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90_HB0309
35 ILCS 105/3-5 from Ch. 120, par. 439.3-5
35 ILCS 110/3-5 from Ch. 120, par. 439.33-5
35 ILCS 115/3-5 from Ch. 120, par. 439.103-5
35 ILCS 120/2-5 from Ch. 120, par. 441-5
Amends the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act to exempt coal from the taxes imposed under those Acts.
Sunsets the exemption after 10 years. Effective immediately.
LRB9001791KDsb
LRB9001791KDsb
1 AN ACT concerning taxes, amending named Acts.
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
5 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
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
20 music or dramatic arts organization that establishes, by
21 proof required by the Department by rule, that it has
22 received an exemption under Section 501(c)(3) of the Internal
23 Revenue Code and that is organized and operated for the
24 presentation of live public performances of musical or
25 theatrical works on a regular basis.
26 (4) Personal property purchased by a governmental body,
27 by a corporation, society, association, foundation, or
28 institution organized and operated exclusively for
29 charitable, religious, or educational purposes, or by a
30 not-for-profit corporation, society, association, foundation,
31 institution, or organization that has no compensated officers
-2- LRB9001791KDsb
1 or employees and that is organized and operated primarily for
2 the recreation of persons 55 years of age or older. A limited
3 liability company may qualify for the exemption under this
4 paragraph only if the limited liability company is organized
5 and operated exclusively for educational purposes. On and
6 after July 1, 1987, however, no entity otherwise eligible for
7 this exemption shall make tax-free purchases unless it has an
8 active exemption identification number issued by the
9 Department.
10 (5) A passenger car that is a replacement vehicle to the
11 extent that the purchase price of the car is subject to the
12 Replacement Vehicle Tax.
13 (6) Graphic arts machinery and equipment, including
14 repair and replacement parts, both new and used, and
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for graphic arts
17 production, and including machinery and equipment purchased
18 for lease.
19 (7) Farm chemicals.
20 (8) Legal tender, currency, medallions, or gold or
21 silver coinage issued by the State of Illinois, the
22 government of the United States of America, or the government
23 of any foreign country, and bullion.
24 (9) Personal property purchased from a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (10) A motor vehicle of the first division, a motor
28 vehicle of the second division that is a self-contained motor
29 vehicle designed or permanently converted to provide living
30 quarters for recreational, camping, or travel use, with
31 direct walk through to the living quarters from the driver's
32 seat, or a motor vehicle of the second division that is of
33 the van configuration designed for the transportation of not
34 less than 7 nor more than 16 passengers, as defined in
-3- LRB9001791KDsb
1 Section 1-146 of the Illinois Vehicle Code, that is used for
2 automobile renting, as defined in the Automobile Renting
3 Occupation and Use Tax Act.
4 (11) Farm machinery and equipment, both new and used,
5 including that manufactured on special order, certified by
6 the purchaser to be used primarily for production agriculture
7 or State or federal agricultural programs, including
8 individual replacement parts for the machinery and equipment,
9 and including machinery and equipment purchased for lease,
10 but excluding motor vehicles required to be registered under
11 the Illinois Vehicle Code.
12 (12) Fuel and petroleum products sold to or used by an
13 air common carrier, certified by the carrier to be used for
14 consumption, shipment, or storage in the conduct of its
15 business as an air common carrier, for a flight destined for
16 or returning from a location or locations outside the United
17 States without regard to previous or subsequent domestic
18 stopovers.
19 (13) Proceeds of mandatory service charges separately
20 stated on customers' bills for the purchase and consumption
21 of food and beverages purchased at retail from a retailer, to
22 the extent that the proceeds of the service charge are in
23 fact turned over as tips or as a substitute for tips to the
24 employees who participate directly in preparing, serving,
25 hosting or cleaning up the food or beverage function with
26 respect to which the service charge is imposed.
27 (14) Oil field exploration, drilling, and production
28 equipment, including (i) rigs and parts of rigs, rotary rigs,
29 cable tool rigs, and workover rigs, (ii) pipe and tubular
30 goods, including casing and drill strings, (iii) pumps and
31 pump-jack units, (iv) storage tanks and flow lines, (v) any
32 individual replacement part for oil field exploration,
33 drilling, and production equipment, and (vi) machinery and
34 equipment purchased for lease; but excluding motor vehicles
-4- LRB9001791KDsb
1 required to be registered under the Illinois Vehicle Code.
2 (15) Photoprocessing machinery and equipment, including
3 repair and replacement parts, both new and used, including
4 that manufactured on special order, certified by the
5 purchaser to be used primarily for photoprocessing, and
6 including photoprocessing machinery and equipment purchased
7 for lease.
8 (16) Coal exploration, mining, offhighway hauling,
9 processing, maintenance, and reclamation equipment, including
10 replacement parts and equipment, and including equipment
11 purchased for lease, but excluding motor vehicles required to
12 be registered under the Illinois Vehicle Code.
13 (17) Distillation machinery and equipment, sold as a
14 unit or kit, assembled or installed by the retailer,
15 certified by the user to be used only for the production of
16 ethyl alcohol that will be used for consumption as motor fuel
17 or as a component of motor fuel for the personal use of the
18 user, and not subject to sale or resale.
19 (18) Manufacturing and assembling machinery and
20 equipment used primarily in the process of manufacturing or
21 assembling tangible personal property for wholesale or retail
22 sale or lease, whether that sale or lease is made directly by
23 the manufacturer or by some other person, whether the
24 materials used in the process are owned by the manufacturer
25 or some other person, or whether that sale or lease is made
26 apart from or as an incident to the seller's engaging in the
27 service occupation of producing machines, tools, dies, jigs,
28 patterns, gauges, or other similar items of no commercial
29 value on special order for a particular purchaser.
30 (19) Personal property delivered to a purchaser or
31 purchaser's donee inside Illinois when the purchase order for
32 that personal property was received by a florist located
33 outside Illinois who has a florist located inside Illinois
34 deliver the personal property.
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1 (20) Semen used for artificial insemination of livestock
2 for direct agricultural production.
3 (21) Horses, or interests in horses, registered with and
4 meeting the requirements of any of the Arabian Horse Club
5 Registry of America, Appaloosa Horse Club, American Quarter
6 Horse Association, United States Trotting Association, or
7 Jockey Club, as appropriate, used for purposes of breeding or
8 racing for prizes.
9 (22) Computers and communications equipment utilized
10 for any hospital purpose and equipment used in the diagnosis,
11 analysis, or treatment of hospital patients purchased by a
12 lessor who leases the equipment, under a lease of one year or
13 longer executed or in effect at the time the lessor would
14 otherwise be subject to the tax imposed by this Act, to a
15 hospital that has been issued an active tax exemption
16 identification number by the Department under Section 1g of
17 the Retailers' Occupation Tax Act. If the equipment is
18 leased in a manner that does not qualify for this exemption
19 or is used in any other non-exempt manner, the lessor shall
20 be liable for the tax imposed under this Act or the Service
21 Use Tax Act, as the case may be, based on the fair market
22 value of the property at the time the non-qualifying use
23 occurs. No lessor shall collect or attempt to collect an
24 amount (however designated) that purports to reimburse that
25 lessor for the tax imposed by this Act or the Service Use Tax
26 Act, as the case may be, if the tax has not been paid by the
27 lessor. If a lessor improperly collects any such amount from
28 the lessee, the lessee shall have a legal right to claim a
29 refund of that amount from the lessor. If, however, that
30 amount is not refunded to the lessee for any reason, the
31 lessor is liable to pay that amount to the Department.
32 (23) Personal property purchased by a lessor who leases
33 the property, under a lease of one year or longer executed
34 or in effect at the time the lessor would otherwise be
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1 subject to the tax imposed by this Act, to a governmental
2 body that has been issued an active sales tax exemption
3 identification number by the Department under Section 1g of
4 the Retailers' Occupation Tax Act. If the property is leased
5 in a manner that does not qualify for this exemption or used
6 in any other non-exempt manner, the lessor shall be liable
7 for the tax imposed under this Act or the Service Use Tax
8 Act, as the case may be, based on the fair market value of
9 the property at the time the non-qualifying use occurs. No
10 lessor shall collect or attempt to collect an amount (however
11 designated) that purports to reimburse that lessor for the
12 tax imposed by this Act or the Service Use Tax Act, as the
13 case may be, if the tax has not been paid by the lessor. If
14 a lessor improperly collects any such amount from the lessee,
15 the lessee shall have a legal right to claim a refund of that
16 amount from the lessor. If, however, that amount is not
17 refunded to the lessee for any reason, the lessor is liable
18 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
22 for disaster relief to be used in a State or federally
23 declared disaster area in Illinois or bordering Illinois by a
24 manufacturer or retailer that is registered in this State to
25 a corporation, society, association, foundation, or
26 institution that has been issued a sales tax exemption
27 identification number by the Department that assists victims
28 of the disaster who reside within the declared disaster area.
29 (25) Beginning with taxable years ending on or after
30 December 31, 1995 and ending with taxable years ending on or
31 before December 31, 2004, personal property that is used in
32 the performance of infrastructure repairs in this State,
33 including but not limited to municipal roads and streets,
34 access roads, bridges, sidewalks, waste disposal systems,
-7- LRB9001791KDsb
1 water and sewer line extensions, water distribution and
2 purification facilities, storm water drainage and retention
3 facilities, and sewage treatment facilities, resulting from a
4 State or federally declared disaster in Illinois or bordering
5 Illinois when such repairs are initiated on facilities
6 located in the declared disaster area within 6 months after
7 the disaster.
8 (26) Beginning with taxable years ending on or after
9 December 31, 1997 and ending with taxable years ending on or
10 before December 31, 2006, coal.
11 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
12 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
13 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
14 eff. 8-9-96; revised 8-21-96.)
15 Section 10. The Service Use Tax Act is amended by
16 changing Section 3-5 as follows:
17 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
18 Sec. 3-5. Exemptions. Use of the following tangible
19 personal property is exempt from the tax imposed by this Act:
20 (1) Personal property purchased from a corporation,
21 society, association, foundation, institution, or
22 organization, other than a limited liability company, that is
23 organized and operated as a not-for-profit service enterprise
24 for the benefit of persons 65 years of age or older if the
25 personal property was not purchased by the enterprise for the
26 purpose of resale by the enterprise.
27 (2) Personal property purchased by a non-profit Illinois
28 county fair association for use in conducting, operating, or
29 promoting the county fair.
30 (3) Personal property purchased by a not-for-profit
31 music or dramatic arts organization that establishes, by
32 proof required by the Department by rule, that it has
-8- LRB9001791KDsb
1 received an exemption under Section 501(c)(3) of the Internal
2 Revenue Code and that is organized and operated for the
3 presentation of live public performances of musical or
4 theatrical works on a regular basis.
5 (4) Legal tender, currency, medallions, or gold or
6 silver coinage issued by the State of Illinois, the
7 government of the United States of America, or the government
8 of any foreign country, and bullion.
9 (5) Graphic arts machinery and equipment, including
10 repair and replacement parts, both new and used, and
11 including that manufactured on special order or purchased for
12 lease, certified by the purchaser to be used primarily for
13 graphic arts production.
14 (6) Personal property purchased from a teacher-sponsored
15 student organization affiliated with an elementary or
16 secondary school located in Illinois.
17 (7) Farm machinery and equipment, both new and used,
18 including that manufactured on special order, certified by
19 the purchaser to be used primarily for production agriculture
20 or State or federal agricultural programs, including
21 individual replacement parts for the machinery and equipment,
22 and including machinery and equipment purchased for lease,
23 but excluding motor vehicles required to be registered under
24 the Illinois Vehicle Code.
25 (8) Fuel and petroleum products sold to or used by an
26 air common carrier, certified by the carrier to be used for
27 consumption, shipment, or storage in the conduct of its
28 business as an air common carrier, for a flight destined for
29 or returning from a location or locations outside the United
30 States without regard to previous or subsequent domestic
31 stopovers.
32 (9) Proceeds of mandatory service charges separately
33 stated on customers' bills for the purchase and consumption
34 of food and beverages acquired as an incident to the purchase
-9- LRB9001791KDsb
1 of a service from a serviceman, to the extent that the
2 proceeds of the service charge are in fact turned over as
3 tips or as a substitute for tips to the employees who
4 participate directly in preparing, serving, hosting or
5 cleaning up the food or beverage function with respect to
6 which the service charge is imposed.
7 (10) Oil field exploration, drilling, and production
8 equipment, including (i) rigs and parts of rigs, rotary rigs,
9 cable tool rigs, and workover rigs, (ii) pipe and tubular
10 goods, including casing and drill strings, (iii) pumps and
11 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
18 new 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) Coal exploration, mining, offhighway hauling,
23 processing, maintenance, and reclamation equipment, including
24 replacement parts and equipment, and including equipment
25 purchased for lease, but excluding motor vehicles required to
26 be registered under the Illinois Vehicle Code.
27 (13) Semen used for artificial insemination of livestock
28 for direct agricultural production.
29 (14) Horses, or interests in horses, registered with and
30 meeting the requirements of any of the Arabian Horse Club
31 Registry of America, Appaloosa Horse Club, American Quarter
32 Horse Association, United States Trotting Association, or
33 Jockey Club, as appropriate, used for purposes of breeding or
34 racing for prizes.
-10- LRB9001791KDsb
1 (15) Computers and communications equipment utilized for
2 any hospital purpose and equipment used in the diagnosis,
3 analysis, or treatment of hospital patients purchased by a
4 lessor who leases the equipment, under a lease of one year or
5 longer executed or in effect at the time the lessor would
6 otherwise be subject to the tax imposed by this Act, to a
7 hospital that has been issued an active tax exemption
8 identification number by the Department under Section 1g of
9 the Retailers' Occupation Tax Act. If the equipment is leased
10 in a manner that does not qualify for this exemption or is
11 used in any other non-exempt manner, the lessor shall be
12 liable for the tax imposed under this Act or the Use Tax Act,
13 as the case may be, based on the fair market value of the
14 property at the time the non-qualifying use occurs. No
15 lessor shall collect or attempt to collect an amount (however
16 designated) that purports to reimburse that lessor for the
17 tax imposed by this Act or the Use Tax Act, as the case may
18 be, if the tax has not been paid by the lessor. If a lessor
19 improperly collects any such amount from the lessee, the
20 lessee shall have a legal right to claim a refund of that
21 amount from the lessor. If, however, that amount is not
22 refunded to the lessee for any reason, the lessor is liable
23 to pay that amount to the Department.
24 (16) Personal property purchased by a lessor who leases
25 the property, under a lease of one year or longer executed or
26 in effect at the time the lessor would otherwise be subject
27 to the tax imposed by this Act, to a governmental body that
28 has been issued an active tax exemption identification number
29 by the Department under Section 1g of the Retailers'
30 Occupation Tax Act. If the property is leased in a manner
31 that does not qualify for this exemption or is used in any
32 other non-exempt manner, the lessor shall be liable for the
33 tax imposed under this Act or the Use Tax Act, as the case
34 may be, based on the fair market value of the property at the
-11- LRB9001791KDsb
1 time the non-qualifying use occurs. No lessor shall collect
2 or attempt to collect an amount (however designated) that
3 purports to reimburse that lessor for the tax imposed by this
4 Act or the Use Tax Act, as the case may be, if the tax has
5 not been paid by the lessor. If a lessor improperly collects
6 any such amount from the lessee, the lessee shall have a
7 legal right to claim a refund of that amount from the lessor.
8 If, however, that amount is not refunded to the lessee for
9 any reason, the lessor is liable to pay that amount to the
10 Department.
11 (17) Beginning with taxable years ending on or after
12 December 31, 1995 and ending with taxable years ending on or
13 before December 31, 2004, personal property that is donated
14 for disaster relief to be used in a State or federally
15 declared disaster area in Illinois or bordering Illinois by a
16 manufacturer or retailer that is registered in this State to
17 a corporation, society, association, foundation, or
18 institution that has been issued a sales tax exemption
19 identification number by the Department that assists victims
20 of the disaster who reside within the declared disaster area.
21 (18) Beginning with taxable years ending on or after
22 December 31, 1995 and ending with taxable years ending on or
23 before December 31, 2004, personal property that is used in
24 the performance of infrastructure repairs in this State,
25 including but not limited to municipal roads and streets,
26 access roads, bridges, sidewalks, waste disposal systems,
27 water and sewer line extensions, water distribution and
28 purification facilities, storm water drainage and retention
29 facilities, and sewage treatment facilities, resulting from a
30 State or federally declared disaster in Illinois or bordering
31 Illinois when such repairs are initiated on facilities
32 located in the declared disaster area within 6 months after
33 the disaster.
34 (19) Beginning with taxable years ending on or after
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1 December 31, 1997 and ending with taxable years ending on or
2 before December 31, 2006, coal.
3 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
4 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
5 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
6 eff. 8-9-96; revised 8-21-96.)
7 Section 15. The Service Occupation Tax Act is amended by
8 changing Section 3-5 as follows:
9 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
10 Sec. 3-5. Exemptions. The following tangible personal
11 property is exempt from the tax imposed by this Act:
12 (1) Personal property sold by a corporation, society,
13 association, foundation, institution, or organization, other
14 than a limited liability company, that is organized and
15 operated as a not-for-profit service enterprise for the
16 benefit of persons 65 years of age or older if the personal
17 property was not purchased by the enterprise for the purpose
18 of resale by the enterprise.
19 (2) Personal property purchased by a not-for-profit
20 Illinois county fair association for use in conducting,
21 operating, or promoting the county fair.
22 (3) Personal property purchased by any not-for-profit
23 music or dramatic arts organization that establishes, by
24 proof required by the Department by rule, that it has
25 received an exemption under Section 501(c)(3) of the
26 Internal Revenue Code and that is organized and operated for
27 the presentation of live public performances of musical or
28 theatrical works on a regular basis.
29 (4) Legal tender, currency, medallions, or gold or
30 silver coinage issued by the State of Illinois, the
31 government of the United States of America, or the government
32 of any foreign country, and bullion.
-13- LRB9001791KDsb
1 (5) Graphic arts machinery and equipment, including
2 repair and replacement parts, both new and used, and
3 including that manufactured on special order or purchased for
4 lease, certified by the purchaser to be used primarily for
5 graphic arts production.
6 (6) Personal property sold by a teacher-sponsored
7 student organization affiliated with an elementary or
8 secondary school located in Illinois.
9 (7) Farm machinery and equipment, both new and used,
10 including that manufactured on special order, certified by
11 the purchaser to be used primarily for production agriculture
12 or State or federal agricultural programs, including
13 individual replacement parts for the machinery and equipment,
14 and including machinery and equipment purchased for lease,
15 but excluding motor vehicles required to be registered under
16 the Illinois Vehicle Code.
17 (8) Fuel and petroleum products sold to or used by an
18 air common carrier, certified by the carrier to be used for
19 consumption, shipment, or storage in the conduct of its
20 business as an air common carrier, for a flight destined for
21 or returning from a location or locations outside the United
22 States without regard to previous or subsequent domestic
23 stopovers.
24 (9) Proceeds of mandatory service charges separately
25 stated on customers' bills for the purchase and consumption
26 of food and beverages, to the extent that the proceeds of the
27 service charge are in fact turned over as tips or as a
28 substitute for tips to the employees who participate directly
29 in preparing, serving, hosting or cleaning up the food or
30 beverage function with respect to which the service charge is
31 imposed.
32 (10) Oil field exploration, drilling, and production
33 equipment, including (i) rigs and parts of rigs, rotary rigs,
34 cable tool rigs, and workover rigs, (ii) pipe and tubular
-14- LRB9001791KDsb
1 goods, including casing and drill strings, (iii) pumps and
2 pump-jack units, (iv) storage tanks and flow lines, (v) any
3 individual replacement part for oil field exploration,
4 drilling, and production equipment, and (vi) machinery and
5 equipment purchased for lease; but excluding motor vehicles
6 required to be registered under the Illinois Vehicle Code.
7 (11) Photoprocessing machinery and equipment, including
8 repair and replacement parts, both new and used, including
9 that manufactured on special order, certified by the
10 purchaser to be used primarily for photoprocessing, and
11 including photoprocessing machinery and equipment purchased
12 for lease.
13 (12) Coal exploration, mining, offhighway hauling,
14 processing, maintenance, and reclamation equipment, including
15 replacement parts and equipment, and including equipment
16 purchased for lease, but excluding motor vehicles required to
17 be registered under the Illinois Vehicle Code.
18 (13) Food for human consumption that is to be consumed
19 off 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 nonprescription
22 medicines, drugs, medical appliances, and insulin, urine
23 testing materials, syringes, and needles used by diabetics,
24 for human use, when purchased for use by a person receiving
25 medical assistance under Article 5 of the Illinois Public Aid
26 Code who resides in a licensed long-term care facility, as
27 defined in the Nursing Home Care Act.
28 (14) Semen used for artificial insemination of livestock
29 for direct agricultural production.
30 (15) Horses, or interests in horses, registered with and
31 meeting the requirements of any of the Arabian Horse Club
32 Registry of America, Appaloosa Horse Club, American Quarter
33 Horse Association, United States Trotting Association, or
34 Jockey Club, as appropriate, used for purposes of breeding or
-15- LRB9001791KDsb
1 racing for prizes.
2 (16) Computers and communications equipment utilized
3 for any hospital purpose and equipment used in the diagnosis,
4 analysis, or treatment of hospital patients sold to a lessor
5 who leases the equipment, under a lease of one year or longer
6 executed or in effect at the time of the purchase, to a
7 hospital that has been issued an active tax exemption
8 identification number by the Department under Section 1g of
9 the Retailers' Occupation Tax Act.
10 (17) Personal property sold to a lessor who leases the
11 property, under a lease of one year or longer executed or in
12 effect at the time of the purchase, to a governmental body
13 that has been issued an active tax exemption identification
14 number by the Department under Section 1g of the Retailers'
15 Occupation Tax Act.
16 (18) Beginning with taxable years ending on or after
17 December 31, 1995 and ending with taxable years ending on or
18 before December 31, 2004, personal property that is donated
19 for disaster relief to be used in a State or federally
20 declared disaster area in Illinois or bordering Illinois by a
21 manufacturer or retailer that is registered in this State to
22 a corporation, society, association, foundation, or
23 institution that has been issued a sales tax exemption
24 identification number by the Department that assists victims
25 of the disaster who reside within the declared disaster area.
26 (19) Beginning with taxable years ending on or after
27 December 31, 1995 and ending with taxable years ending on or
28 before December 31, 2004, personal property that is used in
29 the performance of infrastructure repairs in this State,
30 including but not limited to municipal roads and streets,
31 access roads, bridges, sidewalks, waste disposal systems,
32 water and sewer line extensions, water distribution and
33 purification facilities, storm water drainage and retention
34 facilities, and sewage treatment facilities, resulting from a
-16- LRB9001791KDsb
1 State or federally declared disaster in Illinois or bordering
2 Illinois when such repairs are initiated on facilities
3 located in the declared disaster area within 6 months after
4 the disaster.
5 (20) Beginning with taxable years ending on or after
6 December 31, 1997 and ending with taxable years ending on or
7 before December 31, 2006, coal.
8 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
9 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
10 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
11 eff. 8-9-96; revised 8-21-96.)
12 Section 20. The Retailers' Occupation Tax Act is amended
13 by changing Section 2-5 as follows:
14 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
15 Sec. 2-5. Exemptions. Gross receipts from proceeds from
16 the sale of the following tangible personal property are
17 exempt from the tax imposed by this Act:
18 (1) Farm chemicals.
19 (2) Farm machinery and equipment, both new and used,
20 including that manufactured on special order, certified by
21 the purchaser to be used primarily for production agriculture
22 or State or federal agricultural programs, including
23 individual replacement parts for the machinery and equipment,
24 and including machinery and equipment purchased for lease,
25 but excluding motor vehicles required to be registered under
26 the Illinois Vehicle Code.
27 (3) Distillation machinery and equipment, sold as a unit
28 or kit, assembled or installed by the retailer, certified by
29 the user to be used only for the production of ethyl alcohol
30 that will be used for consumption as motor fuel or as a
31 component of motor fuel for the personal use of the user, and
32 not subject to sale or resale.
-17- LRB9001791KDsb
1 (4) Graphic arts machinery and equipment, including
2 repair and replacement parts, both new and used, and
3 including that manufactured on special order or purchased for
4 lease, certified by the purchaser to be used primarily for
5 graphic arts production.
6 (5) A motor vehicle of the first division, a motor
7 vehicle of the second division that is a self-contained motor
8 vehicle designed or permanently converted to provide living
9 quarters for recreational, camping, or travel use, with
10 direct walk through access to the living quarters from the
11 driver's seat, or a motor vehicle of the second division that
12 is of the van configuration designed for the transportation
13 of not less than 7 nor more than 16 passengers, as defined in
14 Section 1-146 of the Illinois Vehicle Code, that is used for
15 automobile renting, as defined in the Automobile Renting
16 Occupation and Use Tax Act.
17 (6) Personal property sold by a teacher-sponsored
18 student organization affiliated with an elementary or
19 secondary school located in Illinois.
20 (7) Proceeds of that portion of the selling price of a
21 passenger car the sale of which is subject to the Replacement
22 Vehicle Tax.
23 (8) Personal property sold to an Illinois county fair
24 association for use in conducting, operating, or promoting
25 the county fair.
26 (9) Personal property sold to a not-for-profit music or
27 dramatic arts organization that establishes, by proof
28 required by the Department by rule, that it has received an
29 exemption under Section 501(c) (3) of the Internal Revenue
30 Code and that is organized and operated for the presentation
31 of live public performances of musical or theatrical works on
32 a regular basis.
33 (10) Personal property sold by a corporation, society,
34 association, foundation, institution, or organization, other
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1 than a limited liability company, that is organized and
2 operated as a not-for-profit service enterprise for the
3 benefit of persons 65 years of age or older if the personal
4 property was not purchased by the enterprise for the purpose
5 of resale by the enterprise.
6 (11) Personal property sold to a governmental body, to a
7 corporation, society, association, foundation, or institution
8 organized and operated exclusively for charitable, religious,
9 or educational purposes, or to a not-for-profit corporation,
10 society, association, foundation, institution, or
11 organization that has no compensated officers or employees
12 and that is organized and operated primarily for the
13 recreation of persons 55 years of age or older. A limited
14 liability company may qualify for the exemption under this
15 paragraph only if the limited liability company is organized
16 and operated exclusively for educational purposes. On and
17 after July 1, 1987, however, no entity otherwise eligible for
18 this exemption shall make tax-free purchases unless it has an
19 active identification number issued by the Department.
20 (12) Personal property sold to interstate carriers for
21 hire for use as rolling stock moving in interstate commerce
22 or to lessors under leases of one year or longer executed or
23 in effect at the time of purchase by interstate carriers for
24 hire for use as rolling stock moving in interstate commerce
25 and equipment operated by a telecommunications provider,
26 licensed as a common carrier by the Federal Communications
27 Commission, which is permanently installed in or affixed to
28 aircraft moving in interstate commerce.
29 (13) Proceeds from sales to owners, lessors, or shippers
30 of tangible personal property that is utilized by interstate
31 carriers for hire for use as rolling stock moving in
32 interstate commerce and equipment operated by a
33 telecommunications provider, licensed as a common carrier by
34 the Federal Communications Commission, which is permanently
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1 installed in or affixed to aircraft moving in interstate
2 commerce.
3 (14) Machinery and equipment that will be used by the
4 purchaser, or a lessee of the purchaser, primarily in the
5 process of manufacturing or assembling tangible personal
6 property for wholesale or retail sale or lease, whether the
7 sale or lease is made directly by the manufacturer or by some
8 other person, whether the materials used in the process are
9 owned by the manufacturer or some other person, or whether
10 the sale or lease is made apart from or as an incident to the
11 seller's engaging in the service occupation of producing
12 machines, tools, dies, jigs, patterns, gauges, or other
13 similar items of no commercial value on special order for a
14 particular purchaser.
15 (15) Proceeds of mandatory service charges separately
16 stated on customers' bills for purchase and consumption of
17 food and beverages, to the extent that the proceeds of the
18 service charge are in fact turned over as tips or as a
19 substitute for tips to the employees who participate directly
20 in preparing, serving, hosting or cleaning up the food or
21 beverage function with respect to which the service charge is
22 imposed.
23 (16) Petroleum products sold to a purchaser if the
24 seller is prohibited by federal law from charging tax to the
25 purchaser.
26 (17) Tangible personal property sold to a common carrier
27 by rail that receives the physical possession of the property
28 in Illinois and that transports the property, or shares with
29 another common carrier in the transportation of the property,
30 out of Illinois on a standard uniform bill of lading showing
31 the seller of the property as the shipper or consignor of the
32 property to a destination outside Illinois, for use outside
33 Illinois.
34 (18) Legal tender, currency, medallions, or gold or
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1 silver coinage issued by the State of Illinois, the
2 government of the United States of America, or the government
3 of any foreign country, and bullion.
4 (19) Oil field exploration, drilling, and production
5 equipment, including (i) rigs and parts of rigs, rotary rigs,
6 cable tool rigs, and workover rigs, (ii) pipe and tubular
7 goods, including casing and drill strings, (iii) pumps and
8 pump-jack units, (iv) storage tanks and flow lines, (v) any
9 individual replacement part for oil field exploration,
10 drilling, and production equipment, and (vi) machinery and
11 equipment purchased for lease; but excluding motor vehicles
12 required to be registered under the Illinois Vehicle Code.
13 (20) Photoprocessing machinery and equipment, including
14 repair and replacement parts, both new and used, including
15 that manufactured on special order, certified by the
16 purchaser to be used primarily for photoprocessing, and
17 including photoprocessing machinery and equipment purchased
18 for lease.
19 (21) Coal exploration, mining, offhighway hauling,
20 processing, maintenance, and reclamation equipment, including
21 replacement parts and equipment, and including equipment
22 purchased for lease, but excluding motor vehicles required to
23 be registered under the Illinois Vehicle Code.
24 (22) Fuel and petroleum products sold to or used by an
25 air carrier, certified by the carrier to be used for
26 consumption, shipment, or storage in the conduct of its
27 business as an air common carrier, for a flight destined for
28 or returning from a location or locations outside the United
29 States without regard to previous or subsequent domestic
30 stopovers.
31 (23) A transaction in which the purchase order is
32 received by a florist who is located outside Illinois, but
33 who has a florist located in Illinois deliver the property to
34 the purchaser or the purchaser's donee in Illinois.
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1 (24) Fuel consumed or used in the operation of ships,
2 barges, or vessels that are used primarily in or for the
3 transportation of property or the conveyance of persons for
4 hire on rivers bordering on this State if the fuel is
5 delivered by the seller to the purchaser's barge, ship, or
6 vessel while it is afloat upon that bordering river.
7 (25) A motor vehicle sold in this State to a nonresident
8 even though the motor vehicle is delivered to the nonresident
9 in this State, if the motor vehicle is not to be titled in
10 this State, and if a driveaway decal permit is issued to the
11 motor vehicle as provided in Section 3-603 of the Illinois
12 Vehicle Code or if the nonresident purchaser has vehicle
13 registration plates to transfer to the motor vehicle upon
14 returning to his or her home state. The issuance of the
15 driveaway decal permit or having the out-of-state
16 registration plates to be transferred is prima facie evidence
17 that the motor vehicle will not be titled in this State.
18 (26) Semen used for artificial insemination of livestock
19 for direct agricultural production.
20 (27) Horses, or interests in horses, registered with and
21 meeting the requirements of any of the Arabian Horse Club
22 Registry of America, Appaloosa Horse Club, American Quarter
23 Horse Association, United States Trotting Association, or
24 Jockey Club, as appropriate, used for purposes of breeding or
25 racing for prizes.
26 (28) Computers and communications equipment utilized
27 for any hospital purpose and equipment used in the diagnosis,
28 analysis, or treatment of hospital patients sold to a lessor
29 who leases the equipment, under a lease of one year or longer
30 executed or in effect at the time of the purchase, to a
31 hospital that has been issued an active tax exemption
32 identification number by the Department under Section 1g of
33 this Act.
34 (29) Personal property sold to a lessor who leases the
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1 property, under a lease of one year or longer executed or in
2 effect at the time of the purchase, to a governmental body
3 that has been issued an active tax exemption identification
4 number by the Department under Section 1g of this Act.
5 (30) Beginning with taxable years ending on or after
6 December 31, 1995 and ending with taxable years ending on or
7 before December 31, 2004, personal property that is donated
8 for disaster relief to be used in a State or federally
9 declared disaster area in Illinois or bordering Illinois by a
10 manufacturer or retailer that is registered in this State to
11 a corporation, society, association, foundation, or
12 institution that has been issued a sales tax exemption
13 identification number by the Department that assists victims
14 of the disaster who reside within the declared disaster area.
15 (31) Beginning with taxable years ending on or after
16 December 31, 1995 and ending with taxable years ending on or
17 before December 31, 2004, personal property that is used in
18 the performance of infrastructure repairs in this State,
19 including but not limited to municipal roads and streets,
20 access roads, bridges, sidewalks, waste disposal systems,
21 water and sewer line extensions, water distribution and
22 purification facilities, storm water drainage and retention
23 facilities, and sewage treatment facilities, resulting from a
24 State or federally declared disaster in Illinois or bordering
25 Illinois when such repairs are initiated on facilities
26 located in the declared disaster area within 6 months after
27 the disaster.
28 (32) Beginning with taxable years ending on or after
29 December 31, 1997 and ending with taxable years ending on or
30 before December 31, 2006, coal.
31 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
32 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
33 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
34 eff. 8-9-96; revised 8-21-96.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.