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90_HB0581ren
35 ILCS 105/3-95 new
35 ILCS 110/3-80 new
35 ILCS 115/3-60 new
35 ILCS 120/2-75 new
Amends the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act. Exempts aviation fuel received for use or consumption
in the operation of an air cargo transportation hub facility
that meets certain requirements from the taxes imposed by
those Acts for a period of 10 years. Requires the facility to
receive a certificate of eligibility for exemption from the
Department of Commerce and Community Affairs. Requires the
facility to repay exempted taxes if the facility fails to
meet certain requirements. Effective immediately.
LRB9001527DNmbA
HB0581 Re-Enrolled LRB9001527DNmbA
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 3. The Civil Administrative Code of Illinois is
5 amended by changing Section 39b51 as follows:
6 (20 ILCS 2505/39b51)
7 Sec. 39b51. Jobs Impact Committee and report. With
8 respect to the credits provided for by Sections 209 and 210
9 of the Illinois Income Tax Act, Section 3-50 of the Use Tax
10 Act, Section 2 of the Service Use Tax Act, Section 2 of the
11 Service Occupation Tax Act, and Section 2-45 of the
12 Retailers' Occupation Tax Act, there is hereby created a Jobs
13 Impact Committee which shall consist of the Director of the
14 Department of Revenue or such person or persons as he may
15 designate, and such representative or representatives as
16 shall be designated to serve on the Committee by the
17 Department of Commerce and Community Affairs, the Bureau of
18 the Budget, and the Economic and Fiscal Commission. The
19 Committee, so assembled, shall invite and appoint 2 members
20 of the businesses that are eligible for the credits provided
21 by those Sections. The Committee shall study the use and
22 effectiveness of these credits with regard to job creation
23 relative to the revenue loss to the State from the provision
24 of these credits. The Director of the Department of Revenue
25 shall, on behalf of the Committee, submit the Committee's
26 report to the General Assembly on or before June 30, 1998
27 June 30, 1997.
28 (Source: P.A. 88-505.)
29 Section 10. The Use Tax Act is amended by changing
30 Sections 3-5 and 3-55 as follows:
HB0581 Re-Enrolled -2- LRB9001527DNmbA
1 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
2 Sec. 3-5. Exemptions. Use of the following tangible
3 personal property is exempt from the tax imposed by this Act:
4 (1) Personal property purchased from a corporation,
5 society, association, foundation, institution, or
6 organization, other than a limited liability company, that is
7 organized and operated as a not-for-profit service enterprise
8 for the benefit of persons 65 years of age or older if the
9 personal property was not purchased by the enterprise for the
10 purpose of resale by the enterprise.
11 (2) Personal property purchased by a not-for-profit
12 Illinois county fair association for use in conducting,
13 operating, or promoting the county fair.
14 (3) Personal property purchased by a not-for-profit
15 music or dramatic arts organization that establishes, by
16 proof required by the Department by rule, that it has
17 received an exemption under Section 501(c)(3) of the Internal
18 Revenue Code and that is organized and operated for the
19 presentation of live public performances of musical or
20 theatrical works on a regular basis.
21 (4) Personal property purchased by a governmental body,
22 by a corporation, society, association, foundation, or
23 institution organized and operated exclusively for
24 charitable, religious, or educational purposes, or by a
25 not-for-profit corporation, society, association, foundation,
26 institution, or organization that has no compensated officers
27 or employees and that is organized and operated primarily for
28 the recreation of persons 55 years of age or older. A limited
29 liability company may qualify for the exemption under this
30 paragraph only if the limited liability company is organized
31 and operated exclusively for educational purposes. On and
32 after July 1, 1987, however, no entity otherwise eligible for
33 this exemption shall make tax-free purchases unless it has an
34 active exemption identification number issued by the
HB0581 Re-Enrolled -3- LRB9001527DNmbA
1 Department.
2 (5) A passenger car that is a replacement vehicle to the
3 extent that the purchase price of the car is subject to the
4 Replacement Vehicle Tax.
5 (6) Graphic arts machinery and equipment, including
6 repair and replacement parts, both new and used, and
7 including that manufactured on special order, certified by
8 the purchaser to be used primarily for graphic arts
9 production, and including machinery and equipment purchased
10 for lease.
11 (7) Farm chemicals.
12 (8) Legal tender, currency, medallions, or gold or
13 silver coinage issued by the State of Illinois, the
14 government of the United States of America, or the government
15 of any foreign country, and bullion.
16 (9) Personal property purchased from a teacher-sponsored
17 student organization affiliated with an elementary or
18 secondary school located in Illinois.
19 (10) A motor vehicle of the first division, a motor
20 vehicle of the second division that is a self-contained motor
21 vehicle designed or permanently converted to provide living
22 quarters for recreational, camping, or travel use, with
23 direct walk through to the living quarters from the driver's
24 seat, or a motor vehicle of the second division that is of
25 the van configuration designed for the transportation of not
26 less than 7 nor more than 16 passengers, as defined in
27 Section 1-146 of the Illinois Vehicle Code, that is used for
28 automobile renting, as defined in the Automobile Renting
29 Occupation and Use Tax Act.
30 (11) Farm machinery and equipment, both new and used,
31 including that manufactured on special order, certified by
32 the purchaser to be used primarily for production agriculture
33 or State or federal agricultural programs, including
34 individual replacement parts for the machinery and equipment,
HB0581 Re-Enrolled -4- LRB9001527DNmbA
1 and including machinery and equipment purchased for lease,
2 but excluding motor vehicles required to be registered under
3 the Illinois Vehicle Code. Horticultural polyhouses or hoop
4 houses used for propagating, growing, or overwintering plants
5 shall be considered farm machinery and equipment under this
6 paragraph.
7 (12) Fuel and petroleum products sold to or used by an
8 air common carrier, certified by the carrier to be used for
9 consumption, shipment, or storage in the conduct of its
10 business as an air common carrier, for a flight destined for
11 or returning from a location or locations outside the United
12 States without regard to previous or subsequent domestic
13 stopovers.
14 (13) Proceeds of mandatory service charges separately
15 stated on customers' bills for the purchase and consumption
16 of food and beverages purchased at retail from a retailer, to
17 the extent that the proceeds of the service charge are in
18 fact turned over as tips or as a substitute for tips to the
19 employees who participate directly in preparing, serving,
20 hosting or cleaning up the food or beverage function with
21 respect to which the service charge is imposed.
22 (14) Oil field exploration, drilling, and production
23 equipment, including (i) rigs and parts of rigs, rotary rigs,
24 cable tool rigs, and workover rigs, (ii) pipe and tubular
25 goods, including casing and drill strings, (iii) pumps and
26 pump-jack units, (iv) storage tanks and flow lines, (v) any
27 individual replacement part for oil field exploration,
28 drilling, and production equipment, and (vi) machinery and
29 equipment purchased for lease; but excluding motor vehicles
30 required to be registered under the Illinois Vehicle Code.
31 (15) Photoprocessing machinery and equipment, including
32 repair and replacement parts, both new and used, including
33 that manufactured on special order, certified by the
34 purchaser to be used primarily for photoprocessing, and
HB0581 Re-Enrolled -5- LRB9001527DNmbA
1 including photoprocessing machinery and equipment purchased
2 for lease.
3 (16) Coal exploration, mining, offhighway hauling,
4 processing, maintenance, and reclamation equipment, including
5 replacement parts and equipment, and including equipment
6 purchased for lease, but excluding motor vehicles required to
7 be registered under the Illinois Vehicle Code.
8 (17) Distillation machinery and equipment, sold as a
9 unit or kit, assembled or installed by the retailer,
10 certified by the user to be used only for the production of
11 ethyl alcohol that will be used for consumption as motor fuel
12 or as a component of motor fuel for the personal use of the
13 user, and not subject to sale or resale.
14 (18) Manufacturing and assembling machinery and
15 equipment used primarily in the process of manufacturing or
16 assembling tangible personal property for wholesale or retail
17 sale or lease, whether that sale or lease is made directly by
18 the manufacturer or by some other person, whether the
19 materials used in the process are owned by the manufacturer
20 or some other person, or whether that sale or lease is made
21 apart from or as an incident to the seller's engaging in the
22 service occupation of producing machines, tools, dies, jigs,
23 patterns, gauges, or other similar items of no commercial
24 value on special order for a particular purchaser.
25 (19) Personal property delivered to a purchaser or
26 purchaser's donee inside Illinois when the purchase order for
27 that personal property was received by a florist located
28 outside Illinois who has a florist located inside Illinois
29 deliver the personal property.
30 (20) Semen used for artificial insemination of livestock
31 for direct agricultural production.
32 (21) Horses, or interests in horses, registered with and
33 meeting the requirements of any of the Arabian Horse Club
34 Registry of America, Appaloosa Horse Club, American Quarter
HB0581 Re-Enrolled -6- LRB9001527DNmbA
1 Horse Association, United States Trotting Association, or
2 Jockey Club, as appropriate, used for purposes of breeding or
3 racing for prizes.
4 (22) Computers and communications equipment utilized
5 for any hospital purpose and equipment used in the diagnosis,
6 analysis, or treatment of hospital patients purchased by a
7 lessor who leases the equipment, under a lease of one year or
8 longer executed or in effect at the time the lessor would
9 otherwise be subject to the tax imposed by this Act, to a
10 hospital that has been issued an active tax exemption
11 identification number by the Department under Section 1g of
12 the Retailers' Occupation Tax Act. If the equipment is
13 leased in a manner that does not qualify for this exemption
14 or is used in any other non-exempt manner, the lessor shall
15 be liable for the tax imposed under this Act or the Service
16 Use Tax Act, as the case may be, based on the fair market
17 value of the property at the time the non-qualifying use
18 occurs. No lessor shall collect or attempt to collect an
19 amount (however designated) that purports to reimburse that
20 lessor for the tax imposed by this Act or the Service Use Tax
21 Act, as the case may be, if the tax has not been paid by the
22 lessor. If a lessor improperly collects any such amount from
23 the lessee, the lessee shall have a legal right to claim a
24 refund of that amount from the lessor. If, however, that
25 amount is not refunded to the lessee for any reason, the
26 lessor is liable to pay that amount to the Department.
27 (23) Personal property purchased by a lessor who leases
28 the property, under a lease of one year or longer executed
29 or in effect at the time the lessor would otherwise be
30 subject to the tax imposed by this Act, to a governmental
31 body that has been issued an active sales tax exemption
32 identification number by the Department under Section 1g of
33 the Retailers' Occupation Tax Act. If the property is leased
34 in a manner that does not qualify for this exemption or used
HB0581 Re-Enrolled -7- LRB9001527DNmbA
1 in any other non-exempt manner, the lessor shall be liable
2 for the tax imposed under this Act or the Service Use Tax
3 Act, as the case may be, based on the fair market value of
4 the property at the time the non-qualifying use occurs. No
5 lessor shall collect or attempt to collect an amount (however
6 designated) that purports to reimburse that lessor for the
7 tax imposed by this Act or the Service Use Tax Act, as the
8 case may be, if the tax has not been paid by the lessor. If
9 a lessor improperly collects any such amount from the lessee,
10 the lessee shall have a legal right to claim a refund of that
11 amount from the lessor. If, however, that amount is not
12 refunded to the lessee for any reason, the lessor is liable
13 to pay that amount to the Department.
14 (24) Beginning with taxable years ending on or after
15 December 31, 1995 and ending with taxable years ending on or
16 before December 31, 2004, personal property that is donated
17 for disaster relief to be used in a State or federally
18 declared disaster area in Illinois or bordering Illinois by a
19 manufacturer or retailer that is registered in this State to
20 a corporation, society, association, foundation, or
21 institution that has been issued a sales tax exemption
22 identification number by the Department that assists victims
23 of the disaster who reside within the declared disaster area.
24 (25) Beginning with taxable years ending on or after
25 December 31, 1995 and ending with taxable years ending on or
26 before December 31, 2004, personal property that is used in
27 the performance of infrastructure repairs in this State,
28 including but not limited to municipal roads and streets,
29 access roads, bridges, sidewalks, waste disposal systems,
30 water and sewer line extensions, water distribution and
31 purification facilities, storm water drainage and retention
32 facilities, and sewage treatment facilities, resulting from a
33 State or federally declared disaster in Illinois or bordering
34 Illinois when such repairs are initiated on facilities
HB0581 Re-Enrolled -8- LRB9001527DNmbA
1 located in the declared disaster area within 6 months after
2 the disaster.
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 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
8 Sec. 3-55. Multistate exemption. To prevent actual or
9 likely multistate taxation, the tax imposed by this Act does
10 not apply to the use of tangible personal property in this
11 State under the following circumstances:
12 (a) The use, in this State, of tangible personal
13 property acquired outside this State by a nonresident
14 individual and brought into this State by the individual for
15 his or her own use while temporarily within this State or
16 while passing through this State.
17 (b) The use, in this State, of tangible personal
18 property by an interstate carrier for hire as rolling stock
19 moving in interstate commerce or by lessors under a lease of
20 one year or longer executed or in effect at the time of
21 purchase of tangible personal property by interstate carriers
22 for-hire for use as rolling stock moving in interstate
23 commerce as long as so used by the interstate carriers
24 for-hire, and equipment operated by a telecommunications
25 provider, licensed as a common carrier by the Federal
26 Communications Commission, which is permanently installed in
27 or affixed to aircraft moving in interstate commerce.
28 (c) The use, in this State, by owners, lessors, or
29 shippers of tangible personal property that is utilized by
30 interstate carriers for hire for use as rolling stock moving
31 in interstate commerce as long as so used by the interstate
32 carriers for hire, and equipment operated by a
33 telecommunications provider, licensed as a common carrier by
HB0581 Re-Enrolled -9- LRB9001527DNmbA
1 the Federal Communications Commission, which is permanently
2 installed in or affixed to aircraft moving in interstate
3 commerce.
4 (d) The use, in this State, of tangible personal
5 property that is acquired outside this State and caused to be
6 brought into this State by a person who has already paid a
7 tax in another State in respect to the sale, purchase, or use
8 of that property, to the extent of the amount of the tax
9 properly due and paid in the other State.
10 (e) The temporary storage, in this State, of tangible
11 personal property that is acquired outside this State and
12 that, after being brought into this State and stored here
13 temporarily, is used solely outside this State or is
14 physically attached to or incorporated into other tangible
15 personal property that is used solely outside this State, or
16 is altered by converting, fabricating, manufacturing,
17 printing, processing, or shaping, and, as altered, is used
18 solely outside this State.
19 (f) The temporary storage in this State of building
20 materials and fixtures that are acquired either in this State
21 or outside this State by an Illinois registered combination
22 retailer and construction contractor, and that the purchaser
23 thereafter uses outside this State by incorporating that
24 property into real estate located outside this State.
25 (g) The use or purchase of tangible personal property by
26 a common carrier by rail or motor that receives the physical
27 possession of the property in Illinois, and that transports
28 the property, or shares with another common carrier in the
29 transportation of the property, out of Illinois on a standard
30 uniform bill of lading showing the seller of the property as
31 the shipper or consignor of the property to a destination
32 outside Illinois, for use outside Illinois.
33 (h) The use, in this State, of a motor vehicle that was
34 sold in this State to a nonresident, even though the motor
HB0581 Re-Enrolled -10- LRB9001527DNmbA
1 vehicle is delivered to the nonresident in this State, if the
2 motor vehicle is not to be titled in this State, and if a
3 driveaway decal permit is issued to the motor vehicle as
4 provided in Section 3-603 of the Illinois Vehicle Code or if
5 the nonresident purchaser has vehicle registration plates to
6 transfer to the motor vehicle upon returning to his or her
7 home state. The issuance of the driveaway decal permit or
8 having the out-of-state registration plates to be transferred
9 shall be prima facie evidence that the motor vehicle will not
10 be titled in this State.
11 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
12 86-953; 86-1394; 86-1475; 87-1263.)
13 Section 15. The Service Use Tax Act is amended by
14 changing Section 3-5 as follows:
15 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
16 Sec. 3-5. Exemptions. Use of the following tangible
17 personal property is exempt from the tax imposed by this Act:
18 (1) Personal property purchased from a corporation,
19 society, association, foundation, institution, or
20 organization, other than a limited liability company, that is
21 organized and operated as a not-for-profit service enterprise
22 for the benefit of persons 65 years of age or older if the
23 personal property was not purchased by the enterprise for the
24 purpose of resale by the enterprise.
25 (2) Personal property purchased by a non-profit Illinois
26 county fair association for use in conducting, operating, or
27 promoting the county fair.
28 (3) Personal property purchased by a not-for-profit
29 music or dramatic arts organization that establishes, by
30 proof required by the Department by rule, that it has
31 received an exemption under Section 501(c)(3) of the Internal
32 Revenue Code and that is organized and operated for the
HB0581 Re-Enrolled -11- LRB9001527DNmbA
1 presentation of live public performances of musical or
2 theatrical works on a regular basis.
3 (4) Legal tender, currency, medallions, or gold or
4 silver coinage issued by the State of Illinois, the
5 government of the United States of America, or the government
6 of any foreign country, and bullion.
7 (5) 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 (6) Personal property purchased from a teacher-sponsored
13 student organization affiliated with an elementary or
14 secondary school located in Illinois.
15 (7) Farm machinery and equipment, both new and used,
16 including that manufactured on special order, certified by
17 the purchaser to be used primarily for production agriculture
18 or State or federal agricultural programs, including
19 individual replacement parts for the machinery and equipment,
20 and including machinery and equipment purchased for lease,
21 but excluding motor vehicles required to be registered under
22 the Illinois Vehicle Code. Horticultural polyhouses or hoop
23 houses used for propagating, growing, or overwintering plants
24 shall be considered farm machinery and equipment under this
25 paragraph.
26 (8) Fuel and petroleum products sold to or used by an
27 air common carrier, certified by the carrier to be used for
28 consumption, shipment, or storage in the conduct of its
29 business as an air common carrier, for a flight destined for
30 or returning from a location or locations outside the United
31 States without regard to previous or subsequent domestic
32 stopovers.
33 (9) Proceeds of mandatory service charges separately
34 stated on customers' bills for the purchase and consumption
HB0581 Re-Enrolled -12- LRB9001527DNmbA
1 of food and beverages acquired as an incident to the purchase
2 of a service from a serviceman, to the extent that the
3 proceeds of the service charge are in fact turned over as
4 tips or as a substitute for tips to the employees who
5 participate directly in preparing, serving, hosting or
6 cleaning up the food or beverage function with respect to
7 which the service charge is imposed.
8 (10) Oil field exploration, drilling, and production
9 equipment, including (i) rigs and parts of rigs, rotary rigs,
10 cable tool rigs, and workover rigs, (ii) pipe and tubular
11 goods, including casing and drill strings, (iii) pumps and
12 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 (11) Proceeds from the sale of photoprocessing machinery
18 and equipment, including repair and replacement parts, both
19 new and used, including that manufactured on special order,
20 certified by the purchaser to be used primarily for
21 photoprocessing, and including photoprocessing machinery and
22 equipment purchased for lease.
23 (12) Coal exploration, mining, offhighway hauling,
24 processing, maintenance, and reclamation equipment, including
25 replacement parts and equipment, and including equipment
26 purchased for lease, but excluding motor vehicles required to
27 be registered under the Illinois Vehicle Code.
28 (13) Semen used for artificial insemination of livestock
29 for direct agricultural production.
30 (14) 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
HB0581 Re-Enrolled -13- LRB9001527DNmbA
1 racing for prizes.
2 (15) 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
10 the Retailers' Occupation Tax Act. If the equipment is leased
11 in a manner that does not qualify for this exemption or is
12 used in any other non-exempt manner, the lessor shall be
13 liable for the tax imposed under this Act or the Use Tax Act,
14 as the case may be, based on the fair market value of the
15 property at the time the non-qualifying use occurs. No
16 lessor shall collect or attempt to collect an amount (however
17 designated) that purports to reimburse that lessor for the
18 tax imposed by this Act or the Use Tax Act, as the case may
19 be, if the tax has not been paid by the lessor. If a lessor
20 improperly collects any such amount from the lessee, the
21 lessee shall have a legal right to claim a refund of that
22 amount from the lessor. If, however, that amount is not
23 refunded to the lessee for any reason, the lessor is liable
24 to pay that amount to the Department.
25 (16) Personal property purchased by a lessor who leases
26 the property, under a lease of one year or longer executed or
27 in effect at the time the lessor would otherwise be subject
28 to the tax imposed by this Act, to a governmental body that
29 has been issued an active tax exemption identification number
30 by the Department under Section 1g of the Retailers'
31 Occupation Tax Act. If the property is leased in a manner
32 that does not qualify for this exemption or is used in any
33 other non-exempt manner, the lessor shall be liable for the
34 tax imposed under this Act or the Use Tax Act, as the case
HB0581 Re-Enrolled -14- LRB9001527DNmbA
1 may be, based on the fair market value of the property at the
2 time the non-qualifying use occurs. No lessor shall collect
3 or attempt to collect an amount (however designated) that
4 purports to reimburse that lessor for the tax imposed by this
5 Act or the Use Tax Act, as the case may be, if the tax has
6 not been paid by the lessor. If a lessor improperly collects
7 any such amount from the lessee, the lessee shall have a
8 legal right to claim a refund of that amount from the lessor.
9 If, however, that amount is not refunded to the lessee for
10 any reason, the lessor is liable to pay that amount to the
11 Department.
12 (17) Beginning with taxable years ending on or after
13 December 31, 1995 and ending with taxable years ending on or
14 before December 31, 2004, personal property that is donated
15 for disaster relief to be used in a State or federally
16 declared disaster area in Illinois or bordering Illinois by a
17 manufacturer or retailer that is registered in this State to
18 a corporation, society, association, foundation, or
19 institution that has been issued a sales tax exemption
20 identification number by the Department that assists victims
21 of the disaster who reside within the declared disaster area.
22 (18) Beginning with taxable years ending on or after
23 December 31, 1995 and ending with taxable years ending on or
24 before December 31, 2004, personal property that is used in
25 the performance of infrastructure repairs in this State,
26 including but not limited to municipal roads and streets,
27 access roads, bridges, sidewalks, waste disposal systems,
28 water and sewer line extensions, water distribution and
29 purification facilities, storm water drainage and retention
30 facilities, and sewage treatment facilities, resulting from a
31 State or federally declared disaster in Illinois or bordering
32 Illinois when such repairs are initiated on facilities
33 located in the declared disaster area within 6 months after
34 the disaster.
HB0581 Re-Enrolled -15- LRB9001527DNmbA
1 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
2 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
3 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
4 eff. 8-9-96; revised 8-21-96.)
5 Section 20. The Service Occupation Tax Act is amended by
6 changing Section 3-5 as follows:
7 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
8 Sec. 3-5. Exemptions. The following tangible personal
9 property is exempt from the tax imposed by this Act:
10 (1) Personal property sold by a corporation, society,
11 association, foundation, institution, or organization, other
12 than a limited liability company, that is organized and
13 operated as a not-for-profit service enterprise for the
14 benefit of persons 65 years of age or older if the personal
15 property was not purchased by the enterprise for the purpose
16 of resale by the enterprise.
17 (2) Personal property purchased by a not-for-profit
18 Illinois county fair association for use in conducting,
19 operating, or promoting the county fair.
20 (3) Personal property purchased by any not-for-profit
21 music or dramatic arts organization that establishes, by
22 proof required by the Department by rule, that it has
23 received an exemption under Section 501(c)(3) of the
24 Internal Revenue Code and that is organized and operated for
25 the presentation of live public performances of musical or
26 theatrical works on a regular basis.
27 (4) Legal tender, currency, medallions, or gold or
28 silver coinage issued by the State of Illinois, the
29 government of the United States of America, or the government
30 of any foreign country, and bullion.
31 (5) Graphic arts machinery and equipment, including
32 repair and replacement parts, both new and used, and
33 including that manufactured on special order or purchased for
HB0581 Re-Enrolled -16- LRB9001527DNmbA
1 lease, certified by the purchaser to be used primarily for
2 graphic arts production.
3 (6) Personal property sold by a teacher-sponsored
4 student organization affiliated with an elementary or
5 secondary school located in Illinois.
6 (7) Farm machinery and equipment, both new and used,
7 including that manufactured on special order, certified by
8 the purchaser to be used primarily for production agriculture
9 or State or federal agricultural programs, including
10 individual replacement parts for the machinery and equipment,
11 and including machinery and equipment purchased for lease,
12 but excluding motor vehicles required to be registered under
13 the Illinois Vehicle Code. Horticultural polyhouses or hoop
14 houses used for propagating, growing, or overwintering plants
15 shall be considered farm machinery and equipment under this
16 paragraph.
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
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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 non-prescription
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
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1 racing for prizes.
2 (16) Computers and communications equipment utilized for
3 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
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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 25. The Retailers' Occupation Tax Act is amended
10 by changing Section 2-5 as follows:
11 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
12 Sec. 2-5. Exemptions. Gross receipts from proceeds from
13 the sale of the following tangible personal property are
14 exempt from the tax imposed by this Act:
15 (1) Farm chemicals.
16 (2) Farm machinery and equipment, both new and used,
17 including that manufactured on special order, certified by
18 the purchaser to be used primarily for production agriculture
19 or State or federal agricultural programs, including
20 individual replacement parts for the machinery and equipment,
21 and including machinery and equipment purchased for lease,
22 but excluding motor vehicles required to be registered under
23 the Illinois Vehicle Code. Horticultural polyhouses or hoop
24 houses used for propagating, growing, or overwintering plants
25 shall be considered farm machinery and equipment under this
26 paragraph.
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.
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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 or motor that receives the physical possession of the
28 property in Illinois and that transports the property, or
29 shares with another common carrier in the transportation of
30 the property, out of Illinois on a standard uniform bill of
31 lading showing the seller of the property as the shipper or
32 consignor of the property to a destination outside Illinois,
33 for use outside 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 for
27 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 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
29 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
30 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
31 eff. 8-9-96; revised 8-21-96.)
32 Section 30. The Property Tax Code is amended by changing
33 Sections 6-30, 10-152, 14-20, and 15-175 and adding Sections
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1 6-32 and 6-34 as follows:
2 (35 ILCS 200/6-30)
3 Sec. 6-30. Board of review in commission counties. In
4 counties not under township organization with less than
5 3,000,000 inhabitants in which no board of review is elected
6 under Section 6-35, the board of county commissioners shall
7 constitute the board of review. They shall have all the
8 powers and perform all the duties conferred on or required by
9 boards of review and shall within one year of taking office
10 successfully complete a basic course in assessment practice
11 approved by the Department. Alternatively, the board of
12 county commissioners may appoint a 3-member board of review.
13 County commissioners shall receive no additional compensation
14 for serving on the board of review. County commissioners
15 serving as the board of review must meet the examination
16 requirements of Section 6-32. If any member of the board of
17 county commissioners fails to meet the examination
18 requirements, the board of county commissioners shall appoint
19 a board of review.
20 The board of county commissioners shall appoint a
21 3-member board of review if (i) the board of county
22 commissioners so chooses or (ii) any member of the board of
23 county commissioners fails to meet the examination
24 requirements of Section 6-32. No person may serve on an
25 appointed board of review under this Section unless he or she
26 meets the examination requirements of Section 6-32. Members
27 of a board of review appointed by the board of county
28 commissioners shall receive a per diem for their services as
29 established by the board of county commissioners.
30 A board of review appointed by the board of county
31 commissioners shall serve at the pleasure of the board of the
32 county commissioners. If the board of review is appointed
33 because any member of the board of county commissioners fails
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1 to meet the examination requirements of Section 6-32 and all
2 members subsequently fulfill the requirements, the board of
3 county commissioners may terminate the authority of the
4 sitting board of review, as soon as it completes its work for
5 a tax year, and serve as the board of review.
6 (Source: P.A. 87-818; 87-1189; 88-455; incorporates 88-221;
7 88-670, eff. 12-2-94.)
8 (35 ILCS 200/6-32 new)
9 Sec. 6-32. Examination requirement. In any county to
10 which Section 6-30 applies, no person may serve on a board of
11 review who has not passed an examination prepared and
12 administered by the Department to determine his or her
13 competence to hold the office. The Department shall conduct
14 examinations for various counties in a convenient location in
15 the region. A candidate appearing at the examination shall
16 indicate to the Department the name of the county the results
17 shall be certified to if he or she successfully passes the
18 examination. The Department shall certify the list to each
19 county from which candidates have appeared at the examination
20 location. Within one year after the effective date of this
21 amendatory Act of 1997, the Department shall conduct an
22 examination at least once in each commission county for which
23 the chairman of the County Board of Commissioners requests an
24 examination. The Department may provide by rule the maximum
25 time that the name of a person who has passed the examination
26 shall be included on a list of persons eligible to serve on
27 the board of review.
28 (35 ILCS 200/6-34 new)
29 Sec. 6-34. Political makeup. If the board of county
30 commissioners appoints a board of review as prescribed in
31 Section 6-30, the board of review shall consist of 2 members
32 affiliated with the political party polling the highest vote
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1 for any county office in the county and one member of the
2 party polling the second highest vote for the same county
3 office at the last general election.
4 (35 ILCS 200/10-152)
5 (Section scheduled to be repealed on December 31, 2006)
6 Sec. 10-152. Vegetative filter strip assessment.
7 (a) In counties with less than 3,000,000 inhabitants,
8 any land (i) that is located between a farm field and an area
9 to be protected, including but not limited to surface water,
10 a stream, a river, or a sinkhole and (ii) that meets the
11 requirements of subsection (b) of this Section shall be
12 considered a "vegetative filter strip" and valued at 1/6th of
13 its productivity index equalized assessed value as cropland.
14 In counties with 3,000,000 or more inhabitants, the land
15 shall be valued at the lesser of either (i) 16% of the fair
16 cash value of the farmland estimated at the price it would
17 bring at a fair, voluntary sale for use by the buyer as a
18 farm as defined in Section 1-60 or (ii) 90% of the 1983
19 average equalized assessed value per acre certified by the
20 Department of Revenue.
21 (b) Vegetative filter strips shall meet the standards
22 and specifications set forth in the Natural Resources
23 Conservation Service Technical Guide and shall must be at
24 least 66 feet in width and contain vegetation that (i) has a
25 dense top growth; (ii) forms a uniform ground cover; (iii)
26 has a heavy fibrous root system; and (iv) tolerates
27 pesticides used in the farm field.
28 (c) The county's soil and water conservation district
29 shall assist the taxpayer in completing a uniform certified
30 document as prescribed by the Department of Revenue in
31 cooperation with the Association of Illinois Soil and Water
32 Conservation Districts that certifies (i) that the property
33 meets the requirements established under this Section for
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1 vegetative filter strips and (ii) the acreage or square
2 footage of property that qualifies for assessment as a
3 vegetative filter strip. The document shall be filed by the
4 applicant with the Chief County Assessment Officer. The
5 Chief County Assessment Officer shall promulgate rules
6 concerning the filing of the document. The soil and water
7 conservation district shall create a conservation plan for
8 the creation of the filter strip. The plan shall be kept on
9 file in the soil and water conservation district office.
10 Nothing in this Section shall be construed to require any
11 taxpayer to have vegetative filter strips.
12 (d) A joint report by the Department of Agriculture and
13 the Department of Natural Resources concerning the effect and
14 impact of vegetative filter strip assessment shall be
15 submitted to the General Assembly by March 1, 2006.
16 (e) This Section is repealed on December 31, 2006.
17 (Source: P.A. 89-606, eff. 1-1-97.)
18 (35 ILCS 200/14-20)
19 Sec. 14-20. Certificate of error; counties of less than
20 3,000,000. In any county with less than 3,000,000
21 inhabitants, if, at any time before judgment or order of sale
22 is entered in any proceeding to collect or to enjoin the
23 collection of taxes based upon any assessment of any
24 property, the chief county assessment officer discovers an
25 error or mistake in the assessment (other than errors of
26 judgment as to the valuation of the property), he or she
27 shall issue to the person erroneously assessed a certificate
28 setting forth the nature of the error and the cause or causes
29 of the error. In any county with less than 3,000,000
30 inhabitants, if an owner fails to file an application for the
31 Senior Citizens Assessment Freeze Homestead Exemption
32 provided in Section 15-172 during the previous assessment
33 year and qualifies for the exemption, the Chief County
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1 Assessment Officer pursuant to this Section, or the Board of
2 Review pursuant to Section 16-75, shall issue a certificate
3 of error setting forth the correct taxable valuation of the
4 property. The certificate, when properly endorsed by the
5 majority of the board of review, showing their concurrence,
6 and not otherwise, may be used in evidence in any court of
7 competent jurisdiction, and when so introduced in evidence,
8 shall become a part of the court record and shall not be
9 removed from the files except on an order of the court.
10 Issuance of a certificate of error shall not reduce a
11 tax, except as ordered by the court.
12 (Source: P.A. 83-121; 88-455.)
13 (35 ILCS 200/15-175)
14 Sec. 15-175. General homestead exemption. Homestead
15 property is entitled to an annual homestead exemption
16 limited, except as described here with relation to
17 cooperatives, to a reduction in the equalized assessed value
18 of homestead property equal to the increase in equalized
19 assessed value for the current assessment year above the
20 equalized assessed value of the property for 1977, up to the
21 maximum reduction set forth below. If however, the 1977
22 equalized assessed value upon which taxes were paid is
23 subsequently determined by local assessing officials, the
24 Property Tax Appeal Board, or a court to have been excessive,
25 the equalized assessed value which should have been placed on
26 the property for 1977 shall be used to determine the amount
27 of the exemption.
28 The maximum reduction shall be $4,500 in counties with
29 3,000,000 or more inhabitants and $3,500 in all other
30 counties.
31 "Homestead property" under this Section includes
32 residential property that is occupied by its owner or owners
33 as his or their principal dwelling place, or that is a
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1 leasehold interest on which a single family residence is
2 situated, which is occupied as a residence by a person who
3 has an ownership interest therein, legal or equitable or as a
4 lessee, and on which the person is liable for the payment of
5 property taxes. For land improved with an apartment building
6 owned and operated as a cooperative or a building which is a
7 life care facility as defined in Section 15-170 and
8 considered to be a cooperative under Section 15-170, the
9 maximum reduction from the equalized assessed value shall be
10 limited to the increase in the value above the equalized
11 assessed value of the property for 1977, up to the maximum
12 reduction set forth above, multiplied by the number of
13 apartments or units occupied by a person or persons who is
14 liable, by contract with the owner or owners of record, for
15 paying property taxes on the property and is an owner of
16 record of a legal or equitable interest in the cooperative
17 apartment building, other than a leasehold interest. For
18 purposes of this Section, the term "life care facility" has
19 the meaning stated in Section 15-170.
20 In a cooperative where a homestead exemption has been
21 granted, the cooperative association or its management firm
22 shall credit the savings resulting from that exemption only
23 to the apportioned tax liability of the owner who qualified
24 for the exemption. Any person who willfully refuses to so
25 credit the savings shall be guilty of a Class B misdemeanor.
26 Where married persons maintain and reside in separate
27 residences qualifying as homestead property, each residence
28 shall receive 50% of the total reduction in equalized
29 assessed valuation provided by this Section.
30 The assessor, or chief county assessment officer may
31 determine the eligibility of residential property to receive
32 the homestead exemption by application, visual inspection,
33 questionnaire or other reasonable methods. The determination
34 shall be made in accordance with guidelines established by
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1 the Department. In counties with less than 3,000,000
2 inhabitants, if an application is used to determine
3 eligibility, the application shall be mailed to any taxpayer
4 over 65 years of age who has once applied for and been
5 granted an exemption under this Section. In counties with
6 fewer than 3,000,000 inhabitants, in the event of a sale of
7 homestead property the homestead exemption shall remain in
8 effect for the remainder of the assessment year of the sale.
9 The assessor or chief county assessment officer may require
10 the new owner of the property to apply for the homestead
11 exemption for the following assessment year.
12 (Source: P.A. 87-894; 87-1189; 88-455.)
13 Section 32. The Counties Code is amended by changing
14 Section 5-1006.5 as follows:
15 (55 ILCS 5/5-1006.5)
16 Sec. 5-1006.5. Special County Retailers' Occupation Tax
17 For Public Safety.
18 (a) The county board of any county may impose a tax upon
19 all persons engaged in the business of selling tangible
20 personal property, other than personal property titled or
21 registered with an agency of this State's government, at
22 retail in the county on the gross receipts from the sales
23 made in the course of business to provide revenue to be used
24 exclusively for public safety purposes in that county, if a
25 proposition for the tax has been submitted to the electors of
26 that county and approved by a majority of those voting on the
27 question. If imposed, this tax shall be imposed only in
28 one-quarter percent increments. By resolution, the county
29 board may order the proposition to be submitted at any
30 election. The county clerk shall certify the question to the
31 proper election authority, who shall submit the proposition
32 at an election in accordance with the general election law.
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1 The proposition shall be in substantially the following
2 form:
3 "Shall (name of county) be authorized to impose a
4 public safety tax at the rate of .... upon all persons
5 engaged in the business of selling tangible personal
6 property at retail in the county on gross receipts from
7 the sales made in the course of their business to be used
8 for crime prevention, detention, and other public safety
9 purposes?"
10 Votes shall be recorded as Yes or No. If a majority of the
11 electors voting on the proposition vote in favor of it, the
12 county may impose the tax.
13 This additional tax may not be imposed on the sales of
14 food for human consumption that is to be consumed off the
15 premises where it is sold (other than alcoholic beverages,
16 soft drinks, and food which has been prepared for immediate
17 consumption) and prescription and non-prescription medicines,
18 drugs, medical appliances and insulin, urine testing
19 materials, syringes, and needles used by diabetics. The tax
20 imposed by a county under this Section and all civil
21 penalties that may be assessed as an incident of the tax
22 shall be collected and enforced by the Illinois Department of
23 Revenue. The certificate of registration that is issued by
24 the Department to a retailer under the Retailers' Occupation
25 Tax Act shall permit the retailer to engage in a business
26 that is taxable without registering separately with the
27 Department under an ordinance or resolution under this
28 Section. The Department has full power to administer and
29 enforce this Section, to collect all taxes and penalties due
30 under this Section, to dispose of taxes and penalties so
31 collected in the manner provided in this Section, and to
32 determine all rights to credit memoranda arising on account
33 of the erroneous payment of a tax or penalty under this
34 Section. In the administration of and compliance with this
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1 Section, the Department and persons who are subject to this
2 Section shall (i) have the same rights, remedies, privileges,
3 immunities, powers, and duties, (ii) be subject to the same
4 conditions, restrictions, limitations, penalties, and
5 definitions of terms, and (iii) employ the same modes of
6 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
7 1f, 1i, 1j, 2, 2-10 (in respect to all provisions contained
8 in those Sections other than the State rate of tax), 2-40,
9 2a, 2b, 2c, 3 (except provisions relating to transaction
10 returns and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d,
11 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
12 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
13 Section 3-7 of the Uniform Penalty and Interest Act as if
14 those provisions were set forth in this Section.
15 Persons subject to any tax imposed under the authority
16 granted in this Section may reimburse themselves for their
17 sellers' tax liability by separately stating the tax as an
18 additional charge, which charge may be stated in combination,
19 in a single amount, with State tax which sellers are required
20 to collect under the Use Tax Act, pursuant to such bracketed
21 schedules as the Department may prescribe.
22 Whenever the Department determines that a refund should
23 be made under this Section to a claimant instead of issuing a
24 credit memorandum, the Department shall notify the State
25 Comptroller, who shall cause the order to be drawn for the
26 amount specified and to the person named in the notification
27 from the Department. The refund shall be paid by the State
28 Treasurer out of the County Public Safety Retailers'
29 Occupation Tax Fund.
30 (b) If a tax has been imposed under subsection (a), a
31 service occupation tax shall also be imposed at the same rate
32 upon all persons engaged, in the county, in the business of
33 making sales of service, who, as an incident to making those
34 sales of service, transfer tangible personal property within
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1 the county as an incident to a sale of service. This tax may
2 not be imposed on sales of food for human consumption that is
3 to be consumed off the premises where it is sold (other than
4 alcoholic beverages, soft drinks, and food prepared for
5 immediate consumption) and prescription and non-prescription
6 medicines, drugs, medical appliances and insulin, urine
7 testing materials, syringes, and needles used by diabetics.
8 The tax imposed under this subsection and all civil penalties
9 that may be assessed as an incident thereof shall be
10 collected and enforced by the Department of Revenue. The
11 Department has full power to administer and enforce this
12 subsection; to collect all taxes and penalties due hereunder;
13 to dispose of taxes and penalties so collected in the manner
14 hereinafter provided; and to determine all rights to credit
15 memoranda arising on account of the erroneous payment of tax
16 or penalty hereunder. In the administration of, and
17 compliance with this subsection, the Department and persons
18 who are subject to this paragraph shall (i) have the same
19 rights, remedies, privileges, immunities, powers, and duties,
20 (ii) be subject to the same conditions, restrictions,
21 limitations, penalties, exclusions, exemptions, and
22 definitions of terms, and (iii) employ the same modes of
23 procedure as are prescribed in Sections 1a-1, 2 (except that
24 the reference to State in the definition of supplier
25 maintaining a place of business in this State shall mean the
26 county), 2a, 3 through 3-50 (in respect to all provisions
27 therein other than the State rate of tax), 4 (except that the
28 reference to the State shall be to the county), 5, 7, 8
29 (except that the jurisdiction to which the tax shall be a
30 debt to the extent indicated in that Section 8 shall be the
31 county), 9 (except as to the disposition of taxes and
32 penalties collected, and except that the returned merchandise
33 credit for this tax may not be taken against any State tax),
34 10, 11, 12 (except the reference therein to Section 2b of the
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1 Retailers' Occupation Tax Act), 13 (except that any reference
2 to the State shall mean the county), the first paragraph of
3 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
4 Tax Act and Section 3-7 of the Uniform Penalty and Interest
5 Act, as fully as if those provisions were set forth herein.
6 Persons subject to any tax imposed under the authority
7 granted in this subsection may reimburse themselves for their
8 serviceman's tax liability by separately stating the tax as
9 an additional charge, which charge may be stated in
10 combination, in a single amount, with State tax that
11 servicemen are authorized to collect under the Service Use
12 Tax Act, in accordance with such bracket schedules as the
13 Department may prescribe.
14 Whenever the Department determines that a refund should
15 be made under this subsection to a claimant instead of
16 issuing a credit memorandum, the Department shall notify the
17 State Comptroller, who shall cause the warrant to be drawn
18 for the amount specified, and to the person named, in the
19 notification from the Department. The refund shall be paid
20 by the State Treasurer out of the County Public Safety
21 Retailers' Occupation Fund.
22 Nothing in this subsection shall be construed to
23 authorize the county to impose a tax upon the privilege of
24 engaging in any business which under the Constitution of the
25 United States may not be made the subject of taxation by the
26 State.
27 (c) The Department shall immediately pay over to the
28 State Treasurer, Ex Officio, as trustee, all taxes and
29 penalties collected under this Section to be deposited into
30 the County Public Safety Retailers' Occupation Tax Fund,
31 which shall be an unappropriated trust fund held outside of
32 the State treasury is created in the State treasury. On or
33 before the 25th day of each calendar month, the Department
34 shall prepare and certify to the Comptroller the disbursement
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1 of stated sums of money to the counties from which retailers
2 have paid taxes or penalties to the Department during the
3 second preceding calendar month. The amount to be paid to
4 each county shall be the amount (not including credit
5 memoranda) collected under this Section during the second
6 preceding calendar month by the Department plus an amount the
7 Department determines is necessary to offset any amounts that
8 were erroneously paid to a different taxing body, and not
9 including (i) an amount equal to the amount of refunds made
10 during the second preceding calendar month by the Department
11 on behalf of the county and (ii) any amount that the
12 Department determines is necessary to offset any amounts that
13 were payable to a different taxing body but were erroneously
14 paid to the county. Within 10 days after receipt by the
15 Comptroller of the disbursement certification to the counties
16 provided for in this Section to be given to the Comptroller
17 by the Department, the Comptroller shall cause the orders to
18 be drawn for the respective amounts in accordance with
19 directions contained in the certification.
20 In addition to the disbursement required by the preceding
21 paragraph, an allocation shall be made in March of each year
22 to each county that received more than $500,000 in
23 disbursements under the preceding paragraph in the preceding
24 calendar year. The allocation shall be in an amount equal to
25 the average monthly distribution made to each such county
26 under the preceding paragraph during the preceding calendar
27 year (excluding the 2 months of highest receipts). The
28 distribution made in March of each year subsequent to the
29 year in which an allocation was made pursuant to this
30 paragraph and the preceding paragraph shall be reduced by the
31 amount allocated and disbursed under this paragraph in the
32 preceding calendar year. The Department shall prepare and
33 certify to the Comptroller for disbursement the allocations
34 made in accordance with this paragraph.
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1 (d) For the purpose of determining the local
2 governmental unit whose tax is applicable, a retail sale by a
3 producer of coal or another mineral mined in Illinois is a
4 sale at retail at the place where the coal or other mineral
5 mined in Illinois is extracted from the earth. This
6 paragraph does not apply to coal or another mineral when it
7 is delivered or shipped by the seller to the purchaser at a
8 point outside Illinois so that the sale is exempt under the
9 United States Constitution as a sale in interstate or foreign
10 commerce.
11 (e) Nothing in this Section shall be construed to
12 authorize a county to impose a tax upon the privilege of
13 engaging in any business that under the Constitution of the
14 United States may not be made the subject of taxation by this
15 State.
16 (f) The results of any election authorizing a
17 proposition to impose a tax under this Section or effecting a
18 change in the rate of tax shall be certified by the county
19 clerk and filed with the Illinois Department of Revenue on or
20 before the first day of June. The Illinois Department of
21 Revenue shall then proceed to administer and enforce this
22 Section as of the first day of January next following the
23 filing.
24 (g) When certifying the amount of a monthly disbursement
25 to a county under this Section, the Department shall increase
26 or decrease the amounts by an amount necessary to offset any
27 miscalculation of previous disbursements. The offset amount
28 shall be the amount erroneously disbursed within the previous
29 6 months from the time a miscalculation is discovered.
30 (h) This Section may be cited as the "Special County
31 Occupation Tax For Public Safety Law".
32 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97.)
33 (30 ILCS 105/5.416 rep.)
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1 Section 50. The State Finance Act is amended by
2 repealing Section 5.416.
3 Section 99. Effective date. This Act takes effect upon
4 becoming law, except that the provisions amending the
5 Property Tax Code by changing Section 6-30 and adding
6 Sections 6-32 and 6-34 take effect January 1, 1999.