[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Enrolled ] |
91_SB0434eng SB434 Engrossed LRB9104499PTpk 1 AN ACT concerning taxation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Use Tax Act is amended by changing 5 Section 3-5 as follows: 6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 7 Sec. 3-5. Exemptions. Use of the following tangible 8 personal property is exempt from the tax imposed by this Act: 9 (1) Personal property purchased from a corporation, 10 society, association, foundation, institution, or 11 organization, other than a limited liability company, that is 12 organized and operated as a not-for-profit service enterprise 13 for the benefit of persons 65 years of age or older if the 14 personal property was not purchased by the enterprise for the 15 purpose of resale by the enterprise. 16 (2) Personal property purchased by a not-for-profit 17 Illinois county fair association for use in conducting, 18 operating, or promoting the county fair. 19 (3) Personal property purchased by a not-for-profit 20 music or dramatic arts organization that establishes, by 21 proof required by the Department by rule, that it has 22 received an exemption under Section 501(c)(3) of the Internal 23 Revenue Code and that is organized and operated for the 24 presentation of live public performances of musical or 25 theatrical works on a regular basis. 26 (4) Personal property purchased by a governmental body, 27 by a corporation, society, association, foundation, or 28 institution organized and operated exclusively for 29 charitable, religious, or educational purposes, or by a 30 not-for-profit corporation, society, association, foundation, 31 institution, or organization that has no compensated officers SB434 Engrossed -2- LRB9104499PTpk 1 or employees and that is organized and operated primarily for 2 the recreation of persons 55 years of age or older. A limited 3 liability company may qualify for the exemption under this 4 paragraph only if the limited liability company is organized 5 and operated exclusively for educational purposes. On and 6 after July 1, 1987, however, no entity otherwise eligible for 7 this exemption shall make tax-free purchases unless it has an 8 active exemption identification number issued by the 9 Department. 10 (5) A passenger car that is a replacement vehicle to the 11 extent that the purchase price of the car is subject to the 12 Replacement Vehicle Tax. 13 (6) Graphic arts machinery and equipment, including 14 repair and replacement parts, both new and used, and 15 including that manufactured on special order, certified by 16 the purchaser to be used primarily for graphic arts 17 production, and including machinery and equipment purchased 18 for lease. 19 (7) Farm chemicals. 20 (8) Legal tender, currency, medallions, or gold or 21 silver coinage issued by the State of Illinois, the 22 government of the United States of America, or the government 23 of any foreign country, and bullion. 24 (9) Personal property purchased from a teacher-sponsored 25 student organization affiliated with an elementary or 26 secondary school located in Illinois. 27 (10) A motor vehicle of the first division, a motor 28 vehicle of the second division that is a self-contained motor 29 vehicle designed or permanently converted to provide living 30 quarters for recreational, camping, or travel use, with 31 direct walk through to the living quarters from the driver's 32 seat, or a motor vehicle of the second division that is of 33 the van configuration designed for the transportation of not 34 less than 7 nor more than 16 passengers, as defined in SB434 Engrossed -3- LRB9104499PTpk 1 Section 1-146 of the Illinois Vehicle Code, that is used for 2 automobile renting, as defined in the Automobile Renting 3 Occupation and Use Tax Act. 4 (11) Farm machinery and equipment, both new and used, 5 including that manufactured on special order, certified by 6 the purchaser to be used primarily for production agriculture 7 or State or federal agricultural programs, including 8 individual replacement parts for the machinery and equipment, 9 including machinery and equipment purchased for lease, and 10 including implements of husbandry defined in Section 1-130 of 11 the Illinois Vehicle Code, farm machinery and agricultural 12 chemical and fertilizer spreaders, and nurse wagons required 13 to be registered under Section 3-809 of the Illinois Vehicle 14 Code, but excluding other motor vehicles required to be 15 registered under the Illinois Vehicle Code. Horticultural 16 polyhouses or hoop houses used for propagating, growing, or 17 overwintering plants shall be considered farm machinery and 18 equipment under this item (11). Agricultural chemical tender 19 tanks and dry boxes shall include units sold separately from 20 a motor vehicle required to be licensed and units sold 21 mounted on a motor vehicle required to be licensed if the 22 selling price of the tender is separately stated. 23 Farm machinery and equipment shall include precision 24 farming equipment that is installed or purchased to be 25 installed on farm machinery and equipment including, but not 26 limited to, tractors, harvesters, sprayers, planters, 27 seeders, or spreaders. Precision farming equipment includes, 28 but is not limited to, soil testing sensors, computers, 29 monitors, software, global positioning and mapping systems, 30 and other such equipment. 31 Farm machinery and equipment also includes computers, 32 sensors, software, and related equipment used primarily in 33 the computer-assisted operation of production agriculture 34 facilities, equipment, and activities such as, but not SB434 Engrossed -4- LRB9104499PTpk 1 limited to, the collection, monitoring, and correlation of 2 animal and crop data for the purpose of formulating animal 3 diets and agricultural chemicals. This item (11) is exempt 4 from the provisions of Section 3-90. 5 (12) Fuel and petroleum products sold to or used by an 6 air common carrier, certified by the carrier to be used for 7 consumption, shipment, or storage in the conduct of its 8 business as an air common carrier, for a flight destined for 9 or returning from a location or locations outside the United 10 States without regard to previous or subsequent domestic 11 stopovers. 12 (13) Proceeds of mandatory service charges separately 13 stated on customers' bills for the purchase and consumption 14 of food and beverages purchased at retail from a retailer, to 15 the extent that the proceeds of the service charge are in 16 fact turned over as tips or as a substitute for tips to the 17 employees who participate directly in preparing, serving, 18 hosting or cleaning up the food or beverage function with 19 respect to which the service charge is imposed. 20 (14) Oil field exploration, drilling, and production 21 equipment, including (i) rigs and parts of rigs, rotary rigs, 22 cable tool rigs, and workover rigs, (ii) pipe and tubular 23 goods, including casing and drill strings, (iii) pumps and 24 pump-jack units, (iv) storage tanks and flow lines, (v) any 25 individual replacement part for oil field exploration, 26 drilling, and production equipment, and (vi) machinery and 27 equipment purchased for lease; but excluding motor vehicles 28 required to be registered under the Illinois Vehicle Code. 29 (15) Photoprocessing machinery and equipment, including 30 repair and replacement parts, both new and used, including 31 that manufactured on special order, certified by the 32 purchaser to be used primarily for photoprocessing, and 33 including photoprocessing machinery and equipment purchased 34 for lease. SB434 Engrossed -5- LRB9104499PTpk 1 (16) Coal exploration, mining, offhighway hauling, 2 processing, maintenance, and reclamation equipment, including 3 replacement parts and equipment, and including equipment 4 purchased for lease, but excluding motor vehicles required to 5 be registered under the Illinois Vehicle Code. 6 (17) Distillation machinery and equipment, sold as a 7 unit or kit, assembled or installed by the retailer, 8 certified by the user to be used only for the production of 9 ethyl alcohol that will be used for consumption as motor fuel 10 or as a component of motor fuel for the personal use of the 11 user, and not subject to sale or resale. 12 (18) Manufacturing and assembling machinery and 13 equipment used primarily in the process of manufacturing or 14 assembling tangible personal property for wholesale or retail 15 sale or lease, whether that sale or lease is made directly by 16 the manufacturer or by some other person, whether the 17 materials used in the process are owned by the manufacturer 18 or some other person, or whether that sale or lease is made 19 apart from or as an incident to the seller's engaging in the 20 service occupation of producing machines, tools, dies, jigs, 21 patterns, gauges, or other similar items of no commercial 22 value on special order for a particular purchaser. 23 (19) Personal property delivered to a purchaser or 24 purchaser's donee inside Illinois when the purchase order for 25 that personal property was received by a florist located 26 outside Illinois who has a florist located inside Illinois 27 deliver the personal property. 28 (20) Semen used for artificial insemination of livestock 29 for direct agricultural production. 30 (21) Horses, or interests in horses, registered with and 31 meeting the requirements of any of the Arabian Horse Club 32 Registry of America, Appaloosa Horse Club, American Quarter 33 Horse Association, United States Trotting Association, or 34 Jockey Club, as appropriate, used for purposes of breeding or SB434 Engrossed -6- LRB9104499PTpk 1 racing for prizes. 2 (22) Computers and communications equipment utilized for 3 any hospital purpose and equipment used in the diagnosis, 4 analysis, or treatment of hospital patients purchased by a 5 lessor who leases the equipment, under a lease of one year or 6 longer executed or in effect at the time the lessor would 7 otherwise be subject to the tax imposed by this Act, to a 8 hospital that has been issued an active tax exemption 9 identification number by the Department under Section 1g of 10 the Retailers' Occupation Tax Act. If the equipment is 11 leased in a manner that does not qualify for this exemption 12 or is used in any other non-exempt manner, the lessor shall 13 be liable for the tax imposed under this Act or the Service 14 Use Tax Act, as the case may be, based on the fair market 15 value of the property at the time the non-qualifying use 16 occurs. No lessor shall collect or attempt to collect an 17 amount (however designated) that purports to reimburse that 18 lessor for the tax imposed by this Act or the Service Use Tax 19 Act, as the case may be, if the tax has not been paid by the 20 lessor. If a lessor improperly collects any such amount from 21 the lessee, the lessee shall have a legal right to claim a 22 refund of that amount from the lessor. If, however, that 23 amount is not refunded to the lessee for any reason, the 24 lessor is liable to pay that amount to the Department. 25 (23) Personal property purchased by a lessor who leases 26 the property, under a lease of one year or longer executed 27 or in effect at the time the lessor would otherwise be 28 subject to the tax imposed by this Act, to a governmental 29 body that has been issued an active sales tax exemption 30 identification number by the Department under Section 1g of 31 the Retailers' Occupation Tax Act. If the property is leased 32 in a manner that does not qualify for this exemption or used 33 in any other non-exempt manner, the lessor shall be liable 34 for the tax imposed under this Act or the Service Use Tax SB434 Engrossed -7- LRB9104499PTpk 1 Act, as the case may be, based on the fair market value of 2 the property at the time the non-qualifying use occurs. No 3 lessor shall collect or attempt to collect an amount (however 4 designated) that purports to reimburse that lessor for the 5 tax imposed by this Act or the Service Use Tax Act, as the 6 case may be, if the tax has not been paid by the lessor. If 7 a lessor improperly collects any such amount from the lessee, 8 the lessee shall have a legal right to claim a refund of that 9 amount from the lessor. If, however, that amount is not 10 refunded to the lessee for any reason, the lessor is liable 11 to pay that amount to the Department. 12 (24) Beginning with taxable years ending on or after 13 December 31, 1995 and ending with taxable years ending on or 14 before December 31, 2004, personal property that is donated 15 for disaster relief to be used in a State or federally 16 declared disaster area in Illinois or bordering Illinois by a 17 manufacturer or retailer that is registered in this State to 18 a corporation, society, association, foundation, or 19 institution that has been issued a sales tax exemption 20 identification number by the Department that assists victims 21 of the disaster who reside within the declared disaster area. 22 (25) Beginning with taxable years ending on or after 23 December 31, 1995 and ending with taxable years ending on or 24 before December 31, 2004, personal property that is used in 25 the performance of infrastructure repairs in this State, 26 including but not limited to municipal roads and streets, 27 access roads, bridges, sidewalks, waste disposal systems, 28 water and sewer line extensions, water distribution and 29 purification facilities, storm water drainage and retention 30 facilities, and sewage treatment facilities, resulting from a 31 State or federally declared disaster in Illinois or bordering 32 Illinois when such repairs are initiated on facilities 33 located in the declared disaster area within 6 months after 34 the disaster. SB434 Engrossed -8- LRB9104499PTpk 1 (26) Beginning July 1, 1999, game or game birds 2 purchased at a "game breeding and hunting preserve area" or 3 an "exotic game hunting area" as those terms are used in the 4 Wildlife Code or at a hunting enclosure approved through 5 rules adopted by the Department of Natural Resources. This 6 paragraph is exempt from the provisions of Section 3-90. 7 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 8 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 9 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 10 eff. 12-12-97; 90-605, eff. 6-30-98.) 11 Section 10. The Service Use Tax Act is amended by 12 changing Section 3-5 as follows: 13 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 14 Sec. 3-5. Exemptions. Use of the following tangible 15 personal property is exempt from the tax imposed by this Act: 16 (1) Personal property purchased from a corporation, 17 society, association, foundation, institution, or 18 organization, other than a limited liability company, that is 19 organized and operated as a not-for-profit service enterprise 20 for the benefit of persons 65 years of age or older if the 21 personal property was not purchased by the enterprise for the 22 purpose of resale by the enterprise. 23 (2) Personal property purchased by a non-profit Illinois 24 county fair association for use in conducting, operating, or 25 promoting the county fair. 26 (3) Personal property purchased by a not-for-profit 27 music or dramatic arts organization that establishes, by 28 proof required by the Department by rule, that it has 29 received an exemption under Section 501(c)(3) of the Internal 30 Revenue Code and that is organized and operated for the 31 presentation of live public performances of musical or 32 theatrical works on a regular basis. SB434 Engrossed -9- LRB9104499PTpk 1 (4) Legal tender, currency, medallions, or gold or 2 silver coinage issued by the State of Illinois, the 3 government of the United States of America, or the government 4 of any foreign country, and bullion. 5 (5) Graphic arts machinery and equipment, including 6 repair and replacement parts, both new and used, and 7 including that manufactured on special order or purchased for 8 lease, certified by the purchaser to be used primarily for 9 graphic arts production. 10 (6) Personal property purchased from a teacher-sponsored 11 student organization affiliated with an elementary or 12 secondary school located in Illinois. 13 (7) 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 (7). 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 SB434 Engrossed -10- LRB9104499PTpk 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 (7) is exempt 13 from the provisions of Section 3-75. 14 (8) 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 (9) Proceeds of mandatory service charges separately 22 stated on customers' bills for the purchase and consumption 23 of food and beverages acquired as an incident to the purchase 24 of a service from a serviceman, to the extent that the 25 proceeds of the service charge are in fact turned over as 26 tips or as a substitute for tips to the employees who 27 participate directly in preparing, serving, hosting or 28 cleaning up the food or beverage function with respect to 29 which the service charge is imposed. 30 (10) Oil field exploration, drilling, and production 31 equipment, including (i) rigs and parts of rigs, rotary rigs, 32 cable tool rigs, and workover rigs, (ii) pipe and tubular 33 goods, including casing and drill strings, (iii) pumps and 34 pump-jack units, (iv) storage tanks and flow lines, (v) any SB434 Engrossed -11- LRB9104499PTpk 1 individual replacement part for oil field exploration, 2 drilling, and production equipment, and (vi) machinery and 3 equipment purchased for lease; but excluding motor vehicles 4 required to be registered under the Illinois Vehicle Code. 5 (11) Proceeds from the sale of photoprocessing machinery 6 and equipment, including repair and replacement parts, both 7 new and used, including that manufactured on special order, 8 certified by the purchaser to be used primarily for 9 photoprocessing, and including photoprocessing machinery and 10 equipment purchased for lease. 11 (12) Coal exploration, mining, offhighway hauling, 12 processing, maintenance, and reclamation equipment, including 13 replacement parts and equipment, and including equipment 14 purchased for lease, but excluding motor vehicles required to 15 be registered under the Illinois Vehicle Code. 16 (13) Semen used for artificial insemination of livestock 17 for direct agricultural production. 18 (14) Horses, or interests in horses, registered with and 19 meeting the requirements of any of the Arabian Horse Club 20 Registry of America, Appaloosa Horse Club, American Quarter 21 Horse Association, United States Trotting Association, or 22 Jockey Club, as appropriate, used for purposes of breeding or 23 racing for prizes. 24 (15) Computers and communications equipment utilized for 25 any hospital purpose and equipment used in the diagnosis, 26 analysis, or treatment of hospital patients purchased by a 27 lessor who leases the equipment, under a lease of one year or 28 longer executed or in effect at the time the lessor would 29 otherwise be subject to the tax imposed by this Act, to a 30 hospital that has been issued an active tax exemption 31 identification number by the Department under Section 1g of 32 the Retailers' Occupation Tax Act. If the equipment is leased 33 in a manner that does not qualify for this exemption or is 34 used in any other non-exempt manner, the lessor shall be SB434 Engrossed -12- LRB9104499PTpk 1 liable for the tax imposed under this Act or the Use Tax Act, 2 as the case may be, based on the fair market value of the 3 property at the time the non-qualifying use occurs. No 4 lessor shall collect or attempt to collect an amount (however 5 designated) that purports to reimburse that lessor for the 6 tax imposed by this Act or the Use Tax Act, as the case may 7 be, if the tax has not been paid by the lessor. If a lessor 8 improperly collects any such amount from the lessee, the 9 lessee shall have a legal right to claim a refund of that 10 amount from the lessor. If, however, that amount is not 11 refunded to the lessee for any reason, the lessor is liable 12 to pay that amount to the Department. 13 (16) Personal property purchased by a lessor who leases 14 the property, under a lease of one year or longer executed or 15 in effect at the time the lessor would otherwise be subject 16 to the tax imposed by this Act, to a governmental body that 17 has been issued an active tax exemption identification number 18 by the Department under Section 1g of the Retailers' 19 Occupation Tax Act. If the property is leased in a manner 20 that does not qualify for this exemption or is used in any 21 other non-exempt manner, the lessor shall be liable for the 22 tax imposed under this Act or the Use Tax Act, as the case 23 may be, based on the fair market value of the property at the 24 time the non-qualifying use occurs. No lessor shall collect 25 or attempt to collect an amount (however designated) that 26 purports to reimburse that lessor for the tax imposed by this 27 Act or the Use Tax Act, as the case may be, if the tax has 28 not been paid by the lessor. If a lessor improperly collects 29 any such amount from the lessee, the lessee shall have a 30 legal right to claim a refund of that amount from the lessor. 31 If, however, that amount is not refunded to the lessee for 32 any reason, the lessor is liable to pay that amount to the 33 Department. 34 (17) Beginning with taxable years ending on or after SB434 Engrossed -13- LRB9104499PTpk 1 December 31, 1995 and ending with taxable years ending on or 2 before December 31, 2004, personal property that is donated 3 for disaster relief to be used in a State or federally 4 declared disaster area in Illinois or bordering Illinois by a 5 manufacturer or retailer that is registered in this State to 6 a corporation, society, association, foundation, or 7 institution that has been issued a sales tax exemption 8 identification number by the Department that assists victims 9 of the disaster who reside within the declared disaster area. 10 (18) Beginning with taxable years ending on or after 11 December 31, 1995 and ending with taxable years ending on or 12 before December 31, 2004, personal property that is used in 13 the performance of infrastructure repairs in this State, 14 including but not limited to municipal roads and streets, 15 access roads, bridges, sidewalks, waste disposal systems, 16 water and sewer line extensions, water distribution and 17 purification facilities, storm water drainage and retention 18 facilities, and sewage treatment facilities, resulting from a 19 State or federally declared disaster in Illinois or bordering 20 Illinois when such repairs are initiated on facilities 21 located in the declared disaster area within 6 months after 22 the disaster. 23 (19) Beginning July 1, 1999, game or game birds 24 purchased at a "game breeding and hunting preserve area" or 25 an "exotic game hunting area" as those terms are used in the 26 Wildlife Code or at a hunting enclosure approved through 27 rules adopted by the Department of Natural Resources. This 28 paragraph is exempt from the provisions of Section 3-75. 29 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 30 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 31 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 32 eff. 12-12-97; 90-605, eff. 6-30-98.) 33 Section 15. The Service Occupation Tax Act is amended by SB434 Engrossed -14- LRB9104499PTpk 1 changing Section 3-5 as follows: 2 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 3 Sec. 3-5. Exemptions. The following tangible personal 4 property is exempt from the tax imposed by this Act: 5 (1) Personal property sold by a corporation, society, 6 association, foundation, institution, or organization, other 7 than a limited liability company, that is organized and 8 operated as a not-for-profit service enterprise for the 9 benefit of persons 65 years of age or older if the personal 10 property was not purchased by the enterprise for the purpose 11 of resale by the enterprise. 12 (2) Personal property purchased by a not-for-profit 13 Illinois county fair association for use in conducting, 14 operating, or promoting the county fair. 15 (3) Personal property purchased by any not-for-profit 16 music or dramatic arts organization that establishes, by 17 proof required by the Department by rule, that it has 18 received an exemption under Section 501(c)(3) of the 19 Internal Revenue Code and that is organized and operated for 20 the presentation of live public performances of musical or 21 theatrical works on a regular basis. 22 (4) Legal tender, currency, medallions, or gold or 23 silver coinage issued by the State of Illinois, the 24 government of the United States of America, or the government 25 of any foreign country, and bullion. 26 (5) Graphic arts machinery and equipment, including 27 repair and replacement parts, both new and used, and 28 including that manufactured on special order or purchased for 29 lease, certified by the purchaser to be used primarily for 30 graphic arts production. 31 (6) Personal property sold by a teacher-sponsored 32 student organization affiliated with an elementary or 33 secondary school located in Illinois. SB434 Engrossed -15- LRB9104499PTpk 1 (7) Farm machinery and equipment, both new and used, 2 including that manufactured on special order, certified by 3 the purchaser to be used primarily for production agriculture 4 or State or federal agricultural programs, including 5 individual replacement parts for the machinery and equipment, 6 including machinery and equipment purchased for lease, and 7 including implements of husbandry defined in Section 1-130 of 8 the Illinois Vehicle Code, farm machinery and agricultural 9 chemical and fertilizer spreaders, and nurse wagons required 10 to be registered under Section 3-809 of the Illinois Vehicle 11 Code, but excluding other motor vehicles required to be 12 registered under the Illinois Vehicle Code. Horticultural 13 polyhouses or hoop houses used for propagating, growing, or 14 overwintering plants shall be considered farm machinery and 15 equipment under this item (7). Agricultural chemical tender 16 tanks and dry boxes shall include units sold separately from 17 a motor vehicle required to be licensed and units sold 18 mounted on a motor vehicle required to be licensed if the 19 selling price of the tender is separately stated. 20 Farm machinery and equipment shall include precision 21 farming equipment that is installed or purchased to be 22 installed on farm machinery and equipment including, but not 23 limited to, tractors, harvesters, sprayers, planters, 24 seeders, or spreaders. Precision farming equipment includes, 25 but is not limited to, soil testing sensors, computers, 26 monitors, software, global positioning and mapping systems, 27 and other such equipment. 28 Farm machinery and equipment also includes computers, 29 sensors, software, and related equipment used primarily in 30 the computer-assisted operation of production agriculture 31 facilities, equipment, and activities such as, but not 32 limited to, the collection, monitoring, and correlation of 33 animal and crop data for the purpose of formulating animal 34 diets and agricultural chemicals. This item (7) is exempt SB434 Engrossed -16- LRB9104499PTpk 1 from the provisions of Section 3-553-75. 2 (8) Fuel and petroleum products sold to or used by an 3 air common carrier, certified by the carrier to be used for 4 consumption, shipment, or storage in the conduct of its 5 business as an air common carrier, for a flight destined for 6 or returning from a location or locations outside the United 7 States without regard to previous or subsequent domestic 8 stopovers. 9 (9) Proceeds of mandatory service charges separately 10 stated on customers' bills for the purchase and consumption 11 of food and beverages, to the extent that the proceeds of the 12 service charge are in fact turned over as tips or as a 13 substitute for tips to the employees who participate directly 14 in preparing, serving, hosting or cleaning up the food or 15 beverage function with respect to which the service charge is 16 imposed. 17 (10) Oil field exploration, drilling, and production 18 equipment, including (i) rigs and parts of rigs, rotary rigs, 19 cable tool rigs, and workover rigs, (ii) pipe and tubular 20 goods, including casing and drill strings, (iii) pumps and 21 pump-jack units, (iv) storage tanks and flow lines, (v) any 22 individual replacement part for oil field exploration, 23 drilling, and production equipment, and (vi) machinery and 24 equipment purchased for lease; but excluding motor vehicles 25 required to be registered under the Illinois Vehicle Code. 26 (11) Photoprocessing machinery and equipment, including 27 repair and replacement parts, both new and used, including 28 that manufactured on special order, certified by the 29 purchaser to be used primarily for photoprocessing, and 30 including photoprocessing machinery and equipment purchased 31 for lease. 32 (12) Coal exploration, mining, offhighway hauling, 33 processing, maintenance, and reclamation equipment, including 34 replacement parts and equipment, and including equipment SB434 Engrossed -17- LRB9104499PTpk 1 purchased for lease, but excluding motor vehicles required to 2 be registered under the Illinois Vehicle Code. 3 (13) Food for human consumption that is to be consumed 4 off the premises where it is sold (other than alcoholic 5 beverages, soft drinks and food that has been prepared for 6 immediate consumption) and prescription and non-prescription 7 medicines, drugs, medical appliances, and insulin, urine 8 testing materials, syringes, and needles used by diabetics, 9 for human use, when purchased for use by a person receiving 10 medical assistance under Article 5 of the Illinois Public Aid 11 Code who resides in a licensed long-term care facility, as 12 defined in the Nursing Home Care Act. 13 (14) Semen used for artificial insemination of livestock 14 for direct agricultural production. 15 (15) Horses, or interests in horses, registered with and 16 meeting the requirements of any of the Arabian Horse Club 17 Registry of America, Appaloosa Horse Club, American Quarter 18 Horse Association, United States Trotting Association, or 19 Jockey Club, as appropriate, used for purposes of breeding or 20 racing for prizes. 21 (16) Computers and communications equipment utilized for 22 any hospital purpose and equipment used in the diagnosis, 23 analysis, or treatment of hospital patients sold to a lessor 24 who leases the equipment, under a lease of one year or longer 25 executed or in effect at the time of the purchase, to a 26 hospital that has been issued an active tax exemption 27 identification number by the Department under Section 1g of 28 the Retailers' Occupation Tax Act. 29 (17) Personal property sold to a lessor who leases the 30 property, under a lease of one year or longer executed or in 31 effect at the time of the purchase, to a governmental body 32 that has been issued an active tax exemption identification 33 number by the Department under Section 1g of the Retailers' 34 Occupation Tax Act. SB434 Engrossed -18- LRB9104499PTpk 1 (18) Beginning with taxable years ending on or after 2 December 31, 1995 and ending with taxable years ending on or 3 before December 31, 2004, personal property that is donated 4 for disaster relief to be used in a State or federally 5 declared disaster area in Illinois or bordering Illinois by a 6 manufacturer or retailer that is registered in this State to 7 a corporation, society, association, foundation, or 8 institution that has been issued a sales tax exemption 9 identification number by the Department that assists victims 10 of the disaster who reside within the declared disaster area. 11 (19) 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 used in 14 the performance of infrastructure repairs in this State, 15 including but not limited to municipal roads and streets, 16 access roads, bridges, sidewalks, waste disposal systems, 17 water and sewer line extensions, water distribution and 18 purification facilities, storm water drainage and retention 19 facilities, and sewage treatment facilities, resulting from a 20 State or federally declared disaster in Illinois or bordering 21 Illinois when such repairs are initiated on facilities 22 located in the declared disaster area within 6 months after 23 the disaster. 24 (20) Beginning July 1, 1999, game or game birds sold at 25 a "game breeding and hunting preserve area" or an "exotic 26 game hunting area" as those terms are used in the Wildlife 27 Code or at a hunting enclosure approved through rules adopted 28 by the Department of Natural Resources. This paragraph is 29 exempt from the provisions of Section 3-55. 30 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 31 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 32 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 33 eff. 12-12-97; 90-605, eff. 6-30-98; revised 2-10-99.) SB434 Engrossed -19- LRB9104499PTpk 1 Section 20. The Retailers' Occupation Tax Act is amended 2 by changing Section 2-5 as follows: 3 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 4 Sec. 2-5. Exemptions. Gross receipts from proceeds from 5 the sale of the following tangible personal property are 6 exempt from the tax imposed by this Act: 7 (1) Farm chemicals. 8 (2) 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 (2). 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, SB434 Engrossed -20- LRB9104499PTpk 1 and other such equipment. 2 Farm machinery and equipment also includes computers, 3 sensors, software, and related equipment used primarily in 4 the computer-assisted operation of production agriculture 5 facilities, equipment, and activities such as, but not 6 limited to, the collection, monitoring, and correlation of 7 animal and crop data for the purpose of formulating animal 8 diets and agricultural chemicals. This item (7) is exempt 9 from the provisions of Section 2-703-75. 10 (3) Distillation machinery and equipment, sold as a unit 11 or kit, assembled or installed by the retailer, certified by 12 the user to be used only for the production of ethyl alcohol 13 that will be used for consumption as motor fuel or as a 14 component of motor fuel for the personal use of the user, and 15 not subject to sale or resale. 16 (4) Graphic arts machinery and equipment, including 17 repair and replacement parts, both new and used, and 18 including that manufactured on special order or purchased for 19 lease, certified by the purchaser to be used primarily for 20 graphic arts production. 21 (5) A motor vehicle of the first division, a motor 22 vehicle of the second division that is a self-contained motor 23 vehicle designed or permanently converted to provide living 24 quarters for recreational, camping, or travel use, with 25 direct walk through access to the living quarters from the 26 driver's seat, or a motor vehicle of the second division that 27 is of the van configuration designed for the transportation 28 of not less than 7 nor more than 16 passengers, as defined in 29 Section 1-146 of the Illinois Vehicle Code, that is used for 30 automobile renting, as defined in the Automobile Renting 31 Occupation and Use Tax Act. 32 (6) Personal property sold by a teacher-sponsored 33 student organization affiliated with an elementary or 34 secondary school located in Illinois. SB434 Engrossed -21- LRB9104499PTpk 1 (7) Proceeds of that portion of the selling price of a 2 passenger car the sale of which is subject to the Replacement 3 Vehicle Tax. 4 (8) Personal property sold to an Illinois county fair 5 association for use in conducting, operating, or promoting 6 the county fair. 7 (9) Personal property sold to a not-for-profit music or 8 dramatic arts organization that establishes, by proof 9 required by the Department by rule, that it has received an 10 exemption under Section 501(c) (3) of the Internal Revenue 11 Code and that is organized and operated for the presentation 12 of live public performances of musical or theatrical works on 13 a regular basis. 14 (10) Personal property sold by a corporation, society, 15 association, foundation, institution, or organization, other 16 than a limited liability company, that is organized and 17 operated as a not-for-profit service enterprise for the 18 benefit of persons 65 years of age or older if the personal 19 property was not purchased by the enterprise for the purpose 20 of resale by the enterprise. 21 (11) Personal property sold to a governmental body, to a 22 corporation, society, association, foundation, or institution 23 organized and operated exclusively for charitable, religious, 24 or educational purposes, or to a not-for-profit corporation, 25 society, association, foundation, institution, or 26 organization that has no compensated officers or employees 27 and that is organized and operated primarily for the 28 recreation of persons 55 years of age or older. A limited 29 liability company may qualify for the exemption under this 30 paragraph only if the limited liability company is organized 31 and operated exclusively for educational purposes. On and 32 after July 1, 1987, however, no entity otherwise eligible for 33 this exemption shall make tax-free purchases unless it has an 34 active identification number issued by the Department. SB434 Engrossed -22- LRB9104499PTpk 1 (12) Personal property sold to interstate carriers for 2 hire for use as rolling stock moving in interstate commerce 3 or to lessors under leases of one year or longer executed or 4 in effect at the time of purchase by interstate carriers for 5 hire for use as rolling stock moving in interstate commerce 6 and equipment operated by a telecommunications provider, 7 licensed as a common carrier by the Federal Communications 8 Commission, which is permanently installed in or affixed to 9 aircraft moving in interstate commerce. 10 (13) Proceeds from sales to owners, lessors, or shippers 11 of tangible personal property that is utilized by interstate 12 carriers for hire for use as rolling stock moving in 13 interstate commerce and equipment operated by a 14 telecommunications provider, licensed as a common carrier by 15 the Federal Communications Commission, which is permanently 16 installed in or affixed to aircraft moving in interstate 17 commerce. 18 (14) Machinery and equipment that will be used by the 19 purchaser, or a lessee of the purchaser, primarily in the 20 process of manufacturing or assembling tangible personal 21 property for wholesale or retail sale or lease, whether the 22 sale or lease is made directly by the manufacturer or by some 23 other person, whether the materials used in the process are 24 owned by the manufacturer or some other person, or whether 25 the sale or lease is made apart from or as an incident to the 26 seller's engaging in the service occupation of producing 27 machines, tools, dies, jigs, patterns, gauges, or other 28 similar items of no commercial value on special order for a 29 particular purchaser. 30 (15) Proceeds of mandatory service charges separately 31 stated on customers' bills for purchase and consumption of 32 food and beverages, to the extent that the proceeds of the 33 service charge are in fact turned over as tips or as a 34 substitute for tips to the employees who participate directly SB434 Engrossed -23- LRB9104499PTpk 1 in preparing, serving, hosting or cleaning up the food or 2 beverage function with respect to which the service charge is 3 imposed. 4 (16) Petroleum products sold to a purchaser if the 5 seller is prohibited by federal law from charging tax to the 6 purchaser. 7 (17) Tangible personal property sold to a common carrier 8 by rail or motor that receives the physical possession of the 9 property in Illinois and that transports the property, or 10 shares with another common carrier in the transportation of 11 the property, out of Illinois on a standard uniform bill of 12 lading showing the seller of the property as the shipper or 13 consignor of the property to a destination outside Illinois, 14 for use outside Illinois. 15 (18) Legal tender, currency, medallions, or gold or 16 silver coinage issued by the State of Illinois, the 17 government of the United States of America, or the government 18 of any foreign country, and bullion. 19 (19) 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 (20) 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 (21) Coal exploration, mining, offhighway hauling, SB434 Engrossed -24- LRB9104499PTpk 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 (22) Fuel and petroleum products sold to or used by an 6 air carrier, certified by the carrier to be used for 7 consumption, shipment, or storage in the conduct of its 8 business as an air common carrier, for a flight destined for 9 or returning from a location or locations outside the United 10 States without regard to previous or subsequent domestic 11 stopovers. 12 (23) A transaction in which the purchase order is 13 received by a florist who is located outside Illinois, but 14 who has a florist located in Illinois deliver the property to 15 the purchaser or the purchaser's donee in Illinois. 16 (24) Fuel consumed or used in the operation of ships, 17 barges, or vessels that are used primarily in or for the 18 transportation of property or the conveyance of persons for 19 hire on rivers bordering on this State if the fuel is 20 delivered by the seller to the purchaser's barge, ship, or 21 vessel while it is afloat upon that bordering river. 22 (25) A motor vehicle sold in this State to a nonresident 23 even though the motor vehicle is delivered to the nonresident 24 in this State, if the motor vehicle is not to be titled in 25 this State, and if a driveaway decal permit is issued to the 26 motor vehicle as provided in Section 3-603 of the Illinois 27 Vehicle Code or if the nonresident purchaser has vehicle 28 registration plates to transfer to the motor vehicle upon 29 returning to his or her home state. The issuance of the 30 driveaway decal permit or having the out-of-state 31 registration plates to be transferred is prima facie evidence 32 that the motor vehicle will not be titled in this State. 33 (26) Semen used for artificial insemination of livestock 34 for direct agricultural production. SB434 Engrossed -25- LRB9104499PTpk 1 (27) Horses, or interests in horses, registered with and 2 meeting the requirements of any of the Arabian Horse Club 3 Registry of America, Appaloosa Horse Club, American Quarter 4 Horse Association, United States Trotting Association, or 5 Jockey Club, as appropriate, used for purposes of breeding or 6 racing for prizes. 7 (28) Computers and communications equipment utilized for 8 any hospital purpose and equipment used in the diagnosis, 9 analysis, or treatment of hospital patients sold to a lessor 10 who leases the equipment, under a lease of one year or longer 11 executed or in effect at the time of the purchase, to a 12 hospital that has been issued an active tax exemption 13 identification number by the Department under Section 1g of 14 this Act. 15 (29) Personal property sold to a lessor who leases the 16 property, under a lease of one year or longer executed or in 17 effect at the time of the purchase, to a governmental body 18 that has been issued an active tax exemption identification 19 number by the Department under Section 1g of this Act. 20 (30) 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 (31) 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, SB434 Engrossed -26- LRB9104499PTpk 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 (32) 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 2-70. 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; 90-519, 18 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 19 revised 2-10-99.) 20 Section 99. Effective date. This Act takes effect upon 21 becoming law.