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| [ Introduced ] | [ Senate Amendment 001 ] |
90_SB0370eng
35 ILCS 120/2-5 from Ch. 120, par. 441-5
Amends the Retailers' Occupation Tax Act to exempt from
taxation under the Act tangible personal property sold to a
common carrier by motor that receives physical possession of
the property in Illinois and transports it out of Illinois.
Effective immediately.
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1 AN ACT concerning use and occupation taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 3. The Use Tax Act is amended by changing
5 Section 3-55 as follows:
6 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
7 Sec. 3-55. Multistate exemption. To prevent actual or
8 likely multistate taxation, the tax imposed by this Act does
9 not apply to the use of tangible personal property in this
10 State under the following circumstances:
11 (a) The use, in this State, of tangible personal
12 property acquired outside this State by a nonresident
13 individual and brought into this State by the individual for
14 his or her own use while temporarily within this State or
15 while passing through this State.
16 (b) The use, in this State, of tangible personal
17 property by an interstate carrier for hire as rolling stock
18 moving in interstate commerce or by lessors under a lease of
19 one year or longer executed or in effect at the time of
20 purchase of tangible personal property by interstate carriers
21 for-hire for use as rolling stock moving in interstate
22 commerce as long as so used by the interstate carriers
23 for-hire, and equipment operated by a telecommunications
24 provider, licensed as a common carrier by the Federal
25 Communications Commission, which is permanently installed in
26 or affixed to aircraft moving in interstate commerce.
27 (c) The use, in this State, by owners, lessors, or
28 shippers of tangible personal property that is utilized by
29 interstate carriers for hire for use as rolling stock moving
30 in interstate commerce as long as so used by the interstate
31 carriers for hire, and equipment operated by a
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1 telecommunications provider, licensed as a common carrier by
2 the Federal Communications Commission, which is permanently
3 installed in or affixed to aircraft moving in interstate
4 commerce.
5 (d) The use, in this State, of tangible personal
6 property that is acquired outside this State and caused to be
7 brought into this State by a person who has already paid a
8 tax in another State in respect to the sale, purchase, or use
9 of that property, to the extent of the amount of the tax
10 properly due and paid in the other State.
11 (e) The temporary storage, in this State, of tangible
12 personal property that is acquired outside this State and
13 that, after being brought into this State and stored here
14 temporarily, is used solely outside this State or is
15 physically attached to or incorporated into other tangible
16 personal property that is used solely outside this State, or
17 is altered by converting, fabricating, manufacturing,
18 printing, processing, or shaping, and, as altered, is used
19 solely outside this State.
20 (f) The temporary storage in this State of building
21 materials and fixtures that are acquired either in this State
22 or outside this State by an Illinois registered combination
23 retailer and construction contractor, and that the purchaser
24 thereafter uses outside this State by incorporating that
25 property into real estate located outside this State.
26 (g) The use or purchase of tangible personal property by
27 a common carrier by rail or motor that receives the physical
28 possession of the property in Illinois, and that transports
29 the property, or shares with another common carrier in the
30 transportation of the property, out of Illinois on a standard
31 uniform bill of lading showing the seller of the property as
32 the shipper or consignor of the property to a destination
33 outside Illinois, for use outside Illinois.
34 (h) The use, in this State, of a motor vehicle that was
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1 sold in this State to a nonresident, even though the motor
2 vehicle is delivered to the nonresident in this State, if the
3 motor vehicle is not to be titled in this State, and if a
4 driveaway decal permit is issued to the motor vehicle as
5 provided in Section 3-603 of the Illinois Vehicle Code or if
6 the nonresident purchaser has vehicle registration plates to
7 transfer to the motor vehicle upon returning to his or her
8 home state. The issuance of the driveaway decal permit or
9 having the out-of-state registration plates to be transferred
10 shall be prima facie evidence that the motor vehicle will not
11 be titled in this State.
12 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
13 86-953; 86-1394; 86-1475; 87-1263.)
14 Section 5. The Retailers' Occupation Tax Act is amended
15 by changing Section 2-5 as follows:
16 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
17 Sec. 2-5. Exemptions. Gross receipts from proceeds from
18 the sale of the following tangible personal property are
19 exempt from the tax imposed by this Act:
20 (1) Farm chemicals.
21 (2) Farm machinery and equipment, both new and used,
22 including that manufactured on special order, certified by
23 the purchaser to be used primarily for production agriculture
24 or State or federal agricultural programs, including
25 individual replacement parts for the machinery and equipment,
26 and including machinery and equipment purchased for lease,
27 but excluding motor vehicles required to be registered under
28 the Illinois Vehicle Code.
29 (3) Distillation machinery and equipment, sold as a unit
30 or kit, assembled or installed by the retailer, certified by
31 the user to be used only for the production of ethyl alcohol
32 that will be used for consumption as motor fuel or as a
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1 component of motor fuel for the personal use of the user, and
2 not subject to sale or resale.
3 (4) Graphic arts machinery and equipment, including
4 repair and replacement parts, both new and used, and
5 including that manufactured on special order or purchased for
6 lease, certified by the purchaser to be used primarily for
7 graphic arts production.
8 (5) A motor vehicle of the first division, a motor
9 vehicle of the second division that is a self-contained motor
10 vehicle designed or permanently converted to provide living
11 quarters for recreational, camping, or travel use, with
12 direct walk through access to the living quarters from the
13 driver's seat, or a motor vehicle of the second division that
14 is of the van configuration designed for the transportation
15 of not less than 7 nor more than 16 passengers, as defined in
16 Section 1-146 of the Illinois Vehicle Code, that is used for
17 automobile renting, as defined in the Automobile Renting
18 Occupation and Use Tax Act.
19 (6) Personal property sold by a teacher-sponsored
20 student organization affiliated with an elementary or
21 secondary school located in Illinois.
22 (7) Proceeds of that portion of the selling price of a
23 passenger car the sale of which is subject to the Replacement
24 Vehicle Tax.
25 (8) Personal property sold to an Illinois county fair
26 association for use in conducting, operating, or promoting
27 the county fair.
28 (9) Personal property sold to a not-for-profit music or
29 dramatic arts organization that establishes, by proof
30 required by the Department by rule, that it has received an
31 exemption under Section 501(c) (3) of the Internal Revenue
32 Code and that is organized and operated for the presentation
33 of live public performances of musical or theatrical works on
34 a regular basis.
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1 (10) Personal property sold by a corporation, society,
2 association, foundation, institution, or organization, other
3 than a limited liability company, that is organized and
4 operated as a not-for-profit service enterprise for the
5 benefit of persons 65 years of age or older if the personal
6 property was not purchased by the enterprise for the purpose
7 of resale by the enterprise.
8 (11) Personal property sold to a governmental body, to a
9 corporation, society, association, foundation, or institution
10 organized and operated exclusively for charitable, religious,
11 or educational purposes, or to a not-for-profit corporation,
12 society, association, foundation, institution, or
13 organization that has no compensated officers or employees
14 and that is organized and operated primarily for the
15 recreation of persons 55 years of age or older. A limited
16 liability company may qualify for the exemption under this
17 paragraph only if the limited liability company is organized
18 and operated exclusively for educational purposes. On and
19 after July 1, 1987, however, no entity otherwise eligible for
20 this exemption shall make tax-free purchases unless it has an
21 active identification number issued by the Department.
22 (12) Personal property sold to interstate carriers for
23 hire for use as rolling stock moving in interstate commerce
24 or to lessors under leases of one year or longer executed or
25 in effect at the time of purchase by interstate carriers for
26 hire for use as rolling stock moving in interstate commerce
27 and equipment operated by a telecommunications provider,
28 licensed as a common carrier by the Federal Communications
29 Commission, which is permanently installed in or affixed to
30 aircraft moving in interstate commerce.
31 (13) Proceeds from sales to owners, lessors, or shippers
32 of tangible personal property that is utilized by interstate
33 carriers for hire for use as rolling stock moving in
34 interstate commerce and equipment operated by a
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1 telecommunications provider, licensed as a common carrier by
2 the Federal Communications Commission, which is permanently
3 installed in or affixed to aircraft moving in interstate
4 commerce.
5 (14) Machinery and equipment that will be used by the
6 purchaser, or a lessee of the purchaser, primarily in the
7 process of manufacturing or assembling tangible personal
8 property for wholesale or retail sale or lease, whether the
9 sale or lease is made directly by the manufacturer or by some
10 other person, whether the materials used in the process are
11 owned by the manufacturer or some other person, or whether
12 the sale or lease is made apart from or as an incident to the
13 seller's engaging in the service occupation of producing
14 machines, tools, dies, jigs, patterns, gauges, or other
15 similar items of no commercial value on special order for a
16 particular purchaser.
17 (15) Proceeds of mandatory service charges separately
18 stated on customers' bills for purchase and consumption of
19 food and beverages, to the extent that the proceeds of the
20 service charge are in fact turned over as tips or as a
21 substitute for tips to the employees who participate directly
22 in preparing, serving, hosting or cleaning up the food or
23 beverage function with respect to which the service charge is
24 imposed.
25 (16) Petroleum products sold to a purchaser if the
26 seller is prohibited by federal law from charging tax to the
27 purchaser.
28 (17) Tangible personal property sold to a common carrier
29 by rail or motor that receives the physical possession of the
30 property in Illinois and that transports the property, or
31 shares with another common carrier in the transportation of
32 the property, out of Illinois on a standard uniform bill of
33 lading showing the seller of the property as the shipper or
34 consignor of the property to a destination outside Illinois,
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1 for use outside Illinois.
2 (18) Legal tender, currency, medallions, or gold or
3 silver coinage issued by the State of Illinois, the
4 government of the United States of America, or the government
5 of any foreign country, and bullion.
6 (19) Oil field exploration, drilling, and production
7 equipment, including (i) rigs and parts of rigs, rotary rigs,
8 cable tool rigs, and workover rigs, (ii) pipe and tubular
9 goods, including casing and drill strings, (iii) pumps and
10 pump-jack units, (iv) storage tanks and flow lines, (v) any
11 individual replacement part for oil field exploration,
12 drilling, and production equipment, and (vi) machinery and
13 equipment purchased for lease; but excluding motor vehicles
14 required to be registered under the Illinois Vehicle Code.
15 (20) Photoprocessing machinery and equipment, including
16 repair and replacement parts, both new and used, including
17 that manufactured on special order, certified by the
18 purchaser to be used primarily for photoprocessing, and
19 including photoprocessing machinery and equipment purchased
20 for lease.
21 (21) Coal exploration, mining, offhighway hauling,
22 processing, maintenance, and reclamation equipment, including
23 replacement parts and equipment, and including equipment
24 purchased for lease, but excluding motor vehicles required to
25 be registered under the Illinois Vehicle Code.
26 (22) Fuel and petroleum products sold to or used by an
27 air carrier, certified by the carrier to be used for
28 consumption, shipment, or storage in the conduct of its
29 business as an air common carrier, for a flight destined for
30 or returning from a location or locations outside the United
31 States without regard to previous or subsequent domestic
32 stopovers.
33 (23) A transaction in which the purchase order is
34 received by a florist who is located outside Illinois, but
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1 who has a florist located in Illinois deliver the property to
2 the purchaser or the purchaser's donee in Illinois.
3 (24) Fuel consumed or used in the operation of ships,
4 barges, or vessels that are used primarily in or for the
5 transportation of property or the conveyance of persons for
6 hire on rivers bordering on this State if the fuel is
7 delivered by the seller to the purchaser's barge, ship, or
8 vessel while it is afloat upon that bordering river.
9 (25) A motor vehicle sold in this State to a nonresident
10 even though the motor vehicle is delivered to the nonresident
11 in this State, if the motor vehicle is not to be titled in
12 this State, and if a driveaway decal permit is issued to the
13 motor vehicle as provided in Section 3-603 of the Illinois
14 Vehicle Code or if the nonresident purchaser has vehicle
15 registration plates to transfer to the motor vehicle upon
16 returning to his or her home state. The issuance of the
17 driveaway decal permit or having the out-of-state
18 registration plates to be transferred is prima facie evidence
19 that the motor vehicle will not be titled in this State.
20 (26) Semen used for artificial insemination of livestock
21 for direct agricultural production.
22 (27) Horses, or interests in horses, registered with and
23 meeting the requirements of any of the Arabian Horse Club
24 Registry of America, Appaloosa Horse Club, American Quarter
25 Horse Association, United States Trotting Association, or
26 Jockey Club, as appropriate, used for purposes of breeding or
27 racing for prizes.
28 (28) Computers and communications equipment utilized
29 for any hospital purpose and equipment used in the diagnosis,
30 analysis, or treatment of hospital patients sold to a lessor
31 who leases the equipment, under a lease of one year or longer
32 executed or in effect at the time of the purchase, to a
33 hospital that has been issued an active tax exemption
34 identification number by the Department under Section 1g of
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1 this Act.
2 (29) Personal property sold to a lessor who leases the
3 property, under a lease of one year or longer executed or in
4 effect at the time of the purchase, to a governmental body
5 that has been issued an active tax exemption identification
6 number by the Department under Section 1g of this Act.
7 (30) Beginning with taxable years ending on or after
8 December 31, 1995 and ending with taxable years ending on or
9 before December 31, 2004, personal property that is donated
10 for disaster relief to be used in a State or federally
11 declared disaster area in Illinois or bordering Illinois by a
12 manufacturer or retailer that is registered in this State to
13 a corporation, society, association, foundation, or
14 institution that has been issued a sales tax exemption
15 identification number by the Department that assists victims
16 of the disaster who reside within the declared disaster area.
17 (31) Beginning with taxable years ending on or after
18 December 31, 1995 and ending with taxable years ending on or
19 before December 31, 2004, personal property that is used in
20 the performance of infrastructure repairs in this State,
21 including but not limited to municipal roads and streets,
22 access roads, bridges, sidewalks, waste disposal systems,
23 water and sewer line extensions, water distribution and
24 purification facilities, storm water drainage and retention
25 facilities, and sewage treatment facilities, resulting from a
26 State or federally declared disaster in Illinois or bordering
27 Illinois when such repairs are initiated on facilities
28 located in the declared disaster area within 6 months after
29 the disaster.
30 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
31 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
32 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
33 eff. 8-9-96; revised 8-21-96.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.