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91_HB0647
LRB9103240PTpk
1 AN ACT concerning oil field employment and environmental
2 enhancement.
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,
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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
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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- LRB9103240PTpk
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- LRB9103240PTpk
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
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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- LRB9103240PTpk
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- LRB9103240PTpk
1 the disaster.
2 (26) Beginning January 1, 2000, chemicals, cement, acid,
3 pipe coating, and drilling mud used in an oil or gas field.
4 This paragraph is exempt from the provisions of Section 3-90.
5
6 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
7 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
8 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
9 eff. 12-12-97; 90-605, eff. 6-30-98.)
10 Section 10. The Service Use Tax Act is amended by
11 changing Section 3-5 as follows:
12 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
13 Sec. 3-5. Exemptions. Use of the following tangible
14 personal property is exempt from the tax imposed by this Act:
15 (1) Personal property purchased from a corporation,
16 society, association, foundation, institution, or
17 organization, other than a limited liability company, that is
18 organized and operated as a not-for-profit service enterprise
19 for the benefit of persons 65 years of age or older if the
20 personal property was not purchased by the enterprise for the
21 purpose of resale by the enterprise.
22 (2) Personal property purchased by a non-profit Illinois
23 county fair association for use in conducting, operating, or
24 promoting the county fair.
25 (3) Personal property purchased by a not-for-profit
26 music or dramatic arts organization that establishes, by
27 proof required by the Department by rule, that it has
28 received an exemption under Section 501(c)(3) of the Internal
29 Revenue Code and that is organized and operated for the
30 presentation of live public performances of musical or
31 theatrical works on a regular basis.
32 (4) Legal tender, currency, medallions, or gold or
-9- LRB9103240PTpk
1 silver coinage issued by the State of Illinois, the
2 government of the United States of America, or the government
3 of any foreign country, and bullion.
4 (5) Graphic arts machinery and equipment, including
5 repair and replacement parts, both new and used, and
6 including that manufactured on special order or purchased for
7 lease, certified by the purchaser to be used primarily for
8 graphic arts production.
9 (6) Personal property purchased from a teacher-sponsored
10 student organization affiliated with an elementary or
11 secondary school located in Illinois.
12 (7) Farm machinery and equipment, both new and used,
13 including that manufactured on special order, certified by
14 the purchaser to be used primarily for production agriculture
15 or State or federal agricultural programs, including
16 individual replacement parts for the machinery and equipment,
17 including machinery and equipment purchased for lease, and
18 including implements of husbandry defined in Section 1-130 of
19 the Illinois Vehicle Code, farm machinery and agricultural
20 chemical and fertilizer spreaders, and nurse wagons required
21 to be registered under Section 3-809 of the Illinois Vehicle
22 Code, but excluding other motor vehicles required to be
23 registered under the Illinois Vehicle Code. Horticultural
24 polyhouses or hoop houses used for propagating, growing, or
25 overwintering plants shall be considered farm machinery and
26 equipment under this item (7). Agricultural chemical tender
27 tanks and dry boxes shall include units sold separately from
28 a motor vehicle required to be licensed and units sold
29 mounted on a motor vehicle required to be licensed if the
30 selling price of the tender is separately stated.
31 Farm machinery and equipment shall include precision
32 farming equipment that is installed or purchased to be
33 installed on farm machinery and equipment including, but not
34 limited to, tractors, harvesters, sprayers, planters,
-10- LRB9103240PTpk
1 seeders, or spreaders. Precision farming equipment includes,
2 but is not limited to, soil testing sensors, computers,
3 monitors, software, global positioning and mapping systems,
4 and other such equipment.
5 Farm machinery and equipment also includes computers,
6 sensors, software, and related equipment used primarily in
7 the computer-assisted operation of production agriculture
8 facilities, equipment, and activities such as, but not
9 limited to, the collection, monitoring, and correlation of
10 animal and crop data for the purpose of formulating animal
11 diets and agricultural chemicals. This item (7) is exempt
12 from the provisions of Section 3-75.
13 (8) Fuel and petroleum products sold to or used by an
14 air common carrier, certified by the carrier to be used for
15 consumption, shipment, or storage in the conduct of its
16 business as an air common carrier, for a flight destined for
17 or returning from a location or locations outside the United
18 States without regard to previous or subsequent domestic
19 stopovers.
20 (9) Proceeds of mandatory service charges separately
21 stated on customers' bills for the purchase and consumption
22 of food and beverages acquired as an incident to the purchase
23 of a service from a serviceman, to the extent that the
24 proceeds of the service charge are in fact turned over as
25 tips or as a substitute for tips to the employees who
26 participate directly in preparing, serving, hosting or
27 cleaning up the food or beverage function with respect to
28 which the service charge is imposed.
29 (10) Oil field exploration, drilling, and production
30 equipment, including (i) rigs and parts of rigs, rotary rigs,
31 cable tool rigs, and workover rigs, (ii) pipe and tubular
32 goods, including casing and drill strings, (iii) pumps and
33 pump-jack units, (iv) storage tanks and flow lines, (v) any
34 individual replacement part for oil field exploration,
-11- LRB9103240PTpk
1 drilling, and production equipment, and (vi) machinery and
2 equipment purchased for lease; but excluding motor vehicles
3 required to be registered under the Illinois Vehicle Code.
4 (11) Proceeds from the sale of photoprocessing machinery
5 and equipment, including repair and replacement parts, both
6 new and used, including that manufactured on special order,
7 certified by the purchaser to be used primarily for
8 photoprocessing, and including photoprocessing machinery and
9 equipment purchased for lease.
10 (12) Coal exploration, mining, offhighway hauling,
11 processing, maintenance, and reclamation equipment, including
12 replacement parts and equipment, and including equipment
13 purchased for lease, but excluding motor vehicles required to
14 be registered under the Illinois Vehicle Code.
15 (13) Semen used for artificial insemination of livestock
16 for direct agricultural production.
17 (14) Horses, or interests in horses, registered with and
18 meeting the requirements of any of the Arabian Horse Club
19 Registry of America, Appaloosa Horse Club, American Quarter
20 Horse Association, United States Trotting Association, or
21 Jockey Club, as appropriate, used for purposes of breeding or
22 racing for prizes.
23 (15) Computers and communications equipment utilized for
24 any hospital purpose and equipment used in the diagnosis,
25 analysis, or treatment of hospital patients purchased by a
26 lessor who leases the equipment, under a lease of one year or
27 longer executed or in effect at the time the lessor would
28 otherwise be subject to the tax imposed by this Act, to a
29 hospital that has been issued an active tax exemption
30 identification number by the Department under Section 1g of
31 the Retailers' Occupation Tax Act. If the equipment is leased
32 in a manner that does not qualify for this exemption or is
33 used in any other non-exempt manner, the lessor shall be
34 liable for the tax imposed under this Act or the Use Tax Act,
-12- LRB9103240PTpk
1 as the case may be, based on the fair market value of the
2 property at the time the non-qualifying use occurs. No
3 lessor shall collect or attempt to collect an amount (however
4 designated) that purports to reimburse that lessor for the
5 tax imposed by this Act or the Use Tax Act, as the case may
6 be, if the tax has not been paid by the lessor. If a lessor
7 improperly collects any such amount from the lessee, the
8 lessee shall have a legal right to claim a refund of that
9 amount from the lessor. If, however, that amount is not
10 refunded to the lessee for any reason, the lessor is liable
11 to pay that amount to the Department.
12 (16) Personal property purchased by a lessor who leases
13 the property, under a lease of one year or longer executed or
14 in effect at the time the lessor would otherwise be subject
15 to the tax imposed by this Act, to a governmental body that
16 has been issued an active tax exemption identification number
17 by the Department under Section 1g of the Retailers'
18 Occupation Tax Act. If the property is leased in a manner
19 that does not qualify for this exemption or is used in any
20 other non-exempt manner, the lessor shall be liable for the
21 tax imposed under this Act or the Use Tax Act, as the case
22 may be, based on the fair market value of the property at the
23 time the non-qualifying use occurs. No lessor shall collect
24 or attempt to collect an amount (however designated) that
25 purports to reimburse that lessor for the tax imposed by this
26 Act or the Use Tax Act, as the case may be, if the tax has
27 not been paid by the lessor. If a lessor improperly collects
28 any such amount from the lessee, the lessee shall have a
29 legal right to claim a refund of that amount from the lessor.
30 If, however, that amount is not refunded to the lessee for
31 any reason, the lessor is liable to pay that amount to the
32 Department.
33 (17) Beginning with taxable years ending on or after
34 December 31, 1995 and ending with taxable years ending on or
-13- LRB9103240PTpk
1 before December 31, 2004, personal property that is donated
2 for disaster relief to be used in a State or federally
3 declared disaster area in Illinois or bordering Illinois by a
4 manufacturer or retailer that is registered in this State to
5 a corporation, society, association, foundation, or
6 institution that has been issued a sales tax exemption
7 identification number by the Department that assists victims
8 of the disaster who reside within the declared disaster area.
9 (18) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is used in
12 the performance of infrastructure repairs in this State,
13 including but not limited to municipal roads and streets,
14 access roads, bridges, sidewalks, waste disposal systems,
15 water and sewer line extensions, water distribution and
16 purification facilities, storm water drainage and retention
17 facilities, and sewage treatment facilities, resulting from a
18 State or federally declared disaster in Illinois or bordering
19 Illinois when such repairs are initiated on facilities
20 located in the declared disaster area within 6 months after
21 the disaster.
22 (19) Beginning January 1, 2000, chemicals, cement, acid,
23 pipe coating, and drilling mud used in an oil or gas field.
24 This paragraph is exempt from the provisions of Section 3-75.
25
26 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
27 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
28 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
29 eff. 12-12-97; 90-605, eff. 6-30-98.)
30 Section 15. The Service Occupation Tax Act is amended by
31 changing Section 3-5 as follows:
32 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
-14- LRB9103240PTpk
1 Sec. 3-5. Exemptions. The following tangible personal
2 property is exempt from the tax imposed by this Act:
3 (1) Personal property sold by a corporation, society,
4 association, foundation, institution, or organization, other
5 than a limited liability company, that is organized and
6 operated as a not-for-profit service enterprise for the
7 benefit of persons 65 years of age or older if the personal
8 property was not purchased by the enterprise for the purpose
9 of resale by the enterprise.
10 (2) Personal property purchased by a not-for-profit
11 Illinois county fair association for use in conducting,
12 operating, or promoting the county fair.
13 (3) Personal property purchased by any not-for-profit
14 music or dramatic arts organization that establishes, by
15 proof required by the Department by rule, that it has
16 received an exemption under Section 501(c)(3) of the
17 Internal Revenue Code and that is organized and operated for
18 the presentation of live public performances of musical or
19 theatrical works on a regular basis.
20 (4) Legal tender, currency, medallions, or gold or
21 silver coinage issued by the State of Illinois, the
22 government of the United States of America, or the government
23 of any foreign country, and bullion.
24 (5) Graphic arts machinery and equipment, including
25 repair and replacement parts, both new and used, and
26 including that manufactured on special order or purchased for
27 lease, certified by the purchaser to be used primarily for
28 graphic arts production.
29 (6) Personal property sold by a teacher-sponsored
30 student organization affiliated with an elementary or
31 secondary school located in Illinois.
32 (7) Farm machinery and equipment, both new and used,
33 including that manufactured on special order, certified by
34 the purchaser to be used primarily for production agriculture
-15- LRB9103240PTpk
1 or State or federal agricultural programs, including
2 individual replacement parts for the machinery and equipment,
3 including machinery and equipment purchased for lease, and
4 including implements of husbandry defined in Section 1-130 of
5 the Illinois Vehicle Code, farm machinery and agricultural
6 chemical and fertilizer spreaders, and nurse wagons required
7 to be registered under Section 3-809 of the Illinois Vehicle
8 Code, but excluding other motor vehicles required to be
9 registered under the Illinois Vehicle Code. Horticultural
10 polyhouses or hoop houses used for propagating, growing, or
11 overwintering plants shall be considered farm machinery and
12 equipment under this item (7). Agricultural chemical tender
13 tanks and dry boxes shall include units sold separately from
14 a motor vehicle required to be licensed and units sold
15 mounted on a motor vehicle required to be licensed if the
16 selling price of the tender is separately stated.
17 Farm machinery and equipment shall include precision
18 farming equipment that is installed or purchased to be
19 installed on farm machinery and equipment including, but not
20 limited to, tractors, harvesters, sprayers, planters,
21 seeders, or spreaders. Precision farming equipment includes,
22 but is not limited to, soil testing sensors, computers,
23 monitors, software, global positioning and mapping systems,
24 and other such equipment.
25 Farm machinery and equipment also includes computers,
26 sensors, software, and related equipment used primarily in
27 the computer-assisted operation of production agriculture
28 facilities, equipment, and activities such as, but not
29 limited to, the collection, monitoring, and correlation of
30 animal and crop data for the purpose of formulating animal
31 diets and agricultural chemicals. This item (7) is exempt
32 from the provisions of Section 3-75.
33 (8) Fuel and petroleum products sold to or used by an
34 air common carrier, certified by the carrier to be used for
-16- LRB9103240PTpk
1 consumption, shipment, or storage in the conduct of its
2 business as an air common carrier, for a flight destined for
3 or returning from a location or locations outside the United
4 States without regard to previous or subsequent domestic
5 stopovers.
6 (9) Proceeds of mandatory service charges separately
7 stated on customers' bills for the purchase and consumption
8 of food and beverages, to the extent that the proceeds of the
9 service charge are in fact turned over as tips or as a
10 substitute for tips to the employees who participate directly
11 in preparing, serving, hosting or cleaning up the food or
12 beverage function with respect to which the service charge is
13 imposed.
14 (10) Oil field exploration, drilling, and production
15 equipment, including (i) rigs and parts of rigs, rotary rigs,
16 cable tool rigs, and workover rigs, (ii) pipe and tubular
17 goods, including casing and drill strings, (iii) pumps and
18 pump-jack units, (iv) storage tanks and flow lines, (v) any
19 individual replacement part for oil field exploration,
20 drilling, and production equipment, and (vi) machinery and
21 equipment purchased for lease; but excluding motor vehicles
22 required to be registered under the Illinois Vehicle Code.
23 (11) Photoprocessing machinery and equipment, including
24 repair and replacement parts, both new and used, including
25 that manufactured on special order, certified by the
26 purchaser to be used primarily for photoprocessing, and
27 including photoprocessing machinery and equipment purchased
28 for lease.
29 (12) Coal exploration, mining, offhighway hauling,
30 processing, maintenance, and reclamation equipment, including
31 replacement parts and equipment, and including equipment
32 purchased for lease, but excluding motor vehicles required to
33 be registered under the Illinois Vehicle Code.
34 (13) Food for human consumption that is to be consumed
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1 off the premises where it is sold (other than alcoholic
2 beverages, soft drinks and food that has been prepared for
3 immediate consumption) and prescription and non-prescription
4 medicines, drugs, medical appliances, and insulin, urine
5 testing materials, syringes, and needles used by diabetics,
6 for human use, when purchased for use by a person receiving
7 medical assistance under Article 5 of the Illinois Public Aid
8 Code who resides in a licensed long-term care facility, as
9 defined in the Nursing Home Care Act.
10 (14) Semen used for artificial insemination of livestock
11 for direct agricultural production.
12 (15) Horses, or interests in horses, registered with and
13 meeting the requirements of any of the Arabian Horse Club
14 Registry of America, Appaloosa Horse Club, American Quarter
15 Horse Association, United States Trotting Association, or
16 Jockey Club, as appropriate, used for purposes of breeding or
17 racing for prizes.
18 (16) Computers and communications equipment utilized for
19 any hospital purpose and equipment used in the diagnosis,
20 analysis, or treatment of hospital patients sold to a lessor
21 who leases the equipment, under a lease of one year or longer
22 executed or in effect at the time of the purchase, to a
23 hospital that has been issued an active tax exemption
24 identification number by the Department under Section 1g of
25 the Retailers' Occupation Tax Act.
26 (17) Personal property sold to a lessor who leases the
27 property, under a lease of one year or longer executed or in
28 effect at the time of the purchase, to a governmental body
29 that has been issued an active tax exemption identification
30 number by the Department under Section 1g of the Retailers'
31 Occupation Tax Act.
32 (18) 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
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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 (19) 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 (20) Beginning January 1, 2000, chemicals, cement, acid,
22 pipe coating, and drilling mud used in an oil or gas field.
23 This paragraph is exempt from the provisions of Section 3-55.
24
25 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
26 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
27 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
28 eff. 12-12-97; 90-605, eff. 6-30-98.)
29 Section 20. The Retailers' Occupation Tax Act is amended
30 by changing Section 20 as follows:
31 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
32 Sec. 2-5. Exemptions. Gross receipts from proceeds from
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1 the sale of the following tangible personal property are
2 exempt from the tax imposed by this Act:
3 (1) Farm chemicals.
4 (2) Farm machinery and equipment, both new and used,
5 including that manufactured on special order, certified by
6 the purchaser to be used primarily for production agriculture
7 or State or federal agricultural programs, including
8 individual replacement parts for the machinery and equipment,
9 including machinery and equipment purchased for lease, and
10 including implements of husbandry defined in Section 1-130 of
11 the Illinois Vehicle Code, farm machinery and agricultural
12 chemical and fertilizer spreaders, and nurse wagons required
13 to be registered under Section 3-809 of the Illinois Vehicle
14 Code, but excluding other motor vehicles required to be
15 registered under the Illinois Vehicle Code. Horticultural
16 polyhouses or hoop houses used for propagating, growing, or
17 overwintering plants shall be considered farm machinery and
18 equipment under this item (2). Agricultural chemical tender
19 tanks and dry boxes shall include units sold separately from
20 a motor vehicle required to be licensed and units sold
21 mounted on a motor vehicle required to be licensed, if the
22 selling price of the tender is separately stated.
23 Farm machinery and equipment shall include precision
24 farming equipment that is installed or purchased to be
25 installed on farm machinery and equipment including, but not
26 limited to, tractors, harvesters, sprayers, planters,
27 seeders, or spreaders. Precision farming equipment includes,
28 but is not limited to, soil testing sensors, computers,
29 monitors, software, global positioning and mapping systems,
30 and other such equipment.
31 Farm machinery and equipment also includes computers,
32 sensors, software, and related equipment used primarily in
33 the computer-assisted operation of production agriculture
34 facilities, equipment, and activities such as, but not
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1 limited to, the collection, monitoring, and correlation of
2 animal and crop data for the purpose of formulating animal
3 diets and agricultural chemicals. This item (7) is exempt
4 from the provisions of Section 3-75.
5 (3) Distillation machinery and equipment, sold as a unit
6 or kit, assembled or installed by the retailer, certified by
7 the user to be used only for the production of ethyl alcohol
8 that will be used for consumption as motor fuel or as a
9 component of motor fuel for the personal use of the user, and
10 not subject to sale or resale.
11 (4) Graphic arts machinery and equipment, including
12 repair and replacement parts, both new and used, and
13 including that manufactured on special order or purchased for
14 lease, certified by the purchaser to be used primarily for
15 graphic arts production.
16 (5) A motor vehicle of the first division, a motor
17 vehicle of the second division that is a self-contained motor
18 vehicle designed or permanently converted to provide living
19 quarters for recreational, camping, or travel use, with
20 direct walk through access to the living quarters from the
21 driver's seat, or a motor vehicle of the second division that
22 is of the van configuration designed for the transportation
23 of not less than 7 nor more than 16 passengers, as defined in
24 Section 1-146 of the Illinois Vehicle Code, that is used for
25 automobile renting, as defined in the Automobile Renting
26 Occupation and Use Tax Act.
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) Proceeds of that portion of the selling price of a
31 passenger car the sale of which is subject to the Replacement
32 Vehicle Tax.
33 (8) Personal property sold to an Illinois county fair
34 association for use in conducting, operating, or promoting
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1 the county fair.
2 (9) Personal property sold to a not-for-profit music or
3 dramatic arts organization that establishes, by proof
4 required by the Department by rule, that it has received an
5 exemption under Section 501(c) (3) of the Internal Revenue
6 Code and that is organized and operated for the presentation
7 of live public performances of musical or theatrical works on
8 a regular basis.
9 (10) Personal property sold by a corporation, society,
10 association, foundation, institution, or organization, other
11 than a limited liability company, that is organized and
12 operated as a not-for-profit service enterprise for the
13 benefit of persons 65 years of age or older if the personal
14 property was not purchased by the enterprise for the purpose
15 of resale by the enterprise.
16 (11) Personal property sold to a governmental body, to a
17 corporation, society, association, foundation, or institution
18 organized and operated exclusively for charitable, religious,
19 or educational purposes, or to a not-for-profit corporation,
20 society, association, foundation, institution, or
21 organization that has no compensated officers or employees
22 and that is organized and operated primarily for the
23 recreation of persons 55 years of age or older. A limited
24 liability company may qualify for the exemption under this
25 paragraph only if the limited liability company is organized
26 and operated exclusively for educational purposes. On and
27 after July 1, 1987, however, no entity otherwise eligible for
28 this exemption shall make tax-free purchases unless it has an
29 active identification number issued by the Department.
30 (12) Personal property sold to interstate carriers for
31 hire for use as rolling stock moving in interstate commerce
32 or to lessors under leases of one year or longer executed or
33 in effect at the time of purchase by interstate carriers for
34 hire for use as rolling stock moving in interstate commerce
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1 and equipment operated by a telecommunications provider,
2 licensed as a common carrier by the Federal Communications
3 Commission, which is permanently installed in or affixed to
4 aircraft moving in interstate commerce.
5 (13) Proceeds from sales to owners, lessors, or shippers
6 of tangible personal property that is utilized by interstate
7 carriers for hire for use as rolling stock moving in
8 interstate commerce and equipment operated by a
9 telecommunications provider, licensed as a common carrier by
10 the Federal Communications Commission, which is permanently
11 installed in or affixed to aircraft moving in interstate
12 commerce.
13 (14) Machinery and equipment that will be used by the
14 purchaser, or a lessee of the purchaser, primarily in the
15 process of manufacturing or assembling tangible personal
16 property for wholesale or retail sale or lease, whether the
17 sale or lease is made directly by the manufacturer or by some
18 other person, whether the materials used in the process are
19 owned by the manufacturer or some other person, or whether
20 the sale or lease is made apart from or as an incident to the
21 seller's engaging in the service occupation of producing
22 machines, tools, dies, jigs, patterns, gauges, or other
23 similar items of no commercial value on special order for a
24 particular purchaser.
25 (15) Proceeds of mandatory service charges separately
26 stated on customers' bills for purchase and consumption of
27 food and beverages, to the extent that the proceeds of the
28 service charge are in fact turned over as tips or as a
29 substitute for tips to the employees who participate directly
30 in preparing, serving, hosting or cleaning up the food or
31 beverage function with respect to which the service charge is
32 imposed.
33 (16) Petroleum products sold to a purchaser if the
34 seller is prohibited by federal law from charging tax to the
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1 purchaser.
2 (17) Tangible personal property sold to a common carrier
3 by rail or motor that receives the physical possession of the
4 property in Illinois and that transports the property, or
5 shares with another common carrier in the transportation of
6 the property, out of Illinois on a standard uniform bill of
7 lading showing the seller of the property as the shipper or
8 consignor of the property to a destination outside Illinois,
9 for use outside Illinois.
10 (18) Legal tender, currency, medallions, or gold or
11 silver coinage issued by the State of Illinois, the
12 government of the United States of America, or the government
13 of any foreign country, and bullion.
14 (19) Oil field exploration, drilling, and production
15 equipment, including (i) rigs and parts of rigs, rotary rigs,
16 cable tool rigs, and workover rigs, (ii) pipe and tubular
17 goods, including casing and drill strings, (iii) pumps and
18 pump-jack units, (iv) storage tanks and flow lines, (v) any
19 individual replacement part for oil field exploration,
20 drilling, and production equipment, and (vi) machinery and
21 equipment purchased for lease; but excluding motor vehicles
22 required to be registered under the Illinois Vehicle Code.
23 (20) Photoprocessing machinery and equipment, including
24 repair and replacement parts, both new and used, including
25 that manufactured on special order, certified by the
26 purchaser to be used primarily for photoprocessing, and
27 including photoprocessing machinery and equipment purchased
28 for lease.
29 (21) Coal exploration, mining, offhighway hauling,
30 processing, maintenance, and reclamation equipment, including
31 replacement parts and equipment, and including equipment
32 purchased for lease, but excluding motor vehicles required to
33 be registered under the Illinois Vehicle Code.
34 (22) Fuel and petroleum products sold to or used by an
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1 air carrier, certified by the carrier to be used for
2 consumption, shipment, or storage in the conduct of its
3 business as an air common carrier, for a flight destined for
4 or returning from a location or locations outside the United
5 States without regard to previous or subsequent domestic
6 stopovers.
7 (23) A transaction in which the purchase order is
8 received by a florist who is located outside Illinois, but
9 who has a florist located in Illinois deliver the property to
10 the purchaser or the purchaser's donee in Illinois.
11 (24) Fuel consumed or used in the operation of ships,
12 barges, or vessels that are used primarily in or for the
13 transportation of property or the conveyance of persons for
14 hire on rivers bordering on this State if the fuel is
15 delivered by the seller to the purchaser's barge, ship, or
16 vessel while it is afloat upon that bordering river.
17 (25) A motor vehicle sold in this State to a nonresident
18 even though the motor vehicle is delivered to the nonresident
19 in this State, if the motor vehicle is not to be titled in
20 this State, and if a driveaway decal permit is issued to the
21 motor vehicle as provided in Section 3-603 of the Illinois
22 Vehicle Code or if the nonresident purchaser has vehicle
23 registration plates to transfer to the motor vehicle upon
24 returning to his or her home state. The issuance of the
25 driveaway decal permit or having the out-of-state
26 registration plates to be transferred is prima facie evidence
27 that the motor vehicle will not be titled in this State.
28 (26) Semen used for artificial insemination of livestock
29 for direct agricultural production.
30 (27) Horses, or interests in horses, registered with and
31 meeting the requirements of any of the Arabian Horse Club
32 Registry of America, Appaloosa Horse Club, American Quarter
33 Horse Association, United States Trotting Association, or
34 Jockey Club, as appropriate, used for purposes of breeding or
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1 racing for prizes.
2 (28) Computers and communications equipment utilized for
3 any hospital purpose and equipment used in the diagnosis,
4 analysis, or treatment of hospital patients sold to a lessor
5 who leases the equipment, under a lease of one year or longer
6 executed or in effect at the time of the purchase, to a
7 hospital that has been issued an active tax exemption
8 identification number by the Department under Section 1g of
9 this Act.
10 (29) Personal property sold to a lessor who leases the
11 property, under a lease of one year or longer executed or in
12 effect at the time of the purchase, to a governmental body
13 that has been issued an active tax exemption identification
14 number by the Department under Section 1g of this Act.
15 (30) Beginning with taxable years ending on or after
16 December 31, 1995 and ending with taxable years ending on or
17 before December 31, 2004, personal property that is donated
18 for disaster relief to be used in a State or federally
19 declared disaster area in Illinois or bordering Illinois by a
20 manufacturer or retailer that is registered in this State to
21 a corporation, society, association, foundation, or
22 institution that has been issued a sales tax exemption
23 identification number by the Department that assists victims
24 of the disaster who reside within the declared disaster area.
25 (31) Beginning with taxable years ending on or after
26 December 31, 1995 and ending with taxable years ending on or
27 before December 31, 2004, personal property that is used in
28 the performance of infrastructure repairs in this State,
29 including but not limited to municipal roads and streets,
30 access roads, bridges, sidewalks, waste disposal systems,
31 water and sewer line extensions, water distribution and
32 purification facilities, storm water drainage and retention
33 facilities, and sewage treatment facilities, resulting from a
34 State or federally declared disaster in Illinois or bordering
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1 Illinois when such repairs are initiated on facilities
2 located in the declared disaster area within 6 months after
3 the disaster.
4 (32) Beginning July 1, 1999, chemicals, cement, acid,
5 pipe coating, and drilling mud used in an oil or gas field.
6 This paragraph is exempt from the provisions of Section 2-70.
7
8 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
9 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
10 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
11 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
12 Section 90. The State Mandates Act is amended by adding
13 Section 8.23 as follows:
14 (30 ILCS 805/8.23 new)
15 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
16 and 8 of this Act, no reimbursement by the State is required
17 for the implementation of any mandate created by this
18 amendatory Act of the 91st General Assembly.
19 Section 99. Effective date. This Act takes effect
20 January 1, 2000.