Full Text of SB2243 098th General Assembly
SB2243enr 98TH GENERAL ASSEMBLY |
| | SB2243 Enrolled | | LRB098 09659 HLH 39805 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Use Tax Act is amended by changing Sections | 5 | | 3, 3-5, 3-25, and 3-50 as follows:
| 6 | | (35 ILCS 105/3) (from Ch. 120, par. 439.3)
| 7 | | Sec. 3. Tax imposed. A tax is imposed upon the privilege of | 8 | | using in
this State tangible personal property purchased at | 9 | | retail from a
retailer, including computer software, and
| 10 | | including photographs, negatives, and positives that are the | 11 | | product of
photoprocessing, but not including products of | 12 | | photoprocessing produced for
use in motion pictures for | 13 | | commercial exhibition.
Beginning January 1, 2001, prepaid | 14 | | telephone calling arrangements shall be
considered tangible | 15 | | personal property subject to the tax imposed under this Act
| 16 | | regardless of the form in which those arrangements may be | 17 | | embodied,
transmitted, or fixed by any method now known or | 18 | | hereafter developed. Purchases of (1) electricity delivered to | 19 | | customers by wire; (2) natural or artificial gas that is | 20 | | delivered to customers through pipes, pipelines, or mains; and | 21 | | (3) water that is delivered to customers through pipes, | 22 | | pipelines, or mains are not subject to tax under this Act. The | 23 | | provisions of this amendatory Act of the 98th General Assembly |
| | | SB2243 Enrolled | - 2 - | LRB098 09659 HLH 39805 b |
|
| 1 | | are declaratory of existing law as to the meaning and scope of | 2 | | this Act.
| 3 | | (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
| 4 | | (35 ILCS 105/3-5)
| 5 | | Sec. 3-5. Exemptions. Use of the following tangible | 6 | | personal property
is exempt from the tax imposed by this Act:
| 7 | | (1) Personal property purchased from a corporation, | 8 | | society, association,
foundation, institution, or | 9 | | organization, other than a limited liability
company, that is | 10 | | organized and operated as a not-for-profit service enterprise
| 11 | | for the benefit of persons 65 years of age or older if the | 12 | | personal property
was not purchased by the enterprise for the | 13 | | purpose of resale by the
enterprise.
| 14 | | (2) Personal property purchased by a not-for-profit | 15 | | Illinois county
fair association for use in conducting, | 16 | | operating, or promoting the
county fair.
| 17 | | (3) Personal property purchased by a not-for-profit
arts or | 18 | | cultural organization that establishes, by proof required by | 19 | | the
Department by
rule, that it has received an exemption under | 20 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 21 | | organized and operated primarily for the
presentation
or | 22 | | support of arts or cultural programming, activities, or | 23 | | services. These
organizations include, but are not limited to, | 24 | | music and dramatic arts
organizations such as symphony | 25 | | orchestras and theatrical groups, arts and
cultural service |
| | | SB2243 Enrolled | - 3 - | LRB098 09659 HLH 39805 b |
|
| 1 | | organizations, local arts councils, visual arts organizations,
| 2 | | and media arts organizations.
On and after the effective date | 3 | | of this amendatory Act of the 92nd General
Assembly, however, | 4 | | an entity otherwise eligible for this exemption shall not
make | 5 | | tax-free purchases unless it has an active identification | 6 | | number issued by
the Department.
| 7 | | (4) Personal property purchased by a governmental body, by | 8 | | a
corporation, society, association, foundation, or | 9 | | institution organized and
operated exclusively for charitable, | 10 | | religious, or educational purposes, or
by a not-for-profit | 11 | | corporation, society, association, foundation,
institution, or | 12 | | organization that has no compensated officers or employees
and | 13 | | that is organized and operated primarily for the recreation of | 14 | | persons
55 years of age or older. A limited liability company | 15 | | may qualify for the
exemption under this paragraph only if the | 16 | | limited liability company is
organized and operated | 17 | | exclusively for educational purposes. On and after July
1, | 18 | | 1987, however, no entity otherwise eligible for this exemption | 19 | | shall make
tax-free purchases unless it has an active exemption | 20 | | identification number
issued by the Department.
| 21 | | (5) Until July 1, 2003, a passenger car that is a | 22 | | replacement vehicle to
the extent that the
purchase price of | 23 | | the car is subject to the Replacement Vehicle Tax.
| 24 | | (6) Until July 1, 2003 and beginning again on September 1, | 25 | | 2004 through August 30, 2014, graphic arts machinery and | 26 | | equipment, including
repair and replacement
parts, both new and |
| | | SB2243 Enrolled | - 4 - | LRB098 09659 HLH 39805 b |
|
| 1 | | used, and including that manufactured on special order,
| 2 | | certified by the purchaser to be used primarily for graphic | 3 | | arts production,
and including machinery and equipment | 4 | | purchased for lease.
Equipment includes chemicals or chemicals | 5 | | acting as catalysts but only if
the
chemicals or chemicals | 6 | | acting as catalysts effect a direct and immediate change
upon a | 7 | | graphic arts product.
| 8 | | (7) Farm chemicals.
| 9 | | (8) Legal tender, currency, medallions, or gold or silver | 10 | | coinage issued by
the State of Illinois, the government of the | 11 | | United States of America, or the
government of any foreign | 12 | | country, and bullion.
| 13 | | (9) Personal property purchased from a teacher-sponsored | 14 | | student
organization affiliated with an elementary or | 15 | | secondary school located in
Illinois.
| 16 | | (10) A motor vehicle of the first division, a motor vehicle | 17 | | of the
second division that is a self-contained motor vehicle | 18 | | designed or
permanently converted to provide living quarters | 19 | | for recreational, camping,
or travel use, with direct walk | 20 | | through to the living quarters from the
driver's seat, or a | 21 | | motor vehicle of the second division that is of the
van | 22 | | configuration designed for the transportation of not less than | 23 | | 7 nor
more than 16 passengers, as defined in Section 1-146 of | 24 | | the Illinois
Vehicle Code, that is used for automobile renting, | 25 | | as defined in the
Automobile Renting Occupation and Use Tax | 26 | | Act.
|
| | | SB2243 Enrolled | - 5 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (11) Farm machinery and equipment, both new and used,
| 2 | | including that manufactured on special order, certified by the | 3 | | purchaser
to be used primarily for production agriculture or | 4 | | State or federal
agricultural programs, including individual | 5 | | replacement parts for
the machinery and equipment, including | 6 | | machinery and equipment
purchased
for lease,
and including | 7 | | implements of husbandry defined in Section 1-130 of
the | 8 | | Illinois Vehicle Code, farm machinery and agricultural | 9 | | chemical and
fertilizer spreaders, and nurse wagons required to | 10 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 11 | | but excluding other motor
vehicles required to be
registered | 12 | | under the Illinois Vehicle Code.
Horticultural polyhouses or | 13 | | hoop houses used for propagating, growing, or
overwintering | 14 | | plants shall be considered farm machinery and equipment under
| 15 | | this item (11).
Agricultural chemical tender tanks and dry | 16 | | boxes shall include units sold
separately from a motor vehicle | 17 | | required to be licensed and units sold mounted
on a motor | 18 | | vehicle required to be licensed if the selling price of the | 19 | | tender
is separately stated.
| 20 | | Farm machinery and equipment shall include precision | 21 | | farming equipment
that is
installed or purchased to be | 22 | | installed on farm machinery and equipment
including, but not | 23 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 24 | | or spreaders.
Precision farming equipment includes, but is not | 25 | | limited to, soil testing
sensors, computers, monitors, | 26 | | software, global positioning
and mapping systems, and other |
| | | SB2243 Enrolled | - 6 - | LRB098 09659 HLH 39805 b |
|
| 1 | | such equipment.
| 2 | | Farm machinery and equipment also includes computers, | 3 | | sensors, software, and
related equipment used primarily in the
| 4 | | 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.
| 10 | | (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
| 16 | | stopovers.
| 17 | | (13) Proceeds of mandatory service charges separately
| 18 | | 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,
| 23 | | hosting or cleaning up the food or beverage function with | 24 | | respect to which
the service charge is imposed.
| 25 | | (14) Until July 1, 2003, oil field exploration, drilling, | 26 | | and production
equipment,
including (i) rigs and parts of rigs, |
| | | SB2243 Enrolled | - 7 - | LRB098 09659 HLH 39805 b |
|
| 1 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 2 | | tubular goods,
including casing and drill strings, (iii) pumps | 3 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 4 | | individual replacement part for oil
field exploration, | 5 | | drilling, and production equipment, and (vi) machinery and
| 6 | | equipment purchased
for lease; but excluding motor vehicles | 7 | | required to be registered under the
Illinois Vehicle Code.
| 8 | | (15) Photoprocessing machinery and equipment, including | 9 | | repair and
replacement parts, both new and used, including that
| 10 | | manufactured on special order, certified by the purchaser to be | 11 | | used
primarily for photoprocessing, and including
| 12 | | photoprocessing machinery and equipment purchased for lease.
| 13 | | (16) Until July 1, 2003, and beginning again on the | 14 | | effective date of this amendatory Act of the 97th General | 15 | | Assembly and thereafter, coal and aggregate exploration, | 16 | | mining, offhighway hauling,
processing, maintenance, and | 17 | | reclamation equipment,
including replacement parts and | 18 | | equipment, and
including equipment purchased for lease, but | 19 | | excluding motor
vehicles required to be registered under the | 20 | | Illinois Vehicle Code.
| 21 | | (17) Until July 1, 2003, distillation machinery and | 22 | | equipment, sold as a
unit or kit,
assembled or installed by the | 23 | | retailer, certified by the user to be used
only for the | 24 | | production of ethyl alcohol that will be used for consumption
| 25 | | as motor fuel or as a component of motor fuel for the personal | 26 | | use of the
user, and not subject to sale or resale.
|
| | | SB2243 Enrolled | - 8 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (18) Manufacturing and assembling machinery and equipment | 2 | | used
primarily in the process of manufacturing or assembling | 3 | | tangible
personal property for wholesale or retail sale or | 4 | | lease, whether that sale
or lease is made directly by the | 5 | | manufacturer or by some other person,
whether the materials | 6 | | used in the process are
owned by the manufacturer or some other | 7 | | person, or whether that sale or
lease is made apart from or as | 8 | | an incident to the seller's engaging in
the service occupation | 9 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 10 | | other similar items of no commercial value on
special order for | 11 | | a particular purchaser. The exemption provided by this | 12 | | paragraph (18) does not include machinery and equipment used in | 13 | | (i) the generation of electricity for wholesale or retail sale; | 14 | | (ii) the generation or treatment of natural or artificial gas | 15 | | for wholesale or retail sale that is delivered to customers | 16 | | through pipes, pipelines, or mains; or (iii) the treatment of | 17 | | water for wholesale or retail sale that is delivered to | 18 | | customers through pipes, pipelines, or mains. The provisions of | 19 | | this amendatory Act of the 98th General Assembly are | 20 | | declaratory of existing law as to the meaning and scope of this | 21 | | exemption.
| 22 | | (19) Personal property delivered to a purchaser or | 23 | | purchaser's donee
inside Illinois when the purchase order for | 24 | | that personal property was
received by a florist located | 25 | | outside Illinois who has a florist located
inside Illinois | 26 | | deliver the personal property.
|
| | | SB2243 Enrolled | - 9 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (20) Semen used for artificial insemination of livestock | 2 | | for direct
agricultural production.
| 3 | | (21) Horses, or interests in horses, registered with and | 4 | | meeting the
requirements of any of the
Arabian Horse Club | 5 | | Registry of America, Appaloosa Horse Club, American Quarter
| 6 | | Horse Association, United States
Trotting Association, or | 7 | | Jockey Club, as appropriate, used for
purposes of breeding or | 8 | | racing for prizes. This item (21) is exempt from the provisions | 9 | | of Section 3-90, and the exemption provided for under this item | 10 | | (21) applies for all periods beginning May 30, 1995, but no | 11 | | claim for credit or refund is allowed on or after January 1, | 12 | | 2008
for such taxes paid during the period beginning May 30, | 13 | | 2000 and ending on January 1, 2008.
| 14 | | (22) Computers and communications equipment utilized for | 15 | | any
hospital
purpose
and equipment used in the diagnosis,
| 16 | | analysis, or treatment of hospital patients purchased by a | 17 | | lessor who leases
the
equipment, under a lease of one year or | 18 | | longer executed or in effect at the
time the lessor would | 19 | | otherwise be subject to the tax imposed by this Act, to a
| 20 | | hospital
that has been issued an active tax exemption | 21 | | identification number by
the
Department under Section 1g of the | 22 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 23 | | manner that does not qualify for
this exemption or is used in | 24 | | any other non-exempt manner, the lessor
shall be liable for the
| 25 | | tax imposed under this Act or the Service Use Tax Act, as the | 26 | | case may
be, based on the fair market value of the property at |
| | | SB2243 Enrolled | - 10 - | LRB098 09659 HLH 39805 b |
|
| 1 | | the time the
non-qualifying use occurs. No lessor shall collect | 2 | | or attempt to collect an
amount (however
designated) that | 3 | | purports to reimburse that lessor for the tax imposed by this
| 4 | | Act or the Service Use Tax Act, as the case may be, if the tax | 5 | | has not been
paid by the lessor. If a lessor improperly | 6 | | collects any such amount from the
lessee, the lessee shall have | 7 | | a legal right to claim a refund of that amount
from the lessor. | 8 | | If, however, that amount is not refunded to the lessee for
any | 9 | | reason, the lessor is liable to pay that amount to the | 10 | | Department.
| 11 | | (23) Personal property purchased by a lessor who leases the
| 12 | | property, under
a
lease of
one year or longer executed or in | 13 | | effect at the time
the lessor would otherwise be subject to the | 14 | | tax imposed by this Act,
to a governmental body
that has been | 15 | | issued an active sales tax exemption identification number by | 16 | | the
Department under Section 1g of the Retailers' Occupation | 17 | | Tax Act.
If the
property is leased in a manner that does not | 18 | | qualify for
this exemption
or used in any other non-exempt | 19 | | manner, the lessor shall be liable for the
tax imposed under | 20 | | this Act or the Service Use Tax Act, as the case may
be, based | 21 | | on the fair market value of the property at the time the
| 22 | | non-qualifying use occurs. No lessor shall collect or attempt | 23 | | to collect an
amount (however
designated) that purports to | 24 | | reimburse that lessor for the tax imposed by this
Act or the | 25 | | Service Use Tax Act, as the case may be, if the tax has not been
| 26 | | paid by the lessor. If a lessor improperly collects any such |
| | | SB2243 Enrolled | - 11 - | LRB098 09659 HLH 39805 b |
|
| 1 | | amount from the
lessee, the lessee shall have a legal right to | 2 | | claim a refund of that amount
from the lessor. If, however, | 3 | | that amount is not refunded to the lessee for
any reason, the | 4 | | lessor is liable to pay that amount to the Department.
| 5 | | (24) Beginning with taxable years ending on or after | 6 | | December
31, 1995
and
ending with taxable years ending on or | 7 | | before December 31, 2004,
personal property that is
donated for | 8 | | disaster relief to be used in a State or federally declared
| 9 | | disaster area in Illinois or bordering Illinois by a | 10 | | manufacturer or retailer
that is registered in this State to a | 11 | | corporation, society, association,
foundation, or institution | 12 | | that has been issued a sales tax exemption
identification | 13 | | number by the Department that assists victims of the disaster
| 14 | | who reside within the declared disaster area.
| 15 | | (25) Beginning with taxable years ending on or after | 16 | | December
31, 1995 and
ending with taxable years ending on or | 17 | | before December 31, 2004, personal
property that is used in the | 18 | | performance of infrastructure repairs in this
State, including | 19 | | but not limited to municipal roads and streets, access roads,
| 20 | | bridges, sidewalks, waste disposal systems, water and sewer | 21 | | line extensions,
water distribution and purification | 22 | | facilities, storm water drainage and
retention facilities, and | 23 | | sewage treatment facilities, resulting from a State
or | 24 | | federally declared disaster in Illinois or bordering Illinois | 25 | | when such
repairs are initiated on facilities located in the | 26 | | declared disaster area
within 6 months after the disaster.
|
| | | SB2243 Enrolled | - 12 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (26) Beginning July 1, 1999, game or game birds purchased | 2 | | at a "game
breeding
and hunting preserve area" as that term is
| 3 | | used in
the Wildlife Code. This paragraph is exempt from the | 4 | | provisions
of
Section 3-90.
| 5 | | (27) 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 | | (28) 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 |
| | | SB2243 Enrolled | - 13 - | LRB098 09659 HLH 39805 b |
|
| 1 | | the events are
sponsored by an entity recognized by the school | 2 | | district that consists
primarily of volunteers and includes
| 3 | | parents and teachers of the school children. This paragraph | 4 | | does not apply
to fundraising
events (i) for the benefit of | 5 | | private home instruction or (ii)
for which the fundraising | 6 | | entity purchases the personal property sold at
the events from | 7 | | another individual or entity that sold the property for the
| 8 | | purpose of resale by the fundraising entity and that
profits | 9 | | from the sale to the
fundraising entity. This paragraph is | 10 | | exempt
from the provisions
of Section 3-90.
| 11 | | (29) Beginning January 1, 2000 and through December 31, | 12 | | 2001, new or
used automatic vending
machines that prepare and | 13 | | serve hot food and beverages, including coffee, soup,
and
other | 14 | | items, and replacement parts for these machines.
Beginning | 15 | | January 1,
2002 and through June 30, 2003, machines and parts | 16 | | for machines used in
commercial, coin-operated amusement and | 17 | | vending business if a use or occupation
tax is paid on the | 18 | | gross receipts derived from the use of the commercial,
| 19 | | coin-operated amusement and vending machines.
This
paragraph
| 20 | | is exempt from the provisions of Section 3-90.
| 21 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 22 | | food for human consumption that is to be consumed off the | 23 | | premises
where it is sold (other than alcoholic beverages, soft | 24 | | drinks, and food that
has been prepared for immediate | 25 | | consumption) and prescription and
nonprescription medicines, | 26 | | drugs, medical appliances, and insulin, urine
testing |
| | | SB2243 Enrolled | - 14 - | LRB098 09659 HLH 39805 b |
|
| 1 | | materials, syringes, and needles used by diabetics, for human | 2 | | use, when
purchased for use by a person receiving medical | 3 | | assistance under Article V of
the Illinois Public Aid Code who | 4 | | resides in a licensed long-term care facility,
as defined in | 5 | | the Nursing Home Care Act, or in a licensed facility as defined | 6 | | in the ID/DD Community Care Act or the Specialized Mental | 7 | | Health Rehabilitation Act.
| 8 | | (31) Beginning on
the effective date of this amendatory Act | 9 | | of the 92nd General Assembly,
computers and communications | 10 | | equipment
utilized for any hospital purpose and equipment used | 11 | | in the diagnosis,
analysis, or treatment of hospital patients | 12 | | purchased by a lessor who leases
the equipment, under a lease | 13 | | of one year or longer executed or in effect at the
time the | 14 | | lessor would otherwise be subject to the tax imposed by this | 15 | | Act, to a
hospital 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
equipment 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 Service Use Tax Act, as the | 21 | | case may be, based on
the fair market value of the property at | 22 | | the time the nonqualifying use
occurs. No lessor shall collect | 23 | | or attempt to collect an amount (however
designated) that | 24 | | purports to reimburse that lessor for the tax imposed by this
| 25 | | Act or the Service Use Tax Act, as the case may be, if the tax | 26 | | has not been
paid by the lessor. If a lessor improperly |
| | | SB2243 Enrolled | - 15 - | LRB098 09659 HLH 39805 b |
|
| 1 | | collects any such amount from the
lessee, the lessee shall have | 2 | | a legal right to claim a refund of that amount
from the lessor. | 3 | | If, however, that amount is not refunded to the lessee for
any | 4 | | reason, the lessor is liable to pay that amount to the | 5 | | Department.
This paragraph is exempt from the provisions of | 6 | | Section 3-90.
| 7 | | (32) Beginning on
the effective date of this amendatory Act | 8 | | of the 92nd General Assembly,
personal property purchased by a | 9 | | lessor who leases the property,
under a lease of one year or | 10 | | longer executed or in effect at the time the
lessor would | 11 | | otherwise be subject to the tax imposed by this Act, to a
| 12 | | governmental body that has been issued an active sales tax | 13 | | exemption
identification number by the Department under | 14 | | Section 1g of the Retailers'
Occupation Tax Act. If the | 15 | | property is leased in a manner that does not
qualify for this | 16 | | exemption or used in any other nonexempt manner, the lessor
| 17 | | shall be liable for the tax imposed under this Act or the | 18 | | Service Use Tax Act,
as the case may be, based on the fair | 19 | | market value of the property at the time
the nonqualifying use | 20 | | occurs. No lessor shall collect or attempt to collect
an amount | 21 | | (however designated) that purports to reimburse that lessor for | 22 | | the
tax imposed by this Act or the Service Use Tax Act, as the | 23 | | case may be, if the
tax has not been paid by the lessor. If a | 24 | | lessor improperly collects any such
amount from the lessee, the | 25 | | lessee shall have a legal right to claim a refund
of that | 26 | | amount from the lessor. If, however, that amount is not |
| | | SB2243 Enrolled | - 16 - | LRB098 09659 HLH 39805 b |
|
| 1 | | refunded to
the lessee for any reason, the lessor is liable to | 2 | | pay that amount to the
Department. This paragraph is exempt | 3 | | from the provisions of Section 3-90.
| 4 | | (33) On and after July 1, 2003 and through June 30, 2004, | 5 | | the use in this State of motor vehicles of
the second division | 6 | | with a gross vehicle weight in excess of 8,000 pounds and
that | 7 | | are subject to the commercial distribution fee imposed under | 8 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 9 | | 1, 2004 and through June 30, 2005, the use in this State of | 10 | | motor vehicles of the second division: (i) with a gross vehicle | 11 | | weight rating in excess of 8,000 pounds; (ii) that are subject | 12 | | to the commercial distribution fee imposed under Section | 13 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 14 | | primarily used for commercial purposes. Through June 30, 2005, | 15 | | this exemption applies to repair and
replacement parts added | 16 | | after the initial purchase of such a motor vehicle if
that | 17 | | motor
vehicle is used in a manner that would qualify for the | 18 | | rolling stock exemption
otherwise provided for in this Act. For | 19 | | purposes of this paragraph, the term "used for commercial | 20 | | purposes" means the transportation of persons or property in | 21 | | furtherance of any commercial or industrial enterprise, | 22 | | whether for-hire or not.
| 23 | | (34) Beginning January 1, 2008, tangible personal property | 24 | | used in the construction or maintenance of a community water | 25 | | supply, as defined under Section 3.145 of the Environmental | 26 | | Protection Act, that is operated by a not-for-profit |
| | | SB2243 Enrolled | - 17 - | LRB098 09659 HLH 39805 b |
|
| 1 | | corporation that holds a valid water supply permit issued under | 2 | | Title IV of the Environmental Protection Act. This paragraph is | 3 | | exempt from the provisions of Section 3-90. | 4 | | (35) Beginning January 1, 2010, materials, parts, | 5 | | equipment, components, and furnishings incorporated into or | 6 | | upon an aircraft as part of the modification, refurbishment, | 7 | | completion, replacement, repair, or maintenance of the | 8 | | aircraft. This exemption includes consumable supplies used in | 9 | | the modification, refurbishment, completion, replacement, | 10 | | repair, and maintenance of aircraft, but excludes any | 11 | | materials, parts, equipment, components, and consumable | 12 | | supplies used in the modification, replacement, repair, and | 13 | | maintenance of aircraft engines or power plants, whether such | 14 | | engines or power plants are installed or uninstalled upon any | 15 | | such aircraft. "Consumable supplies" include, but are not | 16 | | limited to, adhesive, tape, sandpaper, general purpose | 17 | | lubricants, cleaning solution, latex gloves, and protective | 18 | | films. This exemption applies only to those organizations that | 19 | | (i) hold an Air Agency Certificate and are empowered to operate | 20 | | an approved repair station by the Federal Aviation | 21 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 22 | | operations in accordance with Part 145 of the Federal Aviation | 23 | | Regulations. The exemption does not include aircraft operated | 24 | | by a commercial air carrier providing scheduled passenger air | 25 | | service pursuant to authority issued under Part 121 or Part 129 | 26 | | of the Federal Aviation Regulations. |
| | | SB2243 Enrolled | - 18 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (36) Tangible personal property purchased by a | 2 | | public-facilities corporation, as described in Section | 3 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 4 | | constructing or furnishing a municipal convention hall, but | 5 | | only if the legal title to the municipal convention hall is | 6 | | transferred to the municipality without any further | 7 | | consideration by or on behalf of the municipality at the time | 8 | | of the completion of the municipal convention hall or upon the | 9 | | retirement or redemption of any bonds or other debt instruments | 10 | | issued by the public-facilities corporation in connection with | 11 | | the development of the municipal convention hall. This | 12 | | exemption includes existing public-facilities corporations as | 13 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 14 | | This paragraph is exempt from the provisions of Section 3-90. | 15 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; | 16 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 17 | | 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. | 18 | | 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
| 19 | | (35 ILCS 105/3-25) (from Ch. 120, par. 439.3-25)
| 20 | | Sec. 3-25. Computer software. For the purposes of this Act, | 21 | | "computer
software" means a set of statements, data,
or | 22 | | instructions to be used directly or indirectly in a computer in | 23 | | order to
bring about a certain result in any form in which | 24 | | those statements, data, or
instructions may be embodied, | 25 | | transmitted, or fixed, by any method now known
or hereafter |
| | | SB2243 Enrolled | - 19 - | LRB098 09659 HLH 39805 b |
|
| 1 | | developed, regardless of whether the statements, data, or
| 2 | | instructions are capable of being perceived by or communicated | 3 | | to humans,
and includes prewritten or canned software that is | 4 | | held for repeated sale
or lease, and all associated | 5 | | documentation and materials, if any, whether
contained on | 6 | | magnetic tapes, discs, cards, or other devices or media, but
| 7 | | does not include software that is adapted to specific | 8 | | individualized
requirements of a purchaser, custom-made and | 9 | | modified software designed for
a particular or limited use by a | 10 | | purchaser, or software used to operate
exempt machinery and | 11 | | equipment used in the process of manufacturing or
assembling | 12 | | tangible personal property for wholesale or retail sale or
| 13 | | lease. Software used to operate machinery and equipment used in | 14 | | (i) the generation of electricity for wholesale or retail sale; | 15 | | (ii) the generation or treatment of natural or artificial gas | 16 | | for wholesale or retail sale that is delivered to customers | 17 | | through pipes, pipelines, or mains; or (iii) the treatment of | 18 | | water for wholesale or retail sale that is delivered to | 19 | | customers through pipes, pipelines, or mains is considered | 20 | | "computer software". The provisions of this amendatory Act of | 21 | | the 98th General Assembly are declaratory of existing law as to | 22 | | the meaning and scope of this exemption.
| 23 | | For the purposes of this Act, computer software shall be | 24 | | considered to be
tangible personal property.
| 25 | | (Source: P.A. 91-51, eff. 6-30-99.)
|
| | | SB2243 Enrolled | - 20 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
| 2 | | Sec. 3-50. Manufacturing and assembly exemption. The | 3 | | manufacturing
and assembling machinery and equipment exemption | 4 | | includes
machinery and equipment that replaces machinery and | 5 | | equipment in an
existing manufacturing facility as well as | 6 | | machinery and equipment that
are for use in an expanded or new | 7 | | manufacturing facility. The machinery and
equipment exemption | 8 | | also includes machinery and equipment used in the
general | 9 | | maintenance or repair of exempt machinery and equipment or for
| 10 | | in-house manufacture of exempt machinery and equipment. The | 11 | | machinery and equipment exemption does not include machinery | 12 | | and equipment used in (i) the generation of electricity for | 13 | | wholesale or retail sale; (ii) the generation or treatment of | 14 | | natural or artificial gas for wholesale or retail sale that is | 15 | | delivered to customers through pipes, pipelines, or mains; or | 16 | | (iii) the treatment of water for wholesale or retail sale that | 17 | | is delivered to customers through pipes, pipelines, or mains. | 18 | | The provisions of this amendatory Act of the 98th General | 19 | | Assembly are declaratory of existing law as to the meaning and | 20 | | scope of this exemption. For the
purposes of this exemption, | 21 | | terms have the following
meanings:
| 22 | | (1) "Manufacturing process" means the production of
an | 23 | | article of tangible personal property, whether the article
| 24 | | is a finished product or an article for use in the process | 25 | | of manufacturing
or assembling a different article of | 26 | | tangible personal property, by
a procedure commonly |
| | | SB2243 Enrolled | - 21 - | LRB098 09659 HLH 39805 b |
|
| 1 | | regarded as manufacturing, processing, fabricating, or
| 2 | | refining that changes some existing material into a | 3 | | material
with a different form, use, or name. In relation | 4 | | to a recognized integrated
business composed of a series of | 5 | | operations that collectively constitute
manufacturing, or | 6 | | individually constitute
manufacturing operations, the | 7 | | manufacturing process commences with the
first operation | 8 | | or stage of production in the series
and does not end until | 9 | | the completion of the final product
in the last operation | 10 | | or stage of production in the series. For purposes
of this | 11 | | exemption, photoprocessing is a
manufacturing process of | 12 | | tangible personal property for wholesale or retail
sale.
| 13 | | (2) "Assembling process" means the production of
an | 14 | | article of tangible personal property, whether the article
| 15 | | is a finished product or an article for use in the process | 16 | | of manufacturing
or assembling a different article of | 17 | | tangible personal property, by the
combination of existing | 18 | | materials in a manner commonly regarded as
assembling that | 19 | | results in an article or material of a different
form, use, | 20 | | or name.
| 21 | | (3) "Machinery" means major
mechanical machines or | 22 | | major components of those machines contributing to a
| 23 | | manufacturing or assembling process.
| 24 | | (4) "Equipment" includes an independent device
or tool | 25 | | separate from machinery but essential to an integrated
| 26 | | manufacturing or assembly process; including computers |
| | | SB2243 Enrolled | - 22 - | LRB098 09659 HLH 39805 b |
|
| 1 | | used primarily in
a manufacturer's computer assisted | 2 | | design,
computer assisted manufacturing (CAD/CAM) system; | 3 | | any
subunit or assembly comprising a component of any | 4 | | machinery or auxiliary,
adjunct, or attachment parts of | 5 | | machinery, such as tools, dies, jigs,
fixtures, patterns, | 6 | | and molds; and any parts that require
periodic replacement | 7 | | in the course of normal operation; but does not
include | 8 | | hand tools. Equipment includes chemicals or chemicals | 9 | | acting as
catalysts but only if
the chemicals or chemicals | 10 | | acting as catalysts effect a direct and
immediate change | 11 | | upon a
product being manufactured or assembled for | 12 | | wholesale or retail sale or
lease. | 13 | | (5) "Production related tangible personal property" | 14 | | means all tangible personal property that is used or | 15 | | consumed by the purchaser in a manufacturing facility in | 16 | | which a manufacturing process takes place and includes, | 17 | | without limitation, tangible personal property that is | 18 | | purchased for incorporation into real estate within a | 19 | | manufacturing facility and tangible personal property that | 20 | | is used or consumed in activities such as research and | 21 | | development, preproduction material handling, receiving, | 22 | | quality control, inventory control, storage, staging, and | 23 | | packaging for shipping and transportation purposes. | 24 | | "Production related tangible personal property" does not | 25 | | include (i) tangible personal property that is used, within | 26 | | or without a manufacturing facility, in sales, purchasing, |
| | | SB2243 Enrolled | - 23 - | LRB098 09659 HLH 39805 b |
|
| 1 | | accounting, fiscal management, marketing, personnel | 2 | | recruitment or selection, or landscaping or (ii) tangible | 3 | | personal property that is required to be titled or | 4 | | registered with a department, agency, or unit of federal, | 5 | | State, or local government.
| 6 | | The manufacturing and assembling machinery and equipment | 7 | | exemption includes production related tangible personal | 8 | | property that is purchased on or after July 1, 2007 and on or | 9 | | before June 30, 2008. The exemption for production related | 10 | | tangible personal property is subject to both of the following | 11 | | limitations: | 12 | | (1) The maximum amount of the exemption for any one | 13 | | taxpayer may not exceed 5% of the purchase price of | 14 | | production related tangible personal property that is | 15 | | purchased on or after July 1, 2007 and on or before June | 16 | | 30, 2008. A credit under Section 3-85 of this Act may not | 17 | | be earned by the purchase of production related tangible | 18 | | personal property for which an exemption is received under | 19 | | this Section. | 20 | | (2) The maximum aggregate amount of the exemptions for | 21 | | production related tangible personal property awarded | 22 | | under this Act and the Retailers' Occupation Tax Act to all | 23 | | taxpayers may not exceed $10,000,000. If the claims for the | 24 | | exemption exceed $10,000,000, then the Department shall | 25 | | reduce the amount of the exemption to each taxpayer on a | 26 | | pro rata basis. |
| | | SB2243 Enrolled | - 24 - | LRB098 09659 HLH 39805 b |
|
| 1 | | The Department may adopt rules to implement and administer the | 2 | | exemption for production related tangible personal property. | 3 | | The manufacturing and assembling machinery and equipment
| 4 | | exemption includes the sale of materials to a purchaser who
| 5 | | produces exempted types of machinery, equipment, or tools and | 6 | | who rents or
leases that machinery, equipment, or tools to a
| 7 | | manufacturer of tangible
personal property. This exemption | 8 | | also includes the sale of materials to a
purchaser who | 9 | | manufactures those materials into an exempted type of
| 10 | | machinery, equipment, or tools that the purchaser uses
himself | 11 | | or herself in the
manufacturing of tangible personal property. | 12 | | This exemption includes the
sale of exempted types of machinery | 13 | | or equipment to a
purchaser who is not the manufacturer, but | 14 | | who rents or leases the use of
the property to a manufacturer. | 15 | | The purchaser of the machinery and
equipment who has an active | 16 | | resale registration number shall
furnish that number to the | 17 | | seller at the time of purchase.
A user of the machinery, | 18 | | equipment, or tools without an
active resale registration | 19 | | number shall prepare a certificate of exemption
for each | 20 | | transaction stating facts establishing the exemption for that
| 21 | | transaction, and that certificate shall be
available to the | 22 | | Department for inspection or audit. The Department shall
| 23 | | prescribe the form of the certificate. Informal rulings, | 24 | | opinions, or
letters issued by the Department in
response to an | 25 | | inquiry or request for an opinion from any person
regarding the | 26 | | coverage and applicability of this exemption to specific
|
| | | SB2243 Enrolled | - 25 - | LRB098 09659 HLH 39805 b |
|
| 1 | | devices shall be published, maintained as a public record, and | 2 | | made
available for public inspection and copying. If the | 3 | | informal ruling,
opinion, or letter contains trade secrets or | 4 | | other confidential
information, where possible, the Department | 5 | | shall delete that information
before publication. Whenever | 6 | | informal rulings, opinions, or
letters contain a policy of | 7 | | general applicability, the Department
shall formulate and | 8 | | adopt that policy as a rule in accordance with the
Illinois | 9 | | Administrative Procedure Act.
| 10 | | (Source: P.A. 95-707, eff. 1-11-08.)
| 11 | | Section 10. The Service Use Tax Act is amended by changing | 12 | | Sections 2, 3, and 3-25 as follows:
| 13 | | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| 14 | | Sec. 2. "Use" means the exercise by any person of any right | 15 | | or power
over tangible personal property incident to the | 16 | | ownership of that
property, but does not include the sale or | 17 | | use for demonstration by him
of that property in any form as | 18 | | tangible personal property in the
regular course of business.
| 19 | | "Use" does not mean the interim
use of
tangible personal | 20 | | property nor the physical incorporation of tangible
personal | 21 | | property, as an ingredient or constituent, into other tangible
| 22 | | personal property, (a) which is sold in the regular course of | 23 | | business
or (b) which the person incorporating such ingredient | 24 | | or constituent
therein has undertaken at the time of such |
| | | SB2243 Enrolled | - 26 - | LRB098 09659 HLH 39805 b |
|
| 1 | | purchase to cause to be
transported in interstate commerce to | 2 | | destinations outside the State of
Illinois.
| 3 | | "Purchased from a serviceman" means the acquisition of the | 4 | | ownership
of, or title to, tangible personal property through a | 5 | | sale of service.
| 6 | | "Purchaser" means any person who, through a sale of | 7 | | service, acquires
the ownership of, or title to, any tangible | 8 | | personal property.
| 9 | | "Cost price" means the consideration paid by the serviceman | 10 | | for a
purchase valued in money, whether paid in money or | 11 | | otherwise, including
cash, credits and services, and shall be | 12 | | determined without any
deduction on account of the supplier's | 13 | | cost of the property sold or on
account of any other expense | 14 | | incurred by the supplier. When a serviceman
contracts out part | 15 | | or all of the services required in his sale of service,
it | 16 | | shall be presumed that the cost price to the serviceman of the | 17 | | property
transferred to him or her by his or her subcontractor | 18 | | is equal to 50% of
the subcontractor's charges to the | 19 | | serviceman in the absence of proof of
the consideration paid by | 20 | | the subcontractor for the purchase of such property.
| 21 | | "Selling price" means the consideration for a sale valued | 22 | | in money
whether received in money or otherwise, including | 23 | | cash, credits and
service, and shall be determined without any | 24 | | deduction on account of the
serviceman's cost of the property | 25 | | sold, the cost of materials used,
labor or service cost or any | 26 | | other expense whatsoever, but does not
include interest or |
| | | SB2243 Enrolled | - 27 - | LRB098 09659 HLH 39805 b |
|
| 1 | | finance charges which appear as separate items on
the bill of | 2 | | sale or sales contract nor charges that are added to prices
by | 3 | | sellers on account of the seller's duty to collect, from the
| 4 | | purchaser, the tax that is imposed by this Act.
| 5 | | "Department" means the Department of Revenue.
| 6 | | "Person" means any natural individual, firm, partnership,
| 7 | | association, joint stock company, joint venture, public or | 8 | | private
corporation, limited liability company, and any | 9 | | receiver, executor, trustee,
guardian or other representative | 10 | | appointed by order of any court.
| 11 | | "Sale of service" means any transaction except:
| 12 | | (1) a retail sale of tangible personal property taxable | 13 | | under the
Retailers' Occupation Tax Act or under the Use | 14 | | Tax Act.
| 15 | | (2) a sale of tangible personal property for the | 16 | | purpose of resale
made in compliance with Section 2c of the | 17 | | Retailers' Occupation Tax Act.
| 18 | | (3) except as hereinafter provided, a sale or transfer | 19 | | of tangible
personal property as an incident to the | 20 | | rendering of service for or by
any governmental body, or | 21 | | for or by any corporation, society,
association, | 22 | | foundation or institution organized and operated
| 23 | | exclusively for charitable, religious or educational | 24 | | purposes or any
not-for-profit corporation, society, | 25 | | association, foundation,
institution or organization which | 26 | | has no compensated officers or
employees and which is |
| | | SB2243 Enrolled | - 28 - | LRB098 09659 HLH 39805 b |
|
| 1 | | organized and operated primarily for the
recreation of | 2 | | persons 55 years of age or older. A limited liability | 3 | | company
may qualify for the exemption under this paragraph | 4 | | only if the limited
liability company is organized and | 5 | | operated exclusively for educational
purposes.
| 6 | | (4) a sale or transfer of tangible personal
property as | 7 | | an incident to the
rendering of service for interstate | 8 | | carriers for hire for use as rolling stock
moving in | 9 | | interstate commerce or by lessors under a lease of one year | 10 | | or
longer, executed or in effect at the time of purchase of | 11 | | personal property, to
interstate carriers for hire for use | 12 | | as rolling stock moving in interstate
commerce so long as | 13 | | so used by such interstate carriers for hire, and equipment
| 14 | | operated by a telecommunications provider, licensed as a | 15 | | common carrier by the
Federal Communications Commission, | 16 | | which is permanently installed in or affixed
to aircraft | 17 | | moving in interstate commerce.
| 18 | | (4a) a sale or transfer of tangible personal
property | 19 | | as an incident
to the rendering of service for owners, | 20 | | lessors, or shippers of tangible
personal property which is | 21 | | utilized by interstate carriers for hire for
use as rolling | 22 | | stock moving in interstate commerce so long as so used by
| 23 | | interstate carriers for hire, and equipment operated by a
| 24 | | telecommunications provider, licensed as a common carrier | 25 | | by the Federal
Communications Commission, which is | 26 | | permanently installed in or affixed to
aircraft moving in |
| | | SB2243 Enrolled | - 29 - | LRB098 09659 HLH 39805 b |
|
| 1 | | interstate commerce.
| 2 | | (4a-5) on and after July 1, 2003 and through June 30, | 3 | | 2004, a sale or transfer of a motor vehicle
of
the
second | 4 | | division with a gross vehicle weight in excess of 8,000 | 5 | | pounds as an
incident to the rendering of service if that | 6 | | motor
vehicle is subject
to the commercial distribution fee | 7 | | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | 8 | | Beginning on July 1, 2004 and through June 30, 2005, the | 9 | | use in this State of motor vehicles of the second division: | 10 | | (i) with a gross vehicle weight rating in excess of 8,000 | 11 | | pounds; (ii) that are subject to the commercial | 12 | | distribution fee imposed under Section 3-815.1 of the | 13 | | Illinois Vehicle Code; and (iii) that are primarily used | 14 | | for commercial purposes. Through June 30, 2005, this
| 15 | | exemption applies to repair and replacement parts added | 16 | | after the
initial
purchase of such a motor vehicle if that | 17 | | motor vehicle is used in a manner that
would
qualify for | 18 | | the rolling stock exemption otherwise provided for in this | 19 | | Act. For purposes of this paragraph, "used for commercial | 20 | | purposes" means the transportation of persons or property | 21 | | in furtherance of any commercial or industrial enterprise | 22 | | whether for-hire or not.
| 23 | | (5) a sale or transfer of machinery and equipment used | 24 | | primarily in the
process of the manufacturing or | 25 | | assembling, either in an existing, an expanded
or a new | 26 | | manufacturing facility, of tangible personal property for |
| | | SB2243 Enrolled | - 30 - | LRB098 09659 HLH 39805 b |
|
| 1 | | wholesale or
retail sale or lease, whether such sale or | 2 | | lease is made directly by the
manufacturer or by some other | 3 | | person, whether the materials used in the process
are owned | 4 | | by the manufacturer or some other person, or whether such | 5 | | sale or
lease is made apart from or as an incident to the | 6 | | seller's engaging in a
service occupation and the | 7 | | applicable tax is a Service Use Tax or Service
Occupation | 8 | | Tax, rather than Use Tax or Retailers' Occupation Tax. The | 9 | | exemption provided by this paragraph (5) does not include | 10 | | machinery and equipment used in (i) the generation of | 11 | | electricity for wholesale or retail sale; (ii) the | 12 | | generation or treatment of natural or artificial gas for | 13 | | wholesale or retail sale that is delivered to customers | 14 | | through pipes, pipelines, or mains; or (iii) the treatment | 15 | | of water for wholesale or retail sale that is delivered to | 16 | | customers through pipes, pipelines, or mains. The | 17 | | provisions of this amendatory Act of the 98th General | 18 | | Assembly are declaratory of existing law as to the meaning | 19 | | and scope of this exemption.
| 20 | | (5a) the repairing, reconditioning or remodeling, for | 21 | | a
common carrier by rail, of tangible personal property | 22 | | which belongs to such
carrier for hire, and as to which | 23 | | such carrier receives the physical possession
of the | 24 | | repaired, reconditioned or remodeled item of tangible | 25 | | personal property
in Illinois, and which such carrier | 26 | | transports, or shares with another common
carrier in the |
| | | SB2243 Enrolled | - 31 - | LRB098 09659 HLH 39805 b |
|
| 1 | | transportation of such property, out of Illinois on a | 2 | | standard
uniform bill of lading showing the person who | 3 | | repaired, reconditioned or
remodeled the property to a | 4 | | destination outside Illinois, for use outside
Illinois.
| 5 | | (5b) a sale or transfer of tangible personal property | 6 | | which is produced by
the seller thereof on special order in | 7 | | such a way as to have made the
applicable tax the Service | 8 | | Occupation Tax or the Service Use Tax, rather than
the | 9 | | Retailers' Occupation Tax or the Use Tax, for an interstate | 10 | | carrier by rail
which receives the physical possession of | 11 | | such property in Illinois, and which
transports such | 12 | | property, or shares with another common carrier in the
| 13 | | transportation of such property, out of Illinois on a | 14 | | standard uniform bill of
lading showing the seller of the | 15 | | property as the shipper or consignor of such
property to a | 16 | | destination outside Illinois, for use outside Illinois.
| 17 | | (6) until July 1, 2003, a sale or transfer of | 18 | | distillation machinery
and equipment, sold
as a unit or kit | 19 | | and assembled or installed by the retailer, which
machinery | 20 | | and equipment is certified by the user to be used only for | 21 | | the
production of ethyl alcohol that will be used for | 22 | | consumption as motor fuel
or as a component of motor fuel | 23 | | for the personal use of such user and not
subject to sale | 24 | | or resale.
| 25 | | (7) at the election of any serviceman not required to | 26 | | be
otherwise registered as a retailer under Section 2a of |
| | | SB2243 Enrolled | - 32 - | LRB098 09659 HLH 39805 b |
|
| 1 | | the Retailers'
Occupation Tax Act, made for each fiscal | 2 | | year sales
of service in which the aggregate annual cost | 3 | | price of tangible
personal property transferred as an | 4 | | incident to the sales of service is
less than 35%, or 75% | 5 | | in the case of servicemen transferring prescription
drugs | 6 | | or servicemen engaged in graphic arts production, of the | 7 | | aggregate
annual total gross receipts from all sales of | 8 | | service. The purchase of
such tangible personal property by | 9 | | the serviceman shall be subject to tax
under the Retailers' | 10 | | Occupation Tax Act and the Use Tax Act.
However, if a
| 11 | | primary serviceman who has made the election described in | 12 | | this paragraph
subcontracts service work to a secondary | 13 | | serviceman who has also made the
election described in this | 14 | | paragraph, the primary serviceman does not
incur a Use Tax | 15 | | liability if the secondary serviceman (i) has paid or will | 16 | | pay
Use
Tax on his or her cost price of any tangible | 17 | | personal property transferred
to the primary serviceman | 18 | | and (ii) certifies that fact in writing to the
primary
| 19 | | serviceman.
| 20 | | Tangible personal property transferred incident to the | 21 | | completion of a
maintenance agreement is exempt from the tax | 22 | | imposed pursuant to this Act.
| 23 | | Exemption (5) also includes machinery and equipment used in | 24 | | the general
maintenance or repair of such exempt machinery and | 25 | | equipment or for in-house
manufacture of exempt machinery and | 26 | | equipment. The machinery and equipment exemption does not |
| | | SB2243 Enrolled | - 33 - | LRB098 09659 HLH 39805 b |
|
| 1 | | include machinery and equipment used in (i) the generation of | 2 | | electricity for wholesale or retail sale; (ii) the generation | 3 | | or treatment of natural or artificial gas for wholesale or | 4 | | retail sale that is delivered to customers through pipes, | 5 | | pipelines, or mains; or (iii) the treatment of water for | 6 | | wholesale or retail sale that is delivered to customers through | 7 | | pipes, pipelines, or mains. The provisions of this amendatory | 8 | | Act of the 98th General Assembly are declaratory of existing | 9 | | law as to the meaning and scope of this exemption. For the | 10 | | purposes of exemption
(5), each of these terms shall have the | 11 | | following meanings: (1) "manufacturing
process" shall mean the | 12 | | production of any article of tangible personal
property, | 13 | | whether such article is a finished product or an article for | 14 | | use in
the process of manufacturing or assembling a different | 15 | | article of tangible
personal property, by procedures commonly | 16 | | regarded as manufacturing,
processing, fabricating, or | 17 | | refining which changes some existing
material or materials into | 18 | | a material with a different form, use or
name. In relation to a | 19 | | recognized integrated business composed of a
series of | 20 | | operations which collectively constitute manufacturing, or
| 21 | | individually constitute manufacturing operations, the | 22 | | manufacturing
process shall be deemed to commence with the | 23 | | first operation or stage of
production in the series, and shall | 24 | | not be deemed to end until the
completion of the final product | 25 | | in the last operation or stage of
production in the series; and | 26 | | further, for purposes of exemption (5),
photoprocessing is |
| | | SB2243 Enrolled | - 34 - | LRB098 09659 HLH 39805 b |
|
| 1 | | deemed to be a manufacturing process of tangible
personal | 2 | | property for wholesale or retail sale; (2) "assembling process" | 3 | | shall
mean the production of any article of tangible personal | 4 | | property, whether such
article is a finished product or an | 5 | | article for use in the process of
manufacturing or assembling a | 6 | | different article of tangible personal
property, by the | 7 | | combination of existing materials in a manner commonly
regarded | 8 | | as assembling which results in a material of a different form,
| 9 | | use or name; (3) "machinery" shall mean major mechanical | 10 | | machines or
major components of such machines contributing to a | 11 | | manufacturing or
assembling process; and (4) "equipment" shall | 12 | | include any independent
device or tool separate from any | 13 | | machinery but essential to an
integrated manufacturing or | 14 | | assembly process; including computers
used primarily in a | 15 | | manufacturer's computer
assisted design, computer assisted | 16 | | manufacturing (CAD/CAM) system;
or any subunit or assembly | 17 | | comprising a component of any machinery or
auxiliary, adjunct | 18 | | or attachment parts of machinery, such as tools, dies,
jigs, | 19 | | fixtures, patterns and molds; or any parts which require | 20 | | periodic
replacement in the course of normal operation; but | 21 | | shall not include hand
tools.
Equipment includes chemicals or | 22 | | chemicals acting as catalysts but only if the
chemicals or | 23 | | chemicals acting as catalysts effect a direct and immediate | 24 | | change
upon a
product being manufactured or assembled for | 25 | | wholesale or retail sale or
lease.
The purchaser of such | 26 | | machinery and equipment who has an active
resale registration |
| | | SB2243 Enrolled | - 35 - | LRB098 09659 HLH 39805 b |
|
| 1 | | number shall furnish such number to the seller at the
time of | 2 | | purchase. The user of such machinery and equipment and tools
| 3 | | without an active resale registration number shall prepare a | 4 | | certificate of
exemption for each transaction stating facts | 5 | | establishing the exemption for
that transaction, which | 6 | | certificate shall be available to the Department
for inspection | 7 | | or audit. The Department shall prescribe the form of the
| 8 | | certificate.
| 9 | | Any informal rulings, opinions or letters issued by the | 10 | | Department in
response to an inquiry or request for any opinion | 11 | | from any person
regarding the coverage and applicability of | 12 | | exemption (5) to specific
devices shall be published, | 13 | | maintained as a public record, and made
available for public | 14 | | inspection and copying. If the informal ruling,
opinion or | 15 | | letter contains trade secrets or other confidential
| 16 | | information, where possible the Department shall delete such | 17 | | information
prior to publication. Whenever such informal | 18 | | rulings, opinions, or
letters contain any policy of general | 19 | | applicability, the Department
shall formulate and adopt such | 20 | | policy as a rule in accordance with the
provisions of the | 21 | | Illinois Administrative Procedure Act.
| 22 | | On and after July 1, 1987, no entity otherwise eligible | 23 | | under exemption
(3) of this Section shall make tax free | 24 | | purchases unless it has an active
exemption identification | 25 | | number issued by the Department.
| 26 | | The purchase, employment and transfer of such tangible |
| | | SB2243 Enrolled | - 36 - | LRB098 09659 HLH 39805 b |
|
| 1 | | personal
property as newsprint and ink for the primary purpose | 2 | | of conveying news
(with or without other information) is not a | 3 | | purchase, use or sale of
service or of tangible personal | 4 | | property within the meaning of this Act.
| 5 | | "Serviceman" means any person who is engaged in the | 6 | | occupation of
making sales of service.
| 7 | | "Sale at retail" means "sale at retail" as defined in the | 8 | | Retailers'
Occupation Tax Act.
| 9 | | "Supplier" means any person who makes sales of tangible | 10 | | personal
property to servicemen for the purpose of resale as an | 11 | | incident to a
sale of service.
| 12 | | "Serviceman maintaining a place of business in this State", | 13 | | or any
like term, means and includes any serviceman:
| 14 | | 1. having or maintaining within this State, directly or | 15 | | by a
subsidiary, an office, distribution house, sales | 16 | | house, warehouse or
other place of business, or any agent | 17 | | or other representative operating
within this State under | 18 | | the authority of the serviceman or its
subsidiary, | 19 | | irrespective of whether such place of business or agent or
| 20 | | other representative is located here permanently or | 21 | | temporarily, or
whether such serviceman or subsidiary is | 22 | | licensed to do business in this
State; | 23 | | 1.1. beginning July 1, 2011, having a contract with a | 24 | | person located in this State under which the person, for a | 25 | | commission or other consideration based on the sale of | 26 | | service by the serviceman, directly or indirectly refers |
| | | SB2243 Enrolled | - 37 - | LRB098 09659 HLH 39805 b |
|
| 1 | | potential customers to the serviceman by a link on the | 2 | | person's Internet website. The provisions of this | 3 | | paragraph 1.1 shall apply only if the cumulative gross | 4 | | receipts from sales of service by the serviceman to | 5 | | customers who are referred to the serviceman by all persons | 6 | | in this State under such contracts exceed $10,000 during | 7 | | the preceding 4 quarterly periods ending on the last day of | 8 | | March, June, September, and December; | 9 | | 1.2. beginning July 1, 2011, having a contract with a | 10 | | person located in this State under which: | 11 | | A. the serviceman sells the same or substantially | 12 | | similar line of services as the person located in this | 13 | | State and does so using an identical or substantially | 14 | | similar name, trade name, or trademark as the person | 15 | | located in this State; and | 16 | | B. the serviceman provides a commission or other | 17 | | consideration to the person located in this State based | 18 | | upon the sale of services by the serviceman. | 19 | | The provisions of this paragraph 1.2 shall apply only if | 20 | | the cumulative gross receipts from sales of service by the | 21 | | serviceman to customers in this State under all such | 22 | | contracts exceed $10,000 during the preceding 4 quarterly | 23 | | periods ending on the last day of March, June, September, | 24 | | and December;
| 25 | | 2. soliciting orders for tangible personal property by | 26 | | means of a
telecommunication or television shopping system |
| | | SB2243 Enrolled | - 38 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (which utilizes toll free
numbers) which is intended by the | 2 | | retailer to be broadcast by cable
television or other means | 3 | | of broadcasting, to consumers located in this State;
| 4 | | 3. pursuant to a contract with a broadcaster or | 5 | | publisher located in this
State, soliciting orders for | 6 | | tangible personal property by means of advertising
which is | 7 | | disseminated primarily to consumers located in this State | 8 | | and only
secondarily to bordering jurisdictions;
| 9 | | 4. soliciting orders for tangible personal property by | 10 | | mail if the
solicitations are substantial and recurring and | 11 | | if the retailer benefits
from any banking, financing, debt | 12 | | collection, telecommunication, or
marketing activities | 13 | | occurring in this State or benefits from the location
in | 14 | | this State of authorized installation, servicing, or | 15 | | repair facilities;
| 16 | | 5. being owned or controlled by the same interests | 17 | | which own or
control any retailer engaging in business in | 18 | | the same or similar line of
business in this State;
| 19 | | 6. having a franchisee or licensee operating under its | 20 | | trade name if
the franchisee or licensee is required to | 21 | | collect the tax under this Section;
| 22 | | 7. pursuant to a contract with a cable television | 23 | | operator located in
this State, soliciting orders for | 24 | | tangible personal property by means of
advertising which is | 25 | | transmitted or distributed over a cable television
system | 26 | | in this State; or
|
| | | SB2243 Enrolled | - 39 - | LRB098 09659 HLH 39805 b |
|
| 1 | | 8. engaging in activities in Illinois, which | 2 | | activities in the
state in which the supply business | 3 | | engaging in such activities is located
would constitute | 4 | | maintaining a place of business in that state.
| 5 | | (Source: P.A. 96-1544, eff. 3-10-11.)
| 6 | | (35 ILCS 110/3) (from Ch. 120, par. 439.33)
| 7 | | Sec. 3. Tax imposed. A tax is imposed upon the privilege of | 8 | | using in this
State
real or tangible personal property acquired | 9 | | as an incident to the
purchase of a service from a serviceman,
| 10 | | including computer software, and including photographs, | 11 | | negatives,
and positives that are the
product of | 12 | | photoprocessing, but not including products of photoprocessing
| 13 | | produced for use in motion pictures for public commercial | 14 | | exhibition.
Beginning January 1, 2001, prepaid telephone | 15 | | calling arrangements shall be
considered tangible personal | 16 | | property subject to the tax imposed under this Act
regardless | 17 | | of the form in which those arrangements may be embodied,
| 18 | | transmitted, or fixed by any method now known or hereafter | 19 | | developed. Purchases of (1) electricity delivered to customers | 20 | | by wire; (2) natural or artificial gas that is delivered to | 21 | | customers through pipes, pipelines, or mains; and (3) water | 22 | | that is delivered to customers through pipes, pipelines, or | 23 | | mains are not subject to tax under this Act. The provisions of | 24 | | this amendatory Act of the 98th General Assembly are | 25 | | declaratory of existing law as to the meaning and scope of this |
| | | SB2243 Enrolled | - 40 - | LRB098 09659 HLH 39805 b |
|
| 1 | | Act.
| 2 | | (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
| 3 | | (35 ILCS 110/3-25) (from Ch. 120, par. 439.33-25)
| 4 | | Sec. 3-25. Computer software. For the purposes of this Act, | 5 | | "computer
software" means a set of statements, data,
or | 6 | | instructions to be used directly or indirectly in a computer in | 7 | | order to
bring about a certain result in any form in which | 8 | | those statements, data, or
instructions may be embodied, | 9 | | transmitted, or fixed, by any method now known
or hereafter | 10 | | developed, regardless of whether the statements, data, or
| 11 | | instructions are capable of being perceived by or communicated | 12 | | to humans,
and includes prewritten or canned software that is | 13 | | held for repeated sale
or lease, and all associated | 14 | | documentation and materials, if any, whether
contained on | 15 | | magnetic tapes, discs, cards, or other devices or media, but
| 16 | | does not include software that is adapted to specific | 17 | | individualized
requirements of a purchaser, custom-made and | 18 | | modified software designed for
a particular or limited use by a | 19 | | purchaser, or software used to operate
exempt machinery and | 20 | | equipment used in the process of manufacturing or
assembling | 21 | | tangible personal property for wholesale or retail sale or
| 22 | | lease. Software used to operate machinery and equipment used in | 23 | | (i) the generation of electricity for wholesale or retail sale; | 24 | | (ii) the generation or treatment of natural or artificial gas | 25 | | for wholesale or retail sale that is delivered to customers |
| | | SB2243 Enrolled | - 41 - | LRB098 09659 HLH 39805 b |
|
| 1 | | through pipes, pipelines, or mains; or (iii) the treatment of | 2 | | water for wholesale or retail sale that is delivered to | 3 | | customers through pipes, pipelines, or mains is considered | 4 | | "computer software". The provisions of this amendatory Act of | 5 | | the 98th General Assembly are declaratory of existing law as to | 6 | | the meaning and scope of this exemption.
| 7 | | For the purposes of this Act, computer software shall be | 8 | | considered to be
tangible personal property.
| 9 | | (Source: P.A. 91-51, eff. 6-30-99.)
| 10 | | Section 15. The Service Occupation Tax Act is amended by | 11 | | changing Sections 2, 3, and 3-25 as follows:
| 12 | | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
| 13 | | Sec. 2. "Transfer" means any transfer of the title to | 14 | | property or of
the ownership of property whether or not the | 15 | | transferor retains title as
security for the payment of amounts | 16 | | due him from the transferee.
| 17 | | "Cost Price" means the consideration paid by the serviceman | 18 | | for a
purchase valued in money, whether paid in money or | 19 | | otherwise, including
cash, credits and services, and shall be | 20 | | determined without any deduction
on account of the supplier's | 21 | | cost of the property sold or on account of any
other expense | 22 | | incurred by the supplier. When a serviceman contracts out
part | 23 | | or all of the services required in his sale of service, it | 24 | | shall be
presumed that the cost price to the serviceman of the |
| | | SB2243 Enrolled | - 42 - | LRB098 09659 HLH 39805 b |
|
| 1 | | property
transferred to him by his or her subcontractor is | 2 | | equal to 50% of the
subcontractor's charges to the serviceman | 3 | | in the absence of proof of the
consideration paid by the | 4 | | subcontractor for the purchase of such
property.
| 5 | | "Department" means the Department of Revenue.
| 6 | | "Person" means any natural individual, firm, partnership, | 7 | | association, joint
stock company, joint venture, public or | 8 | | private corporation, limited liability
company, and any | 9 | | receiver, executor, trustee, guardian or other representative
| 10 | | appointed by order of any court.
| 11 | | "Sale of Service" means any transaction except:
| 12 | | (a) A retail sale of tangible personal property taxable | 13 | | under the Retailers'
Occupation Tax Act or under the Use Tax | 14 | | Act.
| 15 | | (b) A sale of tangible personal property for the purpose of | 16 | | resale made in
compliance with Section 2c of the Retailers' | 17 | | Occupation Tax Act.
| 18 | | (c) Except as hereinafter provided, a sale or transfer of | 19 | | tangible personal
property as an incident to the rendering of | 20 | | service for or by any governmental
body or for or by any | 21 | | corporation, society, association, foundation or
institution | 22 | | organized and operated exclusively for charitable, religious | 23 | | or
educational purposes or any not-for-profit corporation, | 24 | | society, association,
foundation, institution or organization | 25 | | which has no compensated officers or
employees and which is | 26 | | organized and operated primarily for the recreation of
persons |
| | | SB2243 Enrolled | - 43 - | LRB098 09659 HLH 39805 b |
|
| 1 | | 55 years of age or older. A limited liability company may | 2 | | qualify for
the exemption under this paragraph only if the | 3 | | limited liability company is
organized and operated | 4 | | exclusively for educational purposes.
| 5 | | (d) A sale or transfer of tangible personal
property
as an | 6 | | incident to the
rendering of service for interstate carriers | 7 | | for hire for use as rolling stock
moving in interstate commerce | 8 | | or lessors under leases of one year or longer,
executed or in | 9 | | effect at the time of purchase, to interstate carriers for hire
| 10 | | for use as rolling stock moving in interstate commerce, and | 11 | | equipment operated
by a telecommunications provider, licensed | 12 | | as a common
carrier by the Federal Communications Commission, | 13 | | which is permanently
installed in or affixed to aircraft moving | 14 | | in interstate commerce.
| 15 | | (d-1) A sale or transfer of tangible personal
property as | 16 | | an incident to
the rendering of service for owners, lessors or | 17 | | shippers of tangible personal
property which is utilized by | 18 | | interstate carriers for hire for use as rolling
stock moving in | 19 | | interstate commerce, and equipment operated
by a | 20 | | telecommunications provider, licensed as a common carrier by | 21 | | the
Federal Communications Commission, which is permanently | 22 | | installed in or
affixed to aircraft moving in interstate | 23 | | commerce.
| 24 | | (d-1.1) On and after July 1, 2003 and through June 30, | 25 | | 2004, a sale or transfer of a motor vehicle
of the
second | 26 | | division with a gross vehicle weight in excess of 8,000 pounds |
| | | SB2243 Enrolled | - 44 - | LRB098 09659 HLH 39805 b |
|
| 1 | | as an
incident to the rendering of service if that motor
| 2 | | vehicle is subject
to the commercial distribution fee imposed | 3 | | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | 4 | | on July 1, 2004 and through June 30, 2005, the use in this | 5 | | State of motor vehicles of the second division: (i) with a | 6 | | gross vehicle weight rating in excess of 8,000 pounds; (ii) | 7 | | that are subject to the commercial distribution fee imposed | 8 | | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | 9 | | that are primarily used for commercial purposes. Through June | 10 | | 30, 2005, this exemption applies to repair and replacement | 11 | | parts added after the
initial
purchase of such a motor vehicle | 12 | | if that motor vehicle is used in a manner that
would
qualify | 13 | | for the rolling stock exemption otherwise provided for in this | 14 | | Act. For purposes of this paragraph, "used for commercial | 15 | | purposes" means the transportation of persons or property in | 16 | | furtherance of any commercial or industrial enterprise whether | 17 | | for-hire or not.
| 18 | | (d-2) The repairing, reconditioning or remodeling, for a | 19 | | common carrier by
rail, of tangible personal property which | 20 | | belongs to such carrier for hire, and
as to which such carrier | 21 | | receives the physical possession of the repaired,
| 22 | | reconditioned or remodeled item of tangible personal property | 23 | | in Illinois, and
which such carrier transports, or shares with | 24 | | another common carrier in the
transportation of such property, | 25 | | out of Illinois on a standard uniform bill of
lading showing | 26 | | the person who repaired, reconditioned or remodeled the |
| | | SB2243 Enrolled | - 45 - | LRB098 09659 HLH 39805 b |
|
| 1 | | property
as the shipper or consignor of such property to a | 2 | | destination outside Illinois,
for use outside Illinois.
| 3 | | (d-3) A sale or transfer of tangible personal property | 4 | | which
is produced by the seller thereof on special order in | 5 | | such a way as to have
made the applicable tax the Service | 6 | | Occupation Tax or the Service Use Tax,
rather than the | 7 | | Retailers' Occupation Tax or the Use Tax, for an interstate
| 8 | | carrier by rail which receives the physical possession of such | 9 | | property in
Illinois, and which transports such property, or | 10 | | shares with another common
carrier in the transportation of | 11 | | such property, out of Illinois on a standard
uniform bill of | 12 | | lading showing the seller of the property as the shipper or
| 13 | | consignor of such property to a destination outside Illinois, | 14 | | for use outside
Illinois.
| 15 | | (d-4) Until January 1, 1997, a sale, by a registered | 16 | | serviceman paying tax
under this Act to the Department, of | 17 | | special order printed materials delivered
outside Illinois and | 18 | | which are not returned to this State, if delivery is made
by | 19 | | the seller or agent of the seller, including an agent who | 20 | | causes the product
to be delivered outside Illinois by a common | 21 | | carrier or the U.S.
postal service.
| 22 | | (e) A sale or transfer of machinery and equipment used | 23 | | primarily in
the process of the manufacturing or assembling, | 24 | | either in an existing, an
expanded or a new manufacturing | 25 | | facility, of tangible personal property for
wholesale or retail | 26 | | sale or lease, whether such sale or lease is made directly
by |
| | | SB2243 Enrolled | - 46 - | LRB098 09659 HLH 39805 b |
|
| 1 | | the manufacturer or by some other person, whether the materials | 2 | | used in the
process are owned by the manufacturer or some other | 3 | | person, or whether such
sale or lease is made apart from or as | 4 | | an incident to the seller's engaging in
a service occupation | 5 | | and the applicable tax is a Service Occupation Tax or
Service | 6 | | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | 7 | | exemption provided by this paragraph (e) does not include | 8 | | machinery and equipment used in (i) the generation of | 9 | | electricity for wholesale or retail sale; (ii) the generation | 10 | | or treatment of natural or artificial gas for wholesale or | 11 | | retail sale that is delivered to customers through pipes, | 12 | | pipelines, or mains; or (iii) the treatment of water for | 13 | | wholesale or retail sale that is delivered to customers through | 14 | | pipes, pipelines, or mains. The provisions of this amendatory | 15 | | Act of the 98th General Assembly are declaratory of existing | 16 | | law as to the meaning and scope of this exemption.
| 17 | | (f) Until July 1, 2003, the sale or transfer of | 18 | | distillation
machinery
and equipment, sold as a
unit or kit and | 19 | | assembled or installed by the retailer, which machinery
and | 20 | | equipment is certified by the user to be used only for the | 21 | | production
of ethyl alcohol that will be used for consumption | 22 | | as motor fuel or as a
component of motor fuel for the personal | 23 | | use of such user and not subject
to sale or resale.
| 24 | | (g) At the election of any serviceman not required to be | 25 | | otherwise
registered as a retailer under Section 2a of the | 26 | | Retailers' Occupation Tax Act,
made for each fiscal year sales |
| | | SB2243 Enrolled | - 47 - | LRB098 09659 HLH 39805 b |
|
| 1 | | of service in which the aggregate annual cost
price of tangible | 2 | | personal property transferred as an incident to the sales of
| 3 | | service is less than 35% (75% in the case of servicemen | 4 | | transferring
prescription drugs or servicemen engaged in | 5 | | graphic arts production) of the
aggregate annual total gross | 6 | | receipts from all sales of service. The purchase
of such | 7 | | tangible personal property by the serviceman shall be subject | 8 | | to tax
under the Retailers' Occupation Tax Act and the Use Tax | 9 | | Act.
However, if a
primary serviceman who has made the election | 10 | | described in this paragraph
subcontracts service work to a | 11 | | secondary serviceman who has also made the
election described | 12 | | in this paragraph, the primary serviceman does not
incur a Use | 13 | | Tax liability if the secondary serviceman (i) has paid or will | 14 | | pay
Use
Tax on his or her cost price of any tangible personal | 15 | | property transferred
to the primary serviceman and (ii) | 16 | | certifies that fact in writing to the
primary serviceman.
| 17 | | Tangible personal property transferred incident to the | 18 | | completion of a
maintenance agreement is exempt from the tax | 19 | | imposed pursuant to this Act.
| 20 | | Exemption (e) also includes machinery and equipment used in | 21 | | the
general maintenance or repair of such exempt machinery and | 22 | | equipment or for
in-house manufacture of exempt machinery and | 23 | | equipment.
The machinery and equipment exemption does not | 24 | | include machinery and equipment used in (i) the generation of | 25 | | electricity for wholesale or retail sale; (ii) the generation | 26 | | or treatment of natural or artificial gas for wholesale or |
| | | SB2243 Enrolled | - 48 - | LRB098 09659 HLH 39805 b |
|
| 1 | | retail sale that is delivered to customers through pipes, | 2 | | pipelines, or mains; or (iii) the treatment of water for | 3 | | wholesale or retail sale that is delivered to customers through | 4 | | pipes, pipelines, or mains. The provisions of this amendatory | 5 | | Act of the 98th General Assembly are declaratory of existing | 6 | | law as to the meaning and scope of this exemption. For the | 7 | | purposes of exemption (e), each of these terms shall have the | 8 | | following
meanings: (1) "manufacturing process" shall mean the | 9 | | production of any
article of tangible personal property, | 10 | | whether such article is a
finished product or an article for | 11 | | use in the process of manufacturing
or assembling a different | 12 | | article of tangible personal property, by
procedures commonly | 13 | | regarded as manufacturing, processing, fabricating,
or | 14 | | refining which changes some existing material or materials into | 15 | | a
material with a different form, use or name. In relation to a
| 16 | | recognized integrated business composed of a series of | 17 | | operations which
collectively constitute manufacturing, or | 18 | | individually constitute
manufacturing operations, the | 19 | | manufacturing process shall be deemed to
commence with the | 20 | | first operation or stage of production in the series,
and shall | 21 | | not be deemed to end until the completion of the final product
| 22 | | in the last operation or stage of production in the series; and | 23 | | further for
purposes of exemption (e), photoprocessing is | 24 | | deemed to be a manufacturing
process of tangible personal | 25 | | property for wholesale or retail sale;
(2) "assembling process" | 26 | | shall mean the production of any article of
tangible personal |
| | | SB2243 Enrolled | - 49 - | LRB098 09659 HLH 39805 b |
|
| 1 | | property, whether such article is a finished product
or an | 2 | | article for use in the process of manufacturing or assembling a
| 3 | | different article of tangible personal property, by the | 4 | | combination of
existing materials in a manner commonly regarded | 5 | | as assembling which
results in a material of a different form, | 6 | | use or name; (3) "machinery"
shall mean major mechanical | 7 | | machines or major components of such machines
contributing to a | 8 | | manufacturing or assembling process; and (4) "equipment"
shall | 9 | | include any independent device or tool separate from any | 10 | | machinery but
essential to an integrated manufacturing or | 11 | | assembly process; including
computers used primarily in a | 12 | | manufacturer's computer
assisted design, computer assisted | 13 | | manufacturing (CAD/CAM) system; or any
subunit or assembly | 14 | | comprising a component of any machinery or auxiliary,
adjunct | 15 | | or attachment parts of machinery, such as tools, dies, jigs, | 16 | | fixtures,
patterns and molds; or any parts which require | 17 | | periodic replacement in the
course of normal operation; but | 18 | | shall not include hand tools. Equipment
includes chemicals or | 19 | | chemicals acting as catalysts but only if the chemicals
or | 20 | | chemicals acting as catalysts effect a direct and immediate | 21 | | change upon a
product being manufactured or assembled for | 22 | | wholesale or retail sale or lease.
The purchaser of such | 23 | | machinery and equipment
who has an active resale registration | 24 | | number shall furnish such number to
the seller at the time of | 25 | | purchase. The purchaser of such machinery and
equipment and | 26 | | tools without an active resale registration number shall |
| | | SB2243 Enrolled | - 50 - | LRB098 09659 HLH 39805 b |
|
| 1 | | furnish
to the seller a certificate of exemption for each | 2 | | transaction stating facts
establishing the exemption for that | 3 | | transaction, which certificate shall
be available to the | 4 | | Department for inspection or audit.
| 5 | | Except as provided in Section 2d of this Act, the rolling | 6 | | stock exemption
applies to rolling
stock
used by an interstate
| 7 | | carrier for hire, even just between points in Illinois, if such | 8 | | rolling
stock transports, for hire, persons whose journeys or | 9 | | property whose
shipments originate or terminate outside | 10 | | Illinois.
| 11 | | Any informal rulings, opinions or letters issued by the | 12 | | Department in
response to an inquiry or request for any opinion | 13 | | from any person
regarding the coverage and applicability of | 14 | | exemption (e) to specific
devices shall be published, | 15 | | maintained as a public record, and made
available for public | 16 | | inspection and copying. If the informal ruling,
opinion or | 17 | | letter contains trade secrets or other confidential
| 18 | | information, where possible the Department shall delete such | 19 | | information
prior to publication. Whenever such informal | 20 | | rulings, opinions, or
letters contain any policy of general | 21 | | applicability, the Department
shall formulate and adopt such | 22 | | policy as a rule in accordance with the
provisions of the | 23 | | Illinois Administrative Procedure Act.
| 24 | | On and after July 1, 1987, no entity otherwise eligible | 25 | | under exemption
(c) of this Section shall make tax free | 26 | | purchases unless it has an active
exemption identification |
| | | SB2243 Enrolled | - 51 - | LRB098 09659 HLH 39805 b |
|
| 1 | | number issued by the Department.
| 2 | | "Serviceman" means any person who is engaged in the | 3 | | occupation of
making sales of service.
| 4 | | "Sale at Retail" means "sale at retail" as defined in the | 5 | | Retailers'
Occupation Tax Act.
| 6 | | "Supplier" means any person who makes sales of tangible | 7 | | personal
property to servicemen for the purpose of resale as an | 8 | | incident to a
sale of service.
| 9 | | (Source: P.A. 92-484, eff. 8-23-01; 93-23, eff. 6-20-03; 93-24, | 10 | | eff. 6-20-03; 93-1033, eff. 9-3-04.)
| 11 | | (35 ILCS 115/3) (from Ch. 120, par. 439.103)
| 12 | | Sec. 3. Tax imposed. A tax is imposed upon all
persons | 13 | | engaged in the business of
making sales of service (referred to | 14 | | as
"servicemen") on all tangible personal property
transferred | 15 | | as an incident of a sale of service,
including computer | 16 | | software, and including photographs, negatives,
and positives | 17 | | that are the
product of photoprocessing, but not including | 18 | | products of photoprocessing
produced for use in motion pictures | 19 | | for public commercial exhibition.
Beginning January 1, 2001, | 20 | | prepaid telephone calling arrangements shall be
considered | 21 | | tangible personal property subject to the tax imposed under | 22 | | this Act
regardless of the form in which those arrangements may | 23 | | be embodied,
transmitted, or fixed by any method now known or | 24 | | hereafter developed. Sales of (1) electricity delivered to | 25 | | customers by wire; (2) natural or artificial gas that is |
| | | SB2243 Enrolled | - 52 - | LRB098 09659 HLH 39805 b |
|
| 1 | | delivered to customers through pipes, pipelines, or mains; and | 2 | | (3) water that is delivered to customers through pipes, | 3 | | pipelines, or mains are not subject to tax under this Act. The | 4 | | provisions of this amendatory Act of the 98th General Assembly | 5 | | are declaratory of existing law as to the meaning and scope of | 6 | | this Act.
| 7 | | (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
| 8 | | (35 ILCS 115/3-25) (from Ch. 120, par. 439.103-25)
| 9 | | Sec. 3-25. Computer software. For the purposes of this Act, | 10 | | "computer
software" means a set of statements, data,
or | 11 | | instructions to be used directly or indirectly in a computer in | 12 | | order to
bring about a certain result in any form in which | 13 | | those statements, data, or
instructions may be embodied, | 14 | | transmitted, or fixed, by any method now known
or hereafter | 15 | | developed, regardless of whether the statements, data, or
| 16 | | instructions are capable of being perceived by or communicated | 17 | | to humans,
and includes prewritten or canned software that is | 18 | | held for repeated sale
or lease, and all associated | 19 | | documentation and materials, if any, whether
contained on | 20 | | magnetic tapes, discs, cards, or other devices or media, but
| 21 | | does not include software that is adapted to specific | 22 | | individualized
requirements of a purchaser, custom-made and | 23 | | modified software designed for
a particular or limited use by a | 24 | | purchaser, or software used to operate
exempt machinery and | 25 | | equipment used in the process of manufacturing or
assembling |
| | | SB2243 Enrolled | - 53 - | LRB098 09659 HLH 39805 b |
|
| 1 | | tangible personal property for wholesale or retail sale or
| 2 | | lease. Software used to operate machinery and equipment used in | 3 | | (i) the generation of electricity for wholesale or retail sale; | 4 | | (ii) the generation or treatment of natural or artificial gas | 5 | | for wholesale or retail sale that is delivered to customers | 6 | | through pipes, pipelines, or mains; or (iii) the treatment of | 7 | | water for wholesale or retail sale that is delivered to | 8 | | customers through pipes, pipelines, or mains is considered | 9 | | "computer software". The provisions of this amendatory Act of | 10 | | the 98th General Assembly are declaratory of existing law as to | 11 | | the meaning and scope of this exemption.
| 12 | | For the purposes of this Act, computer software shall be | 13 | | considered to be
tangible personal property.
| 14 | | (Source: P.A. 91-51, eff. 6-30-99.)
| 15 | | Section 20. The Retailers' Occupation Tax Act is amended by | 16 | | changing Sections 1d, 2, 2-5, 2-25, 2-45, and 2a as follows:
| 17 | | (35 ILCS 120/1d) (from Ch. 120, par. 440d)
| 18 | | Sec. 1d. Subject to the provisions of Section 1f, all | 19 | | tangible personal
property to be used or consumed within an | 20 | | enterprise zone established
pursuant to the "Illinois | 21 | | Enterprise Zone Act", as amended, or subject to
the provisions | 22 | | of Section 5.5 of the Illinois Enterprise Zone Act, all
| 23 | | tangible personal property to be used or consumed by any High | 24 | | Impact Business,
in the process of the manufacturing or |
| | | SB2243 Enrolled | - 54 - | LRB098 09659 HLH 39805 b |
|
| 1 | | assembly of tangible personal property
for wholesale or retail | 2 | | sale or lease or in the process of graphic arts
production if | 3 | | used or consumed at a facility which is a Department of
| 4 | | Commerce and Economic Opportunity certified business and | 5 | | located in a county
of more than 4,000 persons and less than | 6 | | 45,000 persons is exempt from
the tax imposed by
this Act. This | 7 | | exemption includes repair and replacement parts for
machinery | 8 | | and equipment used primarily in the process of manufacturing or
| 9 | | assembling tangible personal property or in the process of | 10 | | graphic arts
production if used or consumed at a facility which | 11 | | is a Department of
Commerce and Economic Opportunity certified | 12 | | business and located in a county
of more than 4,000 persons and | 13 | | less than 45,000 persons for wholesale or retail sale, or
| 14 | | lease, and equipment, manufacturing or graphic arts fuels, | 15 | | material and
supplies for the
maintenance, repair or operation | 16 | | of such manufacturing or assembling
or graphic arts machinery | 17 | | or equipment. The exemption provided in this Section for | 18 | | tangible personal property to be used or consumed in the | 19 | | process of manufacturing or assembly of tangible personal | 20 | | property for wholesale or retail sale or lease, and the repair | 21 | | and replacement parts for that machinery and equipment, does | 22 | | not apply to such property used or consumed in (i) the | 23 | | generation of electricity for wholesale or retail sale; (ii) | 24 | | the generation or treatment of natural or artificial gas for | 25 | | wholesale or retail sale that is delivered to customers through | 26 | | pipes, pipelines, or mains; or (iii) the treatment of water for |
| | | SB2243 Enrolled | - 55 - | LRB098 09659 HLH 39805 b |
|
| 1 | | wholesale or retail sale that is delivered to customers through | 2 | | pipes, pipelines, or mains. The provisions of this amendatory | 3 | | Act of the 98th General Assembly are declaratory of existing | 4 | | law as to the meaning and scope of this exemption.
| 5 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 6 | | (35 ILCS 120/2) (from Ch. 120, par. 441)
| 7 | | Sec. 2. Tax imposed. A tax is imposed upon persons engaged | 8 | | in the
business of selling at retail tangible personal | 9 | | property, including
computer software, and including | 10 | | photographs, negatives, and positives that
are the product of | 11 | | photoprocessing, but not including products of
photoprocessing | 12 | | produced for use in motion pictures for public commercial
| 13 | | exhibition.
Beginning January 1, 2001, prepaid telephone | 14 | | calling arrangements shall be
considered tangible personal | 15 | | property subject to the tax imposed under this Act
regardless | 16 | | of the form in which those arrangements may be embodied,
| 17 | | transmitted, or fixed by any method now known or hereafter | 18 | | developed. Sales of (1) electricity delivered to customers by | 19 | | wire; (2) natural or artificial gas that is delivered to | 20 | | customers through pipes, pipelines, or mains; and (3) water | 21 | | that is delivered to customers through pipes, pipelines, or | 22 | | mains are not subject to tax under this Act. The provisions of | 23 | | this amendatory Act of the 98th General Assembly are | 24 | | declaratory of existing law as to the meaning and scope of this | 25 | | Act.
|
| | | SB2243 Enrolled | - 56 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
| 2 | | (35 ILCS 120/2-5)
| 3 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 4 | | sale of
the following tangible personal property are exempt | 5 | | from the tax imposed
by this Act:
| 6 | | (1) Farm chemicals.
| 7 | | (2) Farm machinery and equipment, both new and used, | 8 | | including that
manufactured on special order, certified by the | 9 | | purchaser to be used
primarily for production agriculture or | 10 | | State or federal agricultural
programs, including individual | 11 | | replacement parts for the machinery and
equipment, including | 12 | | machinery and equipment purchased for lease,
and including | 13 | | implements of husbandry defined in Section 1-130 of
the | 14 | | Illinois Vehicle Code, farm machinery and agricultural | 15 | | chemical and
fertilizer spreaders, and nurse wagons required to | 16 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 17 | | but
excluding other motor vehicles required to be registered | 18 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or | 19 | | hoop houses used for propagating, growing, or
overwintering | 20 | | plants shall be considered farm machinery and equipment under
| 21 | | this item (2).
Agricultural chemical tender tanks and dry boxes | 22 | | shall include units sold
separately from a motor vehicle | 23 | | required to be licensed and units sold mounted
on a motor | 24 | | vehicle required to be licensed, if the selling price of the | 25 | | tender
is separately stated.
|
| | | SB2243 Enrolled | - 57 - | LRB098 09659 HLH 39805 b |
|
| 1 | | Farm machinery and equipment shall include precision | 2 | | farming equipment
that is
installed or purchased to be | 3 | | installed on farm machinery and equipment
including, but not | 4 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 5 | | or spreaders.
Precision farming equipment includes, but is not | 6 | | limited to,
soil testing sensors, computers, monitors, | 7 | | software, global positioning
and mapping systems, and other | 8 | | such equipment.
| 9 | | Farm machinery and equipment also includes computers, | 10 | | sensors, software, and
related equipment used primarily in the
| 11 | | computer-assisted operation of production agriculture | 12 | | facilities, equipment,
and activities such as, but
not limited | 13 | | to,
the collection, monitoring, and correlation of
animal and | 14 | | crop data for the purpose of
formulating animal diets and | 15 | | agricultural chemicals. This item (2) is exempt
from the | 16 | | provisions of
Section 2-70.
| 17 | | (3) Until July 1, 2003, distillation machinery and | 18 | | equipment, sold as a
unit or kit,
assembled or installed by the | 19 | | retailer, certified by the user to be used
only for the | 20 | | production of ethyl alcohol that will be used for consumption
| 21 | | as motor fuel or as a component of motor fuel for the personal | 22 | | use of the
user, and not subject to sale or resale.
| 23 | | (4) Until July 1, 2003 and beginning again September 1, | 24 | | 2004 through August 30, 2014, graphic arts machinery and | 25 | | equipment, including
repair and
replacement parts, both new and | 26 | | used, and including that manufactured on
special order or |
| | | SB2243 Enrolled | - 58 - | LRB098 09659 HLH 39805 b |
|
| 1 | | purchased for lease, certified by the purchaser to be used
| 2 | | primarily for graphic arts production.
Equipment includes | 3 | | chemicals or
chemicals acting as catalysts but only if
the | 4 | | chemicals or chemicals acting as catalysts effect a direct and | 5 | | immediate
change upon a
graphic arts product.
| 6 | | (5) A motor vehicle of the first division, a motor vehicle | 7 | | of the second division that is a self contained motor vehicle | 8 | | designed or permanently converted to provide living quarters | 9 | | for recreational, camping, or travel use, with direct walk | 10 | | through access to the living quarters from the driver's seat, | 11 | | or a motor vehicle of the second division that is of the van | 12 | | configuration designed for the transportation of not less than | 13 | | 7 nor more than 16 passengers, as defined in Section 1-146 of | 14 | | the Illinois Vehicle Code, that is used for automobile renting, | 15 | | as defined in the Automobile Renting Occupation and Use Tax | 16 | | Act. This paragraph is exempt from
the provisions of Section | 17 | | 2-70.
| 18 | | (6) Personal property sold by a teacher-sponsored student | 19 | | organization
affiliated with an elementary or secondary school | 20 | | located in Illinois.
| 21 | | (7) Until July 1, 2003, proceeds of that portion of the | 22 | | selling price of
a passenger car the
sale of which is subject | 23 | | to the Replacement Vehicle Tax.
| 24 | | (8) Personal property sold to an Illinois county fair | 25 | | association for
use in conducting, operating, or promoting the | 26 | | county fair.
|
| | | SB2243 Enrolled | - 59 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (9) Personal property sold to a not-for-profit arts
or | 2 | | cultural organization that establishes, by proof required by | 3 | | the Department
by
rule, that it has received an exemption under | 4 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 5 | | organized and operated primarily for the
presentation
or | 6 | | support of arts or cultural programming, activities, or | 7 | | services. These
organizations include, but are not limited to, | 8 | | music and dramatic arts
organizations such as symphony | 9 | | orchestras and theatrical groups, arts and
cultural service | 10 | | organizations, local arts councils, visual arts organizations,
| 11 | | and media arts organizations.
On and after the effective date | 12 | | of this amendatory Act of the 92nd General
Assembly, however, | 13 | | an entity otherwise eligible for this exemption shall not
make | 14 | | tax-free purchases unless it has an active identification | 15 | | number issued by
the Department.
| 16 | | (10) Personal property sold by a corporation, society, | 17 | | association,
foundation, institution, or organization, other | 18 | | than a limited liability
company, that is organized and | 19 | | operated as a not-for-profit service enterprise
for the benefit | 20 | | of persons 65 years of age or older if the personal property
| 21 | | was not purchased by the enterprise for the purpose of resale | 22 | | by the
enterprise.
| 23 | | (11) Personal property sold to a governmental body, to a | 24 | | corporation,
society, association, foundation, or institution | 25 | | organized and operated
exclusively for charitable, religious, | 26 | | or educational purposes, or to a
not-for-profit corporation, |
| | | SB2243 Enrolled | - 60 - | LRB098 09659 HLH 39805 b |
|
| 1 | | society, association, foundation, institution,
or organization | 2 | | that has no compensated officers or employees and that is
| 3 | | organized and operated primarily for the recreation of persons | 4 | | 55 years of
age or older. A limited liability company may | 5 | | qualify for the exemption under
this paragraph only if the | 6 | | limited liability company is organized and operated
| 7 | | exclusively for educational purposes. On and after July 1, | 8 | | 1987, however, no
entity otherwise eligible for this exemption | 9 | | shall make tax-free purchases
unless it has an active | 10 | | identification number issued by the Department.
| 11 | | (12) Tangible personal property sold to
interstate | 12 | | carriers
for hire for use as
rolling stock moving in interstate | 13 | | commerce or to lessors under leases of
one year or longer | 14 | | executed or in effect at the time of purchase by
interstate | 15 | | carriers for hire for use as rolling stock moving in interstate
| 16 | | commerce and equipment operated by a telecommunications | 17 | | provider, licensed as a
common carrier by the Federal | 18 | | Communications Commission, which is permanently
installed in | 19 | | or affixed to aircraft moving in interstate commerce.
| 20 | | (12-5) On and after July 1, 2003 and through June 30, 2004, | 21 | | motor vehicles of the second division
with a gross vehicle | 22 | | weight in excess of 8,000 pounds
that
are
subject to the | 23 | | commercial distribution fee imposed under Section 3-815.1 of
| 24 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 25 | | through June 30, 2005, the use in this State of motor vehicles | 26 | | of the second division: (i) with a gross vehicle weight rating |
| | | SB2243 Enrolled | - 61 - | LRB098 09659 HLH 39805 b |
|
| 1 | | in excess of 8,000 pounds; (ii) that are subject to the | 2 | | commercial distribution fee imposed under Section 3-815.1 of | 3 | | the Illinois Vehicle Code; and (iii) that are primarily used | 4 | | for commercial purposes. Through June 30, 2005, this
exemption | 5 | | applies to repair and replacement parts added
after the
initial | 6 | | purchase of such a motor vehicle if that motor vehicle is used | 7 | | in a
manner that
would qualify for the rolling stock exemption | 8 | | otherwise provided for in this
Act. For purposes of this | 9 | | paragraph, "used for commercial purposes" means the | 10 | | transportation of persons or property in furtherance of any | 11 | | commercial or industrial enterprise whether for-hire or not.
| 12 | | (13) Proceeds from sales to owners, lessors, or
shippers of
| 13 | | tangible personal property that is utilized by interstate | 14 | | carriers for
hire for use as rolling stock moving in interstate | 15 | | commerce
and equipment operated by a telecommunications | 16 | | provider, licensed as a
common carrier by the Federal | 17 | | Communications Commission, which is
permanently installed in | 18 | | or affixed to aircraft moving in interstate commerce.
| 19 | | (14) Machinery and equipment that will be used by the | 20 | | purchaser, or a
lessee of the purchaser, primarily in the | 21 | | process of manufacturing or
assembling tangible personal | 22 | | property for wholesale or retail sale or
lease, whether the | 23 | | sale or lease is made directly by the manufacturer or by
some | 24 | | other person, whether the materials used in the process are | 25 | | owned by
the manufacturer or some other person, or whether the | 26 | | sale or lease is made
apart from or as an incident to the |
| | | SB2243 Enrolled | - 62 - | LRB098 09659 HLH 39805 b |
|
| 1 | | seller's engaging in the service
occupation of producing | 2 | | machines, tools, dies, jigs, patterns, gauges, or
other similar | 3 | | items of no commercial value on special order for a particular
| 4 | | purchaser. The exemption provided by this paragraph (14) does | 5 | | not include machinery and equipment used in (i) the generation | 6 | | of electricity for wholesale or retail sale; (ii) the | 7 | | generation or treatment of natural or artificial gas for | 8 | | wholesale or retail sale that is delivered to customers through | 9 | | pipes, pipelines, or mains; or (iii) the treatment of water for | 10 | | wholesale or retail sale that is delivered to customers through | 11 | | pipes, pipelines, or mains. The provisions of this amendatory | 12 | | Act of the 98th General Assembly are declaratory of existing | 13 | | law as to the meaning and scope of this exemption.
| 14 | | (15) Proceeds of mandatory service charges separately | 15 | | stated on
customers' bills for purchase and consumption of food | 16 | | and beverages, to the
extent that the proceeds of the service | 17 | | charge are in fact turned over as
tips or as a substitute for | 18 | | tips to the employees who participate directly
in preparing, | 19 | | serving, hosting or cleaning up the food or beverage function
| 20 | | with respect to which the service charge is imposed.
| 21 | | (16) Petroleum products sold to a purchaser if the seller
| 22 | | is prohibited by federal law from charging tax to the | 23 | | purchaser.
| 24 | | (17) Tangible personal property sold to a common carrier by | 25 | | rail or
motor that
receives the physical possession of the | 26 | | property in Illinois and that
transports the property, or |
| | | SB2243 Enrolled | - 63 - | LRB098 09659 HLH 39805 b |
|
| 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, and beginning again on the | 25 | | effective date of this amendatory Act of the 97th General | 26 | | Assembly and thereafter, coal and aggregate exploration, |
| | | SB2243 Enrolled | - 64 - | LRB098 09659 HLH 39805 b |
|
| 1 | | mining, offhighway hauling,
processing,
maintenance, and | 2 | | reclamation equipment, including
replacement parts and | 3 | | equipment, and including
equipment purchased for lease, but | 4 | | excluding motor vehicles required to be
registered under the | 5 | | Illinois Vehicle Code.
| 6 | | (22) Fuel and petroleum products sold to or used by an air | 7 | | carrier,
certified by the carrier to be used for consumption, | 8 | | shipment, or storage
in the conduct of its business as an air | 9 | | common carrier, for a flight
destined for or returning from a | 10 | | location or locations
outside the United States without regard | 11 | | to previous or subsequent domestic
stopovers.
| 12 | | (23) A transaction in which the purchase order is received | 13 | | by a florist
who is located outside Illinois, but who has a | 14 | | florist located in Illinois
deliver the property to the | 15 | | purchaser or the purchaser's donee in Illinois.
| 16 | | (24) Fuel consumed or used in the operation of ships, | 17 | | barges, or vessels
that are used primarily in or for the | 18 | | transportation of property or the
conveyance of persons for | 19 | | hire on rivers bordering on this State if the
fuel is delivered | 20 | | by the seller to the purchaser's barge, ship, or vessel
while | 21 | | it is afloat upon that bordering river.
| 22 | | (25) Except as provided in item (25-5) of this Section, a
| 23 | | motor vehicle sold in this State to a nonresident even though | 24 | | the
motor vehicle is delivered to the nonresident in this | 25 | | State, if the motor
vehicle is not to be titled in this State, | 26 | | and if a drive-away permit
is issued to the motor vehicle as |
| | | SB2243 Enrolled | - 65 - | LRB098 09659 HLH 39805 b |
|
| 1 | | provided in Section 3-603 of the Illinois
Vehicle Code or if | 2 | | the nonresident purchaser has vehicle registration
plates to | 3 | | transfer to the motor vehicle upon returning to his or her home
| 4 | | state. The issuance of the drive-away permit or having
the
| 5 | | out-of-state registration plates to be transferred is prima | 6 | | facie evidence
that the motor vehicle will not be titled in | 7 | | this State.
| 8 | | (25-5) The exemption under item (25) does not apply if the | 9 | | state in which the motor vehicle will be titled does not allow | 10 | | a reciprocal exemption for a motor vehicle sold and delivered | 11 | | in that state to an Illinois resident but titled in Illinois. | 12 | | The tax collected under this Act on the sale of a motor vehicle | 13 | | in this State to a resident of another state that does not | 14 | | allow a reciprocal exemption shall be imposed at a rate equal | 15 | | to the state's rate of tax on taxable property in the state in | 16 | | which the purchaser is a resident, except that the tax shall | 17 | | not exceed the tax that would otherwise be imposed under this | 18 | | Act. At the time of the sale, the purchaser shall execute a | 19 | | statement, signed under penalty of perjury, of his or her | 20 | | intent to title the vehicle in the state in which the purchaser | 21 | | is a resident within 30 days after the sale and of the fact of | 22 | | the payment to the State of Illinois of tax in an amount | 23 | | equivalent to the state's rate of tax on taxable property in | 24 | | his or her state of residence and shall submit the statement to | 25 | | the appropriate tax collection agency in his or her state of | 26 | | residence. In addition, the retailer must retain a signed copy |
| | | SB2243 Enrolled | - 66 - | LRB098 09659 HLH 39805 b |
|
| 1 | | of the statement in his or her records. Nothing in this item | 2 | | shall be construed to require the removal of the vehicle from | 3 | | this state following the filing of an intent to title the | 4 | | vehicle in the purchaser's state of residence if the purchaser | 5 | | titles the vehicle in his or her state of residence within 30 | 6 | | days after the date of sale. The tax collected under this Act | 7 | | in accordance with this item (25-5) shall be proportionately | 8 | | distributed as if the tax were collected at the 6.25% general | 9 | | rate imposed under this Act.
| 10 | | (25-7) Beginning on July 1, 2007, no tax is imposed under | 11 | | this Act on the sale of an aircraft, as defined in Section 3 of | 12 | | the Illinois Aeronautics Act, if all of the following | 13 | | conditions are met: | 14 | | (1) the aircraft leaves this State within 15 days after | 15 | | the later of either the issuance of the final billing for | 16 | | the sale of the aircraft, or the authorized approval for | 17 | | return to service, completion of the maintenance record | 18 | | entry, and completion of the test flight and ground test | 19 | | for inspection, as required by 14 C.F.R. 91.407; | 20 | | (2) the aircraft is not based or registered in this | 21 | | State after the sale of the aircraft; and | 22 | | (3) the seller retains in his or her books and records | 23 | | and provides to the Department a signed and dated | 24 | | certification from the purchaser, on a form prescribed by | 25 | | the Department, certifying that the requirements of this | 26 | | item (25-7) are met. The certificate must also include the |
| | | SB2243 Enrolled | - 67 - | LRB098 09659 HLH 39805 b |
|
| 1 | | name and address of the purchaser, the address of the | 2 | | location where the aircraft is to be titled or registered, | 3 | | the address of the primary physical location of the | 4 | | aircraft, and other information that the Department may | 5 | | reasonably require. | 6 | | For purposes of this item (25-7): | 7 | | "Based in this State" means hangared, stored, or otherwise | 8 | | used, excluding post-sale customizations as defined in this | 9 | | Section, for 10 or more days in each 12-month period | 10 | | immediately following the date of the sale of the aircraft. | 11 | | "Registered in this State" means an aircraft registered | 12 | | with the Department of Transportation, Aeronautics Division, | 13 | | or titled or registered with the Federal Aviation | 14 | | Administration to an address located in this State. | 15 | | This paragraph (25-7) is exempt from the provisions
of
| 16 | | Section 2-70.
| 17 | | (26) Semen used for artificial insemination of livestock | 18 | | for direct
agricultural production.
| 19 | | (27) Horses, or interests in horses, registered with and | 20 | | meeting the
requirements of any of the
Arabian Horse Club | 21 | | Registry of America, Appaloosa Horse Club, American Quarter
| 22 | | Horse Association, United States
Trotting Association, or | 23 | | Jockey Club, as appropriate, used for
purposes of breeding or | 24 | | racing for prizes. This item (27) is exempt from the provisions | 25 | | of Section 2-70, and the exemption provided for under this item | 26 | | (27) applies for all periods beginning May 30, 1995, but no |
| | | SB2243 Enrolled | - 68 - | LRB098 09659 HLH 39805 b |
|
| 1 | | claim for credit or refund is allowed on or after January 1, | 2 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 3 | | paid during the period beginning May 30, 2000 and ending on | 4 | | January 1, 2008 (the effective date of Public Act 95-88).
| 5 | | (28) 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 | 12 | | this Act.
| 13 | | (29) 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 this Act.
| 18 | | (30) Beginning with taxable years ending on or after | 19 | | December
31, 1995
and
ending with taxable years ending on or | 20 | | before December 31, 2004,
personal property that is
donated for | 21 | | disaster relief to be used in a State or federally declared
| 22 | | disaster area in Illinois or bordering Illinois by a | 23 | | manufacturer or retailer
that is registered in this State to a | 24 | | corporation, society, association,
foundation, or institution | 25 | | that has been issued a sales tax exemption
identification | 26 | | number by the Department that assists victims of the disaster
|
| | | SB2243 Enrolled | - 69 - | LRB098 09659 HLH 39805 b |
|
| 1 | | who reside within the declared disaster area.
| 2 | | (31) Beginning with taxable years ending on or after | 3 | | December
31, 1995 and
ending with taxable years ending on or | 4 | | before December 31, 2004, personal
property that is used in the | 5 | | performance of infrastructure repairs in this
State, including | 6 | | but not limited to municipal roads and streets, access roads,
| 7 | | bridges, sidewalks, waste disposal systems, water and sewer | 8 | | line extensions,
water distribution and purification | 9 | | facilities, storm water drainage and
retention facilities, and | 10 | | sewage treatment facilities, resulting from a State
or | 11 | | federally declared disaster in Illinois or bordering Illinois | 12 | | when such
repairs are initiated on facilities located in the | 13 | | declared disaster area
within 6 months after the disaster.
| 14 | | (32) Beginning July 1, 1999, game or game birds sold at a | 15 | | "game breeding
and
hunting preserve area" as that term is used
| 16 | | in the
Wildlife Code. This paragraph is exempt from the | 17 | | provisions
of
Section 2-70.
| 18 | | (33) A motor vehicle, as that term is defined in Section | 19 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 20 | | corporation, limited liability
company, society, association, | 21 | | foundation, or institution that is determined by
the Department | 22 | | to be organized and operated exclusively for educational
| 23 | | purposes. For purposes of this exemption, "a corporation, | 24 | | limited liability
company, society, association, foundation, | 25 | | or institution organized and
operated
exclusively for | 26 | | educational purposes" means all tax-supported public schools,
|
| | | SB2243 Enrolled | - 70 - | LRB098 09659 HLH 39805 b |
|
| 1 | | private schools that offer systematic instruction in useful | 2 | | branches of
learning by methods common to public schools and | 3 | | that compare favorably in
their scope and intensity with the | 4 | | course of study presented in tax-supported
schools, and | 5 | | vocational or technical schools or institutes organized and
| 6 | | operated exclusively to provide a course of study of not less | 7 | | than 6 weeks
duration and designed to prepare individuals to | 8 | | follow a trade or to pursue a
manual, technical, mechanical, | 9 | | industrial, business, or commercial
occupation.
| 10 | | (34) Beginning January 1, 2000, personal property, | 11 | | including food, purchased
through fundraising events for the | 12 | | benefit of a public or private elementary or
secondary school, | 13 | | a group of those schools, or one or more school districts if
| 14 | | the events are sponsored by an entity recognized by the school | 15 | | district that
consists primarily of volunteers and includes | 16 | | parents and teachers of the
school children. This paragraph | 17 | | does not apply to fundraising events (i) for
the benefit of | 18 | | private home instruction or (ii) for which the fundraising
| 19 | | entity purchases the personal property sold at the events from | 20 | | another
individual or entity that sold the property for the | 21 | | purpose of resale by the
fundraising entity and that profits | 22 | | from the sale to the fundraising entity.
This paragraph is | 23 | | exempt from the provisions of Section 2-70.
| 24 | | (35) Beginning January 1, 2000 and through December 31, | 25 | | 2001, new or used
automatic vending machines that prepare and | 26 | | serve hot food and beverages,
including coffee, soup, and other |
| | | SB2243 Enrolled | - 71 - | LRB098 09659 HLH 39805 b |
|
| 1 | | 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,
| 6 | | coin-operated amusement and vending machines. This paragraph | 7 | | is exempt from
the provisions of Section 2-70.
| 8 | | (35-5) Beginning August 23, 2001 and through June 30, 2016, | 9 | | food for human consumption that is to be consumed off
the | 10 | | premises where it is sold (other than alcoholic beverages, soft | 11 | | drinks,
and food that has been prepared for immediate | 12 | | consumption) and prescription
and nonprescription medicines, | 13 | | drugs, medical appliances, and insulin, urine
testing | 14 | | materials, syringes, and needles used by diabetics, for human | 15 | | use, when
purchased for use by a person receiving medical | 16 | | assistance under Article V of
the Illinois Public Aid Code who | 17 | | resides in a licensed long-term care facility,
as defined in | 18 | | the Nursing Home Care Act, or a licensed facility as defined in | 19 | | the ID/DD Community Care Act or the Specialized Mental Health | 20 | | Rehabilitation Act.
| 21 | | (36) Beginning August 2, 2001, computers and | 22 | | communications equipment
utilized for any hospital purpose and | 23 | | equipment used in the diagnosis,
analysis, or treatment of | 24 | | hospital patients sold to a lessor who leases the
equipment, | 25 | | under a lease of one year or longer executed or in effect at | 26 | | the
time of the purchase, to a hospital that has been issued an |
| | | SB2243 Enrolled | - 72 - | LRB098 09659 HLH 39805 b |
|
| 1 | | active tax
exemption identification number by the Department | 2 | | under Section 1g of this Act.
This paragraph is exempt from the | 3 | | provisions of Section 2-70.
| 4 | | (37) Beginning August 2, 2001, personal property sold to a | 5 | | lessor who
leases the property, under a lease of one year or | 6 | | longer executed or in effect
at the time of the purchase, to a | 7 | | governmental body that has been issued an
active tax exemption | 8 | | identification number by the Department under Section 1g
of | 9 | | this Act. This paragraph is exempt from the provisions of | 10 | | Section 2-70.
| 11 | | (38) Beginning on January 1, 2002 and through June 30, | 12 | | 2016, tangible personal property purchased
from an Illinois | 13 | | retailer by a taxpayer engaged in centralized purchasing
| 14 | | activities in Illinois who will, upon receipt of the property | 15 | | in Illinois,
temporarily store the property in Illinois (i) for | 16 | | the purpose of subsequently
transporting it outside this State | 17 | | for use or consumption thereafter solely
outside this State or | 18 | | (ii) for the purpose of being processed, fabricated, or
| 19 | | manufactured into, attached to, or incorporated into other | 20 | | tangible personal
property to be transported outside this State | 21 | | and thereafter used or consumed
solely outside this State. The | 22 | | Director of Revenue shall, pursuant to rules
adopted in | 23 | | accordance with the Illinois Administrative Procedure Act, | 24 | | issue a
permit to any taxpayer in good standing with the | 25 | | Department who is eligible for
the exemption under this | 26 | | paragraph (38). The permit issued under
this paragraph (38) |
| | | SB2243 Enrolled | - 73 - | LRB098 09659 HLH 39805 b |
|
| 1 | | shall authorize the holder, to the extent and
in the manner | 2 | | specified in the rules adopted under this Act, to purchase
| 3 | | tangible personal property from a retailer exempt from the | 4 | | taxes imposed by
this Act. Taxpayers shall maintain all | 5 | | necessary books and records to
substantiate the use and | 6 | | consumption of all such tangible personal property
outside of | 7 | | the State of Illinois.
| 8 | | (39) Beginning January 1, 2008, tangible personal property | 9 | | used in the construction or maintenance of a community water | 10 | | supply, as defined under Section 3.145 of the Environmental | 11 | | Protection Act, that is operated by a not-for-profit | 12 | | corporation that holds a valid water supply permit issued under | 13 | | Title IV of the Environmental Protection Act. This paragraph is | 14 | | exempt from the provisions of Section 2-70.
| 15 | | (40) Beginning January 1, 2010, materials, parts, | 16 | | equipment, components, and furnishings incorporated into or | 17 | | upon an aircraft as part of the modification, refurbishment, | 18 | | completion, replacement, repair, or maintenance of the | 19 | | aircraft. This exemption includes consumable supplies used in | 20 | | the modification, refurbishment, completion, replacement, | 21 | | repair, and maintenance of aircraft, but excludes any | 22 | | materials, parts, equipment, components, and consumable | 23 | | supplies used in the modification, replacement, repair, and | 24 | | maintenance of aircraft engines or power plants, whether such | 25 | | engines or power plants are installed or uninstalled upon any | 26 | | such aircraft. "Consumable supplies" include, but are not |
| | | SB2243 Enrolled | - 74 - | LRB098 09659 HLH 39805 b |
|
| 1 | | limited to, adhesive, tape, sandpaper, general purpose | 2 | | lubricants, cleaning solution, latex gloves, and protective | 3 | | films. This exemption applies only to those organizations that | 4 | | (i) hold an Air Agency Certificate and are empowered to operate | 5 | | an approved repair station by the Federal Aviation | 6 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 7 | | operations in accordance with Part 145 of the Federal Aviation | 8 | | Regulations. The exemption does not include aircraft operated | 9 | | by a commercial air carrier providing scheduled passenger air | 10 | | service pursuant to authority issued under Part 121 or Part 129 | 11 | | of the Federal Aviation Regulations. | 12 | | (41) Tangible personal property sold to a | 13 | | public-facilities corporation, as described in Section | 14 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 15 | | constructing or furnishing a municipal convention hall, but | 16 | | only if the legal title to the municipal convention hall is | 17 | | transferred to the municipality without any further | 18 | | consideration by or on behalf of the municipality at the time | 19 | | of the completion of the municipal convention hall or upon the | 20 | | retirement or redemption of any bonds or other debt instruments | 21 | | issued by the public-facilities corporation in connection with | 22 | | the development of the municipal convention hall. This | 23 | | exemption includes existing public-facilities corporations as | 24 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 25 | | This paragraph is exempt from the provisions of Section 2-70. | 26 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; |
| | | SB2243 Enrolled | - 75 - | LRB098 09659 HLH 39805 b |
|
| 1 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. | 2 | | 7-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. | 3 | | 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. | 4 | | 7-9-12.)
| 5 | | (35 ILCS 120/2-25) (from Ch. 120, par. 441-25)
| 6 | | Sec. 2-25. Computer software. For the purposes of this Act, | 7 | | "computer
software" means a set of statements, data,
or | 8 | | instructions to be used directly or indirectly in a computer in | 9 | | order to
bring about a certain result in any form in which | 10 | | those statements, data, or
instructions may be embodied, | 11 | | transmitted, or fixed, by any method now known
or hereafter | 12 | | developed, regardless of whether the statements, data, or
| 13 | | instructions are capable of being perceived by or communicated | 14 | | to humans,
and includes prewritten or canned software that is | 15 | | held for repeated sale
or lease, and all associated | 16 | | documentation and materials, if any, whether
contained on | 17 | | magnetic tapes, discs, cards, or other devices or media, but
| 18 | | does not include software that is adapted to specific | 19 | | individualized
requirements of a purchaser, custom-made and | 20 | | modified software designed for
a particular or limited use by a | 21 | | purchaser, or software used to operate
exempt machinery and | 22 | | equipment used in the process of manufacturing or
assembling | 23 | | tangible personal property for wholesale or retail sale or
| 24 | | lease. Software used to operate machinery and equipment used in | 25 | | (i) the generation of electricity for wholesale or retail sale; |
| | | SB2243 Enrolled | - 76 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (ii) the generation or treatment of natural or artificial gas | 2 | | for wholesale or retail sale that is delivered to customers | 3 | | through pipes, pipelines, or mains; or (iii) the treatment of | 4 | | water for wholesale or retail sale that is delivered to | 5 | | customers through pipes, pipelines, or mains is considered | 6 | | "computer software". The provisions of this amendatory Act of | 7 | | the 98th General Assembly are declaratory of existing law as to | 8 | | the meaning and scope of this exemption.
| 9 | | For the purposes of this Act, computer software shall be | 10 | | considered to be
tangible personal property.
| 11 | | (Source: P.A. 91-51, eff. 6-30-99.)
| 12 | | (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
| 13 | | Sec. 2-45. Manufacturing and assembly exemption. The | 14 | | manufacturing
and assembly machinery and equipment exemption | 15 | | includes machinery
and equipment that replaces machinery
and | 16 | | equipment in an existing manufacturing facility as well as | 17 | | machinery
and equipment that are for use in an expanded or new
| 18 | | manufacturing facility.
| 19 | | The machinery and equipment exemption also includes | 20 | | machinery
and equipment used in the
general maintenance or | 21 | | repair of exempt machinery and equipment or for
in-house | 22 | | manufacture of exempt machinery and equipment.
The machinery | 23 | | and equipment exemption does not include machinery and | 24 | | equipment used in (i) the generation of electricity for | 25 | | wholesale or retail sale; (ii) the generation or treatment of |
| | | SB2243 Enrolled | - 77 - | LRB098 09659 HLH 39805 b |
|
| 1 | | natural or artificial gas for wholesale or retail sale that is | 2 | | delivered to customers through pipes, pipelines, or mains; or | 3 | | (iii) the treatment of water for wholesale or retail sale that | 4 | | is delivered to customers through pipes, pipelines, or mains. | 5 | | The provisions of this amendatory Act of the 98th General | 6 | | Assembly are declaratory of existing law as to the meaning and | 7 | | scope of this exemption. For the purposes of this exemption, | 8 | | terms have the following meanings:
| 9 | | (1) "Manufacturing process" means the production of an | 10 | | article of
tangible personal property, whether the article | 11 | | is a finished product or an
article for use in the process | 12 | | of manufacturing or assembling a different
article of | 13 | | tangible personal property, by a procedure commonly | 14 | | regarded as
manufacturing, processing, fabricating, or | 15 | | refining that changes some
existing material or materials | 16 | | into a material with a different form, use,
or name. In | 17 | | relation to a recognized integrated business composed of a
| 18 | | series of operations that collectively constitute | 19 | | manufacturing, or
individually constitute manufacturing | 20 | | operations, the manufacturing process
commences with the | 21 | | first operation or stage of production in the series and
| 22 | | does not end until the completion of the final product in | 23 | | the last
operation or stage of production in the series. | 24 | | For purposes of this
exemption, photoprocessing is a | 25 | | manufacturing process of tangible personal
property for | 26 | | wholesale or retail sale.
|
| | | SB2243 Enrolled | - 78 - | LRB098 09659 HLH 39805 b |
|
| 1 | | (2) "Assembling process" means the production of an | 2 | | article of
tangible personal property, whether the article | 3 | | is a finished product or an
article for use in the process | 4 | | of manufacturing or assembling a different
article of | 5 | | tangible personal property, by the combination of existing
| 6 | | materials in a manner commonly regarded as assembling that | 7 | | results in a
material of a different form, use, or name.
| 8 | | (3) "Machinery" means major mechanical machines or | 9 | | major components of
those machines contributing to a | 10 | | manufacturing or assembling process.
| 11 | | (4) "Equipment" includes an independent device or tool | 12 | | separate from
machinery but essential to an integrated | 13 | | manufacturing or assembly process;
including computers | 14 | | used primarily in a manufacturer's computer assisted | 15 | | design, computer assisted manufacturing
(CAD/CAM) system; | 16 | | any subunit or assembly comprising a component of any
| 17 | | machinery or auxiliary, adjunct, or attachment parts of | 18 | | machinery, such as
tools, dies, jigs, fixtures, patterns, | 19 | | and molds; and any parts that
require periodic replacement | 20 | | in the course of normal operation; but does
not include | 21 | | hand tools. Equipment includes chemicals or chemicals | 22 | | acting as
catalysts but only if
the chemicals or chemicals | 23 | | acting as catalysts effect a direct and
immediate change | 24 | | upon a
product being manufactured or assembled for | 25 | | wholesale or retail sale or
lease.
| 26 | | (5) "Production related tangible personal property" |
| | | SB2243 Enrolled | - 79 - | LRB098 09659 HLH 39805 b |
|
| 1 | | means all tangible personal property that is used or | 2 | | consumed by the purchaser in a manufacturing facility in | 3 | | which a manufacturing process takes place and includes, | 4 | | without limitation, tangible personal property that is | 5 | | purchased for incorporation into real estate within a | 6 | | manufacturing facility and tangible personal property that | 7 | | is used or consumed in activities such as research and | 8 | | development, preproduction material handling, receiving, | 9 | | quality control, inventory control, storage, staging, and | 10 | | packaging for shipping and transportation purposes. | 11 | | "Production related tangible personal property" does not | 12 | | include (i) tangible personal property that is used, within | 13 | | or without a manufacturing facility, in sales, purchasing, | 14 | | accounting, fiscal management, marketing, personnel | 15 | | recruitment or selection, or landscaping or (ii) tangible | 16 | | personal property that is required to be titled or | 17 | | registered with a department, agency, or unit of federal, | 18 | | State, or local government.
| 19 | | The manufacturing and assembling machinery and equipment | 20 | | exemption includes production related tangible personal | 21 | | property that is purchased on or after July 1, 2007 and on or | 22 | | before June 30, 2008. The exemption for production related | 23 | | tangible personal property is subject to both of the following | 24 | | limitations: | 25 | | (1) The maximum amount of the exemption for any one | 26 | | taxpayer may not exceed 5% of the purchase price of |
| | | SB2243 Enrolled | - 80 - | LRB098 09659 HLH 39805 b |
|
| 1 | | production related tangible personal property that is | 2 | | purchased on or after July 1, 2007 and on or before June | 3 | | 30, 2008. A credit under Section 3-85 of this Act may not | 4 | | be earned by the purchase of production related tangible | 5 | | personal property for which an exemption is received under | 6 | | this Section. | 7 | | (2) The maximum aggregate amount of the exemptions for | 8 | | production related tangible personal property awarded | 9 | | under this Act and the Use
Tax Act to all taxpayers may not | 10 | | exceed $10,000,000. If the claims for the exemption exceed | 11 | | $10,000,000, then the Department shall reduce the amount of | 12 | | the exemption to each taxpayer on a pro rata basis. | 13 | | The Department may adopt rules to implement and administer the | 14 | | exemption for production related tangible personal property. | 15 | | The manufacturing and assembling machinery and equipment | 16 | | exemption
includes the sale of materials to a purchaser who | 17 | | produces exempted types
of machinery, equipment, or tools and | 18 | | who rents or leases that machinery,
equipment, or tools to a | 19 | | manufacturer of tangible personal property. This
exemption | 20 | | also includes the sale of materials to a purchaser who | 21 | | manufactures
those materials into an exempted type of | 22 | | machinery, equipment, or tools
that the purchaser uses himself | 23 | | or herself in the manufacturing of tangible
personal property. | 24 | | The purchaser of the machinery and equipment who has an
active | 25 | | resale registration number shall furnish that number to the | 26 | | seller
at the time of purchase. A purchaser of the machinery, |
| | | SB2243 Enrolled | - 81 - | LRB098 09659 HLH 39805 b |
|
| 1 | | equipment, and
tools without an active resale registration | 2 | | number shall furnish to the
seller a certificate of exemption | 3 | | for each transaction stating facts
establishing the exemption | 4 | | for that transaction, and that certificate shall
be available | 5 | | to the Department for inspection or audit. Informal
rulings, | 6 | | opinions, or letters issued by the Department in response to an
| 7 | | inquiry or request for an opinion from any person regarding the | 8 | | coverage and
applicability of this exemption to specific | 9 | | devices shall be published,
maintained as a public record,
and | 10 | | made available for public inspection and copying. If the | 11 | | informal
ruling, opinion, or letter contains trade secrets or | 12 | | other confidential
information, where possible, the Department | 13 | | shall delete that information
before publication. Whenever | 14 | | informal rulings, opinions, or letters
contain a policy of | 15 | | general applicability, the Department shall
formulate and | 16 | | adopt that policy as a rule in accordance with the Illinois
| 17 | | Administrative Procedure Act.
| 18 | | (Source: P.A. 95-707, eff. 1-11-08; 96-328, eff. 8-11-09.)
| 19 | | (35 ILCS 120/2a) (from Ch. 120, par. 441a) | 20 | | Sec. 2a. It is unlawful for any person to engage in the | 21 | | business of
selling tangible personal property at retail in | 22 | | this State without a
certificate of registration from the | 23 | | Department. Application
for a certificate of registration | 24 | | shall be made to the Department upon
forms furnished by it. | 25 | | Each such application shall be signed and verified
and shall |
| | | SB2243 Enrolled | - 82 - | LRB098 09659 HLH 39805 b |
|
| 1 | | state: (1) the name and social security number of the
| 2 | | applicant; (2) the address of his principal place
of business; | 3 | | (3) the address of the principal place of business from which
| 4 | | he engages in the business of selling tangible personal | 5 | | property at retail
in this State and the addresses of all other | 6 | | places of business, if any
(enumerating such addresses, if any, | 7 | | in a separate list attached to and
made a part of the | 8 | | application), from which he engages in the business of
selling | 9 | | tangible personal property at retail in this State; (4)
the
| 10 | | name and address of the person or persons who will be | 11 | | responsible for
filing returns and payment of taxes due under | 12 | | this Act; (5) in the case of a publicly traded corporation, the | 13 | | name and title of the Chief Financial Officer, Chief Operating | 14 | | Officer, and any other officer or employee with responsibility | 15 | | for preparing tax returns under this Act, along with the last 4 | 16 | | digits of each of their social security numbers, and in the
| 17 | | case of all other corporations
a corporation , the name, title, | 18 | | and social security number of
each corporate officer; (6) in | 19 | | the case of a limited liability
company, the
name, social | 20 | | security number, and FEIN number of
each
manager and member; | 21 | | and (7) such other information
as the Department may reasonably | 22 | | require. The application shall contain
an acceptance of | 23 | | responsibility signed by the person or persons who will be
| 24 | | responsible for filing returns and payment of the taxes due | 25 | | under this
Act. If the applicant will sell tangible personal | 26 | | property at retail
through vending machines, his application to |
| | | SB2243 Enrolled | - 83 - | LRB098 09659 HLH 39805 b |
|
| 1 | | register shall indicate the
number of vending machines to be so | 2 | | operated. If requested by the Department at any time, that | 3 | | person shall verify the total number of vending machines he or | 4 | | she uses in his or her business of selling tangible personal | 5 | | property at retail. | 6 | | The Department may deny a certificate of registration to | 7 | | any applicant
if the owner, any partner, any manager or member | 8 | | of a limited liability
company, or a corporate officer of the | 9 | | applicant, is or
has been the owner, a partner, a manager or | 10 | | member of a limited
liability company, or a corporate officer, | 11 | | of another retailer
that is in default for moneys due under | 12 | | this Act. | 13 | | The Department may require an applicant for a certificate | 14 | | of registration hereunder to, at
the time of filing such | 15 | | application, furnish a bond from a surety company
authorized to | 16 | | do business in the State of Illinois, or an irrevocable
bank | 17 | | letter of credit or a bond signed by 2
personal sureties who | 18 | | have filed, with the Department, sworn statements
disclosing | 19 | | net assets equal to at least 3 times the amount of the bond to
| 20 | | be required of such applicant, or a bond secured by an | 21 | | assignment of a bank
account or certificate of deposit, stocks | 22 | | or bonds, conditioned upon the
applicant paying to the State of | 23 | | Illinois all moneys becoming due under
this Act and under any | 24 | | other State tax law or municipal or county tax
ordinance or | 25 | | resolution under which the certificate of registration that is
| 26 | | issued to the applicant under this Act will permit the |
| | | SB2243 Enrolled | - 84 - | LRB098 09659 HLH 39805 b |
|
| 1 | | applicant to engage
in business without registering separately | 2 | | under such other law, ordinance
or resolution. In making a | 3 | | determination as to whether to require a bond or other | 4 | | security, the Department shall take into consideration whether | 5 | | the owner, any partner, any manager or member of a limited | 6 | | liability company, or a corporate officer of the applicant is | 7 | | or has been the owner, a partner, a manager or member of a | 8 | | limited liability company, or a corporate officer of another | 9 | | retailer that is in default for moneys due under this Act or | 10 | | any other tax or fee Act administered by the Department; and | 11 | | whether the owner, any partner, any manager or member of a | 12 | | limited liability company, or a corporate officer of the | 13 | | applicant is or has been the owner, a partner, a manager or | 14 | | member of a limited liability company, or a corporate officer | 15 | | of another retailer whose certificate of registration has been | 16 | | revoked within the previous 5 years under this Act or any other | 17 | | tax or fee Act administered by the Department. If a bond or | 18 | | other security is required, the Department shall fix the amount | 19 | | of the bond or other security, taking into consideration the | 20 | | amount of money expected to become due from the applicant under | 21 | | this Act and under any other State tax law or municipal or | 22 | | county tax ordinance or resolution under which the certificate | 23 | | of registration that is issued to the applicant under this Act | 24 | | will permit the applicant to engage in business without | 25 | | registering separately under such other law, ordinance, or | 26 | | resolution. The amount of security required by
the Department |
| | | SB2243 Enrolled | - 85 - | LRB098 09659 HLH 39805 b |
|
| 1 | | shall be such as, in its opinion, will protect the State of
| 2 | | Illinois against failure to pay the amount which may become due | 3 | | from the
applicant under this Act and under any other State tax | 4 | | law or municipal or
county tax ordinance or resolution under | 5 | | which the certificate of
registration that is issued to the | 6 | | applicant under this Act will permit the
applicant to engage in | 7 | | business without registering separately under such
other law, | 8 | | ordinance or resolution, but the amount of the security | 9 | | required
by the Department shall not exceed three times the | 10 | | amount of the
applicant's average monthly tax liability, or | 11 | | $50,000.00, whichever amount
is lower. | 12 | | No certificate of registration under this Act shall be | 13 | | issued by the
Department until the applicant provides the | 14 | | Department with satisfactory
security, if required, as herein | 15 | | provided for. | 16 | | Upon receipt of the application for certificate of | 17 | | registration in
proper form, and upon approval by the | 18 | | Department of the security furnished
by the applicant, if | 19 | | required, the Department shall issue to such applicant a
| 20 | | certificate of registration which shall permit the person to | 21 | | whom it is
issued to engage in the business of selling tangible | 22 | | personal property at
retail in this State. The certificate of | 23 | | registration shall be
conspicuously displayed at the place of | 24 | | business which the person so
registered states in his | 25 | | application to be the principal place of business
from which he | 26 | | engages in the business of selling tangible personal property
|
| | | SB2243 Enrolled | - 86 - | LRB098 09659 HLH 39805 b |
|
| 1 | | at retail in this State. | 2 | | No certificate of registration issued to a taxpayer who | 3 | | files returns
required by this Act on a monthly basis shall be | 4 | | valid after the expiration
of 5 years from the date of its | 5 | | issuance or last renewal. The expiration
date of a | 6 | | sub-certificate of registration shall be that of the | 7 | | certificate
of registration to which the sub-certificate | 8 | | relates. A certificate of
registration shall automatically be | 9 | | renewed, subject to revocation as
provided by this Act, for an | 10 | | additional 5 years from the date of its
expiration unless | 11 | | otherwise notified by the Department as provided by this
| 12 | | paragraph. Where a taxpayer to whom a certificate of | 13 | | registration is
issued under this Act is in default to the | 14 | | State of Illinois for delinquent
returns or for moneys due
| 15 | | under this Act or any other State tax law or municipal or | 16 | | county ordinance
administered or enforced by the Department, | 17 | | the Department shall, not less
than 120 days before the | 18 | | expiration date of such certificate of
registration, give | 19 | | notice to the taxpayer to whom the certificate was
issued of | 20 | | the account period of the delinquent returns, the amount of
| 21 | | tax,
penalty and interest due and owing from the
taxpayer, and | 22 | | that the certificate of registration shall not be
automatically | 23 | | renewed upon its expiration date unless the taxpayer, on or
| 24 | | before the date of expiration, has filed and paid the | 25 | | delinquent returns or
paid the defaulted amount in full. A
| 26 | | taxpayer to whom such a notice is issued shall be deemed an |
| | | SB2243 Enrolled | - 87 - | LRB098 09659 HLH 39805 b |
|
| 1 | | applicant for
renewal. The Department shall promulgate | 2 | | regulations establishing
procedures for taxpayers who file | 3 | | returns on a monthly basis but desire and
qualify to change to | 4 | | a quarterly or yearly filing basis and will no longer
be | 5 | | subject to renewal under this Section, and for taxpayers who | 6 | | file
returns on a yearly or quarterly basis but who desire or | 7 | | are required to
change to a monthly filing basis and will be | 8 | | subject to renewal under
this Section. | 9 | | The Department may in its discretion approve renewal by an | 10 | | applicant
who is in default if, at the time of application for | 11 | | renewal, the applicant
files all of the delinquent returns or | 12 | | pays to the Department such
percentage of the defaulted amount | 13 | | as may be
determined by the Department and agrees in writing to | 14 | | waive all limitations
upon the Department for collection of the | 15 | | remaining defaulted amount to the
Department over a period not | 16 | | to exceed 5 years from the date of renewal of
the certificate; | 17 | | however, no renewal application submitted by an applicant
who | 18 | | is in default shall be approved if the immediately preceding | 19 | | renewal by
the applicant was conditioned upon the installment | 20 | | payment
agreement described in this Section. The payment | 21 | | agreement herein provided
for shall be in addition to and not | 22 | | in lieu of the security that may be required by
this Section of | 23 | | a taxpayer who is no longer considered a prior continuous
| 24 | | compliance taxpayer. The execution of the payment agreement as | 25 | | provided in
this Act shall not toll the accrual of interest at | 26 | | the statutory rate. |
| | | SB2243 Enrolled | - 88 - | LRB098 09659 HLH 39805 b |
|
| 1 | | The Department may suspend a certificate of registration if | 2 | | the Department finds that the person to whom the certificate of | 3 | | registration has been issued knowingly sold contraband | 4 | | cigarettes. | 5 | | A certificate of registration issued under this Act more | 6 | | than 5 years
before the effective date of this amendatory Act | 7 | | of 1989 shall expire and
be subject to the renewal provisions | 8 | | of this Section on the next
anniversary of the date of issuance | 9 | | of such certificate which occurs more
than 6 months after the | 10 | | effective date of this amendatory Act of 1989. A
certificate of | 11 | | registration issued less than 5 years before the effective
date | 12 | | of this amendatory Act of 1989 shall expire and be subject to | 13 | | the
renewal provisions of this Section on the 5th anniversary | 14 | | of the issuance
of the certificate. | 15 | | If the person so registered states that he operates other | 16 | | places of
business from which he engages in the business of | 17 | | selling tangible personal
property at retail in this State, the | 18 | | Department shall furnish him with a
sub-certificate of | 19 | | registration for each such place of business, and the
applicant | 20 | | shall display the appropriate sub-certificate of registration | 21 | | at
each such place of business. All sub-certificates of | 22 | | registration shall
bear the same registration number as that | 23 | | appearing upon the certificate of
registration to which such | 24 | | sub-certificates relate. | 25 | | If the applicant will sell tangible personal property at | 26 | | retail through
vending machines, the Department shall furnish |
| | | SB2243 Enrolled | - 89 - | LRB098 09659 HLH 39805 b |
|
| 1 | | him with a sub-certificate
of registration for each such | 2 | | vending machine, and the applicant shall
display the | 3 | | appropriate sub-certificate of registration on each such
| 4 | | vending machine by attaching the sub-certificate of | 5 | | registration to a
conspicuous part of such vending machine. If | 6 | | a person who is registered to sell tangible personal property | 7 | | at retail through vending machines adds an additional vending | 8 | | machine or additional vending machines to the number of vending | 9 | | machines he or she uses in his or her business of selling | 10 | | tangible personal property at retail, he or she shall notify | 11 | | the Department, on a form prescribed by the Department, to | 12 | | request an additional sub-certificate or additional | 13 | | sub-certificates of registration, as applicable. With each | 14 | | such request, the applicant shall report the number of | 15 | | sub-certificates of registration he or she is requesting as | 16 | | well as the total number of vending machines from which he or | 17 | | she makes retail sales. | 18 | | Where the same person engages in 2 or more businesses of | 19 | | selling
tangible personal property at retail in this State, | 20 | | which businesses are
substantially different in character or | 21 | | engaged in under different trade
names or engaged in under | 22 | | other substantially dissimilar circumstances (so
that it is | 23 | | more practicable, from an accounting, auditing or bookkeeping
| 24 | | standpoint, for such businesses to be separately registered), | 25 | | the
Department may require or permit such person (subject to | 26 | | the same
requirements concerning the furnishing of security as |
| | | SB2243 Enrolled | - 90 - | LRB098 09659 HLH 39805 b |
|
| 1 | | those that are
provided for hereinbefore in this Section as to | 2 | | each application for a
certificate of registration) to apply | 3 | | for and obtain a separate certificate
of registration for each | 4 | | such business or for any of such businesses, under
a single | 5 | | certificate of registration supplemented by related
| 6 | | sub-certificates of registration. | 7 | | Any person who is registered under the "Retailers' | 8 | | Occupation Tax Act"
as of March 8, 1963, and who, during the | 9 | | 3-year period immediately prior to
March 8, 1963, or during a | 10 | | continuous 3-year period part of which passed
immediately | 11 | | before and the remainder of which passes immediately after
| 12 | | March 8, 1963, has been so registered continuously and who is | 13 | | determined by
the Department not to have been either delinquent | 14 | | or deficient in the
payment of tax liability during that period | 15 | | under this Act or under any
other State tax law or municipal or | 16 | | county tax ordinance or resolution
under which the certificate | 17 | | of registration that is issued to the
registrant under this Act | 18 | | will permit the registrant to engage in business
without | 19 | | registering separately under such other law, ordinance or
| 20 | | resolution, shall be considered to be a Prior Continuous | 21 | | Compliance
taxpayer. Also any taxpayer who has, as verified by | 22 | | the Department,
faithfully and continuously complied with the | 23 | | condition of his bond or
other security under the provisions of | 24 | | this Act for a period of 3
consecutive years shall be | 25 | | considered to be a Prior Continuous Compliance
taxpayer. | 26 | | Every Prior Continuous Compliance taxpayer shall be exempt |
| | | SB2243 Enrolled | - 91 - | LRB098 09659 HLH 39805 b |
|
| 1 | | from all
requirements under this Act concerning the furnishing | 2 | | of a bond or other security as a
condition precedent to his | 3 | | being authorized to engage in the business of
selling tangible | 4 | | personal property at retail in this State. This exemption
shall | 5 | | continue for each such taxpayer until such time as he may be
| 6 | | determined by the Department to be delinquent in the filing of | 7 | | any returns,
or is determined by the Department (either through | 8 | | the Department's
issuance of a final assessment which has | 9 | | become final under the Act, or by
the taxpayer's filing of a | 10 | | return which admits tax that is not paid to be
due) to be | 11 | | delinquent or deficient in the paying of any tax under this Act
| 12 | | or under any other State tax law or municipal or county tax | 13 | | ordinance or
resolution under which the certificate of | 14 | | registration that is issued to
the registrant under this Act | 15 | | will permit the registrant to engage in
business without | 16 | | registering separately under such other law, ordinance or
| 17 | | resolution, at which time that taxpayer shall become subject to | 18 | | all the
financial responsibility requirements of this Act and, | 19 | | as a condition of
being allowed to continue to engage in the | 20 | | business of selling tangible
personal property at retail, may | 21 | | be required to post bond or other
acceptable security with the | 22 | | Department covering liability which such
taxpayer may | 23 | | thereafter incur. Any taxpayer who fails to pay an admitted or
| 24 | | established liability under this Act may also be required to | 25 | | post bond or
other acceptable security with this Department | 26 | | guaranteeing the payment of
such admitted or established |
| | | SB2243 Enrolled | - 92 - | LRB098 09659 HLH 39805 b |
|
| 1 | | liability. | 2 | | No certificate of registration shall be issued to any | 3 | | person who is in
default to the State of Illinois for moneys | 4 | | due under this Act or under any
other State tax law or | 5 | | municipal or county tax ordinance or resolution
under which the | 6 | | certificate of registration that is issued to the applicant
| 7 | | under this Act will permit the applicant to engage in business | 8 | | without
registering separately under such other law, ordinance | 9 | | or resolution. | 10 | | Any person aggrieved by any decision of the Department | 11 | | under this
Section may, within 20 days after notice of such | 12 | | decision, protest and
request a hearing, whereupon the | 13 | | Department shall give notice to such
person of the time and | 14 | | place fixed for such hearing and shall hold a
hearing in | 15 | | conformity with the provisions of this Act and then issue its
| 16 | | final administrative decision in the matter to such person. In | 17 | | the absence
of such a protest within 20 days, the Department's | 18 | | decision shall become
final without any further determination | 19 | | being made or notice given. | 20 | | With respect to security other than bonds (upon which the | 21 | | Department may
sue in the event of a forfeiture), if the | 22 | | taxpayer fails to pay, when due,
any amount whose payment such | 23 | | security guarantees, the Department shall,
after such | 24 | | liability is admitted by the taxpayer or established by the
| 25 | | Department through the issuance of a final assessment that has | 26 | | become final
under the law, convert the security which that |
| | | SB2243 Enrolled | - 93 - | LRB098 09659 HLH 39805 b |
|
| 1 | | taxpayer has furnished into
money for the State, after first | 2 | | giving the taxpayer at least 10 days'
written notice, by | 3 | | registered or certified mail, to pay the liability or
forfeit | 4 | | such security to the Department. If the security consists of | 5 | | stocks
or bonds or other securities which are listed on a | 6 | | public exchange, the
Department shall sell such securities | 7 | | through such public exchange. If
the security consists of an | 8 | | irrevocable bank letter of credit, the
Department shall convert | 9 | | the security in the manner provided for in the
Uniform | 10 | | Commercial Code. If the security consists of a bank certificate | 11 | | of
deposit, the Department shall convert the security into | 12 | | money by demanding
and collecting the amount of such bank | 13 | | certificate of deposit from the bank
which issued such | 14 | | certificate. If the security consists of a type of stocks
or | 15 | | other securities which are not listed on a public exchange, the
| 16 | | Department shall sell such security to the highest and best | 17 | | bidder after
giving at least 10 days' notice of the date, time | 18 | | and place of the intended
sale by publication in the "State | 19 | | Official Newspaper". If the Department
realizes more than the | 20 | | amount of such liability from the security, plus the
expenses | 21 | | incurred by the Department in converting the security into | 22 | | money,
the Department shall pay such excess to the taxpayer who | 23 | | furnished such
security, and the balance shall be paid into the | 24 | | State Treasury. | 25 | | The Department shall discharge any surety and shall release | 26 | | and return
any security deposited, assigned, pledged or |
| | | SB2243 Enrolled | - 94 - | LRB098 09659 HLH 39805 b |
|
| 1 | | otherwise provided to it by
a taxpayer under this Section | 2 | | within 30 days after: | 3 | | (1) such taxpayer becomes a Prior Continuous | 4 | | Compliance taxpayer; or | 5 | | (2) such taxpayer has ceased to collect receipts on | 6 | | which he is required
to remit tax to the Department, has | 7 | | filed a final tax return, and has paid
to the Department an | 8 | | amount sufficient to discharge his remaining tax
| 9 | | liability, as determined by the Department, under this Act | 10 | | and under every
other State tax law or municipal or county | 11 | | tax ordinance or resolution
under which the certificate of | 12 | | registration issued under this Act permits
the registrant | 13 | | to engage in business without registering separately under
| 14 | | such other law, ordinance or resolution. The Department | 15 | | shall make a final
determination of the taxpayer's | 16 | | outstanding tax liability as expeditiously
as possible | 17 | | after his final tax return has been filed; if the | 18 | | Department
cannot make such final determination within 45 | 19 | | days after receiving the
final tax return, within such | 20 | | period it shall so notify the taxpayer,
stating its reasons | 21 | | therefor. | 22 | | (Source: P.A. 96-1355, eff. 7-28-10; 97-335, eff. 1-1-12.)
|
|