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91_HB2749
LRB9100038PTpk
1 AN ACT concerning taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17 Illinois county fair association for use in conducting,
18 operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit
20 music or dramatic arts organization that establishes, by
21 proof required by the Department by rule, that it has
22 received an exemption under Section 501(c)(3) of the Internal
23 Revenue Code and that is organized and operated for the
24 presentation of live public performances of musical or
25 theatrical works on a regular basis.
26 (4) Personal property purchased by a governmental body,
27 by a corporation, society, association, foundation, or
28 institution organized and operated exclusively for
29 charitable, religious, or educational purposes, or by a
30 not-for-profit corporation, society, association, foundation,
31 institution, or organization that has no compensated officers
-2- LRB9100038PTpk
1 or employees and that is organized and operated primarily for
2 the recreation of persons 55 years of age or older. A limited
3 liability company may qualify for the exemption under this
4 paragraph only if the limited liability company is organized
5 and operated exclusively for educational purposes. On and
6 after July 1, 1987, however, no entity otherwise eligible for
7 this exemption shall make tax-free purchases unless it has an
8 active exemption identification number issued by the
9 Department.
10 (5) A passenger car that is a replacement vehicle to the
11 extent that the purchase price of the car is subject to the
12 Replacement Vehicle Tax.
13 (6) Graphic arts machinery and equipment, including
14 repair and replacement parts, both new and used, and
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for graphic arts
17 production, and including machinery and equipment purchased
18 for lease.
19 (7) Farm chemicals.
20 (8) 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 (9) Personal property purchased from a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (10) A motor vehicle of the first division, a motor
28 vehicle of the second division that is a self-contained motor
29 vehicle designed or permanently converted to provide living
30 quarters for recreational, camping, or travel use, with
31 direct walk through to the living quarters from the driver's
32 seat, or a motor vehicle of the second division that is of
33 the van configuration designed for the transportation of not
34 less than 7 nor more than 16 passengers, as defined in
-3- LRB9100038PTpk
1 Section 1-146 of the Illinois Vehicle Code, that is used for
2 automobile renting, as defined in the Automobile Renting
3 Occupation and Use Tax Act.
4 (11) 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 (11). 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
-4- LRB9100038PTpk
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 (11) is exempt
4 from the provisions of Section 3-90.
5 (12) Fuel and petroleum products sold to or used by an
6 air common carrier, certified by the carrier to be used for
7 consumption, shipment, or storage in the conduct of its
8 business as an air common carrier, for a flight destined for
9 or returning from a location or locations outside the United
10 States without regard to previous or subsequent domestic
11 stopovers.
12 (13) Proceeds of mandatory service charges separately
13 stated on customers' bills for the purchase and consumption
14 of food and beverages purchased at retail from a retailer, to
15 the extent that the proceeds of the service charge are in
16 fact turned over as tips or as a substitute for tips to the
17 employees who participate directly in preparing, serving,
18 hosting or cleaning up the food or beverage function with
19 respect to which the service charge is imposed.
20 (14) Oil field exploration, drilling, and production
21 equipment, including (i) rigs and parts of rigs, rotary rigs,
22 cable tool rigs, and workover rigs, (ii) pipe and tubular
23 goods, including casing and drill strings, (iii) pumps and
24 pump-jack units, (iv) storage tanks and flow lines, (v) any
25 individual replacement part for oil field exploration,
26 drilling, and production equipment, and (vi) machinery and
27 equipment purchased for lease; but excluding motor vehicles
28 required to be registered under the Illinois Vehicle Code.
29 (15) Photoprocessing machinery and equipment, including
30 repair and replacement parts, both new and used, including
31 that manufactured on special order, certified by the
32 purchaser to be used primarily for photoprocessing, and
33 including photoprocessing machinery and equipment purchased
34 for lease.
-5- LRB9100038PTpk
1 (16) Coal exploration, mining, offhighway hauling,
2 processing, maintenance, and reclamation equipment, including
3 replacement parts and equipment, and including equipment
4 purchased for lease, but excluding motor vehicles required to
5 be registered under the Illinois Vehicle Code.
6 (17) Distillation machinery and equipment, sold as a
7 unit or kit, assembled or installed by the retailer,
8 certified by the user to be used only for the production of
9 ethyl alcohol that will be used for consumption as motor fuel
10 or as a component of motor fuel for the personal use of the
11 user, and not subject to sale or resale.
12 (18) Manufacturing and assembling machinery and
13 equipment used primarily in the process of manufacturing or
14 assembling tangible personal property for wholesale or retail
15 sale or lease, whether that sale or lease is made directly by
16 the manufacturer or by some other person, whether the
17 materials used in the process are owned by the manufacturer
18 or some other person, or whether that sale or lease is made
19 apart from or as an incident to the seller's engaging in the
20 service occupation of producing machines, tools, dies, jigs,
21 patterns, gauges, or other similar items of no commercial
22 value on special order for a particular purchaser.
23 (19) Personal property delivered to a purchaser or
24 purchaser's donee inside Illinois when the purchase order for
25 that personal property was received by a florist located
26 outside Illinois who has a florist located inside Illinois
27 deliver the personal property.
28 (20) Semen used for artificial insemination of livestock
29 for direct agricultural production.
30 (21) 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
-6- LRB9100038PTpk
1 racing for prizes.
2 (22) Computers and communications equipment utilized for
3 any hospital purpose and equipment used in the diagnosis,
4 analysis, or treatment of hospital patients purchased by a
5 lessor who leases the equipment, under a lease of one year or
6 longer executed or in effect at the time the lessor would
7 otherwise be subject to the tax imposed by this Act, to a
8 hospital that has been issued an active tax exemption
9 identification number by the Department under Section 1g of
10 the Retailers' Occupation Tax Act. If the equipment is
11 leased in a manner that does not qualify for this exemption
12 or is used in any other non-exempt manner, the lessor shall
13 be liable for the tax imposed under this Act or the Service
14 Use Tax Act, as the case may be, based on the fair market
15 value of the property at the time the non-qualifying use
16 occurs. No lessor shall collect or attempt to collect an
17 amount (however designated) that purports to reimburse that
18 lessor for the tax imposed by this Act or the Service Use Tax
19 Act, as the case may be, if the tax has not been paid by the
20 lessor. If a lessor improperly collects any such amount from
21 the lessee, the lessee shall have a legal right to claim a
22 refund of that amount from the lessor. If, however, that
23 amount is not refunded to the lessee for any reason, the
24 lessor is liable to pay that amount to the Department.
25 (23) Personal property purchased by a lessor who leases
26 the property, under a lease of one year or longer executed
27 or in effect at the time the lessor would otherwise be
28 subject to the tax imposed by this Act, to a governmental
29 body that has been issued an active sales tax exemption
30 identification number by the Department under Section 1g of
31 the Retailers' Occupation Tax Act. If the property is leased
32 in a manner that does not qualify for this exemption or used
33 in any other non-exempt manner, the lessor shall be liable
34 for the tax imposed under this Act or the Service Use Tax
-7- LRB9100038PTpk
1 Act, as the case may be, based on the fair market value of
2 the 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 Service Use Tax Act, as the
6 case may be, if the tax has not been paid by the lessor. If
7 a lessor improperly collects any such amount from the lessee,
8 the 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 (24) 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 (25) 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.
-8- LRB9100038PTpk
1 (26) Beginning January 1, 2000, a work of fine art.
2 "Work of fine art", in this paragraph, means:
3 (A) A visual rendition including, but not limited
4 to, a painting, drawing, sculpture, mosaic, videotape, or
5 photograph.
6 (B) A work of calligraphy.
7 (C) A work of graphic art including, but not
8 limited to, an etching, lithograph, serigraph, or offset
9 print.
10 (D) A craft work in materials including, but not
11 limited to, clay, textile, fiber, wood, metal, plastic,
12 or glass.
13 (E) A work in mixed media including, but not
14 limited to, a collage, assemblage, or work consisting of
15 any combination of subparagraphs (A) through (D).
16 This paragraph is exempt from the provisions of Section 3-90.
17
18 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
19 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
20 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
21 eff. 12-12-97; 90-605, eff. 6-30-98.)
22 Section 10. The Service Use Tax Act is amended by
23 changing Section 3-5 as follows:
24 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
25 Sec. 3-5. Exemptions. Use of the following tangible
26 personal property is exempt from the tax imposed by this Act:
27 (1) Personal property purchased from a corporation,
28 society, association, foundation, institution, or
29 organization, other than a limited liability company, that is
30 organized and operated as a not-for-profit service enterprise
31 for the benefit of persons 65 years of age or older if the
32 personal property was not purchased by the enterprise for the
-9- LRB9100038PTpk
1 purpose of resale by the enterprise.
2 (2) Personal property purchased by a non-profit Illinois
3 county fair association for use in conducting, operating, or
4 promoting the county fair.
5 (3) Personal property purchased by a not-for-profit
6 music or dramatic arts organization that establishes, by
7 proof required by the Department by rule, that it has
8 received an exemption under Section 501(c)(3) of the Internal
9 Revenue Code and that is organized and operated for the
10 presentation of live public performances of musical or
11 theatrical works on a regular basis.
12 (4) Legal tender, currency, medallions, or gold or
13 silver coinage issued by the State of Illinois, the
14 government of the United States of America, or the government
15 of any foreign country, and bullion.
16 (5) Graphic arts machinery and equipment, including
17 repair and replacement parts, both new and used, and
18 including that manufactured on special order or purchased for
19 lease, certified by the purchaser to be used primarily for
20 graphic arts production.
21 (6) Personal property purchased from a teacher-sponsored
22 student organization affiliated with an elementary or
23 secondary school located in Illinois.
24 (7) Farm machinery and equipment, both new and used,
25 including that manufactured on special order, certified by
26 the purchaser to be used primarily for production agriculture
27 or State or federal agricultural programs, including
28 individual replacement parts for the machinery and equipment,
29 including machinery and equipment purchased for lease, and
30 including implements of husbandry defined in Section 1-130 of
31 the Illinois Vehicle Code, farm machinery and agricultural
32 chemical and fertilizer spreaders, and nurse wagons required
33 to be registered under Section 3-809 of the Illinois Vehicle
34 Code, but excluding other motor vehicles required to be
-10- LRB9100038PTpk
1 registered under the Illinois Vehicle Code. Horticultural
2 polyhouses or hoop houses used for propagating, growing, or
3 overwintering plants shall be considered farm machinery and
4 equipment under this item (7). Agricultural chemical tender
5 tanks and dry boxes shall include units sold separately from
6 a motor vehicle required to be licensed and units sold
7 mounted on a motor vehicle required to be licensed if the
8 selling price of the tender is separately stated.
9 Farm machinery and equipment shall include precision
10 farming equipment that is installed or purchased to be
11 installed on farm machinery and equipment including, but not
12 limited to, tractors, harvesters, sprayers, planters,
13 seeders, or spreaders. Precision farming equipment includes,
14 but is not limited to, soil testing sensors, computers,
15 monitors, software, global positioning and mapping systems,
16 and other such equipment.
17 Farm machinery and equipment also includes computers,
18 sensors, software, and related equipment used primarily in
19 the computer-assisted operation of production agriculture
20 facilities, equipment, and activities such as, but not
21 limited to, the collection, monitoring, and correlation of
22 animal and crop data for the purpose of formulating animal
23 diets and agricultural chemicals. This item (7) is exempt
24 from the provisions of Section 3-75.
25 (8) Fuel and petroleum products sold to or used by an
26 air common carrier, certified by the carrier to be used for
27 consumption, shipment, or storage in the conduct of its
28 business as an air common carrier, for a flight destined for
29 or returning from a location or locations outside the United
30 States without regard to previous or subsequent domestic
31 stopovers.
32 (9) Proceeds of mandatory service charges separately
33 stated on customers' bills for the purchase and consumption
34 of food and beverages acquired as an incident to the purchase
-11- LRB9100038PTpk
1 of a service from a serviceman, to the extent that the
2 proceeds of the service charge are in fact turned over as
3 tips or as a substitute for tips to the employees who
4 participate directly in preparing, serving, hosting or
5 cleaning up the food or beverage function with respect to
6 which the service charge is imposed.
7 (10) Oil field exploration, drilling, and production
8 equipment, including (i) rigs and parts of rigs, rotary rigs,
9 cable tool rigs, and workover rigs, (ii) pipe and tubular
10 goods, including casing and drill strings, (iii) pumps and
11 pump-jack units, (iv) storage tanks and flow lines, (v) any
12 individual replacement part for oil field exploration,
13 drilling, and production equipment, and (vi) machinery and
14 equipment purchased for lease; but excluding motor vehicles
15 required to be registered under the Illinois Vehicle Code.
16 (11) Proceeds from the sale of photoprocessing machinery
17 and equipment, including repair and replacement parts, both
18 new and used, including that manufactured on special order,
19 certified by the purchaser to be used primarily for
20 photoprocessing, and including photoprocessing machinery and
21 equipment purchased for lease.
22 (12) Coal exploration, mining, offhighway hauling,
23 processing, maintenance, and reclamation equipment, including
24 replacement parts and equipment, and including equipment
25 purchased for lease, but excluding motor vehicles required to
26 be registered under the Illinois Vehicle Code.
27 (13) Semen used for artificial insemination of livestock
28 for direct agricultural production.
29 (14) Horses, or interests in horses, registered with and
30 meeting the requirements of any of the Arabian Horse Club
31 Registry of America, Appaloosa Horse Club, American Quarter
32 Horse Association, United States Trotting Association, or
33 Jockey Club, as appropriate, used for purposes of breeding or
34 racing for prizes.
-12- LRB9100038PTpk
1 (15) Computers and communications equipment utilized for
2 any hospital purpose and equipment used in the diagnosis,
3 analysis, or treatment of hospital patients purchased by a
4 lessor who leases the equipment, under a lease of one year or
5 longer executed or in effect at the time the lessor would
6 otherwise be subject to the tax imposed by this Act, to a
7 hospital that has been issued an active tax exemption
8 identification number by the Department under Section 1g of
9 the Retailers' Occupation Tax Act. If the equipment is leased
10 in a manner that does not qualify for this exemption or is
11 used in any other non-exempt manner, the lessor shall be
12 liable for the tax imposed under this Act or the Use Tax Act,
13 as the case may be, based on the fair market value of the
14 property at the time the non-qualifying use occurs. No
15 lessor shall collect or attempt to collect an amount (however
16 designated) that purports to reimburse that lessor for the
17 tax imposed by this Act or the Use Tax Act, as the case may
18 be, if the tax has not been paid by the lessor. If a lessor
19 improperly collects any such amount from the lessee, the
20 lessee shall have a legal right to claim a refund of that
21 amount from the lessor. If, however, that amount is not
22 refunded to the lessee for any reason, the lessor is liable
23 to pay that amount to the Department.
24 (16) Personal property purchased by a lessor who leases
25 the property, under a lease of one year or longer executed or
26 in effect at the time the lessor would otherwise be subject
27 to the tax imposed by this Act, to a governmental body that
28 has been issued an active tax exemption identification number
29 by the Department under Section 1g of the Retailers'
30 Occupation Tax Act. If the property is leased in a manner
31 that does not qualify for this exemption or is used in any
32 other non-exempt manner, the lessor shall be liable for the
33 tax imposed under this Act or the Use Tax Act, as the case
34 may be, based on the fair market value of the property at the
-13- LRB9100038PTpk
1 time the non-qualifying use occurs. No lessor shall collect
2 or attempt to collect an amount (however designated) that
3 purports to reimburse that lessor for the tax imposed by this
4 Act or the Use Tax Act, as the case may be, if the tax has
5 not been paid by the lessor. If a lessor improperly collects
6 any such amount from the lessee, the lessee shall have a
7 legal right to claim a refund of that amount from the lessor.
8 If, however, that amount is not refunded to the lessee for
9 any reason, the lessor is liable to pay that amount to the
10 Department.
11 (17) Beginning with taxable years ending on or after
12 December 31, 1995 and ending with taxable years ending on or
13 before December 31, 2004, personal property that is donated
14 for disaster relief to be used in a State or federally
15 declared disaster area in Illinois or bordering Illinois by a
16 manufacturer or retailer that is registered in this State to
17 a corporation, society, association, foundation, or
18 institution that has been issued a sales tax exemption
19 identification number by the Department that assists victims
20 of the disaster who reside within the declared disaster area.
21 (18) Beginning with taxable years ending on or after
22 December 31, 1995 and ending with taxable years ending on or
23 before December 31, 2004, personal property that is used in
24 the performance of infrastructure repairs in this State,
25 including but not limited to municipal roads and streets,
26 access roads, bridges, sidewalks, waste disposal systems,
27 water and sewer line extensions, water distribution and
28 purification facilities, storm water drainage and retention
29 facilities, and sewage treatment facilities, resulting from a
30 State or federally declared disaster in Illinois or bordering
31 Illinois when such repairs are initiated on facilities
32 located in the declared disaster area within 6 months after
33 the disaster.
34 (19) Beginning January 1, 2000, a work of fine art.
-14- LRB9100038PTpk
1 "Work of fine art", in this paragraph, means:
2 (A) A visual rendition including, but not limited
3 to, a painting, drawing, sculpture, mosaic, videotape, or
4 photograph.
5 (B) A work of calligraphy.
6 (C) A work of graphic art including, but not
7 limited to, an etching, lithograph, serigraph, or offset
8 print.
9 (D) A craft work in materials including, but not
10 limited to, clay, textile, fiber, wood, metal, plastic,
11 or glass.
12 (E) A work in mixed media including, but not
13 limited to, a collage, assemblage, or work consisting of
14 any combination of subparagraphs (A) through (D).
15 This paragraph is exempt from the provisions of Section 3-75.
16
17 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
18 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
19 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
20 eff. 12-12-97; 90-605, eff. 6-30-98.)
21 Section 15. The Service Occupation Tax Act is amended by
22 changing Section 3-5 as follows:
23 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
24 Sec. 3-5. Exemptions. The following tangible personal
25 property is exempt from the tax imposed by this Act:
26 (1) Personal property sold by a corporation, society,
27 association, foundation, institution, or organization, other
28 than a limited liability company, that is organized and
29 operated as a not-for-profit service enterprise for the
30 benefit of persons 65 years of age or older if the personal
31 property was not purchased by the enterprise for the purpose
32 of resale by the enterprise.
-15- LRB9100038PTpk
1 (2) Personal property purchased by a not-for-profit
2 Illinois county fair association for use in conducting,
3 operating, or promoting the county fair.
4 (3) Personal property purchased by any not-for-profit
5 music or dramatic arts organization that establishes, by
6 proof required by the Department by rule, that it has
7 received an exemption under Section 501(c)(3) of the
8 Internal Revenue Code and that is organized and operated for
9 the presentation of live public performances of musical or
10 theatrical works on a regular basis.
11 (4) Legal tender, currency, medallions, or gold or
12 silver coinage issued by the State of Illinois, the
13 government of the United States of America, or the government
14 of any foreign country, and bullion.
15 (5) Graphic arts machinery and equipment, including
16 repair and replacement parts, both new and used, and
17 including that manufactured on special order or purchased for
18 lease, certified by the purchaser to be used primarily for
19 graphic arts production.
20 (6) Personal property sold by a teacher-sponsored
21 student organization affiliated with an elementary or
22 secondary school located in Illinois.
23 (7) Farm machinery and equipment, both new and used,
24 including that manufactured on special order, certified by
25 the purchaser to be used primarily for production agriculture
26 or State or federal agricultural programs, including
27 individual replacement parts for the machinery and equipment,
28 including machinery and equipment purchased for lease, and
29 including implements of husbandry defined in Section 1-130 of
30 the Illinois Vehicle Code, farm machinery and agricultural
31 chemical and fertilizer spreaders, and nurse wagons required
32 to be registered under Section 3-809 of the Illinois Vehicle
33 Code, but excluding other motor vehicles required to be
34 registered under the Illinois Vehicle Code. Horticultural
-16- LRB9100038PTpk
1 polyhouses or hoop houses used for propagating, growing, or
2 overwintering plants shall be considered farm machinery and
3 equipment under this item (7). Agricultural chemical tender
4 tanks and dry boxes shall include units sold separately from
5 a motor vehicle required to be licensed and units sold
6 mounted on a motor vehicle required to be licensed if the
7 selling price of the tender is separately stated.
8 Farm machinery and equipment shall include precision
9 farming equipment that is installed or purchased to be
10 installed on farm machinery and equipment including, but not
11 limited to, tractors, harvesters, sprayers, planters,
12 seeders, or spreaders. Precision farming equipment includes,
13 but is not limited to, soil testing sensors, computers,
14 monitors, software, global positioning and mapping systems,
15 and other such equipment.
16 Farm machinery and equipment also includes computers,
17 sensors, software, and related equipment used primarily in
18 the computer-assisted operation of production agriculture
19 facilities, equipment, and activities such as, but not
20 limited to, the collection, monitoring, and correlation of
21 animal and crop data for the purpose of formulating animal
22 diets and agricultural chemicals. This item (7) is exempt
23 from the provisions of Section 3-75.
24 (8) Fuel and petroleum products sold to or used by an
25 air common carrier, certified by the carrier to be used for
26 consumption, shipment, or storage in the conduct of its
27 business as an air common carrier, for a flight destined for
28 or returning from a location or locations outside the United
29 States without regard to previous or subsequent domestic
30 stopovers.
31 (9) Proceeds of mandatory service charges separately
32 stated on customers' bills for the purchase and consumption
33 of food and beverages, to the extent that the proceeds of the
34 service charge are in fact turned over as tips or as a
-17- LRB9100038PTpk
1 substitute for tips to the employees who participate directly
2 in preparing, serving, hosting or cleaning up the food or
3 beverage function with respect to which the service charge is
4 imposed.
5 (10) Oil field exploration, drilling, and production
6 equipment, including (i) rigs and parts of rigs, rotary rigs,
7 cable tool rigs, and workover rigs, (ii) pipe and tubular
8 goods, including casing and drill strings, (iii) pumps and
9 pump-jack units, (iv) storage tanks and flow lines, (v) any
10 individual replacement part for oil field exploration,
11 drilling, and production equipment, and (vi) machinery and
12 equipment purchased for lease; but excluding motor vehicles
13 required to be registered under the Illinois Vehicle Code.
14 (11) Photoprocessing machinery and equipment, including
15 repair and replacement parts, both new and used, including
16 that manufactured on special order, certified by the
17 purchaser to be used primarily for photoprocessing, and
18 including photoprocessing machinery and equipment purchased
19 for lease.
20 (12) Coal exploration, mining, offhighway hauling,
21 processing, maintenance, and reclamation equipment, including
22 replacement parts and equipment, and including equipment
23 purchased for lease, but excluding motor vehicles required to
24 be registered under the Illinois Vehicle Code.
25 (13) Food for human consumption that is to be consumed
26 off the premises where it is sold (other than alcoholic
27 beverages, soft drinks and food that has been prepared for
28 immediate consumption) and prescription and non-prescription
29 medicines, drugs, medical appliances, and insulin, urine
30 testing materials, syringes, and needles used by diabetics,
31 for human use, when purchased for use by a person receiving
32 medical assistance under Article 5 of the Illinois Public Aid
33 Code who resides in a licensed long-term care facility, as
34 defined in the Nursing Home Care Act.
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1 (14) Semen used for artificial insemination of livestock
2 for direct agricultural production.
3 (15) Horses, or interests in horses, registered with and
4 meeting the requirements of any of the Arabian Horse Club
5 Registry of America, Appaloosa Horse Club, American Quarter
6 Horse Association, United States Trotting Association, or
7 Jockey Club, as appropriate, used for purposes of breeding or
8 racing for prizes.
9 (16) Computers and communications equipment utilized for
10 any hospital purpose and equipment used in the diagnosis,
11 analysis, or treatment of hospital patients sold to a lessor
12 who leases the equipment, under a lease of one year or longer
13 executed or in effect at the time of the purchase, to a
14 hospital that has been issued an active tax exemption
15 identification number by the Department under Section 1g of
16 the Retailers' Occupation Tax Act.
17 (17) Personal property sold to a lessor who leases the
18 property, under a lease of one year or longer executed or in
19 effect at the time of the purchase, to a governmental body
20 that has been issued an active tax exemption identification
21 number by the Department under Section 1g of the Retailers'
22 Occupation Tax Act.
23 (18) 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 donated
26 for disaster relief to be used in a State or federally
27 declared disaster area in Illinois or bordering Illinois by a
28 manufacturer or retailer that is registered in this State to
29 a corporation, society, association, foundation, or
30 institution that has been issued a sales tax exemption
31 identification number by the Department that assists victims
32 of the disaster who reside within the declared disaster area.
33 (19) Beginning with taxable years ending on or after
34 December 31, 1995 and ending with taxable years ending on or
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1 before December 31, 2004, personal property that is used in
2 the performance of infrastructure repairs in this State,
3 including but not limited to municipal roads and streets,
4 access roads, bridges, sidewalks, waste disposal systems,
5 water and sewer line extensions, water distribution and
6 purification facilities, storm water drainage and retention
7 facilities, and sewage treatment facilities, resulting from a
8 State or federally declared disaster in Illinois or bordering
9 Illinois when such repairs are initiated on facilities
10 located in the declared disaster area within 6 months after
11 the disaster.
12 (20) Beginning January 1, 2000, a work of fine art.
13 "Work of fine art", in this paragraph, means:
14 (A) A visual rendition including, but not limited
15 to, a painting, drawing, sculpture, mosaic, videotape, or
16 photograph.
17 (B) A work of calligraphy.
18 (C) A work of graphic art including, but not
19 limited to, an etching, lithograph, serigraph, or offset
20 print.
21 (D) A craft work in materials including, but not
22 limited to, clay, textile, fiber, wood, metal, plastic,
23 or glass.
24 (E) A work in mixed media including, but not
25 limited to, a collage, assemblage, or work consisting of
26 any combination of subparagraphs (A) through (D).
27 This paragraph is exempt from the provisions of Section 3-55.
28
29 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
30 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
31 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
32 eff. 12-12-97; 90-605, eff. 6-30-98.)
33 Section 20. The Retailers' Occupation Tax Act is amended
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1 by changing Section 2-5 as follows:
2 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
3 Sec. 2-5. Exemptions. Gross receipts from proceeds from
4 the sale of the following tangible personal property are
5 exempt from the tax imposed by this Act:
6 (1) Farm chemicals.
7 (2) Farm machinery and equipment, both new and used,
8 including that manufactured on special order, certified by
9 the purchaser to be used primarily for production agriculture
10 or State or federal agricultural programs, including
11 individual replacement parts for the machinery and equipment,
12 including machinery and equipment purchased for lease, and
13 including implements of husbandry defined in Section 1-130 of
14 the Illinois Vehicle Code, farm machinery and agricultural
15 chemical and fertilizer spreaders, and nurse wagons required
16 to be registered under Section 3-809 of the Illinois Vehicle
17 Code, but excluding other motor vehicles required to be
18 registered under the Illinois Vehicle Code. Horticultural
19 polyhouses or hoop houses used for propagating, growing, or
20 overwintering plants shall be considered farm machinery and
21 equipment under this item (2). Agricultural chemical tender
22 tanks and dry boxes shall include units sold separately from
23 a motor vehicle required to be licensed and units sold
24 mounted on a motor vehicle required to be licensed, if the
25 selling price of the tender is separately stated.
26 Farm machinery and equipment shall include precision
27 farming equipment that is installed or purchased to be
28 installed on farm machinery and equipment including, but not
29 limited to, tractors, harvesters, sprayers, planters,
30 seeders, or spreaders. Precision farming equipment includes,
31 but is not limited to, soil testing sensors, computers,
32 monitors, software, global positioning and mapping systems,
33 and other such equipment.
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1 Farm machinery and equipment also includes computers,
2 sensors, software, and related equipment used primarily in
3 the computer-assisted operation of production agriculture
4 facilities, equipment, and activities such as, but not
5 limited to, the collection, monitoring, and correlation of
6 animal and crop data for the purpose of formulating animal
7 diets and agricultural chemicals. This item (7) is exempt
8 from the provisions of Section 3-75.
9 (3) Distillation machinery and equipment, sold as a unit
10 or kit, assembled or installed by the retailer, certified by
11 the user to be used only for the production of ethyl alcohol
12 that will be used for consumption as motor fuel or as a
13 component of motor fuel for the personal use of the user, and
14 not subject to sale or resale.
15 (4) Graphic arts machinery and equipment, including
16 repair and replacement parts, both new and used, and
17 including that manufactured on special order or purchased for
18 lease, certified by the purchaser to be used primarily for
19 graphic arts production.
20 (5) A motor vehicle of the first division, a motor
21 vehicle of the second division that is a self-contained motor
22 vehicle designed or permanently converted to provide living
23 quarters for recreational, camping, or travel use, with
24 direct walk through access to the living quarters from the
25 driver's seat, or a motor vehicle of the second division that
26 is of the van configuration designed for the transportation
27 of not less than 7 nor more than 16 passengers, as defined in
28 Section 1-146 of the Illinois Vehicle Code, that is used for
29 automobile renting, as defined in the Automobile Renting
30 Occupation and Use Tax Act.
31 (6) Personal property sold by a teacher-sponsored
32 student organization affiliated with an elementary or
33 secondary school located in Illinois.
34 (7) Proceeds of that portion of the selling price of a
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1 passenger car the sale of which is subject to the Replacement
2 Vehicle Tax.
3 (8) Personal property sold to an Illinois county fair
4 association for use in conducting, operating, or promoting
5 the county fair.
6 (9) Personal property sold to a not-for-profit music or
7 dramatic arts organization that establishes, by proof
8 required by the Department by rule, that it has received an
9 exemption under Section 501(c) (3) of the Internal Revenue
10 Code and that is organized and operated for the presentation
11 of live public performances of musical or theatrical works on
12 a regular basis.
13 (10) Personal property sold by a corporation, society,
14 association, foundation, institution, or organization, other
15 than a limited liability company, that is organized and
16 operated as a not-for-profit service enterprise for the
17 benefit of persons 65 years of age or older if the personal
18 property was not purchased by the enterprise for the purpose
19 of resale by the enterprise.
20 (11) Personal property sold to a governmental body, to a
21 corporation, society, association, foundation, or institution
22 organized and operated exclusively for charitable, religious,
23 or educational purposes, or to a not-for-profit corporation,
24 society, association, foundation, institution, or
25 organization that has no compensated officers or employees
26 and that is organized and operated primarily for the
27 recreation of persons 55 years of age or older. A limited
28 liability company may qualify for the exemption under this
29 paragraph only if the limited liability company is organized
30 and operated exclusively for educational purposes. On and
31 after July 1, 1987, however, no entity otherwise eligible for
32 this exemption shall make tax-free purchases unless it has an
33 active identification number issued by the Department.
34 (12) Personal property sold to interstate carriers for
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1 hire for use as rolling stock moving in interstate commerce
2 or to lessors under leases of one year or longer executed or
3 in effect at the time of purchase by interstate carriers for
4 hire for use as rolling stock moving in interstate commerce
5 and equipment operated by a telecommunications provider,
6 licensed as a common carrier by the Federal Communications
7 Commission, which is permanently installed in or affixed to
8 aircraft moving in interstate commerce.
9 (13) Proceeds from sales to owners, lessors, or shippers
10 of tangible personal property that is utilized by interstate
11 carriers for hire for use as rolling stock moving in
12 interstate commerce and equipment operated by a
13 telecommunications provider, licensed as a common carrier by
14 the Federal Communications Commission, which is permanently
15 installed in or affixed to aircraft moving in interstate
16 commerce.
17 (14) Machinery and equipment that will be used by the
18 purchaser, or a lessee of the purchaser, primarily in the
19 process of manufacturing or assembling tangible personal
20 property for wholesale or retail sale or lease, whether the
21 sale or lease is made directly by the manufacturer or by some
22 other person, whether the materials used in the process are
23 owned by the manufacturer or some other person, or whether
24 the sale or lease is made apart from or as an incident to the
25 seller's engaging in the service occupation of producing
26 machines, tools, dies, jigs, patterns, gauges, or other
27 similar items of no commercial value on special order for a
28 particular purchaser.
29 (15) Proceeds of mandatory service charges separately
30 stated on customers' bills for purchase and consumption of
31 food and beverages, to the extent that the proceeds of the
32 service charge are in fact turned over as tips or as a
33 substitute for tips to the employees who participate directly
34 in preparing, serving, hosting or cleaning up the food or
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1 beverage function with respect to which the service charge is
2 imposed.
3 (16) Petroleum products sold to a purchaser if the
4 seller is prohibited by federal law from charging tax to the
5 purchaser.
6 (17) Tangible personal property sold to a common carrier
7 by rail or motor that receives the physical possession of the
8 property in Illinois and that transports the property, or
9 shares with another common carrier in the transportation of
10 the property, out of Illinois on a standard uniform bill of
11 lading showing the seller of the property as the shipper or
12 consignor of the property to a destination outside Illinois,
13 for use outside Illinois.
14 (18) Legal tender, currency, medallions, or gold or
15 silver coinage issued by the State of Illinois, the
16 government of the United States of America, or the government
17 of any foreign country, and bullion.
18 (19) Oil field exploration, drilling, and production
19 equipment, including (i) rigs and parts of rigs, rotary rigs,
20 cable tool rigs, and workover rigs, (ii) pipe and tubular
21 goods, including casing and drill strings, (iii) pumps and
22 pump-jack units, (iv) storage tanks and flow lines, (v) any
23 individual replacement part for oil field exploration,
24 drilling, and production equipment, and (vi) machinery and
25 equipment purchased for lease; but excluding motor vehicles
26 required to be registered under the Illinois Vehicle Code.
27 (20) Photoprocessing machinery and equipment, including
28 repair and replacement parts, both new and used, including
29 that manufactured on special order, certified by the
30 purchaser to be used primarily for photoprocessing, and
31 including photoprocessing machinery and equipment purchased
32 for lease.
33 (21) Coal exploration, mining, offhighway hauling,
34 processing, maintenance, and reclamation equipment, including
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1 replacement parts and equipment, and including equipment
2 purchased for lease, but excluding motor vehicles required to
3 be registered under the Illinois Vehicle Code.
4 (22) Fuel and petroleum products sold to or used by an
5 air carrier, certified by the carrier to be used for
6 consumption, shipment, or storage in the conduct of its
7 business as an air common carrier, for a flight destined for
8 or returning from a location or locations outside the United
9 States without regard to previous or subsequent domestic
10 stopovers.
11 (23) A transaction in which the purchase order is
12 received by a florist who is located outside Illinois, but
13 who has a florist located in Illinois deliver the property to
14 the purchaser or the purchaser's donee in Illinois.
15 (24) Fuel consumed or used in the operation of ships,
16 barges, or vessels that are used primarily in or for the
17 transportation of property or the conveyance of persons for
18 hire on rivers bordering on this State if the fuel is
19 delivered by the seller to the purchaser's barge, ship, or
20 vessel while it is afloat upon that bordering river.
21 (25) A motor vehicle sold in this State to a nonresident
22 even though the motor vehicle is delivered to the nonresident
23 in this State, if the motor vehicle is not to be titled in
24 this State, and if a driveaway decal permit is issued to the
25 motor vehicle as provided in Section 3-603 of the Illinois
26 Vehicle Code or if the nonresident purchaser has vehicle
27 registration plates to transfer to the motor vehicle upon
28 returning to his or her home state. The issuance of the
29 driveaway decal permit or having the out-of-state
30 registration plates to be transferred is prima facie evidence
31 that the motor vehicle will not be titled in this State.
32 (26) Semen used for artificial insemination of livestock
33 for direct agricultural production.
34 (27) Horses, or interests in horses, registered with and
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1 meeting the requirements of any of the Arabian Horse Club
2 Registry of America, Appaloosa Horse Club, American Quarter
3 Horse Association, United States Trotting Association, or
4 Jockey Club, as appropriate, used for purposes of breeding or
5 racing for prizes.
6 (28) Computers and communications equipment utilized for
7 any hospital purpose and equipment used in the diagnosis,
8 analysis, or treatment of hospital patients sold to a lessor
9 who leases the equipment, under a lease of one year or longer
10 executed or in effect at the time of the purchase, to a
11 hospital that has been issued an active tax exemption
12 identification number by the Department under Section 1g of
13 this Act.
14 (29) Personal property sold to a lessor who leases the
15 property, under a lease of one year or longer executed or in
16 effect at the time of the purchase, to a governmental body
17 that has been issued an active tax exemption identification
18 number by the Department under Section 1g of this Act.
19 (30) Beginning with taxable years ending on or after
20 December 31, 1995 and ending with taxable years ending on or
21 before December 31, 2004, personal property that is donated
22 for disaster relief to be used in a State or federally
23 declared disaster area in Illinois or bordering Illinois by a
24 manufacturer or retailer that is registered in this State to
25 a corporation, society, association, foundation, or
26 institution that has been issued a sales tax exemption
27 identification number by the Department that assists victims
28 of the disaster who reside within the declared disaster area.
29 (31) Beginning with taxable years ending on or after
30 December 31, 1995 and ending with taxable years ending on or
31 before December 31, 2004, personal property that is used in
32 the performance of infrastructure repairs in this State,
33 including but not limited to municipal roads and streets,
34 access roads, bridges, sidewalks, waste disposal systems,
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1 water and sewer line extensions, water distribution and
2 purification facilities, storm water drainage and retention
3 facilities, and sewage treatment facilities, resulting from a
4 State or federally declared disaster in Illinois or bordering
5 Illinois when such repairs are initiated on facilities
6 located in the declared disaster area within 6 months after
7 the disaster.
8 (32) Beginning January 1, 2000, a work of fine art.
9 "Work of fine art", in this paragraph, means:
10 (A) A visual rendition including, but not limited
11 to, a painting, drawing, sculpture, mosaic, videotape, or
12 photograph.
13 (B) A work of calligraphy.
14 (C) A work of graphic art including, but not
15 limited to, an etching, lithograph, serigraph, or offset
16 print.
17 (D) A craft work in materials including, but not
18 limited to, clay, textile, fiber, wood, metal, plastic,
19 or glass.
20 (E) A work in mixed media including, but not
21 limited to, a collage, assemblage, or work consisting of
22 any combination of subparagraphs (A) through (D).
23 This paragraph is exempt from the provisions of Section 2-70.
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; 90-519,
28 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.