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90_HB3336
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. Exempts the amount, if any, of tax that is imposed
under Section 4051 of the Internal Revenue Code of 1986 on
heavy trucks and trailers from the taxes imposed under those
Acts. Provides that these exemptions are not subject to the
sunset provisions. Effective immediately.
LRB9010636KDks
LRB9010636KDks
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- LRB9010636KDks
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- LRB9010636KDks
1 Section 1-146 of the Illinois Vehicle Code, that is used for
2 automobile renting, as defined in the Automobile Renting
3 Occupation and Use Tax Act.
4 (11) Farm machinery and equipment, both new and used,
5 including that manufactured on special order, certified by
6 the purchaser to be used primarily for production agriculture
7 or State or federal agricultural programs, including
8 individual replacement parts for the machinery and equipment,
9 and including machinery and equipment purchased for lease,
10 but excluding motor vehicles required to be registered under
11 the Illinois Vehicle Code. Horticultural polyhouses or hoop
12 houses used for propagating, growing, or overwintering plants
13 shall be considered farm machinery and equipment under this
14 paragraph.
15 (12) Fuel and petroleum products sold to or used by an
16 air common carrier, certified by the carrier to be used for
17 consumption, shipment, or storage in the conduct of its
18 business as an air common carrier, for a flight destined for
19 or returning from a location or locations outside the United
20 States without regard to previous or subsequent domestic
21 stopovers.
22 (13) Proceeds of mandatory service charges separately
23 stated on customers' bills for the purchase and consumption
24 of food and beverages purchased at retail from a retailer, to
25 the extent that the proceeds of the service charge are in
26 fact turned over as tips or as a substitute for tips to the
27 employees who participate directly in preparing, serving,
28 hosting or cleaning up the food or beverage function with
29 respect to which the service charge is imposed.
30 (14) Oil field exploration, drilling, and production
31 equipment, including (i) rigs and parts of rigs, rotary rigs,
32 cable tool rigs, and workover rigs, (ii) pipe and tubular
33 goods, including casing and drill strings, (iii) pumps and
34 pump-jack units, (iv) storage tanks and flow lines, (v) any
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1 individual replacement part for oil field exploration,
2 drilling, and production equipment, and (vi) machinery and
3 equipment purchased for lease; but excluding motor vehicles
4 required to be registered under the Illinois Vehicle Code.
5 (15) Photoprocessing machinery and equipment, including
6 repair and replacement parts, both new and used, including
7 that manufactured on special order, certified by the
8 purchaser to be used primarily for photoprocessing, and
9 including photoprocessing machinery and equipment purchased
10 for lease.
11 (16) Coal exploration, mining, offhighway hauling,
12 processing, maintenance, and reclamation equipment, including
13 replacement parts and equipment, and including equipment
14 purchased for lease, but excluding motor vehicles required to
15 be registered under the Illinois Vehicle Code.
16 (17) Distillation machinery and equipment, sold as a
17 unit or kit, assembled or installed by the retailer,
18 certified by the user to be used only for the production of
19 ethyl alcohol that will be used for consumption as motor fuel
20 or as a component of motor fuel for the personal use of the
21 user, and not subject to sale or resale.
22 (18) Manufacturing and assembling machinery and
23 equipment used primarily in the process of manufacturing or
24 assembling tangible personal property for wholesale or retail
25 sale or lease, whether that sale or lease is made directly by
26 the manufacturer or by some other person, whether the
27 materials used in the process are owned by the manufacturer
28 or some other person, or whether that sale or lease is made
29 apart from or as an incident to the seller's engaging in the
30 service occupation of producing machines, tools, dies, jigs,
31 patterns, gauges, or other similar items of no commercial
32 value on special order for a particular purchaser.
33 (19) Personal property delivered to a purchaser or
34 purchaser's donee inside Illinois when the purchase order for
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1 that personal property was received by a florist located
2 outside Illinois who has a florist located inside Illinois
3 deliver the personal property.
4 (20) Semen used for artificial insemination of livestock
5 for direct agricultural production.
6 (21) Horses, or interests in horses, registered with and
7 meeting the requirements of any of the Arabian Horse Club
8 Registry of America, Appaloosa Horse Club, American Quarter
9 Horse Association, United States Trotting Association, or
10 Jockey Club, as appropriate, used for purposes of breeding or
11 racing for prizes.
12 (22) Computers and communications equipment utilized for
13 any hospital purpose and equipment used in the diagnosis,
14 analysis, or treatment of hospital patients purchased by a
15 lessor who leases the equipment, under a lease of one year or
16 longer executed or in effect at the time the lessor would
17 otherwise be subject to the tax imposed by this Act, to a
18 hospital that has been issued an active tax exemption
19 identification number by the Department under Section 1g of
20 the Retailers' Occupation Tax Act. If the equipment is
21 leased in a manner that does not qualify for this exemption
22 or is used in any other non-exempt manner, the lessor shall
23 be liable for the tax imposed under this Act or the Service
24 Use Tax Act, as the case may be, based on the fair market
25 value of the property at the time the non-qualifying use
26 occurs. No lessor shall collect or attempt to collect an
27 amount (however designated) that purports to reimburse that
28 lessor for the tax imposed by this Act or the Service Use Tax
29 Act, as the case may be, if the tax has not been paid by the
30 lessor. If a lessor improperly collects any such amount from
31 the lessee, the lessee shall have a legal right to claim a
32 refund of that amount from the lessor. If, however, that
33 amount is not refunded to the lessee for any reason, the
34 lessor is liable to pay that amount to the Department.
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1 (23) Personal property purchased by a lessor who leases
2 the property, under a lease of one year or longer executed
3 or in effect at the time the lessor would otherwise be
4 subject to the tax imposed by this Act, to a governmental
5 body that has been issued an active sales tax exemption
6 identification number by the Department under Section 1g of
7 the Retailers' Occupation Tax Act. If the property is leased
8 in a manner that does not qualify for this exemption or used
9 in any other non-exempt manner, the lessor shall be liable
10 for the tax imposed under this Act or the Service Use Tax
11 Act, as the case may be, based on the fair market value of
12 the property at the time the non-qualifying use occurs. No
13 lessor shall collect or attempt to collect an amount (however
14 designated) that purports to reimburse that lessor for the
15 tax imposed by this Act or the Service Use Tax Act, as the
16 case may be, if the tax has not been paid by the lessor. If
17 a lessor improperly collects any such amount from the lessee,
18 the lessee shall have a legal right to claim a refund of that
19 amount from the lessor. If, however, that amount is not
20 refunded to the lessee for any reason, the lessor is liable
21 to pay that amount to the Department.
22 (24) 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 donated
25 for disaster relief to be used in a State or federally
26 declared disaster area in Illinois or bordering Illinois by a
27 manufacturer or retailer that is registered in this State to
28 a corporation, society, association, foundation, or
29 institution that has been issued a sales tax exemption
30 identification number by the Department that assists victims
31 of the disaster who reside within the declared disaster area.
32 (25) Beginning with taxable years ending on or after
33 December 31, 1995 and ending with taxable years ending on or
34 before December 31, 2004, personal property that is used in
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1 the performance of infrastructure repairs in this State,
2 including but not limited to municipal roads and streets,
3 access roads, bridges, sidewalks, waste disposal systems,
4 water and sewer line extensions, water distribution and
5 purification facilities, storm water drainage and retention
6 facilities, and sewage treatment facilities, resulting from a
7 State or federally declared disaster in Illinois or bordering
8 Illinois when such repairs are initiated on facilities
9 located in the declared disaster area within 6 months after
10 the disaster.
11 (26) Beginning with taxable years ending on or after
12 December 31, 1998, the amount, if any, of tax that is imposed
13 under Section 4051 of the Internal Revenue Code of 1986 on
14 heavy trucks and trailers. This paragraph is exempt from the
15 provisions of Section 3-90.
16 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
17 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
18 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
19 eff. 12-12-97.)
20 Section 10. The Service Use Tax Act is amended by
21 changing Section 3-5 as follows:
22 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
23 Sec. 3-5. Exemptions. Use of the following tangible
24 personal property is exempt from the tax imposed by this Act:
25 (1) Personal property purchased from a corporation,
26 society, association, foundation, institution, or
27 organization, other than a limited liability company, that is
28 organized and operated as a not-for-profit service enterprise
29 for the benefit of persons 65 years of age or older if the
30 personal property was not purchased by the enterprise for the
31 purpose of resale by the enterprise.
32 (2) Personal property purchased by a non-profit Illinois
-8- LRB9010636KDks
1 county fair association for use in conducting, operating, or
2 promoting the county fair.
3 (3) Personal property purchased by a not-for-profit
4 music or dramatic arts organization that establishes, by
5 proof required by the Department by rule, that it has
6 received an exemption under Section 501(c)(3) of the Internal
7 Revenue Code and that is organized and operated for the
8 presentation of live public performances of musical or
9 theatrical works on a regular basis.
10 (4) Legal tender, currency, medallions, or gold or
11 silver coinage issued by the State of Illinois, the
12 government of the United States of America, or the government
13 of any foreign country, and bullion.
14 (5) Graphic arts machinery and equipment, including
15 repair and replacement parts, both new and used, and
16 including that manufactured on special order or purchased for
17 lease, certified by the purchaser to be used primarily for
18 graphic arts production.
19 (6) Personal property purchased from a teacher-sponsored
20 student organization affiliated with an elementary or
21 secondary school located in Illinois.
22 (7) Farm machinery and equipment, both new and used,
23 including that manufactured on special order, certified by
24 the purchaser to be used primarily for production agriculture
25 or State or federal agricultural programs, including
26 individual replacement parts for the machinery and equipment,
27 and including machinery and equipment purchased for lease,
28 but excluding motor vehicles required to be registered under
29 the Illinois Vehicle Code. Horticultural polyhouses or hoop
30 houses used for propagating, growing, or overwintering plants
31 shall be considered farm machinery and equipment under this
32 paragraph.
33 (8) Fuel and petroleum products sold to or used by an
34 air common carrier, certified by the carrier to be used for
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1 consumption, shipment, or storage in the conduct of its
2 business as an air common carrier, for a flight destined for
3 or returning from a location or locations outside the United
4 States without regard to previous or subsequent domestic
5 stopovers.
6 (9) Proceeds of mandatory service charges separately
7 stated on customers' bills for the purchase and consumption
8 of food and beverages acquired as an incident to the purchase
9 of a service from a serviceman, to the extent that the
10 proceeds of the service charge are in fact turned over as
11 tips or as a substitute for tips to the employees who
12 participate directly in preparing, serving, hosting or
13 cleaning up the food or beverage function with respect to
14 which the service charge is imposed.
15 (10) Oil field exploration, drilling, and production
16 equipment, including (i) rigs and parts of rigs, rotary rigs,
17 cable tool rigs, and workover rigs, (ii) pipe and tubular
18 goods, including casing and drill strings, (iii) pumps and
19 pump-jack units, (iv) storage tanks and flow lines, (v) any
20 individual replacement part for oil field exploration,
21 drilling, and production equipment, and (vi) machinery and
22 equipment purchased for lease; but excluding motor vehicles
23 required to be registered under the Illinois Vehicle Code.
24 (11) Proceeds from the sale of photoprocessing machinery
25 and equipment, including repair and replacement parts, both
26 new and used, including that manufactured on special order,
27 certified by the purchaser to be used primarily for
28 photoprocessing, and including photoprocessing machinery and
29 equipment purchased for lease.
30 (12) Coal exploration, mining, offhighway hauling,
31 processing, maintenance, and reclamation equipment, including
32 replacement parts and equipment, and including equipment
33 purchased for lease, but excluding motor vehicles required to
34 be registered under the Illinois Vehicle Code.
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1 (13) Semen used for artificial insemination of livestock
2 for direct agricultural production.
3 (14) 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 (15) Computers and communications equipment utilized for
10 any hospital purpose and equipment used in the diagnosis,
11 analysis, or treatment of hospital patients purchased by a
12 lessor who leases the equipment, under a lease of one year or
13 longer executed or in effect at the time the lessor would
14 otherwise be subject to the tax imposed by this Act, to a
15 hospital that has been issued an active tax exemption
16 identification number by the Department under Section 1g of
17 the Retailers' Occupation Tax Act. If the equipment is leased
18 in a manner that does not qualify for this exemption or is
19 used in any other non-exempt manner, the lessor shall be
20 liable for the tax imposed under this Act or the Use Tax Act,
21 as the case may be, based on the fair market value of the
22 property at the time the non-qualifying use occurs. No
23 lessor shall collect or attempt to collect an amount (however
24 designated) that purports to reimburse that lessor for the
25 tax imposed by this Act or the Use Tax Act, as the case may
26 be, if the tax has not been paid by the lessor. If a lessor
27 improperly collects any such amount from the lessee, the
28 lessee shall have a legal right to claim a refund of that
29 amount from the lessor. If, however, that amount is not
30 refunded to the lessee for any reason, the lessor is liable
31 to pay that amount to the Department.
32 (16) Personal property purchased by a lessor who leases
33 the property, under a lease of one year or longer executed or
34 in effect at the time the lessor would otherwise be subject
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1 to the tax imposed by this Act, to a governmental body that
2 has been issued an active tax exemption identification number
3 by the Department under Section 1g of the Retailers'
4 Occupation Tax Act. If the property is leased in a manner
5 that does not qualify for this exemption or is used in any
6 other non-exempt manner, the lessor shall be liable for the
7 tax imposed under this Act or the Use Tax Act, as the case
8 may be, based on the fair market value of the property at the
9 time the non-qualifying use occurs. No lessor shall collect
10 or attempt to collect an amount (however designated) that
11 purports to reimburse that lessor for the tax imposed by this
12 Act or the Use Tax Act, as the case may be, if the tax has
13 not been paid by the lessor. If a lessor improperly collects
14 any such amount from the lessee, the lessee shall have a
15 legal right to claim a refund of that amount from the lessor.
16 If, however, that amount is not refunded to the lessee for
17 any reason, the lessor is liable to pay that amount to the
18 Department.
19 (17) Beginning with taxable years ending on or after
20 December 31, 1995 and ending with taxable years ending on or
21 before December 31, 2004, personal property that is donated
22 for disaster relief to be used in a State or federally
23 declared disaster area in Illinois or bordering Illinois by a
24 manufacturer or retailer that is registered in this State to
25 a corporation, society, association, foundation, or
26 institution that has been issued a sales tax exemption
27 identification number by the Department that assists victims
28 of the disaster who reside within the declared disaster area.
29 (18) Beginning with taxable years ending on or after
30 December 31, 1995 and ending with taxable years ending on or
31 before December 31, 2004, personal property that is used in
32 the performance of infrastructure repairs in this State,
33 including but not limited to municipal roads and streets,
34 access roads, bridges, sidewalks, waste disposal systems,
-12- LRB9010636KDks
1 water and sewer line extensions, water distribution and
2 purification facilities, storm water drainage and retention
3 facilities, and sewage treatment facilities, resulting from a
4 State or federally declared disaster in Illinois or bordering
5 Illinois when such repairs are initiated on facilities
6 located in the declared disaster area within 6 months after
7 the disaster.
8 (19) Beginning with taxable years ending on or after
9 December 31, 1998, the amount, if any, of tax that is imposed
10 under Section 4051 of the Internal Revenue Code of 1986 on
11 heavy trucks and trailers. This paragraph is exempt from the
12 provisions of Section 3-75.
13 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
14 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
15 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
16 eff. 12-12-97.)
17 Section 15. The Service Occupation Tax Act is amended by
18 changing Section 3-5 as follows:
19 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
20 Sec. 3-5. Exemptions. The following tangible personal
21 property is exempt from the tax imposed by this Act:
22 (1) Personal property sold by a corporation, society,
23 association, foundation, institution, or organization, other
24 than a limited liability company, that is organized and
25 operated as a not-for-profit service enterprise for the
26 benefit of persons 65 years of age or older if the personal
27 property was not purchased by the enterprise for the purpose
28 of resale by the enterprise.
29 (2) Personal property purchased by a not-for-profit
30 Illinois county fair association for use in conducting,
31 operating, or promoting the county fair.
32 (3) Personal property purchased by any not-for-profit
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1 music or dramatic arts organization that establishes, by
2 proof required by the Department by rule, that it has
3 received an exemption under Section 501(c)(3) of the
4 Internal Revenue Code and that is organized and operated for
5 the presentation of live public performances of musical or
6 theatrical works on a regular basis.
7 (4) 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 (5) Graphic arts machinery and equipment, including
12 repair and replacement parts, both new and used, and
13 including that manufactured on special order or purchased for
14 lease, certified by the purchaser to be used primarily for
15 graphic arts production.
16 (6) Personal property sold by a teacher-sponsored
17 student organization affiliated with an elementary or
18 secondary school located in Illinois.
19 (7) Farm machinery and equipment, both new and used,
20 including that manufactured on special order, certified by
21 the purchaser to be used primarily for production agriculture
22 or State or federal agricultural programs, including
23 individual replacement parts for the machinery and equipment,
24 and including machinery and equipment purchased for lease,
25 but excluding motor vehicles required to be registered under
26 the Illinois Vehicle Code. Horticultural polyhouses or hoop
27 houses used for propagating, growing, or overwintering plants
28 shall be considered farm machinery and equipment under this
29 paragraph.
30 (8) Fuel and petroleum products sold to or used by an
31 air common carrier, certified by the carrier to be used for
32 consumption, shipment, or storage in the conduct of its
33 business as an air common carrier, for a flight destined for
34 or returning from a location or locations outside the United
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1 States without regard to previous or subsequent domestic
2 stopovers.
3 (9) Proceeds of mandatory service charges separately
4 stated on customers' bills for the purchase and consumption
5 of food and beverages, to the extent that the proceeds of the
6 service charge are in fact turned over as tips or as a
7 substitute for tips to the employees who participate directly
8 in preparing, serving, hosting or cleaning up the food or
9 beverage function with respect to which the service charge is
10 imposed.
11 (10) 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 (11) 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 (12) 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 (13) Food for human consumption that is to be consumed
32 off the premises where it is sold (other than alcoholic
33 beverages, soft drinks and food that has been prepared for
34 immediate consumption) and prescription and non-prescription
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1 medicines, drugs, medical appliances, and insulin, urine
2 testing materials, syringes, and needles used by diabetics,
3 for human use, when purchased for use by a person receiving
4 medical assistance under Article 5 of the Illinois Public Aid
5 Code who resides in a licensed long-term care facility, as
6 defined in the Nursing Home Care Act.
7 (14) Semen used for artificial insemination of livestock
8 for direct agricultural production.
9 (15) Horses, or interests in horses, registered with and
10 meeting the requirements of any of the Arabian Horse Club
11 Registry of America, Appaloosa Horse Club, American Quarter
12 Horse Association, United States Trotting Association, or
13 Jockey Club, as appropriate, used for purposes of breeding or
14 racing for prizes.
15 (16) Computers and communications equipment utilized for
16 any hospital purpose and equipment used in the diagnosis,
17 analysis, or treatment of hospital patients sold to a lessor
18 who leases the equipment, under a lease of one year or longer
19 executed or in effect at the time of the purchase, to a
20 hospital that has been issued an active tax exemption
21 identification number by the Department under Section 1g of
22 the Retailers' Occupation Tax Act.
23 (17) Personal property sold to a lessor who leases the
24 property, under a lease of one year or longer executed or in
25 effect at the time of the purchase, to a governmental body
26 that has been issued an active tax exemption identification
27 number by the Department under Section 1g of the Retailers'
28 Occupation Tax Act.
29 (18) Beginning with taxable years ending on or after
30 December 31, 1995 and ending with taxable years ending on or
31 before December 31, 2004, personal property that is donated
32 for disaster relief to be used in a State or federally
33 declared disaster area in Illinois or bordering Illinois by a
34 manufacturer or retailer that is registered in this State to
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1 a corporation, society, association, foundation, or
2 institution that has been issued a sales tax exemption
3 identification number by the Department that assists victims
4 of the disaster who reside within the declared disaster area.
5 (19) 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 used in
8 the performance of infrastructure repairs in this State,
9 including but not limited to municipal roads and streets,
10 access roads, bridges, sidewalks, waste disposal systems,
11 water and sewer line extensions, water distribution and
12 purification facilities, storm water drainage and retention
13 facilities, and sewage treatment facilities, resulting from a
14 State or federally declared disaster in Illinois or bordering
15 Illinois when such repairs are initiated on facilities
16 located in the declared disaster area within 6 months after
17 the disaster.
18 (20) Beginning with taxable years ending on or after
19 December 31, 1998, the amount, if any, of tax that is imposed
20 under Section 4051 of the Internal Revenue Code of 1986 on
21 heavy trucks and trailers. This paragraph is exempt from the
22 provisions of Section 3-55.
23 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
24 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
25 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
26 eff. 12-12-97.)
27 Section 20. The Retailers' Occupation Tax Act is amended
28 by changing Section 2-5 as follows: 1t+2
29 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
30 Sec. 2-5. Exemptions. Gross receipts from proceeds from
31 the sale of the following tangible personal property are
32 exempt from the tax imposed by this Act:
33 (1) Farm chemicals.
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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 but excluding motor vehicles required to be registered under
8 the Illinois Vehicle Code. Horticultural polyhouses or hoop
9 houses used for propagating, growing, or overwintering plants
10 shall be considered farm machinery and equipment under this
11 paragraph.
12 (3) Distillation machinery and equipment, sold as a unit
13 or kit, assembled or installed by the retailer, certified by
14 the user to be used only for the production of ethyl alcohol
15 that will be used for consumption as motor fuel or as a
16 component of motor fuel for the personal use of the user, and
17 not subject to sale or resale.
18 (4) Graphic arts machinery and equipment, including
19 repair and replacement parts, both new and used, and
20 including that manufactured on special order or purchased for
21 lease, certified by the purchaser to be used primarily for
22 graphic arts production.
23 (5) A motor vehicle of the first division, a motor
24 vehicle of the second division that is a self-contained motor
25 vehicle designed or permanently converted to provide living
26 quarters for recreational, camping, or travel use, with
27 direct walk through access to the living quarters from the
28 driver's seat, or a motor vehicle of the second division that
29 is of the van configuration designed for the transportation
30 of not less than 7 nor more than 16 passengers, as defined in
31 Section 1-146 of the Illinois Vehicle Code, that is used for
32 automobile renting, as defined in the Automobile Renting
33 Occupation and Use Tax Act.
34 (6) Personal property sold by a teacher-sponsored
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1 student organization affiliated with an elementary or
2 secondary school located in Illinois.
3 (7) Proceeds of that portion of the selling price of a
4 passenger car the sale of which is subject to the Replacement
5 Vehicle Tax.
6 (8) Personal property sold to an Illinois county fair
7 association for use in conducting, operating, or promoting
8 the county fair.
9 (9) Personal property sold to a not-for-profit music or
10 dramatic arts organization that establishes, by proof
11 required by the Department by rule, that it has received an
12 exemption under Section 501(c) (3) of the Internal Revenue
13 Code and that is organized and operated for the presentation
14 of live public performances of musical or theatrical works on
15 a regular basis.
16 (10) Personal property sold by a corporation, society,
17 association, foundation, institution, or organization, other
18 than a limited liability company, that is organized and
19 operated as a not-for-profit service enterprise for the
20 benefit of persons 65 years of age or older if the personal
21 property was not purchased by the enterprise for the purpose
22 of resale by the enterprise.
23 (11) Personal property sold to a governmental body, to a
24 corporation, society, association, foundation, or institution
25 organized and operated exclusively for charitable, religious,
26 or educational purposes, or to a not-for-profit corporation,
27 society, association, foundation, institution, or
28 organization that has no compensated officers or employees
29 and that is organized and operated primarily for the
30 recreation of persons 55 years of age or older. A limited
31 liability company may qualify for the exemption under this
32 paragraph only if the limited liability company is organized
33 and operated exclusively for educational purposes. On and
34 after July 1, 1987, however, no entity otherwise eligible for
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1 this exemption shall make tax-free purchases unless it has an
2 active identification number issued by the Department.
3 (12) Personal property sold to interstate carriers for
4 hire for use as rolling stock moving in interstate commerce
5 or to lessors under leases of one year or longer executed or
6 in effect at the time of purchase by interstate carriers for
7 hire for use as rolling stock moving in interstate commerce
8 and equipment operated by a telecommunications provider,
9 licensed as a common carrier by the Federal Communications
10 Commission, which is permanently installed in or affixed to
11 aircraft moving in interstate commerce.
12 (13) Proceeds from sales to owners, lessors, or shippers
13 of tangible personal property that is utilized by interstate
14 carriers for hire for use as rolling stock moving in
15 interstate commerce and equipment operated by a
16 telecommunications provider, licensed as a common carrier by
17 the Federal Communications Commission, which is permanently
18 installed in or affixed to aircraft moving in interstate
19 commerce.
20 (14) Machinery and equipment that will be used by the
21 purchaser, or a lessee of the purchaser, primarily in the
22 process of manufacturing or assembling tangible personal
23 property for wholesale or retail sale or lease, whether the
24 sale or lease is made directly by the manufacturer or by some
25 other person, whether the materials used in the process are
26 owned by the manufacturer or some other person, or whether
27 the sale or lease is made apart from or as an incident to the
28 seller's engaging in the service occupation of producing
29 machines, tools, dies, jigs, patterns, gauges, or other
30 similar items of no commercial value on special order for a
31 particular purchaser.
32 (15) Proceeds of mandatory service charges separately
33 stated on customers' bills for purchase and consumption of
34 food and beverages, to the extent that the proceeds of the
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1 service charge are in fact turned over as tips or as a
2 substitute for tips to the employees who participate directly
3 in preparing, serving, hosting or cleaning up the food or
4 beverage function with respect to which the service charge is
5 imposed.
6 (16) Petroleum products sold to a purchaser if the
7 seller is prohibited by federal law from charging tax to the
8 purchaser.
9 (17) Tangible personal property sold to a common carrier
10 by rail or motor that receives the physical possession of the
11 property in Illinois and that transports the property, or
12 shares with another common carrier in the transportation of
13 the property, out of Illinois on a standard uniform bill of
14 lading showing the seller of the property as the shipper or
15 consignor of the property to a destination outside Illinois,
16 for use outside Illinois.
17 (18) Legal tender, currency, medallions, or gold or
18 silver coinage issued by the State of Illinois, the
19 government of the United States of America, or the government
20 of any foreign country, and bullion.
21 (19) Oil field exploration, drilling, and production
22 equipment, including (i) rigs and parts of rigs, rotary rigs,
23 cable tool rigs, and workover rigs, (ii) pipe and tubular
24 goods, including casing and drill strings, (iii) pumps and
25 pump-jack units, (iv) storage tanks and flow lines, (v) any
26 individual replacement part for oil field exploration,
27 drilling, and production equipment, and (vi) machinery and
28 equipment purchased for lease; but excluding motor vehicles
29 required to be registered under the Illinois Vehicle Code.
30 (20) Photoprocessing machinery and equipment, including
31 repair and replacement parts, both new and used, including
32 that manufactured on special order, certified by the
33 purchaser to be used primarily for photoprocessing, and
34 including photoprocessing machinery and equipment purchased
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1 for lease.
2 (21) Coal exploration, mining, offhighway hauling,
3 processing, maintenance, and reclamation equipment, including
4 replacement parts and equipment, and including equipment
5 purchased for lease, but excluding motor vehicles required to
6 be registered under the Illinois Vehicle Code.
7 (22) Fuel and petroleum products sold to or used by an
8 air 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 (23) A transaction in which the purchase order is
15 received by a florist who is located outside Illinois, but
16 who has a florist located in Illinois deliver the property to
17 the purchaser or the purchaser's donee in Illinois.
18 (24) Fuel consumed or used in the operation of ships,
19 barges, or vessels that are used primarily in or for the
20 transportation of property or the conveyance of persons for
21 hire on rivers bordering on this State if the fuel is
22 delivered by the seller to the purchaser's barge, ship, or
23 vessel while it is afloat upon that bordering river.
24 (25) A motor vehicle sold in this State to a nonresident
25 even though the motor vehicle is delivered to the nonresident
26 in this State, if the motor vehicle is not to be titled in
27 this State, and if a driveaway decal permit is issued to the
28 motor vehicle as provided in Section 3-603 of the Illinois
29 Vehicle Code or if the nonresident purchaser has vehicle
30 registration plates to transfer to the motor vehicle upon
31 returning to his or her home state. The issuance of the
32 driveaway decal permit or having the out-of-state
33 registration plates to be transferred is prima facie evidence
34 that the motor vehicle will not be titled in this State.
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1 (26) Semen used for artificial insemination of livestock
2 for direct agricultural production.
3 (27) 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 (28) 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 this Act.
17 (29) 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 this Act.
22 (30) 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 donated
25 for disaster relief to be used in a State or federally
26 declared disaster area in Illinois or bordering Illinois by a
27 manufacturer or retailer that is registered in this State to
28 a corporation, society, association, foundation, or
29 institution that has been issued a sales tax exemption
30 identification number by the Department that assists victims
31 of the disaster who reside within the declared disaster area.
32 (31) Beginning with taxable years ending on or after
33 December 31, 1995 and ending with taxable years ending on or
34 before December 31, 2004, personal property that is used in
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1 the performance of infrastructure repairs in this State,
2 including but not limited to municipal roads and streets,
3 access roads, bridges, sidewalks, waste disposal systems,
4 water and sewer line extensions, water distribution and
5 purification facilities, storm water drainage and retention
6 facilities, and sewage treatment facilities, resulting from a
7 State or federally declared disaster in Illinois or bordering
8 Illinois when such repairs are initiated on facilities
9 located in the declared disaster area within 6 months after
10 the disaster.
11 (32) Beginning with taxable years ending on or after
12 December 31, 1998, the amount, if any, of tax that is imposed
13 under Section 4051 of the Internal Revenue Code of 1986 on
14 heavy trucks and trailers. This paragraph is exempt from the
15 provisions of Section 2-70.
16 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
17 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
18 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
19 eff. 6-1-98; 90-552, eff. 12-12-97.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.