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Public Act 095-0538 |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Use Tax Act is amended by changing Section | ||||
3-5 as follows:
| ||||
(35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
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Sec. 3-5. Exemptions. Use of the following tangible | ||||
personal property
is exempt from the tax imposed by this Act:
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(1) Personal property purchased from a corporation, | ||||
society, association,
foundation, institution, or | ||||
organization, other than a limited liability
company, that is | ||||
organized and operated as a not-for-profit service enterprise
| ||||
for the benefit of persons 65 years of age or older if the | ||||
personal property
was not purchased by the enterprise for the | ||||
purpose of resale by the
enterprise.
| ||||
(2) Personal property purchased by a not-for-profit | ||||
Illinois county
fair association for use in conducting, | ||||
operating, or promoting the
county fair.
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(3) Personal property purchased by a not-for-profit
arts or | ||||
cultural organization that establishes, by proof required by | ||||
the
Department by
rule, that it has received an exemption under | ||||
Section 501(c)(3) of the Internal
Revenue Code and that is | ||||
organized and operated primarily for the
presentation
or |
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date | ||
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(4) Personal property purchased by a governmental body, by | ||
a
corporation, society, association, foundation, or | ||
institution organized and
operated exclusively for charitable, | ||
religious, or educational purposes, or
by a not-for-profit | ||
corporation, society, association, foundation,
institution, or | ||
organization that has no compensated officers or employees
and | ||
that is organized and operated primarily for the recreation of | ||
persons
55 years of age or older. A limited liability company | ||
may qualify for the
exemption under this paragraph only if the | ||
limited liability company is
organized and operated | ||
exclusively for educational purposes. On and after July
1, | ||
1987, however, no entity otherwise eligible for this exemption | ||
shall make
tax-free purchases unless it has an active exemption | ||
identification number
issued by the Department.
| ||
(5) Until July 1, 2003, a passenger car that is a | ||
replacement vehicle to
the extent that the
purchase price of |
the car is subject to the Replacement Vehicle Tax.
| ||
(6) Until July 1, 2003 and beginning again on September 1, | ||
2004, graphic arts machinery and equipment, including
repair | ||
and replacement
parts, both new and used, and including that | ||
manufactured on special order,
certified by the purchaser to be | ||
used primarily for graphic arts production,
and including | ||
machinery and equipment purchased for lease.
Equipment | ||
includes chemicals or chemicals acting as catalysts but only if
| ||
the
chemicals or chemicals acting as catalysts effect a direct | ||
and immediate change
upon a graphic arts product.
| ||
(7) Farm chemicals.
| ||
(8) Legal tender, currency, medallions, or gold or silver | ||
coinage issued by
the State of Illinois, the government of the | ||
United States of America, or the
government of any foreign | ||
country, and bullion.
| ||
(9) Personal property purchased from a teacher-sponsored | ||
student
organization affiliated with an elementary or | ||
secondary school located in
Illinois.
| ||
(10) A motor vehicle of the first division, a motor vehicle | ||
of the
second division that is a self-contained motor vehicle | ||
designed or
permanently converted to provide living quarters | ||
for recreational, camping,
or travel use, with direct walk | ||
through to the living quarters from the
driver's seat, or a | ||
motor vehicle of the second division that is of the
van | ||
configuration designed for the transportation of not less than | ||
7 nor
more than 16 passengers, as defined in Section 1-146 of |
the Illinois
Vehicle Code, that is used for automobile renting, | ||
as defined in the
Automobile Renting Occupation and Use Tax | ||
Act.
| ||
(11) Farm machinery and equipment, both new and used,
| ||
including that manufactured on special order, certified by the | ||
purchaser
to be used primarily for production agriculture or | ||
State or federal
agricultural programs, including individual | ||
replacement parts for
the machinery and equipment, including | ||
machinery and equipment
purchased
for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but excluding other motor
vehicles required to be
registered | ||
under the Illinois Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (11).
Agricultural chemical tender tanks and dry | ||
boxes shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, |
or spreaders.
Precision farming equipment includes, but is not | ||
limited to, soil testing
sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and
activities such as, but not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (11) is exempt
from the | ||
provisions of
Section 3-90.
| ||
(12) Fuel and petroleum products sold to or used by an air | ||
common
carrier, certified by the carrier to be used for | ||
consumption, shipment, or
storage in the conduct of its | ||
business as an air common carrier, for a
flight destined for or | ||
returning from a location or locations
outside the United | ||
States without regard to previous or subsequent domestic
| ||
stopovers.
| ||
(13) Proceeds of mandatory service charges separately
| ||
stated on customers' bills for the purchase and consumption of | ||
food and
beverages purchased at retail from a retailer, to the | ||
extent that the proceeds
of the service charge are in fact | ||
turned over as tips or as a substitute
for tips to the | ||
employees who participate directly in preparing, serving,
| ||
hosting or cleaning up the food or beverage function with |
respect to which
the service charge is imposed.
| ||
(14) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment,
including (i) rigs and parts of rigs, | ||
rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||
tubular goods,
including casing and drill strings, (iii) pumps | ||
and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||
individual replacement part for oil
field exploration, | ||
drilling, and production equipment, and (vi) machinery and
| ||
equipment purchased
for lease; but excluding motor vehicles | ||
required to be registered under the
Illinois Vehicle Code.
| ||
(15) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that
| ||
manufactured on special order, certified by the purchaser to be | ||
used
primarily for photoprocessing, and including
| ||
photoprocessing machinery and equipment purchased for lease.
| ||
(16) Until July 1, 2003, coal exploration, mining, | ||
offhighway hauling,
processing, maintenance, and reclamation | ||
equipment,
including replacement parts and equipment, and
| ||
including equipment purchased for lease, but excluding motor
| ||
vehicles required to be registered under the Illinois Vehicle | ||
Code.
| ||
(17) Until July 1, 2003, distillation machinery and | ||
equipment, sold as a
unit or kit,
assembled or installed by the | ||
retailer, certified by the user to be used
only for the | ||
production of ethyl alcohol that will be used for consumption
| ||
as motor fuel or as a component of motor fuel for the personal |
use of the
user, and not subject to sale or resale.
| ||
(18) Manufacturing and assembling machinery and equipment | ||
used
primarily in the process of manufacturing or assembling | ||
tangible
personal property for wholesale or retail sale or | ||
lease, whether that sale
or lease is made directly by the | ||
manufacturer or by some other person,
whether the materials | ||
used in the process are
owned by the manufacturer or some other | ||
person, or whether that sale or
lease is made apart from or as | ||
an incident to the seller's engaging in
the service occupation | ||
of producing machines, tools, dies, jigs,
patterns, gauges, or | ||
other similar items of no commercial value on
special order for | ||
a particular purchaser.
| ||
(19) Personal property delivered to a purchaser or | ||
purchaser's donee
inside Illinois when the purchase order for | ||
that personal property was
received by a florist located | ||
outside Illinois who has a florist located
inside Illinois | ||
deliver the personal property.
| ||
(20) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(21) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes.
| ||
(22) Computers and communications equipment utilized for |
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients purchased by a | ||
lessor who leases
the
equipment, under a lease of one year or | ||
longer executed or in effect at the
time the lessor would | ||
otherwise be subject to the tax imposed by this Act, to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by
the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for
this exemption or is used in | ||
any other non-exempt manner, the lessor
shall be liable for the
| ||
tax imposed under this Act or the Service Use Tax Act, as the | ||
case may
be, based on the fair market value of the property at | ||
the time the
non-qualifying use occurs. No lessor shall collect | ||
or attempt to collect an
amount (however
designated) that | ||
purports to reimburse that lessor for the tax imposed by this
| ||
Act or the Service Use Tax Act, as the case may be, if the tax | ||
has not been
paid by the lessor. If a lessor improperly | ||
collects any such amount from the
lessee, the lessee shall have | ||
a legal right to claim a refund of that amount
from the lessor. | ||
If, however, that amount is not refunded to the lessee for
any | ||
reason, the lessor is liable to pay that amount to the | ||
Department.
| ||
(23) Personal property purchased by a lessor who leases the
| ||
property, under
a
lease of
one year or longer executed or in | ||
effect at the time
the lessor would otherwise be subject to the | ||
tax imposed by this Act,
to a governmental body
that has been |
issued an active sales tax exemption identification number by | ||
the
Department under Section 1g of the Retailers' Occupation | ||
Tax Act.
If the
property is leased in a manner that does not | ||
qualify for
this exemption
or used in any other non-exempt | ||
manner, the lessor shall be liable for the
tax imposed under | ||
this Act or the Service Use Tax Act, as the case may
be, based | ||
on the fair market value of the property at the time the
| ||
non-qualifying use occurs. No lessor shall collect or attempt | ||
to collect an
amount (however
designated) that purports to | ||
reimburse that lessor for the tax imposed by this
Act or the | ||
Service Use Tax Act, as the case may be, if the tax has not been
| ||
paid by the lessor. If a lessor improperly collects any such | ||
amount from the
lessee, the lessee shall have a legal right to | ||
claim a refund of that amount
from the lessor. If, however, | ||
that amount is not refunded to the lessee for
any reason, the | ||
lessor is liable to pay that amount to the Department.
| ||
(24) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
|
(25) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(26) Beginning July 1, 1999, game or game birds purchased | ||
at a "game
breeding
and hunting preserve area" or an "exotic | ||
game hunting area" as those terms are
used in
the Wildlife Code | ||
or at a hunting enclosure approved through rules adopted by
the
| ||
Department of Natural Resources. This paragraph is exempt from | ||
the provisions
of
Section 3-90.
| ||
(27) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois
Vehicle Code, that is donated to a | ||
corporation, limited liability company,
society, association, | ||
foundation, or institution that is determined by the
Department | ||
to be organized and operated exclusively for educational | ||
purposes.
For purposes of this exemption, "a corporation, | ||
limited liability company,
society, association, foundation, | ||
or institution organized and operated
exclusively for |
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(28) Beginning January 1, 2000, personal property, | ||
including
food,
purchased through fundraising
events for the | ||
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
| ||
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
| ||
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is | ||
exempt
from the provisions
of Section 3-90.
| ||
(29) Beginning January 1, 2000 and through December 31, | ||
2001, new or
used automatic vending
machines that prepare and |
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for machines used in
commercial, coin-operated amusement and | ||
vending business if a use or occupation
tax is paid on the | ||
gross receipts derived from the use of the commercial,
| ||
coin-operated amusement and vending machines.
This
paragraph
| ||
is exempt from the provisions of Section 3-90.
| ||
(30) Beginning January 1, 2001 and through June 30, 2011, | ||
food for human consumption that is to be consumed off the | ||
premises
where it is sold (other than alcoholic beverages, soft | ||
drinks, and food that
has been prepared for immediate | ||
consumption) and prescription and
nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use, when
purchased for use by a person receiving medical | ||
assistance under Article 5 of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act.
| ||
(31) Beginning on
the effective date of this amendatory Act | ||
of the 92nd General Assembly,
computers and communications | ||
equipment
utilized for any hospital purpose and equipment used | ||
in the diagnosis,
analysis, or treatment of hospital patients | ||
purchased by a lessor who leases
the equipment, under a lease | ||
of one year or longer executed or in effect at the
time the | ||
lessor would otherwise be subject to the tax imposed by this |
Act, to a
hospital that has been issued an active tax exemption | ||
identification number by
the Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for this exemption or is
used in | ||
any other nonexempt manner, the lessor shall be liable for the | ||
tax
imposed under this Act or the Service Use Tax Act, as the | ||
case may be, based on
the fair market value of the property at | ||
the time the nonqualifying use
occurs. No lessor shall collect | ||
or attempt to collect an amount (however
designated) that | ||
purports to reimburse that lessor for the tax imposed by this
| ||
Act or the Service Use Tax Act, as the case may be, if the tax | ||
has not been
paid by the lessor. If a lessor improperly | ||
collects any such amount from the
lessee, the lessee shall have | ||
a legal right to claim a refund of that amount
from the lessor. | ||
If, however, that amount is not refunded to the lessee for
any | ||
reason, the lessor is liable to pay that amount to the | ||
Department.
This paragraph is exempt from the provisions of | ||
Section 3-90.
| ||
(32) Beginning on
the effective date of this amendatory Act | ||
of the 92nd General Assembly,
personal property purchased by a | ||
lessor who leases the property,
under a lease of one year or | ||
longer executed or in effect at the time the
lessor would | ||
otherwise be subject to the tax imposed by this Act, to a
| ||
governmental body that has been issued an active sales tax | ||
exemption
identification number by the Department under | ||
Section 1g of the Retailers'
Occupation Tax Act. If the |
property is leased in a manner that does not
qualify for this | ||
exemption or used in any other nonexempt manner, the lessor
| ||
shall be liable for the tax imposed under this Act or the | ||
Service Use Tax Act,
as the case may be, based on the fair | ||
market value of the property at the time
the nonqualifying use | ||
occurs. No lessor shall collect or attempt to collect
an amount | ||
(however designated) that purports to reimburse that lessor for | ||
the
tax imposed by this Act or the Service Use Tax Act, as the | ||
case may be, if the
tax has not been paid by the lessor. If a | ||
lessor improperly collects any such
amount from the lessee, the | ||
lessee shall have a legal right to claim a refund
of that | ||
amount from the lessor. If, however, that amount is not | ||
refunded to
the lessee for any reason, the lessor is liable to | ||
pay that amount to the
Department. This paragraph is exempt | ||
from the provisions of Section 3-90.
| ||
(33) On and after July 1, 2003 and through June 30, 2004, | ||
the use in this State of motor vehicles of
the second division | ||
with a gross vehicle weight in excess of 8,000 pounds and
that | ||
are subject to the commercial distribution fee imposed under | ||
Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||
1, 2004 and through June 30, 2005, the use in this State of | ||
motor vehicles of the second division: (i) with a gross vehicle | ||
weight rating in excess of 8,000 pounds; (ii) that are subject | ||
to the commercial distribution fee imposed under Section | ||
3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||
primarily used for commercial purposes. Through June 30, 2005, |
this exemption applies to repair and
replacement parts added | ||
after the initial purchase of such a motor vehicle if
that | ||
motor
vehicle is used in a manner that would qualify for the | ||
rolling stock exemption
otherwise provided for in this Act. For | ||
purposes of this paragraph, the term "used for commercial | ||
purposes" means the transportation of persons or property in | ||
furtherance of any commercial or industrial enterprise, | ||
whether for-hire or not.
| ||
(34) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 3-90.
| ||
(Source: P.A. 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, | ||
eff. 7-30-04; 93-1033, eff. 9-3-04; 94-1002, eff. 7-3-06.)
| ||
Section 10. The Service Use Tax Act is amended by changing | ||
Section 3-5 as follows:
| ||
(35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| ||
Sec. 3-5. Exemptions. Use of the following tangible | ||
personal property
is exempt from the tax imposed by this Act:
| ||
(1) Personal property purchased from a corporation, | ||
society,
association, foundation, institution, or |
organization, other than a limited
liability company, that is | ||
organized and operated as a not-for-profit service
enterprise | ||
for the benefit of persons 65 years of age or older if the | ||
personal
property was not purchased by the enterprise for the | ||
purpose of resale by the
enterprise.
| ||
(2) Personal property purchased by a non-profit Illinois | ||
county fair
association for use in conducting, operating, or | ||
promoting the county fair.
| ||
(3) Personal property purchased by a not-for-profit arts
or | ||
cultural
organization that establishes, by proof required by | ||
the Department by rule,
that it has received an exemption under | ||
Section 501(c)(3) of the Internal
Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date | ||
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(4) Legal tender, currency, medallions, or gold or silver | ||
coinage issued
by the State of Illinois, the government of the | ||
United States of America,
or the government of any foreign |
country, and bullion.
| ||
(5) Until July 1, 2003 and beginning again on September 1, | ||
2004, graphic arts machinery and equipment, including
repair | ||
and
replacement parts, both new and used, and including that | ||
manufactured on
special order or purchased for lease, certified | ||
by the purchaser to be used
primarily for graphic arts | ||
production.
Equipment includes chemicals or
chemicals acting | ||
as catalysts but only if
the chemicals or chemicals acting as | ||
catalysts effect a direct and immediate
change upon a graphic | ||
arts product.
| ||
(6) Personal property purchased from a teacher-sponsored | ||
student
organization affiliated with an elementary or | ||
secondary school located
in Illinois.
| ||
(7) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or | ||
State or federal agricultural
programs, including individual | ||
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering |
plants shall be considered farm machinery and equipment under
| ||
this item (7).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (7) is exempt
from the | ||
provisions of
Section 3-75.
| ||
(8) Fuel and petroleum products sold to or used by an air | ||
common
carrier, certified by the carrier to be used for | ||
consumption, shipment, or
storage in the conduct of its | ||
business as an air common carrier, for a
flight destined for or |
returning from a location or locations
outside the United | ||
States without regard to previous or subsequent domestic
| ||
stopovers.
| ||
(9) Proceeds of mandatory service charges separately | ||
stated on
customers' bills for the purchase and consumption of | ||
food and beverages
acquired as an incident to the purchase of a | ||
service from a serviceman, to
the extent that the proceeds of | ||
the service charge are in fact
turned over as tips or as a | ||
substitute for tips to the employees who
participate directly | ||
in preparing, serving, hosting or cleaning up the
food or | ||
beverage function with respect to which the service charge is | ||
imposed.
| ||
(10) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment, including
(i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and | ||
equipment purchased
for lease; but
excluding motor vehicles | ||
required to be registered under the Illinois
Vehicle Code.
| ||
(11) Proceeds from the sale of photoprocessing machinery | ||
and
equipment, including repair and replacement parts, both new | ||
and
used, including that manufactured on special order, | ||
certified by the
purchaser to be used primarily for | ||
photoprocessing, and including
photoprocessing machinery and |
equipment purchased for lease.
| ||
(12) Until July 1, 2003, coal exploration, mining, | ||
offhighway hauling,
processing,
maintenance, and reclamation | ||
equipment, including
replacement parts and equipment, and | ||
including
equipment purchased for lease, but excluding motor | ||
vehicles required to be
registered under the Illinois Vehicle | ||
Code.
| ||
(13) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(14) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes.
| ||
(15) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients purchased by a | ||
lessor who leases
the
equipment, under a lease of one year or | ||
longer executed or in effect at the
time
the lessor would | ||
otherwise be subject to the tax imposed by this Act,
to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||
manner that does not qualify for
this exemption
or is used in | ||
any other non-exempt manner,
the lessor shall be liable for the
|
tax imposed under this Act or the Use Tax Act, as the case may
| ||
be, based on the fair market value of the property at the time | ||
the
non-qualifying use occurs. No lessor shall collect or | ||
attempt to collect an
amount (however
designated) that purports | ||
to reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by | ||
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
| ||
(16) Personal property purchased by a lessor who leases the
| ||
property, under
a
lease of one year or longer executed or in | ||
effect at the time
the lessor would otherwise be subject to the | ||
tax imposed by this Act,
to a governmental body
that has been | ||
issued an active tax exemption identification number by the
| ||
Department under Section 1g of the Retailers' Occupation Tax | ||
Act.
If the
property is leased in a manner that does not | ||
qualify for
this exemption
or is used in any other non-exempt | ||
manner,
the lessor shall be liable for the
tax imposed under | ||
this Act or the Use Tax Act, as the case may
be, based on the | ||
fair market value of the property at the time the
| ||
non-qualifying use occurs. No lessor shall collect or attempt | ||
to collect an
amount (however
designated) that purports to | ||
reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by |
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
| ||
(17) Beginning with taxable years ending on or after | ||
December
31,
1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
| ||
(18) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the |
declared disaster area
within 6 months after the disaster.
| ||
(19) Beginning July 1, 1999, game or game birds purchased | ||
at a "game
breeding
and hunting preserve area" or an "exotic | ||
game hunting area" as those terms are
used in
the Wildlife Code | ||
or at a hunting enclosure approved through rules adopted by
the
| ||
Department of Natural Resources. This paragraph is exempt from | ||
the provisions
of
Section 3-75.
| ||
(20) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, | ||
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(21) Beginning January 1, 2000, personal property, |
including
food,
purchased through fundraising
events for the | ||
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
| ||
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
| ||
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is | ||
exempt
from the provisions
of Section 3-75.
| ||
(22) Beginning January 1, 2000
and through December 31, | ||
2001, new or used automatic vending
machines that prepare and | ||
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for machines used in
commercial, coin-operated
amusement
and | ||
vending business if a use or occupation tax is paid on the | ||
gross receipts
derived from
the use of the commercial, | ||
coin-operated amusement and vending machines.
This
paragraph
| ||
is exempt from the provisions of Section 3-75.
| ||
(23) Beginning August 23, 2001 and through June 30, 2011, | ||
food for human consumption that is to be consumed off the
| ||
premises
where it is sold (other than alcoholic beverages, soft |
drinks, and food that
has been prepared for immediate | ||
consumption) and prescription and
nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use, when
purchased for use by a person receiving medical | ||
assistance under Article 5 of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act.
| ||
(24) Beginning on the effective date of this amendatory Act | ||
of the 92nd
General Assembly, computers and communications | ||
equipment
utilized for any hospital purpose and equipment used | ||
in the diagnosis,
analysis, or treatment of hospital patients | ||
purchased by a lessor who leases
the equipment, under a lease | ||
of one year or longer executed or in effect at the
time the | ||
lessor would otherwise be subject to the tax imposed by this | ||
Act, to a
hospital that has been issued an active tax exemption | ||
identification number by
the Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for this exemption or is
used in | ||
any other nonexempt manner, the lessor shall be liable for the
| ||
tax imposed under this Act or the Use Tax Act, as the case may | ||
be, based on the
fair market value of the property at the time | ||
the nonqualifying use occurs.
No lessor shall collect or | ||
attempt to collect an amount (however
designated) that purports | ||
to reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by |
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(25) Beginning
on the effective date of this amendatory Act | ||
of the 92nd General Assembly,
personal property purchased by a | ||
lessor
who leases the property, under a lease of one year or | ||
longer executed or in
effect at the time the lessor would | ||
otherwise be subject to the tax imposed by
this Act, to a | ||
governmental body that has been issued an active tax exemption
| ||
identification number by the Department under Section 1g of the | ||
Retailers'
Occupation Tax Act. If the property is leased in a | ||
manner that does not
qualify for this exemption or is used in | ||
any other nonexempt manner, the
lessor shall be liable for the | ||
tax imposed under this Act or the Use Tax Act,
as the case may | ||
be, based on the fair market value of the property at the time
| ||
the nonqualifying use occurs. No lessor shall collect or | ||
attempt to collect
an amount (however designated) that purports | ||
to reimburse that lessor for the
tax imposed by this Act or the | ||
Use Tax Act, as the case may be, if the tax has
not been paid by | ||
the lessor. If a lessor improperly collects any such amount
| ||
from the lessee, the lessee shall have a legal right to claim a | ||
refund of that
amount from the lessor. If, however, that amount | ||
is not refunded to the lessee
for any reason, the lessor is |
liable to pay that amount to the Department.
This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(26) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04; | ||
94-1002, eff. 7-3-06.)
| ||
Section 15. The Service Occupation Tax Act is amended by | ||
changing Section 3-5 as follows:
| ||
(35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| ||
Sec. 3-5. Exemptions. The following tangible personal | ||
property is
exempt from the tax imposed by this Act:
| ||
(1) Personal property sold by a corporation, society, | ||
association,
foundation, institution, or organization, other | ||
than a limited liability
company, that is organized and | ||
operated as a not-for-profit service enterprise
for the benefit | ||
of persons 65 years of age or older if the personal property
| ||
was not purchased by the enterprise for the purpose of resale | ||
by the
enterprise.
| ||
(2) Personal property purchased by a not-for-profit |
Illinois county fair
association for use in conducting, | ||
operating, or promoting the county fair.
| ||
(3) Personal property purchased by any not-for-profit
arts | ||
or cultural organization that establishes, by proof required by | ||
the
Department by
rule, that it has received an exemption under | ||
Section 501(c)(3) of the
Internal Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date | ||
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(4) Legal tender, currency, medallions, or gold or silver | ||
coinage
issued by the State of Illinois, the government of the | ||
United States of
America, or the government of any foreign | ||
country, and bullion.
| ||
(5) Until July 1, 2003 and beginning again on September 1, | ||
2004, graphic arts machinery and equipment, including
repair | ||
and
replacement parts, both new and used, and including that | ||
manufactured on
special order or purchased for lease, certified | ||
by the purchaser to be used
primarily for graphic arts |
production.
Equipment includes chemicals or chemicals acting | ||
as catalysts but only if
the
chemicals or chemicals acting as | ||
catalysts effect a direct and immediate change
upon a graphic | ||
arts product.
| ||
(6) Personal property sold by a teacher-sponsored student | ||
organization
affiliated with an elementary or secondary school | ||
located in Illinois.
| ||
(7) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or | ||
State or federal agricultural
programs, including individual | ||
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (7).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
|
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (7) is exempt
from the | ||
provisions of
Section 3-55.
| ||
(8) Fuel and petroleum products sold to or used by an air | ||
common
carrier, certified by the carrier to be used for | ||
consumption, shipment,
or storage in the conduct of its | ||
business as an air common carrier, for
a flight destined for or | ||
returning from a location or locations
outside the United | ||
States without regard to previous or subsequent domestic
| ||
stopovers.
| ||
(9) Proceeds of mandatory service charges separately
| ||
stated on customers' bills for the purchase and consumption of | ||
food and
beverages, to the extent that the proceeds of the |
service charge are in fact
turned over as tips or as a | ||
substitute for tips to the employees who
participate directly | ||
in preparing, serving, hosting or cleaning up the
food or | ||
beverage function with respect to which the service charge is | ||
imposed.
| ||
(10) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment,
including (i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and | ||
equipment purchased
for lease; but
excluding motor vehicles | ||
required to be registered under the Illinois
Vehicle Code.
| ||
(11) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that | ||
manufactured on
special order, certified by the purchaser to be | ||
used primarily for
photoprocessing, and including | ||
photoprocessing machinery and equipment
purchased for lease.
| ||
(12) Until July 1, 2003, coal exploration, mining, | ||
offhighway hauling,
processing,
maintenance, and reclamation | ||
equipment, including
replacement parts and equipment, and | ||
including
equipment
purchased for lease, but excluding motor | ||
vehicles required to be registered
under the Illinois Vehicle | ||
Code.
| ||
(13) Beginning January 1, 1992 and through June 30, 2011, |
food for human consumption that is to be consumed off the | ||
premises
where it is sold (other than alcoholic beverages, soft | ||
drinks and food that
has been prepared for immediate | ||
consumption) and prescription and
non-prescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use,
when purchased for use by a person receiving medical | ||
assistance under
Article 5 of the Illinois Public Aid Code who | ||
resides in a licensed
long-term care facility, as defined in | ||
the Nursing Home Care Act.
| ||
(14) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(15) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes.
| ||
(16) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients sold to a lessor | ||
who leases the
equipment, under a lease of one year or longer | ||
executed or in effect at the
time of the purchase, to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act.
|
(17) Personal property sold to a lessor who leases the
| ||
property, under a
lease of one year or longer executed or in | ||
effect at the time of the purchase,
to a governmental body
that | ||
has been issued an active tax exemption identification number | ||
by the
Department under Section 1g of the Retailers' Occupation | ||
Tax Act.
| ||
(18) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
| ||
(19) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois |
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(20) Beginning July 1, 1999, game or game birds sold at a | ||
"game breeding
and
hunting preserve area" or an "exotic game | ||
hunting area" as those terms are used
in the
Wildlife Code or | ||
at a hunting enclosure approved through rules adopted by the
| ||
Department of Natural Resources. This paragraph is exempt from | ||
the provisions
of
Section 3-55.
| ||
(21) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, | ||
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
|
(22) Beginning January 1, 2000, personal property, | ||
including
food,
purchased through fundraising
events for the | ||
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
| ||
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
| ||
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is | ||
exempt
from the provisions
of Section 3-55.
| ||
(23) Beginning January 1, 2000
and through December 31, | ||
2001, new or used automatic vending
machines that prepare and | ||
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for
machines used in commercial, coin-operated amusement
and | ||
vending business if a use or occupation tax is paid on the | ||
gross receipts
derived from
the use of the commercial, | ||
coin-operated amusement and vending machines.
This paragraph | ||
is exempt from the provisions of Section 3-55.
| ||
(24) Beginning
on the effective date of this amendatory Act | ||
of the 92nd General Assembly,
computers and communications |
equipment
utilized for any hospital purpose and equipment used | ||
in the diagnosis,
analysis, or treatment of hospital patients | ||
sold to a lessor who leases the
equipment, under a lease of one | ||
year or longer executed or in effect at the
time of the | ||
purchase, to a hospital that has been issued an active tax
| ||
exemption identification number by the Department under | ||
Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||
is exempt from the provisions of
Section 3-55.
| ||
(25) Beginning
on the effective date of this amendatory Act | ||
of the 92nd General Assembly,
personal property sold to a | ||
lessor who
leases the property, under a lease of one year or | ||
longer executed or in effect
at the time of the purchase, to a | ||
governmental body that has been issued an
active tax exemption | ||
identification number by the Department under Section 1g
of the | ||
Retailers' Occupation Tax Act. This paragraph is exempt from | ||
the
provisions of Section 3-55.
| ||
(26) Beginning on January 1, 2002 and through June 30, | ||
2011, tangible personal property
purchased
from an Illinois | ||
retailer by a taxpayer engaged in centralized purchasing
| ||
activities in Illinois who will, upon receipt of the property | ||
in Illinois,
temporarily store the property in Illinois (i) for | ||
the purpose of subsequently
transporting it outside this State | ||
for use or consumption thereafter solely
outside this State or | ||
(ii) for the purpose of being processed, fabricated, or
| ||
manufactured into, attached to, or incorporated into other | ||
tangible personal
property to be transported outside this State |
and thereafter used or consumed
solely outside this State. The | ||
Director of Revenue shall, pursuant to rules
adopted in | ||
accordance with the Illinois Administrative Procedure Act, | ||
issue a
permit to any taxpayer in good standing with the | ||
Department who is eligible for
the exemption under this | ||
paragraph (26). The permit issued under
this paragraph (26) | ||
shall authorize the holder, to the extent and
in the manner | ||
specified in the rules adopted under this Act, to purchase
| ||
tangible personal property from a retailer exempt from the | ||
taxes imposed by
this Act. Taxpayers shall maintain all | ||
necessary books and records to
substantiate the use and | ||
consumption of all such tangible personal property
outside of | ||
the State of Illinois.
| ||
(27) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 3-55.
| ||
(Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04; | ||
94-1002, eff. 7-3-06.)
| ||
Section 20. The Retailers' Occupation Tax Act is amended by | ||
changing Section 2-5 as follows:
|
(35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| ||
Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||
sale of
the following tangible personal property are exempt | ||
from the tax imposed
by this Act:
| ||
(1) Farm chemicals.
| ||
(2) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or | ||
State or federal agricultural
programs, including individual | ||
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (2).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed, if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be |
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (7) is exempt
from the | ||
provisions of
Section 2-70.
| ||
(3) Until July 1, 2003, distillation machinery and | ||
equipment, sold as a
unit or kit,
assembled or installed by the | ||
retailer, certified by the user to be used
only for the | ||
production of ethyl alcohol that will be used for consumption
| ||
as motor fuel or as a component of motor fuel for the personal | ||
use of the
user, and not subject to sale or resale.
| ||
(4) Until July 1, 2003 and beginning again September 1, | ||
2004, graphic arts machinery and equipment, including
repair | ||
and
replacement parts, both new and used, and including that | ||
manufactured on
special order or purchased for lease, certified | ||
by the purchaser to be used
primarily for graphic arts | ||
production.
Equipment includes chemicals or
chemicals acting |
as catalysts but only if
the chemicals or chemicals acting as | ||
catalysts effect a direct and immediate
change upon a
graphic | ||
arts product.
| ||
(5) A motor vehicle of the first division, a motor vehicle | ||
of the second
division that is a self-contained motor vehicle | ||
designed or permanently
converted to provide living quarters | ||
for recreational, camping, or travel
use, with direct walk | ||
through access to the living quarters from the
driver's seat, | ||
or a motor vehicle of the second division that is of the van
| ||
configuration designed for the transportation of not less than | ||
7 nor more
than 16 passengers, as defined in Section 1-146 of | ||
the Illinois Vehicle
Code, that is used for automobile renting, | ||
as defined in the Automobile
Renting Occupation and Use Tax | ||
Act.
| ||
(6) Personal property sold by a teacher-sponsored student | ||
organization
affiliated with an elementary or secondary school | ||
located in Illinois.
| ||
(7) Until July 1, 2003, proceeds of that portion of the | ||
selling price of
a passenger car the
sale of which is subject | ||
to the Replacement Vehicle Tax.
| ||
(8) Personal property sold to an Illinois county fair | ||
association for
use in conducting, operating, or promoting the | ||
county fair.
| ||
(9) Personal property sold to a not-for-profit arts
or | ||
cultural organization that establishes, by proof required by | ||
the Department
by
rule, that it has received an exemption under |
Section 501(c)(3) of the
Internal Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date | ||
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(10) Personal property sold by a corporation, society, | ||
association,
foundation, institution, or organization, other | ||
than a limited liability
company, that is organized and | ||
operated as a not-for-profit service enterprise
for the benefit | ||
of persons 65 years of age or older if the personal property
| ||
was not purchased by the enterprise for the purpose of resale | ||
by the
enterprise.
| ||
(11) Personal property sold to a governmental body, to a | ||
corporation,
society, association, foundation, or institution | ||
organized and operated
exclusively for charitable, religious, | ||
or educational purposes, or to a
not-for-profit corporation, | ||
society, association, foundation, institution,
or organization | ||
that has no compensated officers or employees and that is
| ||
organized and operated primarily for the recreation of persons |
55 years of
age or older. A limited liability company may | ||
qualify for the exemption under
this paragraph only if the | ||
limited liability company is organized and operated
| ||
exclusively for educational purposes. On and after July 1, | ||
1987, however, no
entity otherwise eligible for this exemption | ||
shall make tax-free purchases
unless it has an active | ||
identification number issued by the Department.
| ||
(12) Tangible personal property sold to
interstate | ||
carriers
for hire for use as
rolling stock moving in interstate | ||
commerce or to lessors under leases of
one year or longer | ||
executed or in effect at the time of purchase by
interstate | ||
carriers for hire for use as rolling stock moving in interstate
| ||
commerce and equipment operated by a telecommunications | ||
provider, licensed as a
common carrier by the Federal | ||
Communications Commission, which is permanently
installed in | ||
or affixed to aircraft moving in interstate commerce.
| ||
(12-5) On and after July 1, 2003 and through June 30, 2004, | ||
motor vehicles of the second division
with a gross vehicle | ||
weight in excess of 8,000 pounds
that
are
subject to the | ||
commercial distribution fee imposed under Section 3-815.1 of
| ||
the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||
through June 30, 2005, the use in this State of motor vehicles | ||
of the second division: (i) with a gross vehicle weight rating | ||
in excess of 8,000 pounds; (ii) that are subject to the | ||
commercial distribution fee imposed under Section 3-815.1 of | ||
the Illinois Vehicle Code; and (iii) that are primarily used |
for commercial purposes. Through June 30, 2005, this
exemption | ||
applies to repair and replacement parts added
after the
initial | ||
purchase of such a motor vehicle if that motor vehicle is used | ||
in a
manner that
would qualify for the rolling stock exemption | ||
otherwise provided for in this
Act. For purposes of this | ||
paragraph, "used for commercial purposes" means the | ||
transportation of persons or property in furtherance of any | ||
commercial or industrial enterprise whether for-hire or not.
| ||
(13) Proceeds from sales to owners, lessors, or
shippers of
| ||
tangible personal property that is utilized by interstate | ||
carriers for
hire for use as rolling stock moving in interstate | ||
commerce
and equipment operated by a telecommunications | ||
provider, licensed as a
common carrier by the Federal | ||
Communications Commission, which is
permanently installed in | ||
or affixed to aircraft moving in interstate commerce.
| ||
(14) Machinery and equipment that will be used by the | ||
purchaser, or a
lessee of the purchaser, primarily in the | ||
process of manufacturing or
assembling tangible personal | ||
property for wholesale or retail sale or
lease, whether the | ||
sale or lease is made directly by the manufacturer or by
some | ||
other person, whether the materials used in the process are | ||
owned by
the manufacturer or some other person, or whether the | ||
sale or lease is made
apart from or as an incident to the | ||
seller's engaging in the service
occupation of producing | ||
machines, tools, dies, jigs, patterns, gauges, or
other similar | ||
items of no commercial value on special order for a particular
|
purchaser.
| ||
(15) Proceeds of mandatory service charges separately | ||
stated on
customers' bills for purchase and consumption of food | ||
and beverages, to the
extent that the proceeds of the service | ||
charge are in fact turned over as
tips or as a substitute for | ||
tips to the employees who participate directly
in preparing, | ||
serving, hosting or cleaning up the food or beverage function
| ||
with respect to which the service charge is imposed.
| ||
(16) Petroleum products sold to a purchaser if the seller
| ||
is prohibited by federal law from charging tax to the | ||
purchaser.
| ||
(17) Tangible personal property sold to a common carrier by | ||
rail or
motor that
receives the physical possession of the | ||
property in Illinois and that
transports the property, or | ||
shares with another common carrier in the
transportation of the | ||
property, out of Illinois on a standard uniform bill
of lading | ||
showing the seller of the property as the shipper or consignor | ||
of
the property to a destination outside Illinois, for use | ||
outside Illinois.
| ||
(18) Legal tender, currency, medallions, or gold or silver | ||
coinage
issued by the State of Illinois, the government of the | ||
United States of
America, or the government of any foreign | ||
country, and bullion.
| ||
(19) Until July 1 2003, oil field exploration, drilling, | ||
and production
equipment, including
(i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and |
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and | ||
equipment purchased
for lease; but
excluding motor vehicles | ||
required to be registered under the Illinois
Vehicle Code.
| ||
(20) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that | ||
manufactured on
special order, certified by the purchaser to be | ||
used primarily for
photoprocessing, and including | ||
photoprocessing machinery and equipment
purchased for lease.
| ||
(21) Until July 1, 2003, coal exploration, mining, | ||
offhighway hauling,
processing,
maintenance, and reclamation | ||
equipment, including
replacement parts and equipment, and | ||
including
equipment purchased for lease, but excluding motor | ||
vehicles required to be
registered under the Illinois Vehicle | ||
Code.
| ||
(22) Fuel and petroleum products sold to or used by an air | ||
carrier,
certified by the carrier to be used for consumption, | ||
shipment, or storage
in the conduct of its business as an air | ||
common carrier, for a flight
destined for or returning from a | ||
location or locations
outside the United States without regard | ||
to previous or subsequent domestic
stopovers.
| ||
(23) A transaction in which the purchase order is received | ||
by a florist
who is located outside Illinois, but who has a | ||
florist located in Illinois
deliver the property to the |
purchaser or the purchaser's donee in Illinois.
| ||
(24) Fuel consumed or used in the operation of ships, | ||
barges, or vessels
that are used primarily in or for the | ||
transportation of property or the
conveyance of persons for | ||
hire on rivers bordering on this State if the
fuel is delivered | ||
by the seller to the purchaser's barge, ship, or vessel
while | ||
it is afloat upon that bordering river.
| ||
(25) Except as provided in item (25-5) of this Section, a
| ||
motor vehicle sold in this State to a nonresident even though | ||
the
motor vehicle is delivered to the nonresident in this | ||
State, if the motor
vehicle is not to be titled in this State, | ||
and if a drive-away permit
is issued to the motor vehicle as | ||
provided in Section 3-603 of the Illinois
Vehicle Code or if | ||
the nonresident purchaser has vehicle registration
plates to | ||
transfer to the motor vehicle upon returning to his or her home
| ||
state. The issuance of the drive-away permit or having
the
| ||
out-of-state registration plates to be transferred is prima | ||
facie evidence
that the motor vehicle will not be titled in | ||
this State.
| ||
(25-5) The exemption under item (25) does not apply if the | ||
state in which the motor vehicle will be titled does not allow | ||
a reciprocal exemption for a motor vehicle sold and delivered | ||
in that state to an Illinois resident but titled in Illinois. | ||
The tax collected under this Act on the sale of a motor vehicle | ||
in this State to a resident of another state that does not | ||
allow a reciprocal exemption shall be imposed at a rate equal |
to the state's rate of tax on taxable property in the state in | ||
which the purchaser is a resident, except that the tax shall | ||
not exceed the tax that would otherwise be imposed under this | ||
Act. At the time of the sale, the purchaser shall execute a | ||
statement, signed under penalty of perjury, of his or her | ||
intent to title the vehicle in the state in which the purchaser | ||
is a resident within 30 days after the sale and of the fact of | ||
the payment to the State of Illinois of tax in an amount | ||
equivalent to the state's rate of tax on taxable property in | ||
his or her state of residence and shall submit the statement to | ||
the appropriate tax collection agency in his or her state of | ||
residence. In addition, the retailer must retain a signed copy | ||
of the statement in his or her records. Nothing in this item | ||
shall be construed to require the removal of the vehicle from | ||
this state following the filing of an intent to title the | ||
vehicle in the purchaser's state of residence if the purchaser | ||
titles the vehicle in his or her state of residence within 30 | ||
days after the date of sale. The tax collected under this Act | ||
in accordance with this item (25-5) shall be proportionately | ||
distributed as if the tax were collected at the 6.25% general | ||
rate imposed under this Act.
| ||
(26) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(27) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
|
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes.
| ||
(28) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients sold to a lessor | ||
who leases the
equipment, under a lease of one year or longer | ||
executed or in effect at the
time of the purchase, to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of | ||
this Act.
| ||
(29) Personal property sold to a lessor who leases the
| ||
property, under a
lease of one year or longer executed or in | ||
effect at the time of the purchase,
to a governmental body
that | ||
has been issued an active tax exemption identification number | ||
by the
Department under Section 1g of this Act.
| ||
(30) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
|
(31) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(32) Beginning July 1, 1999, game or game birds sold at a | ||
"game breeding
and
hunting preserve area" or an "exotic game | ||
hunting area" as those terms are used
in the
Wildlife Code or | ||
at a hunting enclosure approved through rules adopted by the
| ||
Department of Natural Resources. This paragraph is exempt from | ||
the provisions
of
Section 2-70.
| ||
(33) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, | ||
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for |
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(34) Beginning January 1, 2000, personal property, | ||
including food, purchased
through fundraising events for the | ||
benefit of a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school districts if
| ||
the events are sponsored by an entity recognized by the school | ||
district that
consists primarily of volunteers and includes | ||
parents and teachers of the
school children. This paragraph | ||
does not apply to fundraising events (i) for
the benefit of | ||
private home instruction or (ii) for which the fundraising
| ||
entity purchases the personal property sold at the events from | ||
another
individual or entity that sold the property for the | ||
purpose of resale by the
fundraising entity and that profits | ||
from the sale to the fundraising entity.
This paragraph is | ||
exempt from the provisions of Section 2-70.
| ||
(35) Beginning January 1, 2000 and through December 31, | ||
2001, new or used
automatic vending machines that prepare and |
serve hot food and beverages,
including coffee, soup, and other | ||
items, and replacement parts for these
machines. Beginning | ||
January 1, 2002 and through June 30, 2003, machines
and parts | ||
for machines used in
commercial, coin-operated amusement and | ||
vending business if a use or occupation
tax is paid on the | ||
gross receipts derived from the use of the commercial,
| ||
coin-operated amusement and vending machines. This paragraph | ||
is exempt from
the provisions of Section 2-70.
| ||
(35-5) Beginning August 23, 2001 and through June 30, 2011, | ||
food for human consumption that is to be consumed off
the | ||
premises where it is sold (other than alcoholic beverages, soft | ||
drinks,
and food that has been prepared for immediate | ||
consumption) and prescription
and nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use, when
purchased for use by a person receiving medical | ||
assistance under Article 5 of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act.
| ||
(36) Beginning August 2, 2001, computers and | ||
communications equipment
utilized for any hospital purpose and | ||
equipment used in the diagnosis,
analysis, or treatment of | ||
hospital patients sold to a lessor who leases the
equipment, | ||
under a lease of one year or longer executed or in effect at | ||
the
time of the purchase, to a hospital that has been issued an | ||
active tax
exemption identification number by the Department |
under Section 1g of this Act.
This paragraph is exempt from the | ||
provisions of Section 2-70.
| ||
(37) Beginning August 2, 2001, personal property sold to a | ||
lessor who
leases the property, under a lease of one year or | ||
longer executed or in effect
at the time of the purchase, to a | ||
governmental body that has been issued an
active tax exemption | ||
identification number by the Department under Section 1g
of | ||
this Act. This paragraph is exempt from the provisions of | ||
Section 2-70.
| ||
(38) Beginning on January 1, 2002 and through June 30, | ||
2011, tangible personal property purchased
from an Illinois | ||
retailer by a taxpayer engaged in centralized purchasing
| ||
activities in Illinois who will, upon receipt of the property | ||
in Illinois,
temporarily store the property in Illinois (i) for | ||
the purpose of subsequently
transporting it outside this State | ||
for use or consumption thereafter solely
outside this State or | ||
(ii) for the purpose of being processed, fabricated, or
| ||
manufactured into, attached to, or incorporated into other | ||
tangible personal
property to be transported outside this State | ||
and thereafter used or consumed
solely outside this State. The | ||
Director of Revenue shall, pursuant to rules
adopted in | ||
accordance with the Illinois Administrative Procedure Act, | ||
issue a
permit to any taxpayer in good standing with the | ||
Department who is eligible for
the exemption under this | ||
paragraph (38). The permit issued under
this paragraph (38) | ||
shall authorize the holder, to the extent and
in the manner |
specified in the rules adopted under this Act, to purchase
| ||
tangible personal property from a retailer exempt from the | ||
taxes imposed by
this Act. Taxpayers shall maintain all | ||
necessary books and records to
substantiate the use and | ||
consumption of all such tangible personal property
outside of | ||
the State of Illinois.
| ||
(39) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 2-70.
| ||
(Source: P.A. 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, | ||
eff. 7-30-04; 93-1033, eff. 9-3-04; 93-1068, eff. 1-15-05; | ||
94-1002, eff. 7-3-06.)
|