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91_SB0417sam001
LRB9102412PTpkam01
1 AMENDMENT TO SENATE BILL 417
2 AMENDMENT NO. . Amend Senate Bill 417 by replacing
3 everything after the enacting clause with the following:
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
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1 Revenue Code and that is organized and operated for the
2 presentation of live public performances of musical or
3 theatrical works on a regular basis.
4 (4) Personal property purchased by a governmental body,
5 by a corporation, society, association, foundation, or
6 institution organized and operated exclusively for
7 charitable, religious, or educational purposes, or by a
8 not-for-profit corporation, society, association, foundation,
9 institution, or organization that has no compensated officers
10 or employees and that is organized and operated primarily for
11 the recreation of persons 55 years of age or older. A limited
12 liability company may qualify for the exemption under this
13 paragraph only if the limited liability company is organized
14 and operated exclusively for educational purposes. On and
15 after July 1, 1987, however, no entity otherwise eligible for
16 this exemption shall make tax-free purchases unless it has an
17 active exemption identification number issued by the
18 Department.
19 (5) A passenger car that is a replacement vehicle to the
20 extent that the purchase price of the car is subject to the
21 Replacement Vehicle Tax.
22 (6) Graphic arts machinery and equipment, including
23 repair and replacement parts, both new and used, and
24 including that manufactured on special order, certified by
25 the purchaser to be used primarily for graphic arts
26 production, and including machinery and equipment purchased
27 for lease.
28 (7) Farm chemicals.
29 (8) Legal tender, currency, medallions, or gold or
30 silver coinage issued by the State of Illinois, the
31 government of the United States of America, or the government
32 of any foreign country, and bullion.
33 (9) Personal property purchased from a teacher-sponsored
34 student organization affiliated with an elementary or
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1 secondary school located in Illinois.
2 (10) A motor vehicle of the first division, a motor
3 vehicle of the second division that is a self-contained motor
4 vehicle designed or permanently converted to provide living
5 quarters for recreational, camping, or travel use, with
6 direct walk through to the living quarters from the driver's
7 seat, or a motor vehicle of the second division that is of
8 the van configuration designed for the transportation of not
9 less than 7 nor more than 16 passengers, as defined in
10 Section 1-146 of the Illinois Vehicle Code, that is used for
11 automobile renting, as defined in the Automobile Renting
12 Occupation and Use Tax Act.
13 (11) Farm machinery and equipment, both new and used,
14 including that manufactured on special order, certified by
15 the purchaser to be used primarily for production agriculture
16 or State or federal agricultural programs, including
17 individual replacement parts for the machinery and equipment,
18 including machinery and equipment purchased for lease, and
19 including implements of husbandry defined in Section 1-130 of
20 the Illinois Vehicle Code, farm machinery and agricultural
21 chemical and fertilizer spreaders, and nurse wagons required
22 to be registered under Section 3-809 of the Illinois Vehicle
23 Code, but excluding other motor vehicles required to be
24 registered under the Illinois Vehicle Code. Horticultural
25 polyhouses or hoop houses used for propagating, growing, or
26 overwintering plants shall be considered farm machinery and
27 equipment under this item (11). Agricultural chemical tender
28 tanks and dry boxes shall include units sold separately from
29 a motor vehicle required to be licensed and units sold
30 mounted on a motor vehicle required to be licensed if the
31 selling price of the tender is separately stated.
32 Farm machinery and equipment shall include precision
33 farming equipment that is installed or purchased to be
34 installed on farm machinery and equipment including, but not
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1 limited to, tractors, harvesters, sprayers, planters,
2 seeders, or spreaders. Precision farming equipment includes,
3 but is not limited to, soil testing sensors, computers,
4 monitors, software, global positioning and mapping systems,
5 and other such equipment.
6 Farm machinery and equipment also includes computers,
7 sensors, software, and related equipment used primarily in
8 the computer-assisted operation of production agriculture
9 facilities, equipment, and activities such as, but not
10 limited to, the collection, monitoring, and correlation of
11 animal and crop data for the purpose of formulating animal
12 diets and agricultural chemicals. This item (11) is exempt
13 from the provisions of Section 3-90.
14 (12) Fuel and petroleum products sold to or used by an
15 air common carrier, certified by the carrier to be used for
16 consumption, shipment, or storage in the conduct of its
17 business as an air common carrier, for a flight destined for
18 or returning from a location or locations outside the United
19 States without regard to previous or subsequent domestic
20 stopovers.
21 (13) Proceeds of mandatory service charges separately
22 stated on customers' bills for the purchase and consumption
23 of food and beverages purchased at retail from a retailer, to
24 the extent that the proceeds of the service charge are in
25 fact turned over as tips or as a substitute for tips to the
26 employees who participate directly in preparing, serving,
27 hosting or cleaning up the food or beverage function with
28 respect to which the service charge is imposed.
29 (14) Oil field exploration, drilling, and production
30 equipment, including (i) rigs and parts of rigs, rotary rigs,
31 cable tool rigs, and workover rigs, (ii) pipe and tubular
32 goods, including casing and drill strings, (iii) pumps and
33 pump-jack units, (iv) storage tanks and flow lines, (v) any
34 individual replacement part for oil field exploration,
-5- LRB9102412PTpkam01
1 drilling, and production equipment, and (vi) machinery and
2 equipment purchased for lease; but excluding motor vehicles
3 required to be registered under the Illinois Vehicle Code.
4 (15) Photoprocessing machinery and equipment, including
5 repair and replacement parts, both new and used, including
6 that manufactured on special order, certified by the
7 purchaser to be used primarily for photoprocessing, and
8 including photoprocessing machinery and equipment purchased
9 for lease.
10 (16) Coal exploration, mining, offhighway hauling,
11 processing, maintenance, and reclamation equipment, including
12 replacement parts and equipment, and including equipment
13 purchased for lease, but excluding motor vehicles required to
14 be registered under the Illinois Vehicle Code.
15 (17) Distillation machinery and equipment, sold as a
16 unit or kit, assembled or installed by the retailer,
17 certified by the user to be used only for the production of
18 ethyl alcohol that will be used for consumption as motor fuel
19 or as a component of motor fuel for the personal use of the
20 user, and not subject to sale or resale.
21 (18) Manufacturing and assembling machinery and
22 equipment used primarily in the process of manufacturing or
23 assembling tangible personal property for wholesale or retail
24 sale or lease, whether that sale or lease is made directly by
25 the manufacturer or by some other person, whether the
26 materials used in the process are owned by the manufacturer
27 or some other person, or whether that sale or lease is made
28 apart from or as an incident to the seller's engaging in the
29 service occupation of producing machines, tools, dies, jigs,
30 patterns, gauges, or other similar items of no commercial
31 value on special order for a particular purchaser.
32 (19) Personal property delivered to a purchaser or
33 purchaser's donee inside Illinois when the purchase order for
34 that personal property was received by a florist located
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1 outside Illinois who has a florist located inside Illinois
2 deliver the personal property.
3 (20) Semen used for artificial insemination of livestock
4 for direct agricultural production.
5 (21) Horses, or interests in horses, registered with and
6 meeting the requirements of any of the Arabian Horse Club
7 Registry of America, Appaloosa Horse Club, American Quarter
8 Horse Association, United States Trotting Association, or
9 Jockey Club, as appropriate, used for purposes of breeding or
10 racing for prizes.
11 (22) Computers and communications equipment utilized for
12 any hospital purpose and equipment used in the diagnosis,
13 analysis, or treatment of hospital patients purchased by a
14 lessor who leases the equipment, under a lease of one year or
15 longer executed or in effect at the time the lessor would
16 otherwise be subject to the tax imposed by this Act, to a
17 hospital that has been issued an active tax exemption
18 identification number by the Department under Section 1g of
19 the Retailers' Occupation Tax Act. If the equipment is
20 leased in a manner that does not qualify for this exemption
21 or is used in any other non-exempt manner, the lessor shall
22 be liable for the tax imposed under this Act or the Service
23 Use Tax Act, as the case may be, based on the fair market
24 value of the property at the time the non-qualifying use
25 occurs. No lessor shall collect or attempt to collect an
26 amount (however designated) that purports to reimburse that
27 lessor for the tax imposed by this Act or the Service Use Tax
28 Act, as the case may be, if the tax has not been paid by the
29 lessor. If a lessor improperly collects any such amount from
30 the lessee, the lessee shall have a legal right to claim a
31 refund of that amount from the lessor. If, however, that
32 amount is not refunded to the lessee for any reason, the
33 lessor is liable to pay that amount to the Department.
34 (23) Personal property purchased by a lessor who leases
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1 the property, under a lease of one year or longer executed
2 or in effect at the time the lessor would otherwise be
3 subject to the tax imposed by this Act, to a governmental
4 body that has been issued an active sales tax exemption
5 identification number by the Department under Section 1g of
6 the Retailers' Occupation Tax Act. If the property is leased
7 in a manner that does not qualify for this exemption or used
8 in any other non-exempt manner, the lessor shall be liable
9 for the tax imposed under this Act or the Service Use Tax
10 Act, as the case may be, based on the fair market value of
11 the property at the time the non-qualifying use occurs. No
12 lessor shall collect or attempt to collect an amount (however
13 designated) that purports to reimburse that lessor for the
14 tax imposed by this Act or the Service Use Tax Act, as the
15 case may be, if the tax has not been paid by the lessor. If
16 a lessor improperly collects any such amount from the lessee,
17 the lessee shall have a legal right to claim a refund of that
18 amount from the lessor. If, however, that amount is not
19 refunded to the lessee for any reason, the lessor is liable
20 to pay that amount to the Department.
21 (24) 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 donated
24 for disaster relief to be used in a State or federally
25 declared disaster area in Illinois or bordering Illinois by a
26 manufacturer or retailer that is registered in this State to
27 a corporation, society, association, foundation, or
28 institution that has been issued a sales tax exemption
29 identification number by the Department that assists victims
30 of the disaster who reside within the declared disaster area.
31 (25) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is used in
34 the performance of infrastructure repairs in this State,
-8- LRB9102412PTpkam01
1 including but not limited to municipal roads and streets,
2 access roads, bridges, sidewalks, waste disposal systems,
3 water and sewer line extensions, water distribution and
4 purification facilities, storm water drainage and retention
5 facilities, and sewage treatment facilities, resulting from a
6 State or federally declared disaster in Illinois or bordering
7 Illinois when such repairs are initiated on facilities
8 located in the declared disaster area within 6 months after
9 the disaster.
10 (26) Beginning January 1, 2000, new or used automatic
11 vending machines that prepare and serve hot food and
12 beverages, including coffee, soup, and other items, and
13 replacement parts for these machines. This paragraph is
14 exempt from the provisions of Section 3-90.
15 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
16 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
17 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
18 eff. 12-12-97; 90-605, eff. 6-30-98.)
19 Section 10. The Service Use Tax Act is amended by
20 changing Section 3-5 as follows:
21 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
22 Sec. 3-5. Exemptions. Use of the following tangible
23 personal property is exempt from the tax imposed by this Act:
24 (1) Personal property purchased from a corporation,
25 society, association, foundation, institution, or
26 organization, other than a limited liability company, that is
27 organized and operated as a not-for-profit service enterprise
28 for the benefit of persons 65 years of age or older if the
29 personal property was not purchased by the enterprise for the
30 purpose of resale by the enterprise.
31 (2) Personal property purchased by a non-profit Illinois
32 county fair association for use in conducting, operating, or
-9- LRB9102412PTpkam01
1 promoting the county fair.
2 (3) Personal property purchased by a not-for-profit
3 music or dramatic arts organization that establishes, by
4 proof required by the Department by rule, that it has
5 received an exemption under Section 501(c)(3) of the Internal
6 Revenue Code and that is organized and operated for the
7 presentation of live public performances of musical or
8 theatrical works on a regular basis.
9 (4) Legal tender, currency, medallions, or gold or
10 silver coinage issued by the State of Illinois, the
11 government of the United States of America, or the government
12 of any foreign country, and bullion.
13 (5) Graphic arts machinery and equipment, including
14 repair and replacement parts, both new and used, and
15 including that manufactured on special order or purchased for
16 lease, certified by the purchaser to be used primarily for
17 graphic arts production.
18 (6) Personal property purchased from a teacher-sponsored
19 student organization affiliated with an elementary or
20 secondary school located in Illinois.
21 (7) Farm machinery and equipment, both new and used,
22 including that manufactured on special order, certified by
23 the purchaser to be used primarily for production agriculture
24 or State or federal agricultural programs, including
25 individual replacement parts for the machinery and equipment,
26 including machinery and equipment purchased for lease, and
27 including implements of husbandry defined in Section 1-130 of
28 the Illinois Vehicle Code, farm machinery and agricultural
29 chemical and fertilizer spreaders, and nurse wagons required
30 to be registered under Section 3-809 of the Illinois Vehicle
31 Code, but excluding other motor vehicles required to be
32 registered under the Illinois Vehicle Code. Horticultural
33 polyhouses or hoop houses used for propagating, growing, or
34 overwintering plants shall be considered farm machinery and
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1 equipment under this item (7). Agricultural chemical tender
2 tanks and dry boxes shall include units sold separately from
3 a motor vehicle required to be licensed and units sold
4 mounted on a motor vehicle required to be licensed if the
5 selling price of the tender is separately stated.
6 Farm machinery and equipment shall include precision
7 farming equipment that is installed or purchased to be
8 installed on farm machinery and equipment including, but not
9 limited to, tractors, harvesters, sprayers, planters,
10 seeders, or spreaders. Precision farming equipment includes,
11 but is not limited to, soil testing sensors, computers,
12 monitors, software, global positioning and mapping systems,
13 and other such equipment.
14 Farm machinery and equipment also includes computers,
15 sensors, software, and related equipment used primarily in
16 the computer-assisted operation of production agriculture
17 facilities, equipment, and activities such as, but not
18 limited to, the collection, monitoring, and correlation of
19 animal and crop data for the purpose of formulating animal
20 diets and agricultural chemicals. This item (7) is exempt
21 from the provisions of Section 3-75.
22 (8) Fuel and petroleum products sold to or used by an
23 air common carrier, certified by the carrier to be used for
24 consumption, shipment, or storage in the conduct of its
25 business as an air common carrier, for a flight destined for
26 or returning from a location or locations outside the United
27 States without regard to previous or subsequent domestic
28 stopovers.
29 (9) Proceeds of mandatory service charges separately
30 stated on customers' bills for the purchase and consumption
31 of food and beverages acquired as an incident to the purchase
32 of a service from a serviceman, to the extent that the
33 proceeds of the service charge are in fact turned over as
34 tips or as a substitute for tips to the employees who
-11- LRB9102412PTpkam01
1 participate directly in preparing, serving, hosting or
2 cleaning up the food or beverage function with respect to
3 which the service charge is imposed.
4 (10) Oil field exploration, drilling, and production
5 equipment, including (i) rigs and parts of rigs, rotary rigs,
6 cable tool rigs, and workover rigs, (ii) pipe and tubular
7 goods, including casing and drill strings, (iii) pumps and
8 pump-jack units, (iv) storage tanks and flow lines, (v) any
9 individual replacement part for oil field exploration,
10 drilling, and production equipment, and (vi) machinery and
11 equipment purchased for lease; but excluding motor vehicles
12 required to be registered under the Illinois Vehicle Code.
13 (11) Proceeds from the sale of photoprocessing machinery
14 and equipment, including repair and replacement parts, both
15 new and used, including that manufactured on special order,
16 certified by the purchaser to be used primarily for
17 photoprocessing, and including photoprocessing machinery and
18 equipment purchased for lease.
19 (12) Coal exploration, mining, offhighway hauling,
20 processing, maintenance, and reclamation equipment, including
21 replacement parts and equipment, and including equipment
22 purchased for lease, but excluding motor vehicles required to
23 be registered under the Illinois Vehicle Code.
24 (13) Semen used for artificial insemination of livestock
25 for direct agricultural production.
26 (14) Horses, or interests in horses, registered with and
27 meeting the requirements of any of the Arabian Horse Club
28 Registry of America, Appaloosa Horse Club, American Quarter
29 Horse Association, United States Trotting Association, or
30 Jockey Club, as appropriate, used for purposes of breeding or
31 racing for prizes.
32 (15) Computers and communications equipment utilized for
33 any hospital purpose and equipment used in the diagnosis,
34 analysis, or treatment of hospital patients purchased by a
-12- LRB9102412PTpkam01
1 lessor who leases the equipment, under a lease of one year or
2 longer executed or in effect at the time the lessor would
3 otherwise be subject to the tax imposed by this Act, to a
4 hospital that has been issued an active tax exemption
5 identification number by the Department under Section 1g of
6 the Retailers' Occupation Tax Act. If the equipment is leased
7 in a manner that does not qualify for this exemption or is
8 used in any other non-exempt manner, the lessor shall be
9 liable for the tax imposed under this Act or the Use Tax Act,
10 as the case may be, based on the fair market value of the
11 property at the time the non-qualifying use occurs. No
12 lessor shall collect or attempt to collect an amount (however
13 designated) that purports to reimburse that lessor for the
14 tax imposed by this Act or the Use Tax Act, as the case may
15 be, if the tax has not been paid by the lessor. If a lessor
16 improperly collects any such amount from the lessee, the
17 lessee shall have a legal right to claim a refund of that
18 amount from the lessor. If, however, that amount is not
19 refunded to the lessee for any reason, the lessor is liable
20 to pay that amount to the Department.
21 (16) Personal property purchased by a lessor who leases
22 the property, under a lease of one year or longer executed or
23 in effect at the time the lessor would otherwise be subject
24 to the tax imposed by this Act, to a governmental body that
25 has been issued an active tax exemption identification number
26 by the Department under Section 1g of the Retailers'
27 Occupation Tax Act. If the property is leased in a manner
28 that does not qualify for this exemption or is used in any
29 other non-exempt manner, the lessor shall be liable for the
30 tax imposed under this Act or the Use Tax Act, as the case
31 may be, based on the fair market value of the property at the
32 time the non-qualifying use occurs. No lessor shall collect
33 or attempt to collect an amount (however designated) that
34 purports to reimburse that lessor for the tax imposed by this
-13- LRB9102412PTpkam01
1 Act or the Use Tax Act, as the case may be, if the tax has
2 not been paid by the lessor. If a lessor improperly collects
3 any such amount from the lessee, the lessee shall have a
4 legal right to claim a refund of that amount from the lessor.
5 If, however, that amount is not refunded to the lessee for
6 any reason, the lessor is liable to pay that amount to the
7 Department.
8 (17) Beginning with taxable years ending on or after
9 December 31, 1995 and ending with taxable years ending on or
10 before December 31, 2004, personal property that is donated
11 for disaster relief to be used in a State or federally
12 declared disaster area in Illinois or bordering Illinois by a
13 manufacturer or retailer that is registered in this State to
14 a corporation, society, association, foundation, or
15 institution that has been issued a sales tax exemption
16 identification number by the Department that assists victims
17 of the disaster who reside within the declared disaster area.
18 (18) Beginning with taxable years ending on or after
19 December 31, 1995 and ending with taxable years ending on or
20 before December 31, 2004, personal property that is used in
21 the performance of infrastructure repairs in this State,
22 including but not limited to municipal roads and streets,
23 access roads, bridges, sidewalks, waste disposal systems,
24 water and sewer line extensions, water distribution and
25 purification facilities, storm water drainage and retention
26 facilities, and sewage treatment facilities, resulting from a
27 State or federally declared disaster in Illinois or bordering
28 Illinois when such repairs are initiated on facilities
29 located in the declared disaster area within 6 months after
30 the disaster.
31 (19) Beginning January 1, 2000, new or used automatic
32 vending machines that prepare and serve hot food and
33 beverages, including coffee, soup, and other items, and
34 replacement parts for these machines. This paragraph is
-14- LRB9102412PTpkam01
1 exempt from the provisions of Section 3-75.
2 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
3 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
4 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
5 eff. 12-12-97; 90-605, eff. 6-30-98.)
6 Section 15. The Service Occupation Tax Act is amended by
7 changing Section 3-5 as follows:
8 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
9 Sec. 3-5. Exemptions. The following tangible personal
10 property is exempt from the tax imposed by this Act:
11 (1) Personal property sold by a corporation, society,
12 association, foundation, institution, or organization, other
13 than a limited liability company, that is organized and
14 operated as a not-for-profit service enterprise for the
15 benefit of persons 65 years of age or older if the personal
16 property was not purchased by the enterprise for the purpose
17 of resale by the enterprise.
18 (2) Personal property purchased by a not-for-profit
19 Illinois county fair association for use in conducting,
20 operating, or promoting the county fair.
21 (3) Personal property purchased by any not-for-profit
22 music or dramatic arts organization that establishes, by
23 proof required by the Department by rule, that it has
24 received an exemption under Section 501(c)(3) of the
25 Internal Revenue Code and that is organized and operated for
26 the presentation of live public performances of musical or
27 theatrical works on a regular basis.
28 (4) Legal tender, currency, medallions, or gold or
29 silver coinage issued by the State of Illinois, the
30 government of the United States of America, or the government
31 of any foreign country, and bullion.
32 (5) Graphic arts machinery and equipment, including
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1 repair and replacement parts, both new and used, and
2 including that manufactured on special order or purchased for
3 lease, certified by the purchaser to be used primarily for
4 graphic arts production.
5 (6) Personal property sold by a teacher-sponsored
6 student organization affiliated with an elementary or
7 secondary school located in Illinois.
8 (7) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (7). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
34 and other such equipment.
-16- LRB9102412PTpkam01
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 3-55 3-75.
9 (8) Fuel and petroleum products sold to or used by an
10 air common carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (9) Proceeds of mandatory service charges separately
17 stated on customers' bills for the purchase and consumption
18 of food and beverages, to the extent that the proceeds of the
19 service charge are in fact turned over as tips or as a
20 substitute for tips to the employees who participate directly
21 in preparing, serving, hosting or cleaning up the food or
22 beverage function with respect to which the service charge is
23 imposed.
24 (10) Oil field exploration, drilling, and production
25 equipment, including (i) rigs and parts of rigs, rotary rigs,
26 cable tool rigs, and workover rigs, (ii) pipe and tubular
27 goods, including casing and drill strings, (iii) pumps and
28 pump-jack units, (iv) storage tanks and flow lines, (v) any
29 individual replacement part for oil field exploration,
30 drilling, and production equipment, and (vi) machinery and
31 equipment purchased for lease; but excluding motor vehicles
32 required to be registered under the Illinois Vehicle Code.
33 (11) Photoprocessing machinery and equipment, including
34 repair and replacement parts, both new and used, including
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1 that manufactured on special order, certified by the
2 purchaser to be used primarily for photoprocessing, and
3 including photoprocessing machinery and equipment purchased
4 for lease.
5 (12) Coal exploration, mining, offhighway hauling,
6 processing, maintenance, and reclamation equipment, including
7 replacement parts and equipment, and including equipment
8 purchased for lease, but excluding motor vehicles required to
9 be registered under the Illinois Vehicle Code.
10 (13) Food for human consumption that is to be consumed
11 off the premises where it is sold (other than alcoholic
12 beverages, soft drinks and food that has been prepared for
13 immediate consumption) and prescription and non-prescription
14 medicines, drugs, medical appliances, and insulin, urine
15 testing materials, syringes, and needles used by diabetics,
16 for human use, when purchased for use by a person receiving
17 medical assistance under Article 5 of the Illinois Public Aid
18 Code who resides in a licensed long-term care facility, as
19 defined in the Nursing Home Care Act.
20 (14) Semen used for artificial insemination of livestock
21 for direct agricultural production.
22 (15) Horses, or interests in horses, registered with and
23 meeting the requirements of any of the Arabian Horse Club
24 Registry of America, Appaloosa Horse Club, American Quarter
25 Horse Association, United States Trotting Association, or
26 Jockey Club, as appropriate, used for purposes of breeding or
27 racing for prizes.
28 (16) Computers and communications equipment utilized for
29 any hospital purpose and equipment used in the diagnosis,
30 analysis, or treatment of hospital patients sold to a lessor
31 who leases the equipment, under a lease of one year or longer
32 executed or in effect at the time of the purchase, to a
33 hospital that has been issued an active tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act.
2 (17) Personal property sold to a lessor who leases the
3 property, under a lease of one year or longer executed or in
4 effect at the time of the purchase, to a governmental body
5 that has been issued an active tax exemption identification
6 number by the Department under Section 1g of the Retailers'
7 Occupation Tax Act.
8 (18) Beginning with taxable years ending on or after
9 December 31, 1995 and ending with taxable years ending on or
10 before December 31, 2004, personal property that is donated
11 for disaster relief to be used in a State or federally
12 declared disaster area in Illinois or bordering Illinois by a
13 manufacturer or retailer that is registered in this State to
14 a corporation, society, association, foundation, or
15 institution that has been issued a sales tax exemption
16 identification number by the Department that assists victims
17 of the disaster who reside within the declared disaster area.
18 (19) Beginning with taxable years ending on or after
19 December 31, 1995 and ending with taxable years ending on or
20 before December 31, 2004, personal property that is used in
21 the performance of infrastructure repairs in this State,
22 including but not limited to municipal roads and streets,
23 access roads, bridges, sidewalks, waste disposal systems,
24 water and sewer line extensions, water distribution and
25 purification facilities, storm water drainage and retention
26 facilities, and sewage treatment facilities, resulting from a
27 State or federally declared disaster in Illinois or bordering
28 Illinois when such repairs are initiated on facilities
29 located in the declared disaster area within 6 months after
30 the disaster.
31 (20) Beginning January 1, 2000, new or used automatic
32 vending machines that prepare and serve hot food and
33 beverages, including coffee, soup, and other items, and
34 replacement parts for these machines. This paragraph is
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1 exempt from the provisions of Section 3-55.
2 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
3 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
4 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
5 eff. 12-12-97; 90-605, eff. 6-30-98; revised 2-10-99.)
6 Section 20. The Retailers' Occupation Tax Act is amended
7 by changing Section 2-5 as follows:
8 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
9 Sec. 2-5. Exemptions. Gross receipts from proceeds from
10 the sale of the following tangible personal property are
11 exempt from the tax imposed by this Act:
12 (1) Farm chemicals.
13 (2) Farm machinery and equipment, both new and used,
14 including that manufactured on special order, certified by
15 the purchaser to be used primarily for production agriculture
16 or State or federal agricultural programs, including
17 individual replacement parts for the machinery and equipment,
18 including machinery and equipment purchased for lease, and
19 including implements of husbandry defined in Section 1-130 of
20 the Illinois Vehicle Code, farm machinery and agricultural
21 chemical and fertilizer spreaders, and nurse wagons required
22 to be registered under Section 3-809 of the Illinois Vehicle
23 Code, but excluding other motor vehicles required to be
24 registered under the Illinois Vehicle Code. Horticultural
25 polyhouses or hoop houses used for propagating, growing, or
26 overwintering plants shall be considered farm machinery and
27 equipment under this item (2). Agricultural chemical tender
28 tanks and dry boxes shall include units sold separately from
29 a motor vehicle required to be licensed and units sold
30 mounted on a motor vehicle required to be licensed, if the
31 selling price of the tender is separately stated.
32 Farm machinery and equipment shall include precision
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1 farming equipment that is installed or purchased to be
2 installed on farm machinery and equipment including, but not
3 limited to, tractors, harvesters, sprayers, planters,
4 seeders, or spreaders. Precision farming equipment includes,
5 but is not limited to, soil testing sensors, computers,
6 monitors, software, global positioning and mapping systems,
7 and other such equipment.
8 Farm machinery and equipment also includes computers,
9 sensors, software, and related equipment used primarily in
10 the computer-assisted operation of production agriculture
11 facilities, equipment, and activities such as, but not
12 limited to, the collection, monitoring, and correlation of
13 animal and crop data for the purpose of formulating animal
14 diets and agricultural chemicals. This item (7) is exempt
15 from the provisions of Section 2-70 3-75.
16 (3) Distillation machinery and equipment, sold as a unit
17 or kit, assembled or installed by the retailer, certified by
18 the user to be used only for the production of ethyl alcohol
19 that will be used for consumption as motor fuel or as a
20 component of motor fuel for the personal use of the user, and
21 not subject to sale or resale.
22 (4) Graphic arts machinery and equipment, including
23 repair and replacement parts, both new and used, and
24 including that manufactured on special order or purchased for
25 lease, certified by the purchaser to be used primarily for
26 graphic arts production.
27 (5) 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 access to the living quarters from the
32 driver's seat, or a motor vehicle of the second division that
33 is of the van configuration designed for the transportation
34 of not less than 7 nor more than 16 passengers, as defined in
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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 (6) Personal property sold by a teacher-sponsored
5 student organization affiliated with an elementary or
6 secondary school located in Illinois.
7 (7) Proceeds of that portion of the selling price of a
8 passenger car the sale of which is subject to the Replacement
9 Vehicle Tax.
10 (8) Personal property sold to an Illinois county fair
11 association for use in conducting, operating, or promoting
12 the county fair.
13 (9) Personal property sold to a not-for-profit music or
14 dramatic arts organization that establishes, by proof
15 required by the Department by rule, that it has received an
16 exemption under Section 501(c) (3) of the Internal Revenue
17 Code and that is organized and operated for the presentation
18 of live public performances of musical or theatrical works on
19 a regular basis.
20 (10) Personal property sold by a corporation, society,
21 association, foundation, institution, or organization, other
22 than a limited liability company, that is organized and
23 operated as a not-for-profit service enterprise for the
24 benefit of persons 65 years of age or older if the personal
25 property was not purchased by the enterprise for the purpose
26 of resale by the enterprise.
27 (11) Personal property sold to a governmental body, to a
28 corporation, society, association, foundation, or institution
29 organized and operated exclusively for charitable, religious,
30 or educational purposes, or to a not-for-profit corporation,
31 society, association, foundation, institution, or
32 organization that has no compensated officers or employees
33 and that is organized and operated primarily for the
34 recreation of persons 55 years of age or older. A limited
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1 liability company may qualify for the exemption under this
2 paragraph only if the limited liability company is organized
3 and operated exclusively for educational purposes. On and
4 after July 1, 1987, however, no entity otherwise eligible for
5 this exemption shall make tax-free purchases unless it has an
6 active identification number issued by the Department.
7 (12) Personal property sold to interstate carriers for
8 hire for use as rolling stock moving in interstate commerce
9 or to lessors under leases of one year or longer executed or
10 in effect at the time of purchase by interstate carriers for
11 hire for use as rolling stock moving in interstate commerce
12 and equipment operated by a telecommunications provider,
13 licensed as a common carrier by the Federal Communications
14 Commission, which is permanently installed in or affixed to
15 aircraft moving in interstate commerce.
16 (13) Proceeds from sales to owners, lessors, or shippers
17 of tangible personal property that is utilized by interstate
18 carriers for hire for use as rolling stock moving in
19 interstate commerce and equipment operated by a
20 telecommunications provider, licensed as a common carrier by
21 the Federal Communications Commission, which is permanently
22 installed in or affixed to aircraft moving in interstate
23 commerce.
24 (14) Machinery and equipment that will be used by the
25 purchaser, or a lessee of the purchaser, primarily in the
26 process of manufacturing or assembling tangible personal
27 property for wholesale or retail sale or lease, whether the
28 sale or lease is made directly by the manufacturer or by some
29 other person, whether the materials used in the process are
30 owned by the manufacturer or some other person, or whether
31 the sale or lease is made apart from or as an incident to the
32 seller's engaging in the service occupation of producing
33 machines, tools, dies, jigs, patterns, gauges, or other
34 similar items of no commercial value on special order for a
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1 particular purchaser.
2 (15) Proceeds of mandatory service charges separately
3 stated on customers' bills for purchase and consumption of
4 food and beverages, to the extent that the proceeds of the
5 service charge are in fact turned over as tips or as a
6 substitute for tips to the employees who participate directly
7 in preparing, serving, hosting or cleaning up the food or
8 beverage function with respect to which the service charge is
9 imposed.
10 (16) Petroleum products sold to a purchaser if the
11 seller is prohibited by federal law from charging tax to the
12 purchaser.
13 (17) Tangible personal property sold to a common carrier
14 by rail or motor that receives the physical possession of the
15 property in Illinois and that transports the property, or
16 shares with another common carrier in the transportation of
17 the property, out of Illinois on a standard uniform bill of
18 lading showing the seller of the property as the shipper or
19 consignor of the property to a destination outside Illinois,
20 for use outside Illinois.
21 (18) Legal tender, currency, medallions, or gold or
22 silver coinage issued by the State of Illinois, the
23 government of the United States of America, or the government
24 of any foreign country, and bullion.
25 (19) Oil field exploration, drilling, and production
26 equipment, including (i) rigs and parts of rigs, rotary rigs,
27 cable tool rigs, and workover rigs, (ii) pipe and tubular
28 goods, including casing and drill strings, (iii) pumps and
29 pump-jack units, (iv) storage tanks and flow lines, (v) any
30 individual replacement part for oil field exploration,
31 drilling, and production equipment, and (vi) machinery and
32 equipment purchased for lease; but excluding motor vehicles
33 required to be registered under the Illinois Vehicle Code.
34 (20) Photoprocessing machinery and equipment, including
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1 repair and replacement parts, both new and used, including
2 that manufactured on special order, certified by the
3 purchaser to be used primarily for photoprocessing, and
4 including photoprocessing machinery and equipment purchased
5 for lease.
6 (21) Coal exploration, mining, offhighway hauling,
7 processing, maintenance, and reclamation equipment, including
8 replacement parts and equipment, and including equipment
9 purchased for lease, but excluding motor vehicles required to
10 be registered under the Illinois Vehicle Code.
11 (22) Fuel and petroleum products sold to or used by an
12 air carrier, certified by the carrier to be used for
13 consumption, shipment, or storage in the conduct of its
14 business as an air common carrier, for a flight destined for
15 or returning from a location or locations outside the United
16 States without regard to previous or subsequent domestic
17 stopovers.
18 (23) A transaction in which the purchase order is
19 received by a florist who is located outside Illinois, but
20 who has a florist located in Illinois deliver the property to
21 the purchaser or the purchaser's donee in Illinois.
22 (24) Fuel consumed or used in the operation of ships,
23 barges, or vessels that are used primarily in or for the
24 transportation of property or the conveyance of persons for
25 hire on rivers bordering on this State if the fuel is
26 delivered by the seller to the purchaser's barge, ship, or
27 vessel while it is afloat upon that bordering river.
28 (25) A motor vehicle sold in this State to a nonresident
29 even though the motor vehicle is delivered to the nonresident
30 in this State, if the motor vehicle is not to be titled in
31 this State, and if a driveaway decal permit is issued to the
32 motor vehicle as provided in Section 3-603 of the Illinois
33 Vehicle Code or if the nonresident purchaser has vehicle
34 registration plates to transfer to the motor vehicle upon
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1 returning to his or her home state. The issuance of the
2 driveaway decal permit or having the out-of-state
3 registration plates to be transferred is prima facie evidence
4 that the motor vehicle will not be titled in this State.
5 (26) Semen used for artificial insemination of livestock
6 for direct agricultural production.
7 (27) Horses, or interests in horses, registered with and
8 meeting the requirements of any of the Arabian Horse Club
9 Registry of America, Appaloosa Horse Club, American Quarter
10 Horse Association, United States Trotting Association, or
11 Jockey Club, as appropriate, used for purposes of breeding or
12 racing for prizes.
13 (28) Computers and communications equipment utilized for
14 any hospital purpose and equipment used in the diagnosis,
15 analysis, or treatment of hospital patients sold to a lessor
16 who leases the equipment, under a lease of one year or longer
17 executed or in effect at the time of the purchase, to a
18 hospital that has been issued an active tax exemption
19 identification number by the Department under Section 1g of
20 this Act.
21 (29) Personal property sold to a lessor who leases the
22 property, under a lease of one year or longer executed or in
23 effect at the time of the purchase, to a governmental body
24 that has been issued an active tax exemption identification
25 number by the Department under Section 1g of this Act.
26 (30) Beginning with taxable years ending on or after
27 December 31, 1995 and ending with taxable years ending on or
28 before December 31, 2004, personal property that is donated
29 for disaster relief to be used in a State or federally
30 declared disaster area in Illinois or bordering Illinois by a
31 manufacturer or retailer that is registered in this State to
32 a corporation, society, association, foundation, or
33 institution that has been issued a sales tax exemption
34 identification number by the Department that assists victims
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1 of the disaster who reside within the declared disaster area.
2 (31) Beginning with taxable years ending on or after
3 December 31, 1995 and ending with taxable years ending on or
4 before December 31, 2004, personal property that is used in
5 the performance of infrastructure repairs in this State,
6 including but not limited to municipal roads and streets,
7 access roads, bridges, sidewalks, waste disposal systems,
8 water and sewer line extensions, water distribution and
9 purification facilities, storm water drainage and retention
10 facilities, and sewage treatment facilities, resulting from a
11 State or federally declared disaster in Illinois or bordering
12 Illinois when such repairs are initiated on facilities
13 located in the declared disaster area within 6 months after
14 the disaster.
15 (32) Beginning January 1, 2000, new or used automatic
16 vending machines that prepare and serve hot food and
17 beverages, including coffee, soup, and other items, and
18 replacement parts for these machines. This paragraph is
19 exempt from the provisions of Section 2-70.
20 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
21 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
22 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
23 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98;
24 revised 2-10-99.)
25 Section 99. Effective date. This Act takes effect on
26 January 1, 2000.".