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92_HB3160 LRB9204401SMdv 1 AN ACT in relation to taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 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- LRB9204401SMdv 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- LRB9204401SMdv 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- LRB9204401SMdv 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- LRB9204401SMdv 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- LRB9204401SMdv 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- LRB9204401SMdv 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- LRB9204401SMdv 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- LRB9204401SMdv 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 January 1, 2002, rental containers 26 used for shipping purposes. This paragraph (31) is exempt 27 from the provisions of Section 3-90. 28 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 29 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 30 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 31 eff. 8-20-99; 91-901, eff. 1-1-01.) 32 Section 10. The Service Use Tax Act is amended by 33 changing Section 3-5 as follows: -10- LRB9204401SMdv 1 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 2 Sec. 3-5. Exemptions. Use of the following tangible 3 personal property is exempt from the tax imposed by this Act: 4 (1) Personal property purchased from a corporation, 5 society, association, foundation, institution, or 6 organization, other than a limited liability company, that is 7 organized and operated as a not-for-profit service enterprise 8 for the benefit of persons 65 years of age or older if the 9 personal property was not purchased by the enterprise for the 10 purpose of resale by the enterprise. 11 (2) Personal property purchased by a non-profit Illinois 12 county fair association for use in conducting, operating, or 13 promoting the county fair. 14 (3) Personal property purchased by a not-for-profit arts 15 or cultural organization that establishes, by proof required 16 by the Department by rule, that it has received an exemption 17 under Section 501(c)(3) of the Internal Revenue Code and that 18 is organized and operated for the presentation or support of 19 arts or cultural programming, activities, or services. These 20 organizations include, but are not limited to, music and 21 dramatic arts organizations such as symphony orchestras and 22 theatrical groups, arts and cultural service organizations, 23 local arts councils, visual arts organizations, and media 24 arts organizations. 25 (4) Legal tender, currency, medallions, or gold or 26 silver coinage issued by the State of Illinois, the 27 government of the United States of America, or the government 28 of any foreign country, and bullion. 29 (5) Graphic arts machinery and equipment, including 30 repair and replacement parts, both new and used, and 31 including that manufactured on special order or purchased for 32 lease, certified by the purchaser to be used primarily for 33 graphic arts production. 34 (6) Personal property purchased from a teacher-sponsored -11- LRB9204401SMdv 1 student organization affiliated with an elementary or 2 secondary school located in Illinois. 3 (7) Farm machinery and equipment, both new and used, 4 including that manufactured on special order, certified by 5 the purchaser to be used primarily for production agriculture 6 or State or federal agricultural programs, including 7 individual replacement parts for the machinery and equipment, 8 including machinery and equipment purchased for lease, and 9 including implements of husbandry defined in Section 1-130 of 10 the Illinois Vehicle Code, farm machinery and agricultural 11 chemical and fertilizer spreaders, and nurse wagons required 12 to be registered under Section 3-809 of the Illinois Vehicle 13 Code, but excluding other motor vehicles required to be 14 registered under the Illinois Vehicle Code. Horticultural 15 polyhouses or hoop houses used for propagating, growing, or 16 overwintering plants shall be considered farm machinery and 17 equipment under this item (7). Agricultural chemical tender 18 tanks and dry boxes shall include units sold separately from 19 a motor vehicle required to be licensed and units sold 20 mounted on a motor vehicle required to be licensed if the 21 selling price of the tender is separately stated. 22 Farm machinery and equipment shall include precision 23 farming equipment that is installed or purchased to be 24 installed on farm machinery and equipment including, but not 25 limited to, tractors, harvesters, sprayers, planters, 26 seeders, or spreaders. Precision farming equipment includes, 27 but is not limited to, soil testing sensors, computers, 28 monitors, software, global positioning and mapping systems, 29 and other such equipment. 30 Farm machinery and equipment also includes computers, 31 sensors, software, and related equipment used primarily in 32 the computer-assisted operation of production agriculture 33 facilities, equipment, and activities such as, but not 34 limited to, the collection, monitoring, and correlation of -12- LRB9204401SMdv 1 animal and crop data for the purpose of formulating animal 2 diets and agricultural chemicals. This item (7) is exempt 3 from the provisions of Section 3-75. 4 (8) Fuel and petroleum products sold to or used by an 5 air common carrier, certified by the carrier to be used for 6 consumption, shipment, or storage in the conduct of its 7 business as an air common carrier, for a flight destined for 8 or returning from a location or locations outside the United 9 States without regard to previous or subsequent domestic 10 stopovers. 11 (9) Proceeds of mandatory service charges separately 12 stated on customers' bills for the purchase and consumption 13 of food and beverages acquired as an incident to the purchase 14 of a service from a serviceman, to the extent that the 15 proceeds of the service charge are in fact turned over as 16 tips or as a substitute for tips to the employees who 17 participate directly in preparing, serving, hosting or 18 cleaning up the food or beverage function with respect to 19 which the service charge is imposed. 20 (10) Oil field exploration, drilling, and production 21 equipment, including (i) rigs and parts of rigs, rotary rigs, 22 cable tool rigs, and workover rigs, (ii) pipe and tubular 23 goods, including casing and drill strings, (iii) pumps and 24 pump-jack units, (iv) storage tanks and flow lines, (v) any 25 individual replacement part for oil field exploration, 26 drilling, and production equipment, and (vi) machinery and 27 equipment purchased for lease; but excluding motor vehicles 28 required to be registered under the Illinois Vehicle Code. 29 (11) Proceeds from the sale of photoprocessing machinery 30 and equipment, including repair and replacement parts, both 31 new and used, including that manufactured on special order, 32 certified by the purchaser to be used primarily for 33 photoprocessing, and including photoprocessing machinery and 34 equipment purchased for lease. -13- LRB9204401SMdv 1 (12) Coal exploration, mining, offhighway hauling, 2 processing, maintenance, and reclamation equipment, including 3 replacement parts and equipment, and including equipment 4 purchased for lease, but excluding motor vehicles required to 5 be registered under the Illinois Vehicle Code. 6 (13) Semen used for artificial insemination of livestock 7 for direct agricultural production. 8 (14) Horses, or interests in horses, registered with and 9 meeting the requirements of any of the Arabian Horse Club 10 Registry of America, Appaloosa Horse Club, American Quarter 11 Horse Association, United States Trotting Association, or 12 Jockey Club, as appropriate, used for purposes of breeding or 13 racing for prizes. 14 (15) Computers and communications equipment utilized for 15 any hospital purpose and equipment used in the diagnosis, 16 analysis, or treatment of hospital patients purchased by a 17 lessor who leases the equipment, under a lease of one year or 18 longer executed or in effect at the time the lessor would 19 otherwise be subject to the tax imposed by this Act, 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. If the equipment is leased 23 in a manner that does not qualify for this exemption or is 24 used in any other non-exempt manner, the lessor shall be 25 liable for the tax imposed under this Act or the Use Tax Act, 26 as the case may be, based on the fair market value of the 27 property at the time the non-qualifying use occurs. No 28 lessor shall collect or attempt to collect an amount (however 29 designated) that purports to reimburse that lessor for the 30 tax imposed by this Act or the Use Tax Act, as the case may 31 be, if the tax has not been paid by the lessor. If a lessor 32 improperly collects any such amount from the lessee, the 33 lessee shall have a legal right to claim a refund of that 34 amount from the lessor. If, however, that amount is not -14- LRB9204401SMdv 1 refunded to the lessee for any reason, the lessor is liable 2 to pay that amount to the Department. 3 (16) Personal property purchased by a lessor who leases 4 the property, under a lease of one year or longer executed or 5 in effect at the time the lessor would otherwise be subject 6 to the tax imposed by this Act, to a governmental body that 7 has been issued an active tax exemption identification number 8 by the Department under Section 1g of the Retailers' 9 Occupation Tax Act. If the property is leased in a manner 10 that does not qualify for this exemption or is used in any 11 other non-exempt manner, the lessor shall be liable for the 12 tax imposed under this Act or the Use Tax Act, as the case 13 may be, based on the fair market value of the property at the 14 time the non-qualifying use occurs. No lessor shall collect 15 or attempt to collect an amount (however designated) that 16 purports to reimburse that lessor for the tax imposed by this 17 Act or the Use Tax Act, as the case may be, if the tax has 18 not been paid by the lessor. If a lessor improperly collects 19 any such amount from the lessee, the lessee shall have a 20 legal right to claim a refund of that amount from the lessor. 21 If, however, that amount is not refunded to the lessee for 22 any reason, the lessor is liable to pay that amount to the 23 Department. 24 (17) Beginning with taxable years ending on or after 25 December 31, 1995 and ending with taxable years ending on or 26 before December 31, 2004, personal property that is donated 27 for disaster relief to be used in a State or federally 28 declared disaster area in Illinois or bordering Illinois by a 29 manufacturer or retailer that is registered in this State to 30 a corporation, society, association, foundation, or 31 institution that has been issued a sales tax exemption 32 identification number by the Department that assists victims 33 of the disaster who reside within the declared disaster area. 34 (18) Beginning with taxable years ending on or after -15- LRB9204401SMdv 1 December 31, 1995 and ending with taxable years ending on or 2 before December 31, 2004, personal property that is used in 3 the performance of infrastructure repairs in this State, 4 including but not limited to municipal roads and streets, 5 access roads, bridges, sidewalks, waste disposal systems, 6 water and sewer line extensions, water distribution and 7 purification facilities, storm water drainage and retention 8 facilities, and sewage treatment facilities, resulting from a 9 State or federally declared disaster in Illinois or bordering 10 Illinois when such repairs are initiated on facilities 11 located in the declared disaster area within 6 months after 12 the disaster. 13 (19) Beginning July 1, 1999, game or game birds 14 purchased at a "game breeding and hunting preserve area" or 15 an "exotic game hunting area" as those terms are used in the 16 Wildlife Code or at a hunting enclosure approved through 17 rules adopted by the Department of Natural Resources. This 18 paragraph is exempt from the provisions of Section 3-75. 19 (20)(19)A motor vehicle, as that term is defined in 20 Section 1-146 of the Illinois Vehicle Code, that is donated 21 to a corporation, limited liability company, society, 22 association, foundation, or institution that is determined by 23 the Department to be organized and operated exclusively for 24 educational purposes. For purposes of this exemption, "a 25 corporation, limited liability company, society, association, 26 foundation, or institution organized and operated exclusively 27 for educational purposes" means all tax-supported public 28 schools, private schools that offer systematic instruction in 29 useful branches of learning by methods common to public 30 schools and that compare favorably in their scope and 31 intensity with the course of study presented in tax-supported 32 schools, and vocational or technical schools or institutes 33 organized and operated exclusively to provide a course of 34 study of not less than 6 weeks duration and designed to -16- LRB9204401SMdv 1 prepare individuals to follow a trade or to pursue a manual, 2 technical, mechanical, industrial, business, or commercial 3 occupation. 4 (21)(20)Beginning January 1, 2000, personal property, 5 including food, purchased through fundraising events for the 6 benefit of a public or private elementary or secondary 7 school, a group of those schools, or one or more school 8 districts if the events are sponsored by an entity recognized 9 by the school district that consists primarily of volunteers 10 and includes parents and teachers of the school children. 11 This paragraph does not apply to fundraising events (i) for 12 the benefit of private home instruction or (ii) for which the 13 fundraising entity purchases the personal property sold at 14 the events from another individual or entity that sold the 15 property for the purpose of resale by the fundraising entity 16 and that profits from the sale to the fundraising entity. 17 This paragraph is exempt from the provisions of Section 3-75. 18 (22)(19)Beginning January 1, 2000, new or used 19 automatic vending machines that prepare and serve hot food 20 and beverages, including coffee, soup, and other items, and 21 replacement parts for these machines. This paragraph is 22 exempt from the provisions of Section 3-75. 23 (23) Beginning on January 1, 2002, rental containers 24 used for shipping purposes. This paragraph (23) is exempt 25 from the provisions of Section 3-75. 26 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 27 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 28 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 29 eff. 8-20-99; revised 9-29-99.) 30 Section 15. The Service Occupation Tax Act is amended by 31 changing Section 3-5 as follows: 32 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) -17- LRB9204401SMdv 1 Sec. 3-5. Exemptions. The following tangible personal 2 property is exempt from the tax imposed by this Act: 3 (1) Personal property sold by a corporation, society, 4 association, foundation, institution, or organization, other 5 than a limited liability company, that is organized and 6 operated as a not-for-profit service enterprise for the 7 benefit of persons 65 years of age or older if the personal 8 property was not purchased by the enterprise for the purpose 9 of resale by the enterprise. 10 (2) Personal property purchased by a not-for-profit 11 Illinois county fair association for use in conducting, 12 operating, or promoting the county fair. 13 (3) Personal property purchased by any not-for-profit 14 arts or cultural organization that establishes, by proof 15 required by the Department by rule, that it has received an 16 exemption under Section 501(c)(3) of the Internal Revenue 17 Code and that is organized and operated for the presentation 18 or support of arts or cultural programming, activities, or 19 services. These organizations include, but are not limited 20 to, music and dramatic arts organizations such as symphony 21 orchestras and theatrical groups, arts and cultural service 22 organizations, local arts councils, visual arts 23 organizations, and media arts organizations. 24 (4) 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 (5) Graphic arts machinery and equipment, including 29 repair and replacement parts, both new and used, and 30 including that manufactured on special order or purchased for 31 lease, certified by the purchaser to be used primarily for 32 graphic arts production. 33 (6) Personal property sold by a teacher-sponsored 34 student organization affiliated with an elementary or -18- LRB9204401SMdv 1 secondary school located in Illinois. 2 (7) Farm machinery and equipment, both new and used, 3 including that manufactured on special order, certified by 4 the purchaser to be used primarily for production agriculture 5 or State or federal agricultural programs, including 6 individual replacement parts for the machinery and equipment, 7 including machinery and equipment purchased for lease, and 8 including implements of husbandry defined in Section 1-130 of 9 the Illinois Vehicle Code, farm machinery and agricultural 10 chemical and fertilizer spreaders, and nurse wagons required 11 to be registered under Section 3-809 of the Illinois Vehicle 12 Code, but excluding other motor vehicles required to be 13 registered under the Illinois Vehicle Code. Horticultural 14 polyhouses or hoop houses used for propagating, growing, or 15 overwintering plants shall be considered farm machinery and 16 equipment under this item (7). Agricultural chemical tender 17 tanks and dry boxes shall include units sold separately from 18 a motor vehicle required to be licensed and units sold 19 mounted on a motor vehicle required to be licensed if the 20 selling price of the tender is separately stated. 21 Farm machinery and equipment shall include precision 22 farming equipment that is installed or purchased to be 23 installed on farm machinery and equipment including, but not 24 limited to, tractors, harvesters, sprayers, planters, 25 seeders, or spreaders. Precision farming equipment includes, 26 but is not limited to, soil testing sensors, computers, 27 monitors, software, global positioning and mapping systems, 28 and other such equipment. 29 Farm machinery and equipment also includes computers, 30 sensors, software, and related equipment used primarily in 31 the computer-assisted operation of production agriculture 32 facilities, equipment, and activities such as, but not 33 limited to, the collection, monitoring, and correlation of 34 animal and crop data for the purpose of formulating animal -19- LRB9204401SMdv 1 diets and agricultural chemicals. This item (7) is exempt 2 from the provisions of Section 3-55. 3 (8) Fuel and petroleum products sold to or used by an 4 air common carrier, certified by the carrier to be used for 5 consumption, shipment, or storage in the conduct of its 6 business as an air common carrier, for a flight destined for 7 or returning from a location or locations outside the United 8 States without regard to previous or subsequent domestic 9 stopovers. 10 (9) Proceeds of mandatory service charges separately 11 stated on customers' bills for the purchase and consumption 12 of food and beverages, to the extent that the proceeds of the 13 service charge are in fact turned over as tips or as a 14 substitute for tips to the employees who participate directly 15 in preparing, serving, hosting or cleaning up the food or 16 beverage function with respect to which the service charge is 17 imposed. 18 (10) Oil field exploration, drilling, and production 19 equipment, including (i) rigs and parts of rigs, rotary rigs, 20 cable tool rigs, and workover rigs, (ii) pipe and tubular 21 goods, including casing and drill strings, (iii) pumps and 22 pump-jack units, (iv) storage tanks and flow lines, (v) any 23 individual replacement part for oil field exploration, 24 drilling, and production equipment, and (vi) machinery and 25 equipment purchased for lease; but excluding motor vehicles 26 required to be registered under the Illinois Vehicle Code. 27 (11) Photoprocessing machinery and equipment, including 28 repair and replacement parts, both new and used, including 29 that manufactured on special order, certified by the 30 purchaser to be used primarily for photoprocessing, and 31 including photoprocessing machinery and equipment purchased 32 for lease. 33 (12) Coal exploration, mining, offhighway hauling, 34 processing, maintenance, and reclamation equipment, including -20- LRB9204401SMdv 1 replacement parts and equipment, and including equipment 2 purchased for lease, but excluding motor vehicles required to 3 be registered under the Illinois Vehicle Code. 4 (13) Food for human consumption that is to be consumed 5 off the premises where it is sold (other than alcoholic 6 beverages, soft drinks and food that has been prepared for 7 immediate consumption) and prescription and non-prescription 8 medicines, drugs, medical appliances, and insulin, urine 9 testing materials, syringes, and needles used by diabetics, 10 for human use, when purchased for use by a person receiving 11 medical assistance under Article 5 of the Illinois Public Aid 12 Code who resides in a licensed long-term care facility, as 13 defined in the Nursing Home Care Act. 14 (14) Semen used for artificial insemination of livestock 15 for direct agricultural production. 16 (15) Horses, or interests in horses, registered with and 17 meeting the requirements of any of the Arabian Horse Club 18 Registry of America, Appaloosa Horse Club, American Quarter 19 Horse Association, United States Trotting Association, or 20 Jockey Club, as appropriate, used for purposes of breeding or 21 racing for prizes. 22 (16) Computers and communications equipment utilized for 23 any hospital purpose and equipment used in the diagnosis, 24 analysis, or treatment of hospital patients sold to a lessor 25 who leases the equipment, under a lease of one year or longer 26 executed or in effect at the time of the purchase, to a 27 hospital that has been issued an active tax exemption 28 identification number by the Department under Section 1g of 29 the Retailers' Occupation Tax Act. 30 (17) Personal property sold to a lessor who leases the 31 property, under a lease of one year or longer executed or in 32 effect at the time of the purchase, to a governmental body 33 that has been issued an active tax exemption identification 34 number by the Department under Section 1g of the Retailers' -21- LRB9204401SMdv 1 Occupation Tax Act. 2 (18) Beginning with taxable years ending on or after 3 December 31, 1995 and ending with taxable years ending on or 4 before December 31, 2004, personal property that is donated 5 for disaster relief to be used in a State or federally 6 declared disaster area in Illinois or bordering Illinois by a 7 manufacturer or retailer that is registered in this State to 8 a corporation, society, association, foundation, or 9 institution that has been issued a sales tax exemption 10 identification number by the Department that assists victims 11 of the disaster who reside within the declared disaster area. 12 (19) Beginning with taxable years ending on or after 13 December 31, 1995 and ending with taxable years ending on or 14 before December 31, 2004, personal property that is used in 15 the performance of infrastructure repairs in this State, 16 including but not limited to municipal roads and streets, 17 access roads, bridges, sidewalks, waste disposal systems, 18 water and sewer line extensions, water distribution and 19 purification facilities, storm water drainage and retention 20 facilities, and sewage treatment facilities, resulting from a 21 State or federally declared disaster in Illinois or bordering 22 Illinois when such repairs are initiated on facilities 23 located in the declared disaster area within 6 months after 24 the disaster. 25 (20) Beginning July 1, 1999, game or game birds sold at 26 a "game breeding and hunting preserve area" or an "exotic 27 game hunting area" as those terms are used in the Wildlife 28 Code or at a hunting enclosure approved through rules adopted 29 by the Department of Natural Resources. This paragraph is 30 exempt from the provisions of Section 3-55. 31 (21)(20)A motor vehicle, as that term is defined in 32 Section 1-146 of the Illinois Vehicle Code, that is donated 33 to a corporation, limited liability company, society, 34 association, foundation, or institution that is determined by -22- LRB9204401SMdv 1 the Department to be organized and operated exclusively for 2 educational purposes. For purposes of this exemption, "a 3 corporation, limited liability company, society, association, 4 foundation, or institution organized and operated exclusively 5 for educational purposes" means all tax-supported public 6 schools, private schools that offer systematic instruction in 7 useful branches of learning by methods common to public 8 schools and that compare favorably in their scope and 9 intensity with the course of study presented in tax-supported 10 schools, and vocational or technical schools or institutes 11 organized and operated exclusively to provide a course of 12 study of not less than 6 weeks duration and designed to 13 prepare individuals to follow a trade or to pursue a manual, 14 technical, mechanical, industrial, business, or commercial 15 occupation. 16 (22)(21)Beginning January 1, 2000, personal property, 17 including food, purchased through fundraising events for the 18 benefit of a public or private elementary or secondary 19 school, a group of those schools, or one or more school 20 districts if the events are sponsored by an entity recognized 21 by the school district that consists primarily of volunteers 22 and includes parents and teachers of the school children. 23 This paragraph does not apply to fundraising events (i) for 24 the benefit of private home instruction or (ii) for which the 25 fundraising entity purchases the personal property sold at 26 the events from another individual or entity that sold the 27 property for the purpose of resale by the fundraising entity 28 and that profits from the sale to the fundraising entity. 29 This paragraph is exempt from the provisions of Section 3-55. 30 (23)(20)Beginning January 1, 2000, new or used 31 automatic vending machines that prepare and serve hot food 32 and beverages, including coffee, soup, and other items, and 33 replacement parts for these machines. This paragraph is 34 exempt from the provisions of Section 3-55. -23- LRB9204401SMdv 1 (24) Beginning on January 1, 2002, rental containers 2 used for shipping purposes. This paragraph (24) is exempt 3 from the provisions of Section 3-55. 4 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 5 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 6 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, 7 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.) 8 Section 20. The Retailers' Occupation Tax Act is amended 9 by changing Section 2-5 as follows: 10 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 11 Sec. 2-5. Exemptions. Gross receipts from proceeds from 12 the sale of the following tangible personal property are 13 exempt from the tax imposed by this Act: 14 (1) Farm chemicals. 15 (2) Farm machinery and equipment, both new and used, 16 including that manufactured on special order, certified by 17 the purchaser to be used primarily for production agriculture 18 or State or federal agricultural programs, including 19 individual replacement parts for the machinery and equipment, 20 including machinery and equipment purchased for lease, and 21 including implements of husbandry defined in Section 1-130 of 22 the Illinois Vehicle Code, farm machinery and agricultural 23 chemical and fertilizer spreaders, and nurse wagons required 24 to be registered under Section 3-809 of the Illinois Vehicle 25 Code, but excluding other motor vehicles required to be 26 registered under the Illinois Vehicle Code. Horticultural 27 polyhouses or hoop houses used for propagating, growing, or 28 overwintering plants shall be considered farm machinery and 29 equipment under this item (2). Agricultural chemical tender 30 tanks and dry boxes shall include units sold separately from 31 a motor vehicle required to be licensed and units sold 32 mounted on a motor vehicle required to be licensed, if the -24- LRB9204401SMdv 1 selling price of the tender is separately stated. 2 Farm machinery and equipment shall include precision 3 farming equipment that is installed or purchased to be 4 installed on farm machinery and equipment including, but not 5 limited to, tractors, harvesters, sprayers, planters, 6 seeders, or spreaders. Precision farming equipment includes, 7 but is not limited to, soil testing sensors, computers, 8 monitors, software, global positioning and mapping systems, 9 and other such equipment. 10 Farm machinery and equipment also includes computers, 11 sensors, software, and related equipment used primarily in 12 the computer-assisted operation of production agriculture 13 facilities, equipment, and activities such as, but not 14 limited to, the collection, monitoring, and correlation of 15 animal and crop data for the purpose of formulating animal 16 diets and agricultural chemicals. This item (7) is exempt 17 from the provisions of Section 2-70. 18 (3) Distillation machinery and equipment, sold as a unit 19 or kit, assembled or installed by the retailer, certified by 20 the user to be used only for the production of ethyl alcohol 21 that will be used for consumption as motor fuel or as a 22 component of motor fuel for the personal use of the user, and 23 not subject to sale or resale. 24 (4) Graphic arts machinery and equipment, including 25 repair and replacement parts, both new and used, and 26 including that manufactured on special order or purchased for 27 lease, certified by the purchaser to be used primarily for 28 graphic arts production. 29 (5) A motor vehicle of the first division, a motor 30 vehicle of the second division that is a self-contained motor 31 vehicle designed or permanently converted to provide living 32 quarters for recreational, camping, or travel use, with 33 direct walk through access to the living quarters from the 34 driver's seat, or a motor vehicle of the second division that -25- LRB9204401SMdv 1 is of the van configuration designed for the transportation 2 of not less than 7 nor more than 16 passengers, as defined in 3 Section 1-146 of the Illinois Vehicle Code, that is used for 4 automobile renting, as defined in the Automobile Renting 5 Occupation and Use Tax Act. 6 (6) Personal property sold by a teacher-sponsored 7 student organization affiliated with an elementary or 8 secondary school located in Illinois. 9 (7) Proceeds of that portion of the selling price of a 10 passenger car the sale of which is subject to the Replacement 11 Vehicle Tax. 12 (8) Personal property sold to an Illinois county fair 13 association for use in conducting, operating, or promoting 14 the county fair. 15 (9) Personal property sold to a not-for-profit arts or 16 cultural organization that establishes, by proof required by 17 the Department by rule, that it has received an exemption 18 under Section 501(c)(3) of the Internal Revenue Code and that 19 is organized and operated for the presentation or support of 20 arts or cultural programming, activities, or services. These 21 organizations include, but are not limited to, music and 22 dramatic arts organizations such as symphony orchestras and 23 theatrical groups, arts and cultural service organizations, 24 local arts councils, visual arts organizations, and media 25 arts organizations. 26 (10) Personal property sold by a corporation, society, 27 association, foundation, institution, or organization, other 28 than a limited liability company, that is organized and 29 operated as a not-for-profit service enterprise for the 30 benefit of persons 65 years of age or older if the personal 31 property was not purchased by the enterprise for the purpose 32 of resale by the enterprise. 33 (11) Personal property sold to a governmental body, to a 34 corporation, society, association, foundation, or institution -26- LRB9204401SMdv 1 organized and operated exclusively for charitable, religious, 2 or educational purposes, or to a not-for-profit corporation, 3 society, association, foundation, institution, or 4 organization that has no compensated officers or employees 5 and that is organized and operated primarily for the 6 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 identification number issued by the Department. 13 (12) Personal property sold to interstate carriers for 14 hire for use as rolling stock moving in interstate commerce 15 or to lessors under leases of one year or longer executed or 16 in effect at the time of purchase by interstate carriers for 17 hire for use as rolling stock moving in interstate commerce 18 and equipment operated by a telecommunications provider, 19 licensed as a common carrier by the Federal Communications 20 Commission, which is permanently installed in or affixed to 21 aircraft moving in interstate commerce. 22 (13) Proceeds from sales to owners, lessors, or shippers 23 of tangible personal property that is utilized by interstate 24 carriers for hire for use as rolling stock moving in 25 interstate commerce and equipment operated by a 26 telecommunications provider, licensed as a common carrier by 27 the Federal Communications Commission, which is permanently 28 installed in or affixed to aircraft moving in interstate 29 commerce. 30 (14) Machinery and equipment that will be used by the 31 purchaser, or a lessee of the purchaser, primarily in the 32 process of manufacturing or assembling tangible personal 33 property for wholesale or retail sale or lease, whether the 34 sale or lease is made directly by the manufacturer or by some -27- LRB9204401SMdv 1 other person, whether the materials used in the process are 2 owned by the manufacturer or some other person, or whether 3 the sale or lease is made apart from or as an incident to the 4 seller's engaging in the service occupation of producing 5 machines, tools, dies, jigs, patterns, gauges, or other 6 similar items of no commercial value on special order for a 7 particular purchaser. 8 (15) Proceeds of mandatory service charges separately 9 stated on customers' bills for purchase and consumption of 10 food and beverages, to the extent that the proceeds of the 11 service charge are in fact turned over as tips or as a 12 substitute for tips to the employees who participate directly 13 in preparing, serving, hosting or cleaning up the food or 14 beverage function with respect to which the service charge is 15 imposed. 16 (16) Petroleum products sold to a purchaser if the 17 seller is prohibited by federal law from charging tax to the 18 purchaser. 19 (17) Tangible personal property sold to a common carrier 20 by rail or motor that receives the physical possession of the 21 property in Illinois and that transports the property, or 22 shares with another common carrier in the transportation of 23 the property, out of Illinois on a standard uniform bill of 24 lading showing the seller of the property as the shipper or 25 consignor of the property to a destination outside Illinois, 26 for use outside Illinois. 27 (18) Legal tender, currency, medallions, or gold or 28 silver coinage issued by the State of Illinois, the 29 government of the United States of America, or the government 30 of any foreign country, and bullion. 31 (19) Oil field exploration, drilling, and production 32 equipment, including (i) rigs and parts of rigs, rotary rigs, 33 cable tool rigs, and workover rigs, (ii) pipe and tubular 34 goods, including casing and drill strings, (iii) pumps and -28- LRB9204401SMdv 1 pump-jack units, (iv) storage tanks and flow lines, (v) any 2 individual replacement part for oil field exploration, 3 drilling, and production equipment, and (vi) machinery and 4 equipment purchased for lease; but excluding motor vehicles 5 required to be registered under the Illinois Vehicle Code. 6 (20) Photoprocessing machinery and equipment, including 7 repair and replacement parts, both new and used, including 8 that manufactured on special order, certified by the 9 purchaser to be used primarily for photoprocessing, and 10 including photoprocessing machinery and equipment purchased 11 for lease. 12 (21) Coal exploration, mining, offhighway hauling, 13 processing, maintenance, and reclamation equipment, including 14 replacement parts and equipment, and including equipment 15 purchased for lease, but excluding motor vehicles required to 16 be registered under the Illinois Vehicle Code. 17 (22) Fuel and petroleum products sold to or used by an 18 air carrier, certified by the carrier to be used for 19 consumption, shipment, or storage in the conduct of its 20 business as an air common carrier, for a flight destined for 21 or returning from a location or locations outside the United 22 States without regard to previous or subsequent domestic 23 stopovers. 24 (23) A transaction in which the purchase order is 25 received by a florist who is located outside Illinois, but 26 who has a florist located in Illinois deliver the property to 27 the purchaser or the purchaser's donee in Illinois. 28 (24) Fuel consumed or used in the operation of ships, 29 barges, or vessels that are used primarily in or for the 30 transportation of property or the conveyance of persons for 31 hire on rivers bordering on this State if the fuel is 32 delivered by the seller to the purchaser's barge, ship, or 33 vessel while it is afloat upon that bordering river. 34 (25) A motor vehicle sold in this State to a nonresident -29- LRB9204401SMdv 1 even though the motor vehicle is delivered to the nonresident 2 in this State, if the motor vehicle is not to be titled in 3 this State, and if a driveaway decal permit is issued to the 4 motor vehicle as provided in Section 3-603 of the Illinois 5 Vehicle Code or if the nonresident purchaser has vehicle 6 registration plates to transfer to the motor vehicle upon 7 returning to his or her home state. The issuance of the 8 driveaway decal permit or having the out-of-state 9 registration plates to be transferred is prima facie evidence 10 that the motor vehicle will not be titled in this State. 11 (26) Semen used for artificial insemination of livestock 12 for direct agricultural production. 13 (27) Horses, or interests in horses, registered with and 14 meeting the requirements of any of the Arabian Horse Club 15 Registry of America, Appaloosa Horse Club, American Quarter 16 Horse Association, United States Trotting Association, or 17 Jockey Club, as appropriate, used for purposes of breeding or 18 racing for prizes. 19 (28) Computers and communications equipment utilized for 20 any hospital purpose and equipment used in the diagnosis, 21 analysis, or treatment of hospital patients sold to a lessor 22 who leases the equipment, under a lease of one year or longer 23 executed or in effect at the time of the purchase, to a 24 hospital that has been issued an active tax exemption 25 identification number by the Department under Section 1g of 26 this Act. 27 (29) Personal property sold to a lessor who leases the 28 property, under a lease of one year or longer executed or in 29 effect at the time of the purchase, to a governmental body 30 that has been issued an active tax exemption identification 31 number by the Department under Section 1g of this Act. 32 (30) 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 donated -30- LRB9204401SMdv 1 for disaster relief to be used in a State or federally 2 declared disaster area in Illinois or bordering Illinois by a 3 manufacturer or retailer that is registered in this State to 4 a corporation, society, association, foundation, or 5 institution that has been issued a sales tax exemption 6 identification number by the Department that assists victims 7 of the disaster who reside within the declared disaster area. 8 (31) Beginning with taxable years ending on or after 9 December 31, 1995 and ending with taxable years ending on or 10 before December 31, 2004, personal property that is used in 11 the performance of infrastructure repairs in this State, 12 including but not limited to municipal roads and streets, 13 access roads, bridges, sidewalks, waste disposal systems, 14 water and sewer line extensions, water distribution and 15 purification facilities, storm water drainage and retention 16 facilities, and sewage treatment facilities, resulting from a 17 State or federally declared disaster in Illinois or bordering 18 Illinois when such repairs are initiated on facilities 19 located in the declared disaster area within 6 months after 20 the disaster. 21 (32) Beginning July 1, 1999, game or game birds sold at 22 a "game breeding and hunting preserve area" or an "exotic 23 game hunting area" as those terms are used in the Wildlife 24 Code or at a hunting enclosure approved through rules adopted 25 by the Department of Natural Resources. This paragraph is 26 exempt from the provisions of Section 2-70. 27 (33)(32)A motor vehicle, as that term is defined in 28 Section 1-146 of the Illinois Vehicle Code, that is donated 29 to a corporation, limited liability company, society, 30 association, foundation, or institution that is determined by 31 the Department to be organized and operated exclusively for 32 educational purposes. For purposes of this exemption, "a 33 corporation, limited liability company, society, association, 34 foundation, or institution organized and operated exclusively -31- LRB9204401SMdv 1 for educational purposes" means all tax-supported public 2 schools, private schools that offer systematic instruction in 3 useful branches of learning by methods common to public 4 schools and that compare favorably in their scope and 5 intensity with the course of study presented in tax-supported 6 schools, and vocational or technical schools or institutes 7 organized and operated exclusively to provide a course of 8 study of not less than 6 weeks duration and designed to 9 prepare individuals to follow a trade or to pursue a manual, 10 technical, mechanical, industrial, business, or commercial 11 occupation. 12 (34)(33)Beginning January 1, 2000, personal property, 13 including food, purchased through fundraising events for the 14 benefit of a public or private elementary or secondary 15 school, a group of those schools, or one or more school 16 districts if the events are sponsored by an entity recognized 17 by the school district that consists primarily of volunteers 18 and includes parents and teachers of the school children. 19 This paragraph does not apply to fundraising events (i) for 20 the benefit of private home instruction or (ii) for which the 21 fundraising entity purchases the personal property sold at 22 the events from another individual or entity that sold the 23 property for the purpose of resale by the fundraising entity 24 and that profits from the sale to the fundraising entity. 25 This paragraph is exempt from the provisions of Section 2-70. 26 (35)(32)Beginning January 1, 2000, new or used 27 automatic vending machines that prepare and serve hot food 28 and beverages, including coffee, soup, and other items, and 29 replacement parts for these machines. This paragraph is 30 exempt from the provisions of Section 2-70. 31 (36) Beginning on January 1, 2002, rental containers 32 used for shipping purposes. This paragraph (36) is exempt 33 from the provisions of Section 2-70. 34 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98; -32- LRB9204401SMdv 1 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff. 2 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533, 3 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99; 4 revised 9-28-99.) 5 Section 99. Effective date. This Act takes effect upon 6 becoming law.