
imposed under this Act or the Service Use Tax Act, as the | 32 |
| case may be, based on
the fair market value of the property at | 33 |
| the time the nonqualifying use
occurs. No lessor shall collect | 34 |
| or attempt to collect an amount (however
designated) that | 35 |
| purports to reimburse that lessor for the tax imposed by this
| 36 |
| Act or the Service Use Tax Act, as the case may be, if the tax |
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| has not been
paid by the lessor. If a lessor improperly | 2 |
| collects any such amount from the
lessee, the lessee shall have | 3 |
| a legal right to claim a refund of that amount
from the lessor. | 4 |
| If, however, that amount is not refunded to the lessee for
any | 5 |
| reason, the lessor is liable to pay that amount to the | 6 |
| Department.
This paragraph is exempt from the provisions of | 7 |
| Section 3-90.
| 8 |
| (32) Beginning on
the effective date of this amendatory Act | 9 |
| of the 92nd General Assembly,
personal property purchased by a | 10 |
| lessor who leases the property,
under a lease of one year or | 11 |
| longer executed or in effect at the time the
lessor would | 12 |
| otherwise be subject to the tax imposed by this Act, to a
| 13 |
| governmental body that has been issued an active sales tax | 14 |
| exemption
identification number by the Department under | 15 |
| Section 1g of the Retailers'
Occupation Tax Act. If the | 16 |
| property is leased in a manner that does not
qualify for this | 17 |
| exemption or used in any other nonexempt manner, the lessor
| 18 |
| shall be liable for the tax imposed under this Act or the | 19 |
| Service Use Tax Act,
as the case may be, based on the fair | 20 |
| market value of the property at the time
the nonqualifying use | 21 |
| occurs. No lessor shall collect or attempt to collect
an amount | 22 |
| (however designated) that purports to reimburse that lessor for | 23 |
| the
tax imposed by this Act or the Service Use Tax Act, as the | 24 |
| case may be, if the
tax has not been paid by the lessor. If a | 25 |
| lessor improperly collects any such
amount from the lessee, the | 26 |
| lessee shall have a legal right to claim a refund
of that | 27 |
| amount from the lessor. If, however, that amount is not | 28 |
| refunded to
the lessee for any reason, the lessor is liable to | 29 |
| pay that amount to the
Department. This paragraph is exempt | 30 |
| from the provisions of Section 3-90.
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| (33) On and after July 1, 2003 and through June 30, 2004, | 32 |
| the use in this State of motor vehicles of
the second division | 33 |
| with a gross vehicle weight in excess of 8,000 pounds and
that | 34 |
| are subject to the commercial distribution fee imposed under | 35 |
| Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 36 |
| 1, 2004 and through June 30, 2005, the use in this State of |
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| motor vehicles of the second division: (i) with a gross vehicle | 2 |
| weight rating in excess of 8,000 pounds; (ii) that are subject | 3 |
| to the commercial distribution fee imposed under Section | 4 |
| 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 5 |
| primarily used for commercial purposes. Through June 30, 2005, | 6 |
| this exemption applies to repair and
replacement parts added | 7 |
| after the initial purchase of such a motor vehicle if
that | 8 |
| motor
vehicle is used in a manner that would qualify for the | 9 |
| rolling stock exemption
otherwise provided for in this Act. For | 10 |
| purposes of this paragraph, the term "used for commercial | 11 |
| purposes" means the transportation of persons or property in | 12 |
| furtherance of any commercial or industrial enterprise, | 13 |
| whether for-hire or not.
| 14 |
| (Source: P.A. 92-35, eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, | 15 |
| eff. 8-10-01; 92-484, eff. 8-23-01; 92-651, eff. 7-11-02; | 16 |
| 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, eff. 7-30-04; | 17 |
| 93-1033, eff. 9-3-04; revised 10-21-04.)
| 18 |
| (35 ILCS 105/3-5.5)
| 19 |
| Sec. 3-5.5. Food and drugs sold by not-for-profit | 20 |
| organizations; exemption. The Department shall not collect the | 21 |
| 1% tax imposed on food for human
consumption that is to be | 22 |
| consumed off the premises where it is sold (other
than | 23 |
| alcoholic beverages, soft drinks, and food that has been | 24 |
| prepared for
immediate consumption) and prescription and | 25 |
| nonprescription medicines, drugs,
medical appliances, | 26 |
| colostomy bags and other supplies and equipment used for the | 27 |
| care of ostomy patients, and insulin, urine testing materials, | 28 |
| syringes, and needles
used
by diabetics, for human use from any | 29 |
| not-for-profit organization, that sells
food in a food | 30 |
| distribution program at a price below the retail cost of the
| 31 |
| food to purchasers who, as a condition of participation in the | 32 |
| program, are
required to perform community service, located in | 33 |
| a county or municipality that
notifies the Department, in | 34 |
| writing, that the county or municipality does not
want the tax | 35 |
| to be collected from any of such organizations located
in the |
|
|
|
HB0033 |
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| 1 |
| county or municipality.
| 2 |
| (Source: P.A. 88-374.)
| 3 |
| (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
| 4 |
| Sec. 3-10. Rate of tax. Unless otherwise provided in this | 5 |
| Section, the tax
imposed by this Act is at the rate of 6.25% of | 6 |
| either the selling price or the
fair market value, if any, of | 7 |
| the tangible personal property. In all cases
where property | 8 |
| functionally used or consumed is the same as the property that
| 9 |
| was purchased at retail, then the tax is imposed on the selling | 10 |
| price of the
property. In all cases where property functionally | 11 |
| used or consumed is a
by-product or waste product that has been | 12 |
| refined, manufactured, or produced
from property purchased at | 13 |
| retail, then the tax is imposed on the lower of the
fair market | 14 |
| value, if any, of the specific property so used in this State | 15 |
| or on
the selling price of the property purchased at retail. | 16 |
| For purposes of this
Section "fair market value" means the | 17 |
| price at which property would change
hands between a willing | 18 |
| buyer and a willing seller, neither being under any
compulsion | 19 |
| to buy or sell and both having reasonable knowledge of the
| 20 |
| relevant facts. The fair market value shall be established by | 21 |
| Illinois sales by
the taxpayer of the same property as that | 22 |
| functionally used or consumed, or if
there are no such sales by | 23 |
| the taxpayer, then comparable sales or purchases of
property of | 24 |
| like kind and character in Illinois.
| 25 |
| Beginning on July 1, 2000 and through December 31, 2000, | 26 |
| with respect to
motor fuel, as defined in Section 1.1 of the | 27 |
| Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 28 |
| the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 29 |
| With respect to gasohol, the tax imposed by this Act | 30 |
| applies to (i) 70%
of the proceeds of sales made on or after | 31 |
| January 1, 1990, and before
July 1, 2003, (ii) 80% of the | 32 |
| proceeds of sales made
on or after July 1, 2003 and on or | 33 |
| before December 31, 2013, and (iii) 100% of the proceeds of | 34 |
| sales made
thereafter.
If, at any time, however, the tax under | 35 |
| this Act on sales of gasohol is
imposed at the
rate of 1.25%, |
|
|
|
HB0033 |
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| 1 |
| then the tax imposed by this Act applies to 100% of the | 2 |
| proceeds
of sales of gasohol made during that time.
| 3 |
| With respect to majority blended ethanol fuel, the tax | 4 |
| imposed by this Act
does
not apply
to the proceeds of sales | 5 |
| made on or after July 1, 2003 and on or before
December
31, | 6 |
| 2013 but applies to 100% of the proceeds of sales made | 7 |
| thereafter.
| 8 |
| With respect to biodiesel blends with no less than 1% and | 9 |
| no more than 10%
biodiesel, the tax imposed by this Act applies | 10 |
| to (i) 80% of the
proceeds of sales made on or after July 1, | 11 |
| 2003 and on or before December 31,
2013 and (ii) 100% of the | 12 |
| proceeds of sales made
thereafter.
If, at any time, however, | 13 |
| the tax under this Act on sales of biodiesel blends
with no | 14 |
| less than 1% and no more than 10% biodiesel
is imposed at the | 15 |
| rate of
1.25%, then the
tax imposed by this Act applies to 100% | 16 |
| of the proceeds of sales of biodiesel
blends with no less than | 17 |
| 1% and no more than 10% biodiesel
made
during that time.
| 18 |
| With respect to 100% biodiesel and biodiesel blends with | 19 |
| more than 10%
but no more than 99% biodiesel, the tax imposed | 20 |
| by this Act does not apply to
the
proceeds of sales made on or | 21 |
| after July 1, 2003 and on or before
December 31, 2013 but | 22 |
| applies to 100% of the proceeds of sales made
thereafter.
| 23 |
| With respect to food for human consumption that is to be | 24 |
| consumed off the
premises where it is sold (other than | 25 |
| alcoholic beverages, soft drinks, and
food that has been | 26 |
| prepared for immediate consumption) and prescription and
| 27 |
| nonprescription medicines, drugs, medical appliances, | 28 |
| colostomy bags and other supplies and equipment used for the | 29 |
| care of ostomy patients, modifications to a motor
vehicle for | 30 |
| the purpose of rendering it usable by a disabled person,
and
| 31 |
| insulin, urine testing materials, syringes, and needles used by | 32 |
| diabetics, for
human use, the tax is imposed at the rate of 1%. | 33 |
| For the purposes of this
Section, the term "soft drinks" means | 34 |
| any complete, finished, ready-to-use,
non-alcoholic drink, | 35 |
| whether carbonated or not, including but not limited to
soda | 36 |
| water, cola, fruit juice, vegetable juice, carbonated water, |
|
|
|
HB0033 |
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| 1 |
| and all other
preparations commonly known as soft drinks of | 2 |
| whatever kind or description that
are contained in any closed | 3 |
| or sealed bottle, can, carton, or container,
regardless of | 4 |
| size. "Soft drinks" does not include coffee, tea, | 5 |
| non-carbonated
water, infant formula, milk or milk products as | 6 |
| defined in the Grade A
Pasteurized Milk and Milk Products Act, | 7 |
| or drinks containing 50% or more
natural fruit or vegetable | 8 |
| juice.
| 9 |
| Notwithstanding any other provisions of this
Act, "food for | 10 |
| human consumption that is to be consumed off the premises where
| 11 |
| it is sold" includes all food sold through a vending machine, | 12 |
| except soft
drinks and food products that are dispensed hot | 13 |
| from a vending machine,
regardless of the location of the | 14 |
| vending machine.
| 15 |
| If the property that is purchased at retail from a retailer | 16 |
| is acquired
outside Illinois and used outside Illinois before | 17 |
| being brought to Illinois
for use here and is taxable under | 18 |
| this Act, the "selling price" on which
the tax is computed | 19 |
| shall be reduced by an amount that represents a
reasonable | 20 |
| allowance for depreciation for the period of prior out-of-state | 21 |
| use.
| 22 |
| (Source: P.A. 93-17, eff. 6-11-03.)
| 23 |
| Section 10. The Service Use Tax Act is amended by changing | 24 |
| Sections 3-5, 3-5.5, and 3-10 as follows:
| 25 |
| (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| 26 |
| Sec. 3-5. Exemptions. Use of the following tangible | 27 |
| personal property
is exempt from the tax imposed by this Act:
| 28 |
| (1) Personal property purchased from a corporation, | 29 |
| society,
association, foundation, institution, or | 30 |
| organization, other than a limited
liability company, that is | 31 |
| organized and operated as a not-for-profit service
enterprise | 32 |
| for the benefit of persons 65 years of age or older if the | 33 |
| personal
property was not purchased by the enterprise for the | 34 |
| purpose of resale by the
enterprise.
|
|
|
|
HB0033 |
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| 1 |
| (2) Personal property purchased by a non-profit Illinois | 2 |
| county fair
association for use in conducting, operating, or | 3 |
| promoting the county fair.
| 4 |
| (3) Personal property purchased by a not-for-profit arts
or | 5 |
| cultural
organization that establishes, by proof required by | 6 |
| the Department by rule,
that it has received an exemption under | 7 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 8 |
| organized and operated primarily for the
presentation
or | 9 |
| support of arts or cultural programming, activities, or | 10 |
| services. These
organizations include, but are not limited to, | 11 |
| music and dramatic arts
organizations such as symphony | 12 |
| orchestras and theatrical groups, arts and
cultural service | 13 |
| organizations, local arts councils, visual arts organizations,
| 14 |
| and media arts organizations.
On and after the effective date | 15 |
| of this amendatory Act of the 92nd General
Assembly, however, | 16 |
| an entity otherwise eligible for this exemption shall not
make | 17 |
| tax-free purchases unless it has an active identification | 18 |
| number issued by
the Department.
| 19 |
| (4) Legal tender, currency, medallions, or gold or silver | 20 |
| coinage issued
by the State of Illinois, the government of the | 21 |
| United States of America,
or the government of any foreign | 22 |
| country, and bullion.
| 23 |
| (5) Until July 1, 2003 and beginning again on September 1, | 24 |
| 2004, graphic arts machinery and equipment, including
repair | 25 |
| and
replacement parts, both new and used, and including that | 26 |
| manufactured on
special order or purchased for lease, certified | 27 |
| by the purchaser to be used
primarily for graphic arts | 28 |
| production.
Equipment includes chemicals or
chemicals acting | 29 |
| as catalysts but only if
the chemicals or chemicals acting as | 30 |
| catalysts effect a direct and immediate
change upon a graphic | 31 |
| arts product.
| 32 |
| (6) Personal property purchased from a teacher-sponsored | 33 |
| student
organization affiliated with an elementary or | 34 |
| secondary school located
in Illinois.
| 35 |
| (7) Farm machinery and equipment, both new and used, | 36 |
| including that
manufactured on special order, certified by the |
|
|
|
HB0033 |
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| 1 |
| purchaser to be used
primarily for production agriculture or | 2 |
| State or federal agricultural
programs, including individual | 3 |
| replacement parts for the machinery and
equipment, including | 4 |
| machinery and equipment purchased for lease,
and including | 5 |
| implements of husbandry defined in Section 1-130 of
the | 6 |
| Illinois Vehicle Code, farm machinery and agricultural | 7 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 8 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 9 |
| but
excluding other motor vehicles required to be registered | 10 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or | 11 |
| hoop houses used for propagating, growing, or
overwintering | 12 |
| plants shall be considered farm machinery and equipment under
| 13 |
| this item (7).
Agricultural chemical tender tanks and dry boxes | 14 |
| shall include units sold
separately from a motor vehicle | 15 |
| required to be licensed and units sold mounted
on a motor | 16 |
| vehicle required to be licensed if the selling price of the | 17 |
| tender
is separately stated.
| 18 |
| Farm machinery and equipment shall include precision | 19 |
| farming equipment
that is
installed or purchased to be | 20 |
| installed on farm machinery and equipment
including, but not | 21 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 22 |
| or spreaders.
Precision farming equipment includes, but is not | 23 |
| limited to,
soil testing sensors, computers, monitors, | 24 |
| software, global positioning
and mapping systems, and other | 25 |
| such equipment.
| 26 |
| Farm machinery and equipment also includes computers, | 27 |
| sensors, software, and
related equipment used primarily in the
| 28 |
| computer-assisted operation of production agriculture | 29 |
| facilities, equipment,
and activities such as, but
not limited | 30 |
| to,
the collection, monitoring, and correlation of
animal and | 31 |
| crop data for the purpose of
formulating animal diets and | 32 |
| agricultural chemicals. This item (7) is exempt
from the | 33 |
| provisions of
Section 3-75.
| 34 |
| (8) Fuel and petroleum products sold to or used by an air | 35 |
| common
carrier, certified by the carrier to be used for | 36 |
| consumption, shipment, or
storage in the conduct of its |
|
|
|
HB0033 |
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|
| 1 |
| business as an air common carrier, for a
flight destined for or | 2 |
| returning from a location or locations
outside the United | 3 |
| States without regard to previous or subsequent domestic
| 4 |
| stopovers.
| 5 |
| (9) Proceeds of mandatory service charges separately | 6 |
| stated on
customers' bills for the purchase and consumption of | 7 |
| food and beverages
acquired as an incident to the purchase of a | 8 |
| service from a serviceman, to
the extent that the proceeds of | 9 |
| the service charge are in fact
turned over as tips or as a | 10 |
| substitute for tips to the employees who
participate directly | 11 |
| in preparing, serving, hosting or cleaning up the
food or | 12 |
| beverage function with respect to which the service charge is | 13 |
| imposed.
| 14 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 15 |
| and production
equipment, including
(i) rigs and parts of rigs, | 16 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 17 |
| tubular goods, including casing and
drill strings, (iii) pumps | 18 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 19 |
| individual replacement part for oil field exploration,
| 20 |
| drilling, and production equipment, and (vi) machinery and | 21 |
| equipment purchased
for lease; but
excluding motor vehicles | 22 |
| required to be registered under the Illinois
Vehicle Code.
| 23 |
| (11) Proceeds from the sale of photoprocessing machinery | 24 |
| and
equipment, including repair and replacement parts, both new | 25 |
| and
used, including that manufactured on special order, | 26 |
| certified by the
purchaser to be used primarily for | 27 |
| photoprocessing, and including
photoprocessing machinery and | 28 |
| equipment purchased for lease.
| 29 |
| (12) Until July 1, 2003, coal exploration, mining, | 30 |
| offhighway hauling,
processing,
maintenance, and reclamation | 31 |
| equipment, including
replacement parts and equipment, and | 32 |
| including
equipment purchased for lease, but excluding motor | 33 |
| vehicles required to be
registered under the Illinois Vehicle | 34 |
| Code.
| 35 |
| (13) Semen used for artificial insemination of livestock | 36 |
| for direct
agricultural production.
|
|
|
|
HB0033 |
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|
| 1 |
| (14) Horses, or interests in horses, registered with and | 2 |
| meeting the
requirements of any of the
Arabian Horse Club | 3 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 4 |
| Horse Association, United States
Trotting Association, or | 5 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 6 |
| racing for prizes.
| 7 |
| (15) Computers and communications equipment utilized for | 8 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 9 |
| analysis, or treatment of hospital patients purchased by a | 10 |
| lessor who leases
the
equipment, under a lease of one year or | 11 |
| longer executed or in effect at the
time
the lessor would | 12 |
| otherwise be subject to the tax imposed by this Act,
to a
| 13 |
| hospital
that has been issued an active tax exemption | 14 |
| identification number by the
Department under Section 1g of the | 15 |
| Retailers' Occupation Tax Act.
If the
equipment is leased in a | 16 |
| manner that does not qualify for
this exemption
or is used in | 17 |
| any other non-exempt manner,
the lessor shall be liable for the
| 18 |
| tax imposed under this Act or the Use Tax Act, as the case may
| 19 |
| be, based on the fair market value of the property at the time | 20 |
| the
non-qualifying use occurs. No lessor shall collect or | 21 |
| attempt to collect an
amount (however
designated) that purports | 22 |
| to reimburse that lessor for the tax imposed by this
Act or the | 23 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 24 |
| the lessor. If a lessor improperly collects any such amount | 25 |
| from the
lessee, the lessee shall have a legal right to claim a | 26 |
| refund of that amount
from the lessor. If, however, that amount | 27 |
| is not refunded to the lessee for
any reason, the lessor is | 28 |
| liable to pay that amount to the Department.
| 29 |
| (16) Personal property purchased by a lessor who leases the
| 30 |
| property, under
a
lease of one year or longer executed or in | 31 |
| effect at the time
the lessor would otherwise be subject to the | 32 |
| tax imposed by this Act,
to a governmental body
that has been | 33 |
| issued an active tax exemption identification number by the
| 34 |
| Department under Section 1g of the Retailers' Occupation Tax | 35 |
| Act.
If the
property is leased in a manner that does not | 36 |
| qualify for
this exemption
or is used in any other non-exempt |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| manner,
the lessor shall be liable for the
tax imposed under | 2 |
| this Act or the Use Tax Act, as the case may
be, based on the | 3 |
| fair market value of the property at the time the
| 4 |
| non-qualifying use occurs. No lessor shall collect or attempt | 5 |
| to collect an
amount (however
designated) that purports to | 6 |
| reimburse that lessor for the tax imposed by this
Act or the | 7 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 8 |
| the lessor. If a lessor improperly collects any such amount | 9 |
| from the
lessee, the lessee shall have a legal right to claim a | 10 |
| refund of that amount
from the lessor. If, however, that amount | 11 |
| is not refunded to the lessee for
any reason, the lessor is | 12 |
| liable to pay that amount to the Department.
| 13 |
| (17) Beginning with taxable years ending on or after | 14 |
| December
31,
1995
and
ending with taxable years ending on or | 15 |
| before December 31, 2004,
personal property that is
donated for | 16 |
| disaster relief to be used in a State or federally declared
| 17 |
| disaster area in Illinois or bordering Illinois by a | 18 |
| manufacturer or retailer
that is registered in this State to a | 19 |
| corporation, society, association,
foundation, or institution | 20 |
| that has been issued a sales tax exemption
identification | 21 |
| number by the Department that assists victims of the disaster
| 22 |
| who reside within the declared disaster area.
| 23 |
| (18) Beginning with taxable years ending on or after | 24 |
| December
31, 1995 and
ending with taxable years ending on or | 25 |
| before December 31, 2004, personal
property that is used in the | 26 |
| performance of infrastructure repairs in this
State, including | 27 |
| but not limited to municipal roads and streets, access roads,
| 28 |
| bridges, sidewalks, waste disposal systems, water and sewer | 29 |
| line extensions,
water distribution and purification | 30 |
| facilities, storm water drainage and
retention facilities, and | 31 |
| sewage treatment facilities, resulting from a State
or | 32 |
| federally declared disaster in Illinois or bordering Illinois | 33 |
| when such
repairs are initiated on facilities located in the | 34 |
| declared disaster area
within 6 months after the disaster.
| 35 |
| (19) Beginning July 1, 1999, game or game birds purchased | 36 |
| at a "game
breeding
and hunting preserve area" or an "exotic |
|
|
|
HB0033 |
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|
| 1 |
| game hunting area" as those terms are
used in
the Wildlife Code | 2 |
| or at a hunting enclosure approved through rules adopted by
the
| 3 |
| Department of Natural Resources. This paragraph is exempt from | 4 |
| the provisions
of
Section 3-75.
| 5 |
| (20) A motor vehicle, as that term is defined in Section | 6 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 7 |
| corporation, limited liability
company, society, association, | 8 |
| foundation, or institution that is determined by
the Department | 9 |
| to be organized and operated exclusively for educational
| 10 |
| purposes. For purposes of this exemption, "a corporation, | 11 |
| limited liability
company, society, association, foundation, | 12 |
| or institution organized and
operated
exclusively for | 13 |
| educational purposes" means all tax-supported public schools,
| 14 |
| private schools that offer systematic instruction in useful | 15 |
| branches of
learning by methods common to public schools and | 16 |
| that compare favorably in
their scope and intensity with the | 17 |
| course of study presented in tax-supported
schools, and | 18 |
| vocational or technical schools or institutes organized and
| 19 |
| operated exclusively to provide a course of study of not less | 20 |
| than 6 weeks
duration and designed to prepare individuals to | 21 |
| follow a trade or to pursue a
manual, technical, mechanical, | 22 |
| industrial, business, or commercial
occupation.
| 23 |
| (21) Beginning January 1, 2000, personal property, | 24 |
| including
food,
purchased through fundraising
events for the | 25 |
| benefit of
a public or private elementary or
secondary school, | 26 |
| a group of those schools, or one or more school
districts if | 27 |
| the events are
sponsored by an entity recognized by the school | 28 |
| district that consists
primarily of volunteers and includes
| 29 |
| parents and teachers of the school children. This paragraph | 30 |
| does not apply
to fundraising
events (i) for the benefit of | 31 |
| private home instruction or (ii)
for which the fundraising | 32 |
| entity purchases the personal property sold at
the events from | 33 |
| another individual or entity that sold the property for the
| 34 |
| purpose of resale by the fundraising entity and that
profits | 35 |
| from the sale to the
fundraising entity. This paragraph is | 36 |
| exempt
from the provisions
of Section 3-75.
|
|
|
|
HB0033 |
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|
| 1 |
| (22) Beginning January 1, 2000
and through December 31, | 2 |
| 2001, new or used automatic vending
machines that prepare and | 3 |
| serve hot food and beverages, including coffee, soup,
and
other | 4 |
| items, and replacement parts for these machines.
Beginning | 5 |
| January 1,
2002 and through June 30, 2003, machines and parts | 6 |
| for machines used in
commercial, coin-operated
amusement
and | 7 |
| vending business if a use or occupation tax is paid on the | 8 |
| gross receipts
derived from
the use of the commercial, | 9 |
| coin-operated amusement and vending machines.
This
paragraph
| 10 |
| is exempt from the provisions of Section 3-75.
| 11 |
| (23) Food for human consumption that is to be consumed off | 12 |
| the
premises
where it is sold (other than alcoholic beverages, | 13 |
| soft drinks, and food that
has been prepared for immediate | 14 |
| consumption) and prescription and
nonprescription medicines, | 15 |
| drugs, medical appliances, colostomy bags and other supplies | 16 |
| and equipment used for the care of ostomy patients, and | 17 |
| insulin, urine
testing materials, syringes, and needles used by | 18 |
| diabetics, for human use, when
purchased for use by a person | 19 |
| receiving medical assistance under Article 5 of
the Illinois | 20 |
| Public Aid Code who resides in a licensed long-term care | 21 |
| facility,
as defined in the Nursing Home Care Act.
| 22 |
| (24) Beginning on the effective date of this amendatory Act | 23 |
| of the 92nd
General Assembly, computers and communications | 24 |
| equipment
utilized for any hospital purpose and equipment used | 25 |
| in the diagnosis,
analysis, or treatment of hospital patients | 26 |
| purchased by a lessor who leases
the equipment, under a lease | 27 |
| of one year or longer executed or in effect at the
time the | 28 |
| lessor would otherwise be subject to the tax imposed by this | 29 |
| Act, to a
hospital that has been issued an active tax exemption | 30 |
| identification number by
the Department under Section 1g of the | 31 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 32 |
| manner that does not qualify for this exemption or is
used in | 33 |
| any other nonexempt manner, the lessor shall be liable for the
| 34 |
| tax imposed under this Act or the Use Tax Act, as the case may | 35 |
| be, based on the
fair market value of the property at the time | 36 |
| the nonqualifying use occurs.
No lessor shall collect or |
|
|
|
HB0033 |
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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 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 4 |
| the lessor. If a lessor improperly collects any such amount | 5 |
| from the
lessee, the lessee shall have a legal right to claim a | 6 |
| refund of that amount
from the lessor. If, however, that amount | 7 |
| is not refunded to the lessee for
any reason, the lessor is | 8 |
| liable to pay that amount to the Department.
This paragraph is | 9 |
| exempt from the provisions of Section 3-75.
| 10 |
| (25) Beginning
on the effective date of this amendatory Act | 11 |
| of the 92nd General Assembly,
personal property purchased by a | 12 |
| lessor
who leases the property, under a lease of one year or | 13 |
| longer executed or in
effect at the time the lessor would | 14 |
| otherwise be subject to the tax imposed by
this Act, to a | 15 |
| governmental body that has been issued an active tax exemption
| 16 |
| identification number by the Department under Section 1g of the | 17 |
| Retailers'
Occupation Tax Act. If the property is leased in a | 18 |
| manner that does not
qualify for this exemption or is used in | 19 |
| any other nonexempt manner, the
lessor shall be liable for the | 20 |
| tax imposed under this Act or the Use Tax Act,
as the case may | 21 |
| be, based on the fair market value of the property at the time
| 22 |
| the nonqualifying use occurs. No lessor shall collect or | 23 |
| attempt to collect
an amount (however designated) that purports | 24 |
| to reimburse that lessor for the
tax imposed by this Act or the | 25 |
| Use Tax Act, as the case may be, if the tax has
not been paid by | 26 |
| the lessor. If a lessor improperly collects any such amount
| 27 |
| from the lessee, the lessee shall have a legal right to claim a | 28 |
| refund of that
amount from the lessor. If, however, that amount | 29 |
| is not refunded to the lessee
for any reason, the lessor is | 30 |
| liable to pay that amount to the Department.
This paragraph is | 31 |
| exempt from the provisions of Section 3-75.
| 32 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 33 |
| eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | 34 |
| 92-651, eff. 7-11-02; 93-24, eff. 6-20-03; 93-840, eff. | 35 |
| 7-30-04.)
|
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| (35 ILCS 110/3-5.5)
| 2 |
| Sec. 3-5.5. Food and drugs sold by not-for-profit | 3 |
| organizations; exemption. The Department shall not collect the | 4 |
| 1% tax imposed on food for human
consumption that is to be | 5 |
| consumed off the premises where it is sold (other
than | 6 |
| alcoholic beverages, soft drinks, and food that has been | 7 |
| prepared for
immediate consumption) and prescription and | 8 |
| nonprescription medicines, drugs,
medical appliances, | 9 |
| colostomy bags and other supplies and equipment used for the | 10 |
| care of ostomy patients, and insulin, urine testing materials, | 11 |
| syringes, and needles
used
by diabetics, for human use from any | 12 |
| not-for-profit organization, that sells
food in a food | 13 |
| distribution program at a price below the retail cost of the
| 14 |
| food to purchasers who, as a condition of participation in the | 15 |
| program, are
required to perform community service, located in | 16 |
| a county or municipality that
notifies the Department, in | 17 |
| writing, that the county or municipality does not
want the tax | 18 |
| to be collected from any of such organizations located
in the | 19 |
| county or municipality.
| 20 |
| (Source: P.A. 88-374.)
| 21 |
| (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| 22 |
| Sec. 3-10. Rate of tax. Unless otherwise provided in this | 23 |
| Section,
the tax imposed by this Act is at the rate of 6.25% of | 24 |
| the selling
price of tangible personal property transferred as | 25 |
| an incident to the sale
of service, but, for the purpose of | 26 |
| computing this tax, in no event shall
the selling price be less | 27 |
| than the cost price of the property to the
serviceman.
| 28 |
| Beginning on July 1, 2000 and through December 31, 2000, | 29 |
| with respect to
motor fuel, as defined in Section 1.1 of the | 30 |
| Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 31 |
| the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 32 |
| With respect to gasohol, as defined in the Use Tax Act, the | 33 |
| tax imposed
by this Act applies to (i) 70% of the selling price | 34 |
| of property transferred
as an incident to the sale of service | 35 |
| on or after January 1, 1990,
and before July 1, 2003, (ii) 80% |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| of the selling price of
property transferred as an incident to | 2 |
| the sale of service on or after July
1, 2003 and on or before | 3 |
| December 31, 2013, and (iii)
100% of the selling price | 4 |
| thereafter.
If, at any time, however, the tax under this Act on | 5 |
| sales of gasohol, as
defined in
the Use Tax Act, is imposed at | 6 |
| the rate of 1.25%, then the
tax imposed by this Act applies to | 7 |
| 100% of the proceeds of sales of gasohol
made during that time.
| 8 |
| With respect to majority blended ethanol fuel, as defined | 9 |
| in the Use Tax Act,
the
tax
imposed by this Act does not apply | 10 |
| to the selling price of property transferred
as an incident to | 11 |
| the sale of service on or after July 1, 2003 and on or before
| 12 |
| December 31, 2013 but applies to 100% of the selling price | 13 |
| thereafter.
| 14 |
| With respect to biodiesel blends, as defined in the Use Tax | 15 |
| Act, with no less
than 1% and no
more than 10% biodiesel, the | 16 |
| tax imposed by this Act
applies to (i) 80% of the selling price | 17 |
| of property transferred as an incident
to the sale of service | 18 |
| on or after July 1, 2003 and on or before December 31,
2013 and | 19 |
| (ii) 100% of the proceeds of the selling price
thereafter.
If, | 20 |
| at any time, however, the tax under this Act on sales of | 21 |
| biodiesel blends,
as
defined in the Use Tax Act, with no less | 22 |
| than 1% and no more than 10% biodiesel
is imposed at the rate | 23 |
| of 1.25%, then the
tax imposed by this Act applies to 100% of | 24 |
| the proceeds of sales of biodiesel
blends with no less than 1% | 25 |
| and no more than 10% biodiesel
made
during that time.
| 26 |
| With respect to 100% biodiesel, as defined in the Use Tax | 27 |
| Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 28 |
| more than 10% but no more than 99% biodiesel, the tax imposed | 29 |
| by this Act
does not apply to the proceeds of the selling price | 30 |
| of property transferred
as an incident to the sale of service | 31 |
| on or after July 1, 2003 and on or before
December 31, 2013 but | 32 |
| applies to 100% of the selling price thereafter.
| 33 |
| At the election of any registered serviceman made for each | 34 |
| fiscal year,
sales of service in which the aggregate annual | 35 |
| cost price of tangible
personal property transferred as an | 36 |
| incident to the sales of service is
less than 35%, or 75% in |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| the case of servicemen transferring prescription
drugs or | 2 |
| servicemen engaged in graphic arts production, of the aggregate
| 3 |
| annual total gross receipts from all sales of service, the tax | 4 |
| imposed by
this Act shall be based on the serviceman's cost | 5 |
| price of the tangible
personal property transferred as an | 6 |
| incident to the sale of those services.
| 7 |
| The tax shall be imposed at the rate of 1% on food prepared | 8 |
| for
immediate consumption and transferred incident to a sale of | 9 |
| service subject
to this Act or the Service Occupation Tax Act | 10 |
| by an entity licensed under
the Hospital Licensing Act, the | 11 |
| Nursing Home Care Act, or the
Child Care
Act of 1969. The tax | 12 |
| shall
also be imposed at the rate of 1% on food for human | 13 |
| consumption that is to be
consumed off the premises where it is | 14 |
| sold (other than alcoholic beverages,
soft drinks, and food | 15 |
| that has been prepared for immediate consumption and is
not | 16 |
| otherwise included in this paragraph) and prescription and | 17 |
| nonprescription
medicines, drugs, medical appliances, | 18 |
| modifications to a motor vehicle for the
purpose of rendering | 19 |
| it usable by a disabled person, colostomy bags and other | 20 |
| supplies and equipment used for the care of ostomy patients,
| 21 |
| and insulin, urine testing
materials,
syringes, and needles | 22 |
| used by diabetics, for
human use. For the purposes of this | 23 |
| Section, the term "soft drinks" means any
complete, finished, | 24 |
| ready-to-use, non-alcoholic drink, whether carbonated or
not, | 25 |
| including but not limited to soda water, cola, fruit juice, | 26 |
| vegetable
juice, carbonated water, and all other preparations | 27 |
| commonly known as soft
drinks of whatever kind or description | 28 |
| that are contained in any closed or
sealed bottle, can, carton, | 29 |
| or container, regardless of size. "Soft drinks"
does not | 30 |
| include coffee, tea, non-carbonated water, infant formula, | 31 |
| milk or
milk products as defined in the Grade A Pasteurized | 32 |
| Milk and Milk Products Act,
or drinks containing 50% or more | 33 |
| natural fruit or vegetable juice.
| 34 |
| Notwithstanding any other provisions of this Act, "food for | 35 |
| human
consumption that is to be consumed off the premises where | 36 |
| it is sold" includes
all food sold through a vending machine, |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| except soft drinks and food products
that are dispensed hot | 2 |
| from a vending machine, regardless of the location of
the | 3 |
| vending machine.
| 4 |
| If the property that is acquired from a serviceman is | 5 |
| acquired outside
Illinois and used outside Illinois before | 6 |
| being brought to Illinois for use
here and is taxable under | 7 |
| this Act, the "selling price" on which the tax
is computed | 8 |
| shall be reduced by an amount that represents a reasonable
| 9 |
| allowance for depreciation for the period of prior out-of-state | 10 |
| use.
| 11 |
| (Source: P.A. 93-17, eff. 6-11-03.)
| 12 |
| Section 15. The Service Occupation Tax Act is amended by | 13 |
| changing Sections 3-5, 3-5.5, and 3-10 as follows:
| 14 |
| (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| 15 |
| Sec. 3-5. Exemptions. The following tangible personal | 16 |
| property is
exempt from the tax imposed by this Act:
| 17 |
| (1) Personal property sold by a corporation, society, | 18 |
| association,
foundation, institution, or organization, other | 19 |
| than a limited liability
company, that is organized and | 20 |
| operated as a not-for-profit service enterprise
for the benefit | 21 |
| of persons 65 years of age or older if the personal property
| 22 |
| was not purchased by the enterprise for the purpose of resale | 23 |
| by the
enterprise.
| 24 |
| (2) Personal property purchased by a not-for-profit | 25 |
| Illinois county fair
association for use in conducting, | 26 |
| operating, or promoting the county fair.
| 27 |
| (3) Personal property purchased by any not-for-profit
arts | 28 |
| or cultural organization that establishes, by proof required by | 29 |
| the
Department by
rule, that it has received an exemption under | 30 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 31 |
| organized and operated primarily for the
presentation
or | 32 |
| support of arts or cultural programming, activities, or | 33 |
| services. These
organizations include, but are not limited to, | 34 |
| music and dramatic arts
organizations such as symphony |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| orchestras and theatrical groups, arts and
cultural service | 2 |
| organizations, local arts councils, visual arts organizations,
| 3 |
| and media arts organizations.
On and after the effective date | 4 |
| of this amendatory Act of the 92nd General
Assembly, however, | 5 |
| an entity otherwise eligible for this exemption shall not
make | 6 |
| tax-free purchases unless it has an active identification | 7 |
| number issued by
the Department.
| 8 |
| (4) Legal tender, currency, medallions, or gold or silver | 9 |
| coinage
issued by the State of Illinois, the government of the | 10 |
| United States of
America, or the government of any foreign | 11 |
| country, and bullion.
| 12 |
| (5) Until July 1, 2003 and beginning again on September 1, | 13 |
| 2004, graphic arts machinery and equipment, including
repair | 14 |
| and
replacement parts, both new and used, and including that | 15 |
| manufactured on
special order or purchased for lease, certified | 16 |
| by the purchaser to be used
primarily for graphic arts | 17 |
| production.
Equipment includes chemicals or chemicals acting | 18 |
| as catalysts but only if
the
chemicals or chemicals acting as | 19 |
| catalysts effect a direct and immediate change
upon a graphic | 20 |
| arts product.
| 21 |
| (6) Personal property sold by a teacher-sponsored student | 22 |
| organization
affiliated with an elementary or secondary school | 23 |
| located in Illinois.
| 24 |
| (7) Farm machinery and equipment, both new and used, | 25 |
| including that
manufactured on special order, certified by the | 26 |
| purchaser to be used
primarily for production agriculture or | 27 |
| State or federal agricultural
programs, including individual | 28 |
| replacement parts for the machinery and
equipment, including | 29 |
| machinery and equipment purchased for lease,
and including | 30 |
| implements of husbandry defined in Section 1-130 of
the | 31 |
| Illinois Vehicle Code, farm machinery and agricultural | 32 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 33 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 34 |
| but
excluding other motor vehicles required to be registered | 35 |
| under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 36 |
| hoop houses used for propagating, growing, or
overwintering |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| plants shall be considered farm machinery and equipment under
| 2 |
| this item (7).
Agricultural chemical tender tanks and dry boxes | 3 |
| shall include units sold
separately from a motor vehicle | 4 |
| required to be licensed and units sold mounted
on a motor | 5 |
| vehicle required to be licensed if the selling price of the | 6 |
| tender
is separately stated.
| 7 |
| Farm machinery and equipment shall include precision | 8 |
| farming equipment
that is
installed or purchased to be | 9 |
| installed on farm machinery and equipment
including, but not | 10 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 11 |
| or spreaders.
Precision farming equipment includes, but is not | 12 |
| limited to,
soil testing sensors, computers, monitors, | 13 |
| software, global positioning
and mapping systems, and other | 14 |
| such equipment.
| 15 |
| Farm machinery and equipment also includes computers, | 16 |
| sensors, software, and
related equipment used primarily in the
| 17 |
| computer-assisted operation of production agriculture | 18 |
| facilities, equipment,
and activities such as, but
not limited | 19 |
| to,
the collection, monitoring, and correlation of
animal and | 20 |
| crop data for the purpose of
formulating animal diets and | 21 |
| agricultural chemicals. This item (7) is exempt
from the | 22 |
| provisions of
Section 3-55.
| 23 |
| (8) Fuel and petroleum products sold to or used by an air | 24 |
| common
carrier, certified by the carrier to be used for | 25 |
| consumption, shipment,
or storage in the conduct of its | 26 |
| business as an air common carrier, for
a flight destined for or | 27 |
| returning from a location or locations
outside the United | 28 |
| States without regard to previous or subsequent domestic
| 29 |
| stopovers.
| 30 |
| (9) Proceeds of mandatory service charges separately
| 31 |
| stated on customers' bills for the purchase and consumption of | 32 |
| food and
beverages, to the extent that the proceeds of the | 33 |
| service charge are in fact
turned over as tips or as a | 34 |
| substitute for tips to the employees who
participate directly | 35 |
| in preparing, serving, hosting or cleaning up the
food or | 36 |
| beverage function with respect to which the service charge is |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| imposed.
| 2 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 3 |
| and production
equipment,
including (i) rigs and parts of rigs, | 4 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 5 |
| tubular goods, including casing and
drill strings, (iii) pumps | 6 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 7 |
| individual replacement part for oil field exploration,
| 8 |
| drilling, and production equipment, and (vi) machinery and | 9 |
| equipment purchased
for lease; but
excluding motor vehicles | 10 |
| required to be registered under the Illinois
Vehicle Code.
| 11 |
| (11) Photoprocessing machinery and equipment, including | 12 |
| repair and
replacement parts, both new and used, including that | 13 |
| manufactured on
special order, certified by the purchaser to be | 14 |
| used primarily for
photoprocessing, and including | 15 |
| photoprocessing machinery and equipment
purchased for lease.
| 16 |
| (12) Until July 1, 2003, coal exploration, mining, | 17 |
| offhighway hauling,
processing,
maintenance, and reclamation | 18 |
| equipment, including
replacement parts and equipment, and | 19 |
| including
equipment
purchased for lease, but excluding motor | 20 |
| vehicles required to be registered
under the Illinois Vehicle | 21 |
| Code.
| 22 |
| (13) Food for human consumption that is to be consumed off | 23 |
| the premises
where it is sold (other than alcoholic beverages, | 24 |
| soft drinks and food that
has been prepared for immediate | 25 |
| consumption) and prescription and
non-prescription medicines, | 26 |
| drugs, medical appliances, colostomy bags and other supplies | 27 |
| and equipment used for the care of ostomy patients, and | 28 |
| insulin, urine
testing materials, syringes, and needles used by | 29 |
| diabetics, for human use,
when purchased for use by a person | 30 |
| receiving medical assistance under
Article 5 of the Illinois | 31 |
| Public Aid Code who resides in a licensed
long-term care | 32 |
| facility, as defined in the Nursing Home Care Act.
| 33 |
| (14) Semen used for artificial insemination of livestock | 34 |
| for direct
agricultural production.
| 35 |
| (15) Horses, or interests in horses, registered with and | 36 |
| meeting the
requirements of any of the
Arabian Horse Club |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 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.
| 5 |
| (16) Computers and communications equipment utilized for | 6 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 7 |
| analysis, or treatment of hospital patients sold to a lessor | 8 |
| who leases the
equipment, under a lease of one year or longer | 9 |
| executed or in effect at the
time of the purchase, to a
| 10 |
| hospital
that has been issued an active tax exemption | 11 |
| identification number by the
Department under Section 1g of the | 12 |
| Retailers' Occupation Tax Act.
| 13 |
| (17) Personal property sold to a lessor who leases the
| 14 |
| property, under a
lease of one year or longer executed or in | 15 |
| effect at the time of the purchase,
to a governmental body
that | 16 |
| has been issued an active tax exemption identification number | 17 |
| by the
Department under Section 1g of the Retailers' Occupation | 18 |
| Tax Act.
| 19 |
| (18) Beginning with taxable years ending on or after | 20 |
| December
31, 1995
and
ending with taxable years ending on or | 21 |
| before December 31, 2004,
personal property that is
donated for | 22 |
| disaster relief to be used in a State or federally declared
| 23 |
| disaster area in Illinois or bordering Illinois by a | 24 |
| manufacturer or retailer
that is registered in this State to a | 25 |
| corporation, society, association,
foundation, or institution | 26 |
| that has been issued a sales tax exemption
identification | 27 |
| number by the Department that assists victims of the disaster
| 28 |
| who reside within the declared disaster area.
| 29 |
| (19) Beginning with taxable years ending on or after | 30 |
| December
31, 1995 and
ending with taxable years ending on or | 31 |
| before December 31, 2004, personal
property that is used in the | 32 |
| performance of infrastructure repairs in this
State, including | 33 |
| but not limited to municipal roads and streets, access roads,
| 34 |
| bridges, sidewalks, waste disposal systems, water and sewer | 35 |
| line extensions,
water distribution and purification | 36 |
| facilities, storm water drainage and
retention facilities, and |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| sewage treatment facilities, resulting from a State
or | 2 |
| federally declared disaster in Illinois or bordering Illinois | 3 |
| when such
repairs are initiated on facilities located in the | 4 |
| declared disaster area
within 6 months after the disaster.
| 5 |
| (20) Beginning July 1, 1999, game or game birds sold at a | 6 |
| "game breeding
and
hunting preserve area" or an "exotic game | 7 |
| hunting area" as those terms are used
in the
Wildlife Code or | 8 |
| at a hunting enclosure approved through rules adopted by the
| 9 |
| Department of Natural Resources. This paragraph is exempt from | 10 |
| the provisions
of
Section 3-55.
| 11 |
| (21) A motor vehicle, as that term is defined in Section | 12 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 13 |
| corporation, limited liability
company, society, association, | 14 |
| foundation, or institution that is determined by
the Department | 15 |
| to be organized and operated exclusively for educational
| 16 |
| purposes. For purposes of this exemption, "a corporation, | 17 |
| limited liability
company, society, association, foundation, | 18 |
| or institution organized and
operated
exclusively for | 19 |
| educational purposes" means all tax-supported public schools,
| 20 |
| private schools that offer systematic instruction in useful | 21 |
| branches of
learning by methods common to public schools and | 22 |
| that compare favorably in
their scope and intensity with the | 23 |
| course of study presented in tax-supported
schools, and | 24 |
| vocational or technical schools or institutes organized and
| 25 |
| operated exclusively to provide a course of study of not less | 26 |
| than 6 weeks
duration and designed to prepare individuals to | 27 |
| follow a trade or to pursue a
manual, technical, mechanical, | 28 |
| industrial, business, or commercial
occupation.
| 29 |
| (22) Beginning January 1, 2000, personal property, | 30 |
| including
food,
purchased through fundraising
events for the | 31 |
| benefit of
a public or private elementary or
secondary school, | 32 |
| a group of those schools, or one or more school
districts if | 33 |
| the events are
sponsored by an entity recognized by the school | 34 |
| district that consists
primarily of volunteers and includes
| 35 |
| parents and teachers of the school children. This paragraph | 36 |
| does not apply
to fundraising
events (i) for the benefit of |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| private home instruction or (ii)
for which the fundraising | 2 |
| entity purchases the personal property sold at
the events from | 3 |
| another individual or entity that sold the property for the
| 4 |
| purpose of resale by the fundraising entity and that
profits | 5 |
| from the sale to the
fundraising entity. This paragraph is | 6 |
| exempt
from the provisions
of Section 3-55.
| 7 |
| (23) Beginning January 1, 2000
and through December 31, | 8 |
| 2001, new or used automatic vending
machines that prepare and | 9 |
| serve hot food and beverages, including coffee, soup,
and
other | 10 |
| items, and replacement parts for these machines.
Beginning | 11 |
| January 1,
2002 and through June 30, 2003, machines and parts | 12 |
| for
machines used in commercial, coin-operated amusement
and | 13 |
| vending business if a use or occupation tax is paid on the | 14 |
| gross receipts
derived from
the use of the commercial, | 15 |
| coin-operated amusement and vending machines.
This paragraph | 16 |
| is exempt from the provisions of Section 3-55.
| 17 |
| (24) Beginning
on the effective date of this amendatory Act | 18 |
| of the 92nd General Assembly,
computers and communications | 19 |
| equipment
utilized for any hospital purpose and equipment used | 20 |
| in the diagnosis,
analysis, or treatment of hospital patients | 21 |
| sold to a lessor who leases the
equipment, under a lease of one | 22 |
| year or longer executed or in effect at the
time of the | 23 |
| purchase, to a hospital that has been issued an active tax
| 24 |
| exemption identification number by the Department under | 25 |
| Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 26 |
| is exempt from the provisions of
Section 3-55.
| 27 |
| (25) Beginning
on the effective date of this amendatory Act | 28 |
| of the 92nd General Assembly,
personal property sold to a | 29 |
| lessor who
leases the property, under a lease of one year or | 30 |
| longer executed or in effect
at the time of the purchase, to a | 31 |
| governmental body that has been issued an
active tax exemption | 32 |
| identification number by the Department under Section 1g
of the | 33 |
| Retailers' Occupation Tax Act. This paragraph is exempt from | 34 |
| the
provisions of Section 3-55.
| 35 |
| (26) Beginning on January 1, 2002, tangible personal | 36 |
| property
purchased
from an Illinois retailer by a taxpayer |
|
|
|
HB0033 |
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LRB094 00034 BDD 30034 b |
|
| 1 |
| engaged in centralized purchasing
activities in Illinois who | 2 |
| will, upon receipt of the property in Illinois,
temporarily | 3 |
| store the property in Illinois (i) for the purpose of | 4 |
| subsequently
transporting it outside this State for use or | 5 |
| consumption thereafter solely
outside this State or (ii) for | 6 |
| the purpose of being processed, fabricated, or
manufactured | 7 |
| into, attached to, or incorporated into other tangible personal
| 8 |
| property to be transported outside this State and thereafter | 9 |
| used or consumed
solely outside this State. The Director of | 10 |
| Revenue shall, pursuant to rules
adopted in accordance with the | 11 |
| Illinois Administrative Procedure Act, issue a
permit to any | 12 |
| taxpayer in good standing with the Department who is eligible | 13 |
| for
the exemption under this paragraph (26). The permit issued | 14 |
| under
this paragraph (26) shall authorize the holder, to the | 15 |
| extent and
in the manner specified in the rules adopted under | 16 |
| this Act, to purchase
tangible personal property from a | 17 |
| retailer exempt from the taxes imposed by
this Act. Taxpayers | 18 |
| shall maintain all necessary books and records to
substantiate | 19 |
| the use and consumption of all such tangible personal property
| 20 |
| outside of the State of Illinois.
| 21 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 22 |
| eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | 23 |
| 92-488, eff. 8-23-01; 92-651, eff. 7-11-02; 93-24, eff. | 24 |
| 6-20-03; 93-840, eff. 7-30-04.)
| 25 |
| (35 ILCS 115/3-5.5)
| 26 |
| Sec. 3-5.5. Food and drugs sold by not-for-profit | 27 |
| organizations; exemption. The Department shall not collect the | 28 |
| 1% tax imposed on food for human
consumption that is to be | 29 |
| consumed off the premises where it is sold (other
than | 30 |
| alcoholic beverages, soft drinks, and food that has been | 31 |
| prepared for
immediate consumption) and prescription and | 32 |
| nonprescription medicines, drugs,
medical appliances, | 33 |
| colostomy bags and other supplies and equipment used for the | 34 |
| care of ostomy patients, and insulin, urine testing materials, | 35 |
| syringes, and needles
used
by diabetics, for human use from any |
|
|
|
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| 1 |
| not-for-profit organization, that sells
food in a food | 2 |
| distribution program at a price below the retail cost of the
| 3 |
| food to purchasers who, as a condition of participation in the | 4 |
| program, are
required to perform community service, located in | 5 |
| a county or municipality that
notifies the Department, in | 6 |
| writing, that the county or municipality does not
want the tax | 7 |
| to be collected from any of such organizations located
in the | 8 |
| county or municipality.
| 9 |
| (Source: P.A. 88-374.)
| 10 |
| (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| 11 |
| Sec. 3-10. Rate of tax. Unless otherwise provided in this | 12 |
| Section,
the tax imposed by this Act is at the rate of 6.25% of | 13 |
| the "selling price",
as defined in Section 2 of the Service Use | 14 |
| Tax Act, of the tangible
personal property. For the purpose of | 15 |
| computing this tax, in no event
shall the "selling price" be | 16 |
| less than the cost price to the serviceman of
the tangible | 17 |
| personal property transferred. The selling price of each item
| 18 |
| of tangible personal property transferred as an incident of a | 19 |
| sale of
service may be shown as a distinct and separate item on | 20 |
| the serviceman's
billing to the service customer. If the | 21 |
| selling price is not so shown, the
selling price of the | 22 |
| tangible personal property is deemed to be 50% of the
| 23 |
| serviceman's entire billing to the service customer. When, | 24 |
| however, a
serviceman contracts to design, develop, and produce | 25 |
| special order machinery or
equipment, the tax imposed by this | 26 |
| Act shall be based on the serviceman's
cost price of the | 27 |
| tangible personal property transferred incident to the
| 28 |
| completion of the contract.
| 29 |
| Beginning on July 1, 2000 and through December 31, 2000, | 30 |
| with respect to
motor fuel, as defined in Section 1.1 of the | 31 |
| Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 32 |
| the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| 33 |
| With respect to gasohol, as defined in the Use Tax Act, the | 34 |
| tax imposed
by this Act shall apply to (i) 70% of the cost | 35 |
| price of property
transferred as
an incident to the sale of |
|
|
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| 1 |
| service on or after January 1, 1990, and before
July 1, 2003, | 2 |
| (ii) 80% of the selling price of property transferred as an
| 3 |
| incident to the sale of service on or after July
1, 2003 and on | 4 |
| or before December 31, 2013, and (iii) 100%
of
the cost price
| 5 |
| thereafter.
If, at any time, however, the tax under this Act on | 6 |
| sales of gasohol, as
defined in
the Use Tax Act, is imposed at | 7 |
| the rate of 1.25%, then the
tax imposed by this Act applies to | 8 |
| 100% of the proceeds of sales of gasohol
made during that time.
| 9 |
| With respect to majority blended ethanol fuel, as defined | 10 |
| in the Use Tax Act,
the
tax
imposed by this Act does not apply | 11 |
| to the selling price of property transferred
as an incident to | 12 |
| the sale of service on or after July 1, 2003 and on or before
| 13 |
| December 31, 2013 but applies to 100% of the selling price | 14 |
| thereafter.
| 15 |
| With respect to biodiesel blends, as defined in the Use Tax | 16 |
| Act, with no less
than 1% and no
more than 10% biodiesel, the | 17 |
| tax imposed by this Act
applies to (i) 80% of the selling price | 18 |
| of property transferred as an incident
to the sale of service | 19 |
| on or after July 1, 2003 and on or before December 31,
2013 and | 20 |
| (ii) 100% of the proceeds of the selling price
thereafter.
If, | 21 |
| at any time, however, the tax under this Act on sales of | 22 |
| biodiesel blends,
as
defined in the Use Tax Act, with no less | 23 |
| than 1% and no more than 10% biodiesel
is imposed at the rate | 24 |
| of 1.25%, then the
tax imposed by this Act applies to 100% of | 25 |
| the proceeds of sales of biodiesel
blends with no less than 1% | 26 |
| and no more than 10% biodiesel
made
during that time.
| 27 |
| With respect to 100% biodiesel, as defined in the Use Tax | 28 |
| Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 29 |
| more than 10% but no more than 99% biodiesel material, the tax | 30 |
| imposed by this
Act
does not apply to the proceeds of the | 31 |
| selling price of property transferred
as an incident to the | 32 |
| sale of service on or after July 1, 2003 and on or before
| 33 |
| December 31, 2013 but applies to 100% of the selling price | 34 |
| thereafter.
| 35 |
| At the election of any registered serviceman made for each | 36 |
| fiscal year,
sales of service in which the aggregate annual |
|
|
|
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| 1 |
| cost price of tangible
personal property transferred as an | 2 |
| incident to the sales of service is
less than 35%, or 75% in | 3 |
| the case of servicemen transferring prescription
drugs or | 4 |
| servicemen engaged in graphic arts production, of the aggregate
| 5 |
| annual total gross receipts from all sales of service, the tax | 6 |
| imposed by
this Act shall be based on the serviceman's cost | 7 |
| price of the tangible
personal property transferred incident to | 8 |
| the sale of those services.
| 9 |
| The tax shall be imposed at the rate of 1% on food prepared | 10 |
| for
immediate consumption and transferred incident to a sale of | 11 |
| service subject
to this Act or the Service Occupation Tax Act | 12 |
| by an entity licensed under
the Hospital Licensing Act, the | 13 |
| Nursing Home Care Act, or the
Child Care Act of 1969. The tax | 14 |
| shall
also be imposed at the rate of 1% on food for human | 15 |
| consumption that is
to be consumed off the
premises where it is | 16 |
| sold (other than alcoholic beverages, soft drinks, and
food | 17 |
| that has been prepared for immediate consumption and is not
| 18 |
| otherwise included in this paragraph) and prescription and
| 19 |
| nonprescription medicines, drugs, medical appliances, | 20 |
| modifications to a motor
vehicle for the purpose of rendering | 21 |
| it usable by a disabled person, colostomy bags and other | 22 |
| supplies and equipment used for the care of ostomy patients,
| 23 |
| and
insulin, urine testing materials, syringes, and needles | 24 |
| used by diabetics, for
human use. For the purposes of this | 25 |
| Section, the term "soft drinks" means any
complete, finished, | 26 |
| ready-to-use, non-alcoholic drink, whether carbonated or
not, | 27 |
| including but not limited to soda water, cola, fruit juice, | 28 |
| vegetable
juice, carbonated water, and all other preparations | 29 |
| commonly known as soft
drinks of whatever kind or description | 30 |
| that are contained in any closed or
sealed can, carton, or | 31 |
| container, regardless of size. "Soft drinks" does not
include | 32 |
| coffee, tea, non-carbonated water, infant formula, milk or milk
| 33 |
| products as defined in the Grade A Pasteurized Milk and Milk | 34 |
| Products Act, or
drinks containing 50% or more natural fruit or | 35 |
| vegetable juice.
| 36 |
| Notwithstanding any other provisions of this Act, "food for |
|
|
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| human consumption
that is to be consumed off the premises where | 2 |
| it is sold" includes all food
sold through a vending machine, | 3 |
| except soft drinks and food products that are
dispensed hot | 4 |
| from a vending machine, regardless of the location of the | 5 |
| vending
machine.
| 6 |
| (Source: P.A. 93-17, eff. 6-11-03.)
| 7 |
| Section 20. The Retailers' Occupation Tax Act is amended by | 8 |
| changing Sections 2-5, 2-5.5, and 2-10 as follows:
| 9 |
| (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| 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 the | 16 |
| purchaser to be used
primarily for production agriculture or | 17 |
| State or federal agricultural
programs, including individual | 18 |
| replacement parts for the machinery and
equipment, including | 19 |
| machinery and equipment purchased for lease,
and including | 20 |
| implements of husbandry defined in Section 1-130 of
the | 21 |
| Illinois Vehicle Code, farm machinery and agricultural | 22 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 23 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 24 |
| but
excluding other motor vehicles required to be registered | 25 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or | 26 |
| hoop houses used for propagating, growing, or
overwintering | 27 |
| plants shall be considered farm machinery and equipment under
| 28 |
| this item (2).
Agricultural chemical tender tanks and dry boxes | 29 |
| shall include units sold
separately from a motor vehicle | 30 |
| required to be licensed and units sold mounted
on a motor | 31 |
| vehicle required to be licensed, if the selling price of the | 32 |
| tender
is separately stated.
| 33 |
| Farm machinery and equipment shall include precision | 34 |
| farming equipment
that is
installed or purchased to be |
|
|
|
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| 1 |
| installed on farm machinery and equipment
including, but not | 2 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 3 |
| or spreaders.
Precision farming equipment includes, but is not | 4 |
| limited to,
soil testing sensors, computers, monitors, | 5 |
| software, global positioning
and mapping systems, and other | 6 |
| such equipment.
| 7 |
| Farm machinery and equipment also includes computers, | 8 |
| sensors, software, and
related equipment used primarily in the
| 9 |
| computer-assisted operation of production agriculture | 10 |
| facilities, equipment,
and activities such as, but
not limited | 11 |
| to,
the collection, monitoring, and correlation of
animal and | 12 |
| crop data for the purpose of
formulating animal diets and | 13 |
| agricultural chemicals. This item (7) is exempt
from the | 14 |
| provisions of
Section 2-70.
| 15 |
| (3) Until July 1, 2003, distillation machinery and | 16 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 17 |
| retailer, certified by the user to be used
only for the | 18 |
| production of ethyl alcohol that will be used for consumption
| 19 |
| as motor fuel or as a component of motor fuel for the personal | 20 |
| use of the
user, and not subject to sale or resale.
| 21 |
| (4) Until July 1, 2003 and beginning again September 1, | 22 |
| 2004, graphic arts machinery and equipment, including
repair | 23 |
| and
replacement parts, both new and used, and including that | 24 |
| manufactured on
special order or purchased for lease, certified | 25 |
| by the purchaser to be used
primarily for graphic arts | 26 |
| production.
Equipment includes chemicals or
chemicals acting | 27 |
| as catalysts but only if
the chemicals or chemicals acting as | 28 |
| catalysts effect a direct and immediate
change upon a
graphic | 29 |
| arts product.
| 30 |
| (5) A motor vehicle of the first division, a motor vehicle | 31 |
| of the second
division that is a self-contained motor vehicle | 32 |
| designed or permanently
converted to provide living quarters | 33 |
| for recreational, camping, or travel
use, with direct walk | 34 |
| through access to the living quarters from the
driver's seat, | 35 |
| or a motor vehicle of the second division that is of the van
| 36 |
| configuration designed for the transportation of not less than |
|
|
|
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| 7 nor more
than 16 passengers, as defined in Section 1-146 of | 2 |
| the Illinois Vehicle
Code, that is used for automobile renting, | 3 |
| as defined in the Automobile
Renting Occupation and Use Tax | 4 |
| Act.
| 5 |
| (6) Personal property sold by a teacher-sponsored student | 6 |
| organization
affiliated with an elementary or secondary school | 7 |
| located in Illinois.
| 8 |
| (7) Until July 1, 2003, proceeds of that portion of the | 9 |
| selling price of
a passenger car the
sale of which is subject | 10 |
| to the Replacement Vehicle Tax.
| 11 |
| (8) Personal property sold to an Illinois county fair | 12 |
| association for
use in conducting, operating, or promoting the | 13 |
| county fair.
| 14 |
| (9) Personal property sold to a not-for-profit arts
or | 15 |
| cultural organization that establishes, by proof required by | 16 |
| the Department
by
rule, that it has received an exemption under | 17 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 18 |
| organized and operated primarily for the
presentation
or | 19 |
| support of arts or cultural programming, activities, or | 20 |
| services. These
organizations include, but are not limited to, | 21 |
| music and dramatic arts
organizations such as symphony | 22 |
| orchestras and theatrical groups, arts and
cultural service | 23 |
| organizations, local arts councils, visual arts organizations,
| 24 |
| and media arts organizations.
On and after the effective date | 25 |
| of this amendatory Act of the 92nd General
Assembly, however, | 26 |
| an entity otherwise eligible for this exemption shall not
make | 27 |
| tax-free purchases unless it has an active identification | 28 |
| number issued by
the Department.
| 29 |
| (10) Personal property sold by a corporation, society, | 30 |
| association,
foundation, institution, or organization, other | 31 |
| than a limited liability
company, that is organized and | 32 |
| operated as a not-for-profit service enterprise
for the benefit | 33 |
| of persons 65 years of age or older if the personal property
| 34 |
| was not purchased by the enterprise for the purpose of resale | 35 |
| by the
enterprise.
| 36 |
| (11) Personal property sold to a governmental body, to a |
|
|
|
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| 1 |
| corporation,
society, association, foundation, or institution | 2 |
| organized and operated
exclusively for charitable, religious, | 3 |
| or educational purposes, or to a
not-for-profit corporation, | 4 |
| society, association, foundation, institution,
or organization | 5 |
| that has no compensated officers or employees and that is
| 6 |
| organized and operated primarily for the recreation of persons | 7 |
| 55 years of
age or older. A limited liability company may | 8 |
| qualify for the exemption under
this paragraph only if the | 9 |
| limited liability company is organized and operated
| 10 |
| exclusively for educational purposes. On and after July 1, | 11 |
| 1987, however, no
entity otherwise eligible for this exemption | 12 |
| shall make tax-free purchases
unless it has an active | 13 |
| identification number issued by the Department.
| 14 |
| (12) Tangible personal property sold to
interstate | 15 |
| carriers
for hire for use as
rolling stock moving in interstate | 16 |
| commerce or to lessors under leases of
one year or longer | 17 |
| executed or in effect at the time of purchase by
interstate | 18 |
| carriers for hire for use as rolling stock moving in interstate
| 19 |
| commerce and equipment operated by a telecommunications | 20 |
| provider, licensed as a
common carrier by the Federal | 21 |
| Communications Commission, which is permanently
installed in | 22 |
| or affixed to aircraft moving in interstate commerce.
| 23 |
| (12-5) On and after July 1, 2003 and through June 30, 2004, | 24 |
| motor vehicles of the second division
with a gross vehicle | 25 |
| weight in excess of 8,000 pounds
that
are
subject to the | 26 |
| commercial distribution fee imposed under Section 3-815.1 of
| 27 |
| the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 28 |
| through June 30, 2005, the use in this State of motor vehicles | 29 |
| of the second division: (i) with a gross vehicle weight rating | 30 |
| in excess of 8,000 pounds; (ii) that are subject to the | 31 |
| commercial distribution fee imposed under Section 3-815.1 of | 32 |
| the Illinois Vehicle Code; and (iii) that are primarily used | 33 |
| for commercial purposes. Through June 30, 2005, this
exemption | 34 |
| applies to repair and replacement parts added
after the
initial | 35 |
| purchase of such a motor vehicle if that motor vehicle is used | 36 |
| in a
manner that
would qualify for the rolling stock exemption |
|
|
|
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| 1 |
| otherwise provided for in this
Act. For purposes of this | 2 |
| paragraph, "used for commercial purposes" means the | 3 |
| transportation of persons or property in furtherance of any | 4 |
| commercial or industrial enterprise whether for-hire or not.
| 5 |
| (13) Proceeds from sales to owners, lessors, or
shippers of
| 6 |
| tangible personal property that is utilized by interstate | 7 |
| carriers for
hire for use as rolling stock moving in interstate | 8 |
| commerce
and equipment operated by a telecommunications | 9 |
| provider, licensed as a
common carrier by the Federal | 10 |
| Communications Commission, which is
permanently installed in | 11 |
| or affixed to aircraft moving in interstate commerce.
| 12 |
| (14) Machinery and equipment that will be used by the | 13 |
| purchaser, or a
lessee of the purchaser, primarily in the | 14 |
| process of manufacturing or
assembling tangible personal | 15 |
| property for wholesale or retail sale or
lease, whether the | 16 |
| sale or lease is made directly by the manufacturer or by
some | 17 |
| other person, whether the materials used in the process are | 18 |
| owned by
the manufacturer or some other person, or whether the | 19 |
| sale or lease is made
apart from or as an incident to the | 20 |
| seller's engaging in the service
occupation of producing | 21 |
| machines, tools, dies, jigs, patterns, gauges, or
other similar | 22 |
| items of no commercial value on special order for a particular
| 23 |
| purchaser.
| 24 |
| (15) Proceeds of mandatory service charges separately | 25 |
| stated on
customers' bills for purchase and consumption of food | 26 |
| and beverages, to the
extent that the proceeds of the service | 27 |
| charge are in fact turned over as
tips or as a substitute for | 28 |
| tips to the employees who participate directly
in preparing, | 29 |
| serving, hosting or cleaning up the food or beverage function
| 30 |
| with respect to which the service charge is imposed.
| 31 |
| (16) Petroleum products sold to a purchaser if the seller
| 32 |
| is prohibited by federal law from charging tax to the | 33 |
| purchaser.
| 34 |
| (17) Tangible personal property sold to a common carrier by | 35 |
| rail or
motor that
receives the physical possession of the | 36 |
| property in Illinois and that
transports the property, or |
|
|
|
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| 1 |
| shares with another common carrier in the
transportation of the | 2 |
| property, out of Illinois on a standard uniform bill
of lading | 3 |
| showing the seller of the property as the shipper or consignor | 4 |
| of
the property to a destination outside Illinois, for use | 5 |
| outside Illinois.
| 6 |
| (18) Legal tender, currency, medallions, or gold or silver | 7 |
| coinage
issued by the State of Illinois, the government of the | 8 |
| United States of
America, or the government of any foreign | 9 |
| country, and bullion.
| 10 |
| (19) Until July 1 2003, oil field exploration, drilling, | 11 |
| and production
equipment, including
(i) rigs and parts of rigs, | 12 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 13 |
| tubular goods, including casing and
drill strings, (iii) pumps | 14 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 15 |
| individual replacement part for oil field exploration,
| 16 |
| drilling, and production equipment, and (vi) machinery and | 17 |
| equipment purchased
for lease; but
excluding motor vehicles | 18 |
| required to be registered under the Illinois
Vehicle Code.
| 19 |
| (20) Photoprocessing machinery and equipment, including | 20 |
| repair and
replacement parts, both new and used, including that | 21 |
| manufactured on
special order, certified by the purchaser to be | 22 |
| used primarily for
photoprocessing, and including | 23 |
| photoprocessing machinery and equipment
purchased for lease.
| 24 |
| (21) Until July 1, 2003, coal exploration, mining, | 25 |
| offhighway hauling,
processing,
maintenance, and reclamation | 26 |
| equipment, including
replacement parts and equipment, and | 27 |
| including
equipment purchased for lease, but excluding motor | 28 |
| vehicles required to be
registered under the Illinois Vehicle | 29 |
| Code.
| 30 |
| (22) Fuel and petroleum products sold to or used by an air | 31 |
| carrier,
certified by the carrier to be used for consumption, | 32 |
| shipment, or storage
in the conduct of its business as an air | 33 |
| common carrier, for a flight
destined for or returning from a | 34 |
| location or locations
outside the United States without regard | 35 |
| to previous or subsequent domestic
stopovers.
| 36 |
| (23) A transaction in which the purchase order is received |
|
|
|
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| 1 |
| by a florist
who is located outside Illinois, but who has a | 2 |
| florist located in Illinois
deliver the property to the | 3 |
| 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 delivered | 8 |
| by the seller to the purchaser's barge, ship, or vessel
while | 9 |
| it is afloat upon that bordering river.
| 10 |
| (25) A motor vehicle sold in this State to a nonresident | 11 |
| even though the
motor vehicle is delivered to the nonresident | 12 |
| in this State, if the motor
vehicle is not to be titled in this | 13 |
| State, and if a drive-away permit
is issued to the motor | 14 |
| vehicle as provided in Section 3-603 of the Illinois
Vehicle | 15 |
| Code or if the nonresident purchaser has vehicle registration
| 16 |
| plates to transfer to the motor vehicle upon returning to his | 17 |
| or her home
state. The issuance of the drive-away permit or | 18 |
| having
the
out-of-state registration plates to be transferred | 19 |
| is prima facie evidence
that the motor vehicle will not be | 20 |
| titled in this State.
| 21 |
| (26) Semen used for artificial insemination of livestock | 22 |
| for direct
agricultural production.
| 23 |
| (27) Horses, or interests in horses, registered with and | 24 |
| meeting the
requirements of any of the
Arabian Horse Club | 25 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 26 |
| Horse Association, United States
Trotting Association, or | 27 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 28 |
| racing for prizes.
| 29 |
| (28) Computers and communications equipment utilized for | 30 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 31 |
| analysis, or treatment of hospital patients sold to a lessor | 32 |
| who leases the
equipment, under a lease of one year or longer | 33 |
| executed or in effect at the
time of the purchase, to a
| 34 |
| hospital
that has been issued an active tax exemption | 35 |
| identification number by the
Department under Section 1g of | 36 |
| this Act.
|
|
|
|
HB0033 |
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| 1 |
| (29) Personal property sold to a lessor who leases the
| 2 |
| property, under a
lease of one year or longer executed or in | 3 |
| effect at the time of the purchase,
to a governmental body
that | 4 |
| has been issued an active tax exemption identification number | 5 |
| by the
Department under Section 1g of this Act.
| 6 |
| (30) Beginning with taxable years ending on or after | 7 |
| December
31, 1995
and
ending with taxable years ending on or | 8 |
| before December 31, 2004,
personal property that is
donated for | 9 |
| disaster relief to be used in a State or federally declared
| 10 |
| disaster area in Illinois or bordering Illinois by a | 11 |
| manufacturer or retailer
that is registered in this State to a | 12 |
| corporation, society, association,
foundation, or institution | 13 |
| that has been issued a sales tax exemption
identification | 14 |
| number by the Department that assists victims of the disaster
| 15 |
| who reside within the declared disaster area.
| 16 |
| (31) Beginning with taxable years ending on or after | 17 |
| December
31, 1995 and
ending with taxable years ending on or | 18 |
| before December 31, 2004, personal
property that is used in the | 19 |
| performance of infrastructure repairs in this
State, including | 20 |
| but not limited to municipal roads and streets, access roads,
| 21 |
| bridges, sidewalks, waste disposal systems, water and sewer | 22 |
| line extensions,
water distribution and purification | 23 |
| facilities, storm water drainage and
retention facilities, and | 24 |
| sewage treatment facilities, resulting from a State
or | 25 |
| federally declared disaster in Illinois or bordering Illinois | 26 |
| when such
repairs are initiated on facilities located in the | 27 |
| declared disaster area
within 6 months after the disaster.
| 28 |
| (32) Beginning July 1, 1999, game or game birds sold at a | 29 |
| "game breeding
and
hunting preserve area" or an "exotic game | 30 |
| hunting area" as those terms are used
in the
Wildlife Code or | 31 |
| at a hunting enclosure approved through rules adopted by the
| 32 |
| Department of Natural Resources. This paragraph is exempt from | 33 |
| the provisions
of
Section 2-70.
| 34 |
| (33) A motor vehicle, as that term is defined in Section | 35 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 36 |
| corporation, limited liability
company, society, association, |
|
|
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| foundation, or institution that is determined by
the Department | 2 |
| to be organized and operated exclusively for educational
| 3 |
| purposes. For purposes of this exemption, "a corporation, | 4 |
| limited liability
company, society, association, foundation, | 5 |
| or institution organized and
operated
exclusively for | 6 |
| educational purposes" means all tax-supported public schools,
| 7 |
| private schools that offer systematic instruction in useful | 8 |
| branches of
learning by methods common to public schools and | 9 |
| that compare favorably in
their scope and intensity with the | 10 |
| course of study presented in tax-supported
schools, and | 11 |
| vocational or technical schools or institutes organized and
| 12 |
| operated exclusively to provide a course of study of not less | 13 |
| than 6 weeks
duration and designed to prepare individuals to | 14 |
| follow a trade or to pursue a
manual, technical, mechanical, | 15 |
| industrial, business, or commercial
occupation.
| 16 |
| (34) Beginning January 1, 2000, personal property, | 17 |
| including food, purchased
through fundraising events for the | 18 |
| benefit of a public or private elementary or
secondary school, | 19 |
| a group of those schools, or one or more school districts if
| 20 |
| the events are sponsored by an entity recognized by the school | 21 |
| district that
consists primarily of volunteers and includes | 22 |
| parents and teachers of the
school children. This paragraph | 23 |
| does not apply to fundraising events (i) for
the benefit of | 24 |
| private home instruction or (ii) for which the fundraising
| 25 |
| entity purchases the personal property sold at the events from | 26 |
| another
individual or entity that sold the property for the | 27 |
| purpose of resale by the
fundraising entity and that profits | 28 |
| from the sale to the fundraising entity.
This paragraph is | 29 |
| exempt from the provisions of Section 2-70.
| 30 |
| (35) Beginning January 1, 2000 and through December 31, | 31 |
| 2001, new or used
automatic vending machines that prepare and | 32 |
| serve hot food and beverages,
including coffee, soup, and other | 33 |
| items, and replacement parts for these
machines. Beginning | 34 |
| January 1, 2002 and through June 30, 2003, machines
and parts | 35 |
| for machines used in
commercial, coin-operated amusement and | 36 |
| vending business if a use or occupation
tax is paid on the |
|
|
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| 1 |
| gross receipts derived from the use of the commercial,
| 2 |
| coin-operated amusement and vending machines. This paragraph | 3 |
| is exempt from
the provisions of Section 2-70.
| 4 |
| (35-5) Food for human consumption that is to be consumed | 5 |
| off
the premises where it is sold (other than alcoholic | 6 |
| beverages, soft drinks,
and food that has been prepared for | 7 |
| immediate consumption) and prescription
and nonprescription | 8 |
| medicines, drugs, medical appliances, colostomy bags and other | 9 |
| supplies and equipment used for the care of ostomy patients, | 10 |
| and insulin, urine
testing materials, syringes, and needles | 11 |
| used by diabetics, for human use, when
purchased for use by a | 12 |
| person receiving medical assistance under Article 5 of
the | 13 |
| Illinois Public Aid Code who resides in a licensed long-term | 14 |
| care facility,
as defined in the Nursing Home Care Act.
| 15 |
| (36) Beginning August 2, 2001, computers and | 16 |
| communications equipment
utilized for any hospital purpose and | 17 |
| equipment used in the diagnosis,
analysis, or treatment of | 18 |
| hospital patients sold to a lessor who leases the
equipment, | 19 |
| under a lease of one year or longer executed or in effect at | 20 |
| the
time of the purchase, to a hospital that has been issued an | 21 |
| active tax
exemption identification number by the Department | 22 |
| under Section 1g of this Act.
This paragraph is exempt from the | 23 |
| provisions of Section 2-70.
| 24 |
| (37) Beginning August 2, 2001, personal property sold to a | 25 |
| lessor who
leases the property, under a lease of one year or | 26 |
| longer executed or in effect
at the time of the purchase, to a | 27 |
| governmental body that has been issued an
active tax exemption | 28 |
| identification number by the Department under Section 1g
of | 29 |
| this Act. This paragraph is exempt from the provisions of | 30 |
| Section 2-70.
| 31 |
| (38) Beginning on January 1, 2002, tangible personal | 32 |
| property purchased
from an Illinois retailer by a taxpayer | 33 |
| engaged in centralized purchasing
activities in Illinois who | 34 |
| will, upon receipt of the property in Illinois,
temporarily | 35 |
| store the property in Illinois (i) for the purpose of | 36 |
| subsequently
transporting it outside this State for use or |
|
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| consumption thereafter solely
outside this State or (ii) for | 2 |
| the purpose of being processed, fabricated, or
manufactured | 3 |
| into, attached to, or incorporated into other tangible personal
| 4 |
| property to be transported outside this State and thereafter | 5 |
| used or consumed
solely outside this State. The Director of | 6 |
| Revenue shall, pursuant to rules
adopted in accordance with the | 7 |
| Illinois Administrative Procedure Act, issue a
permit to any | 8 |
| taxpayer in good standing with the Department who is eligible | 9 |
| for
the exemption under this paragraph (38). The permit issued | 10 |
| under
this paragraph (38) shall authorize the holder, to the | 11 |
| extent and
in the manner specified in the rules adopted under | 12 |
| this Act, to purchase
tangible personal property from a | 13 |
| retailer exempt from the taxes imposed by
this Act. Taxpayers | 14 |
| shall maintain all necessary books and records to
substantiate | 15 |
| the use and consumption of all such tangible personal property
| 16 |
| outside of the State of Illinois.
| 17 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 18 |
| eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | 19 |
| 92-488, eff. 8-23-01; 92-651, eff. 7-11-02; 92-680, eff. | 20 |
| 7-16-02; 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, eff. | 21 |
| 7-30-04; 93-1033, eff. 9-3-04; revised 9-14-04.)
| 22 |
| (35 ILCS 120/2-5.5)
| 23 |
| Sec. 2-5.5. Food and drugs sold by not-for-profit | 24 |
| organizations; exemption. The Department shall not collect the | 25 |
| 1% tax imposed on food for human
consumption that is to be | 26 |
| consumed off the premises where it is sold (other
than | 27 |
| alcoholic beverages, soft drinks, and food that has been | 28 |
| prepared for
immediate consumption) and prescription and | 29 |
| nonprescription medicines, drugs,
medical appliances, | 30 |
| colostomy bags and other supplies and equipment used for the | 31 |
| care of ostomy patients, and insulin, urine testing materials, | 32 |
| syringes, and needles
used
by diabetics, for human use from any | 33 |
| not-for-profit organization, that sells
food in a food | 34 |
| distribution program at a price below the retail cost of the
| 35 |
| food to purchasers who, as a condition of participation in the |
|
|
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| program, are
required to perform community service, located in | 2 |
| a county or municipality that
notifies the Department, in | 3 |
| writing, that the county or municipality does not
want the tax | 4 |
| to be collected from any of such organizations located
in the | 5 |
| county or municipality.
| 6 |
| (Source: P.A. 88-374.)
| 7 |
| (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
| 8 |
| Sec. 2-10. Rate of tax. Unless otherwise provided in this | 9 |
| Section,
the tax imposed by this Act is at the rate of 6.25% of | 10 |
| gross receipts
from sales of tangible personal property made in | 11 |
| the course of business.
| 12 |
| Beginning on July 1, 2000 and through December 31, 2000, | 13 |
| with respect to
motor fuel, as defined in Section 1.1 of the | 14 |
| Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | 15 |
| the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| 16 |
| Within 14 days after the effective date of this amendatory | 17 |
| Act of the 91st
General Assembly, each retailer of motor fuel | 18 |
| and gasohol shall cause the
following notice to be posted in a | 19 |
| prominently visible place on each retail
dispensing device that | 20 |
| is used to dispense motor
fuel or gasohol in the State of | 21 |
| Illinois: "As of July 1, 2000, the State of
Illinois has | 22 |
| eliminated the State's share of sales tax on motor fuel and
| 23 |
| gasohol through December 31, 2000. The price on this pump | 24 |
| should reflect the
elimination of the tax." The notice shall be | 25 |
| printed in bold print on a sign
that is no smaller than 4 | 26 |
| inches by 8 inches. The sign shall be clearly
visible to | 27 |
| customers. Any retailer who fails to post or maintain a | 28 |
| required
sign through December 31, 2000 is guilty of a petty | 29 |
| offense for which the fine
shall be $500 per day per each | 30 |
| retail premises where a violation occurs.
| 31 |
| With respect to gasohol, as defined in the Use Tax Act, the | 32 |
| tax imposed
by this Act applies to (i) 70% of the proceeds of | 33 |
| sales made on or after
January 1, 1990, and before July 1, | 34 |
| 2003, (ii) 80% of the proceeds of
sales made on or after July | 35 |
| 1, 2003 and on or before December 31,
2013, and (iii) 100% of |
|
|
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| the proceeds of sales
made thereafter.
If, at any time, | 2 |
| however, the tax under this Act on sales of gasohol, as
defined | 3 |
| in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| 4 |
| tax imposed by this Act applies to 100% of the proceeds of | 5 |
| sales of gasohol
made during that time.
| 6 |
| With respect to majority blended ethanol fuel, as defined | 7 |
| in the Use Tax Act,
the
tax
imposed by this Act does not apply | 8 |
| to the proceeds of sales made on or after
July 1, 2003 and on or | 9 |
| before December 31, 2013 but applies to 100% of the
proceeds of | 10 |
| sales made thereafter.
| 11 |
| With respect to biodiesel blends, as defined in the Use Tax | 12 |
| Act, with no less
than 1% and no
more than 10% biodiesel, the | 13 |
| tax imposed by this Act
applies to (i) 80% of the proceeds of | 14 |
| sales made on or after July 1, 2003
and on or before December | 15 |
| 31, 2013 and (ii) 100% of the
proceeds of sales made | 16 |
| thereafter.
If, at any time, however, the tax under this Act on | 17 |
| sales of biodiesel blends,
as
defined in the Use Tax Act, with | 18 |
| no less than 1% and no more than 10% biodiesel
is imposed at | 19 |
| the rate of 1.25%, then the
tax imposed by this Act applies to | 20 |
| 100% of the proceeds of sales of biodiesel
blends with no less | 21 |
| than 1% and no more than 10% biodiesel
made
during that time.
| 22 |
| With respect to 100% biodiesel, as defined in the Use Tax | 23 |
| Act, and biodiesel
blends, as defined in the Use Tax Act, with
| 24 |
| more than 10% but no more than 99% biodiesel, the tax imposed | 25 |
| by this Act
does not apply to the proceeds of sales made on or | 26 |
| after July 1, 2003
and on or before December 31, 2013 but | 27 |
| applies to 100% of the
proceeds of sales made thereafter.
| 28 |
| With respect to food for human consumption that is to be | 29 |
| consumed off the
premises where it is sold (other than | 30 |
| alcoholic beverages, soft drinks, and
food that has been | 31 |
| prepared for immediate consumption) and prescription and
| 32 |
| nonprescription medicines, drugs, medical appliances, | 33 |
| modifications to a motor
vehicle for the purpose of rendering | 34 |
| it usable by a disabled person, colostomy bags and other | 35 |
| supplies and equipment used for the care of ostomy patients,
| 36 |
| and
insulin, urine testing materials, syringes, and needles |
|
|
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| used by diabetics, for
human use, the tax is imposed at the | 2 |
| rate of 1%. For the purposes of this
Section, the term "soft | 3 |
| drinks" means any complete, finished, ready-to-use,
| 4 |
| non-alcoholic drink, whether carbonated or not, including but | 5 |
| not limited to
soda water, cola, fruit juice, vegetable juice, | 6 |
| carbonated water, and all other
preparations commonly known as | 7 |
| soft drinks of whatever kind or description that
are contained | 8 |
| in any closed or sealed bottle, can, carton, or container,
| 9 |
| regardless of size. "Soft drinks" does not include coffee, tea, | 10 |
| non-carbonated
water, infant formula, milk or milk products as | 11 |
| defined in the Grade A
Pasteurized Milk and Milk Products Act, | 12 |
| or drinks containing 50% or more
natural fruit or vegetable | 13 |
| juice.
| 14 |
| Notwithstanding any other provisions of this
Act, "food for | 15 |
| human consumption that is to be consumed off the premises where
| 16 |
| it is sold" includes all food sold through a vending machine, | 17 |
| except soft
drinks and food products that are dispensed hot | 18 |
| from a vending machine,
regardless of the location of the | 19 |
| vending machine.
| 20 |
| (Source: P.A. 93-17, eff. 6-11-03.)
|
|