[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
92_HB2217 LRB9205205SMdv 1 AN ACT concerning taxation. 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 arts 20 or cultural organization that establishes, by proof required 21 by the Department by rule, that it has received an exemption 22 under Section 501(c)(3) of the Internal Revenue Code and that 23 is organized and operated for the presentation or support of 24 arts or cultural programming, activities, or services. These 25 organizations include, but are not limited to, music and 26 dramatic arts organizations such as symphony orchestras and 27 theatrical groups, arts and cultural service organizations, 28 local arts councils, visual arts organizations, and media 29 arts organizations. 30 (4) Personal property purchased by a governmental body, 31 by a corporation, society, association, foundation, or -2- LRB9205205SMdv 1 institution organized and operated exclusively for 2 charitable, religious, or educational purposes, or by a 3 not-for-profit corporation, society, association, foundation, 4 institution, or organization that has no compensated officers 5 or employees and that is organized and operated primarily for 6 the recreation of persons 55 years of age or older. A limited 7 liability company may qualify for the exemption under this 8 paragraph only if the limited liability company is organized 9 and operated exclusively for educational purposes. On and 10 after July 1, 1987, however, no entity otherwise eligible for 11 this exemption shall make tax-free purchases unless it has an 12 active exemption identification number issued by the 13 Department. 14 (5) A passenger car that is a replacement vehicle to the 15 extent that the purchase price of the car is subject to the 16 Replacement Vehicle Tax. 17 (6) Graphic arts machinery and equipment, including 18 repair and replacement parts, both new and used, and 19 including that manufactured on special order, certified by 20 the purchaser to be used primarily for graphic arts 21 production, and including machinery and equipment purchased 22 for lease. 23 (7) Farm chemicals. 24 (8) Legal tender, currency, medallions, or gold or 25 silver coinage issued by the State of Illinois, the 26 government of the United States of America, or the government 27 of any foreign country, and bullion. 28 (9) Personal property purchased from a teacher-sponsored 29 student organization affiliated with an elementary or 30 secondary school located in Illinois. 31 (10) A motor vehicle of the first division, a motor 32 vehicle of the second division that is a self-contained motor 33 vehicle designed or permanently converted to provide living 34 quarters for recreational, camping, or travel use, with -3- LRB9205205SMdv 1 direct walk through to the living quarters from the driver's 2 seat, or a motor vehicle of the second division that is of 3 the van configuration designed for the transportation of not 4 less than 7 nor more than 16 passengers, as defined in 5 Section 1-146 of the Illinois Vehicle Code, that is used for 6 automobile renting, as defined in the Automobile Renting 7 Occupation and Use Tax Act. 8 (11) Farm machinery and equipment, both new and used, 9 including that manufactured on special order, certified by 10 the purchaser to be used primarily for production agriculture 11 or State or federal agricultural programs, including 12 individual replacement parts for the machinery and equipment, 13 including machinery and equipment purchased for lease, and 14 including implements of husbandry defined in Section 1-130 of 15 the Illinois Vehicle Code, farm machinery and agricultural 16 chemical and fertilizer spreaders, and nurse wagons required 17 to be registered under Section 3-809 of the Illinois Vehicle 18 Code, but excluding other motor vehicles required to be 19 registered under the Illinois Vehicle Code. Horticultural 20 polyhouses or hoop houses used for propagating, growing, or 21 overwintering plants shall be considered farm machinery and 22 equipment under this item (11). Agricultural chemical tender 23 tanks and dry boxes shall include units sold separately from 24 a motor vehicle required to be licensed and units sold 25 mounted on a motor vehicle required to be licensed if the 26 selling price of the tender is 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, harvesters, sprayers, planters, 31 seeders, or spreaders. Precision farming equipment includes, 32 but is not limited to, soil testing sensors, computers, 33 monitors, software, global positioning and mapping systems, 34 and other such equipment. -4- LRB9205205SMdv 1 Farm machinery and equipment also includes computers, 2 sensors, software, and related equipment used primarily in 3 the computer-assisted operation of production agriculture 4 facilities, equipment, and activities such as, but not 5 limited to, the collection, monitoring, and correlation of 6 animal and crop data for the purpose of formulating animal 7 diets and agricultural chemicals. This item (11) is exempt 8 from the provisions of Section 3-90. 9 (12) Fuel and petroleum products sold to or used by an 10 air common carrier, certified by the carrier to be used for 11 consumption, shipment, or storage in the conduct of its 12 business as an air common carrier, for a flight destined for 13 or returning from a location or locations outside the United 14 States without regard to previous or subsequent domestic 15 stopovers. 16 (13) Proceeds of mandatory service charges separately 17 stated on customers' bills for the purchase and consumption 18 of food and beverages purchased at retail from a retailer, to 19 the extent that the proceeds of the service charge are in 20 fact turned over as tips or as a substitute for tips to the 21 employees who participate directly in preparing, serving, 22 hosting or cleaning up the food or beverage function with 23 respect to which the service charge is imposed. 24 (14) 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 (15) Photoprocessing machinery and equipment, including 34 repair and replacement parts, both new and used, including -5- LRB9205205SMdv 1 that manufactured on special order, certified by the 2 purchaser to be used primarily for photoprocessing, and 3 including photoprocessing machinery and equipment purchased 4 for lease. 5 (16) 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 (17) Distillation machinery and equipment, sold as a 11 unit or kit, assembled or installed by the retailer, 12 certified by the user to be used only for the production of 13 ethyl alcohol that will be used for consumption as motor fuel 14 or as a component of motor fuel for the personal use of the 15 user, and not subject to sale or resale. 16 (18) Manufacturing and assembling machinery and 17 equipment used primarily in the process of manufacturing or 18 assembling tangible personal property for wholesale or retail 19 sale or lease, whether that sale or lease is made directly by 20 the manufacturer or by some other person, whether the 21 materials used in the process are owned by the manufacturer 22 or some other person, or whether that sale or lease is made 23 apart from or as an incident to the seller's engaging in the 24 service occupation of producing machines, tools, dies, jigs, 25 patterns, gauges, or other similar items of no commercial 26 value on special order for a particular purchaser. 27 (19) Personal property delivered to a purchaser or 28 purchaser's donee inside Illinois when the purchase order for 29 that personal property was received by a florist located 30 outside Illinois who has a florist located inside Illinois 31 deliver the personal property. 32 (20) Semen used for artificial insemination of livestock 33 for direct agricultural production. 34 (21) Horses, or interests in horses, registered with and -6- LRB9205205SMdv 1 meeting the requirements of any of the Arabian Horse Club 2 Registry of America, Appaloosa Horse Club, American Quarter 3 Horse Association, United States Trotting Association, or 4 Jockey Club, as appropriate, used for purposes of breeding or 5 racing for prizes. 6 (22) Computers and communications equipment utilized for 7 any hospital purpose and equipment used in the diagnosis, 8 analysis, or treatment of hospital patients purchased by a 9 lessor who leases the equipment, under a lease of one year or 10 longer executed or in effect at the time the lessor would 11 otherwise be subject to the tax imposed by this Act, to a 12 hospital that has been issued an active tax exemption 13 identification number by the Department under Section 1g of 14 the Retailers' Occupation Tax Act. If the equipment is 15 leased in a manner that does not qualify for this exemption 16 or is used in any other non-exempt manner, the lessor shall 17 be liable for the tax imposed under this Act or the Service 18 Use Tax Act, as the case may be, based on the fair market 19 value of the property at the time the non-qualifying use 20 occurs. No lessor shall collect or attempt to collect an 21 amount (however designated) that purports to reimburse that 22 lessor for the tax imposed by this Act or the Service Use Tax 23 Act, as the case may be, if the tax has not been paid by the 24 lessor. If a lessor improperly collects any such amount from 25 the lessee, the lessee shall have a legal right to claim a 26 refund of that amount from the lessor. If, however, that 27 amount is not refunded to the lessee for any reason, the 28 lessor is liable to pay that amount to the Department. 29 (23) Personal property purchased by a lessor who leases 30 the property, under a lease of one year or longer executed 31 or in effect at the time the lessor would otherwise be 32 subject to the tax imposed by this Act, to a governmental 33 body that has been issued an active sales tax exemption 34 identification number by the Department under Section 1g of -7- LRB9205205SMdv 1 the Retailers' Occupation Tax Act. If the property is leased 2 in a manner that does not qualify for this exemption or used 3 in any other non-exempt manner, the lessor shall be liable 4 for the tax imposed under this Act or the Service Use Tax 5 Act, as the case may be, based on the fair market value of 6 the property at the time the non-qualifying use occurs. No 7 lessor shall collect or attempt to collect an amount (however 8 designated) that purports to reimburse that lessor for the 9 tax imposed by this Act or the Service Use Tax Act, as the 10 case may be, if the tax has not been paid by the lessor. If 11 a lessor improperly collects any such amount from the lessee, 12 the lessee shall have a legal right to claim a refund of that 13 amount from the lessor. If, however, that amount is not 14 refunded to the lessee for any reason, the lessor is liable 15 to pay that amount to the Department. 16 (24) Beginning with taxable years ending on or after 17 December 31, 1995 and ending with taxable years ending on or 18 before December 31, 2004, personal property that is donated 19 for disaster relief to be used in a State or federally 20 declared disaster area in Illinois or bordering Illinois by a 21 manufacturer or retailer that is registered in this State to 22 a corporation, society, association, foundation, or 23 institution that has been issued a sales tax exemption 24 identification number by the Department that assists victims 25 of the disaster who reside within the declared disaster area. 26 (25) Beginning with taxable years ending on or after 27 December 31, 1995 and ending with taxable years ending on or 28 before December 31, 2004, personal property that is used in 29 the performance of infrastructure repairs in this State, 30 including but not limited to municipal roads and streets, 31 access roads, bridges, sidewalks, waste disposal systems, 32 water and sewer line extensions, water distribution and 33 purification facilities, storm water drainage and retention 34 facilities, and sewage treatment facilities, resulting from a -8- LRB9205205SMdv 1 State or federally declared disaster in Illinois or bordering 2 Illinois when such repairs are initiated on facilities 3 located in the declared disaster area within 6 months after 4 the disaster. 5 (26) Beginning July 1, 1999, game or game birds 6 purchased at a "game breeding and hunting preserve area" or 7 an "exotic game hunting area" as those terms are used in the 8 Wildlife Code or at a hunting enclosure approved through 9 rules adopted by the Department of Natural Resources. This 10 paragraph is exempt from the provisions of Section 3-90. 11 (27) A motor vehicle, as that term is defined in Section 12 1-146 of the Illinois Vehicle Code, that is donated to a 13 corporation, limited liability company, society, association, 14 foundation, or institution that is determined by the 15 Department to be organized and operated exclusively for 16 educational purposes. For purposes of this exemption, "a 17 corporation, limited liability company, society, association, 18 foundation, or institution organized and operated exclusively 19 for educational purposes" means all tax-supported public 20 schools, private schools that offer systematic instruction in 21 useful branches of learning by methods common to public 22 schools and that compare favorably in their scope and 23 intensity with the course of study presented in tax-supported 24 schools, and vocational or technical schools or institutes 25 organized and operated exclusively to provide a course of 26 study of not less than 6 weeks duration and designed to 27 prepare individuals to follow a trade or to pursue a manual, 28 technical, mechanical, industrial, business, or commercial 29 occupation. 30 (28) Beginning January 1, 2000, personal property, 31 including food, purchased through fundraising events for the 32 benefit of a public or private elementary or secondary 33 school, a group of those schools, or one or more school 34 districts if the events are sponsored by an entity recognized -9- LRB9205205SMdv 1 by the school district that consists primarily of volunteers 2 and includes parents and teachers of the school children. 3 This paragraph does not apply to fundraising events (i) for 4 the benefit of private home instruction or (ii) for which the 5 fundraising entity purchases the personal property sold at 6 the events from another individual or entity that sold the 7 property for the purpose of resale by the fundraising entity 8 and that profits from the sale to the fundraising entity. 9 This paragraph is exempt from the provisions of Section 3-90. 10 (29) Beginning January 1, 2000, new or used automatic 11 vending machines that prepare and serve hot food and 12 beverages, including coffee, soup, and other items, and 13 replacement parts for these machines. This paragraph is 14 exempt from the provisions of Section 3-90. 15 (30) Food for human consumption that is to be consumed 16 off the premises where it is sold (other than alcoholic 17 beverages, soft drinks, and food that has been prepared for 18 immediate consumption) and prescription and nonprescription 19 medicines, drugs, medical appliances, and insulin, urine 20 testing materials, syringes, and needles used by diabetics, 21 for human use, when purchased for use by a person receiving 22 medical assistance under Article 5 of the Illinois Public Aid 23 Code who resides in a licensed long-term care facility, as 24 defined in the Nursing Home Care Act. 25 (31) Beginning on the effective date of this amendatory 26 Act of the 92nd General Assembly and ending 10 years after 27 the effective date of this amendatory Act of the 92nd General 28 Assembly, production related tangible personal property and 29 machinery and equipment, including repair and replacement 30 parts, both new and used, and including those items 31 manufactured on special order or purchased for lease, 32 certified by the purchaser to be essential to and used in the 33 integrated process of the production of electricity by an 34 eligible facility owned, operated, or leased by an exempt -10- LRB9205205SMdv 1 wholesale generator. "Eligible facility" and "exempt 2 wholesale generator" shall mean "eligible facility" and 3 "exempt wholesale generator" as defined in Section 32 of the 4 Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a, 5 in effect as of the date of this amendatory Act of the 92nd 6 General Assembly. "Machinery" includes mechanical machines 7 and components of those machines that directly contribute to 8 or are directly used in or essential to the process of the 9 production of electricity. "Equipment" includes an 10 independent device or tool separate from machinery but 11 essential to an integrated electricity generation process; 12 including pipes of any kind used in the process of the 13 production of electricity; computers used primarily in 14 operating exempt machinery; any subunit or assembly 15 comprising a component of any machinery or auxiliary, 16 adjunct, or attachment parts of machinery, and any parts that 17 require periodic replacement in the course of normal 18 operation; but does not include hand tools. "Production 19 related tangible personal property" means all tangible 20 personal property directly used in or essential to the 21 process of the production of electricity including, but not 22 limited to, tangible personal property used in activities 23 such as preproduction material handling, receiving, quality 24 control, inventory control, storage, staging, and piping or 25 lines necessary for the transportation of water, natural gas, 26 steam, and similar items to and from an eligible facility for 27 use in the process of the production of electricity. This 28 paragraph (31) shall apply also to machinery and equipment 29 used in the general maintenance or repair of exempt machinery 30 and equipment. This paragraph is solely for the purpose of 31 determining whether the production related tangible personal 32 property defined in this paragraph is exempt from the tax 33 imposed by this Act. Nothing in this paragraph, including, 34 but not limited to, any definitions set forth in this -11- LRB9205205SMdv 1 paragraph, shall be construed, applied, or relied upon in any 2 way to ascertain whether the property exempt from the tax 3 imposed by this Act is real property or personal property for 4 the purpose of determining whether the property is subject to 5 ad valorem taxes on real property or to any other taxes. 6 This exemption does not apply to any additional tax imposed 7 by the Board of Directors of the Regional Transportation 8 Authority under Section 4.03 of the Regional Transportation 9 Authority Act. 10 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 11 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 12 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 13 eff. 8-20-99; 91-901, eff. 1-1-01.) 14 Section 10. The Service Use Tax Act is amended by 15 changing Section 3-5 as follows: 16 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 17 Sec. 3-5. Exemptions. Use of the following tangible 18 personal property is exempt from the tax imposed by this Act: 19 (1) Personal property purchased from a corporation, 20 society, association, foundation, institution, or 21 organization, other than a limited liability company, that is 22 organized and operated as a not-for-profit service enterprise 23 for the benefit of persons 65 years of age or older if the 24 personal property was not purchased by the enterprise for the 25 purpose of resale by the enterprise. 26 (2) Personal property purchased by a non-profit Illinois 27 county fair association for use in conducting, operating, or 28 promoting the county fair. 29 (3) Personal property purchased by a not-for-profit arts 30 or cultural organization that establishes, by proof required 31 by the Department by rule, that it has received an exemption 32 under Section 501(c)(3) of the Internal Revenue Code and that -12- LRB9205205SMdv 1 is organized and operated for the presentation or support of 2 arts or cultural programming, activities, or services. These 3 organizations include, but are not limited to, music and 4 dramatic arts organizations such as symphony orchestras and 5 theatrical groups, arts and cultural service organizations, 6 local arts councils, visual arts organizations, and media 7 arts organizations. 8 (4) Legal tender, currency, medallions, or gold or 9 silver coinage issued by the State of Illinois, the 10 government of the United States of America, or the government 11 of any foreign country, and bullion. 12 (5) Graphic arts machinery and equipment, including 13 repair and replacement parts, both new and used, and 14 including that manufactured on special order or purchased for 15 lease, certified by the purchaser to be used primarily for 16 graphic arts production. 17 (6) Personal property purchased from a teacher-sponsored 18 student organization affiliated with an elementary or 19 secondary school located in Illinois. 20 (7) Farm machinery and equipment, both new and used, 21 including that manufactured on special order, certified by 22 the purchaser to be used primarily for production agriculture 23 or State or federal agricultural programs, including 24 individual replacement parts for the machinery and equipment, 25 including machinery and equipment purchased for lease, and 26 including implements of husbandry defined in Section 1-130 of 27 the Illinois Vehicle Code, farm machinery and agricultural 28 chemical and fertilizer spreaders, and nurse wagons required 29 to be registered under Section 3-809 of the Illinois Vehicle 30 Code, but excluding other motor vehicles required to be 31 registered under the Illinois Vehicle Code. Horticultural 32 polyhouses or hoop houses used for propagating, growing, or 33 overwintering plants shall be considered farm machinery and 34 equipment under this item (7). Agricultural chemical tender -13- LRB9205205SMdv 1 tanks and dry boxes shall include units sold separately from 2 a motor vehicle required to be licensed and units sold 3 mounted on a motor vehicle required to be licensed if the 4 selling price of the tender is separately stated. 5 Farm machinery and equipment shall include precision 6 farming equipment that is installed or purchased to be 7 installed on farm machinery and equipment including, but not 8 limited to, tractors, harvesters, sprayers, planters, 9 seeders, or spreaders. Precision farming equipment includes, 10 but is not limited to, soil testing sensors, computers, 11 monitors, software, global positioning and mapping systems, 12 and other such equipment. 13 Farm machinery and equipment also includes computers, 14 sensors, software, and related equipment used primarily in 15 the computer-assisted operation of production agriculture 16 facilities, equipment, and activities such as, but not 17 limited to, the collection, monitoring, and correlation of 18 animal and crop data for the purpose of formulating animal 19 diets and agricultural chemicals. This item (7) is exempt 20 from the provisions of Section 3-553-75. 21 (8) Fuel and petroleum products sold to or used by an 22 air common carrier, certified by the carrier to be used for 23 consumption, shipment, or storage in the conduct of its 24 business as an air common carrier, for a flight destined for 25 or returning from a location or locations outside the United 26 States without regard to previous or subsequent domestic 27 stopovers. 28 (9) Proceeds of mandatory service charges separately 29 stated on customers' bills for the purchase and consumption 30 of food and beverages acquired as an incident to the purchase 31 of a service from a serviceman, to the extent that the 32 proceeds of the service charge are in fact turned over as 33 tips or as a substitute for tips to the employees who 34 participate directly in preparing, serving, hosting or -14- LRB9205205SMdv 1 cleaning up the food or beverage function with respect to 2 which the service charge is imposed. 3 (10) Oil field exploration, drilling, and production 4 equipment, including (i) rigs and parts of rigs, rotary rigs, 5 cable tool rigs, and workover rigs, (ii) pipe and tubular 6 goods, including casing and drill strings, (iii) pumps and 7 pump-jack units, (iv) storage tanks and flow lines, (v) any 8 individual replacement part for oil field exploration, 9 drilling, and production equipment, and (vi) machinery and 10 equipment purchased for lease; but excluding motor vehicles 11 required to be registered under the Illinois Vehicle Code. 12 (11) Proceeds from the sale of photoprocessing machinery 13 and equipment, including repair and replacement parts, both 14 new and used, including that manufactured on special order, 15 certified by the purchaser to be used primarily for 16 photoprocessing, and including photoprocessing machinery and 17 equipment purchased for lease. 18 (12) Coal exploration, mining, offhighway hauling, 19 processing, maintenance, and reclamation equipment, including 20 replacement parts and equipment, and including equipment 21 purchased for lease, but excluding motor vehicles required to 22 be registered under the Illinois Vehicle Code. 23 (13) Semen used for artificial insemination of livestock 24 for direct agricultural production. 25 (14) Horses, or interests in horses, registered with and 26 meeting the requirements of any of the Arabian Horse Club 27 Registry of America, Appaloosa Horse Club, American Quarter 28 Horse Association, United States Trotting Association, or 29 Jockey Club, as appropriate, used for purposes of breeding or 30 racing for prizes. 31 (15) Computers and communications equipment utilized for 32 any hospital purpose and equipment used in the diagnosis, 33 analysis, or treatment of hospital patients purchased by a 34 lessor who leases the equipment, under a lease of one year or -15- LRB9205205SMdv 1 longer executed or in effect at the time the lessor would 2 otherwise be subject to the tax imposed by this Act, to a 3 hospital that has been issued an active tax exemption 4 identification number by the Department under Section 1g of 5 the Retailers' Occupation Tax Act. If the equipment is leased 6 in a manner that does not qualify for this exemption or is 7 used in any other non-exempt manner, the lessor shall be 8 liable for the tax imposed under this Act or the Use Tax Act, 9 as the case may be, based on the fair market value of the 10 property at the time the non-qualifying use occurs. No 11 lessor shall collect or attempt to collect an amount (however 12 designated) that purports to reimburse that lessor for the 13 tax imposed by this Act or the Use Tax Act, as the case may 14 be, if the tax has not been paid by the lessor. If a lessor 15 improperly collects any such amount from the lessee, the 16 lessee shall have a legal right to claim a refund of that 17 amount from the lessor. If, however, that amount is not 18 refunded to the lessee for any reason, the lessor is liable 19 to pay that amount to the Department. 20 (16) Personal property purchased by a lessor who leases 21 the property, under a lease of one year or longer executed or 22 in effect at the time the lessor would otherwise be subject 23 to the tax imposed by this Act, to a governmental body that 24 has been issued an active tax exemption identification number 25 by the Department under Section 1g of the Retailers' 26 Occupation Tax Act. If the property is leased in a manner 27 that does not qualify for this exemption or is used in any 28 other non-exempt manner, the lessor shall be liable for the 29 tax imposed under this Act or the Use Tax Act, as the case 30 may be, based on the fair market value of the property at the 31 time the non-qualifying use occurs. No lessor shall collect 32 or attempt to collect an amount (however designated) that 33 purports to reimburse that lessor for the tax imposed by this 34 Act or the Use Tax Act, as the case may be, if the tax has -16- LRB9205205SMdv 1 not been paid by the lessor. If a lessor improperly collects 2 any such amount from the lessee, the lessee shall have a 3 legal right to claim a refund of that amount from the lessor. 4 If, however, that amount is not refunded to the lessee for 5 any reason, the lessor is liable to pay that amount to the 6 Department. 7 (17) 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 (18) 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 (19) Beginning July 1, 1999, game or game birds 31 purchased at a "game breeding and hunting preserve area" or 32 an "exotic game hunting area" as those terms are used in the 33 Wildlife Code or at a hunting enclosure approved through 34 rules adopted by the Department of Natural Resources. This -17- LRB9205205SMdv 1 paragraph is exempt from the provisions of Section 3-75. 2 (20)(19)A motor vehicle, as that term is defined in 3 Section 1-146 of the Illinois Vehicle Code, that is donated 4 to a corporation, limited liability company, society, 5 association, foundation, or institution that is determined by 6 the Department to be organized and operated exclusively for 7 educational purposes. For purposes of this exemption, "a 8 corporation, limited liability company, society, association, 9 foundation, or institution organized and operated exclusively 10 for educational purposes" means all tax-supported public 11 schools, private schools that offer systematic instruction in 12 useful branches of learning by methods common to public 13 schools and that compare favorably in their scope and 14 intensity with the course of study presented in tax-supported 15 schools, and vocational or technical schools or institutes 16 organized and operated exclusively to provide a course of 17 study of not less than 6 weeks duration and designed to 18 prepare individuals to follow a trade or to pursue a manual, 19 technical, mechanical, industrial, business, or commercial 20 occupation. 21 (21)(20)Beginning January 1, 2000, personal property, 22 including food, purchased through fundraising events for the 23 benefit of a public or private elementary or secondary 24 school, a group of those schools, or one or more school 25 districts if the events are sponsored by an entity recognized 26 by the school district that consists primarily of volunteers 27 and includes parents and teachers of the school children. 28 This paragraph does not apply to fundraising events (i) for 29 the benefit of private home instruction or (ii) for which the 30 fundraising entity purchases the personal property sold at 31 the events from another individual or entity that sold the 32 property for the purpose of resale by the fundraising entity 33 and that profits from the sale to the fundraising entity. 34 This paragraph is exempt from the provisions of Section 3-75. -18- LRB9205205SMdv 1 (22)(19)Beginning January 1, 2000, new or used 2 automatic vending machines that prepare and serve hot food 3 and beverages, including coffee, soup, and other items, and 4 replacement parts for these machines. This paragraph is 5 exempt from the provisions of Section 3-75. 6 (23) Beginning on the effective date of this amendatory 7 Act of the 92nd General Assembly and ending 10 years after 8 the effective date of this amendatory Act of the 92nd General 9 Assembly, production related tangible personal property and 10 machinery and equipment, including repair and replacement 11 parts, both new and used, and including those items 12 manufactured on special order or purchased for lease, 13 certified by the purchaser to be essential to and used in the 14 integrated process of the production of electricity by an 15 eligible facility owned, operated, or leased by an exempt 16 wholesale generator. "Eligible facility" and "exempt 17 wholesale generator" shall mean "eligible facility" and 18 "exempt wholesale generator" as defined in Section 32 of the 19 Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a, 20 in effect as of the date of this amendatory Act of the 92nd 21 General Assembly. "Machinery" includes mechanical machines 22 and components of those machines that directly contribute to 23 or are directly used in or essential to the process of the 24 production of electricity. "Equipment" includes an 25 independent device or tool separate from machinery but 26 essential to an integrated electricity generation process; 27 including pipes of any kind used in the process of the 28 production of electricity; computers used primarily in 29 operating exempt machinery; any subunit or assembly 30 comprising a component of any machinery or auxiliary, 31 adjunct, or attachment parts of machinery, and any parts that 32 require periodic replacement in the course of normal 33 operation; but does not include hand tools. "Production 34 related tangible personal property" means all tangible -19- LRB9205205SMdv 1 personal property directly used in or essential to the 2 process of the production of electricity including, but not 3 limited to, tangible personal property used in activities 4 such as preproduction material handling, receiving, quality 5 control, inventory control, storage, staging, and piping or 6 lines necessary for the transportation of water, natural gas, 7 steam, and similar items to and from an eligible facility for 8 use in the process of the production of electricity. This 9 paragraph (23) shall apply also to machinery and equipment 10 used in the general maintenance or repair of exempt machinery 11 and equipment. This paragraph is solely for the purpose of 12 determining whether the production related tangible personal 13 property defined in this paragraph is exempt from the tax 14 imposed by this Act. Nothing in this paragraph, including, 15 but not limited to, any definitions set forth in this 16 paragraph, shall be construed, applied, or relied upon in any 17 way to ascertain whether the property exempt from the tax 18 imposed by this Act is real property or personal property for 19 the purpose of determining whether the property is subject to 20 ad valorem taxes on real property or to any other taxes. This 21 exemption does not apply to any additional tax imposed by the 22 Board of Directors of the Regional Transportation Authority 23 under Section 4.03 of the Regional Transportation Authority 24 Act. 25 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 26 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 27 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 28 eff. 8-20-99; revised 9-29-99.) 29 Section 15. The Service Occupation Tax Act is amended by 30 changing Section 3-5 as follows: 31 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 32 Sec. 3-5. Exemptions. The following tangible personal -20- LRB9205205SMdv 1 property is exempt from the tax imposed by this Act: 2 (1) Personal property sold by a corporation, society, 3 association, foundation, institution, or organization, other 4 than a limited liability company, that is organized and 5 operated as a not-for-profit service enterprise for the 6 benefit of persons 65 years of age or older if the personal 7 property was not purchased by the enterprise for the purpose 8 of resale by the enterprise. 9 (2) Personal property purchased by a not-for-profit 10 Illinois county fair association for use in conducting, 11 operating, or promoting the county fair. 12 (3) Personal property purchased by any not-for-profit 13 arts or cultural organization that establishes, by proof 14 required by the Department by rule, that it has received an 15 exemption under Section 501(c)(3) of the Internal Revenue 16 Code and that is organized and operated for the presentation 17 or support of arts or cultural programming, activities, or 18 services. These organizations include, but are not limited 19 to, music and dramatic arts organizations such as symphony 20 orchestras and theatrical groups, arts and cultural service 21 organizations, local arts councils, visual arts 22 organizations, and media arts organizations. 23 (4) Legal tender, currency, medallions, or gold or 24 silver coinage issued by the State of Illinois, the 25 government of the United States of America, or the government 26 of any foreign country, and bullion. 27 (5) Graphic arts machinery and equipment, including 28 repair and replacement parts, both new and used, and 29 including that manufactured on special order or purchased for 30 lease, certified by the purchaser to be used primarily for 31 graphic arts production. 32 (6) Personal property sold by a teacher-sponsored 33 student organization affiliated with an elementary or 34 secondary school located in Illinois. -21- LRB9205205SMdv 1 (7) 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 including machinery and equipment purchased for lease, and 7 including implements of husbandry defined in Section 1-130 of 8 the Illinois Vehicle Code, farm machinery and agricultural 9 chemical and fertilizer spreaders, and nurse wagons required 10 to be registered under Section 3-809 of the Illinois Vehicle 11 Code, but excluding other motor vehicles required to be 12 registered under the Illinois Vehicle Code. Horticultural 13 polyhouses or hoop houses used for propagating, growing, or 14 overwintering plants shall be considered farm machinery and 15 equipment under this item (7). Agricultural chemical tender 16 tanks and dry boxes shall include units sold separately from 17 a motor vehicle required to be licensed and units sold 18 mounted on a motor vehicle required to be licensed if the 19 selling price of the tender is separately stated. 20 Farm machinery and equipment shall include precision 21 farming equipment that is installed or purchased to be 22 installed on farm machinery and equipment including, but not 23 limited to, tractors, harvesters, sprayers, planters, 24 seeders, or spreaders. Precision farming equipment includes, 25 but is not limited to, soil testing sensors, computers, 26 monitors, software, global positioning and mapping systems, 27 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 -22- LRB9205205SMdv 1 from the provisions of Section 3-55. 2 (8) Fuel and petroleum products sold to or used by an 3 air common carrier, certified by the carrier to be used for 4 consumption, shipment, or storage in the conduct of its 5 business as an air common carrier, for a flight destined for 6 or returning from a location or locations outside the United 7 States without regard to previous or subsequent domestic 8 stopovers. 9 (9) Proceeds of mandatory service charges separately 10 stated on customers' bills for the purchase and consumption 11 of food and beverages, to the extent that the proceeds of the 12 service charge are in fact turned over as tips or as a 13 substitute for tips to the employees who participate directly 14 in preparing, serving, hosting or cleaning up the food or 15 beverage function with respect to which the service charge is 16 imposed. 17 (10) Oil field exploration, drilling, and production 18 equipment, including (i) rigs and parts of rigs, rotary rigs, 19 cable tool rigs, and workover rigs, (ii) pipe and tubular 20 goods, including casing and drill strings, (iii) pumps and 21 pump-jack units, (iv) storage tanks and flow lines, (v) any 22 individual replacement part for oil field exploration, 23 drilling, and production equipment, and (vi) machinery and 24 equipment purchased for lease; but excluding motor vehicles 25 required to be registered under the Illinois Vehicle Code. 26 (11) Photoprocessing machinery and equipment, including 27 repair and replacement parts, both new and used, including 28 that manufactured on special order, certified by the 29 purchaser to be used primarily for photoprocessing, and 30 including photoprocessing machinery and equipment purchased 31 for lease. 32 (12) Coal exploration, mining, offhighway hauling, 33 processing, maintenance, and reclamation equipment, including 34 replacement parts and equipment, and including equipment -23- LRB9205205SMdv 1 purchased for lease, but excluding motor vehicles required to 2 be registered under the Illinois Vehicle Code. 3 (13) Food for human consumption that is to be consumed 4 off the premises where it is sold (other than alcoholic 5 beverages, soft drinks and food that has been prepared for 6 immediate consumption) and prescription and non-prescription 7 medicines, drugs, medical appliances, and insulin, urine 8 testing materials, syringes, and needles used by diabetics, 9 for human use, when purchased for use by a person receiving 10 medical assistance under Article 5 of the Illinois Public Aid 11 Code who resides in a licensed long-term care facility, as 12 defined in the Nursing Home Care Act. 13 (14) Semen used for artificial insemination of livestock 14 for direct agricultural production. 15 (15) Horses, or interests in horses, registered with and 16 meeting the requirements of any of the Arabian Horse Club 17 Registry of America, Appaloosa Horse Club, American Quarter 18 Horse Association, United States Trotting Association, or 19 Jockey Club, as appropriate, used for purposes of breeding or 20 racing for prizes. 21 (16) Computers and communications equipment utilized for 22 any hospital purpose and equipment used in the diagnosis, 23 analysis, or treatment of hospital patients sold to a lessor 24 who leases the equipment, under a lease of one year or longer 25 executed or in effect at the time of the purchase, to a 26 hospital that has been issued an active tax exemption 27 identification number by the Department under Section 1g of 28 the Retailers' Occupation Tax Act. 29 (17) Personal property sold to a lessor who leases the 30 property, under a lease of one year or longer executed or in 31 effect at the time of the purchase, to a governmental body 32 that has been issued an active tax exemption identification 33 number by the Department under Section 1g of the Retailers' 34 Occupation Tax Act. -24- LRB9205205SMdv 1 (18) Beginning with taxable years ending on or after 2 December 31, 1995 and ending with taxable years ending on or 3 before December 31, 2004, personal property that is donated 4 for disaster relief to be used in a State or federally 5 declared disaster area in Illinois or bordering Illinois by a 6 manufacturer or retailer that is registered in this State to 7 a corporation, society, association, foundation, or 8 institution that has been issued a sales tax exemption 9 identification number by the Department that assists victims 10 of the disaster who reside within the declared disaster area. 11 (19) Beginning with taxable years ending on or after 12 December 31, 1995 and ending with taxable years ending on or 13 before December 31, 2004, personal property that is used in 14 the performance of infrastructure repairs in this State, 15 including but not limited to municipal roads and streets, 16 access roads, bridges, sidewalks, waste disposal systems, 17 water and sewer line extensions, water distribution and 18 purification facilities, storm water drainage and retention 19 facilities, and sewage treatment facilities, resulting from a 20 State or federally declared disaster in Illinois or bordering 21 Illinois when such repairs are initiated on facilities 22 located in the declared disaster area within 6 months after 23 the disaster. 24 (20) Beginning July 1, 1999, game or game birds sold at 25 a "game breeding and hunting preserve area" or an "exotic 26 game hunting area" as those terms are used in the Wildlife 27 Code or at a hunting enclosure approved through rules adopted 28 by the Department of Natural Resources. This paragraph is 29 exempt from the provisions of Section 3-55. 30 (21)(20)A motor vehicle, as that term is defined in 31 Section 1-146 of the Illinois Vehicle Code, that is donated 32 to a corporation, limited liability company, society, 33 association, foundation, or institution that is determined by 34 the Department to be organized and operated exclusively for -25- LRB9205205SMdv 1 educational purposes. For purposes of this exemption, "a 2 corporation, limited liability company, society, association, 3 foundation, or institution organized and operated exclusively 4 for educational purposes" means all tax-supported public 5 schools, private schools that offer systematic instruction in 6 useful branches of learning by methods common to public 7 schools and that compare favorably in their scope and 8 intensity with the course of study presented in tax-supported 9 schools, and vocational or technical schools or institutes 10 organized and operated exclusively to provide a course of 11 study of not less than 6 weeks duration and designed to 12 prepare individuals to follow a trade or to pursue a manual, 13 technical, mechanical, industrial, business, or commercial 14 occupation. 15 (22)(21)Beginning January 1, 2000, personal property, 16 including food, purchased through fundraising events for the 17 benefit of a public or private elementary or secondary 18 school, a group of those schools, or one or more school 19 districts if the events are sponsored by an entity recognized 20 by the school district that consists primarily of volunteers 21 and includes parents and teachers of the school children. 22 This paragraph does not apply to fundraising events (i) for 23 the benefit of private home instruction or (ii) for which the 24 fundraising entity purchases the personal property sold at 25 the events from another individual or entity that sold the 26 property for the purpose of resale by the fundraising entity 27 and that profits from the sale to the fundraising entity. 28 This paragraph is exempt from the provisions of Section 3-55. 29 (23)(20)Beginning January 1, 2000, new or used 30 automatic vending machines that prepare and serve hot food 31 and beverages, including coffee, soup, and other items, and 32 replacement parts for these machines. This paragraph is 33 exempt from the provisions of Section 3-55. 34 (24) Beginning on the effective date of this amendatory -26- LRB9205205SMdv 1 Act of the 92nd General Assembly and ending 10 years after 2 the effective date of this amendatory Act of the 92nd General 3 Assembly, production related tangible personal property and 4 machinery and equipment, including repair and replacement 5 parts, both new and used, and including those items 6 manufactured on special order or purchased for lease, 7 certified by the purchaser to be essential to and used in the 8 integrated process of the production of electricity by an 9 eligible facility owned, operated, or leased by an exempt 10 wholesale generator. "Eligible facility" and "exempt 11 wholesale generator" shall mean "eligible facility" and 12 "exempt wholesale generator" as defined in Section 32 of the 13 Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a, 14 in effect as of the date of this amendatory Act of the 92nd 15 General Assembly. "Machinery" includes mechanical machines 16 and components of those machines that directly contribute to 17 or are directly used in or essential to the process of the 18 production of electricity. "Equipment" includes an 19 independent device or tool separate from machinery but 20 essential to an integrated electricity generation process; 21 including pipes of any kind used in the process of the 22 production of electricity; computers used primarily in 23 operating exempt machinery; any subunit or assembly 24 comprising a component of any machinery or auxiliary, 25 adjunct, or attachment parts of machinery, and any parts that 26 require periodic replacement in the course of normal 27 operation; but does not include hand tools. "Production 28 related tangible personal property" means all tangible 29 personal property directly used in or essential to the 30 process of the production of electricity including, but not 31 limited to, tangible personal property used in activities 32 such as preproduction material handling, receiving, quality 33 control, inventory control, storage, staging, and piping or 34 lines necessary for the transportation of water, natural gas, -27- LRB9205205SMdv 1 steam, and similar items to and from an eligible facility for 2 use in the process of the production of electricity. This 3 paragraph (24) shall apply also to machinery and equipment 4 used in the general maintenance or repair of exempt machinery 5 and equipment. This paragraph is solely for the purpose of 6 determining whether the production related tangible personal 7 property defined in this paragraph is exempt from the tax 8 imposed by this Act. Nothing in this paragraph, including, 9 but not limited to, any definitions set forth in this 10 paragraph, shall be construed, applied, or relied upon in any 11 way to ascertain whether the property exempt from the tax 12 imposed by this Act is real property or personal property for 13 the purpose of determining whether the property is subject to 14 ad valorem taxes on real property or to any other taxes. This 15 exemption does not apply to any additional tax imposed by the 16 Board of Directors of the Regional Transportation Authority 17 under Section 4.03 of the Regional Transportation Authority 18 Act. 19 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 20 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 21 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, 22 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.) 23 Section 20. The Retailers' Occupation Tax Act is amended 24 by changing Section 2-5 as follows: 25 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 26 Sec. 2-5. Exemptions. Gross receipts from proceeds from 27 the sale of the following tangible personal property are 28 exempt from the tax imposed by this Act: 29 (1) Farm chemicals. 30 (2) Farm machinery and equipment, both new and used, 31 including that manufactured on special order, certified by 32 the purchaser to be used primarily for production agriculture -28- LRB9205205SMdv 1 or State or federal agricultural programs, including 2 individual replacement parts for the machinery and equipment, 3 including machinery and equipment purchased for lease, and 4 including implements of husbandry defined in Section 1-130 of 5 the Illinois Vehicle Code, farm machinery and agricultural 6 chemical and fertilizer spreaders, and nurse wagons required 7 to be registered under Section 3-809 of the Illinois Vehicle 8 Code, but excluding other motor vehicles required to be 9 registered under the Illinois Vehicle Code. Horticultural 10 polyhouses or hoop houses used for propagating, growing, or 11 overwintering plants shall be considered farm machinery and 12 equipment under this item (2). Agricultural chemical tender 13 tanks and dry boxes shall include units sold separately from 14 a motor vehicle required to be licensed and units sold 15 mounted on a motor vehicle required to be licensed, if the 16 selling price of the tender is separately stated. 17 Farm machinery and equipment shall include precision 18 farming equipment that is installed or purchased to be 19 installed on farm machinery and equipment including, but not 20 limited to, tractors, harvesters, sprayers, planters, 21 seeders, or spreaders. Precision farming equipment includes, 22 but is not limited to, soil testing sensors, computers, 23 monitors, software, global positioning and mapping systems, 24 and other such equipment. 25 Farm machinery and equipment also includes computers, 26 sensors, software, and related equipment used primarily in 27 the computer-assisted operation of production agriculture 28 facilities, equipment, and activities such as, but not 29 limited to, the collection, monitoring, and correlation of 30 animal and crop data for the purpose of formulating animal 31 diets and agricultural chemicals. This item (7) is exempt 32 from the provisions of Section 2-70. 33 (3) Distillation machinery and equipment, sold as a unit 34 or kit, assembled or installed by the retailer, certified by -29- LRB9205205SMdv 1 the user to be used only for the production of ethyl alcohol 2 that will be used for consumption as motor fuel or as a 3 component of motor fuel for the personal use of the user, and 4 not subject to sale or resale. 5 (4) Graphic arts machinery and equipment, including 6 repair and replacement parts, both new and used, and 7 including that manufactured on special order or purchased for 8 lease, certified by the purchaser to be used primarily for 9 graphic arts production. 10 (5) A motor vehicle of the first division, a motor 11 vehicle of the second division that is a self-contained motor 12 vehicle designed or permanently converted to provide living 13 quarters for recreational, camping, or travel use, with 14 direct walk through access to the living quarters from the 15 driver's seat, or a motor vehicle of the second division that 16 is of the van configuration designed for the transportation 17 of not less than 7 nor more than 16 passengers, as defined in 18 Section 1-146 of the Illinois Vehicle Code, that is used for 19 automobile renting, as defined in the Automobile Renting 20 Occupation and Use Tax Act. 21 (6) Personal property sold by a teacher-sponsored 22 student organization affiliated with an elementary or 23 secondary school located in Illinois. 24 (7) Proceeds of that portion of the selling price of a 25 passenger car the sale of which is subject to the Replacement 26 Vehicle Tax. 27 (8) Personal property sold to an Illinois county fair 28 association for use in conducting, operating, or promoting 29 the county fair. 30 (9) Personal property sold to a not-for-profit arts or 31 cultural organization that establishes, by proof required by 32 the Department by rule, that it has received an exemption 33 under Section 501(c)(3) of the Internal Revenue Code and that 34 is organized and operated for the presentation or support of -30- LRB9205205SMdv 1 arts or cultural programming, activities, or services. These 2 organizations include, but are not limited to, music and 3 dramatic arts organizations such as symphony orchestras and 4 theatrical groups, arts and cultural service organizations, 5 local arts councils, visual arts organizations, and media 6 arts organizations. 7 (10) Personal property sold by a corporation, society, 8 association, foundation, institution, or organization, other 9 than a limited liability company, that is organized and 10 operated as a not-for-profit service enterprise for the 11 benefit of persons 65 years of age or older if the personal 12 property was not purchased by the enterprise for the purpose 13 of resale by the enterprise. 14 (11) Personal property sold to a governmental body, to a 15 corporation, society, association, foundation, or institution 16 organized and operated exclusively for charitable, religious, 17 or educational purposes, or to a not-for-profit corporation, 18 society, association, foundation, institution, or 19 organization that has no compensated officers or employees 20 and that is organized and operated primarily for the 21 recreation of persons 55 years of age or older. A limited 22 liability company may qualify for the exemption under this 23 paragraph only if the limited liability company is organized 24 and operated exclusively for educational purposes. On and 25 after July 1, 1987, however, no entity otherwise eligible for 26 this exemption shall make tax-free purchases unless it has an 27 active identification number issued by the Department. 28 (12) Personal property sold to interstate carriers for 29 hire for use as rolling stock moving in interstate commerce 30 or to lessors under leases of one year or longer executed or 31 in effect at the time of purchase by interstate carriers for 32 hire for use as rolling stock moving in interstate commerce 33 and equipment operated by a telecommunications provider, 34 licensed as a common carrier by the Federal Communications -31- LRB9205205SMdv 1 Commission, which is permanently installed in or affixed to 2 aircraft moving in interstate commerce. 3 (13) Proceeds from sales to owners, lessors, or shippers 4 of tangible personal property that is utilized by interstate 5 carriers for hire for use as rolling stock moving in 6 interstate commerce and equipment operated by a 7 telecommunications provider, licensed as a common carrier by 8 the Federal Communications Commission, which is permanently 9 installed in or affixed to aircraft moving in interstate 10 commerce. 11 (14) Machinery and equipment that will be used by the 12 purchaser, or a lessee of the purchaser, primarily in the 13 process of manufacturing or assembling tangible personal 14 property for wholesale or retail sale or lease, whether the 15 sale or lease is made directly by the manufacturer or by some 16 other person, whether the materials used in the process are 17 owned by the manufacturer or some other person, or whether 18 the sale or lease is made apart from or as an incident to the 19 seller's engaging in the service occupation of producing 20 machines, tools, dies, jigs, patterns, gauges, or other 21 similar items of no commercial value on special order for a 22 particular purchaser. 23 (15) Proceeds of mandatory service charges separately 24 stated on customers' bills for purchase and consumption of 25 food and beverages, to the extent that the proceeds of the 26 service charge are in fact turned over as tips or as a 27 substitute for tips to the employees who participate directly 28 in preparing, serving, hosting or cleaning up the food or 29 beverage function with respect to which the service charge is 30 imposed. 31 (16) Petroleum products sold to a purchaser if the 32 seller is prohibited by federal law from charging tax to the 33 purchaser. 34 (17) Tangible personal property sold to a common carrier -32- LRB9205205SMdv 1 by rail or motor that receives the physical possession of the 2 property in Illinois and that transports the property, or 3 shares with another common carrier in the transportation of 4 the property, out of Illinois on a standard uniform bill of 5 lading showing the seller of the property as the shipper or 6 consignor of the property to a destination outside Illinois, 7 for use outside Illinois. 8 (18) Legal tender, currency, medallions, or gold or 9 silver coinage issued by the State of Illinois, the 10 government of the United States of America, or the government 11 of any foreign country, and bullion. 12 (19) Oil field exploration, drilling, and production 13 equipment, including (i) rigs and parts of rigs, rotary rigs, 14 cable tool rigs, and workover rigs, (ii) pipe and tubular 15 goods, including casing and drill strings, (iii) pumps and 16 pump-jack units, (iv) storage tanks and flow lines, (v) any 17 individual replacement part for oil field exploration, 18 drilling, and production equipment, and (vi) machinery and 19 equipment purchased for lease; but excluding motor vehicles 20 required to be registered under the Illinois Vehicle Code. 21 (20) Photoprocessing machinery and equipment, including 22 repair and replacement parts, both new and used, including 23 that manufactured on special order, certified by the 24 purchaser to be used primarily for photoprocessing, and 25 including photoprocessing machinery and equipment purchased 26 for lease. 27 (21) Coal exploration, mining, offhighway hauling, 28 processing, maintenance, and reclamation equipment, including 29 replacement parts and equipment, and including equipment 30 purchased for lease, but excluding motor vehicles required to 31 be registered under the Illinois Vehicle Code. 32 (22) Fuel and petroleum products sold to or used by an 33 air carrier, certified by the carrier to be used for 34 consumption, shipment, or storage in the conduct of its -33- LRB9205205SMdv 1 business as an air common carrier, for a flight destined for 2 or returning from a location or locations outside the United 3 States without regard to previous or subsequent domestic 4 stopovers. 5 (23) A transaction in which the purchase order is 6 received by a florist who is located outside Illinois, but 7 who has a florist located in Illinois deliver the property to 8 the purchaser or the purchaser's donee in Illinois. 9 (24) Fuel consumed or used in the operation of ships, 10 barges, or vessels that are used primarily in or for the 11 transportation of property or the conveyance of persons for 12 hire on rivers bordering on this State if the fuel is 13 delivered by the seller to the purchaser's barge, ship, or 14 vessel while it is afloat upon that bordering river. 15 (25) A motor vehicle sold in this State to a nonresident 16 even though the motor vehicle is delivered to the nonresident 17 in this State, if the motor vehicle is not to be titled in 18 this State, and if a driveaway decal permit is issued to the 19 motor vehicle as provided in Section 3-603 of the Illinois 20 Vehicle Code or if the nonresident purchaser has vehicle 21 registration plates to transfer to the motor vehicle upon 22 returning to his or her home state. The issuance of the 23 driveaway decal permit or having the out-of-state 24 registration plates to be transferred is prima facie evidence 25 that the motor vehicle will not be titled in this State. 26 (26) Semen used for artificial insemination of livestock 27 for direct agricultural production. 28 (27) Horses, or interests in horses, registered with and 29 meeting the requirements of any of the Arabian Horse Club 30 Registry of America, Appaloosa Horse Club, American Quarter 31 Horse Association, United States Trotting Association, or 32 Jockey Club, as appropriate, used for purposes of breeding or 33 racing for prizes. 34 (28) Computers and communications equipment utilized for -34- LRB9205205SMdv 1 any hospital purpose and equipment used in the diagnosis, 2 analysis, or treatment of hospital patients sold to a lessor 3 who leases the equipment, under a lease of one year or longer 4 executed or in effect at the time of the purchase, to a 5 hospital that has been issued an active tax exemption 6 identification number by the Department under Section 1g of 7 this Act. 8 (29) Personal property sold to a lessor who leases the 9 property, under a lease of one year or longer executed or in 10 effect at the time of the purchase, to a governmental body 11 that has been issued an active tax exemption identification 12 number by the Department under Section 1g of this Act. 13 (30) 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 donated 16 for disaster relief to be used in a State or federally 17 declared disaster area in Illinois or bordering Illinois by a 18 manufacturer or retailer that is registered in this State to 19 a corporation, society, association, foundation, or 20 institution that has been issued a sales tax exemption 21 identification number by the Department that assists victims 22 of the disaster who reside within the declared disaster area. 23 (31) 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 used in 26 the performance of infrastructure repairs in this State, 27 including but not limited to municipal roads and streets, 28 access roads, bridges, sidewalks, waste disposal systems, 29 water and sewer line extensions, water distribution and 30 purification facilities, storm water drainage and retention 31 facilities, and sewage treatment facilities, resulting from a 32 State or federally declared disaster in Illinois or bordering 33 Illinois when such repairs are initiated on facilities 34 located in the declared disaster area within 6 months after -35- LRB9205205SMdv 1 the disaster. 2 (32) Beginning July 1, 1999, game or game birds sold at 3 a "game breeding and hunting preserve area" or an "exotic 4 game hunting area" as those terms are used in the Wildlife 5 Code or at a hunting enclosure approved through rules adopted 6 by the Department of Natural Resources. This paragraph is 7 exempt from the provisions of Section 2-70. 8 (33)(32)A motor vehicle, as that term is defined in 9 Section 1-146 of the Illinois Vehicle Code, that is donated 10 to a corporation, limited liability company, society, 11 association, foundation, or institution that is determined by 12 the Department to be organized and operated exclusively for 13 educational purposes. For purposes of this exemption, "a 14 corporation, limited liability company, society, association, 15 foundation, or institution organized and operated exclusively 16 for educational purposes" means all tax-supported public 17 schools, private schools that offer systematic instruction in 18 useful branches of learning by methods common to public 19 schools and that compare favorably in their scope and 20 intensity with the course of study presented in tax-supported 21 schools, and vocational or technical schools or institutes 22 organized and operated exclusively to provide a course of 23 study of not less than 6 weeks duration and designed to 24 prepare individuals to follow a trade or to pursue a manual, 25 technical, mechanical, industrial, business, or commercial 26 occupation. 27 (34)(33)Beginning January 1, 2000, personal property, 28 including food, purchased through fundraising events for the 29 benefit of a public or private elementary or secondary 30 school, a group of those schools, or one or more school 31 districts if the events are sponsored by an entity recognized 32 by the school district that consists primarily of volunteers 33 and includes parents and teachers of the school children. 34 This paragraph does not apply to fundraising events (i) for -36- LRB9205205SMdv 1 the benefit of private home instruction or (ii) for which the 2 fundraising entity purchases the personal property sold at 3 the events from another individual or entity that sold the 4 property for the purpose of resale by the fundraising entity 5 and that profits from the sale to the fundraising entity. 6 This paragraph is exempt from the provisions of Section 2-70. 7 (35)(32)Beginning January 1, 2000, new or used 8 automatic vending machines that prepare and serve hot food 9 and beverages, including coffee, soup, and other items, and 10 replacement parts for these machines. This paragraph is 11 exempt from the provisions of Section 2-70. 12 (36) Beginning on the effective date of this amendatory 13 Act of the 92nd General Assembly and ending 10 years after 14 the effective date of this amendatory Act of the 92nd General 15 Assembly, production related tangible personal property and 16 machinery and equipment, including repair and replacement 17 parts, both new and used, and including those items 18 manufactured on special order or purchased for lease, 19 certified by the purchaser to be essential to and used in the 20 integrated process of the production of electricity by an 21 eligible facility owned, operated, or leased by an exempt 22 wholesale generator. "Eligible facility" and "exempt 23 wholesale generator" shall mean "eligible facility" and 24 "exempt wholesale generator" as defined in Section 32 of the 25 Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a, 26 in effect as of the date of this amendatory Act of the 92nd 27 General Assembly. "Machinery" includes mechanical machines 28 and components of those machines that directly contribute to 29 or are directly used in or essential to the process of the 30 production of electricity. "Equipment" includes an 31 independent device or tool separate from machinery but 32 essential to an integrated electricity generation process; 33 including pipes of any kind used in the process of the 34 production of electricity; computers used primarily in -37- LRB9205205SMdv 1 operating exempt machinery; any subunit or assembly 2 comprising a component of any machinery or auxiliary, 3 adjunct, or attachment parts of machinery, and any parts that 4 require periodic replacement in the course of normal 5 operation; but does not include hand tools. "Production 6 related tangible personal property" means all tangible 7 personal property directly used in or essential to the 8 process of the production of electricity including, but not 9 limited to, tangible personal property used in activities 10 such as preproduction material handling, receiving, quality 11 control, inventory control, storage, staging, and piping or 12 lines necessary for the transportation of water, natural gas, 13 steam, and similar items to and from an eligible facility for 14 use in the process of the production of electricity. This 15 paragraph (36) shall apply also to machinery and equipment 16 used in the general maintenance or repair of exempt machinery 17 and equipment. This paragraph is solely for the purpose of 18 determining whether the production related tangible personal 19 property defined in this paragraph is exempt from the tax 20 imposed by this Act. Nothing in this paragraph, including, 21 but not limited to, any definitions set forth in this 22 paragraph, shall be construed, applied, or relied upon in any 23 way to ascertain whether the property exempt from the tax 24 imposed by this Act is real property or personal property for 25 the purpose of determining whether the property is subject to 26 ad valorem taxes on real property or to any other taxes. This 27 exemption does not apply to any additional tax imposed by the 28 Board of Directors of the Regional Transportation Authority 29 under Section 4.03 of the Regional Transportation Authority 30 Act. 31 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98; 32 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff. 33 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533, 34 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99; -38- LRB9205205SMdv 1 revised 9-28-99.) 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.