Full Text of HB3034 101st General Assembly
HB3034 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3034 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: |
| 35 ILCS 105/3-5 | |
35 ILCS 110/3-5 | |
35 ILCS 115/3-5 | |
35 ILCS 120/2-5 | |
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Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that agricultural goods purchased at a farmer's market are exempt from the taxes imposed under the Acts.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 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 Section | 5 | | 3-5 as follows:
| 6 | | (35 ILCS 105/3-5)
| 7 | | Sec. 3-5. Exemptions. Use of the following tangible | 8 | | personal property is exempt from the tax imposed by this Act:
| 9 | | (1) Personal property purchased from a corporation, | 10 | | society, association,
foundation, institution, or | 11 | | organization, other than a limited liability
company, that is | 12 | | organized and operated as a not-for-profit service enterprise
| 13 | | for the benefit of persons 65 years of age or older if the | 14 | | personal property was not purchased by the enterprise for the | 15 | | purpose of resale by the
enterprise.
| 16 | | (2) Personal property purchased by a not-for-profit | 17 | | Illinois county
fair association for use in conducting, | 18 | | operating, or promoting the
county fair.
| 19 | | (3) Personal property purchased by a not-for-profit
arts or | 20 | | cultural organization that establishes, by proof required by | 21 | | the
Department by
rule, that it has received an exemption under | 22 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 23 | | organized and operated primarily for the
presentation
or |
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| 1 | | support of arts or cultural programming, activities, or | 2 | | services. These
organizations include, but are not limited to, | 3 | | music and dramatic arts
organizations such as symphony | 4 | | orchestras and theatrical groups, arts and
cultural service | 5 | | organizations, local arts councils, visual arts organizations,
| 6 | | and media arts organizations.
On and after July 1, 2001 (the | 7 | | effective date of Public Act 92-35), however, an entity | 8 | | otherwise eligible for this exemption shall not
make tax-free | 9 | | purchases unless it has an active identification number issued | 10 | | by
the Department.
| 11 | | (4) Personal property purchased by a governmental body, by | 12 | | a
corporation, society, association, foundation, or | 13 | | institution organized and
operated exclusively for charitable, | 14 | | religious, or educational purposes, or
by a not-for-profit | 15 | | corporation, society, association, foundation,
institution, or | 16 | | organization that has no compensated officers or employees
and | 17 | | that is organized and operated primarily for the recreation of | 18 | | persons
55 years of age or older. A limited liability company | 19 | | may qualify for the
exemption under this paragraph only if the | 20 | | limited liability company is
organized and operated | 21 | | exclusively for educational purposes. On and after July
1, | 22 | | 1987, however, no entity otherwise eligible for this exemption | 23 | | shall make
tax-free purchases unless it has an active exemption | 24 | | identification number
issued by the Department.
| 25 | | (5) Until July 1, 2003, a passenger car that is a | 26 | | replacement vehicle to
the extent that the
purchase price of |
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| 1 | | the car is subject to the Replacement Vehicle Tax.
| 2 | | (6) Until July 1, 2003 and beginning again on September 1, | 3 | | 2004 through August 30, 2014, graphic arts machinery and | 4 | | equipment, including
repair and replacement
parts, both new and | 5 | | used, and including that manufactured on special order,
| 6 | | certified by the purchaser to be used primarily for graphic | 7 | | arts production,
and including machinery and equipment | 8 | | purchased for lease.
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
upon a | 11 | | graphic arts product. Beginning on July 1, 2017, graphic arts | 12 | | machinery and equipment is included in the manufacturing and | 13 | | assembling machinery and equipment exemption under paragraph | 14 | | (18).
| 15 | | (7) Farm chemicals.
| 16 | | (8) Legal tender, currency, medallions, or gold or silver | 17 | | coinage issued by
the State of Illinois, the government of the | 18 | | United States of America, or the
government of any foreign | 19 | | country, and bullion.
| 20 | | (9) Personal property purchased from a teacher-sponsored | 21 | | student
organization affiliated with an elementary or | 22 | | secondary school located in
Illinois.
| 23 | | (10) A motor vehicle that is used for automobile renting, | 24 | | as defined in the
Automobile Renting Occupation and Use Tax | 25 | | Act.
| 26 | | (11) Farm machinery and equipment, both new and used,
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| 1 | | including that manufactured on special order, certified by the | 2 | | purchaser
to be used primarily for production agriculture or | 3 | | State or federal
agricultural programs, including individual | 4 | | replacement parts for
the machinery and equipment, including | 5 | | machinery and equipment
purchased
for lease,
and including | 6 | | implements of husbandry defined in Section 1-130 of
the | 7 | | Illinois Vehicle Code, farm machinery and agricultural | 8 | | chemical and
fertilizer spreaders, and nurse wagons required to | 9 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 10 | | but excluding other motor
vehicles required to be
registered | 11 | | under the Illinois Vehicle Code.
Horticultural polyhouses or | 12 | | hoop houses used for propagating, growing, or
overwintering | 13 | | plants shall be considered farm machinery and equipment under
| 14 | | this item (11).
Agricultural chemical tender tanks and dry | 15 | | boxes shall include units sold
separately from a motor vehicle | 16 | | required to be licensed and units sold mounted
on a motor | 17 | | vehicle required to be licensed if the selling price of the | 18 | | tender
is separately stated.
| 19 | | Farm machinery and equipment shall include precision | 20 | | farming equipment
that is
installed or purchased to be | 21 | | installed on farm machinery and equipment
including, but not | 22 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 23 | | or spreaders.
Precision farming equipment includes, but is not | 24 | | limited to, soil testing
sensors, computers, monitors, | 25 | | software, global positioning
and mapping systems, and other | 26 | | such equipment.
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| 1 | | Farm machinery and equipment also includes computers, | 2 | | sensors, software, and
related equipment used primarily in the
| 3 | | computer-assisted operation of production agriculture | 4 | | facilities, equipment,
and
activities such as, but not limited | 5 | | to,
the collection, monitoring, and correlation of
animal and | 6 | | crop data for the purpose of
formulating animal diets and | 7 | | agricultural chemicals. This item (11) is exempt
from the | 8 | | provisions of
Section 3-90.
| 9 | | (12) Until June 30, 2013, fuel and petroleum products sold | 10 | | to or used by an air common
carrier, certified by the carrier | 11 | | to be used for consumption, shipment, or
storage in the conduct | 12 | | of its business as an air common carrier, for a
flight destined | 13 | | for or returning from a location or locations
outside the | 14 | | United States without regard to previous or subsequent domestic
| 15 | | stopovers.
| 16 | | Beginning July 1, 2013, fuel and petroleum products sold to | 17 | | or used by an air carrier, certified by the carrier to be used | 18 | | for consumption, shipment, or storage in the conduct of its | 19 | | business as an air common carrier, for a flight that (i) is | 20 | | engaged in foreign trade or is engaged in trade between the | 21 | | United States and any of its possessions and (ii) transports at | 22 | | least one individual or package for hire from the city of | 23 | | origination to the city of final destination on the same | 24 | | aircraft, without regard to a change in the flight number of | 25 | | that aircraft. | 26 | | (13) Proceeds of mandatory service charges separately
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| 1 | | stated on customers' bills for the purchase and consumption of | 2 | | food and
beverages purchased at retail from a retailer, to the | 3 | | extent that the proceeds
of the service charge are in fact | 4 | | turned over as tips or as a substitute
for tips to the | 5 | | employees who participate directly in preparing, serving,
| 6 | | hosting or cleaning up the food or beverage function with | 7 | | respect to which
the service charge is imposed.
| 8 | | (14) Until July 1, 2003, oil field exploration, drilling, | 9 | | and production
equipment,
including (i) rigs and parts of rigs, | 10 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 11 | | tubular goods,
including casing and drill strings, (iii) pumps | 12 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 13 | | individual replacement part for oil
field exploration, | 14 | | drilling, and production equipment, and (vi) machinery and
| 15 | | equipment purchased
for lease; but excluding motor vehicles | 16 | | required to be registered under the
Illinois Vehicle Code.
| 17 | | (15) Photoprocessing machinery and equipment, including | 18 | | repair and
replacement parts, both new and used, including that
| 19 | | manufactured on special order, certified by the purchaser to be | 20 | | used
primarily for photoprocessing, and including
| 21 | | photoprocessing machinery and equipment purchased for lease.
| 22 | | (16) Until July 1, 2023, coal and aggregate exploration, | 23 | | mining, off-highway hauling,
processing, maintenance, and | 24 | | reclamation equipment,
including replacement parts and | 25 | | equipment, and
including equipment purchased for lease, but | 26 | | excluding motor
vehicles required to be registered under the |
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| 1 | | Illinois Vehicle Code. The changes made to this Section by | 2 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 3 | | for credit or refund is allowed on or after August 16, 2013 | 4 | | (the effective date of Public Act 98-456)
for such taxes paid | 5 | | during the period beginning July 1, 2003 and ending on August | 6 | | 16, 2013 (the effective date of Public Act 98-456).
| 7 | | (17) Until July 1, 2003, distillation machinery and | 8 | | equipment, sold as a
unit or kit,
assembled or installed by the | 9 | | retailer, certified by the user to be used
only for the | 10 | | production of ethyl alcohol that will be used for consumption
| 11 | | as motor fuel or as a component of motor fuel for the personal | 12 | | use of the
user, and not subject to sale or resale.
| 13 | | (18) Manufacturing and assembling machinery and equipment | 14 | | used
primarily in the process of manufacturing or assembling | 15 | | tangible
personal property for wholesale or retail sale or | 16 | | lease, whether that sale
or lease is made directly by the | 17 | | manufacturer or by some other person,
whether the materials | 18 | | used in the process are
owned by the manufacturer or some other | 19 | | person, or whether that sale or
lease is made apart from or as | 20 | | an incident to the seller's engaging in
the service occupation | 21 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 22 | | other similar items of no commercial value on
special order for | 23 | | a particular purchaser. The exemption provided by this | 24 | | paragraph (18) does not include machinery and equipment used in | 25 | | (i) the generation of electricity for wholesale or retail sale; | 26 | | (ii) the generation or treatment of natural or artificial gas |
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| 1 | | for wholesale or retail sale that is delivered to customers | 2 | | through pipes, pipelines, or mains; or (iii) the treatment of | 3 | | water for wholesale or retail sale that is delivered to | 4 | | customers through pipes, pipelines, or mains. The provisions of | 5 | | Public Act 98-583 are declaratory of existing law as to the | 6 | | meaning and scope of this exemption. Beginning on July 1, 2017, | 7 | | the exemption provided by this paragraph (18) includes, but is | 8 | | not limited to, graphic arts machinery and equipment, as | 9 | | defined in paragraph (6) of this Section.
| 10 | | (19) Personal property delivered to a purchaser or | 11 | | purchaser's donee
inside Illinois when the purchase order for | 12 | | that personal property was
received by a florist located | 13 | | outside Illinois who has a florist located
inside Illinois | 14 | | deliver the personal property.
| 15 | | (20) Semen used for artificial insemination of livestock | 16 | | for direct
agricultural production.
| 17 | | (21) Horses, or interests in horses, registered with and | 18 | | meeting the
requirements of any of the
Arabian Horse Club | 19 | | Registry of America, Appaloosa Horse Club, American Quarter
| 20 | | Horse Association, United States
Trotting Association, or | 21 | | Jockey Club, as appropriate, used for
purposes of breeding or | 22 | | racing for prizes. This item (21) is exempt from the provisions | 23 | | of Section 3-90, and the exemption provided for under this item | 24 | | (21) applies for all periods beginning May 30, 1995, but no | 25 | | claim for credit or refund is allowed on or after January 1, | 26 | | 2008
for such taxes paid during the period beginning May 30, |
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| 1 | | 2000 and ending on January 1, 2008.
| 2 | | (22) Computers and communications equipment utilized for | 3 | | any
hospital
purpose
and equipment used in the diagnosis,
| 4 | | analysis, or treatment of hospital patients purchased by a | 5 | | lessor who leases
the
equipment, under a lease of one year or | 6 | | longer executed or in effect at the
time the lessor would | 7 | | otherwise be subject to the tax imposed by this Act, to a
| 8 | | hospital
that has been issued an active tax exemption | 9 | | identification number by
the
Department under Section 1g of the | 10 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 11 | | manner that does not qualify for
this exemption or is used in | 12 | | any other non-exempt manner, the lessor
shall be liable for the
| 13 | | tax imposed under this Act or the Service Use Tax Act, as the | 14 | | case may
be, based on the fair market value of the property at | 15 | | the time the
non-qualifying use occurs. No lessor shall collect | 16 | | or attempt to collect an
amount (however
designated) that | 17 | | purports to reimburse that lessor for the tax imposed by this
| 18 | | Act or the Service Use Tax Act, as the case may be, if the tax | 19 | | has not been
paid by the lessor. If a lessor improperly | 20 | | collects any such amount from the
lessee, the lessee shall have | 21 | | a legal right to claim a refund of that amount
from the lessor. | 22 | | If, however, that amount is not refunded to the lessee for
any | 23 | | reason, the lessor is liable to pay that amount to the | 24 | | Department.
| 25 | | (23) Personal property purchased by a lessor who leases the
| 26 | | property, under
a
lease of
one year or longer executed or in |
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| 1 | | effect at the time
the lessor would otherwise be subject to the | 2 | | tax imposed by this Act,
to a governmental body
that has been | 3 | | issued an active sales tax exemption identification number by | 4 | | the
Department under Section 1g of the Retailers' Occupation | 5 | | Tax Act.
If the
property is leased in a manner that does not | 6 | | qualify for
this exemption
or used in any other non-exempt | 7 | | manner, the lessor shall be liable for the
tax imposed under | 8 | | this Act or the Service Use Tax Act, as the case may
be, based | 9 | | on the fair market value of the property at the time the
| 10 | | non-qualifying use occurs. No lessor shall collect or attempt | 11 | | to collect an
amount (however
designated) that purports to | 12 | | reimburse that lessor for the tax imposed by this
Act or the | 13 | | Service Use Tax Act, as the case may be, if the tax has not been
| 14 | | paid by the lessor. If a lessor improperly collects any such | 15 | | amount from the
lessee, the lessee shall have a legal right to | 16 | | claim a refund of that amount
from the lessor. If, however, | 17 | | that amount is not refunded to the lessee for
any reason, the | 18 | | lessor is liable to pay that amount to the Department.
| 19 | | (24) Beginning with taxable years ending on or after | 20 | | December
31, 1995
and
ending with taxable years ending on or | 21 | | before December 31, 2004,
personal property that is
donated for | 22 | | disaster relief to be used in a State or federally declared
| 23 | | disaster area in Illinois or bordering Illinois by a | 24 | | manufacturer or retailer
that is registered in this State to a | 25 | | corporation, society, association,
foundation, or institution | 26 | | that has been issued a sales tax exemption
identification |
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| 1 | | number by the Department that assists victims of the disaster
| 2 | | who reside within the declared disaster area.
| 3 | | (25) Beginning with taxable years ending on or after | 4 | | December
31, 1995 and
ending with taxable years ending on or | 5 | | before December 31, 2004, personal
property that is used in the | 6 | | performance of infrastructure repairs in this
State, including | 7 | | but not limited to municipal roads and streets, access roads,
| 8 | | bridges, sidewalks, waste disposal systems, water and sewer | 9 | | line extensions,
water distribution and purification | 10 | | facilities, storm water drainage and
retention facilities, and | 11 | | sewage treatment facilities, resulting from a State
or | 12 | | federally declared disaster in Illinois or bordering Illinois | 13 | | when such
repairs are initiated on facilities located in the | 14 | | declared disaster area
within 6 months after the disaster.
| 15 | | (26) Beginning July 1, 1999, game or game birds purchased | 16 | | at a "game
breeding
and hunting preserve area" as that term is
| 17 | | used in
the Wildlife Code. This paragraph is exempt from the | 18 | | provisions
of
Section 3-90.
| 19 | | (27) A motor vehicle, as that term is defined in Section | 20 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a | 21 | | corporation, limited liability company,
society, association, | 22 | | foundation, or institution that is determined by the
Department | 23 | | to be organized and operated exclusively for educational | 24 | | purposes.
For purposes of this exemption, "a corporation, | 25 | | limited liability company,
society, association, foundation, | 26 | | or institution organized and operated
exclusively for |
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| 1 | | educational purposes" means all tax-supported public schools,
| 2 | | private schools that offer systematic instruction in useful | 3 | | branches of
learning by methods common to public schools and | 4 | | that compare favorably in
their scope and intensity with the | 5 | | course of study presented in tax-supported
schools, and | 6 | | vocational or technical schools or institutes organized and
| 7 | | operated exclusively to provide a course of study of not less | 8 | | than 6 weeks
duration and designed to prepare individuals to | 9 | | follow a trade or to pursue a
manual, technical, mechanical, | 10 | | industrial, business, or commercial
occupation.
| 11 | | (28) Beginning January 1, 2000, personal property, | 12 | | including
food,
purchased through fundraising
events for the | 13 | | benefit of
a public or private elementary or
secondary school, | 14 | | a group of those schools, or one or more school
districts if | 15 | | the events are
sponsored by an entity recognized by the school | 16 | | district that consists
primarily of volunteers and includes
| 17 | | parents and teachers of the school children. This paragraph | 18 | | does not apply
to fundraising
events (i) for the benefit of | 19 | | private home instruction or (ii)
for which the fundraising | 20 | | entity purchases the personal property sold at
the events from | 21 | | another individual or entity that sold the property for the
| 22 | | purpose of resale by the fundraising entity and that
profits | 23 | | from the sale to the
fundraising entity. This paragraph is | 24 | | exempt
from the provisions
of Section 3-90.
| 25 | | (29) Beginning January 1, 2000 and through December 31, | 26 | | 2001, new or
used automatic vending
machines that prepare and |
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| 1 | | serve hot food and beverages, including coffee, soup,
and
other | 2 | | items, and replacement parts for these machines.
Beginning | 3 | | January 1,
2002 and through June 30, 2003, machines and parts | 4 | | for machines used in
commercial, coin-operated amusement and | 5 | | vending business if a use or occupation
tax is paid on the | 6 | | gross receipts derived from the use of the commercial,
| 7 | | coin-operated amusement and vending machines.
This
paragraph
| 8 | | is exempt from the provisions of Section 3-90.
| 9 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 10 | | food for human consumption that is to be consumed off the | 11 | | premises
where it is sold (other than alcoholic beverages, soft | 12 | | drinks, and food that
has been prepared for immediate | 13 | | consumption) and prescription and
nonprescription medicines, | 14 | | drugs, medical appliances, and insulin, urine
testing | 15 | | materials, syringes, and needles used by diabetics, for human | 16 | | use, when
purchased for use by a person receiving medical | 17 | | assistance under Article V of
the Illinois Public Aid Code who | 18 | | resides in a licensed long-term care facility,
as defined in | 19 | | the Nursing Home Care Act, or in a licensed facility as defined | 20 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 21 | | Specialized Mental Health Rehabilitation Act of 2013.
| 22 | | (31) Beginning on August 2, 2001 (the effective date of | 23 | | Public Act 92-227),
computers and communications equipment
| 24 | | utilized for any hospital purpose and equipment used in the | 25 | | diagnosis,
analysis, or treatment of hospital patients | 26 | | purchased by a lessor who leases
the equipment, under a lease |
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| 1 | | of one year or longer executed or in effect at the
time the | 2 | | lessor would otherwise be subject to the tax imposed by this | 3 | | Act, to a
hospital that has been issued an active tax exemption | 4 | | identification number by
the Department under Section 1g of the | 5 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 6 | | manner that does not qualify for this exemption or is
used in | 7 | | any other nonexempt manner, the lessor shall be liable for the | 8 | | tax
imposed under this Act or the Service Use Tax Act, as the | 9 | | case may be, based on
the fair market value of the property at | 10 | | the time the nonqualifying use
occurs. No lessor shall collect | 11 | | or attempt to collect an amount (however
designated) that | 12 | | purports to reimburse that lessor for the tax imposed by this
| 13 | | Act or the Service Use Tax Act, as the case may be, if the tax | 14 | | has not been
paid by the lessor. If a lessor improperly | 15 | | collects any such amount from the
lessee, the lessee shall have | 16 | | a legal right to claim a refund of that amount
from the lessor. | 17 | | If, however, that amount is not refunded to the lessee for
any | 18 | | reason, the lessor is liable to pay that amount to the | 19 | | Department.
This paragraph is exempt from the provisions of | 20 | | Section 3-90.
| 21 | | (32) Beginning on August 2, 2001 (the effective date of | 22 | | Public Act 92-227),
personal property purchased by a lessor who | 23 | | leases the property,
under a lease of one year or longer | 24 | | executed or in effect at the time the
lessor would otherwise be | 25 | | subject to the tax imposed by this Act, to a
governmental body | 26 | | that has been issued an active sales tax exemption
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| 1 | | identification number by the Department under Section 1g of the | 2 | | Retailers'
Occupation Tax Act. If the property is leased in a | 3 | | manner that does not
qualify for this exemption or used in any | 4 | | other nonexempt manner, the lessor
shall be liable for the tax | 5 | | imposed under this Act or the Service Use Tax Act,
as the case | 6 | | may be, based on the fair market value of the property at the | 7 | | time
the nonqualifying use occurs. No lessor shall collect or | 8 | | attempt to collect
an amount (however designated) that purports | 9 | | to reimburse that lessor for the
tax imposed by this Act or the | 10 | | Service Use Tax Act, as the case may be, if the
tax has not been | 11 | | paid by the lessor. If a lessor improperly collects any such
| 12 | | amount from the lessee, the lessee shall have a legal right to | 13 | | claim a refund
of that amount from the lessor. If, however, | 14 | | that amount is not refunded to
the lessee for any reason, the | 15 | | lessor is liable to pay that amount to the
Department. This | 16 | | paragraph is exempt from the provisions of Section 3-90.
| 17 | | (33) On and after July 1, 2003 and through June 30, 2004, | 18 | | the use in this State of motor vehicles of
the second division | 19 | | with a gross vehicle weight in excess of 8,000 pounds and
that | 20 | | are subject to the commercial distribution fee imposed under | 21 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 22 | | 1, 2004 and through June 30, 2005, the use in this State of | 23 | | motor vehicles of the second division: (i) with a gross vehicle | 24 | | weight rating in excess of 8,000 pounds; (ii) that are subject | 25 | | to the commercial distribution fee imposed under Section | 26 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are |
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| 1 | | primarily used for commercial purposes. Through June 30, 2005, | 2 | | this exemption applies to repair and
replacement parts added | 3 | | after the initial purchase of such a motor vehicle if
that | 4 | | motor
vehicle is used in a manner that would qualify for the | 5 | | rolling stock exemption
otherwise provided for in this Act. For | 6 | | purposes of this paragraph, the term "used for commercial | 7 | | purposes" means the transportation of persons or property in | 8 | | furtherance of any commercial or industrial enterprise, | 9 | | whether for-hire or not.
| 10 | | (34) Beginning January 1, 2008, tangible personal property | 11 | | used in the construction or maintenance of a community water | 12 | | supply, as defined under Section 3.145 of the Environmental | 13 | | Protection Act, that is operated by a not-for-profit | 14 | | corporation that holds a valid water supply permit issued under | 15 | | Title IV of the Environmental Protection Act. This paragraph is | 16 | | exempt from the provisions of Section 3-90. | 17 | | (35) Beginning January 1, 2010, materials, parts, | 18 | | equipment, components, and furnishings incorporated into or | 19 | | upon an aircraft as part of the modification, refurbishment, | 20 | | completion, replacement, repair, or maintenance of the | 21 | | aircraft. This exemption includes consumable supplies used in | 22 | | the modification, refurbishment, completion, replacement, | 23 | | repair, and maintenance of aircraft, but excludes any | 24 | | materials, parts, equipment, components, and consumable | 25 | | supplies used in the modification, replacement, repair, and | 26 | | maintenance of aircraft engines or power plants, whether such |
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| 1 | | engines or power plants are installed or uninstalled upon any | 2 | | such aircraft. "Consumable supplies" include, but are not | 3 | | limited to, adhesive, tape, sandpaper, general purpose | 4 | | lubricants, cleaning solution, latex gloves, and protective | 5 | | films. This exemption applies only to the use of qualifying | 6 | | tangible personal property by persons who modify, refurbish, | 7 | | complete, repair, replace, or maintain aircraft and who (i) | 8 | | hold an Air Agency Certificate and are empowered to operate an | 9 | | approved repair station by the Federal Aviation | 10 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 11 | | operations in accordance with Part 145 of the Federal Aviation | 12 | | Regulations. The exemption does not include aircraft operated | 13 | | by a commercial air carrier providing scheduled passenger air | 14 | | service pursuant to authority issued under Part 121 or Part 129 | 15 | | of the Federal Aviation Regulations. The changes made to this | 16 | | paragraph (35) by Public Act 98-534 are declarative of existing | 17 | | law. | 18 | | (36) Tangible personal property purchased by a | 19 | | public-facilities corporation, as described in Section | 20 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 21 | | constructing or furnishing a municipal convention hall, but | 22 | | only if the legal title to the municipal convention hall is | 23 | | transferred to the municipality without any further | 24 | | consideration by or on behalf of the municipality at the time | 25 | | of the completion of the municipal convention hall or upon the | 26 | | retirement or redemption of any bonds or other debt instruments |
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| 1 | | issued by the public-facilities corporation in connection with | 2 | | the development of the municipal convention hall. This | 3 | | exemption includes existing public-facilities corporations as | 4 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 5 | | This paragraph is exempt from the provisions of Section 3-90. | 6 | | (37) Beginning January 1, 2017, menstrual pads, tampons, | 7 | | and menstrual cups. | 8 | | (38) Merchandise that is subject to the Rental Purchase | 9 | | Agreement Occupation and Use Tax. The purchaser must certify | 10 | | that the item is purchased to be rented subject to a rental | 11 | | purchase agreement, as defined in the Rental Purchase Agreement | 12 | | Act, and provide proof of registration under the Rental | 13 | | Purchase Agreement Occupation and Use Tax Act. This paragraph | 14 | | is exempt from the provisions of Section 3-90. | 15 | | (39) Tangible personal property purchased by a purchaser | 16 | | who is exempt from the tax imposed by this Act by operation of | 17 | | federal law. This paragraph is exempt from the provisions of | 18 | | Section 3-90. | 19 | | (40) Agricultural goods purchased at a farmer's market. | 20 | | This paragraph is exempt from the provisions of Section 3-90. | 21 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 22 | | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff. | 23 | | 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised | 24 | | 1-8-19.)
| 25 | | Section 10. The Service Use Tax Act is amended by changing |
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| 1 | | Section 3-5 as follows:
| 2 | | (35 ILCS 110/3-5)
| 3 | | Sec. 3-5. Exemptions. Use of the following tangible | 4 | | personal property
is exempt from the tax imposed by this Act:
| 5 | | (1) Personal property purchased from a corporation, | 6 | | society,
association, foundation, institution, or | 7 | | organization, other than a limited
liability company, that is | 8 | | organized and operated as a not-for-profit service
enterprise | 9 | | for the benefit of persons 65 years of age or older if the | 10 | | personal
property was not purchased by the enterprise for the | 11 | | purpose of resale by the
enterprise.
| 12 | | (2) Personal property purchased by a non-profit Illinois | 13 | | county fair
association for use in conducting, operating, or | 14 | | promoting the county fair.
| 15 | | (3) Personal property purchased by a not-for-profit arts
or | 16 | | cultural
organization that establishes, by proof required by | 17 | | the Department by rule,
that it has received an exemption under | 18 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 19 | | organized and operated primarily for the
presentation
or | 20 | | support of arts or cultural programming, activities, or | 21 | | services. These
organizations include, but are not limited to, | 22 | | music and dramatic arts
organizations such as symphony | 23 | | orchestras and theatrical groups, arts and
cultural service | 24 | | organizations, local arts councils, visual arts organizations,
| 25 | | and media arts organizations.
On and after July 1, 2001 ( the |
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| 1 | | effective date of Public Act 92-35) this amendatory Act of the | 2 | | 92nd General
Assembly , however, an entity otherwise eligible | 3 | | for this exemption shall not
make tax-free purchases unless it | 4 | | has an active identification number issued by
the Department.
| 5 | | (4) Legal tender, currency, medallions, or gold or silver | 6 | | coinage issued
by the State of Illinois, the government of the | 7 | | United States of America,
or the government of any foreign | 8 | | country, and bullion.
| 9 | | (5) Until July 1, 2003 and beginning again on September 1, | 10 | | 2004 through August 30, 2014, graphic arts machinery and | 11 | | equipment, including
repair and
replacement parts, both new and | 12 | | used, and including that manufactured on
special order or | 13 | | purchased for lease, certified by the purchaser to be used
| 14 | | primarily for graphic arts production.
Equipment includes | 15 | | chemicals or
chemicals acting as catalysts but only if
the | 16 | | chemicals or chemicals acting as catalysts effect a direct and | 17 | | immediate
change upon a graphic arts product. Beginning on July | 18 | | 1, 2017, graphic arts machinery and equipment is included in | 19 | | the manufacturing and assembling machinery and equipment | 20 | | exemption under Section 2 of this Act.
| 21 | | (6) Personal property purchased from a teacher-sponsored | 22 | | student
organization affiliated with an elementary or | 23 | | secondary school located
in Illinois.
| 24 | | (7) Farm machinery and equipment, both new and used, | 25 | | including that
manufactured on special order, certified by the | 26 | | purchaser to be used
primarily for production agriculture or |
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| 1 | | State or federal agricultural
programs, including individual | 2 | | replacement parts for the machinery and
equipment, including | 3 | | machinery and equipment purchased for lease,
and including | 4 | | implements of husbandry defined in Section 1-130 of
the | 5 | | Illinois Vehicle Code, farm machinery and agricultural | 6 | | chemical and
fertilizer spreaders, and nurse wagons required to | 7 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 8 | | but
excluding other motor vehicles required to be registered | 9 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or | 10 | | hoop houses used for propagating, growing, or
overwintering | 11 | | plants shall be considered farm machinery and equipment under
| 12 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 13 | | shall include units sold
separately from a motor vehicle | 14 | | required to be licensed and units sold mounted
on a motor | 15 | | vehicle required to be licensed if the selling price of the | 16 | | tender
is separately stated.
| 17 | | Farm machinery and equipment shall include precision | 18 | | farming equipment
that is
installed or purchased to be | 19 | | installed on farm machinery and equipment
including, but not | 20 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 21 | | or spreaders.
Precision farming equipment includes, but is not | 22 | | limited to,
soil testing sensors, computers, monitors, | 23 | | software, global positioning
and mapping systems, and other | 24 | | such equipment.
| 25 | | Farm machinery and equipment also includes computers, | 26 | | sensors, software, and
related equipment used primarily in the
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| 1 | | computer-assisted operation of production agriculture | 2 | | facilities, equipment,
and activities such as, but
not limited | 3 | | to,
the collection, monitoring, and correlation of
animal and | 4 | | crop data for the purpose of
formulating animal diets and | 5 | | agricultural chemicals. This item (7) is exempt
from the | 6 | | provisions of
Section 3-75.
| 7 | | (8) Until June 30, 2013, fuel and petroleum products sold | 8 | | to or used by an air common
carrier, certified by the carrier | 9 | | to be used for consumption, shipment, or
storage in the conduct | 10 | | of its business as an air common carrier, for a
flight destined | 11 | | for or returning from a location or locations
outside the | 12 | | United States without regard to previous or subsequent domestic
| 13 | | stopovers.
| 14 | | Beginning July 1, 2013, fuel and petroleum products sold to | 15 | | or used by an air carrier, certified by the carrier to be used | 16 | | for consumption, shipment, or storage in the conduct of its | 17 | | business as an air common carrier, for a flight that (i) is | 18 | | engaged in foreign trade or is engaged in trade between the | 19 | | United States and any of its possessions and (ii) transports at | 20 | | least one individual or package for hire from the city of | 21 | | origination to the city of final destination on the same | 22 | | aircraft, without regard to a change in the flight number of | 23 | | that aircraft. | 24 | | (9) Proceeds of mandatory service charges separately | 25 | | stated on
customers' bills for the purchase and consumption of | 26 | | food and beverages
acquired as an incident to the purchase of a |
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| 1 | | service from a serviceman, to
the extent that the proceeds of | 2 | | the service charge are in fact
turned over as tips or as a | 3 | | substitute for tips to the employees who
participate directly | 4 | | in preparing, serving, hosting or cleaning up the
food or | 5 | | beverage function with respect to which the service charge is | 6 | | imposed.
| 7 | | (10) Until July 1, 2003, oil field exploration, drilling, | 8 | | and production
equipment, including
(i) rigs and parts of rigs, | 9 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 10 | | tubular goods, including casing and
drill strings, (iii) pumps | 11 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 12 | | individual replacement part for oil field exploration,
| 13 | | drilling, and production equipment, and (vi) machinery and | 14 | | equipment purchased
for lease; but
excluding motor vehicles | 15 | | required to be registered under the Illinois
Vehicle Code.
| 16 | | (11) Proceeds from the sale of photoprocessing machinery | 17 | | and
equipment, including repair and replacement parts, both new | 18 | | and
used, including that manufactured on special order, | 19 | | certified by the
purchaser to be used primarily for | 20 | | photoprocessing, and including
photoprocessing machinery and | 21 | | equipment purchased for lease.
| 22 | | (12) Until July 1, 2023, coal and aggregate exploration, | 23 | | mining, off-highway hauling,
processing,
maintenance, and | 24 | | reclamation equipment, including
replacement parts and | 25 | | equipment, and including
equipment purchased for lease, but | 26 | | excluding motor vehicles required to be
registered under the |
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| 1 | | Illinois Vehicle Code. The changes made to this Section by | 2 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 3 | | for credit or refund is allowed on or after August 16, 2013 | 4 | | (the effective date of Public Act 98-456)
for such taxes paid | 5 | | during the period beginning July 1, 2003 and ending on August | 6 | | 16, 2013 (the effective date of Public Act 98-456).
| 7 | | (13) Semen used for artificial insemination of livestock | 8 | | for direct
agricultural production.
| 9 | | (14) Horses, or interests in horses, registered with and | 10 | | meeting the
requirements of any of the
Arabian Horse Club | 11 | | Registry of America, Appaloosa Horse Club, American Quarter
| 12 | | Horse Association, United States
Trotting Association, or | 13 | | Jockey Club, as appropriate, used for
purposes of breeding or | 14 | | racing for prizes. This item (14) is exempt from the provisions | 15 | | of Section 3-75, and the exemption provided for under this item | 16 | | (14) applies for all periods beginning May 30, 1995, but no | 17 | | claim for credit or refund is allowed on or after January 1, | 18 | | 2008 ( the effective date of Public Act 95-88) this amendatory | 19 | | Act of the 95th General Assembly for such taxes paid during the | 20 | | period beginning May 30, 2000 and ending on January 1, 2008 | 21 | | ( the effective date of Public Act 95-88) this amendatory Act of | 22 | | the 95th General Assembly .
| 23 | | (15) Computers and communications equipment utilized for | 24 | | any
hospital
purpose
and equipment used in the diagnosis,
| 25 | | analysis, or treatment of hospital patients purchased by a | 26 | | lessor who leases
the
equipment, under a lease of one year or |
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| 1 | | longer executed or in effect at the
time
the lessor would | 2 | | otherwise be subject to the tax imposed by this Act,
to a
| 3 | | hospital
that has been issued an active tax exemption | 4 | | identification number by the
Department under Section 1g of the | 5 | | Retailers' Occupation Tax Act.
If the
equipment is leased in a | 6 | | manner that does not qualify for
this exemption
or is used in | 7 | | any other non-exempt manner,
the lessor shall be liable for the
| 8 | | tax imposed under this Act or the Use Tax Act, as the case may
| 9 | | be, based on the fair market value of the property at the time | 10 | | the
non-qualifying use occurs. No lessor shall collect or | 11 | | attempt to collect an
amount (however
designated) that purports | 12 | | to reimburse that lessor for the tax imposed by this
Act or the | 13 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 14 | | the lessor. If a lessor improperly collects any such amount | 15 | | from the
lessee, the lessee shall have a legal right to claim a | 16 | | refund of that amount
from the lessor. If, however, that amount | 17 | | is not refunded to the lessee for
any reason, the lessor is | 18 | | liable to pay that amount to the Department.
| 19 | | (16) Personal property purchased by a lessor who leases the
| 20 | | property, under
a
lease of one year or longer executed or in | 21 | | effect at the time
the lessor would otherwise be subject to the | 22 | | tax imposed by this Act,
to a governmental body
that has been | 23 | | issued an active tax exemption identification number by the
| 24 | | Department under Section 1g of the Retailers' Occupation Tax | 25 | | Act.
If the
property is leased in a manner that does not | 26 | | qualify for
this exemption
or is used in any other non-exempt |
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| 1 | | manner,
the lessor shall be liable for the
tax imposed under | 2 | | this Act or the Use Tax Act, as the case may
be, based on the | 3 | | fair market value of the property at the time the
| 4 | | non-qualifying use occurs. No lessor shall collect or attempt | 5 | | to collect an
amount (however
designated) that purports to | 6 | | reimburse that lessor for the tax imposed by this
Act or the | 7 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 8 | | the lessor. If a lessor improperly collects any such amount | 9 | | from the
lessee, the lessee shall have a legal right to claim a | 10 | | refund of that amount
from the lessor. If, however, that amount | 11 | | is not refunded to the lessee for
any reason, the lessor is | 12 | | liable to pay that amount to the Department.
| 13 | | (17) Beginning with taxable years ending on or after | 14 | | December
31,
1995
and
ending with taxable years ending on or | 15 | | before December 31, 2004,
personal property that is
donated for | 16 | | disaster relief to be used in a State or federally declared
| 17 | | disaster area in Illinois or bordering Illinois by a | 18 | | manufacturer or retailer
that is registered in this State to a | 19 | | corporation, society, association,
foundation, or institution | 20 | | that has been issued a sales tax exemption
identification | 21 | | number by the Department that assists victims of the disaster
| 22 | | who reside within the declared disaster area.
| 23 | | (18) Beginning with taxable years ending on or after | 24 | | December
31, 1995 and
ending with taxable years ending on or | 25 | | before December 31, 2004, personal
property that is used in the | 26 | | performance of infrastructure repairs in this
State, including |
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| 1 | | but not limited to municipal roads and streets, access roads,
| 2 | | bridges, sidewalks, waste disposal systems, water and sewer | 3 | | line extensions,
water distribution and purification | 4 | | facilities, storm water drainage and
retention facilities, and | 5 | | sewage treatment facilities, resulting from a State
or | 6 | | federally declared disaster in Illinois or bordering Illinois | 7 | | when such
repairs are initiated on facilities located in the | 8 | | declared disaster area
within 6 months after the disaster.
| 9 | | (19) Beginning July 1, 1999, game or game birds purchased | 10 | | at a "game
breeding
and hunting preserve area" as that term is
| 11 | | used in
the Wildlife Code. This paragraph is exempt from the | 12 | | provisions
of
Section 3-75.
| 13 | | (20) A motor vehicle, as that term is defined in Section | 14 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 15 | | corporation, limited liability
company, society, association, | 16 | | foundation, or institution that is determined by
the Department | 17 | | to be organized and operated exclusively for educational
| 18 | | purposes. For purposes of this exemption, "a corporation, | 19 | | limited liability
company, society, association, foundation, | 20 | | or institution organized and
operated
exclusively for | 21 | | educational purposes" means all tax-supported public schools,
| 22 | | private schools that offer systematic instruction in useful | 23 | | branches of
learning by methods common to public schools and | 24 | | that compare favorably in
their scope and intensity with the | 25 | | course of study presented in tax-supported
schools, and | 26 | | vocational or technical schools or institutes organized and
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| 1 | | operated exclusively to provide a course of study of not less | 2 | | than 6 weeks
duration and designed to prepare individuals to | 3 | | follow a trade or to pursue a
manual, technical, mechanical, | 4 | | industrial, business, or commercial
occupation.
| 5 | | (21) Beginning January 1, 2000, personal property, | 6 | | including
food,
purchased through fundraising
events for the | 7 | | benefit of
a public or private elementary or
secondary school, | 8 | | a group of those schools, or one or more school
districts if | 9 | | the events are
sponsored by an entity recognized by the school | 10 | | district that consists
primarily of volunteers and includes
| 11 | | parents and teachers of the school children. This paragraph | 12 | | does not apply
to fundraising
events (i) for the benefit of | 13 | | private home instruction or (ii)
for which the fundraising | 14 | | entity purchases the personal property sold at
the events from | 15 | | another individual or entity that sold the property for the
| 16 | | purpose of resale by the fundraising entity and that
profits | 17 | | from the sale to the
fundraising entity. This paragraph is | 18 | | exempt
from the provisions
of Section 3-75.
| 19 | | (22) Beginning January 1, 2000
and through December 31, | 20 | | 2001, new or used automatic vending
machines that prepare and | 21 | | serve hot food and beverages, including coffee, soup,
and
other | 22 | | items, and replacement parts for these machines.
Beginning | 23 | | January 1,
2002 and through June 30, 2003, machines and parts | 24 | | for machines used in
commercial, coin-operated
amusement
and | 25 | | vending business if a use or occupation tax is paid on the | 26 | | gross receipts
derived from
the use of the commercial, |
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| 1 | | coin-operated amusement and vending machines.
This
paragraph
| 2 | | is exempt from the provisions of Section 3-75.
| 3 | | (23) Beginning August 23, 2001 and through June 30, 2016, | 4 | | food for human consumption that is to be consumed off the
| 5 | | premises
where it is sold (other than alcoholic beverages, soft | 6 | | drinks, and food that
has been prepared for immediate | 7 | | consumption) and prescription and
nonprescription medicines, | 8 | | drugs, medical appliances, and insulin, urine
testing | 9 | | materials, syringes, and needles used by diabetics, for human | 10 | | use, when
purchased for use by a person receiving medical | 11 | | assistance under Article V of
the Illinois Public Aid Code who | 12 | | resides in a licensed long-term care facility,
as defined in | 13 | | the Nursing Home Care Act, or in a licensed facility as defined | 14 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 15 | | Specialized Mental Health Rehabilitation Act of 2013.
| 16 | | (24) Beginning on August 2, 2001 ( the effective date of | 17 | | Public Act 92-227) this amendatory Act of the 92nd
General | 18 | | Assembly , computers and communications equipment
utilized for | 19 | | any hospital purpose and equipment used in the diagnosis,
| 20 | | analysis, or treatment of hospital patients purchased by a | 21 | | lessor who leases
the equipment, under a lease of one year or | 22 | | longer executed or in effect at the
time the lessor would | 23 | | otherwise be subject to the tax imposed by this Act, to a
| 24 | | hospital that has been issued an active tax exemption | 25 | | identification number by
the Department under Section 1g of the | 26 | | Retailers' Occupation Tax Act. If the
equipment is leased in a |
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| 1 | | manner that does not qualify for this exemption or is
used in | 2 | | any other nonexempt manner, the lessor shall be liable for the
| 3 | | tax imposed under this Act or the Use Tax Act, as the case may | 4 | | be, based on the
fair market value of the property at the time | 5 | | the nonqualifying use occurs.
No lessor shall collect or | 6 | | attempt to collect an amount (however
designated) that purports | 7 | | to reimburse that lessor for the tax imposed by this
Act or the | 8 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 9 | | the lessor. If a lessor improperly collects any such amount | 10 | | from the
lessee, the lessee shall have a legal right to claim a | 11 | | refund of that amount
from the lessor. If, however, that amount | 12 | | is not refunded to the lessee for
any reason, the lessor is | 13 | | liable to pay that amount to the Department.
This paragraph is | 14 | | exempt from the provisions of Section 3-75.
| 15 | | (25) Beginning
on August 2, 2001 ( the effective date of | 16 | | Public Act 92-227) this amendatory Act of the 92nd General | 17 | | Assembly ,
personal property purchased by a lessor
who leases | 18 | | the property, under a lease of one year or longer executed or | 19 | | in
effect at the time the lessor would otherwise be subject to | 20 | | the tax imposed by
this Act, to a governmental body that has | 21 | | been issued an active tax exemption
identification number by | 22 | | the Department under Section 1g of the Retailers'
Occupation | 23 | | Tax Act. If the property is leased in a manner that does not
| 24 | | qualify for this exemption or is used in any other nonexempt | 25 | | manner, the
lessor shall be liable for the tax imposed under | 26 | | this Act or the Use Tax Act,
as the case may be, based on the |
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| 1 | | fair market value of the property at the time
the nonqualifying | 2 | | use occurs. No lessor shall collect or attempt to collect
an | 3 | | amount (however designated) that purports to reimburse that | 4 | | lessor for the
tax imposed by this Act or the Use Tax Act, as | 5 | | the case may be, if the tax has
not been paid by the lessor. If | 6 | | a lessor improperly collects any such amount
from the lessee, | 7 | | the lessee shall have a legal right to claim a refund of that
| 8 | | amount from the lessor. If, however, that amount is not | 9 | | refunded to the lessee
for any reason, the lessor is liable to | 10 | | pay that amount to the Department.
This paragraph is exempt | 11 | | from the provisions of Section 3-75.
| 12 | | (26) Beginning January 1, 2008, tangible personal property | 13 | | used in the construction or maintenance of a community water | 14 | | supply, as defined under Section 3.145 of the Environmental | 15 | | Protection Act, that is operated by a not-for-profit | 16 | | corporation that holds a valid water supply permit issued under | 17 | | Title IV of the Environmental Protection Act. This paragraph is | 18 | | exempt from the provisions of Section 3-75.
| 19 | | (27) Beginning January 1, 2010, materials, parts, | 20 | | equipment, components, and furnishings incorporated into or | 21 | | upon an aircraft as part of the modification, refurbishment, | 22 | | completion, replacement, repair, or maintenance of the | 23 | | aircraft. This exemption includes consumable supplies used in | 24 | | the modification, refurbishment, completion, replacement, | 25 | | repair, and maintenance of aircraft, but excludes any | 26 | | materials, parts, equipment, components, and consumable |
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| 1 | | supplies used in the modification, replacement, repair, and | 2 | | maintenance of aircraft engines or power plants, whether such | 3 | | engines or power plants are installed or uninstalled upon any | 4 | | such aircraft. "Consumable supplies" include, but are not | 5 | | limited to, adhesive, tape, sandpaper, general purpose | 6 | | lubricants, cleaning solution, latex gloves, and protective | 7 | | films. This exemption applies only to the use of qualifying | 8 | | tangible personal property transferred incident to the | 9 | | modification, refurbishment, completion, replacement, repair, | 10 | | or maintenance of aircraft by persons who (i) hold an Air | 11 | | Agency Certificate and are empowered to operate an approved | 12 | | repair station by the Federal Aviation Administration, (ii) | 13 | | have a Class IV Rating, and (iii) conduct operations in | 14 | | accordance with Part 145 of the Federal Aviation Regulations. | 15 | | The exemption does not include aircraft operated by a | 16 | | commercial air carrier providing scheduled passenger air | 17 | | service pursuant to authority issued under Part 121 or Part 129 | 18 | | of the Federal Aviation Regulations. The changes made to this | 19 | | paragraph (27) by Public Act 98-534 are declarative of existing | 20 | | law. | 21 | | (28) Tangible personal property purchased by a | 22 | | public-facilities corporation, as described in Section | 23 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 24 | | constructing or furnishing a municipal convention hall, but | 25 | | only if the legal title to the municipal convention hall is | 26 | | transferred to the municipality without any further |
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| 1 | | consideration by or on behalf of the municipality at the time | 2 | | of the completion of the municipal convention hall or upon the | 3 | | retirement or redemption of any bonds or other debt instruments | 4 | | issued by the public-facilities corporation in connection with | 5 | | the development of the municipal convention hall. This | 6 | | exemption includes existing public-facilities corporations as | 7 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 8 | | This paragraph is exempt from the provisions of Section 3-75. | 9 | | (29) Beginning January 1, 2017, menstrual pads, tampons, | 10 | | and menstrual cups. | 11 | | (30) Tangible personal property transferred to a purchaser | 12 | | who is exempt from the tax imposed by this Act by operation of | 13 | | federal law. This paragraph is exempt from the provisions of | 14 | | Section 3-75. | 15 | | (31) Agricultural goods purchased at a farmer's market. | 16 | | This paragraph is exempt from the provisions of Section 3-75. | 17 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 18 | | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. | 19 | | 1-4-19; revised 1-8-19.)
| 20 | | Section 15. The Service Occupation Tax Act is amended by | 21 | | changing Section 3-5 as follows:
| 22 | | (35 ILCS 115/3-5)
| 23 | | Sec. 3-5. Exemptions. The following tangible personal | 24 | | property is
exempt from the tax imposed by this Act:
|
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| 1 | | (1) Personal property sold by a corporation, society, | 2 | | association,
foundation, institution, or organization, other | 3 | | than a limited liability
company, that is organized and | 4 | | operated as a not-for-profit service enterprise
for the benefit | 5 | | of persons 65 years of age or older if the personal property
| 6 | | was not purchased by the enterprise for the purpose of resale | 7 | | by the
enterprise.
| 8 | | (2) Personal property purchased by a not-for-profit | 9 | | Illinois county fair
association for use in conducting, | 10 | | operating, or promoting the county fair.
| 11 | | (3) Personal property purchased by any not-for-profit
arts | 12 | | or cultural organization that establishes, by proof required by | 13 | | the
Department by
rule, that it has received an exemption under | 14 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 15 | | organized and operated primarily for the
presentation
or | 16 | | support of arts or cultural programming, activities, or | 17 | | services. These
organizations include, but are not limited to, | 18 | | music and dramatic arts
organizations such as symphony | 19 | | orchestras and theatrical groups, arts and
cultural service | 20 | | organizations, local arts councils, visual arts organizations,
| 21 | | and media arts organizations.
On and after July 1, 2001 ( the | 22 | | effective date of Public Act 92-35) this amendatory Act of the | 23 | | 92nd General
Assembly , however, an entity otherwise eligible | 24 | | for this exemption shall not
make tax-free purchases unless it | 25 | | has an active identification number issued by
the Department.
| 26 | | (4) Legal tender, currency, medallions, or gold or silver |
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| 1 | | coinage
issued by the State of Illinois, the government of the | 2 | | United States of
America, or the government of any foreign | 3 | | country, and bullion.
| 4 | | (5) Until July 1, 2003 and beginning again on September 1, | 5 | | 2004 through August 30, 2014, graphic arts machinery and | 6 | | equipment, including
repair and
replacement parts, both new and | 7 | | used, and including that manufactured on
special order or | 8 | | purchased for lease, certified by the purchaser to be used
| 9 | | primarily for graphic arts production.
Equipment includes | 10 | | chemicals or chemicals acting as catalysts but only if
the
| 11 | | chemicals or chemicals acting as catalysts effect a direct and | 12 | | immediate change
upon a graphic arts product. Beginning on July | 13 | | 1, 2017, graphic arts machinery and equipment is included in | 14 | | the manufacturing and assembling machinery and equipment | 15 | | exemption under Section 2 of this Act.
| 16 | | (6) Personal property sold by a teacher-sponsored student | 17 | | organization
affiliated with an elementary or secondary school | 18 | | located in Illinois.
| 19 | | (7) Farm machinery and equipment, both new and used, | 20 | | including that
manufactured on special order, certified by the | 21 | | purchaser to be used
primarily for production agriculture or | 22 | | State or federal agricultural
programs, including individual | 23 | | replacement parts for the machinery and
equipment, including | 24 | | machinery and equipment purchased for lease,
and including | 25 | | implements of husbandry defined in Section 1-130 of
the | 26 | | Illinois Vehicle Code, farm machinery and agricultural |
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| 1 | | chemical and
fertilizer spreaders, and nurse wagons required to | 2 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 3 | | but
excluding other motor vehicles required to be registered | 4 | | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 5 | | hoop houses used for propagating, growing, or
overwintering | 6 | | plants shall be considered farm machinery and equipment under
| 7 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 8 | | shall include units sold
separately from a motor vehicle | 9 | | required to be licensed and units sold mounted
on a motor | 10 | | vehicle required to be licensed if the selling price of the | 11 | | tender
is separately stated.
| 12 | | Farm machinery and equipment shall include precision | 13 | | farming equipment
that is
installed or purchased to be | 14 | | installed on farm machinery and equipment
including, but not | 15 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 16 | | or spreaders.
Precision farming equipment includes, but is not | 17 | | limited to,
soil testing sensors, computers, monitors, | 18 | | software, global positioning
and mapping systems, and other | 19 | | such equipment.
| 20 | | Farm machinery and equipment also includes computers, | 21 | | sensors, software, and
related equipment used primarily in the
| 22 | | computer-assisted operation of production agriculture | 23 | | facilities, equipment,
and activities such as, but
not limited | 24 | | to,
the collection, monitoring, and correlation of
animal and | 25 | | crop data for the purpose of
formulating animal diets and | 26 | | agricultural chemicals. This item (7) is exempt
from the |
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| 1 | | provisions of
Section 3-55.
| 2 | | (8) Until June 30, 2013, fuel and petroleum products sold | 3 | | to or used by an air common
carrier, certified by the carrier | 4 | | to be used for consumption, shipment,
or storage in the conduct | 5 | | of its business as an air common carrier, for
a flight destined | 6 | | for or returning from a location or locations
outside the | 7 | | United States without regard to previous or subsequent domestic
| 8 | | stopovers.
| 9 | | Beginning July 1, 2013, fuel and petroleum products sold to | 10 | | or used by an air carrier, certified by the carrier to be used | 11 | | for consumption, shipment, or storage in the conduct of its | 12 | | business as an air common carrier, for a flight that (i) is | 13 | | engaged in foreign trade or is engaged in trade between the | 14 | | United States and any of its possessions and (ii) transports at | 15 | | least one individual or package for hire from the city of | 16 | | origination to the city of final destination on the same | 17 | | aircraft, without regard to a change in the flight number of | 18 | | that aircraft. | 19 | | (9) Proceeds of mandatory service charges separately
| 20 | | stated on customers' bills for the purchase and consumption of | 21 | | food and
beverages, to the extent that the proceeds of the | 22 | | service charge are in fact
turned over as tips or as a | 23 | | substitute for tips to the employees who
participate directly | 24 | | in preparing, serving, hosting or cleaning up the
food or | 25 | | beverage function with respect to which the service charge is | 26 | | imposed.
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| 1 | | (10) Until July 1, 2003, oil field exploration, drilling, | 2 | | and production
equipment,
including (i) rigs and parts of rigs, | 3 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 4 | | tubular goods, including casing and
drill strings, (iii) pumps | 5 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 6 | | individual replacement part for oil field exploration,
| 7 | | drilling, and production equipment, and (vi) machinery and | 8 | | equipment purchased
for lease; but
excluding motor vehicles | 9 | | required to be registered under the Illinois
Vehicle Code.
| 10 | | (11) Photoprocessing machinery and equipment, including | 11 | | repair and
replacement parts, both new and used, including that | 12 | | manufactured on
special order, certified by the purchaser to be | 13 | | used primarily for
photoprocessing, and including | 14 | | photoprocessing machinery and equipment
purchased for lease.
| 15 | | (12) Until July 1, 2023, coal and aggregate exploration, | 16 | | mining, off-highway hauling,
processing,
maintenance, and | 17 | | reclamation equipment, including
replacement parts and | 18 | | equipment, and including
equipment
purchased for lease, but | 19 | | excluding motor vehicles required to be registered
under the | 20 | | Illinois Vehicle Code. The changes made to this Section by | 21 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 22 | | for credit or refund is allowed on or after August 16, 2013 | 23 | | (the effective date of Public Act 98-456)
for such taxes paid | 24 | | during the period beginning July 1, 2003 and ending on August | 25 | | 16, 2013 (the effective date of Public Act 98-456).
| 26 | | (13) Beginning January 1, 1992 and through June 30, 2016, |
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| 1 | | food for human consumption that is to be consumed off the | 2 | | premises
where it is sold (other than alcoholic beverages, soft | 3 | | drinks and food that
has been prepared for immediate | 4 | | consumption) and prescription and
non-prescription medicines, | 5 | | drugs, medical appliances, and insulin, urine
testing | 6 | | materials, syringes, and needles used by diabetics, for human | 7 | | use,
when purchased for use by a person receiving medical | 8 | | assistance under
Article V of the Illinois Public Aid Code who | 9 | | resides in a licensed
long-term care facility, as defined in | 10 | | the Nursing Home Care Act, or in a licensed facility as defined | 11 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 12 | | Specialized Mental Health Rehabilitation Act of 2013.
| 13 | | (14) Semen used for artificial insemination of livestock | 14 | | for direct
agricultural production.
| 15 | | (15) Horses, or interests in horses, registered with and | 16 | | meeting the
requirements of any of the
Arabian Horse Club | 17 | | Registry of America, Appaloosa Horse Club, American Quarter
| 18 | | Horse Association, United States
Trotting Association, or | 19 | | Jockey Club, as appropriate, used for
purposes of breeding or | 20 | | racing for prizes. This item (15) is exempt from the provisions | 21 | | of Section 3-55, and the exemption provided for under this item | 22 | | (15) applies for all periods beginning May 30, 1995, but no | 23 | | claim for credit or refund is allowed on or after January 1, | 24 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 25 | | paid during the period beginning May 30, 2000 and ending on | 26 | | January 1, 2008 (the effective date of Public Act 95-88).
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| 1 | | (16) Computers and communications equipment utilized for | 2 | | any
hospital
purpose
and equipment used in the diagnosis,
| 3 | | analysis, or treatment of hospital patients sold to a lessor | 4 | | who leases the
equipment, under a lease of one year or longer | 5 | | executed or in effect at the
time of the purchase, to a
| 6 | | hospital
that has been issued an active tax exemption | 7 | | identification number by the
Department under Section 1g of the | 8 | | Retailers' Occupation Tax Act.
| 9 | | (17) Personal property sold to a lessor who leases the
| 10 | | property, under a
lease of one year or longer executed or in | 11 | | effect at the time of the purchase,
to a governmental body
that | 12 | | has been issued an active tax exemption identification number | 13 | | by the
Department under Section 1g of the Retailers' Occupation | 14 | | Tax Act.
| 15 | | (18) 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
donated for | 18 | | disaster relief to be used in a State or federally declared
| 19 | | disaster area in Illinois or bordering Illinois by a | 20 | | manufacturer or retailer
that is registered in this State to a | 21 | | corporation, society, association,
foundation, or institution | 22 | | that has been issued a sales tax exemption
identification | 23 | | number by the Department that assists victims of the disaster
| 24 | | who reside within the declared disaster area.
| 25 | | (19) Beginning with taxable years ending on or after | 26 | | December
31, 1995 and
ending with taxable years ending on or |
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| 1 | | before December 31, 2004, personal
property that is used in the | 2 | | performance of infrastructure repairs in this
State, including | 3 | | but not limited to municipal roads and streets, access roads,
| 4 | | bridges, sidewalks, waste disposal systems, water and sewer | 5 | | line extensions,
water distribution and purification | 6 | | facilities, storm water drainage and
retention facilities, and | 7 | | sewage treatment facilities, resulting from a State
or | 8 | | federally declared disaster in Illinois or bordering Illinois | 9 | | when such
repairs are initiated on facilities located in the | 10 | | declared disaster area
within 6 months after the disaster.
| 11 | | (20) Beginning July 1, 1999, game or game birds sold at a | 12 | | "game breeding
and
hunting preserve area" as that term is used
| 13 | | in the
Wildlife Code. This paragraph is exempt from the | 14 | | provisions
of
Section 3-55.
| 15 | | (21) A motor vehicle, as that term is defined in Section | 16 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 17 | | corporation, limited liability
company, society, association, | 18 | | foundation, or institution that is determined by
the Department | 19 | | to be organized and operated exclusively for educational
| 20 | | purposes. For purposes of this exemption, "a corporation, | 21 | | limited liability
company, society, association, foundation, | 22 | | or institution organized and
operated
exclusively for | 23 | | educational purposes" means all tax-supported public schools,
| 24 | | private schools that offer systematic instruction in useful | 25 | | branches of
learning by methods common to public schools and | 26 | | that compare favorably in
their scope and intensity with the |
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| 1 | | course of study presented in tax-supported
schools, and | 2 | | vocational or technical schools or institutes organized and
| 3 | | operated exclusively to provide a course of study of not less | 4 | | than 6 weeks
duration and designed to prepare individuals to | 5 | | follow a trade or to pursue a
manual, technical, mechanical, | 6 | | industrial, business, or commercial
occupation.
| 7 | | (22) Beginning January 1, 2000, personal property, | 8 | | including
food,
purchased through fundraising
events for the | 9 | | benefit of
a public or private elementary or
secondary school, | 10 | | a group of those schools, or one or more school
districts if | 11 | | the events are
sponsored by an entity recognized by the school | 12 | | district that consists
primarily of volunteers and includes
| 13 | | parents and teachers of the school children. This paragraph | 14 | | does not apply
to fundraising
events (i) for the benefit of | 15 | | private home instruction or (ii)
for which the fundraising | 16 | | entity purchases the personal property sold at
the events from | 17 | | another individual or entity that sold the property for the
| 18 | | purpose of resale by the fundraising entity and that
profits | 19 | | from the sale to the
fundraising entity. This paragraph is | 20 | | exempt
from the provisions
of Section 3-55.
| 21 | | (23) Beginning January 1, 2000
and through December 31, | 22 | | 2001, new or used automatic vending
machines that prepare and | 23 | | serve hot food and beverages, including coffee, soup,
and
other | 24 | | items, and replacement parts for these machines.
Beginning | 25 | | January 1,
2002 and through June 30, 2003, machines and parts | 26 | | for
machines used in commercial, coin-operated amusement
and |
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| 1 | | vending business if a use or occupation tax is paid on the | 2 | | gross receipts
derived from
the use of the commercial, | 3 | | coin-operated amusement and vending machines.
This paragraph | 4 | | is exempt from the provisions of Section 3-55.
| 5 | | (24) Beginning
on August 2, 2001 ( the effective date of | 6 | | Public Act 92-227) this amendatory Act of the 92nd General | 7 | | Assembly ,
computers and communications equipment
utilized for | 8 | | any hospital purpose and equipment used in the diagnosis,
| 9 | | analysis, or treatment of hospital patients sold to a lessor | 10 | | who leases the
equipment, under a lease of one year or longer | 11 | | executed or in effect at the
time of the purchase, to a | 12 | | hospital that has been issued an active tax
exemption | 13 | | identification number by the Department under Section 1g of the
| 14 | | Retailers' Occupation Tax Act. This paragraph is exempt from | 15 | | the provisions of
Section 3-55.
| 16 | | (25) Beginning
on August 2, 2001 ( the effective date of | 17 | | Public Act 92-227) this amendatory Act of the 92nd General | 18 | | Assembly ,
personal property sold to a lessor who
leases the | 19 | | property, under a lease of one year or longer executed or in | 20 | | effect
at the time of the purchase, to a governmental body that | 21 | | has been issued an
active tax exemption identification number | 22 | | by the Department under Section 1g
of the Retailers' Occupation | 23 | | Tax Act. This paragraph is exempt from the
provisions of | 24 | | Section 3-55.
| 25 | | (26) Beginning on January 1, 2002 and through June 30, | 26 | | 2016, tangible personal property
purchased
from an Illinois |
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| 1 | | retailer by a taxpayer engaged in centralized purchasing
| 2 | | activities in Illinois who will, upon receipt of the property | 3 | | in Illinois,
temporarily store the property in Illinois (i) for | 4 | | the purpose of subsequently
transporting it outside this State | 5 | | for use or consumption thereafter solely
outside this State or | 6 | | (ii) for the purpose of being processed, fabricated, or
| 7 | | manufactured into, attached to, or incorporated into other | 8 | | tangible personal
property to be transported outside this State | 9 | | and thereafter used or consumed
solely outside this State. The | 10 | | Director of Revenue shall, pursuant to rules
adopted in | 11 | | accordance with the Illinois Administrative Procedure Act, | 12 | | issue a
permit to any taxpayer in good standing with the | 13 | | Department who is eligible for
the exemption under this | 14 | | paragraph (26). The permit issued under
this paragraph (26) | 15 | | shall authorize the holder, to the extent and
in the manner | 16 | | specified in the rules adopted under this Act, to purchase
| 17 | | tangible personal property from a retailer exempt from the | 18 | | taxes imposed by
this Act. Taxpayers shall maintain all | 19 | | necessary books and records to
substantiate the use and | 20 | | consumption of all such tangible personal property
outside of | 21 | | the State of Illinois.
| 22 | | (27) Beginning January 1, 2008, tangible personal property | 23 | | used in the construction or maintenance of a community water | 24 | | supply, as defined under Section 3.145 of the Environmental | 25 | | Protection Act, that is operated by a not-for-profit | 26 | | corporation that holds a valid water supply permit issued under |
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| 1 | | Title IV of the Environmental Protection Act. This paragraph is | 2 | | exempt from the provisions of Section 3-55.
| 3 | | (28) Tangible personal property sold to a | 4 | | public-facilities corporation, as described in Section | 5 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 6 | | constructing or furnishing a municipal convention hall, but | 7 | | only if the legal title to the municipal convention hall is | 8 | | transferred to the municipality without any further | 9 | | consideration by or on behalf of the municipality at the time | 10 | | of the completion of the municipal convention hall or upon the | 11 | | retirement or redemption of any bonds or other debt instruments | 12 | | issued by the public-facilities corporation in connection with | 13 | | the development of the municipal convention hall. This | 14 | | exemption includes existing public-facilities corporations as | 15 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 16 | | This paragraph is exempt from the provisions of Section 3-55. | 17 | | (29) Beginning January 1, 2010, materials, parts, | 18 | | equipment, components, and furnishings incorporated into or | 19 | | upon an aircraft as part of the modification, refurbishment, | 20 | | completion, replacement, repair, or maintenance of the | 21 | | aircraft. This exemption includes consumable supplies used in | 22 | | the modification, refurbishment, completion, replacement, | 23 | | repair, and maintenance of aircraft, but excludes any | 24 | | materials, parts, equipment, components, and consumable | 25 | | supplies used in the modification, replacement, repair, and | 26 | | maintenance of aircraft engines or power plants, whether such |
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| 1 | | engines or power plants are installed or uninstalled upon any | 2 | | such aircraft. "Consumable supplies" include, but are not | 3 | | limited to, adhesive, tape, sandpaper, general purpose | 4 | | lubricants, cleaning solution, latex gloves, and protective | 5 | | films. This exemption applies only to the transfer of | 6 | | qualifying tangible personal property incident to the | 7 | | modification, refurbishment, completion, replacement, repair, | 8 | | or maintenance of an aircraft by persons who (i) hold an Air | 9 | | Agency Certificate and are empowered to operate an approved | 10 | | repair station by the Federal Aviation Administration, (ii) | 11 | | have a Class IV Rating, and (iii) conduct operations in | 12 | | accordance with Part 145 of the Federal Aviation Regulations. | 13 | | The exemption does not include aircraft operated by a | 14 | | commercial air carrier providing scheduled passenger air | 15 | | service pursuant to authority issued under Part 121 or Part 129 | 16 | | of the Federal Aviation Regulations. The changes made to this | 17 | | paragraph (29) by Public Act 98-534 are declarative of existing | 18 | | law. | 19 | | (30) Beginning January 1, 2017, menstrual pads, tampons, | 20 | | and menstrual cups. | 21 | | (31) Tangible personal property transferred to a purchaser | 22 | | who is exempt from tax by operation of federal law. This | 23 | | paragraph is exempt from the provisions of Section 3-55. | 24 | | (32) Agricultural goods purchased at a farmer's market. | 25 | | This paragraph is exempt from the provisions of Section 3-55. | 26 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; |
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| 1 | | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. | 2 | | 1-4-19; revised 1-8-19.)
| 3 | | Section 20. The Retailers' Occupation Tax Act is amended by | 4 | | changing Section 2-5 as follows:
| 5 | | (35 ILCS 120/2-5)
| 6 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 7 | | sale of
the following tangible personal property are exempt | 8 | | from the tax imposed
by this Act:
| 9 | | (1) Farm chemicals.
| 10 | | (2) Farm machinery and equipment, both new and used, | 11 | | including that
manufactured on special order, certified by | 12 | | the purchaser to be used
primarily for production | 13 | | agriculture or State or federal agricultural
programs, | 14 | | including individual replacement parts for the machinery | 15 | | and
equipment, including machinery and equipment purchased | 16 | | for lease,
and including implements of husbandry defined in | 17 | | Section 1-130 of
the Illinois Vehicle Code, farm machinery | 18 | | and agricultural chemical and
fertilizer spreaders, and | 19 | | nurse wagons required to be registered
under Section 3-809 | 20 | | of the Illinois Vehicle Code,
but
excluding other motor | 21 | | vehicles required to be registered under the Illinois
| 22 | | Vehicle Code.
Horticultural polyhouses or hoop houses used | 23 | | for propagating, growing, or
overwintering plants shall be | 24 | | considered farm machinery and equipment under
this item |
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| 1 | | (2).
Agricultural chemical tender tanks and dry boxes shall | 2 | | include units sold
separately from a motor vehicle required | 3 | | to be licensed and units sold mounted
on a motor vehicle | 4 | | required to be licensed, if the selling price of the tender
| 5 | | is separately stated.
| 6 | | Farm machinery and equipment shall include precision | 7 | | farming equipment
that is
installed or purchased to be | 8 | | installed on farm machinery and equipment
including, but | 9 | | not limited to, tractors, harvesters, sprayers, planters,
| 10 | | seeders, or spreaders.
Precision farming equipment | 11 | | includes, but is not limited to,
soil testing sensors, | 12 | | computers, monitors, software, global positioning
and | 13 | | mapping systems, and other such equipment.
| 14 | | Farm machinery and equipment also includes computers, | 15 | | sensors, software, and
related equipment used primarily in | 16 | | the
computer-assisted operation of production agriculture | 17 | | facilities, equipment,
and activities such as, but
not | 18 | | limited to,
the collection, monitoring, and correlation of
| 19 | | animal and crop data for the purpose of
formulating animal | 20 | | diets and agricultural chemicals. This item (2) is exempt
| 21 | | from the provisions of
Section 2-70.
| 22 | | (3) Until July 1, 2003, distillation machinery and | 23 | | equipment, sold as a
unit or kit,
assembled or installed by | 24 | | the retailer, certified by the user to be used
only for the | 25 | | production of ethyl alcohol that will be used for | 26 | | consumption
as motor fuel or as a component of motor fuel |
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| 1 | | for the personal use of the
user, and not subject to sale | 2 | | or resale.
| 3 | | (4) Until July 1, 2003 and beginning again September 1, | 4 | | 2004 through August 30, 2014, graphic arts machinery and | 5 | | equipment, including
repair and
replacement parts, both | 6 | | new and used, and including that manufactured on
special | 7 | | order or purchased for lease, certified by the purchaser to | 8 | | be used
primarily for graphic arts production.
Equipment | 9 | | includes chemicals or
chemicals acting as catalysts but | 10 | | only if
the chemicals or chemicals acting as catalysts | 11 | | effect a direct and immediate
change upon a
graphic arts | 12 | | product. Beginning on July 1, 2017, graphic arts machinery | 13 | | and equipment is included in the manufacturing and | 14 | | assembling machinery and equipment exemption under | 15 | | paragraph (14).
| 16 | | (5) A motor vehicle that is used for automobile | 17 | | renting, as defined in the Automobile Renting Occupation | 18 | | and Use Tax Act. This paragraph is exempt from
the | 19 | | provisions of Section 2-70.
| 20 | | (6) Personal property sold by a teacher-sponsored | 21 | | student organization
affiliated with an elementary or | 22 | | secondary school located in Illinois.
| 23 | | (7) Until July 1, 2003, proceeds of that portion of the | 24 | | selling price of
a passenger car the
sale of which is | 25 | | subject to the Replacement Vehicle Tax.
| 26 | | (8) Personal property sold to an Illinois county fair |
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| 1 | | association for
use in conducting, operating, or promoting | 2 | | the county fair.
| 3 | | (9) Personal property sold to a not-for-profit arts
or | 4 | | cultural organization that establishes, by proof required | 5 | | by the Department
by
rule, that it has received an | 6 | | exemption under Section 501(c)(3) of the
Internal Revenue | 7 | | Code and that is organized and operated primarily for the
| 8 | | presentation
or support of arts or cultural programming, | 9 | | activities, or services. These
organizations include, but | 10 | | are not limited to, music and dramatic arts
organizations | 11 | | such as symphony orchestras and theatrical groups, arts and
| 12 | | cultural service organizations, local arts councils, | 13 | | visual arts organizations,
and media arts organizations.
| 14 | | On and after July 1, 2001 (the effective date of Public Act | 15 | | 92-35), however, an entity otherwise eligible for this | 16 | | exemption shall not
make tax-free purchases unless it has | 17 | | an active identification number issued by
the Department.
| 18 | | (10) Personal property sold by a corporation, society, | 19 | | association,
foundation, institution, or organization, | 20 | | other than a limited liability
company, that is organized | 21 | | and operated as a not-for-profit service enterprise
for the | 22 | | benefit of persons 65 years of age or older if the personal | 23 | | property
was not purchased by the enterprise for the | 24 | | purpose of resale by the
enterprise.
| 25 | | (11) Personal property sold to a governmental body, to | 26 | | a corporation,
society, association, foundation, or |
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| 1 | | institution organized and operated
exclusively for | 2 | | charitable, religious, or educational purposes, or to a
| 3 | | not-for-profit corporation, society, association, | 4 | | foundation, institution,
or organization that has no | 5 | | compensated officers or employees and that is
organized and | 6 | | operated primarily for the recreation of persons 55 years | 7 | | of
age or older. A limited liability company may qualify | 8 | | for the exemption under
this paragraph only if the limited | 9 | | liability company is organized and operated
exclusively | 10 | | for educational purposes. On and after July 1, 1987, | 11 | | however, no
entity otherwise eligible for this exemption | 12 | | shall make tax-free purchases
unless it has an active | 13 | | identification number issued by the Department.
| 14 | | (12) (Blank).
| 15 | | (12-5) On and after July 1, 2003 and through June 30, | 16 | | 2004, motor vehicles of the second division
with a gross | 17 | | vehicle weight in excess of 8,000 pounds
that
are
subject | 18 | | to the commercial distribution fee imposed under Section | 19 | | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | 20 | | 2004 and through June 30, 2005, the use in this State of | 21 | | motor vehicles of the second division: (i) with a gross | 22 | | vehicle weight rating in excess of 8,000 pounds; (ii) that | 23 | | are subject to the commercial distribution fee imposed | 24 | | under Section 3-815.1 of the Illinois Vehicle Code; and | 25 | | (iii) that are primarily used for commercial purposes. | 26 | | Through June 30, 2005, this
exemption applies to repair and |
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| 1 | | replacement parts added
after the
initial purchase of such | 2 | | a motor vehicle if that motor vehicle is used in a
manner | 3 | | that
would qualify for the rolling stock exemption | 4 | | otherwise provided for in this
Act. For purposes of this | 5 | | paragraph, "used for commercial purposes" means the | 6 | | transportation of persons or property in furtherance of any | 7 | | commercial or industrial enterprise whether for-hire or | 8 | | not.
| 9 | | (13) Proceeds from sales to owners, lessors, or
| 10 | | shippers of
tangible personal property that is utilized by | 11 | | interstate carriers for
hire for use as rolling stock | 12 | | moving in interstate commerce
and equipment operated by a | 13 | | telecommunications provider, licensed as a
common carrier | 14 | | by the Federal Communications Commission, which is
| 15 | | permanently installed in or affixed to aircraft moving in | 16 | | interstate commerce.
| 17 | | (14) Machinery and equipment that will be used by the | 18 | | purchaser, or a
lessee of the purchaser, primarily in the | 19 | | process of manufacturing or
assembling tangible personal | 20 | | property for wholesale or retail sale or
lease, whether the | 21 | | sale or lease is made directly by the manufacturer or by
| 22 | | some other person, whether the materials used in the | 23 | | process are owned by
the manufacturer or some other person, | 24 | | or whether the sale or lease is made
apart from or as an | 25 | | incident to the seller's engaging in the service
occupation | 26 | | of producing machines, tools, dies, jigs, patterns, |
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| 1 | | gauges, or
other similar items of no commercial value on | 2 | | special order for a particular
purchaser. The exemption | 3 | | provided by this paragraph (14) does not include machinery | 4 | | and equipment used in (i) the generation of electricity for | 5 | | wholesale or retail sale; (ii) the generation or treatment | 6 | | of natural or artificial gas for wholesale or retail sale | 7 | | that is delivered to customers through pipes, pipelines, or | 8 | | mains; or (iii) the treatment of water for wholesale or | 9 | | retail sale that is delivered to customers through pipes, | 10 | | pipelines, or mains. The provisions of Public Act 98-583 | 11 | | are declaratory of existing law as to the meaning and scope | 12 | | of this exemption. Beginning on July 1, 2017, the exemption | 13 | | provided by this paragraph (14) includes, but is not | 14 | | limited to, graphic arts machinery and equipment, as | 15 | | defined in paragraph (4) of this Section.
| 16 | | (15) Proceeds of mandatory service charges separately | 17 | | stated on
customers' bills for purchase and consumption of | 18 | | food and beverages, to the
extent that the proceeds of the | 19 | | service charge are in fact turned over as
tips or as a | 20 | | substitute for tips to the employees who participate | 21 | | directly
in preparing, serving, hosting or cleaning up the | 22 | | food or beverage function
with respect to which the service | 23 | | charge is imposed.
| 24 | | (16) Tangible personal property sold to a purchaser if | 25 | | the purchaser is exempt from use tax by operation of | 26 | | federal law. This paragraph is exempt from the provisions |
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| 1 | | of Section 2-70.
| 2 | | (17) Tangible personal property sold to a common | 3 | | carrier by rail or
motor that
receives the physical | 4 | | possession of the property in Illinois and that
transports | 5 | | the property, or shares with another common carrier in the
| 6 | | transportation of the property, out of Illinois on a | 7 | | standard uniform bill
of lading showing the seller of the | 8 | | property as the shipper or consignor of
the property to a | 9 | | destination outside Illinois, for use outside Illinois.
| 10 | | (18) Legal tender, currency, medallions, or gold or | 11 | | silver coinage
issued by the State of Illinois, the | 12 | | government of the United States of
America, or the | 13 | | government of any foreign country, and bullion.
| 14 | | (19) Until July 1, 2003, oil field exploration, | 15 | | drilling, and production
equipment, including
(i) rigs and | 16 | | parts of rigs, rotary rigs, cable tool
rigs, and workover | 17 | | rigs, (ii) pipe and tubular goods, including casing and
| 18 | | drill strings, (iii) pumps and pump-jack units, (iv) | 19 | | storage tanks and flow
lines, (v) any individual | 20 | | replacement part for oil field exploration,
drilling, and | 21 | | production equipment, and (vi) machinery and equipment | 22 | | purchased
for lease; but
excluding motor vehicles required | 23 | | to be registered under the Illinois
Vehicle Code.
| 24 | | (20) Photoprocessing machinery and equipment, | 25 | | including repair and
replacement parts, both new and used, | 26 | | including that manufactured on
special order, certified by |
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| 1 | | the purchaser to be used primarily for
photoprocessing, and | 2 | | including photoprocessing machinery and equipment
| 3 | | purchased for lease.
| 4 | | (21) Until July 1, 2023, coal and aggregate | 5 | | exploration, mining, off-highway hauling,
processing,
| 6 | | maintenance, and reclamation equipment, including
| 7 | | replacement parts and equipment, and including
equipment | 8 | | purchased for lease, but excluding motor vehicles required | 9 | | to be
registered under the Illinois Vehicle Code. The | 10 | | changes made to this Section by Public Act 97-767 apply on | 11 | | and after July 1, 2003, but no claim for credit or refund | 12 | | is allowed on or after August 16, 2013 (the effective date | 13 | | of Public Act 98-456)
for such taxes paid during the period | 14 | | beginning July 1, 2003 and ending on August 16, 2013 (the | 15 | | effective date of Public Act 98-456).
| 16 | | (22) Until June 30, 2013, fuel and petroleum products | 17 | | sold to or used by an air carrier,
certified by the carrier | 18 | | to be used for consumption, shipment, or storage
in the | 19 | | conduct of its business as an air common carrier, for a | 20 | | flight
destined for or returning from a location or | 21 | | locations
outside the United States without regard to | 22 | | previous or subsequent domestic
stopovers.
| 23 | | Beginning July 1, 2013, fuel and petroleum products | 24 | | sold to or used by an air carrier, certified by the carrier | 25 | | to be used for consumption, shipment, or storage in the | 26 | | conduct of its business as an air common carrier, for a |
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| 1 | | flight that (i) is engaged in foreign trade or is engaged | 2 | | in trade between the United States and any of its | 3 | | possessions and (ii) transports at least one individual or | 4 | | package for hire from the city of origination to the city | 5 | | of final destination on the same aircraft, without regard | 6 | | to a change in the flight number of that aircraft. | 7 | | (23) A transaction in which the purchase order is | 8 | | received by a florist
who is located outside Illinois, but | 9 | | who has a florist located in Illinois
deliver the property | 10 | | to the purchaser or the purchaser's donee in Illinois.
| 11 | | (24) Fuel consumed or used in the operation of ships, | 12 | | barges, or vessels
that are used primarily in or for the | 13 | | transportation of property or the
conveyance of persons for | 14 | | hire on rivers bordering on this State if the
fuel is | 15 | | delivered by the seller to the purchaser's barge, ship, or | 16 | | vessel
while it is afloat upon that bordering river.
| 17 | | (25) Except as provided in item (25-5) of this Section, | 18 | | a
motor vehicle sold in this State to a nonresident even | 19 | | though the
motor vehicle is delivered to the nonresident in | 20 | | this State, if the motor
vehicle is not to be titled in | 21 | | this State, and if a drive-away permit
is issued to the | 22 | | motor vehicle as provided in Section 3-603 of the Illinois
| 23 | | Vehicle Code or if the nonresident purchaser has vehicle | 24 | | registration
plates to transfer to the motor vehicle upon | 25 | | returning to his or her home
state. The issuance of the | 26 | | drive-away permit or having
the
out-of-state registration |
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| 1 | | plates to be transferred is prima facie evidence
that the | 2 | | motor vehicle will not be titled in this State.
| 3 | | (25-5) The exemption under item (25) does not apply if | 4 | | the state in which the motor vehicle will be titled does | 5 | | not allow a reciprocal exemption for a motor vehicle sold | 6 | | and delivered in that state to an Illinois resident but | 7 | | titled in Illinois. The tax collected under this Act on the | 8 | | sale of a motor vehicle in this State to a resident of | 9 | | another state that does not allow a reciprocal exemption | 10 | | shall be imposed at a rate equal to the state's rate of tax | 11 | | on taxable property in the state in which the purchaser is | 12 | | a resident, except that the tax shall not exceed the tax | 13 | | that would otherwise be imposed under this Act. At the time | 14 | | of the sale, the purchaser shall execute a statement, | 15 | | signed under penalty of perjury, of his or her intent to | 16 | | title the vehicle in the state in which the purchaser is a | 17 | | resident within 30 days after the sale and of the fact of | 18 | | the payment to the State of Illinois of tax in an amount | 19 | | equivalent to the state's rate of tax on taxable property | 20 | | in his or her state of residence and shall submit the | 21 | | statement to the appropriate tax collection agency in his | 22 | | or her state of residence. In addition, the retailer must | 23 | | retain a signed copy of the statement in his or her | 24 | | records. Nothing in this item shall be construed to require | 25 | | the removal of the vehicle from this state following the | 26 | | filing of an intent to title the vehicle in the purchaser's |
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| 1 | | state of residence if the purchaser titles the vehicle in | 2 | | his or her state of residence within 30 days after the date | 3 | | of sale. The tax collected under this Act in accordance | 4 | | with this item (25-5) shall be proportionately distributed | 5 | | as if the tax were collected at the 6.25% general rate | 6 | | imposed under this Act.
| 7 | | (25-7) Beginning on July 1, 2007, no tax is imposed | 8 | | under this Act on the sale of an aircraft, as defined in | 9 | | Section 3 of the Illinois Aeronautics Act, if all of the | 10 | | following conditions are met: | 11 | | (1) the aircraft leaves this State within 15 days | 12 | | after the later of either the issuance of the final | 13 | | billing for the sale of the aircraft, or the authorized | 14 | | approval for return to service, completion of the | 15 | | maintenance record entry, and completion of the test | 16 | | flight and ground test for inspection, as required by | 17 | | 14 C.F.R. 91.407; | 18 | | (2) the aircraft is not based or registered in this | 19 | | State after the sale of the aircraft; and | 20 | | (3) the seller retains in his or her books and | 21 | | records and provides to the Department a signed and | 22 | | dated certification from the purchaser, on a form | 23 | | prescribed by the Department, certifying that the | 24 | | requirements of this item (25-7) are met. The | 25 | | certificate must also include the name and address of | 26 | | the purchaser, the address of the location where the |
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| 1 | | aircraft is to be titled or registered, the address of | 2 | | the primary physical location of the aircraft, and | 3 | | other information that the Department may reasonably | 4 | | require. | 5 | | For purposes of this item (25-7): | 6 | | "Based in this State" means hangared, stored, or | 7 | | otherwise used, excluding post-sale customizations as | 8 | | defined in this Section, for 10 or more days in each | 9 | | 12-month period immediately following the date of the sale | 10 | | of the aircraft. | 11 | | "Registered in this State" means an aircraft | 12 | | registered with the Department of Transportation, | 13 | | Aeronautics Division, or titled or registered with the | 14 | | Federal Aviation Administration to an address located in | 15 | | this State. | 16 | | This paragraph (25-7) is exempt from the provisions
of
| 17 | | Section 2-70.
| 18 | | (26) Semen used for artificial insemination of | 19 | | livestock for direct
agricultural production.
| 20 | | (27) Horses, or interests in horses, registered with | 21 | | and meeting the
requirements of any of the
Arabian Horse | 22 | | Club Registry of America, Appaloosa Horse Club, American | 23 | | Quarter
Horse Association, United States
Trotting | 24 | | Association, or Jockey Club, as appropriate, used for
| 25 | | purposes of breeding or racing for prizes. This item (27) | 26 | | is exempt from the provisions of Section 2-70, and the |
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| 1 | | exemption provided for under this item (27) applies for all | 2 | | periods beginning May 30, 1995, but no claim for credit or | 3 | | refund is allowed on or after January 1, 2008 (the | 4 | | effective date of Public Act 95-88)
for such taxes paid | 5 | | during the period beginning May 30, 2000 and ending on | 6 | | January 1, 2008 (the effective date of Public Act 95-88).
| 7 | | (28) Computers and communications equipment utilized | 8 | | for any
hospital
purpose
and equipment used in the | 9 | | diagnosis,
analysis, or treatment of hospital patients | 10 | | sold to a lessor who leases the
equipment, under a lease of | 11 | | one year or longer executed or in effect at the
time of the | 12 | | purchase, to a
hospital
that has been issued an active tax | 13 | | exemption identification number by the
Department under | 14 | | Section 1g of this Act.
| 15 | | (29) Personal property sold to a lessor who leases the
| 16 | | property, under a
lease of one year or longer executed or | 17 | | in effect at the time of the purchase,
to a governmental | 18 | | body
that has been issued an active tax exemption | 19 | | identification number by the
Department under Section 1g of | 20 | | this Act.
| 21 | | (30) Beginning with taxable years ending on or after | 22 | | December
31, 1995
and
ending with taxable years ending on | 23 | | or before December 31, 2004,
personal property that is
| 24 | | donated for disaster relief to be used in a State or | 25 | | federally declared
disaster area in Illinois or bordering | 26 | | Illinois by a manufacturer or retailer
that is registered |
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| 1 | | in this State to a corporation, society, association,
| 2 | | foundation, or institution that has been issued a sales tax | 3 | | exemption
identification number by the Department that | 4 | | assists victims of the disaster
who reside within the | 5 | | declared disaster area.
| 6 | | (31) Beginning with taxable years ending on or after | 7 | | December
31, 1995 and
ending with taxable years ending on | 8 | | or before December 31, 2004, personal
property that is used | 9 | | in the performance of infrastructure repairs in this
State, | 10 | | including but not limited to municipal roads and streets, | 11 | | access roads,
bridges, sidewalks, waste disposal systems, | 12 | | water and sewer line extensions,
water distribution and | 13 | | purification facilities, storm water drainage and
| 14 | | retention facilities, and sewage treatment facilities, | 15 | | resulting from a State
or federally declared disaster in | 16 | | Illinois or bordering Illinois when such
repairs are | 17 | | initiated on facilities located in the declared disaster | 18 | | area
within 6 months after the disaster.
| 19 | | (32) Beginning July 1, 1999, game or game birds sold at | 20 | | a "game breeding
and
hunting preserve area" as that term is | 21 | | used
in the
Wildlife Code. This paragraph is exempt from | 22 | | the provisions
of
Section 2-70.
| 23 | | (33) A motor vehicle, as that term is defined in | 24 | | Section 1-146
of the
Illinois Vehicle Code, that is donated | 25 | | to a corporation, limited liability
company, society, | 26 | | association, foundation, or institution that is determined |
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| 1 | | by
the Department to be organized and operated exclusively | 2 | | for educational
purposes. For purposes of this exemption, | 3 | | "a corporation, limited liability
company, society, | 4 | | association, foundation, or institution organized and
| 5 | | operated
exclusively for educational purposes" means all | 6 | | tax-supported public schools,
private schools that offer | 7 | | systematic instruction in useful branches of
learning by | 8 | | methods common to public schools and that compare favorably | 9 | | in
their scope and intensity with the course of study | 10 | | presented in tax-supported
schools, and vocational or | 11 | | technical schools or institutes organized and
operated | 12 | | exclusively to provide a course of study of not less than 6 | 13 | | weeks
duration and designed to prepare individuals to | 14 | | follow a trade or to pursue a
manual, technical, | 15 | | mechanical, industrial, business, or commercial
| 16 | | occupation.
| 17 | | (34) Beginning January 1, 2000, personal property, | 18 | | including food, purchased
through fundraising events for | 19 | | the benefit of a public or private elementary or
secondary | 20 | | school, a group of those schools, or one or more school | 21 | | districts if
the events are sponsored by an entity | 22 | | recognized by the school district that
consists primarily | 23 | | of volunteers and includes parents and teachers of the
| 24 | | school children. This paragraph does not apply to | 25 | | fundraising events (i) for
the benefit of private home | 26 | | instruction or (ii) for which the fundraising
entity |
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| 1 | | purchases the personal property sold at the events from | 2 | | another
individual or entity that sold the property for the | 3 | | purpose of resale by the
fundraising entity and that | 4 | | profits from the sale to the fundraising entity.
This | 5 | | paragraph is exempt from the provisions of Section 2-70.
| 6 | | (35) Beginning January 1, 2000 and through December 31, | 7 | | 2001, new or used
automatic vending machines that prepare | 8 | | and serve hot food and beverages,
including coffee, soup, | 9 | | and other items, and replacement parts for these
machines. | 10 | | Beginning January 1, 2002 and through June 30, 2003, | 11 | | machines
and parts for machines used in
commercial, | 12 | | coin-operated amusement and vending business if a use or | 13 | | occupation
tax is paid on the gross receipts derived from | 14 | | the use of the commercial,
coin-operated amusement and | 15 | | vending machines. This paragraph is exempt from
the | 16 | | provisions of Section 2-70.
| 17 | | (35-5) Beginning August 23, 2001 and through June 30, | 18 | | 2016, food for human consumption that is to be consumed off
| 19 | | the premises where it is sold (other than alcoholic | 20 | | beverages, soft drinks,
and food that has been prepared for | 21 | | immediate consumption) and prescription
and | 22 | | nonprescription medicines, drugs, medical appliances, and | 23 | | insulin, urine
testing materials, syringes, and needles | 24 | | used by diabetics, for human use, when
purchased for use by | 25 | | a person receiving medical assistance under Article V of
| 26 | | the Illinois Public Aid Code who resides in a licensed |
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| 1 | | long-term care facility,
as defined in the Nursing Home | 2 | | Care Act, or a licensed facility as defined in the ID/DD | 3 | | Community Care Act, the MC/DD Act, or the Specialized | 4 | | Mental Health Rehabilitation Act of 2013.
| 5 | | (36) Beginning August 2, 2001, computers and | 6 | | communications equipment
utilized for any hospital purpose | 7 | | and equipment used in the diagnosis,
analysis, or treatment | 8 | | of hospital patients sold to a lessor who leases the
| 9 | | equipment, under a lease of one year or longer executed or | 10 | | in effect at the
time of the purchase, to a hospital that | 11 | | has been issued an active tax
exemption identification | 12 | | number by the Department under Section 1g of this Act.
This | 13 | | paragraph is exempt from the provisions of Section 2-70.
| 14 | | (37) Beginning August 2, 2001, personal property sold | 15 | | to a lessor who
leases the property, under a lease of one | 16 | | year or longer executed or in effect
at the time of the | 17 | | purchase, to a governmental body that has been issued an
| 18 | | active tax exemption identification number by the | 19 | | Department under Section 1g
of this Act. This paragraph is | 20 | | exempt from the provisions of Section 2-70.
| 21 | | (38) Beginning on January 1, 2002 and through June 30, | 22 | | 2016, tangible personal property purchased
from an | 23 | | Illinois retailer by a taxpayer engaged in centralized | 24 | | purchasing
activities in Illinois who will, upon receipt of | 25 | | the property in Illinois,
temporarily store the property in | 26 | | Illinois (i) for the purpose of subsequently
transporting |
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| 1 | | it outside this State for use or consumption thereafter | 2 | | solely
outside this State or (ii) for the purpose of being | 3 | | processed, fabricated, or
manufactured into, attached to, | 4 | | or incorporated into other tangible personal
property to be | 5 | | transported outside this State and thereafter used or | 6 | | consumed
solely outside this State. The Director of Revenue | 7 | | shall, pursuant to rules
adopted in accordance with the | 8 | | Illinois Administrative Procedure Act, issue a
permit to | 9 | | any taxpayer in good standing with the Department who is | 10 | | eligible for
the exemption under this paragraph (38). The | 11 | | permit issued under
this paragraph (38) shall authorize the | 12 | | holder, to the extent and
in the manner specified in the | 13 | | rules adopted under this Act, to purchase
tangible personal | 14 | | property from a retailer exempt from the taxes imposed by
| 15 | | this Act. Taxpayers shall maintain all necessary books and | 16 | | records to
substantiate the use and consumption of all such | 17 | | tangible personal property
outside of the State of | 18 | | Illinois.
| 19 | | (39) Beginning January 1, 2008, tangible personal | 20 | | property used in the construction or maintenance of a | 21 | | community water supply, as defined under Section 3.145 of | 22 | | the Environmental Protection Act, that is operated by a | 23 | | not-for-profit corporation that holds a valid water supply | 24 | | permit issued under Title IV of the Environmental | 25 | | Protection Act. This paragraph is exempt from the | 26 | | provisions of Section 2-70.
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| 1 | | (40) Beginning January 1, 2010, materials, parts, | 2 | | equipment, components, and furnishings incorporated into | 3 | | or upon an aircraft as part of the modification, | 4 | | refurbishment, completion, replacement, repair, or | 5 | | maintenance of the aircraft. This exemption includes | 6 | | consumable supplies used in the modification, | 7 | | refurbishment, completion, replacement, repair, and | 8 | | maintenance of aircraft, but excludes any materials, | 9 | | parts, equipment, components, and consumable supplies used | 10 | | in the modification, replacement, repair, and maintenance | 11 | | of aircraft engines or power plants, whether such engines | 12 | | or power plants are installed or uninstalled upon any such | 13 | | aircraft. "Consumable supplies" include, but are not | 14 | | limited to, adhesive, tape, sandpaper, general purpose | 15 | | lubricants, cleaning solution, latex gloves, and | 16 | | protective films. This exemption applies only to the sale | 17 | | of qualifying tangible personal property to persons who | 18 | | modify, refurbish, complete, replace, or maintain an | 19 | | aircraft and who (i) hold an Air Agency Certificate and are | 20 | | empowered to operate an approved repair station by the | 21 | | Federal Aviation Administration, (ii) have a Class IV | 22 | | Rating, and (iii) conduct operations in accordance with | 23 | | Part 145 of the Federal Aviation Regulations. The exemption | 24 | | does not include aircraft operated by a commercial air | 25 | | carrier providing scheduled passenger air service pursuant | 26 | | to authority issued under Part 121 or Part 129 of the |
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| 1 | | Federal Aviation Regulations. The changes made to this | 2 | | paragraph (40) by Public Act 98-534 are declarative of | 3 | | existing law. | 4 | | (41) Tangible personal property sold to a | 5 | | public-facilities corporation, as described in Section | 6 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 7 | | constructing or furnishing a municipal convention hall, | 8 | | but only if the legal title to the municipal convention | 9 | | hall is transferred to the municipality without any further | 10 | | consideration by or on behalf of the municipality at the | 11 | | time of the completion of the municipal convention hall or | 12 | | upon the retirement or redemption of any bonds or other | 13 | | debt instruments issued by the public-facilities | 14 | | corporation in connection with the development of the | 15 | | municipal convention hall. This exemption includes | 16 | | existing public-facilities corporations as provided in | 17 | | Section 11-65-25 of the Illinois Municipal Code. This | 18 | | paragraph is exempt from the provisions of Section 2-70. | 19 | | (42) Beginning January 1, 2017, menstrual pads, | 20 | | tampons, and menstrual cups. | 21 | | (43) Merchandise that is subject to the Rental Purchase | 22 | | Agreement Occupation and Use Tax. The purchaser must | 23 | | certify that the item is purchased to be rented subject to | 24 | | a rental purchase agreement, as defined in the Rental | 25 | | Purchase Agreement Act, and provide proof of registration | 26 | | under the Rental Purchase Agreement Occupation and Use Tax |
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| 1 | | Act. This paragraph is exempt from the provisions of | 2 | | Section 2-70. | 3 | | (44) Agricultural goods purchased at a farmer's | 4 | | market. This paragraph is exempt from the provisions of | 5 | | Section 2-70. | 6 | | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | 7 | | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | 8 | | 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18; | 9 | | 100-1171, eff. 1-4-19; revised 1-8-19.)
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