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90_HB3238
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 the exemption for farm machinery and
equipment shall also apply to implements of husbandry, farm
machinery and agricultural chemical and fertilizer spreaders,
and nurse wagons required to be registered under the Illinois
Vehicle Code. Provides that for purposes of the exemption,
farm machinery and equipment includes certain precision
farming equipment and computers, sensors, software, and
related equipment used primarily in the computer-assisted
operation of production agriculture facilities, equipment,
and activities. Provides that the exemption is exempt from
the sunset provisions. Effective immediately.
LRB9011423KDdv
LRB9011423KDdv
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17 Illinois county fair association for use in conducting,
18 operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit
20 music or dramatic arts organization that establishes, by
21 proof required by the Department by rule, that it has
22 received an exemption under Section 501(c)(3) of the Internal
23 Revenue Code and that is organized and operated for the
24 presentation of live public performances of musical or
25 theatrical works on a regular basis.
26 (4) Personal property purchased by a governmental body,
27 by a corporation, society, association, foundation, or
28 institution organized and operated exclusively for
29 charitable, religious, or educational purposes, or by a
30 not-for-profit corporation, society, association, foundation,
31 institution, or organization that has no compensated officers
-2- LRB9011423KDdv
1 or employees and that is organized and operated primarily for
2 the recreation of persons 55 years of age or older. A limited
3 liability company may qualify for the exemption under this
4 paragraph only if the limited liability company is organized
5 and operated exclusively for educational purposes. On and
6 after July 1, 1987, however, no entity otherwise eligible for
7 this exemption shall make tax-free purchases unless it has an
8 active exemption identification number issued by the
9 Department.
10 (5) A passenger car that is a replacement vehicle to the
11 extent that the purchase price of the car is subject to the
12 Replacement Vehicle Tax.
13 (6) Graphic arts machinery and equipment, including
14 repair and replacement parts, both new and used, and
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for graphic arts
17 production, and including machinery and equipment purchased
18 for lease.
19 (7) Farm chemicals.
20 (8) Legal tender, currency, medallions, or gold or
21 silver coinage issued by the State of Illinois, the
22 government of the United States of America, or the government
23 of any foreign country, and bullion.
24 (9) Personal property purchased from a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (10) A motor vehicle of the first division, a motor
28 vehicle of the second division that is a self-contained motor
29 vehicle designed or permanently converted to provide living
30 quarters for recreational, camping, or travel use, with
31 direct walk through to the living quarters from the driver's
32 seat, or a motor vehicle of the second division that is of
33 the van configuration designed for the transportation of not
34 less than 7 nor more than 16 passengers, as defined in
-3- LRB9011423KDdv
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 and including implements of husbandry defined in Section
11 1-130 of the Illinois Vehicle Code, farm machinery and
12 agricultural chemical and fertilizer spreaders, and nurse
13 wagons required to be registered under Section 3-809 of the
14 Illinois Vehicle Code, but excluding other motor vehicles
15 required to be registered under the Illinois Vehicle Code.
16 Horticultural polyhouses or hoop houses used for propagating,
17 growing, or overwintering plants shall be considered farm
18 machinery and equipment under this item (11) paragraph.
19 Agricultural chemical tender tanks and dry boxes shall
20 include units sold separately from a motor vehicle required
21 to be licensed and units sold mounted on a motor vehicle
22 required to be licensed if the selling price of the tender is
23 separately stated.
24 Farm machinery and equipment shall include precision
25 farming equipment that is installed or purchased to be
26 installed on farm machinery and equipment including, but not
27 limited to, tractors, combines, or spreaders. Precision
28 farming equipment includes, but is not limited to, soil
29 testing sensors, computers, monitors, software, global
30 positioning and mapping systems, and other such equipment.
31 Farm machinery and equipment also includes computers,
32 sensors, software, and related equipment used primarily in
33 the computer-assisted operation of production agriculture
34 facilities, equipment, and activities such as, but not
-4- LRB9011423KDdv
1 limited to, the collection, monitoring, and correlation of
2 animal and crop data for the purpose of formulating animal
3 diets and agricultural chemicals. This item (11) is exempt
4 from the provisions of Section 3-90.
5 (12) Fuel and petroleum products sold to or used by an
6 air common carrier, certified by the carrier to be used for
7 consumption, shipment, or storage in the conduct of its
8 business as an air common carrier, for a flight destined for
9 or returning from a location or locations outside the United
10 States without regard to previous or subsequent domestic
11 stopovers.
12 (13) Proceeds of mandatory service charges separately
13 stated on customers' bills for the purchase and consumption
14 of food and beverages purchased at retail from a retailer, to
15 the extent that the proceeds of the service charge are in
16 fact turned over as tips or as a substitute for tips to the
17 employees who participate directly in preparing, serving,
18 hosting or cleaning up the food or beverage function with
19 respect to which the service charge is imposed.
20 (14) Oil field exploration, drilling, and production
21 equipment, including (i) rigs and parts of rigs, rotary rigs,
22 cable tool rigs, and workover rigs, (ii) pipe and tubular
23 goods, including casing and drill strings, (iii) pumps and
24 pump-jack units, (iv) storage tanks and flow lines, (v) any
25 individual replacement part for oil field exploration,
26 drilling, and production equipment, and (vi) machinery and
27 equipment purchased for lease; but excluding motor vehicles
28 required to be registered under the Illinois Vehicle Code.
29 (15) Photoprocessing machinery and equipment, including
30 repair and replacement parts, both new and used, including
31 that manufactured on special order, certified by the
32 purchaser to be used primarily for photoprocessing, and
33 including photoprocessing machinery and equipment purchased
34 for lease.
-5- LRB9011423KDdv
1 (16) Coal exploration, mining, offhighway hauling,
2 processing, maintenance, and reclamation equipment, including
3 replacement parts and equipment, and including equipment
4 purchased for lease, but excluding motor vehicles required to
5 be registered under the Illinois Vehicle Code.
6 (17) Distillation machinery and equipment, sold as a
7 unit or kit, assembled or installed by the retailer,
8 certified by the user to be used only for the production of
9 ethyl alcohol that will be used for consumption as motor fuel
10 or as a component of motor fuel for the personal use of the
11 user, and not subject to sale or resale.
12 (18) Manufacturing and assembling machinery and
13 equipment used primarily in the process of manufacturing or
14 assembling tangible personal property for wholesale or retail
15 sale or lease, whether that sale or lease is made directly by
16 the manufacturer or by some other person, whether the
17 materials used in the process are owned by the manufacturer
18 or some other person, or whether that sale or lease is made
19 apart from or as an incident to the seller's engaging in the
20 service occupation of producing machines, tools, dies, jigs,
21 patterns, gauges, or other similar items of no commercial
22 value on special order for a particular purchaser.
23 (19) Personal property delivered to a purchaser or
24 purchaser's donee inside Illinois when the purchase order for
25 that personal property was received by a florist located
26 outside Illinois who has a florist located inside Illinois
27 deliver the personal property.
28 (20) Semen used for artificial insemination of livestock
29 for direct agricultural production.
30 (21) 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
-6- LRB9011423KDdv
1 racing for prizes.
2 (22) Computers and communications equipment utilized for
3 any hospital purpose and equipment used in the diagnosis,
4 analysis, or treatment of hospital patients purchased by a
5 lessor who leases the equipment, under a lease of one year or
6 longer executed or in effect at the time the lessor would
7 otherwise be subject to the tax imposed by this Act, to a
8 hospital that has been issued an active tax exemption
9 identification number by the Department under Section 1g of
10 the Retailers' Occupation Tax Act. If the equipment is
11 leased in a manner that does not qualify for this exemption
12 or is used in any other non-exempt manner, the lessor shall
13 be liable for the tax imposed under this Act or the Service
14 Use Tax Act, as the case may be, based on the fair market
15 value of the property at the time the non-qualifying use
16 occurs. No lessor shall collect or attempt to collect an
17 amount (however designated) that purports to reimburse that
18 lessor for the tax imposed by this Act or the Service Use Tax
19 Act, as the case may be, if the tax has not been paid by the
20 lessor. If a lessor improperly collects any such amount from
21 the lessee, the lessee shall have a legal right to claim a
22 refund of that amount from the lessor. If, however, that
23 amount is not refunded to the lessee for any reason, the
24 lessor is liable to pay that amount to the Department.
25 (23) Personal property purchased by a lessor who leases
26 the property, under a lease of one year or longer executed
27 or in effect at the time the lessor would otherwise be
28 subject to the tax imposed by this Act, to a governmental
29 body that has been issued an active sales tax exemption
30 identification number by the Department under Section 1g of
31 the Retailers' Occupation Tax Act. If the property is leased
32 in a manner that does not qualify for this exemption or used
33 in any other non-exempt manner, the lessor shall be liable
34 for the tax imposed under this Act or the Service Use Tax
-7- LRB9011423KDdv
1 Act, as the case may be, based on the fair market value of
2 the property at the time the non-qualifying use occurs. No
3 lessor shall collect or attempt to collect an amount (however
4 designated) that purports to reimburse that lessor for the
5 tax imposed by this Act or the Service Use Tax Act, as the
6 case may be, if the tax has not been paid by the lessor. If
7 a lessor improperly collects any such amount from the lessee,
8 the lessee shall have a legal right to claim a refund of that
9 amount from the lessor. If, however, that amount is not
10 refunded to the lessee for any reason, the lessor is liable
11 to pay that amount to the Department.
12 (24) 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 (25) 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.
-8- LRB9011423KDdv
1 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
2 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
3 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
4 eff. 12-12-97.)
5 Section 10. The Service Use Tax Act is amended by
6 changing Section 3-5 as follows:
7 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
8 Sec. 3-5. Exemptions. Use of the following tangible
9 personal property is exempt from the tax imposed by this Act:
10 (1) Personal property purchased from a corporation,
11 society, association, foundation, institution, or
12 organization, other than a limited liability company, that is
13 organized and operated as a not-for-profit service enterprise
14 for the benefit of persons 65 years of age or older if the
15 personal property was not purchased by the enterprise for the
16 purpose of resale by the enterprise.
17 (2) Personal property purchased by a non-profit Illinois
18 county fair association for use in conducting, operating, or
19 promoting the county fair.
20 (3) Personal property purchased by a 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 Internal
24 Revenue Code and that is organized and operated for the
25 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
-9- LRB9011423KDdv
1 including that manufactured on special order or purchased for
2 lease, certified by the purchaser to be used primarily for
3 graphic arts production.
4 (6) Personal property purchased from a teacher-sponsored
5 student organization affiliated with an elementary or
6 secondary school located in Illinois.
7 (7) Farm machinery and equipment, both new and used,
8 including that manufactured on special order, certified by
9 the purchaser to be used primarily for production agriculture
10 or State or federal agricultural programs, including
11 individual replacement parts for the machinery and equipment,
12 and including machinery and equipment purchased for lease,
13 and including implements of husbandry defined in Section
14 1-130 of the Illinois Vehicle Code, farm machinery and
15 agricultural chemical and fertilizer spreaders, and nurse
16 wagons required to be registered under Section 3-809 of the
17 Illinois Vehicle Code, but excluding other motor vehicles
18 required to be registered under the Illinois Vehicle Code.
19 Horticultural polyhouses or hoop houses used for propagating,
20 growing, or overwintering plants shall be considered farm
21 machinery and equipment under this item (7) paragraph.
22 Agricultural chemical tender tanks and dry boxes shall
23 include units sold separately from a motor vehicle required
24 to be licensed and units sold mounted on a motor vehicle
25 required to be licensed if the selling price of the tender is
26 separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, combines, or spreaders. Precision
31 farming equipment includes, but is not limited to, soil
32 testing sensors, computers, monitors, software, global
33 positioning and mapping systems, and other such equipment.
34 Farm machinery and equipment also includes computers,
-10- LRB9011423KDdv
1 sensors, software, and related equipment used primarily in
2 the computer-assisted operation of production agriculture
3 facilities, equipment, and activities such as, but not
4 limited to, the collection, monitoring, and correlation of
5 animal and crop data for the purpose of formulating animal
6 diets and agricultural chemicals. This item (7) is exempt
7 from the provisions of Section 3-75.
8 (8) Fuel and petroleum products sold to or used by an
9 air common carrier, certified by the carrier to be used for
10 consumption, shipment, or storage in the conduct of its
11 business as an air common carrier, for a flight destined for
12 or returning from a location or locations outside the United
13 States without regard to previous or subsequent domestic
14 stopovers.
15 (9) Proceeds of mandatory service charges separately
16 stated on customers' bills for the purchase and consumption
17 of food and beverages acquired as an incident to the purchase
18 of a service from a serviceman, to the extent that the
19 proceeds of the service charge are in fact turned over as
20 tips or as a substitute for tips to the employees who
21 participate directly in preparing, serving, hosting or
22 cleaning up the food or beverage function with respect to
23 which the service charge is imposed.
24 (10) Oil field exploration, drilling, and production
25 equipment, including (i) rigs and parts of rigs, rotary rigs,
26 cable tool rigs, and workover rigs, (ii) pipe and tubular
27 goods, including casing and drill strings, (iii) pumps and
28 pump-jack units, (iv) storage tanks and flow lines, (v) any
29 individual replacement part for oil field exploration,
30 drilling, and production equipment, and (vi) machinery and
31 equipment purchased for lease; but excluding motor vehicles
32 required to be registered under the Illinois Vehicle Code.
33 (11) Proceeds from the sale of photoprocessing machinery
34 and equipment, including repair and replacement parts, both
-11- LRB9011423KDdv
1 new and used, including that manufactured on special order,
2 certified by the purchaser to be used primarily for
3 photoprocessing, and including photoprocessing machinery and
4 equipment purchased for lease.
5 (12) Coal exploration, mining, offhighway hauling,
6 processing, maintenance, and reclamation equipment, including
7 replacement parts and equipment, and including equipment
8 purchased for lease, but excluding motor vehicles required to
9 be registered under the Illinois Vehicle Code.
10 (13) Semen used for artificial insemination of livestock
11 for direct agricultural production.
12 (14) Horses, or interests in horses, registered with and
13 meeting the requirements of any of the Arabian Horse Club
14 Registry of America, Appaloosa Horse Club, American Quarter
15 Horse Association, United States Trotting Association, or
16 Jockey Club, as appropriate, used for purposes of breeding or
17 racing for prizes.
18 (15) Computers and communications equipment utilized for
19 any hospital purpose and equipment used in the diagnosis,
20 analysis, or treatment of hospital patients purchased by a
21 lessor who leases the equipment, under a lease of one year or
22 longer executed or in effect at the time the lessor would
23 otherwise be subject to the tax imposed by this Act, to a
24 hospital that has been issued an active tax exemption
25 identification number by the Department under Section 1g of
26 the Retailers' Occupation Tax Act. If the equipment is leased
27 in a manner that does not qualify for this exemption or is
28 used in any other non-exempt manner, the lessor shall be
29 liable for the tax imposed under this Act or the Use Tax Act,
30 as the case may be, based on the fair market value of the
31 property at the time the non-qualifying use occurs. No
32 lessor shall collect or attempt to collect an amount (however
33 designated) that purports to reimburse that lessor for the
34 tax imposed by this Act or the Use Tax Act, as the case may
-12- LRB9011423KDdv
1 be, if the tax has not been paid by the lessor. If a lessor
2 improperly collects any such amount from the lessee, the
3 lessee shall have a legal right to claim a refund of that
4 amount from the lessor. If, however, that amount is not
5 refunded to the lessee for any reason, the lessor is liable
6 to pay that amount to the Department.
7 (16) Personal property purchased by a lessor who leases
8 the property, under a lease of one year or longer executed or
9 in effect at the time the lessor would otherwise be subject
10 to the tax imposed by this Act, to a governmental body that
11 has been issued an active tax exemption identification number
12 by the Department under Section 1g of the Retailers'
13 Occupation Tax Act. If the property is leased in a manner
14 that does not qualify for this exemption or is used in any
15 other non-exempt manner, the lessor shall be liable for the
16 tax imposed under this Act or the Use Tax Act, as the case
17 may be, based on the fair market value of the property at the
18 time the non-qualifying use occurs. No lessor shall collect
19 or attempt to collect an amount (however designated) that
20 purports to reimburse that lessor for the tax imposed by this
21 Act or the Use Tax Act, as the case may be, if the tax has
22 not been paid by the lessor. If a lessor improperly collects
23 any such amount from the lessee, the lessee shall have a
24 legal right to claim a refund of that amount from the lessor.
25 If, however, that amount is not refunded to the lessee for
26 any reason, the lessor is liable to pay that amount to the
27 Department.
28 (17) Beginning with taxable years ending on or after
29 December 31, 1995 and ending with taxable years ending on or
30 before December 31, 2004, personal property that is donated
31 for disaster relief to be used in a State or federally
32 declared disaster area in Illinois or bordering Illinois by a
33 manufacturer or retailer that is registered in this State to
34 a corporation, society, association, foundation, or
-13- LRB9011423KDdv
1 institution that has been issued a sales tax exemption
2 identification number by the Department that assists victims
3 of the disaster who reside within the declared disaster area.
4 (18) Beginning with taxable years ending on or after
5 December 31, 1995 and ending with taxable years ending on or
6 before December 31, 2004, personal property that is used in
7 the performance of infrastructure repairs in this State,
8 including but not limited to municipal roads and streets,
9 access roads, bridges, sidewalks, waste disposal systems,
10 water and sewer line extensions, water distribution and
11 purification facilities, storm water drainage and retention
12 facilities, and sewage treatment facilities, resulting from a
13 State or federally declared disaster in Illinois or bordering
14 Illinois when such repairs are initiated on facilities
15 located in the declared disaster area within 6 months after
16 the disaster.
17 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
18 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
19 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
20 eff. 12-12-97.)
21 Section 15. The Service Occupation Tax Act is amended by
22 changing Section 3-5 as follows:
23 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
24 Sec. 3-5. Exemptions. The following tangible personal
25 property is exempt from the tax imposed by this Act:
26 (1) Personal property sold by a corporation, society,
27 association, foundation, institution, or organization, other
28 than a limited liability company, that is organized and
29 operated as a not-for-profit service enterprise for the
30 benefit of persons 65 years of age or older if the personal
31 property was not purchased by the enterprise for the purpose
32 of resale by the enterprise.
-14- LRB9011423KDdv
1 (2) Personal property purchased by a not-for-profit
2 Illinois county fair association for use in conducting,
3 operating, or promoting the county fair.
4 (3) Personal property purchased by any not-for-profit
5 music or dramatic arts organization that establishes, by
6 proof required by the Department by rule, that it has
7 received an exemption under Section 501(c)(3) of the
8 Internal Revenue Code and that is organized and operated for
9 the presentation of live public performances of musical or
10 theatrical works on a regular basis.
11 (4) Legal tender, currency, medallions, or gold or
12 silver coinage issued by the State of Illinois, the
13 government of the United States of America, or the government
14 of any foreign country, and bullion.
15 (5) Graphic arts machinery and equipment, including
16 repair and replacement parts, both new and used, and
17 including that manufactured on special order or purchased for
18 lease, certified by the purchaser to be used primarily for
19 graphic arts production.
20 (6) Personal property sold by a teacher-sponsored
21 student organization affiliated with an elementary or
22 secondary school located in Illinois.
23 (7) Farm machinery and equipment, both new and used,
24 including that manufactured on special order, certified by
25 the purchaser to be used primarily for production agriculture
26 or State or federal agricultural programs, including
27 individual replacement parts for the machinery and equipment,
28 and including machinery and equipment purchased for lease,
29 and including implements of husbandry defined in Section
30 1-130 of the Illinois Vehicle Code, farm machinery and
31 agricultural chemical and fertilizer spreaders, and nurse
32 wagons required to be registered under Section 3-809 of the
33 Illinois Vehicle Code, but excluding other motor vehicles
34 required to be registered under the Illinois Vehicle Code.
-15- LRB9011423KDdv
1 Horticultural polyhouses or hoop houses used for propagating,
2 growing, or overwintering plants shall be considered farm
3 machinery and equipment under this item (7) paragraph.
4 Agricultural chemical tender tanks and dry boxes shall
5 include units sold separately from a motor vehicle required
6 to be licensed and units sold mounted on a motor vehicle
7 required to be licensed if the selling price of the tender is
8 separately stated.
9 Farm machinery and equipment shall include precision
10 farming equipment that is installed or purchased to be
11 installed on farm machinery and equipment including, but not
12 limited to, tractors, combines, or spreaders. Precision
13 farming equipment includes, but is not limited to, soil
14 testing sensors, computers, monitors, software, global
15 positioning and mapping systems, and other such equipment.
16 Farm machinery and equipment also includes computers,
17 sensors, software, and related equipment used primarily in
18 the computer-assisted operation of production agriculture
19 facilities, equipment, and activities such as, but not
20 limited to, the collection, monitoring, and correlation of
21 animal and crop data for the purpose of formulating animal
22 diets and agricultural chemicals. This item (7) is exempt
23 from the provisions of Section 3-75.
24 (8) Fuel and petroleum products sold to or used by an
25 air common 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 (9) Proceeds of mandatory service charges separately
32 stated on customers' bills for the purchase and consumption
33 of food and beverages, to the extent that the proceeds of the
34 service charge are in fact turned over as tips or as a
-16- LRB9011423KDdv
1 substitute for tips to the employees who participate directly
2 in preparing, serving, hosting or cleaning up the food or
3 beverage function with respect to which the service charge is
4 imposed.
5 (10) Oil field exploration, drilling, and production
6 equipment, including (i) rigs and parts of rigs, rotary rigs,
7 cable tool rigs, and workover rigs, (ii) pipe and tubular
8 goods, including casing and drill strings, (iii) pumps and
9 pump-jack units, (iv) storage tanks and flow lines, (v) any
10 individual replacement part for oil field exploration,
11 drilling, and production equipment, and (vi) machinery and
12 equipment purchased for lease; but excluding motor vehicles
13 required to be registered under the Illinois Vehicle Code.
14 (11) Photoprocessing machinery and equipment, including
15 repair and replacement parts, both new and used, including
16 that manufactured on special order, certified by the
17 purchaser to be used primarily for photoprocessing, and
18 including photoprocessing machinery and equipment purchased
19 for lease.
20 (12) Coal exploration, mining, offhighway hauling,
21 processing, maintenance, and reclamation equipment, including
22 replacement parts and equipment, and including equipment
23 purchased for lease, but excluding motor vehicles required to
24 be registered under the Illinois Vehicle Code.
25 (13) Food for human consumption that is to be consumed
26 off the premises where it is sold (other than alcoholic
27 beverages, soft drinks and food that has been prepared for
28 immediate consumption) and prescription and non-prescription
29 medicines, drugs, medical appliances, and insulin, urine
30 testing materials, syringes, and needles used by diabetics,
31 for human use, when purchased for use by a person receiving
32 medical assistance under Article 5 of the Illinois Public Aid
33 Code who resides in a licensed long-term care facility, as
34 defined in the Nursing Home Care Act.
-17- LRB9011423KDdv
1 (14) Semen used for artificial insemination of livestock
2 for direct agricultural production.
3 (15) Horses, or interests in horses, registered with and
4 meeting the requirements of any of the Arabian Horse Club
5 Registry of America, Appaloosa Horse Club, American Quarter
6 Horse Association, United States Trotting Association, or
7 Jockey Club, as appropriate, used for purposes of breeding or
8 racing for prizes.
9 (16) Computers and communications equipment utilized for
10 any hospital purpose and equipment used in the diagnosis,
11 analysis, or treatment of hospital patients sold to a lessor
12 who leases the equipment, under a lease of one year or longer
13 executed or in effect at the time of the purchase, to a
14 hospital that has been issued an active tax exemption
15 identification number by the Department under Section 1g of
16 the Retailers' Occupation Tax Act.
17 (17) Personal property sold to a lessor who leases the
18 property, under a lease of one year or longer executed or in
19 effect at the time of the purchase, to a governmental body
20 that has been issued an active tax exemption identification
21 number by the Department under Section 1g of the Retailers'
22 Occupation Tax Act.
23 (18) Beginning with taxable years ending on or after
24 December 31, 1995 and ending with taxable years ending on or
25 before December 31, 2004, personal property that is 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 (19) 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. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
13 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
14 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
15 eff. 12-12-97.)
16 Section 20. The Retailers' Occupation Tax Act is amended
17 by changing Section 2-5 as follows:
18 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
19 (Text of Section before amendment by P.A. 90-519)
20 Sec. 2-5. Exemptions. Gross receipts from proceeds from
21 the sale of the following tangible personal property are
22 exempt from the tax imposed by this Act:
23 (1) Farm chemicals.
24 (2) Farm machinery and equipment, both new and used,
25 including that manufactured on special order, certified by
26 the purchaser to be used primarily for production agriculture
27 or State or federal agricultural programs, including
28 individual replacement parts for the machinery and equipment,
29 and including machinery and equipment purchased for lease,
30 and including implements of husbandry defined in Section
31 1-130 of the Illinois Vehicle Code, farm machinery and
32 agricultural chemical and fertilizer spreaders, and nurse
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1 wagons required to be registered under Section 3-809 of the
2 Illinois Vehicle Code, but excluding other motor vehicles
3 required to be registered under the Illinois Vehicle Code.
4 Horticultural polyhouses or hoop houses used for propagating,
5 growing, or overwintering plants shall be considered farm
6 machinery and equipment under this item (2) paragraph.
7 Agricultural chemical tender tanks and dry boxes shall
8 include units sold separately from a motor vehicle required
9 to be licensed and units sold mounted on a motor vehicle
10 required to be licensed if the selling price of the tender is
11 separately stated.
12 Farm machinery and equipment shall include precision
13 farming equipment that is installed or purchased to be
14 installed on farm machinery and equipment including, but not
15 limited to, tractors, combines, or spreaders. Precision
16 farming equipment includes, but is not limited to, soil
17 testing sensors, computers, monitors, software, global
18 positioning and mapping systems, and other such equipment.
19 Farm machinery and equipment also includes computers,
20 sensors, software, and related equipment used primarily in
21 the computer-assisted operation of production agriculture
22 facilities, equipment, and activities such as, but not
23 limited to, the collection, monitoring, and correlation of
24 animal and crop data for the purpose of formulating animal
25 diets and agricultural chemicals. This item (7) is exempt
26 from the provisions of Section 3-75.
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.
33 (4) Graphic arts machinery and equipment, including
34 repair and replacement parts, both new and used, and
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1 including that manufactured on special order or purchased for
2 lease, certified by the purchaser to be used primarily for
3 graphic arts production.
4 (5) A motor vehicle of the first division, a motor
5 vehicle of the second division that is a self-contained motor
6 vehicle designed or permanently converted to provide living
7 quarters for recreational, camping, or travel use, with
8 direct walk through access to the living quarters from the
9 driver's seat, or a motor vehicle of the second division that
10 is of the van configuration designed for the transportation
11 of not less than 7 nor more than 16 passengers, as defined in
12 Section 1-146 of the Illinois Vehicle Code, that is used for
13 automobile renting, as defined in the Automobile Renting
14 Occupation and Use Tax Act.
15 (6) Personal property sold by a teacher-sponsored
16 student organization affiliated with an elementary or
17 secondary school located in Illinois.
18 (7) Proceeds of that portion of the selling price of a
19 passenger car the sale of which is subject to the Replacement
20 Vehicle Tax.
21 (8) Personal property sold to an Illinois county fair
22 association for use in conducting, operating, or promoting
23 the county fair.
24 (9) Personal property sold to a not-for-profit music or
25 dramatic arts organization that establishes, by proof
26 required by the Department by rule, that it has received an
27 exemption under Section 501(c) (3) of the Internal Revenue
28 Code and that is organized and operated for the presentation
29 of live public performances of musical or theatrical works on
30 a regular basis.
31 (10) Personal property sold by a corporation, society,
32 association, foundation, institution, or organization, other
33 than a limited liability company, that is organized and
34 operated as a not-for-profit service enterprise for the
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1 benefit of persons 65 years of age or older if the personal
2 property was not purchased by the enterprise for the purpose
3 of resale by the enterprise.
4 (11) Personal property sold to a governmental body, to a
5 corporation, society, association, foundation, or institution
6 organized and operated exclusively for charitable, religious,
7 or educational purposes, or to a not-for-profit corporation,
8 society, association, foundation, institution, or
9 organization that has no compensated officers or employees
10 and that is organized and operated primarily for the
11 recreation of persons 55 years of age or older. A limited
12 liability company may qualify for the exemption under this
13 paragraph only if the limited liability company is organized
14 and operated exclusively for educational purposes. On and
15 after July 1, 1987, however, no entity otherwise eligible for
16 this exemption shall make tax-free purchases unless it has an
17 active identification number issued by the Department.
18 (12) Personal property sold to interstate carriers for
19 hire for use as rolling stock moving in interstate commerce
20 or to lessors under leases of one year or longer executed or
21 in effect at the time of purchase by interstate carriers for
22 hire for use as rolling stock moving in interstate commerce
23 and equipment operated by a telecommunications provider,
24 licensed as a common carrier by the Federal Communications
25 Commission, which is permanently installed in or affixed to
26 aircraft moving in interstate commerce.
27 (13) Proceeds from sales to owners, lessors, or shippers
28 of tangible personal property that is utilized by interstate
29 carriers for hire for use as rolling stock moving in
30 interstate commerce and equipment operated by a
31 telecommunications provider, licensed as a common carrier by
32 the Federal Communications Commission, which is permanently
33 installed in or affixed to aircraft moving in interstate
34 commerce.
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1 (14) Machinery and equipment that will be used by the
2 purchaser, or a lessee of the purchaser, primarily in the
3 process of manufacturing or assembling tangible personal
4 property for wholesale or retail sale or lease, whether the
5 sale or lease is made directly by the manufacturer or by some
6 other person, whether the materials used in the process are
7 owned by the manufacturer or some other person, or whether
8 the sale or lease is made apart from or as an incident to the
9 seller's engaging in the service occupation of producing
10 machines, tools, dies, jigs, patterns, gauges, or other
11 similar items of no commercial value on special order for a
12 particular purchaser.
13 (15) Proceeds of mandatory service charges separately
14 stated on customers' bills for purchase and consumption of
15 food and beverages, to the extent that the proceeds of the
16 service charge are in fact turned over as tips or as a
17 substitute for tips to the employees who participate directly
18 in preparing, serving, hosting or cleaning up the food or
19 beverage function with respect to which the service charge is
20 imposed.
21 (16) Petroleum products sold to a purchaser if the
22 seller is prohibited by federal law from charging tax to the
23 purchaser.
24 (17) Tangible personal property sold to a common carrier
25 by rail or motor that receives the physical possession of the
26 property in Illinois and that transports the property, or
27 shares with another common carrier in the transportation of
28 the property, out of Illinois on a standard uniform bill of
29 lading showing the seller of the property as the shipper or
30 consignor of the property to a destination outside Illinois,
31 for use outside Illinois.
32 (18) Legal tender, currency, medallions, or gold or
33 silver coinage issued by the State of Illinois, the
34 government of the United States of America, or the government
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1 of any foreign country, and bullion.
2 (19) Oil field exploration, drilling, and production
3 equipment, including (i) rigs and parts of rigs, rotary rigs,
4 cable tool rigs, and workover rigs, (ii) pipe and tubular
5 goods, including casing and drill strings, (iii) pumps and
6 pump-jack units, (iv) storage tanks and flow lines, (v) any
7 individual replacement part for oil field exploration,
8 drilling, and production equipment, and (vi) machinery and
9 equipment purchased for lease; but excluding motor vehicles
10 required to be registered under the Illinois Vehicle Code.
11 (20) Photoprocessing machinery and equipment, including
12 repair and replacement parts, both new and used, including
13 that manufactured on special order, certified by the
14 purchaser to be used primarily for photoprocessing, and
15 including photoprocessing machinery and equipment purchased
16 for lease.
17 (21) Coal exploration, mining, offhighway hauling,
18 processing, maintenance, and reclamation equipment, including
19 replacement parts and equipment, and including equipment
20 purchased for lease, but excluding motor vehicles required to
21 be registered under the Illinois Vehicle Code.
22 (22) Fuel and petroleum products sold to or used by an
23 air 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 (23) A transaction in which the purchase order is
30 received by a florist who is located outside Illinois, but
31 who has a florist located in Illinois deliver the property to
32 the purchaser or the purchaser's donee in Illinois.
33 (24) Fuel consumed or used in the operation of ships,
34 barges, or vessels that are used primarily in or for the
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1 transportation of property or the conveyance of persons for
2 hire on rivers bordering on this State if the fuel is
3 delivered by the seller to the purchaser's barge, ship, or
4 vessel while it is afloat upon that bordering river.
5 (25) A motor vehicle sold in this State to a nonresident
6 even though the motor vehicle is delivered to the nonresident
7 in this State, if the motor vehicle is not to be titled in
8 this State, and if a driveaway decal permit is issued to the
9 motor vehicle as provided in Section 3-603 of the Illinois
10 Vehicle Code or if the nonresident purchaser has vehicle
11 registration plates to transfer to the motor vehicle upon
12 returning to his or her home state. The issuance of the
13 driveaway decal permit or having the out-of-state
14 registration plates to be transferred is prima facie evidence
15 that the motor vehicle will not be titled in this State.
16 (26) Semen used for artificial insemination of livestock
17 for direct agricultural production.
18 (27) Horses, or interests in horses, registered with and
19 meeting the requirements of any of the Arabian Horse Club
20 Registry of America, Appaloosa Horse Club, American Quarter
21 Horse Association, United States Trotting Association, or
22 Jockey Club, as appropriate, used for purposes of breeding or
23 racing for prizes.
24 (28) Computers and communications equipment utilized
25 for any hospital purpose and equipment used in the diagnosis,
26 analysis, or treatment of hospital patients sold to a lessor
27 who leases the equipment, under a lease of one year or longer
28 executed or in effect at the time of the purchase, to a
29 hospital that has been issued an active tax exemption
30 identification number by the Department under Section 1g of
31 this Act.
32 (29) Personal property sold to a lessor who leases the
33 property, under a lease of one year or longer executed or in
34 effect at the time of the purchase, to a governmental body
-25- LRB9011423KDdv
1 that has been issued an active tax exemption identification
2 number by the Department under Section 1g of this Act.
3 (30) Beginning with taxable years ending on or after
4 December 31, 1995 and ending with taxable years ending on or
5 before December 31, 2004, personal property that is donated
6 for disaster relief to be used in a State or federally
7 declared disaster area in Illinois or bordering Illinois by a
8 manufacturer or retailer that is registered in this State to
9 a corporation, society, association, foundation, or
10 institution that has been issued a sales tax exemption
11 identification number by the Department that assists victims
12 of the disaster who reside within the declared disaster area.
13 (31) Beginning with taxable years ending on or after
14 December 31, 1995 and ending with taxable years ending on or
15 before December 31, 2004, personal property that is used in
16 the performance of infrastructure repairs in this State,
17 including but not limited to municipal roads and streets,
18 access roads, bridges, sidewalks, waste disposal systems,
19 water and sewer line extensions, water distribution and
20 purification facilities, storm water drainage and retention
21 facilities, and sewage treatment facilities, resulting from a
22 State or federally declared disaster in Illinois or bordering
23 Illinois when such repairs are initiated on facilities
24 located in the declared disaster area within 6 months after
25 the disaster.
26 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
27 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
28 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
29 eff. 12-12-97.)
30 (Text of Section after amendment by P.A. 90-519)
31 Sec. 2-5. Exemptions. Gross receipts from proceeds from
32 the sale of the following tangible personal property are
33 exempt from the tax imposed by this Act:
34 (1) Farm chemicals.
-26- LRB9011423KDdv
1 (2) Farm machinery and equipment, both new and used,
2 including that manufactured on special order, certified by
3 the purchaser to be used primarily for production agriculture
4 or State or federal agricultural programs, including
5 individual replacement parts for the machinery and equipment,
6 and including machinery and equipment purchased for lease,
7 and including implements of husbandry defined in Section
8 1-130 of the Illinois Vehicle Code, farm machinery and
9 agricultural chemical and fertilizer spreaders, and nurse
10 wagons required to be registered under Section 3-809 of the
11 Illinois Vehicle Code, but excluding other motor vehicles
12 required to be registered under the Illinois Vehicle Code.
13 Horticultural polyhouses or hoop houses used for propagating,
14 growing, or overwintering plants shall be considered farm
15 machinery and equipment under this item (2) paragraph.
16 Agricultural chemical tender tanks and dry boxes shall
17 include units sold separately from a motor vehicle required
18 to be licensed and units sold mounted on a motor vehicle
19 required to be licensed, if the selling price of the tender
20 is separately stated.
21 Farm machinery and equipment shall include precision
22 farming equipment that is installed or purchased to be
23 installed on farm machinery and equipment including, but not
24 limited to, tractors, combines, or spreaders. Precision
25 farming equipment includes, but is not limited to, soil
26 testing sensors, computers, monitors, software, global
27 positioning and mapping systems, and other such equipment.
28 Farm machinery and equipment also includes computers,
29 sensors, software, and related equipment used primarily in
30 the computer-assisted operation of production agriculture
31 facilities, equipment, and activities such as, but not
32 limited to, the collection, monitoring, and correlation of
33 animal and crop data for the purpose of formulating animal
34 diets and agricultural chemicals. This item (7) is exempt
-27- LRB9011423KDdv
1 from the provisions of Section 3-75.
2 (3) Distillation machinery and equipment, sold as a unit
3 or kit, assembled or installed by the retailer, certified by
4 the user to be used only for the production of ethyl alcohol
5 that will be used for consumption as motor fuel or as a
6 component of motor fuel for the personal use of the user, and
7 not subject to sale or resale.
8 (4) Graphic arts machinery and equipment, including
9 repair and replacement parts, both new and used, and
10 including that manufactured on special order or purchased for
11 lease, certified by the purchaser to be used primarily for
12 graphic arts production.
13 (5) A motor vehicle of the first division, a motor
14 vehicle of the second division that is a self-contained motor
15 vehicle designed or permanently converted to provide living
16 quarters for recreational, camping, or travel use, with
17 direct walk through access to the living quarters from the
18 driver's seat, or a motor vehicle of the second division that
19 is of the van configuration designed for the transportation
20 of not less than 7 nor more than 16 passengers, as defined in
21 Section 1-146 of the Illinois Vehicle Code, that is used for
22 automobile renting, as defined in the Automobile Renting
23 Occupation and Use Tax Act.
24 (6) Personal property sold by a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (7) Proceeds of that portion of the selling price of a
28 passenger car the sale of which is subject to the Replacement
29 Vehicle Tax.
30 (8) Personal property sold to an Illinois county fair
31 association for use in conducting, operating, or promoting
32 the county fair.
33 (9) Personal property sold to a not-for-profit music or
34 dramatic arts organization that establishes, by proof
-28- LRB9011423KDdv
1 required by the Department by rule, that it has received an
2 exemption under Section 501(c) (3) of the Internal Revenue
3 Code and that is organized and operated for the presentation
4 of live public performances of musical or theatrical works on
5 a regular basis.
6 (10) Personal property sold by a corporation, society,
7 association, foundation, institution, or organization, other
8 than a limited liability company, that is organized and
9 operated as a not-for-profit service enterprise for the
10 benefit of persons 65 years of age or older if the personal
11 property was not purchased by the enterprise for the purpose
12 of resale by the enterprise.
13 (11) Personal property sold to a governmental body, to a
14 corporation, society, association, foundation, or institution
15 organized and operated exclusively for charitable, religious,
16 or educational purposes, or to a not-for-profit corporation,
17 society, association, foundation, institution, or
18 organization that has no compensated officers or employees
19 and that is organized and operated primarily for the
20 recreation of persons 55 years of age or older. A limited
21 liability company may qualify for the exemption under this
22 paragraph only if the limited liability company is organized
23 and operated exclusively for educational purposes. On and
24 after July 1, 1987, however, no entity otherwise eligible for
25 this exemption shall make tax-free purchases unless it has an
26 active identification number issued by the Department.
27 (12) Personal property sold to interstate carriers for
28 hire for use as rolling stock moving in interstate commerce
29 or to lessors under leases of one year or longer executed or
30 in effect at the time of purchase by interstate carriers for
31 hire for use as rolling stock moving in interstate commerce
32 and equipment operated by a telecommunications provider,
33 licensed as a common carrier by the Federal Communications
34 Commission, which is permanently installed in or affixed to
-29- LRB9011423KDdv
1 aircraft moving in interstate commerce.
2 (13) Proceeds from sales to owners, lessors, or shippers
3 of tangible personal property that is utilized by interstate
4 carriers for hire for use as rolling stock moving in
5 interstate commerce and equipment operated by a
6 telecommunications provider, licensed as a common carrier by
7 the Federal Communications Commission, which is permanently
8 installed in or affixed to aircraft moving in interstate
9 commerce.
10 (14) Machinery and equipment that will be used by the
11 purchaser, or a lessee of the purchaser, primarily in the
12 process of manufacturing or assembling tangible personal
13 property for wholesale or retail sale or lease, whether the
14 sale or lease is made directly by the manufacturer or by some
15 other person, whether the materials used in the process are
16 owned by the manufacturer or some other person, or whether
17 the sale or lease is made apart from or as an incident to the
18 seller's engaging in the service occupation of producing
19 machines, tools, dies, jigs, patterns, gauges, or other
20 similar items of no commercial value on special order for a
21 particular purchaser.
22 (15) Proceeds of mandatory service charges separately
23 stated on customers' bills for purchase and consumption of
24 food and beverages, to the extent that the proceeds of the
25 service charge are in fact turned over as tips or as a
26 substitute for tips to the employees who participate directly
27 in preparing, serving, hosting or cleaning up the food or
28 beverage function with respect to which the service charge is
29 imposed.
30 (16) Petroleum products sold to a purchaser if the
31 seller is prohibited by federal law from charging tax to the
32 purchaser.
33 (17) Tangible personal property sold to a common carrier
34 by rail or motor that receives the physical possession of the
-30- LRB9011423KDdv
1 property in Illinois and that transports the property, or
2 shares with another common carrier in the transportation of
3 the property, out of Illinois on a standard uniform bill of
4 lading showing the seller of the property as the shipper or
5 consignor of the property to a destination outside Illinois,
6 for use outside Illinois.
7 (18) Legal tender, currency, medallions, or gold or
8 silver coinage issued by the State of Illinois, the
9 government of the United States of America, or the government
10 of any foreign country, and bullion.
11 (19) Oil field exploration, drilling, and production
12 equipment, including (i) rigs and parts of rigs, rotary rigs,
13 cable tool rigs, and workover rigs, (ii) pipe and tubular
14 goods, including casing and drill strings, (iii) pumps and
15 pump-jack units, (iv) storage tanks and flow lines, (v) any
16 individual replacement part for oil field exploration,
17 drilling, and production equipment, and (vi) machinery and
18 equipment purchased for lease; but excluding motor vehicles
19 required to be registered under the Illinois Vehicle Code.
20 (20) Photoprocessing machinery and equipment, including
21 repair and replacement parts, both new and used, including
22 that manufactured on special order, certified by the
23 purchaser to be used primarily for photoprocessing, and
24 including photoprocessing machinery and equipment purchased
25 for lease.
26 (21) Coal exploration, mining, offhighway hauling,
27 processing, maintenance, and reclamation equipment, including
28 replacement parts and equipment, and including equipment
29 purchased for lease, but excluding motor vehicles required to
30 be registered under the Illinois Vehicle Code.
31 (22) Fuel and petroleum products sold to or used by an
32 air carrier, certified by the carrier to be used for
33 consumption, shipment, or storage in the conduct of its
34 business as an air common carrier, for a flight destined for
-31- LRB9011423KDdv
1 or returning from a location or locations outside the United
2 States without regard to previous or subsequent domestic
3 stopovers.
4 (23) A transaction in which the purchase order is
5 received by a florist who is located outside Illinois, but
6 who has a florist located in Illinois deliver the property to
7 the purchaser or the purchaser's donee in Illinois.
8 (24) Fuel consumed or used in the operation of ships,
9 barges, or vessels that are used primarily in or for the
10 transportation of property or the conveyance of persons for
11 hire on rivers bordering on this State if the fuel is
12 delivered by the seller to the purchaser's barge, ship, or
13 vessel while it is afloat upon that bordering river.
14 (25) A motor vehicle sold in this State to a nonresident
15 even though the motor vehicle is delivered to the nonresident
16 in this State, if the motor vehicle is not to be titled in
17 this State, and if a driveaway decal permit is issued to the
18 motor vehicle as provided in Section 3-603 of the Illinois
19 Vehicle Code or if the nonresident purchaser has vehicle
20 registration plates to transfer to the motor vehicle upon
21 returning to his or her home state. The issuance of the
22 driveaway decal permit or having the out-of-state
23 registration plates to be transferred is prima facie evidence
24 that the motor vehicle will not be titled in this State.
25 (26) Semen used for artificial insemination of livestock
26 for direct agricultural production.
27 (27) Horses, or interests in horses, registered with and
28 meeting the requirements of any of the Arabian Horse Club
29 Registry of America, Appaloosa Horse Club, American Quarter
30 Horse Association, United States Trotting Association, or
31 Jockey Club, as appropriate, used for purposes of breeding or
32 racing for prizes.
33 (28) Computers and communications equipment utilized
34 for any hospital purpose and equipment used in the diagnosis,
-32- LRB9011423KDdv
1 analysis, or treatment of hospital patients sold to a lessor
2 who leases the equipment, under a lease of one year or longer
3 executed or in effect at the time of the purchase, to a
4 hospital that has been issued an active tax exemption
5 identification number by the Department under Section 1g of
6 this Act.
7 (29) Personal property sold to a lessor who leases the
8 property, under a lease of one year or longer executed or in
9 effect at the time of the purchase, to a governmental body
10 that has been issued an active tax exemption identification
11 number by the Department under Section 1g of this Act.
12 (30) 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 (31) 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.
-33- LRB9011423KDdv
1 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
2 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
3 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
4 eff. 6-1-98; 90-552, eff. 12-12-97.)
5 Section 95. No acceleration or delay. Where this Act
6 makes changes in a statute that is represented in this Act by
7 text that is not yet or no longer in effect (for example, a
8 Section represented by multiple versions), the use of that
9 text does not accelerate or delay the taking effect of (i)
10 the changes made by this Act or (ii) provisions derived from
11 any other Public Act.
12 Section 99. Effective date. This Act takes effect upon
13 becoming law.