[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_HB0045
LRB9100501PTpk
1 AN ACT concerning a tax exemption for reinforced steel
2 gun safes.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Use Tax Act is amended by changing
6 Section 3-5 as follows:
7 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
8 Sec. 3-5. Exemptions. Use of the following tangible
9 personal property is exempt from the tax imposed by this Act:
10 (1) Personal property purchased from a corporation,
11 society, association, foundation, institution, or
12 organization, other than a limited liability company, that is
13 organized and operated as a not-for-profit service enterprise
14 for the benefit of persons 65 years of age or older if the
15 personal property was not purchased by the enterprise for the
16 purpose of resale by the enterprise.
17 (2) Personal property purchased by a not-for-profit
18 Illinois county fair association for use in conducting,
19 operating, or promoting the county fair.
20 (3) Personal property purchased by a not-for-profit
21 music or dramatic arts organization that establishes, by
22 proof required by the Department by rule, that it has
23 received an exemption under Section 501(c)(3) of the Internal
24 Revenue Code and that is organized and operated for the
25 presentation of live public performances of musical or
26 theatrical works on a regular basis.
27 (4) Personal property purchased by a governmental body,
28 by a corporation, society, association, foundation, or
29 institution organized and operated exclusively for
30 charitable, religious, or educational purposes, or by a
31 not-for-profit corporation, society, association, foundation,
-2- LRB9100501PTpk
1 institution, or organization that has no compensated officers
2 or employees and that is organized and operated primarily for
3 the recreation of persons 55 years of age or older. A limited
4 liability company may qualify for the exemption under this
5 paragraph only if the limited liability company is organized
6 and operated exclusively for educational purposes. On and
7 after July 1, 1987, however, no entity otherwise eligible for
8 this exemption shall make tax-free purchases unless it has an
9 active exemption identification number issued by the
10 Department.
11 (5) A passenger car that is a replacement vehicle to the
12 extent that the purchase price of the car is subject to the
13 Replacement Vehicle Tax.
14 (6) Graphic arts machinery and equipment, including
15 repair and replacement parts, both new and used, and
16 including that manufactured on special order, certified by
17 the purchaser to be used primarily for graphic arts
18 production, and including machinery and equipment purchased
19 for lease.
20 (7) Farm chemicals.
21 (8) Legal tender, currency, medallions, or gold or
22 silver coinage issued by the State of Illinois, the
23 government of the United States of America, or the government
24 of any foreign country, and bullion.
25 (9) Personal property purchased from a teacher-sponsored
26 student organization affiliated with an elementary or
27 secondary school located in Illinois.
28 (10) A motor vehicle of the first division, a motor
29 vehicle of the second division that is a self-contained motor
30 vehicle designed or permanently converted to provide living
31 quarters for recreational, camping, or travel use, with
32 direct walk through to the living quarters from the driver's
33 seat, or a motor vehicle of the second division that is of
34 the van configuration designed for the transportation of not
-3- LRB9100501PTpk
1 less than 7 nor more than 16 passengers, as defined in
2 Section 1-146 of the Illinois Vehicle Code, that is used for
3 automobile renting, as defined in the Automobile Renting
4 Occupation and Use Tax Act.
5 (11) Farm machinery and equipment, both new and used,
6 including that manufactured on special order, certified by
7 the purchaser to be used primarily for production agriculture
8 or State or federal agricultural programs, including
9 individual replacement parts for the machinery and equipment,
10 including machinery and equipment purchased for lease, and
11 including implements of husbandry defined in Section 1-130 of
12 the Illinois Vehicle Code, farm machinery and agricultural
13 chemical and fertilizer spreaders, and nurse wagons required
14 to be registered under Section 3-809 of the Illinois Vehicle
15 Code, but excluding other motor vehicles required to be
16 registered under the Illinois Vehicle Code. Horticultural
17 polyhouses or hoop houses used for propagating, growing, or
18 overwintering plants shall be considered farm machinery and
19 equipment under this item (11). Agricultural chemical tender
20 tanks and dry boxes shall include units sold separately from
21 a motor vehicle required to be licensed and units sold
22 mounted on a motor vehicle required to be licensed if the
23 selling price of the tender is separately stated.
24 Farm machinery and equipment shall include precision
25 farming equipment that is installed or purchased to be
26 installed on farm machinery and equipment including, but not
27 limited to, tractors, harvesters, sprayers, planters,
28 seeders, or spreaders. Precision farming equipment includes,
29 but is not limited to, soil testing sensors, computers,
30 monitors, software, global positioning and mapping systems,
31 and other such equipment.
32 Farm machinery and equipment also includes computers,
33 sensors, software, and related equipment used primarily in
34 the computer-assisted operation of production agriculture
-4- LRB9100501PTpk
1 facilities, equipment, and activities such as, but not
2 limited to, the collection, monitoring, and correlation of
3 animal and crop data for the purpose of formulating animal
4 diets and agricultural chemicals. This item (11) is exempt
5 from the provisions of Section 3-90.
6 (12) Fuel and petroleum products sold to or used by an
7 air common carrier, certified by the carrier to be used for
8 consumption, shipment, or storage in the conduct of its
9 business as an air common carrier, for a flight destined for
10 or returning from a location or locations outside the United
11 States without regard to previous or subsequent domestic
12 stopovers.
13 (13) Proceeds of mandatory service charges separately
14 stated on customers' bills for the purchase and consumption
15 of food and beverages purchased at retail from a retailer, to
16 the extent that the proceeds of the service charge are in
17 fact turned over as tips or as a substitute for tips to the
18 employees who participate directly in preparing, serving,
19 hosting or cleaning up the food or beverage function with
20 respect to which the service charge is imposed.
21 (14) Oil field exploration, drilling, and production
22 equipment, including (i) rigs and parts of rigs, rotary rigs,
23 cable tool rigs, and workover rigs, (ii) pipe and tubular
24 goods, including casing and drill strings, (iii) pumps and
25 pump-jack units, (iv) storage tanks and flow lines, (v) any
26 individual replacement part for oil field exploration,
27 drilling, and production equipment, and (vi) machinery and
28 equipment purchased for lease; but excluding motor vehicles
29 required to be registered under the Illinois Vehicle Code.
30 (15) Photoprocessing machinery and equipment, including
31 repair and replacement parts, both new and used, including
32 that manufactured on special order, certified by the
33 purchaser to be used primarily for photoprocessing, and
34 including photoprocessing machinery and equipment purchased
-5- LRB9100501PTpk
1 for lease.
2 (16) Coal exploration, mining, offhighway hauling,
3 processing, maintenance, and reclamation equipment, including
4 replacement parts and equipment, and including equipment
5 purchased for lease, but excluding motor vehicles required to
6 be registered under the Illinois Vehicle Code.
7 (17) Distillation machinery and equipment, sold as a
8 unit or kit, assembled or installed by the retailer,
9 certified by the user to be used only for the production of
10 ethyl alcohol that will be used for consumption as motor fuel
11 or as a component of motor fuel for the personal use of the
12 user, and not subject to sale or resale.
13 (18) Manufacturing and assembling machinery and
14 equipment used primarily in the process of manufacturing or
15 assembling tangible personal property for wholesale or retail
16 sale or lease, whether that sale or lease is made directly by
17 the manufacturer or by some other person, whether the
18 materials used in the process are owned by the manufacturer
19 or some other person, or whether that sale or lease is made
20 apart from or as an incident to the seller's engaging in the
21 service occupation of producing machines, tools, dies, jigs,
22 patterns, gauges, or other similar items of no commercial
23 value on special order for a particular purchaser.
24 (19) Personal property delivered to a purchaser or
25 purchaser's donee inside Illinois when the purchase order for
26 that personal property was received by a florist located
27 outside Illinois who has a florist located inside Illinois
28 deliver the personal property.
29 (20) Semen used for artificial insemination of livestock
30 for direct agricultural production.
31 (21) Horses, or interests in horses, registered with and
32 meeting the requirements of any of the Arabian Horse Club
33 Registry of America, Appaloosa Horse Club, American Quarter
34 Horse Association, United States Trotting Association, or
-6- LRB9100501PTpk
1 Jockey Club, as appropriate, used for purposes of breeding or
2 racing for prizes.
3 (22) Computers and communications equipment utilized for
4 any hospital purpose and equipment used in the diagnosis,
5 analysis, or treatment of hospital patients purchased by a
6 lessor who leases the equipment, under a lease of one year or
7 longer executed or in effect at the time the lessor would
8 otherwise be subject to the tax imposed by this Act, to a
9 hospital that has been issued an active tax exemption
10 identification number by the Department under Section 1g of
11 the Retailers' Occupation Tax Act. If the equipment is
12 leased in a manner that does not qualify for this exemption
13 or is used in any other non-exempt manner, the lessor shall
14 be liable for the tax imposed under this Act or the Service
15 Use Tax Act, as the case may be, based on the fair market
16 value of the property at the time the non-qualifying use
17 occurs. No lessor shall collect or attempt to collect an
18 amount (however designated) that purports to reimburse that
19 lessor for the tax imposed by this Act or the Service Use Tax
20 Act, as the case may be, if the tax has not been paid by the
21 lessor. If a lessor improperly collects any such amount from
22 the lessee, the lessee shall have a legal right to claim a
23 refund of that amount from the lessor. If, however, that
24 amount is not refunded to the lessee for any reason, the
25 lessor is liable to pay that amount to the Department.
26 (23) Personal property purchased by a lessor who leases
27 the property, under a lease of one year or longer executed
28 or in effect at the time the lessor would otherwise be
29 subject to the tax imposed by this Act, to a governmental
30 body that has been issued an active sales tax exemption
31 identification number by the Department under Section 1g of
32 the Retailers' Occupation Tax Act. If the property is leased
33 in a manner that does not qualify for this exemption or used
34 in any other non-exempt manner, the lessor shall be liable
-7- LRB9100501PTpk
1 for the tax imposed under this Act or the Service Use Tax
2 Act, as the case may be, based on the fair market value of
3 the property at the time the non-qualifying use occurs. No
4 lessor shall collect or attempt to collect an amount (however
5 designated) that purports to reimburse that lessor for the
6 tax imposed by this Act or the Service Use Tax Act, as the
7 case may be, if the tax has not been paid by the lessor. If
8 a lessor improperly collects any such amount from the lessee,
9 the lessee shall have a legal right to claim a refund of that
10 amount from the lessor. If, however, that amount is not
11 refunded to the lessee for any reason, the lessor is liable
12 to pay that amount to the Department.
13 (24) Beginning with taxable years ending on or after
14 December 31, 1995 and ending with taxable years ending on or
15 before December 31, 2004, personal property that is donated
16 for disaster relief to be used in a State or federally
17 declared disaster area in Illinois or bordering Illinois by a
18 manufacturer or retailer that is registered in this State to
19 a corporation, society, association, foundation, or
20 institution that has been issued a sales tax exemption
21 identification number by the Department that assists victims
22 of the disaster who reside within the declared disaster area.
23 (25) Beginning with taxable years ending on or after
24 December 31, 1995 and ending with taxable years ending on or
25 before December 31, 2004, personal property that is used in
26 the performance of infrastructure repairs in this State,
27 including but not limited to municipal roads and streets,
28 access roads, bridges, sidewalks, waste disposal systems,
29 water and sewer line extensions, water distribution and
30 purification facilities, storm water drainage and retention
31 facilities, and sewage treatment facilities, resulting from a
32 State or federally declared disaster in Illinois or bordering
33 Illinois when such repairs are initiated on facilities
34 located in the declared disaster area within 6 months after
-8- LRB9100501PTpk
1 the disaster.
2 (26) Beginning on January 1, 2000 and ending on December
3 31, 2004, any reinforced steel gun safe used to store
4 firearms or ammunition.
5 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
6 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
7 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
8 eff. 12-12-97; 90-605, eff. 6-30-98.)
9 Section 10. The Service Use Tax Act is amended by
10 changing Section 3-5 as follows:
11 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
12 Sec. 3-5. Exemptions. Use of the following tangible
13 personal property is exempt from the tax imposed by this Act:
14 (1) Personal property purchased from a corporation,
15 society, association, foundation, institution, or
16 organization, other than a limited liability company, that is
17 organized and operated as a not-for-profit service enterprise
18 for the benefit of persons 65 years of age or older if the
19 personal property was not purchased by the enterprise for the
20 purpose of resale by the enterprise.
21 (2) Personal property purchased by a non-profit Illinois
22 county fair association for use in conducting, operating, or
23 promoting the county fair.
24 (3) Personal property purchased by a not-for-profit
25 music or dramatic arts organization that establishes, by
26 proof required by the Department by rule, that it has
27 received an exemption under Section 501(c)(3) of the Internal
28 Revenue Code and that is organized and operated for the
29 presentation of live public performances of musical or
30 theatrical works on a regular basis.
31 (4) Legal tender, currency, medallions, or gold or
32 silver coinage issued by the State of Illinois, the
-9- LRB9100501PTpk
1 government of the United States of America, or the government
2 of any foreign country, and bullion.
3 (5) Graphic arts machinery and equipment, including
4 repair and replacement parts, both new and used, and
5 including that manufactured on special order or purchased for
6 lease, certified by the purchaser to be used primarily for
7 graphic arts production.
8 (6) Personal property purchased from a teacher-sponsored
9 student organization affiliated with an elementary or
10 secondary school located in Illinois.
11 (7) Farm machinery and equipment, both new and used,
12 including that manufactured on special order, certified by
13 the purchaser to be used primarily for production agriculture
14 or State or federal agricultural programs, including
15 individual replacement parts for the machinery and equipment,
16 including machinery and equipment purchased for lease, and
17 including implements of husbandry defined in Section 1-130 of
18 the Illinois Vehicle Code, farm machinery and agricultural
19 chemical and fertilizer spreaders, and nurse wagons required
20 to be registered under Section 3-809 of the Illinois Vehicle
21 Code, but excluding other motor vehicles required to be
22 registered under the Illinois Vehicle Code. Horticultural
23 polyhouses or hoop houses used for propagating, growing, or
24 overwintering plants shall be considered farm machinery and
25 equipment under this item (7). Agricultural chemical tender
26 tanks and dry boxes shall include units sold separately from
27 a motor vehicle required to be licensed and units sold
28 mounted on a motor vehicle required to be licensed if the
29 selling price of the tender is separately stated.
30 Farm machinery and equipment shall include precision
31 farming equipment that is installed or purchased to be
32 installed on farm machinery and equipment including, but not
33 limited to, tractors, harvesters, sprayers, planters,
34 seeders, or spreaders. Precision farming equipment includes,
-10- LRB9100501PTpk
1 but is not limited to, soil testing sensors, computers,
2 monitors, software, global positioning and mapping systems,
3 and other such equipment.
4 Farm machinery and equipment also includes computers,
5 sensors, software, and related equipment used primarily in
6 the computer-assisted operation of production agriculture
7 facilities, equipment, and activities such as, but not
8 limited to, the collection, monitoring, and correlation of
9 animal and crop data for the purpose of formulating animal
10 diets and agricultural chemicals. This item (7) is exempt
11 from the provisions of Section 3-75.
12 (8) Fuel and petroleum products sold to or used by an
13 air common carrier, certified by the carrier to be used for
14 consumption, shipment, or storage in the conduct of its
15 business as an air common carrier, for a flight destined for
16 or returning from a location or locations outside the United
17 States without regard to previous or subsequent domestic
18 stopovers.
19 (9) Proceeds of mandatory service charges separately
20 stated on customers' bills for the purchase and consumption
21 of food and beverages acquired as an incident to the purchase
22 of a service from a serviceman, to the extent that the
23 proceeds of the service charge are in fact turned over as
24 tips or as a substitute for tips to the employees who
25 participate directly in preparing, serving, hosting or
26 cleaning up the food or beverage function with respect to
27 which the service charge is imposed.
28 (10) Oil field exploration, drilling, and production
29 equipment, including (i) rigs and parts of rigs, rotary rigs,
30 cable tool rigs, and workover rigs, (ii) pipe and tubular
31 goods, including casing and drill strings, (iii) pumps and
32 pump-jack units, (iv) storage tanks and flow lines, (v) any
33 individual replacement part for oil field exploration,
34 drilling, and production equipment, and (vi) machinery and
-11- LRB9100501PTpk
1 equipment purchased for lease; but excluding motor vehicles
2 required to be registered under the Illinois Vehicle Code.
3 (11) Proceeds from the sale of photoprocessing machinery
4 and equipment, including repair and replacement parts, both
5 new and used, including that manufactured on special order,
6 certified by the purchaser to be used primarily for
7 photoprocessing, and including photoprocessing machinery and
8 equipment purchased for lease.
9 (12) Coal exploration, mining, offhighway hauling,
10 processing, maintenance, and reclamation equipment, including
11 replacement parts and equipment, and including equipment
12 purchased for lease, but excluding motor vehicles required to
13 be registered under the Illinois Vehicle Code.
14 (13) Semen used for artificial insemination of livestock
15 for direct agricultural production.
16 (14) 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 (15) Computers and communications equipment utilized for
23 any hospital purpose and equipment used in the diagnosis,
24 analysis, or treatment of hospital patients purchased by a
25 lessor who leases the equipment, under a lease of one year or
26 longer executed or in effect at the time the lessor would
27 otherwise be subject to the tax imposed by this Act, to a
28 hospital that has been issued an active tax exemption
29 identification number by the Department under Section 1g of
30 the Retailers' Occupation Tax Act. If the equipment is leased
31 in a manner that does not qualify for this exemption or is
32 used in any other non-exempt manner, the lessor shall be
33 liable for the tax imposed under this Act or the Use Tax Act,
34 as the case may be, based on the fair market value of the
-12- LRB9100501PTpk
1 property at the time the non-qualifying use occurs. No
2 lessor shall collect or attempt to collect an amount (however
3 designated) that purports to reimburse that lessor for the
4 tax imposed by this Act or the Use Tax Act, as the case may
5 be, if the tax has not been paid by the lessor. If a lessor
6 improperly collects any such amount from the lessee, the
7 lessee shall have a legal right to claim a refund of that
8 amount from the lessor. If, however, that amount is not
9 refunded to the lessee for any reason, the lessor is liable
10 to pay that amount to the Department.
11 (16) Personal property purchased by a lessor who leases
12 the property, under a lease of one year or longer executed or
13 in effect at the time the lessor would otherwise be subject
14 to the tax imposed by this Act, to a governmental body that
15 has been issued an active tax exemption identification number
16 by the Department under Section 1g of the Retailers'
17 Occupation Tax Act. If the property is leased in a manner
18 that does not qualify for this exemption or is used in any
19 other non-exempt manner, the lessor shall be liable for the
20 tax imposed under this Act or the Use Tax Act, as the case
21 may be, based on the fair market value of the property at the
22 time the non-qualifying use occurs. No lessor shall collect
23 or attempt to collect an amount (however designated) that
24 purports to reimburse that lessor for the tax imposed by this
25 Act or the Use Tax Act, as the case may be, if the tax has
26 not been paid by the lessor. If a lessor improperly collects
27 any such amount from the lessee, the lessee shall have a
28 legal right to claim a refund of that amount from the lessor.
29 If, however, that amount is not refunded to the lessee for
30 any reason, the lessor is liable to pay that amount to the
31 Department.
32 (17) 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
-13- LRB9100501PTpk
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 (18) 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 (19) Beginning on January 1, 2000 and ending on December
22 31, 2004, any reinforced steel gun safe used to store
23 firearms or ammunition.
24 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
25 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
26 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
27 eff. 12-12-97; 90-605, eff. 6-30-98.)
28 Section 15. The Service Occupation Tax Act is amended by
29 changing Section 3-5 as follows:
30 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
31 Sec. 3-5. Exemptions. The following tangible personal
32 property is exempt from the tax imposed by this Act:
-14- LRB9100501PTpk
1 (1) Personal property sold by a corporation, society,
2 association, foundation, institution, or organization, other
3 than a limited liability company, that is organized and
4 operated as a not-for-profit service enterprise for the
5 benefit of persons 65 years of age or older if the personal
6 property was not purchased by the enterprise for the purpose
7 of resale by the enterprise.
8 (2) Personal property purchased by a not-for-profit
9 Illinois county fair association for use in conducting,
10 operating, or promoting the county fair.
11 (3) Personal property purchased by any not-for-profit
12 music or dramatic arts organization that establishes, by
13 proof required by the Department by rule, that it has
14 received an exemption under Section 501(c)(3) of the
15 Internal Revenue Code and that is organized and operated for
16 the presentation of live public performances of musical or
17 theatrical works on a regular basis.
18 (4) Legal tender, currency, medallions, or gold or
19 silver coinage issued by the State of Illinois, the
20 government of the United States of America, or the government
21 of any foreign country, and bullion.
22 (5) Graphic arts machinery and equipment, including
23 repair and replacement parts, both new and used, and
24 including that manufactured on special order or purchased for
25 lease, certified by the purchaser to be used primarily for
26 graphic arts production.
27 (6) Personal property sold by a teacher-sponsored
28 student organization affiliated with an elementary or
29 secondary school located in Illinois.
30 (7) Farm machinery and equipment, both new and used,
31 including that manufactured on special order, certified by
32 the purchaser to be used primarily for production agriculture
33 or State or federal agricultural programs, including
34 individual replacement parts for the machinery and equipment,
-15- LRB9100501PTpk
1 including machinery and equipment purchased for lease, and
2 including implements of husbandry defined in Section 1-130 of
3 the Illinois Vehicle Code, farm machinery and agricultural
4 chemical and fertilizer spreaders, and nurse wagons required
5 to be registered under Section 3-809 of the Illinois Vehicle
6 Code, but excluding other motor vehicles required to be
7 registered under the Illinois Vehicle Code. Horticultural
8 polyhouses or hoop houses used for propagating, growing, or
9 overwintering plants shall be considered farm machinery and
10 equipment under this item (7). Agricultural chemical tender
11 tanks and dry boxes shall include units sold separately from
12 a motor vehicle required to be licensed and units sold
13 mounted on a motor vehicle required to be licensed if the
14 selling price of the tender is separately stated.
15 Farm machinery and equipment shall include precision
16 farming equipment that is installed or purchased to be
17 installed on farm machinery and equipment including, but not
18 limited to, tractors, harvesters, sprayers, planters,
19 seeders, or spreaders. Precision farming equipment includes,
20 but is not limited to, soil testing sensors, computers,
21 monitors, software, global positioning and mapping systems,
22 and other such equipment.
23 Farm machinery and equipment also includes computers,
24 sensors, software, and related equipment used primarily in
25 the computer-assisted operation of production agriculture
26 facilities, equipment, and activities such as, but not
27 limited to, the collection, monitoring, and correlation of
28 animal and crop data for the purpose of formulating animal
29 diets and agricultural chemicals. This item (7) is exempt
30 from the provisions of Section 3-75.
31 (8) Fuel and petroleum products sold to or used by an
32 air common carrier, certified by the carrier to be used for
33 consumption, shipment, or storage in the conduct of its
34 business as an air common carrier, for a flight destined for
-16- LRB9100501PTpk
1 or returning from a location or locations outside the United
2 States without regard to previous or subsequent domestic
3 stopovers.
4 (9) Proceeds of mandatory service charges separately
5 stated on customers' bills for the purchase and consumption
6 of food and beverages, to the extent that the proceeds of the
7 service charge are in fact turned over as tips or as a
8 substitute for tips to the employees who participate directly
9 in preparing, serving, hosting or cleaning up the food or
10 beverage function with respect to which the service charge is
11 imposed.
12 (10) Oil field exploration, drilling, and production
13 equipment, including (i) rigs and parts of rigs, rotary rigs,
14 cable tool rigs, and workover rigs, (ii) pipe and tubular
15 goods, including casing and drill strings, (iii) pumps and
16 pump-jack units, (iv) storage tanks and flow lines, (v) any
17 individual replacement part for oil field exploration,
18 drilling, and production equipment, and (vi) machinery and
19 equipment purchased for lease; but excluding motor vehicles
20 required to be registered under the Illinois Vehicle Code.
21 (11) Photoprocessing machinery and equipment, including
22 repair and replacement parts, both new and used, including
23 that manufactured on special order, certified by the
24 purchaser to be used primarily for photoprocessing, and
25 including photoprocessing machinery and equipment purchased
26 for lease.
27 (12) Coal exploration, mining, offhighway hauling,
28 processing, maintenance, and reclamation equipment, including
29 replacement parts and equipment, and including equipment
30 purchased for lease, but excluding motor vehicles required to
31 be registered under the Illinois Vehicle Code.
32 (13) Food for human consumption that is to be consumed
33 off the premises where it is sold (other than alcoholic
34 beverages, soft drinks and food that has been prepared for
-17- LRB9100501PTpk
1 immediate consumption) and prescription and non-prescription
2 medicines, drugs, medical appliances, and insulin, urine
3 testing materials, syringes, and needles used by diabetics,
4 for human use, when purchased for use by a person receiving
5 medical assistance under Article 5 of the Illinois Public Aid
6 Code who resides in a licensed long-term care facility, as
7 defined in the Nursing Home Care Act.
8 (14) Semen used for artificial insemination of livestock
9 for direct agricultural production.
10 (15) Horses, or interests in horses, registered with and
11 meeting the requirements of any of the Arabian Horse Club
12 Registry of America, Appaloosa Horse Club, American Quarter
13 Horse Association, United States Trotting Association, or
14 Jockey Club, as appropriate, used for purposes of breeding or
15 racing for prizes.
16 (16) Computers and communications equipment utilized for
17 any hospital purpose and equipment used in the diagnosis,
18 analysis, or treatment of hospital patients sold to a lessor
19 who leases the equipment, under a lease of one year or longer
20 executed or in effect at the time of the purchase, to a
21 hospital that has been issued an active tax exemption
22 identification number by the Department under Section 1g of
23 the Retailers' Occupation Tax Act.
24 (17) Personal property sold to a lessor who leases the
25 property, under a lease of one year or longer executed or in
26 effect at the time of the purchase, to a governmental body
27 that has been issued an active tax exemption identification
28 number by the Department under Section 1g of the Retailers'
29 Occupation Tax Act.
30 (18) Beginning with taxable years ending on or after
31 December 31, 1995 and ending with taxable years ending on or
32 before December 31, 2004, personal property that is donated
33 for disaster relief to be used in a State or federally
34 declared disaster area in Illinois or bordering Illinois by a
-18- LRB9100501PTpk
1 manufacturer or retailer that is registered in this State to
2 a corporation, society, association, foundation, or
3 institution that has been issued a sales tax exemption
4 identification number by the Department that assists victims
5 of the disaster who reside within the declared disaster area.
6 (19) Beginning with taxable years ending on or after
7 December 31, 1995 and ending with taxable years ending on or
8 before December 31, 2004, personal property that is used in
9 the performance of infrastructure repairs in this State,
10 including but not limited to municipal roads and streets,
11 access roads, bridges, sidewalks, waste disposal systems,
12 water and sewer line extensions, water distribution and
13 purification facilities, storm water drainage and retention
14 facilities, and sewage treatment facilities, resulting from a
15 State or federally declared disaster in Illinois or bordering
16 Illinois when such repairs are initiated on facilities
17 located in the declared disaster area within 6 months after
18 the disaster.
19 (20) Beginning on January 1, 2000 and ending on December
20 31, 2004, any reinforced steel gun safe used to store
21 firearms or ammunition.
22 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
23 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
24 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
25 eff. 12-12-97; 90-605, eff. 6-30-98.)
26 Section 20. The Retailers' Occupation Tax Act is amended
27 by changing Section 2-5 as follows:
28 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
29 Sec. 2-5. Exemptions. Gross receipts from proceeds from
30 the sale of the following tangible personal property are
31 exempt from the tax imposed by this Act:
32 (1) Farm chemicals.
-19- LRB9100501PTpk
1 (2) Farm machinery and equipment, both new and used,
2 including that manufactured on special order, certified by
3 the purchaser to be used primarily for production agriculture
4 or State or federal agricultural programs, including
5 individual replacement parts for the machinery and equipment,
6 including machinery and equipment purchased for lease, and
7 including implements of husbandry defined in Section 1-130 of
8 the Illinois Vehicle Code, farm machinery and agricultural
9 chemical and fertilizer spreaders, and nurse wagons required
10 to be registered under Section 3-809 of the Illinois Vehicle
11 Code, but excluding other motor vehicles required to be
12 registered under the Illinois Vehicle Code. Horticultural
13 polyhouses or hoop houses used for propagating, growing, or
14 overwintering plants shall be considered farm machinery and
15 equipment under this item (2). Agricultural chemical tender
16 tanks and dry boxes shall include units sold separately from
17 a motor vehicle required to be licensed and units sold
18 mounted on a motor vehicle required to be licensed, if the
19 selling price of the tender is separately stated.
20 Farm machinery and equipment shall include precision
21 farming equipment that is installed or purchased to be
22 installed on farm machinery and equipment including, but not
23 limited to, tractors, harvesters, sprayers, planters,
24 seeders, or spreaders. Precision farming equipment includes,
25 but is not limited to, soil testing sensors, computers,
26 monitors, software, global positioning and mapping systems,
27 and other such equipment.
28 Farm machinery and equipment also includes computers,
29 sensors, software, and related equipment used primarily in
30 the computer-assisted operation of production agriculture
31 facilities, equipment, and activities such as, but not
32 limited to, the collection, monitoring, and correlation of
33 animal and crop data for the purpose of formulating animal
34 diets and agricultural chemicals. This item (7) is exempt
-20- LRB9100501PTpk
1 from the provisions of Section 3-75.
2 (3) Distillation machinery and equipment, sold as a unit
3 or kit, assembled or installed by the retailer, certified by
4 the user to be used only for the production of ethyl alcohol
5 that will be used for consumption as motor fuel or as a
6 component of motor fuel for the personal use of the user, and
7 not subject to sale or resale.
8 (4) Graphic arts machinery and equipment, including
9 repair and replacement parts, both new and used, and
10 including that manufactured on special order or purchased for
11 lease, certified by the purchaser to be used primarily for
12 graphic arts production.
13 (5) A motor vehicle of the first division, a motor
14 vehicle of the second division that is a self-contained motor
15 vehicle designed or permanently converted to provide living
16 quarters for recreational, camping, or travel use, with
17 direct walk through access to the living quarters from the
18 driver's seat, or a motor vehicle of the second division that
19 is of the van configuration designed for the transportation
20 of not less than 7 nor more than 16 passengers, as defined in
21 Section 1-146 of the Illinois Vehicle Code, that is used for
22 automobile renting, as defined in the Automobile Renting
23 Occupation and Use Tax Act.
24 (6) Personal property sold by a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (7) Proceeds of that portion of the selling price of a
28 passenger car the sale of which is subject to the Replacement
29 Vehicle Tax.
30 (8) Personal property sold to an Illinois county fair
31 association for use in conducting, operating, or promoting
32 the county fair.
33 (9) Personal property sold to a not-for-profit music or
34 dramatic arts organization that establishes, by proof
-21- LRB9100501PTpk
1 required by the Department by rule, that it has received an
2 exemption under Section 501(c) (3) of the Internal Revenue
3 Code and that is organized and operated for the presentation
4 of live public performances of musical or theatrical works on
5 a regular basis.
6 (10) Personal property sold by a corporation, society,
7 association, foundation, institution, or organization, other
8 than a limited liability company, that is organized and
9 operated as a not-for-profit service enterprise for the
10 benefit of persons 65 years of age or older if the personal
11 property was not purchased by the enterprise for the purpose
12 of resale by the enterprise.
13 (11) Personal property sold to a governmental body, to a
14 corporation, society, association, foundation, or institution
15 organized and operated exclusively for charitable, religious,
16 or educational purposes, or to a not-for-profit corporation,
17 society, association, foundation, institution, or
18 organization that has no compensated officers or employees
19 and that is organized and operated primarily for the
20 recreation of persons 55 years of age or older. A limited
21 liability company may qualify for the exemption under this
22 paragraph only if the limited liability company is organized
23 and operated exclusively for educational purposes. On and
24 after July 1, 1987, however, no entity otherwise eligible for
25 this exemption shall make tax-free purchases unless it has an
26 active identification number issued by the Department.
27 (12) Personal property sold to interstate carriers for
28 hire for use as rolling stock moving in interstate commerce
29 or to lessors under leases of one year or longer executed or
30 in effect at the time of purchase by interstate carriers for
31 hire for use as rolling stock moving in interstate commerce
32 and equipment operated by a telecommunications provider,
33 licensed as a common carrier by the Federal Communications
34 Commission, which is permanently installed in or affixed to
-22- LRB9100501PTpk
1 aircraft moving in interstate commerce.
2 (13) Proceeds from sales to owners, lessors, or shippers
3 of tangible personal property that is utilized by interstate
4 carriers for hire for use as rolling stock moving in
5 interstate commerce and equipment operated by a
6 telecommunications provider, licensed as a common carrier by
7 the Federal Communications Commission, which is permanently
8 installed in or affixed to aircraft moving in interstate
9 commerce.
10 (14) Machinery and equipment that will be used by the
11 purchaser, or a lessee of the purchaser, primarily in the
12 process of manufacturing or assembling tangible personal
13 property for wholesale or retail sale or lease, whether the
14 sale or lease is made directly by the manufacturer or by some
15 other person, whether the materials used in the process are
16 owned by the manufacturer or some other person, or whether
17 the sale or lease is made apart from or as an incident to the
18 seller's engaging in the service occupation of producing
19 machines, tools, dies, jigs, patterns, gauges, or other
20 similar items of no commercial value on special order for a
21 particular purchaser.
22 (15) Proceeds of mandatory service charges separately
23 stated on customers' bills for purchase and consumption of
24 food and beverages, to the extent that the proceeds of the
25 service charge are in fact turned over as tips or as a
26 substitute for tips to the employees who participate directly
27 in preparing, serving, hosting or cleaning up the food or
28 beverage function with respect to which the service charge is
29 imposed.
30 (16) Petroleum products sold to a purchaser if the
31 seller is prohibited by federal law from charging tax to the
32 purchaser.
33 (17) Tangible personal property sold to a common carrier
34 by rail or motor that receives the physical possession of the
-23- LRB9100501PTpk
1 property in Illinois and that transports the property, or
2 shares with another common carrier in the transportation of
3 the property, out of Illinois on a standard uniform bill of
4 lading showing the seller of the property as the shipper or
5 consignor of the property to a destination outside Illinois,
6 for use outside Illinois.
7 (18) Legal tender, currency, medallions, or gold or
8 silver coinage issued by the State of Illinois, the
9 government of the United States of America, or the government
10 of any foreign country, and bullion.
11 (19) Oil field exploration, drilling, and production
12 equipment, including (i) rigs and parts of rigs, rotary rigs,
13 cable tool rigs, and workover rigs, (ii) pipe and tubular
14 goods, including casing and drill strings, (iii) pumps and
15 pump-jack units, (iv) storage tanks and flow lines, (v) any
16 individual replacement part for oil field exploration,
17 drilling, and production equipment, and (vi) machinery and
18 equipment purchased for lease; but excluding motor vehicles
19 required to be registered under the Illinois Vehicle Code.
20 (20) Photoprocessing machinery and equipment, including
21 repair and replacement parts, both new and used, including
22 that manufactured on special order, certified by the
23 purchaser to be used primarily for photoprocessing, and
24 including photoprocessing machinery and equipment purchased
25 for lease.
26 (21) Coal exploration, mining, offhighway hauling,
27 processing, maintenance, and reclamation equipment, including
28 replacement parts and equipment, and including equipment
29 purchased for lease, but excluding motor vehicles required to
30 be registered under the Illinois Vehicle Code.
31 (22) Fuel and petroleum products sold to or used by an
32 air carrier, certified by the carrier to be used for
33 consumption, shipment, or storage in the conduct of its
34 business as an air common carrier, for a flight destined for
-24- LRB9100501PTpk
1 or returning from a location or locations outside the United
2 States without regard to previous or subsequent domestic
3 stopovers.
4 (23) A transaction in which the purchase order is
5 received by a florist who is located outside Illinois, but
6 who has a florist located in Illinois deliver the property to
7 the purchaser or the purchaser's donee in Illinois.
8 (24) Fuel consumed or used in the operation of ships,
9 barges, or vessels that are used primarily in or for the
10 transportation of property or the conveyance of persons for
11 hire on rivers bordering on this State if the fuel is
12 delivered by the seller to the purchaser's barge, ship, or
13 vessel while it is afloat upon that bordering river.
14 (25) A motor vehicle sold in this State to a nonresident
15 even though the motor vehicle is delivered to the nonresident
16 in this State, if the motor vehicle is not to be titled in
17 this State, and if a driveaway decal permit is issued to the
18 motor vehicle as provided in Section 3-603 of the Illinois
19 Vehicle Code or if the nonresident purchaser has vehicle
20 registration plates to transfer to the motor vehicle upon
21 returning to his or her home state. The issuance of the
22 driveaway decal permit or having the out-of-state
23 registration plates to be transferred is prima facie evidence
24 that the motor vehicle will not be titled in this State.
25 (26) Semen used for artificial insemination of livestock
26 for direct agricultural production.
27 (27) Horses, or interests in horses, registered with and
28 meeting the requirements of any of the Arabian Horse Club
29 Registry of America, Appaloosa Horse Club, American Quarter
30 Horse Association, United States Trotting Association, or
31 Jockey Club, as appropriate, used for purposes of breeding or
32 racing for prizes.
33 (28) Computers and communications equipment utilized for
34 any hospital purpose and equipment used in the diagnosis,
-25- LRB9100501PTpk
1 analysis, or treatment of hospital patients sold to a lessor
2 who leases the equipment, under a lease of one year or longer
3 executed or in effect at the time of the purchase, to a
4 hospital that has been issued an active tax exemption
5 identification number by the Department under Section 1g of
6 this Act.
7 (29) Personal property sold to a lessor who leases the
8 property, under a lease of one year or longer executed or in
9 effect at the time of the purchase, to a governmental body
10 that has been issued an active tax exemption identification
11 number by the Department under Section 1g of this Act.
12 (30) 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 donated
15 for disaster relief to be used in a State or federally
16 declared disaster area in Illinois or bordering Illinois by a
17 manufacturer or retailer that is registered in this State to
18 a corporation, society, association, foundation, or
19 institution that has been issued a sales tax exemption
20 identification number by the Department that assists victims
21 of the disaster who reside within the declared disaster area.
22 (31) Beginning with taxable years ending on or after
23 December 31, 1995 and ending with taxable years ending on or
24 before December 31, 2004, personal property that is used in
25 the performance of infrastructure repairs in this State,
26 including but not limited to municipal roads and streets,
27 access roads, bridges, sidewalks, waste disposal systems,
28 water and sewer line extensions, water distribution and
29 purification facilities, storm water drainage and retention
30 facilities, and sewage treatment facilities, resulting from a
31 State or federally declared disaster in Illinois or bordering
32 Illinois when such repairs are initiated on facilities
33 located in the declared disaster area within 6 months after
34 the disaster.
-26- LRB9100501PTpk
1 (32) Beginning on January 1, 2000 and ending on December
2 31, 2004, any reinforced steel gun safe used to store
3 firearms or ammunition.
4 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
5 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
6 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
7 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
8 Section 99. Effective date. This Act takes effect on
9 January 1, 2000.