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90_HB0521
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. Provides that horticultural polyhouses or hoop houses
used for propagating, growing, or overwintering plants shall
be considered farm machinery and equipment for exemption
purposes. Exempts the provisions from the sunset provisions
of the Acts.
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1 AN ACT regarding farm machinery, 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
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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
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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. Horticultural polyhouses or hoop
12 houses used for propagating, growing, or overwintering plants
13 shall be considered farm machinery and equipment under this
14 paragraph. This amendatory Act of 1997 is exempt from the
15 provisions of Section 3-90.
16 (12) Fuel and petroleum products sold to or used by an
17 air common carrier, certified by the carrier to be used for
18 consumption, shipment, or storage in the conduct of its
19 business as an air common carrier, for a flight destined for
20 or returning from a location or locations outside the United
21 States without regard to previous or subsequent domestic
22 stopovers.
23 (13) Proceeds of mandatory service charges separately
24 stated on customers' bills for the purchase and consumption
25 of food and beverages purchased at retail from a retailer, to
26 the extent that the proceeds of the service charge are in
27 fact turned over as tips or as a substitute for tips to the
28 employees who participate directly in preparing, serving,
29 hosting or cleaning up the food or beverage function with
30 respect to which the service charge is imposed.
31 (14) Oil field exploration, drilling, and production
32 equipment, including (i) rigs and parts of rigs, rotary rigs,
33 cable tool rigs, and workover rigs, (ii) pipe and tubular
34 goods, including casing and drill strings, (iii) pumps and
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1 pump-jack units, (iv) storage tanks and flow lines, (v) any
2 individual replacement part for oil field exploration,
3 drilling, and production equipment, and (vi) machinery and
4 equipment purchased for lease; but excluding motor vehicles
5 required to be registered under the Illinois Vehicle Code.
6 (15) Photoprocessing machinery and equipment, including
7 repair and replacement parts, both new and used, including
8 that manufactured on special order, certified by the
9 purchaser to be used primarily for photoprocessing, and
10 including photoprocessing machinery and equipment purchased
11 for lease.
12 (16) Coal exploration, mining, offhighway hauling,
13 processing, maintenance, and reclamation equipment, including
14 replacement parts and equipment, and including equipment
15 purchased for lease, but excluding motor vehicles required to
16 be registered under the Illinois Vehicle Code.
17 (17) Distillation machinery and equipment, sold as a
18 unit or kit, assembled or installed by the retailer,
19 certified by the user to be used only for the production of
20 ethyl alcohol that will be used for consumption as motor fuel
21 or as a component of motor fuel for the personal use of the
22 user, and not subject to sale or resale.
23 (18) Manufacturing and assembling machinery and
24 equipment used primarily in the process of manufacturing or
25 assembling tangible personal property for wholesale or retail
26 sale or lease, whether that sale or lease is made directly by
27 the manufacturer or by some other person, whether the
28 materials used in the process are owned by the manufacturer
29 or some other person, or whether that sale or lease is made
30 apart from or as an incident to the seller's engaging in the
31 service occupation of producing machines, tools, dies, jigs,
32 patterns, gauges, or other similar items of no commercial
33 value on special order for a particular purchaser.
34 (19) Personal property delivered to a purchaser or
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1 purchaser's donee inside Illinois when the purchase order for
2 that personal property was received by a florist located
3 outside Illinois who has a florist located inside Illinois
4 deliver the personal property.
5 (20) Semen used for artificial insemination of livestock
6 for direct agricultural production.
7 (21) Horses, or interests in horses, registered with and
8 meeting the requirements of any of the Arabian Horse Club
9 Registry of America, Appaloosa Horse Club, American Quarter
10 Horse Association, United States Trotting Association, or
11 Jockey Club, as appropriate, used for purposes of breeding or
12 racing for prizes.
13 (22) Computers and communications equipment utilized
14 for any hospital purpose and equipment used in the diagnosis,
15 analysis, or treatment of hospital patients purchased by a
16 lessor who leases the equipment, under a lease of one year or
17 longer executed or in effect at the time the lessor would
18 otherwise be subject to the tax imposed by this Act, to a
19 hospital that has been issued an active tax exemption
20 identification number by the Department under Section 1g of
21 the Retailers' Occupation Tax Act. If the equipment is
22 leased in a manner that does not qualify for this exemption
23 or is used in any other non-exempt manner, the lessor shall
24 be liable for the tax imposed under this Act or the Service
25 Use Tax Act, as the case may be, based on the fair market
26 value of the property at the time the non-qualifying use
27 occurs. No lessor shall collect or attempt to collect an
28 amount (however designated) that purports to reimburse that
29 lessor for the tax imposed by this Act or the Service Use Tax
30 Act, as the case may be, if the tax has not been paid by the
31 lessor. If a lessor improperly collects any such amount from
32 the lessee, the lessee shall have a legal right to claim a
33 refund of that amount from the lessor. If, however, that
34 amount is not refunded to the lessee for any reason, the
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1 lessor is liable to pay that amount to the Department.
2 (23) Personal property purchased by a lessor who leases
3 the property, under a lease of one year or longer executed
4 or in effect at the time the lessor would otherwise be
5 subject to the tax imposed by this Act, to a governmental
6 body that has been issued an active sales tax exemption
7 identification number by the Department under Section 1g of
8 the Retailers' Occupation Tax Act. If the property is leased
9 in a manner that does not qualify for this exemption or used
10 in any other non-exempt manner, the lessor shall be liable
11 for the tax imposed under this Act or the Service Use Tax
12 Act, as the case may be, based on the fair market value of
13 the property at the time the non-qualifying use occurs. No
14 lessor shall collect or attempt to collect an amount (however
15 designated) that purports to reimburse that lessor for the
16 tax imposed by this Act or the Service Use Tax Act, as the
17 case may be, if the tax has not been paid by the lessor. If
18 a lessor improperly collects any such amount from the lessee,
19 the lessee shall have a legal right to claim a refund of that
20 amount from the lessor. If, however, that amount is not
21 refunded to the lessee for any reason, the lessor is liable
22 to pay that amount to the Department.
23 (24) 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 donated
26 for disaster relief to be used in a State or federally
27 declared disaster area in Illinois or bordering Illinois by a
28 manufacturer or retailer that is registered in this State to
29 a corporation, society, association, foundation, or
30 institution that has been issued a sales tax exemption
31 identification number by the Department that assists victims
32 of the disaster who reside within the declared disaster area.
33 (25) Beginning with taxable years ending on or after
34 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
2 the performance of infrastructure repairs in this State,
3 including but not limited to municipal roads and streets,
4 access roads, bridges, sidewalks, waste disposal systems,
5 water and sewer line extensions, water distribution and
6 purification facilities, storm water drainage and retention
7 facilities, and sewage treatment facilities, resulting from a
8 State or federally declared disaster in Illinois or bordering
9 Illinois when such repairs are initiated on facilities
10 located in the declared disaster area within 6 months after
11 the disaster.
12 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
13 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
14 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
15 eff. 8-9-96; revised 8-21-96.)
16 Section 10. The Service Use Tax Act is amended by
17 changing Section 3-5 as follows:
18 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
19 Sec. 3-5. Exemptions. Use of the following tangible
20 personal property is exempt from the tax imposed by this Act:
21 (1) Personal property purchased from a corporation,
22 society, association, foundation, institution, or
23 organization, other than a limited liability company, that is
24 organized and operated as a not-for-profit service enterprise
25 for the benefit of persons 65 years of age or older if the
26 personal property was not purchased by the enterprise for the
27 purpose of resale by the enterprise.
28 (2) Personal property purchased by a non-profit Illinois
29 county fair association for use in conducting, operating, or
30 promoting the county fair.
31 (3) Personal property purchased by a not-for-profit
32 music or dramatic arts organization that establishes, by
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1 proof required by the Department by rule, that it has
2 received an exemption under Section 501(c)(3) of the Internal
3 Revenue Code and that is organized and operated for the
4 presentation of live public performances of musical or
5 theatrical works on a regular basis.
6 (4) Legal tender, currency, medallions, or gold or
7 silver coinage issued by the State of Illinois, the
8 government of the United States of America, or the government
9 of any foreign country, and bullion.
10 (5) Graphic arts machinery and equipment, including
11 repair and replacement parts, both new and used, and
12 including that manufactured on special order or purchased for
13 lease, certified by the purchaser to be used primarily for
14 graphic arts production.
15 (6) Personal property purchased from a teacher-sponsored
16 student organization affiliated with an elementary or
17 secondary school located in Illinois.
18 (7) Farm machinery and equipment, both new and used,
19 including that manufactured on special order, certified by
20 the purchaser to be used primarily for production agriculture
21 or State or federal agricultural programs, including
22 individual replacement parts for the machinery and equipment,
23 and including machinery and equipment purchased for lease,
24 but excluding motor vehicles required to be registered under
25 the Illinois Vehicle Code. Horticultural polyhouses or hoop
26 houses used for propagating, growing, or overwintering plants
27 shall be considered farm machinery and equipment under this
28 paragraph. This amendatory Act of 1997 is exempt from the
29 provisions of Section 3-75.
30 (8) Fuel and petroleum products sold to or used by an
31 air common carrier, certified by the carrier to be used for
32 consumption, shipment, or storage in the conduct of its
33 business as an air common carrier, for a flight destined for
34 or returning from a location or locations outside the United
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1 States without regard to previous or subsequent domestic
2 stopovers.
3 (9) Proceeds of mandatory service charges separately
4 stated on customers' bills for the purchase and consumption
5 of food and beverages acquired as an incident to the purchase
6 of a service from a serviceman, to the extent that the
7 proceeds of the service charge are in fact turned over as
8 tips or as a substitute for tips to the employees who
9 participate directly in preparing, serving, hosting or
10 cleaning up the food or beverage function with respect to
11 which the service charge is imposed.
12 (10) Oil field exploration, drilling, and production
13 equipment, including (i) rigs and parts of rigs, rotary rigs,
14 cable tool rigs, and workover rigs, (ii) pipe and tubular
15 goods, including casing and drill strings, (iii) pumps and
16 pump-jack units, (iv) storage tanks and flow lines, (v) any
17 individual replacement part for oil field exploration,
18 drilling, and production equipment, and (vi) machinery and
19 equipment purchased for lease; but excluding motor vehicles
20 required to be registered under the Illinois Vehicle Code.
21 (11) Proceeds from the sale of photoprocessing machinery
22 and equipment, including repair and replacement parts, both
23 new and used, including that manufactured on special order,
24 certified by the purchaser to be used primarily for
25 photoprocessing, and including photoprocessing machinery and
26 equipment purchased for lease.
27 (12) Coal exploration, mining, offhighway hauling,
28 processing, maintenance, and reclamation equipment, including
29 replacement parts and equipment, and including equipment
30 purchased for lease, but excluding motor vehicles required to
31 be registered under the Illinois Vehicle Code.
32 (13) Semen used for artificial insemination of livestock
33 for direct agricultural production.
34 (14) Horses, or interests in horses, registered with and
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1 meeting the requirements of any of the Arabian Horse Club
2 Registry of America, Appaloosa Horse Club, American Quarter
3 Horse Association, United States Trotting Association, or
4 Jockey Club, as appropriate, used for purposes of breeding or
5 racing for prizes.
6 (15) Computers and communications equipment utilized for
7 any hospital purpose and equipment used in the diagnosis,
8 analysis, or treatment of hospital patients purchased by a
9 lessor who leases the equipment, under a lease of one year or
10 longer executed or in effect at the time the lessor would
11 otherwise be subject to the tax imposed by this Act, to a
12 hospital that has been issued an active tax exemption
13 identification number by the Department under Section 1g of
14 the Retailers' Occupation Tax Act. If the equipment is leased
15 in a manner that does not qualify for this exemption or is
16 used in any other non-exempt manner, the lessor shall be
17 liable for the tax imposed under this Act or the Use Tax Act,
18 as the case may be, based on the fair market value of the
19 property at the time the non-qualifying use occurs. No
20 lessor shall collect or attempt to collect an amount (however
21 designated) that purports to reimburse that lessor for the
22 tax imposed by this Act or the Use Tax Act, as the case may
23 be, if the tax has not been paid by the lessor. If a lessor
24 improperly collects any such amount from the lessee, the
25 lessee shall have a legal right to claim a refund of that
26 amount from the lessor. If, however, that amount is not
27 refunded to the lessee for any reason, the lessor is liable
28 to pay that amount to the Department.
29 (16) Personal property purchased by a lessor who leases
30 the property, under a lease of one year or longer executed or
31 in effect at the time the lessor would otherwise be subject
32 to the tax imposed by this Act, to a governmental body that
33 has been issued an active tax exemption identification number
34 by the Department under Section 1g of the Retailers'
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1 Occupation Tax Act. If the property is leased in a manner
2 that does not qualify for this exemption or is used in any
3 other non-exempt manner, the lessor shall be liable for the
4 tax imposed under this Act or the Use Tax Act, as the case
5 may be, based on the fair market value of the property at the
6 time the non-qualifying use occurs. No lessor shall collect
7 or attempt to collect an amount (however designated) that
8 purports to reimburse that lessor for the tax imposed by this
9 Act or the Use Tax Act, as the case may be, if the tax has
10 not been paid by the lessor. If a lessor improperly collects
11 any such amount from the lessee, the lessee shall have a
12 legal right to claim a refund of that amount from the lessor.
13 If, however, that amount is not refunded to the lessee for
14 any reason, the lessor is liable to pay that amount to the
15 Department.
16 (17) 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 (18) 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
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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 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
6 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
7 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
8 eff. 8-9-96; revised 8-21-96.)
9 Section 15. The Service Occupation Tax Act is amended by
10 changing Section 3-5 as follows:
11 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
12 Sec. 3-5. Exemptions. The following tangible personal
13 property is exempt from the tax imposed by this Act:
14 (1) Personal property sold by a corporation, society,
15 association, foundation, institution, or organization, other
16 than a limited liability company, that is organized and
17 operated as a not-for-profit service enterprise for the
18 benefit of persons 65 years of age or older if the personal
19 property was not purchased by the enterprise for the purpose
20 of resale by the enterprise.
21 (2) Personal property purchased by a not-for-profit
22 Illinois county fair association for use in conducting,
23 operating, or promoting the county fair.
24 (3) Personal property purchased by any not-for-profit
25 music or dramatic arts organization that establishes, by
26 proof required by the Department by rule, that it has
27 received an exemption under Section 501(c)(3) of the
28 Internal Revenue Code and that is organized and operated for
29 the presentation of live public performances of musical or
30 theatrical works on a regular basis.
31 (4) Legal tender, currency, medallions, or gold or
32 silver coinage issued by the State of Illinois, the
33 government of the United States of America, or the government
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1 of any foreign country, and bullion.
2 (5) Graphic arts machinery and equipment, including
3 repair and replacement parts, both new and used, and
4 including that manufactured on special order or purchased for
5 lease, certified by the purchaser to be used primarily for
6 graphic arts production.
7 (6) Personal property sold by a teacher-sponsored
8 student organization affiliated with an elementary or
9 secondary school located in Illinois.
10 (7) 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 agriculture
13 or State or federal agricultural programs, including
14 individual replacement parts for the machinery and equipment,
15 and including machinery and equipment purchased for lease,
16 but excluding motor vehicles required to be registered under
17 the Illinois Vehicle Code. Horticultural polyhouses or hoop
18 houses used for propagating, growing, or overwintering plants
19 shall be considered farm machinery and equipment under this
20 paragraph. This amendatory Act of 1997 is exempt from the
21 provisions of Section 3-55.
22 (8) Fuel and petroleum products sold to or used by an
23 air common carrier, certified by the carrier to be used for
24 consumption, shipment, or storage in the conduct of its
25 business as an air common carrier, for a flight destined for
26 or returning from a location or locations outside the United
27 States without regard to previous or subsequent domestic
28 stopovers.
29 (9) Proceeds of mandatory service charges separately
30 stated on customers' bills for the purchase and consumption
31 of food and beverages, to the extent that the proceeds of the
32 service charge are in fact turned over as tips or as a
33 substitute for tips to the employees who participate directly
34 in preparing, serving, hosting or cleaning up the food or
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1 beverage function with respect to which the service charge is
2 imposed.
3 (10) Oil field exploration, drilling, and production
4 equipment, including (i) rigs and parts of rigs, rotary rigs,
5 cable tool rigs, and workover rigs, (ii) pipe and tubular
6 goods, including casing and drill strings, (iii) pumps and
7 pump-jack units, (iv) storage tanks and flow lines, (v) any
8 individual replacement part for oil field exploration,
9 drilling, and production equipment, and (vi) machinery and
10 equipment purchased for lease; but excluding motor vehicles
11 required to be registered under the Illinois Vehicle Code.
12 (11) Photoprocessing machinery and equipment, including
13 repair and replacement parts, both new and used, including
14 that manufactured on special order, certified by the
15 purchaser to be used primarily for photoprocessing, and
16 including photoprocessing machinery and equipment purchased
17 for lease.
18 (12) Coal exploration, mining, offhighway hauling,
19 processing, maintenance, and reclamation equipment, including
20 replacement parts and equipment, and including equipment
21 purchased for lease, but excluding motor vehicles required to
22 be registered under the Illinois Vehicle Code.
23 (13) Food for human consumption that is to be consumed
24 off the premises where it is sold (other than alcoholic
25 beverages, soft drinks and food that has been prepared for
26 immediate consumption) and prescription and nonprescription
27 medicines, drugs, medical appliances, and insulin, urine
28 testing materials, syringes, and needles used by diabetics,
29 for human use, when purchased for use by a person receiving
30 medical assistance under Article 5 of the Illinois Public Aid
31 Code who resides in a licensed long-term care facility, as
32 defined in the Nursing Home Care Act.
33 (14) Semen used for artificial insemination of livestock
34 for direct agricultural production.
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1 (15) Horses, or interests in horses, registered with and
2 meeting the requirements of any of the Arabian Horse Club
3 Registry of America, Appaloosa Horse Club, American Quarter
4 Horse Association, United States Trotting Association, or
5 Jockey Club, as appropriate, used for purposes of breeding or
6 racing for prizes.
7 (16) 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
14 the Retailers' Occupation Tax Act.
15 (17) Personal property sold to a lessor who leases the
16 property, under a lease of one year or longer executed or in
17 effect at the time of the purchase, to a governmental body
18 that has been issued an active tax exemption identification
19 number by the Department under Section 1g of the Retailers'
20 Occupation Tax Act.
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 donated
24 for disaster relief to be used in a State or federally
25 declared disaster area in Illinois or bordering Illinois by a
26 manufacturer or retailer that is registered in this State to
27 a corporation, society, association, foundation, or
28 institution that has been issued a sales tax exemption
29 identification number by the Department that assists victims
30 of the disaster who reside within the declared disaster area.
31 (19) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is used in
34 the performance of infrastructure repairs in this State,
-16- LRB9001534DNmbA
1 including but not limited to municipal roads and streets,
2 access roads, bridges, sidewalks, waste disposal systems,
3 water and sewer line extensions, water distribution and
4 purification facilities, storm water drainage and retention
5 facilities, and sewage treatment facilities, resulting from a
6 State or federally declared disaster in Illinois or bordering
7 Illinois when such repairs are initiated on facilities
8 located in the declared disaster area within 6 months after
9 the disaster.
10 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
11 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
12 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
13 eff. 8-9-96; revised 8-21-96.)
14 Section 20. The Retailers' Occupation Tax Act is amended
15 by changing Section 2-5 as follows:
16 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
17 Sec. 2-5. Exemptions. Gross receipts from proceeds from
18 the sale of the following tangible personal property are
19 exempt from the tax imposed by this Act:
20 (1) Farm chemicals.
21 (2) Farm machinery and equipment, both new and used,
22 including that manufactured on special order, certified by
23 the purchaser to be used primarily for production agriculture
24 or State or federal agricultural programs, including
25 individual replacement parts for the machinery and equipment,
26 and including machinery and equipment purchased for lease,
27 but excluding motor vehicles required to be registered under
28 the Illinois Vehicle Code. Horticultural polyhouses or hoop
29 houses used for propagating, growing, or overwintering plants
30 shall be considered farm machinery and equipment under this
31 paragraph. This amendatory Act of 1997 is exempt from the
32 provisions of Section 2-70.
-17- LRB9001534DNmbA
1 (3) Distillation machinery and equipment, sold as a unit
2 or kit, assembled or installed by the retailer, certified by
3 the user to be used only for the production of ethyl alcohol
4 that will be used for consumption as motor fuel or as a
5 component of motor fuel for the personal use of the user, and
6 not subject to sale or resale.
7 (4) Graphic arts machinery and equipment, including
8 repair and replacement parts, both new and used, and
9 including that manufactured on special order or purchased for
10 lease, certified by the purchaser to be used primarily for
11 graphic arts production.
12 (5) A motor vehicle of the first division, a motor
13 vehicle of the second division that is a self-contained motor
14 vehicle designed or permanently converted to provide living
15 quarters for recreational, camping, or travel use, with
16 direct walk through access to the living quarters from the
17 driver's seat, or a motor vehicle of the second division that
18 is of the van configuration designed for the transportation
19 of not less than 7 nor more than 16 passengers, as defined in
20 Section 1-146 of the Illinois Vehicle Code, that is used for
21 automobile renting, as defined in the Automobile Renting
22 Occupation and Use Tax Act.
23 (6) Personal property sold by a teacher-sponsored
24 student organization affiliated with an elementary or
25 secondary school located in Illinois.
26 (7) Proceeds of that portion of the selling price of a
27 passenger car the sale of which is subject to the Replacement
28 Vehicle Tax.
29 (8) Personal property sold to an Illinois county fair
30 association for use in conducting, operating, or promoting
31 the county fair.
32 (9) Personal property sold to a not-for-profit music or
33 dramatic arts organization that establishes, by proof
34 required by the Department by rule, that it has received an
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1 exemption under Section 501(c) (3) of the Internal Revenue
2 Code and that is organized and operated for the presentation
3 of live public performances of musical or theatrical works on
4 a regular basis.
5 (10) Personal property sold by a corporation, society,
6 association, foundation, institution, or organization, other
7 than a limited liability company, that is organized and
8 operated as a not-for-profit service enterprise for the
9 benefit of persons 65 years of age or older if the personal
10 property was not purchased by the enterprise for the purpose
11 of resale by the enterprise.
12 (11) Personal property sold to a governmental body, to a
13 corporation, society, association, foundation, or institution
14 organized and operated exclusively for charitable, religious,
15 or educational purposes, or to a not-for-profit corporation,
16 society, association, foundation, institution, or
17 organization that has no compensated officers or employees
18 and that is organized and operated primarily for the
19 recreation of persons 55 years of age or older. A limited
20 liability company may qualify for the exemption under this
21 paragraph only if the limited liability company is organized
22 and operated exclusively for educational purposes. On and
23 after July 1, 1987, however, no entity otherwise eligible for
24 this exemption shall make tax-free purchases unless it has an
25 active identification number issued by the Department.
26 (12) Personal property sold to interstate carriers for
27 hire for use as rolling stock moving in interstate commerce
28 or to lessors under leases of one year or longer executed or
29 in effect at the time of purchase by interstate carriers for
30 hire for use as rolling stock moving in interstate commerce
31 and equipment operated by a telecommunications provider,
32 licensed as a common carrier by the Federal Communications
33 Commission, which is permanently installed in or affixed to
34 aircraft moving in interstate commerce.
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1 (13) Proceeds from sales to owners, lessors, or shippers
2 of tangible personal property that is utilized by interstate
3 carriers for hire for use as rolling stock moving in
4 interstate commerce and equipment operated by a
5 telecommunications provider, licensed as a common carrier by
6 the Federal Communications Commission, which is permanently
7 installed in or affixed to aircraft moving in interstate
8 commerce.
9 (14) Machinery and equipment that will be used by the
10 purchaser, or a lessee of the purchaser, primarily in the
11 process of manufacturing or assembling tangible personal
12 property for wholesale or retail sale or lease, whether the
13 sale or lease is made directly by the manufacturer or by some
14 other person, whether the materials used in the process are
15 owned by the manufacturer or some other person, or whether
16 the sale or lease is made apart from or as an incident to the
17 seller's engaging in the service occupation of producing
18 machines, tools, dies, jigs, patterns, gauges, or other
19 similar items of no commercial value on special order for a
20 particular purchaser.
21 (15) Proceeds of mandatory service charges separately
22 stated on customers' bills for purchase and consumption of
23 food and beverages, to the extent that the proceeds of the
24 service charge are in fact turned over as tips or as a
25 substitute for tips to the employees who participate directly
26 in preparing, serving, hosting or cleaning up the food or
27 beverage function with respect to which the service charge is
28 imposed.
29 (16) Petroleum products sold to a purchaser if the
30 seller is prohibited by federal law from charging tax to the
31 purchaser.
32 (17) Tangible personal property sold to a common carrier
33 by rail that receives the physical possession of the property
34 in Illinois and that transports the property, or shares with
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1 another common carrier in the transportation of the property,
2 out of Illinois on a standard uniform bill of lading showing
3 the seller of the property as the shipper or consignor of the
4 property to a destination outside Illinois, for use outside
5 Illinois.
6 (18) Legal tender, currency, medallions, or gold or
7 silver coinage issued by the State of Illinois, the
8 government of the United States of America, or the government
9 of any foreign country, and bullion.
10 (19) Oil field exploration, drilling, and production
11 equipment, including (i) rigs and parts of rigs, rotary rigs,
12 cable tool rigs, and workover rigs, (ii) pipe and tubular
13 goods, including casing and drill strings, (iii) pumps and
14 pump-jack units, (iv) storage tanks and flow lines, (v) any
15 individual replacement part for oil field exploration,
16 drilling, and production equipment, and (vi) machinery and
17 equipment purchased for lease; but excluding motor vehicles
18 required to be registered under the Illinois Vehicle Code.
19 (20) Photoprocessing machinery and equipment, including
20 repair and replacement parts, both new and used, including
21 that manufactured on special order, certified by the
22 purchaser to be used primarily for photoprocessing, and
23 including photoprocessing machinery and equipment purchased
24 for lease.
25 (21) Coal exploration, mining, offhighway hauling,
26 processing, maintenance, and reclamation equipment, including
27 replacement parts and equipment, and including equipment
28 purchased for lease, but excluding motor vehicles required to
29 be registered under the Illinois Vehicle Code.
30 (22) Fuel and petroleum products sold to or used by an
31 air carrier, certified by the carrier to be used for
32 consumption, shipment, or storage in the conduct of its
33 business as an air common carrier, for a flight destined for
34 or returning from a location or locations outside the United
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1 States without regard to previous or subsequent domestic
2 stopovers.
3 (23) A transaction in which the purchase order is
4 received by a florist who is located outside Illinois, but
5 who has a florist located in Illinois deliver the property to
6 the purchaser or the purchaser's donee in Illinois.
7 (24) Fuel consumed or used in the operation of ships,
8 barges, or vessels that are used primarily in or for the
9 transportation of property or the conveyance of persons for
10 hire on rivers bordering on this State if the fuel is
11 delivered by the seller to the purchaser's barge, ship, or
12 vessel while it is afloat upon that bordering river.
13 (25) A motor vehicle sold in this State to a nonresident
14 even though the motor vehicle is delivered to the nonresident
15 in this State, if the motor vehicle is not to be titled in
16 this State, and if a driveaway decal permit is issued to the
17 motor vehicle as provided in Section 3-603 of the Illinois
18 Vehicle Code or if the nonresident purchaser has vehicle
19 registration plates to transfer to the motor vehicle upon
20 returning to his or her home state. The issuance of the
21 driveaway decal permit or having the out-of-state
22 registration plates to be transferred is prima facie evidence
23 that the motor vehicle will not be titled in this State.
24 (26) Semen used for artificial insemination of livestock
25 for direct agricultural production.
26 (27) Horses, or interests in horses, registered with and
27 meeting the requirements of any of the Arabian Horse Club
28 Registry of America, Appaloosa Horse Club, American Quarter
29 Horse Association, United States Trotting Association, or
30 Jockey Club, as appropriate, used for purposes of breeding or
31 racing for prizes.
32 (28) Computers and communications equipment utilized for
33 any hospital purpose and equipment used in the diagnosis,
34 analysis, or treatment of hospital patients sold to a lessor
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1 who leases the equipment, under a lease of one year or longer
2 executed or in effect at the time of the purchase, to a
3 hospital that has been issued an active tax exemption
4 identification number by the Department under Section 1g of
5 this Act.
6 (29) Personal property sold to a lessor who leases the
7 property, under a lease of one year or longer executed or in
8 effect at the time of the purchase, to a governmental body
9 that has been issued an active tax exemption identification
10 number by the Department under Section 1g of this Act.
11 (30) 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 (31) 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 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
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1 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
2 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
3 eff. 8-9-96; revised 8-21-96.)