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91_HB4091
LRB9112250SMdvA
1 AN ACT concerning internet transactions.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. the Department of Revenue Law of the Civil
5 Administrative Code of Illinois is amended by adding Section
6 2505-555 as follows:
7 (20 ILCS 2505/2505-555 new)
8 Sec. 2505-555. Advisory Task Force on Internet Taxation.
9 There is created within the Department an Advisory Task Force
10 on Internet Taxation to study the effect of taxing or not
11 taxing Internet sales and the impact that taxing Internet
12 sales would have on Illinois businesses. The Task Force
13 shall consist of 12 members appointed by the Governor, no
14 more than 6 of whom shall be from the same political party.
15 The Task Force shall meet initially at the call of the
16 Governor, shall select one member as chairperson and one
17 member as vice-chairperson, and thereafter meet at the call
18 of the chairperson. The members shall receive no
19 compensation for their services on the Task Force but shall
20 be reimbursed by the Department for any ordinary and
21 necessary expenses incurred in the performance of their
22 duties.
23 The Advisory Task Force on Internet Taxation shall
24 compile a report concerning the effect of taxing or not
25 taxing Internet sales and the impact that taxing Internet
26 sales would have on Illinois businesses and include in the
27 report its advisory recommendations. The Task Force shall
28 file its report with the Governor's Office and with the Clerk
29 of the House and the Secretary of the Senate by January 15,
30 2003. Upon filing its report, the Task Force is dissolved.
-2- LRB9112250SMdvA
1 Section 10. The Use Tax Act is amended by changing
2 Section 3-5 as follows:
3 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
4 Sec. 3-5. Exemptions. Use of the following tangible
5 personal property is exempt from the tax imposed by this Act:
6 (1) Personal property purchased from a corporation,
7 society, association, foundation, institution, or
8 organization, other than a limited liability company, that is
9 organized and operated as a not-for-profit service enterprise
10 for the benefit of persons 65 years of age or older if the
11 personal property was not purchased by the enterprise for the
12 purpose of resale by the enterprise.
13 (2) Personal property purchased by a not-for-profit
14 Illinois county fair association for use in conducting,
15 operating, or promoting the county fair.
16 (3) Personal property purchased by a not-for-profit arts
17 or cultural organization that establishes, by proof required
18 by the Department by rule, that it has received an exemption
19 under Section 501(c)(3) of the Internal Revenue Code and that
20 is organized and operated for the presentation or support of
21 arts or cultural programming, activities, or services. These
22 organizations include, but are not limited to, music and
23 dramatic arts organizations such as symphony orchestras and
24 theatrical groups, arts and cultural service organizations,
25 local arts councils, visual arts organizations, and media
26 arts organizations.
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,
32 institution, or organization that has no compensated officers
33 or employees and that is organized and operated primarily for
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1 the recreation of persons 55 years of age or older. A limited
2 liability company may qualify for the exemption under this
3 paragraph only if the limited liability company is organized
4 and operated exclusively for educational purposes. On and
5 after July 1, 1987, however, no entity otherwise eligible for
6 this exemption shall make tax-free purchases unless it has an
7 active exemption identification number issued by the
8 Department.
9 (5) A passenger car that is a replacement vehicle to the
10 extent that the purchase price of the car is subject to the
11 Replacement Vehicle Tax.
12 (6) Graphic arts machinery and equipment, including
13 repair and replacement parts, both new and used, and
14 including that manufactured on special order, certified by
15 the purchaser to be used primarily for graphic arts
16 production, and including machinery and equipment purchased
17 for lease.
18 (7) Farm chemicals.
19 (8) Legal tender, currency, medallions, or gold or
20 silver coinage issued by the State of Illinois, the
21 government of the United States of America, or the government
22 of any foreign country, and bullion.
23 (9) Personal property purchased from a teacher-sponsored
24 student organization affiliated with an elementary or
25 secondary school located in Illinois.
26 (10) A motor vehicle of the first division, a motor
27 vehicle of the second division that is a self-contained motor
28 vehicle designed or permanently converted to provide living
29 quarters for recreational, camping, or travel use, with
30 direct walk through to the living quarters from the driver's
31 seat, or a motor vehicle of the second division that is of
32 the van configuration designed for the transportation of not
33 less than 7 nor more than 16 passengers, as defined in
34 Section 1-146 of the Illinois Vehicle Code, that is used for
-4- LRB9112250SMdvA
1 automobile renting, as defined in the Automobile Renting
2 Occupation and Use Tax Act.
3 (11) Farm machinery and equipment, both new and used,
4 including that manufactured on special order, certified by
5 the purchaser to be used primarily for production agriculture
6 or State or federal agricultural programs, including
7 individual replacement parts for the machinery and equipment,
8 including machinery and equipment purchased for lease, and
9 including implements of husbandry defined in Section 1-130 of
10 the Illinois Vehicle Code, farm machinery and agricultural
11 chemical and fertilizer spreaders, and nurse wagons required
12 to be registered under Section 3-809 of the Illinois Vehicle
13 Code, but excluding other motor vehicles required to be
14 registered under the Illinois Vehicle Code. Horticultural
15 polyhouses or hoop houses used for propagating, growing, or
16 overwintering plants shall be considered farm machinery and
17 equipment under this item (11). Agricultural chemical tender
18 tanks and dry boxes shall include units sold separately from
19 a motor vehicle required to be licensed and units sold
20 mounted on a motor vehicle required to be licensed if the
21 selling price of the tender is separately stated.
22 Farm machinery and equipment shall include precision
23 farming equipment that is installed or purchased to be
24 installed on farm machinery and equipment including, but not
25 limited to, tractors, harvesters, sprayers, planters,
26 seeders, or spreaders. Precision farming equipment includes,
27 but is not limited to, soil testing sensors, computers,
28 monitors, software, global positioning and mapping systems,
29 and other such equipment.
30 Farm machinery and equipment also includes computers,
31 sensors, software, and related equipment used primarily in
32 the computer-assisted operation of production agriculture
33 facilities, equipment, and activities such as, but not
34 limited to, the collection, monitoring, and correlation of
-5- LRB9112250SMdvA
1 animal and crop data for the purpose of formulating animal
2 diets and agricultural chemicals. This item (11) is exempt
3 from the provisions of Section 3-90.
4 (12) Fuel and petroleum products sold to or used by an
5 air common carrier, certified by the carrier to be used for
6 consumption, shipment, or storage in the conduct of its
7 business as an air common carrier, for a flight destined for
8 or returning from a location or locations outside the United
9 States without regard to previous or subsequent domestic
10 stopovers.
11 (13) Proceeds of mandatory service charges separately
12 stated on customers' bills for the purchase and consumption
13 of food and beverages purchased at retail from a retailer, to
14 the extent that the proceeds of the service charge are in
15 fact turned over as tips or as a substitute for tips to the
16 employees who participate directly in preparing, serving,
17 hosting or cleaning up the food or beverage function with
18 respect to which the service charge is imposed.
19 (14) Oil field exploration, drilling, and production
20 equipment, including (i) rigs and parts of rigs, rotary rigs,
21 cable tool rigs, and workover rigs, (ii) pipe and tubular
22 goods, including casing and drill strings, (iii) pumps and
23 pump-jack units, (iv) storage tanks and flow lines, (v) any
24 individual replacement part for oil field exploration,
25 drilling, and production equipment, and (vi) machinery and
26 equipment purchased for lease; but excluding motor vehicles
27 required to be registered under the Illinois Vehicle Code.
28 (15) Photoprocessing machinery and equipment, including
29 repair and replacement parts, both new and used, including
30 that manufactured on special order, certified by the
31 purchaser to be used primarily for photoprocessing, and
32 including photoprocessing machinery and equipment purchased
33 for lease.
34 (16) Coal exploration, mining, offhighway hauling,
-6- LRB9112250SMdvA
1 processing, maintenance, and reclamation equipment, including
2 replacement parts and equipment, and including equipment
3 purchased for lease, but excluding motor vehicles required to
4 be registered under the Illinois Vehicle Code.
5 (17) Distillation machinery and equipment, sold as a
6 unit or kit, assembled or installed by the retailer,
7 certified by the user to be used only for the production of
8 ethyl alcohol that will be used for consumption as motor fuel
9 or as a component of motor fuel for the personal use of the
10 user, and not subject to sale or resale.
11 (18) Manufacturing and assembling machinery and
12 equipment used primarily in the process of manufacturing or
13 assembling tangible personal property for wholesale or retail
14 sale or lease, whether that sale or lease is made directly by
15 the manufacturer or by some other person, whether the
16 materials used in the process are owned by the manufacturer
17 or some other person, or whether that sale or lease is made
18 apart from or as an incident to the seller's engaging in the
19 service occupation of producing machines, tools, dies, jigs,
20 patterns, gauges, or other similar items of no commercial
21 value on special order for a particular purchaser.
22 (19) Personal property delivered to a purchaser or
23 purchaser's donee inside Illinois when the purchase order for
24 that personal property was received by a florist located
25 outside Illinois who has a florist located inside Illinois
26 deliver the personal property.
27 (20) Semen used for artificial insemination of livestock
28 for direct agricultural production.
29 (21) 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.
-7- LRB9112250SMdvA
1 (22) 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
10 leased in a manner that does not qualify for this exemption
11 or is used in any other non-exempt manner, the lessor shall
12 be liable for the tax imposed under this Act or the Service
13 Use Tax Act, as the case may be, based on the fair market
14 value of the property at the time the non-qualifying use
15 occurs. No lessor shall collect or attempt to collect an
16 amount (however designated) that purports to reimburse that
17 lessor for the tax imposed by this Act or the Service Use Tax
18 Act, as the case may be, if the tax has not been paid by the
19 lessor. If a lessor improperly collects any such amount from
20 the lessee, the lessee shall have a legal right to claim a
21 refund of that amount from the lessor. If, however, that
22 amount is not refunded to the lessee for any reason, the
23 lessor is liable to pay that amount to the Department.
24 (23) Personal property purchased by a lessor who leases
25 the property, under a lease of one year or longer executed
26 or in effect at the time the lessor would otherwise be
27 subject to the tax imposed by this Act, to a governmental
28 body that has been issued an active sales tax exemption
29 identification number by the Department under Section 1g of
30 the Retailers' Occupation Tax Act. If the property is leased
31 in a manner that does not qualify for this exemption or used
32 in any other non-exempt manner, the lessor shall be liable
33 for the tax imposed under this Act or the Service Use Tax
34 Act, as the case may be, based on the fair market value of
-8- LRB9112250SMdvA
1 the property at the time the non-qualifying use occurs. No
2 lessor shall collect or attempt to collect an amount (however
3 designated) that purports to reimburse that lessor for the
4 tax imposed by this Act or the Service Use Tax Act, as the
5 case may be, if the tax has not been paid by the lessor. If
6 a lessor improperly collects any such amount from the lessee,
7 the lessee shall have a legal right to claim a refund of that
8 amount from the lessor. If, however, that amount is not
9 refunded to the lessee for any reason, the lessor is liable
10 to pay that amount to the Department.
11 (24) 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 (25) 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 (26) Beginning July 1, 1999, game or game birds
-9- LRB9112250SMdvA
1 purchased at a "game breeding and hunting preserve area" or
2 an "exotic game hunting area" as those terms are used in the
3 Wildlife Code or at a hunting enclosure approved through
4 rules adopted by the Department of Natural Resources. This
5 paragraph is exempt from the provisions of Section 3-90.
6 (27) (26) A motor vehicle, as that term is defined in
7 Section 1-146 of the Illinois Vehicle Code, that is donated
8 to a corporation, limited liability company, society,
9 association, foundation, or institution that is determined by
10 the Department to be organized and operated exclusively for
11 educational purposes. For purposes of this exemption, "a
12 corporation, limited liability company, society, association,
13 foundation, or institution organized and operated exclusively
14 for educational purposes" means all tax-supported public
15 schools, private schools that offer systematic instruction in
16 useful branches of learning by methods common to public
17 schools and that compare favorably in their scope and
18 intensity with the course of study presented in tax-supported
19 schools, and vocational or technical schools or institutes
20 organized and operated exclusively to provide a course of
21 study of not less than 6 weeks duration and designed to
22 prepare individuals to follow a trade or to pursue a manual,
23 technical, mechanical, industrial, business, or commercial
24 occupation.
25 (28) (27) Beginning January 1, 2000, personal property,
26 including food, purchased through fundraising events for the
27 benefit of a public or private elementary or secondary
28 school, a group of those schools, or one or more school
29 districts if the events are sponsored by an entity recognized
30 by the school district that consists primarily of volunteers
31 and includes parents and teachers of the school children.
32 This paragraph does not apply to fundraising events (i) for
33 the benefit of private home instruction or (ii) for which the
34 fundraising entity purchases the personal property sold at
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1 the events from another individual or entity that sold the
2 property for the purpose of resale by the fundraising entity
3 and that profits from the sale to the fundraising entity.
4 This paragraph is exempt from the provisions of Section 3-90.
5 (29) (26) Beginning January 1, 2000, new or used
6 automatic vending machines that prepare and serve hot food
7 and beverages, including coffee, soup, and other items, and
8 replacement parts for these machines. This paragraph is
9 exempt from the provisions of Section 3-90.
10 (30) For taxable years through 2003, personal property
11 purchased in a transaction conducted over the Internet.
12 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
13 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
14 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
15 eff. 8-20-99; revised 9-29-99.)
16 Section 15. The Service Use Tax Act is amended by
17 changing Section 3-5 as follows:
18 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
19 Sec. 3-5. Exemptions. Use of the following tangible
20 personal property is exempt from the tax imposed by this Act:
21 (1) Personal property purchased from a corporation,
22 society, association, foundation, institution, or
23 organization, other than a limited liability company, that is
24 organized and operated as a not-for-profit service enterprise
25 for the benefit of persons 65 years of age or older if the
26 personal property was not purchased by the enterprise for the
27 purpose of resale by the enterprise.
28 (2) Personal property purchased by a non-profit Illinois
29 county fair association for use in conducting, operating, or
30 promoting the county fair.
31 (3) Personal property purchased by a not-for-profit arts
32 or cultural organization that establishes, by proof required
-11- LRB9112250SMdvA
1 by the Department by rule, that it has received an exemption
2 under Section 501(c)(3) of the Internal Revenue Code and that
3 is organized and operated for the presentation or support of
4 arts or cultural programming, activities, or services. These
5 organizations include, but are not limited to, music and
6 dramatic arts organizations such as symphony orchestras and
7 theatrical groups, arts and cultural service organizations,
8 local arts councils, visual arts organizations, and media
9 arts organizations.
10 (4) 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 (5) Graphic arts machinery and equipment, including
15 repair and replacement parts, both new and used, and
16 including that manufactured on special order or purchased for
17 lease, certified by the purchaser to be used primarily for
18 graphic arts production.
19 (6) Personal property purchased from a teacher-sponsored
20 student organization affiliated with an elementary or
21 secondary school located in Illinois.
22 (7) Farm machinery and equipment, both new and used,
23 including that manufactured on special order, certified by
24 the purchaser to be used primarily for production agriculture
25 or State or federal agricultural programs, including
26 individual replacement parts for the machinery and equipment,
27 including machinery and equipment purchased for lease, and
28 including implements of husbandry defined in Section 1-130 of
29 the Illinois Vehicle Code, farm machinery and agricultural
30 chemical and fertilizer spreaders, and nurse wagons required
31 to be registered under Section 3-809 of the Illinois Vehicle
32 Code, but excluding other motor vehicles required to be
33 registered under the Illinois Vehicle Code. Horticultural
34 polyhouses or hoop houses used for propagating, growing, or
-12- LRB9112250SMdvA
1 overwintering plants shall be considered farm machinery and
2 equipment under this item (7). Agricultural chemical tender
3 tanks and dry boxes shall include units sold separately from
4 a motor vehicle required to be licensed and units sold
5 mounted on a motor vehicle required to be licensed if the
6 selling price of the tender is separately stated.
7 Farm machinery and equipment shall include precision
8 farming equipment that is installed or purchased to be
9 installed on farm machinery and equipment including, but not
10 limited to, tractors, harvesters, sprayers, planters,
11 seeders, or spreaders. Precision farming equipment includes,
12 but is not limited to, soil testing sensors, computers,
13 monitors, software, global positioning and mapping systems,
14 and other such equipment.
15 Farm machinery and equipment also includes computers,
16 sensors, software, and related equipment used primarily in
17 the computer-assisted operation of production agriculture
18 facilities, equipment, and activities such as, but not
19 limited to, the collection, monitoring, and correlation of
20 animal and crop data for the purpose of formulating animal
21 diets and agricultural chemicals. This item (7) is exempt
22 from the provisions of Section 3-75.
23 (8) Fuel and petroleum products sold to or used by an
24 air common carrier, certified by the carrier to be used for
25 consumption, shipment, or storage in the conduct of its
26 business as an air common carrier, for a flight destined for
27 or returning from a location or locations outside the United
28 States without regard to previous or subsequent domestic
29 stopovers.
30 (9) Proceeds of mandatory service charges separately
31 stated on customers' bills for the purchase and consumption
32 of food and beverages acquired as an incident to the purchase
33 of a service from a serviceman, to the extent that the
34 proceeds of the service charge are in fact turned over as
-13- LRB9112250SMdvA
1 tips or as a substitute for tips to the employees who
2 participate directly in preparing, serving, hosting or
3 cleaning up the food or beverage function with respect to
4 which the service charge is 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) Proceeds from the sale of photoprocessing machinery
15 and equipment, including repair and replacement parts, both
16 new and used, including that manufactured on special order,
17 certified by the purchaser to be used primarily for
18 photoprocessing, and including photoprocessing machinery and
19 equipment purchased 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) Semen used for artificial insemination of livestock
26 for direct agricultural production.
27 (14) Horses, or interests in horses, registered with and
28 meeting the requirements of any of the Arabian Horse Club
29 Registry of America, Appaloosa Horse Club, American Quarter
30 Horse Association, United States Trotting Association, or
31 Jockey Club, as appropriate, used for purposes of breeding or
32 racing for prizes.
33 (15) Computers and communications equipment utilized for
34 any hospital purpose and equipment used in the diagnosis,
-14- LRB9112250SMdvA
1 analysis, or treatment of hospital patients purchased by a
2 lessor who leases the equipment, under a lease of one year or
3 longer executed or in effect at the time the lessor would
4 otherwise be subject to the tax imposed by this Act, to a
5 hospital that has been issued an active tax exemption
6 identification number by the Department under Section 1g of
7 the Retailers' Occupation Tax Act. If the equipment is leased
8 in a manner that does not qualify for this exemption or is
9 used in any other non-exempt manner, the lessor shall be
10 liable for the tax imposed under this Act or the Use Tax Act,
11 as the case may be, based on the fair market value of the
12 property at the time the non-qualifying use occurs. No
13 lessor shall collect or attempt to collect an amount (however
14 designated) that purports to reimburse that lessor for the
15 tax imposed by this Act or the Use Tax Act, as the case may
16 be, if the tax has not been paid by the lessor. If a lessor
17 improperly collects any such amount from the lessee, the
18 lessee shall have a legal right to claim a refund of that
19 amount from the lessor. If, however, that amount is not
20 refunded to the lessee for any reason, the lessor is liable
21 to pay that amount to the Department.
22 (16) Personal property purchased by a lessor who leases
23 the property, under a lease of one year or longer executed or
24 in effect at the time the lessor would otherwise be subject
25 to the tax imposed by this Act, to a governmental body that
26 has been issued an active tax exemption identification number
27 by the Department under Section 1g of the Retailers'
28 Occupation Tax Act. If the property is leased in a manner
29 that does not qualify for this exemption or is used in any
30 other non-exempt manner, the lessor shall be liable for the
31 tax imposed under this Act or the Use Tax Act, as the case
32 may be, based on the fair market value of the property at the
33 time the non-qualifying use occurs. No lessor shall collect
34 or attempt to collect an amount (however designated) that
-15- LRB9112250SMdvA
1 purports to reimburse that lessor for the tax imposed by this
2 Act or the Use Tax Act, as the case may be, if the tax has
3 not been paid by the lessor. If a lessor improperly collects
4 any such amount from the lessee, the lessee shall have a
5 legal right to claim a refund of that amount from the lessor.
6 If, however, that amount is not refunded to the lessee for
7 any reason, the lessor is liable to pay that amount to the
8 Department.
9 (17) 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 donated
12 for disaster relief to be used in a State or federally
13 declared disaster area in Illinois or bordering Illinois by a
14 manufacturer or retailer that is registered in this State to
15 a corporation, society, association, foundation, or
16 institution that has been issued a sales tax exemption
17 identification number by the Department that assists victims
18 of the disaster who reside within the declared disaster area.
19 (18) 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 used in
22 the performance of infrastructure repairs in this State,
23 including but not limited to municipal roads and streets,
24 access roads, bridges, sidewalks, waste disposal systems,
25 water and sewer line extensions, water distribution and
26 purification facilities, storm water drainage and retention
27 facilities, and sewage treatment facilities, resulting from a
28 State or federally declared disaster in Illinois or bordering
29 Illinois when such repairs are initiated on facilities
30 located in the declared disaster area within 6 months after
31 the disaster.
32 (19) Beginning July 1, 1999, game or game birds
33 purchased at a "game breeding and hunting preserve area" or
34 an "exotic game hunting area" as those terms are used in the
-16- LRB9112250SMdvA
1 Wildlife Code or at a hunting enclosure approved through
2 rules adopted by the Department of Natural Resources. This
3 paragraph is exempt from the provisions of Section 3-75.
4 (20) (19) A motor vehicle, as that term is defined in
5 Section 1-146 of the Illinois Vehicle Code, that is donated
6 to a corporation, limited liability company, society,
7 association, foundation, or institution that is determined by
8 the Department to be organized and operated exclusively for
9 educational purposes. For purposes of this exemption, "a
10 corporation, limited liability company, society, association,
11 foundation, or institution organized and operated exclusively
12 for educational purposes" means all tax-supported public
13 schools, private schools that offer systematic instruction in
14 useful branches of learning by methods common to public
15 schools and that compare favorably in their scope and
16 intensity with the course of study presented in tax-supported
17 schools, and vocational or technical schools or institutes
18 organized and operated exclusively to provide a course of
19 study of not less than 6 weeks duration and designed to
20 prepare individuals to follow a trade or to pursue a manual,
21 technical, mechanical, industrial, business, or commercial
22 occupation.
23 (21) (20) Beginning January 1, 2000, personal property,
24 including food, purchased through fundraising events for the
25 benefit of a public or private elementary or secondary
26 school, a group of those schools, or one or more school
27 districts if the events are sponsored by an entity recognized
28 by the school district that consists primarily of volunteers
29 and includes parents and teachers of the school children.
30 This paragraph does not apply to fundraising events (i) for
31 the benefit of private home instruction or (ii) for which the
32 fundraising entity purchases the personal property sold at
33 the events from another individual or entity that sold the
34 property for the purpose of resale by the fundraising entity
-17- LRB9112250SMdvA
1 and that profits from the sale to the fundraising entity.
2 This paragraph is exempt from the provisions of Section 3-75.
3 (22) (19) Beginning January 1, 2000, new or used
4 automatic vending machines that prepare and serve hot food
5 and beverages, including coffee, soup, and other items, and
6 replacement parts for these machines. This paragraph is
7 exempt from the provisions of Section 3-75.
8 (23) For taxable years through 2003, personal property
9 purchased in a transaction conducted over the Internet.
10 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
11 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
12 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
13 eff. 8-20-99; revised 9-29-99.)
14 Section 20. The Service Occupation Tax Act is amended by
15 changing Section 3-5 as follows:
16 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
17 Sec. 3-5. Exemptions. The following tangible personal
18 property is exempt from the tax imposed by this Act:
19 (1) Personal property sold by a corporation, society,
20 association, foundation, institution, or organization, other
21 than a limited liability company, that is organized and
22 operated as a not-for-profit service enterprise for the
23 benefit of persons 65 years of age or older if the personal
24 property was not purchased by the enterprise for the purpose
25 of resale by the enterprise.
26 (2) Personal property purchased by a not-for-profit
27 Illinois county fair association for use in conducting,
28 operating, or promoting the county fair.
29 (3) Personal property purchased by any not-for-profit
30 arts or cultural organization that establishes, by proof
31 required by the Department by rule, that it has received an
32 exemption under Section 501(c)(3) of the Internal Revenue
-18- LRB9112250SMdvA
1 Code and that is organized and operated for the presentation
2 or support of arts or cultural programming, activities, or
3 services. These organizations include, but are not limited
4 to, music and dramatic arts organizations such as symphony
5 orchestras and theatrical groups, arts and cultural service
6 organizations, local arts councils, visual arts
7 organizations, and media arts organizations.
8 (4) Legal tender, currency, medallions, or gold or
9 silver coinage issued by the State of Illinois, the
10 government of the United States of America, or the government
11 of any foreign country, and bullion.
12 (5) Graphic arts machinery and equipment, including
13 repair and replacement parts, both new and used, and
14 including that manufactured on special order or purchased for
15 lease, certified by the purchaser to be used primarily for
16 graphic arts production.
17 (6) Personal property sold by a teacher-sponsored
18 student organization affiliated with an elementary or
19 secondary school located in Illinois.
20 (7) Farm machinery and equipment, both new and used,
21 including that manufactured on special order, certified by
22 the purchaser to be used primarily for production agriculture
23 or State or federal agricultural programs, including
24 individual replacement parts for the machinery and equipment,
25 including machinery and equipment purchased for lease, and
26 including implements of husbandry defined in Section 1-130 of
27 the Illinois Vehicle Code, farm machinery and agricultural
28 chemical and fertilizer spreaders, and nurse wagons required
29 to be registered under Section 3-809 of the Illinois Vehicle
30 Code, but excluding other motor vehicles required to be
31 registered under the Illinois Vehicle Code. Horticultural
32 polyhouses or hoop houses used for propagating, growing, or
33 overwintering plants shall be considered farm machinery and
34 equipment under this item (7). Agricultural chemical tender
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1 tanks and dry boxes shall include units sold separately from
2 a motor vehicle required to be licensed and units sold
3 mounted on a motor vehicle required to be licensed if the
4 selling price of the tender is separately stated.
5 Farm machinery and equipment shall include precision
6 farming equipment that is installed or purchased to be
7 installed on farm machinery and equipment including, but not
8 limited to, tractors, harvesters, sprayers, planters,
9 seeders, or spreaders. Precision farming equipment includes,
10 but is not limited to, soil testing sensors, computers,
11 monitors, software, global positioning and mapping systems,
12 and other such equipment.
13 Farm machinery and equipment also includes computers,
14 sensors, software, and related equipment used primarily in
15 the computer-assisted operation of production agriculture
16 facilities, equipment, and activities such as, but not
17 limited to, the collection, monitoring, and correlation of
18 animal and crop data for the purpose of formulating animal
19 diets and agricultural chemicals. This item (7) is exempt
20 from the provisions of Section 3-55.
21 (8) Fuel and petroleum products sold to or used by an
22 air common carrier, certified by the carrier to be used for
23 consumption, shipment, or storage in the conduct of its
24 business as an air common carrier, for a flight destined for
25 or returning from a location or locations outside the United
26 States without regard to previous or subsequent domestic
27 stopovers.
28 (9) Proceeds of mandatory service charges separately
29 stated on customers' bills for the purchase and consumption
30 of food and beverages, to the extent that the proceeds of the
31 service charge are in fact turned over as tips or as a
32 substitute for tips to the employees who participate directly
33 in preparing, serving, hosting or cleaning up the food or
34 beverage function with respect to which the service charge is
-20- LRB9112250SMdvA
1 imposed.
2 (10) Oil field exploration, drilling, and production
3 equipment, including (i) rigs and parts of rigs, rotary rigs,
4 cable tool rigs, and workover rigs, (ii) pipe and tubular
5 goods, including casing and drill strings, (iii) pumps and
6 pump-jack units, (iv) storage tanks and flow lines, (v) any
7 individual replacement part for oil field exploration,
8 drilling, and production equipment, and (vi) machinery and
9 equipment purchased for lease; but excluding motor vehicles
10 required to be registered under the Illinois Vehicle Code.
11 (11) Photoprocessing machinery and equipment, including
12 repair and replacement parts, both new and used, including
13 that manufactured on special order, certified by the
14 purchaser to be used primarily for photoprocessing, and
15 including photoprocessing machinery and equipment purchased
16 for lease.
17 (12) Coal exploration, mining, offhighway hauling,
18 processing, maintenance, and reclamation equipment, including
19 replacement parts and equipment, and including equipment
20 purchased for lease, but excluding motor vehicles required to
21 be registered under the Illinois Vehicle Code.
22 (13) Food for human consumption that is to be consumed
23 off the premises where it is sold (other than alcoholic
24 beverages, soft drinks and food that has been prepared for
25 immediate consumption) and prescription and non-prescription
26 medicines, drugs, medical appliances, and insulin, urine
27 testing materials, syringes, and needles used by diabetics,
28 for human use, when purchased for use by a person receiving
29 medical assistance under Article 5 of the Illinois Public Aid
30 Code who resides in a licensed long-term care facility, as
31 defined in the Nursing Home Care Act.
32 (14) Semen used for artificial insemination of livestock
33 for direct agricultural production.
34 (15) 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 (16) 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 the Retailers' Occupation Tax Act.
14 (17) 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 the Retailers'
19 Occupation Tax Act.
20 (18) Beginning with taxable years ending on or after
21 December 31, 1995 and ending with taxable years ending on or
22 before December 31, 2004, personal property that is donated
23 for disaster relief to be used in a State or federally
24 declared disaster area in Illinois or bordering Illinois by a
25 manufacturer or retailer that is registered in this State to
26 a corporation, society, association, foundation, or
27 institution that has been issued a sales tax exemption
28 identification number by the Department that assists victims
29 of the disaster who reside within the declared disaster area.
30 (19) Beginning with taxable years ending on or after
31 December 31, 1995 and ending with taxable years ending on or
32 before December 31, 2004, personal property that is used in
33 the performance of infrastructure repairs in this State,
34 including but not limited to municipal roads and streets,
-22- LRB9112250SMdvA
1 access roads, bridges, sidewalks, waste disposal systems,
2 water and sewer line extensions, water distribution and
3 purification facilities, storm water drainage and retention
4 facilities, and sewage treatment facilities, resulting from a
5 State or federally declared disaster in Illinois or bordering
6 Illinois when such repairs are initiated on facilities
7 located in the declared disaster area within 6 months after
8 the disaster.
9 (20) Beginning July 1, 1999, game or game birds sold at
10 a "game breeding and hunting preserve area" or an "exotic
11 game hunting area" as those terms are used in the Wildlife
12 Code or at a hunting enclosure approved through rules adopted
13 by the Department of Natural Resources. This paragraph is
14 exempt from the provisions of Section 3-55.
15 (21) (20) A motor vehicle, as that term is defined in
16 Section 1-146 of the Illinois Vehicle Code, that is donated
17 to a corporation, limited liability company, society,
18 association, foundation, or institution that is determined by
19 the Department to be organized and operated exclusively for
20 educational purposes. For purposes of this exemption, "a
21 corporation, limited liability company, society, association,
22 foundation, or institution organized and operated exclusively
23 for educational purposes" means all tax-supported public
24 schools, private schools that offer systematic instruction in
25 useful branches of learning by methods common to public
26 schools and that compare favorably in their scope and
27 intensity with the course of study presented in tax-supported
28 schools, and vocational or technical schools or institutes
29 organized and operated exclusively to provide a course of
30 study of not less than 6 weeks duration and designed to
31 prepare individuals to follow a trade or to pursue a manual,
32 technical, mechanical, industrial, business, or commercial
33 occupation.
34 (22) (21) Beginning January 1, 2000, personal property,
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1 including food, purchased through fundraising events for the
2 benefit of a public or private elementary or secondary
3 school, a group of those schools, or one or more school
4 districts if the events are sponsored by an entity recognized
5 by the school district that consists primarily of volunteers
6 and includes parents and teachers of the school children.
7 This paragraph does not apply to fundraising events (i) for
8 the benefit of private home instruction or (ii) for which the
9 fundraising entity purchases the personal property sold at
10 the events from another individual or entity that sold the
11 property for the purpose of resale by the fundraising entity
12 and that profits from the sale to the fundraising entity.
13 This paragraph is exempt from the provisions of Section 3-55.
14 (23) (20) Beginning January 1, 2000, new or used
15 automatic vending machines that prepare and serve hot food
16 and beverages, including coffee, soup, and other items, and
17 replacement parts for these machines. This paragraph is
18 exempt from the provisions of Section 3-55.
19 (24) For taxable years through 2003, personal property
20 purchased in a transaction conducted over the Internet.
21 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
22 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
23 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637,
24 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)
25 Section 25. The Retailers' Occupation Tax Act is amended
26 by changing Section 2-5 as follows:
27 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
28 Sec. 2-5. Exemptions. Gross receipts from proceeds from
29 the sale of the following tangible personal property are
30 exempt from the tax imposed by this Act:
31 (1) Farm chemicals.
32 (2) Farm machinery and equipment, both new and used,
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1 including that manufactured on special order, certified by
2 the purchaser to be used primarily for production agriculture
3 or State or federal agricultural programs, including
4 individual replacement parts for the machinery and equipment,
5 including machinery and equipment purchased for lease, and
6 including implements of husbandry defined in Section 1-130 of
7 the Illinois Vehicle Code, farm machinery and agricultural
8 chemical and fertilizer spreaders, and nurse wagons required
9 to be registered under Section 3-809 of the Illinois Vehicle
10 Code, but excluding other motor vehicles required to be
11 registered under the Illinois Vehicle Code. Horticultural
12 polyhouses or hoop houses used for propagating, growing, or
13 overwintering plants shall be considered farm machinery and
14 equipment under this item (2). Agricultural chemical tender
15 tanks and dry boxes shall include units sold separately from
16 a motor vehicle required to be licensed and units sold
17 mounted on a motor vehicle required to be licensed, if the
18 selling price of the tender is separately stated.
19 Farm machinery and equipment shall include precision
20 farming equipment that is installed or purchased to be
21 installed on farm machinery and equipment including, but not
22 limited to, tractors, harvesters, sprayers, planters,
23 seeders, or spreaders. Precision farming equipment includes,
24 but is not limited to, soil testing sensors, computers,
25 monitors, software, global positioning and mapping systems,
26 and other such equipment.
27 Farm machinery and equipment also includes computers,
28 sensors, software, and related equipment used primarily in
29 the computer-assisted operation of production agriculture
30 facilities, equipment, and activities such as, but not
31 limited to, the collection, monitoring, and correlation of
32 animal and crop data for the purpose of formulating animal
33 diets and agricultural chemicals. This item (7) is exempt
34 from the provisions of Section 2-70.
-25- LRB9112250SMdvA
1 (3) Distillation machinery and equipment, sold as a unit
2 or kit, assembled or installed by the retailer, certified by
3 the user to be used only for the production of ethyl alcohol
4 that will be used for consumption as motor fuel or as a
5 component of motor fuel for the personal use of the user, and
6 not subject to sale or resale.
7 (4) Graphic arts machinery and equipment, including
8 repair and replacement parts, both new and used, and
9 including that manufactured on special order or purchased for
10 lease, certified by the purchaser to be used primarily for
11 graphic arts production.
12 (5) A motor vehicle of the first division, a motor
13 vehicle of the second division that is a self-contained motor
14 vehicle designed or permanently converted to provide living
15 quarters for recreational, camping, or travel use, with
16 direct walk through access to the living quarters from the
17 driver's seat, or a motor vehicle of the second division that
18 is of the van configuration designed for the transportation
19 of not less than 7 nor more than 16 passengers, as defined in
20 Section 1-146 of the Illinois Vehicle Code, that is used for
21 automobile renting, as defined in the Automobile Renting
22 Occupation and Use Tax Act.
23 (6) Personal property sold by a teacher-sponsored
24 student organization affiliated with an elementary or
25 secondary school located in Illinois.
26 (7) Proceeds of that portion of the selling price of a
27 passenger car the sale of which is subject to the Replacement
28 Vehicle Tax.
29 (8) Personal property sold to an Illinois county fair
30 association for use in conducting, operating, or promoting
31 the county fair.
32 (9) Personal property sold to a not-for-profit arts or
33 cultural organization that establishes, by proof required by
34 the Department by rule, that it has received an exemption
-26- LRB9112250SMdvA
1 under Section 501(c)(3) of the Internal Revenue Code and that
2 is organized and operated for the presentation or support of
3 arts or cultural programming, activities, or services. These
4 organizations include, but are not limited to, music and
5 dramatic arts organizations such as symphony orchestras and
6 theatrical groups, arts and cultural service organizations,
7 local arts councils, visual arts organizations, and media
8 arts organizations.
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
-27- LRB9112250SMdvA
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
-29- LRB9112250SMdvA
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
-30- LRB9112250SMdvA
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
-31- LRB9112250SMdvA
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, game or game birds sold at
5 a "game breeding and hunting preserve area" or an "exotic
6 game hunting area" as those terms are used in the Wildlife
7 Code or at a hunting enclosure approved through rules adopted
8 by the Department of Natural Resources. This paragraph is
9 exempt from the provisions of Section 2-70.
10 (33) (32) A motor vehicle, as that term is defined in
11 Section 1-146 of the Illinois Vehicle Code, that is donated
12 to a corporation, limited liability company, society,
13 association, foundation, or institution that is determined by
14 the Department to be organized and operated exclusively for
15 educational purposes. For purposes of this exemption, "a
16 corporation, limited liability company, society, association,
17 foundation, or institution organized and operated exclusively
18 for educational purposes" means all tax-supported public
19 schools, private schools that offer systematic instruction in
20 useful branches of learning by methods common to public
21 schools and that compare favorably in their scope and
22 intensity with the course of study presented in tax-supported
23 schools, and vocational or technical schools or institutes
24 organized and operated exclusively to provide a course of
25 study of not less than 6 weeks duration and designed to
26 prepare individuals to follow a trade or to pursue a manual,
27 technical, mechanical, industrial, business, or commercial
28 occupation.
29 (34) (33) Beginning January 1, 2000, personal property,
30 including food, purchased through fundraising events for the
31 benefit of a public or private elementary or secondary
32 school, a group of those schools, or one or more school
33 districts if the events are sponsored by an entity recognized
34 by the school district that consists primarily of volunteers
-32- LRB9112250SMdvA
1 and includes parents and teachers of the school children.
2 This paragraph does not apply to fundraising events (i) for
3 the benefit of private home instruction or (ii) for which the
4 fundraising entity purchases the personal property sold at
5 the events from another individual or entity that sold the
6 property for the purpose of resale by the fundraising entity
7 and that profits from the sale to the fundraising entity.
8 This paragraph is exempt from the provisions of Section 2-70.
9 (35) (32) Beginning January 1, 2000, new or used
10 automatic vending machines that prepare and serve hot food
11 and beverages, including coffee, soup, and other items, and
12 replacement parts for these machines. This paragraph is
13 exempt from the provisions of Section 2-70.
14 (36) For taxable years through 2003, personal property
15 purchased in a transaction conducted over the Internet.
16 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98;
17 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff.
18 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533,
19 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99;
20 revised 9-28-99.)
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.