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| [ Engrossed ] | [ Enrolled ] | [ Senate Amendment 001 ] |
92_SB0617
LRB9205192SMdv
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17 Illinois county fair association for use in conducting,
18 operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit arts
20 or cultural organization that establishes, by proof required
21 by the Department by rule, that it has received an exemption
22 under Section 501(c)(3) of the Internal Revenue Code and that
23 is organized and operated for the presentation or support of
24 arts or cultural programming, activities, or services. These
25 organizations include, but are not limited to, music and
26 dramatic arts organizations such as symphony orchestras and
27 theatrical groups, arts and cultural service organizations,
28 local arts councils, visual arts organizations, and media
29 arts organizations.
30 (4) Personal property purchased by a governmental body,
31 by a corporation, society, association, foundation, or
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1 institution organized and operated exclusively for
2 charitable, religious, or educational purposes, or by a
3 not-for-profit corporation, society, association, foundation,
4 institution, or organization that has no compensated officers
5 or employees and that is organized and operated primarily for
6 the recreation of persons 55 years of age or older. A limited
7 liability company may qualify for the exemption under this
8 paragraph only if the limited liability company is organized
9 and operated exclusively for educational purposes. On and
10 after July 1, 1987, however, no entity otherwise eligible for
11 this exemption shall make tax-free purchases unless it has an
12 active exemption identification number issued by the
13 Department.
14 (5) A passenger car that is a replacement vehicle to the
15 extent that the purchase price of the car is subject to the
16 Replacement Vehicle Tax.
17 (6) Graphic arts machinery and equipment, including
18 repair and replacement parts, both new and used, and
19 including that manufactured on special order, certified by
20 the purchaser to be used primarily for graphic arts
21 production, and including machinery and equipment purchased
22 for lease.
23 (7) Farm chemicals.
24 (8) Legal tender, currency, medallions, or gold or
25 silver coinage issued by the State of Illinois, the
26 government of the United States of America, or the government
27 of any foreign country, and bullion.
28 (9) Personal property purchased from a teacher-sponsored
29 student organization affiliated with an elementary or
30 secondary school located in Illinois.
31 (10) A motor vehicle of the first division, a motor
32 vehicle of the second division that is a self-contained motor
33 vehicle designed or permanently converted to provide living
34 quarters for recreational, camping, or travel use, with
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1 direct walk through to the living quarters from the driver's
2 seat, or a motor vehicle of the second division that is of
3 the van configuration designed for the transportation of not
4 less than 7 nor more than 16 passengers, as defined in
5 Section 1-146 of the Illinois Vehicle Code, that is used for
6 automobile renting, as defined in the Automobile Renting
7 Occupation and Use Tax Act.
8 (11) 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 (11). 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.
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1 Farm machinery and equipment also includes computers,
2 sensors, software, and related equipment used primarily in
3 the computer-assisted operation of production agriculture
4 facilities, equipment, and activities such as, but not
5 limited to, the collection, monitoring, and correlation of
6 animal and crop data for the purpose of formulating animal
7 diets and agricultural chemicals. This item (11) is exempt
8 from the provisions of Section 3-90.
9 (12) 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 (13) Proceeds of mandatory service charges separately
17 stated on customers' bills for the purchase and consumption
18 of food and beverages purchased at retail from a retailer, to
19 the extent that the proceeds of the service charge are in
20 fact turned over as tips or as a substitute for tips to the
21 employees who participate directly in preparing, serving,
22 hosting or cleaning up the food or beverage function with
23 respect to which the service charge is imposed.
24 (14) 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 (15) 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 (16) 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 (17) Distillation machinery and equipment, sold as a
11 unit or kit, assembled or installed by the retailer,
12 certified by the user to be used only for the production of
13 ethyl alcohol that will be used for consumption as motor fuel
14 or as a component of motor fuel for the personal use of the
15 user, and not subject to sale or resale.
16 (18) Manufacturing and assembling machinery and
17 equipment used primarily in the process of manufacturing or
18 assembling tangible personal property for wholesale or retail
19 sale or lease, whether that sale or lease is made directly by
20 the manufacturer or by some other person, whether the
21 materials used in the process are owned by the manufacturer
22 or some other person, or whether that sale or lease is made
23 apart from or as an incident to the seller's engaging in the
24 service occupation of producing machines, tools, dies, jigs,
25 patterns, gauges, or other similar items of no commercial
26 value on special order for a particular purchaser.
27 (19) Personal property delivered to a purchaser or
28 purchaser's donee inside Illinois when the purchase order for
29 that personal property was received by a florist located
30 outside Illinois who has a florist located inside Illinois
31 deliver the personal property.
32 (20) Semen used for artificial insemination of livestock
33 for direct agricultural production.
34 (21) Horses, or interests in horses, registered with and
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1 meeting the requirements of any of the Arabian Horse Club
2 Registry of America, Appaloosa Horse Club, American Quarter
3 Horse Association, United States Trotting Association, or
4 Jockey Club, as appropriate, used for purposes of breeding or
5 racing for prizes.
6 (22) Computers and communications equipment utilized for
7 any hospital purpose and equipment used in the diagnosis,
8 analysis, or treatment of hospital patients purchased by a
9 lessor who leases the equipment, under a lease of one year or
10 longer executed or in effect at the time the lessor would
11 otherwise be subject to the tax imposed by this Act, to a
12 hospital that has been issued an active tax exemption
13 identification number by the Department under Section 1g of
14 the Retailers' Occupation Tax Act. If the equipment is
15 leased in a manner that does not qualify for this exemption
16 or is used in any other non-exempt manner, the lessor shall
17 be liable for the tax imposed under this Act or the Service
18 Use Tax Act, as the case may be, based on the fair market
19 value of the property at the time the non-qualifying use
20 occurs. No lessor shall collect or attempt to collect an
21 amount (however designated) that purports to reimburse that
22 lessor for the tax imposed by this Act or the Service Use Tax
23 Act, as the case may be, if the tax has not been paid by the
24 lessor. If a lessor improperly collects any such amount from
25 the lessee, the lessee shall have a legal right to claim a
26 refund of that amount from the lessor. If, however, that
27 amount is not refunded to the lessee for any reason, the
28 lessor is liable to pay that amount to the Department.
29 (23) Personal property purchased by a lessor who leases
30 the property, under a lease of one year or longer executed
31 or in effect at the time the lessor would otherwise be
32 subject to the tax imposed by this Act, to a governmental
33 body that has been issued an active sales tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act. If the property is leased
2 in a manner that does not qualify for this exemption or used
3 in any other non-exempt manner, the lessor shall be liable
4 for the tax imposed under this Act or the Service Use Tax
5 Act, as the case may be, based on the fair market value of
6 the property at the time the non-qualifying use occurs. No
7 lessor shall collect or attempt to collect an amount (however
8 designated) that purports to reimburse that lessor for the
9 tax imposed by this Act or the Service Use Tax Act, as the
10 case may be, if the tax has not been paid by the lessor. If
11 a lessor improperly collects any such amount from the lessee,
12 the lessee shall have a legal right to claim a refund of that
13 amount from the lessor. If, however, that amount is not
14 refunded to the lessee for any reason, the lessor is liable
15 to pay that amount to the Department.
16 (24) Beginning with taxable years ending on or after
17 December 31, 1995 and ending with taxable years ending on or
18 before December 31, 2004, personal property that is donated
19 for disaster relief to be used in a State or federally
20 declared disaster area in Illinois or bordering Illinois by a
21 manufacturer or retailer that is registered in this State to
22 a corporation, society, association, foundation, or
23 institution that has been issued a sales tax exemption
24 identification number by the Department that assists victims
25 of the disaster who reside within the declared disaster area.
26 (25) 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 used in
29 the performance of infrastructure repairs in this State,
30 including but not limited to municipal roads and streets,
31 access roads, bridges, sidewalks, waste disposal systems,
32 water and sewer line extensions, water distribution and
33 purification facilities, storm water drainage and retention
34 facilities, and sewage treatment facilities, resulting from a
-8- LRB9205192SMdv
1 State or federally declared disaster in Illinois or bordering
2 Illinois when such repairs are initiated on facilities
3 located in the declared disaster area within 6 months after
4 the disaster.
5 (26) Beginning July 1, 1999, game or game birds
6 purchased at a "game breeding and hunting preserve area" or
7 an "exotic game hunting area" as those terms are used in the
8 Wildlife Code or at a hunting enclosure approved through
9 rules adopted by the Department of Natural Resources. This
10 paragraph is exempt from the provisions of Section 3-90.
11 (27) A motor vehicle, as that term is defined in Section
12 1-146 of the Illinois Vehicle Code, that is donated to a
13 corporation, limited liability company, society, association,
14 foundation, or institution that is determined by the
15 Department to be organized and operated exclusively for
16 educational purposes. For purposes of this exemption, "a
17 corporation, limited liability company, society, association,
18 foundation, or institution organized and operated exclusively
19 for educational purposes" means all tax-supported public
20 schools, private schools that offer systematic instruction in
21 useful branches of learning by methods common to public
22 schools and that compare favorably in their scope and
23 intensity with the course of study presented in tax-supported
24 schools, and vocational or technical schools or institutes
25 organized and operated exclusively to provide a course of
26 study of not less than 6 weeks duration and designed to
27 prepare individuals to follow a trade or to pursue a manual,
28 technical, mechanical, industrial, business, or commercial
29 occupation.
30 (28) Beginning January 1, 2000, personal property,
31 including food, purchased through fundraising events for the
32 benefit of a public or private elementary or secondary
33 school, a group of those schools, or one or more school
34 districts if the events are sponsored by an entity recognized
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1 by the school district that consists primarily of volunteers
2 and includes parents and teachers of the school children.
3 This paragraph does not apply to fundraising events (i) for
4 the benefit of private home instruction or (ii) for which the
5 fundraising entity purchases the personal property sold at
6 the events from another individual or entity that sold the
7 property for the purpose of resale by the fundraising entity
8 and that profits from the sale to the fundraising entity.
9 This paragraph is exempt from the provisions of Section 3-90.
10 (29) 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 (30) Food for human consumption that is to be consumed
16 off the premises where it is sold (other than alcoholic
17 beverages, soft drinks, and food that has been prepared for
18 immediate consumption) and prescription and nonprescription
19 medicines, drugs, medical appliances, and insulin, urine
20 testing materials, syringes, and needles used by diabetics,
21 for human use, when purchased for use by a person receiving
22 medical assistance under Article 5 of the Illinois Public Aid
23 Code who resides in a licensed long-term care facility, as
24 defined in the Nursing Home Care Act.
25 (31) Beginning on January 1, 2001, computers and
26 communications equipment utilized for any hospital purpose
27 and equipment used in the diagnosis, analysis, or treatment
28 of hospital patients purchased by a lessor who leases the
29 equipment, under a lease of one year or longer executed or in
30 effect at the time the lessor would otherwise be subject to
31 the tax imposed by this Act, to a hospital that has been
32 issued an active tax exemption identification number by the
33 Department under Section 1g of the Retailers' Occupation Tax
34 Act. If the equipment is leased in a manner that does not
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1 qualify for this exemption or is used in any other non-exempt
2 manner, the lessor shall be liable for the tax imposed under
3 this Act or the Service Use Tax Act, as the case may be,
4 based on the fair market value of the property at the time
5 the non-qualifying use occurs. No lessor shall collect or
6 attempt to collect an amount (however designated) that
7 purports to reimburse that lessor for the tax imposed by this
8 Act or the Service Use Tax Act, as the case may be, if the
9 tax has not been paid by the lessor. If a lessor improperly
10 collects any such amount from the lessee, the lessee shall
11 have a legal right to claim a refund of that amount from the
12 lessor. If, however, that amount is not refunded to the
13 lessee for any reason, the lessor is liable to pay that
14 amount to the Department. This paragraph is exempt from the
15 provisions of Section 3-90.
16 (32) Beginning on January 1, 2001, personal property
17 purchased by a lessor who leases the property, under a lease
18 of one year or longer executed or in effect at the time the
19 lessor would otherwise be subject to the tax imposed by this
20 Act, to a governmental body that has been issued an active
21 sales tax exemption identification number by the Department
22 under Section 1g of the Retailers' Occupation Tax Act. If
23 the property is leased in a manner that does not qualify for
24 this exemption or used in any other non-exempt manner, the
25 lessor shall be liable for the tax imposed under this Act or
26 the Service Use Tax Act, as the case may be, based on the
27 fair market value of the property at the time the
28 non-qualifying use occurs. No lessor shall collect or
29 attempt to collect an amount (however designated) that
30 purports to reimburse that lessor for the tax imposed by this
31 Act or the Service Use Tax Act, as the case may be, if the
32 tax has not been paid by the lessor. If a lessor improperly
33 collects any such amount from the lessee, the lessee shall
34 have a legal right to claim a refund of that amount from the
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1 lessor. If, however, that amount is not refunded to the
2 lessee for any reason, the lessor is liable to pay that
3 amount to the Department. This paragraph is exempt from the
4 provisions of Section 3-90.
5 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
6 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
7 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
8 eff. 8-20-99; 91-901, eff. 1-1-01.)
9 Section 10. The Service Use Tax Act is amended by
10 changing Section 3-5 as follows:
11 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
12 Sec. 3-5. Exemptions. Use of the following tangible
13 personal property is exempt from the tax imposed by this Act:
14 (1) Personal property purchased from a corporation,
15 society, association, foundation, institution, or
16 organization, other than a limited liability company, that is
17 organized and operated as a not-for-profit service enterprise
18 for the benefit of persons 65 years of age or older if the
19 personal property was not purchased by the enterprise for the
20 purpose of resale by the enterprise.
21 (2) Personal property purchased by a non-profit Illinois
22 county fair association for use in conducting, operating, or
23 promoting the county fair.
24 (3) Personal property purchased by a not-for-profit arts
25 or cultural organization that establishes, by proof required
26 by the Department by rule, that it has received an exemption
27 under Section 501(c)(3) of the Internal Revenue Code and that
28 is organized and operated for the presentation or support of
29 arts or cultural programming, activities, or services. These
30 organizations include, but are not limited to, music and
31 dramatic arts organizations such as symphony orchestras and
32 theatrical groups, arts and cultural service organizations,
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1 local arts councils, visual arts organizations, and media
2 arts organizations.
3 (4) Legal tender, currency, medallions, or gold or
4 silver coinage issued by the State of Illinois, the
5 government of the United States of America, or the government
6 of any foreign country, and bullion.
7 (5) Graphic arts machinery and equipment, including
8 repair and replacement parts, both new and used, and
9 including that manufactured on special order or purchased for
10 lease, certified by the purchaser to be used primarily for
11 graphic arts production.
12 (6) Personal property purchased from a teacher-sponsored
13 student organization affiliated with an elementary or
14 secondary school located in Illinois.
15 (7) Farm machinery and equipment, both new and used,
16 including that manufactured on special order, certified by
17 the purchaser to be used primarily for production agriculture
18 or State or federal agricultural programs, including
19 individual replacement parts for the machinery and equipment,
20 including machinery and equipment purchased for lease, and
21 including implements of husbandry defined in Section 1-130 of
22 the Illinois Vehicle Code, farm machinery and agricultural
23 chemical and fertilizer spreaders, and nurse wagons required
24 to be registered under Section 3-809 of the Illinois Vehicle
25 Code, but excluding other motor vehicles required to be
26 registered under the Illinois Vehicle Code. Horticultural
27 polyhouses or hoop houses used for propagating, growing, or
28 overwintering plants shall be considered farm machinery and
29 equipment under this item (7). Agricultural chemical tender
30 tanks and dry boxes shall include units sold separately from
31 a motor vehicle required to be licensed and units sold
32 mounted on a motor vehicle required to be licensed if the
33 selling price of the tender is separately stated.
34 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 3-75.
16 (8) Fuel and petroleum products sold to or used by an
17 air common carrier, certified by the carrier to be used for
18 consumption, shipment, or storage in the conduct of its
19 business as an air common carrier, for a flight destined for
20 or returning from a location or locations outside the United
21 States without regard to previous or subsequent domestic
22 stopovers.
23 (9) Proceeds of mandatory service charges separately
24 stated on customers' bills for the purchase and consumption
25 of food and beverages acquired as an incident to the purchase
26 of a service from a serviceman, to the extent that the
27 proceeds of the service charge are in fact turned over as
28 tips or as a substitute for tips to the employees who
29 participate directly in preparing, serving, hosting or
30 cleaning up the food or beverage function with respect to
31 which the service charge is imposed.
32 (10) Oil field exploration, drilling, and production
33 equipment, including (i) rigs and parts of rigs, rotary rigs,
34 cable tool rigs, and workover rigs, (ii) pipe and tubular
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1 goods, including casing and drill strings, (iii) pumps and
2 pump-jack units, (iv) storage tanks and flow lines, (v) any
3 individual replacement part for oil field exploration,
4 drilling, and production equipment, and (vi) machinery and
5 equipment purchased for lease; but excluding motor vehicles
6 required to be registered under the Illinois Vehicle Code.
7 (11) Proceeds from the sale of photoprocessing machinery
8 and equipment, including repair and replacement parts, both
9 new and used, including that manufactured on special order,
10 certified by the purchaser to be used primarily for
11 photoprocessing, and including photoprocessing machinery and
12 equipment purchased for lease.
13 (12) Coal exploration, mining, offhighway hauling,
14 processing, maintenance, and reclamation equipment, including
15 replacement parts and equipment, and including equipment
16 purchased for lease, but excluding motor vehicles required to
17 be registered under the Illinois Vehicle Code.
18 (13) Semen used for artificial insemination of livestock
19 for direct agricultural production.
20 (14) Horses, or interests in horses, registered with and
21 meeting the requirements of any of the Arabian Horse Club
22 Registry of America, Appaloosa Horse Club, American Quarter
23 Horse Association, United States Trotting Association, or
24 Jockey Club, as appropriate, used for purposes of breeding or
25 racing for prizes.
26 (15) Computers and communications equipment utilized for
27 any hospital purpose and equipment used in the diagnosis,
28 analysis, or treatment of hospital patients purchased by a
29 lessor who leases the equipment, under a lease of one year or
30 longer executed or in effect at the time the lessor would
31 otherwise be subject to the tax imposed by this Act, to a
32 hospital that has been issued an active tax exemption
33 identification number by the Department under Section 1g of
34 the Retailers' Occupation Tax Act. If the equipment is leased
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1 in a manner that does not qualify for this exemption or is
2 used in any other non-exempt manner, the lessor shall be
3 liable for the tax imposed under this Act or the Use Tax Act,
4 as the case may be, based on the fair market value of the
5 property at the time the non-qualifying use occurs. No
6 lessor shall collect or attempt to collect an amount (however
7 designated) that purports to reimburse that lessor for the
8 tax imposed by this Act or the Use Tax Act, as the case may
9 be, if the tax has not been paid by the lessor. If a lessor
10 improperly collects any such amount from the lessee, the
11 lessee shall have a legal right to claim a refund of that
12 amount from the lessor. If, however, that amount is not
13 refunded to the lessee for any reason, the lessor is liable
14 to pay that amount to the Department.
15 (16) Personal property purchased by a lessor who leases
16 the property, under a lease of one year or longer executed or
17 in effect at the time the lessor would otherwise be subject
18 to the tax imposed by this Act, to a governmental body that
19 has been issued an active tax exemption identification number
20 by the Department under Section 1g of the Retailers'
21 Occupation Tax Act. If the property is leased in a manner
22 that does not qualify for this exemption or is used in any
23 other non-exempt manner, the lessor shall be liable for the
24 tax imposed under this Act or the Use Tax Act, as the case
25 may be, based on the fair market value of the property at the
26 time the non-qualifying use occurs. No lessor shall collect
27 or attempt to collect an amount (however designated) that
28 purports to reimburse that lessor for the tax imposed by this
29 Act or the Use Tax Act, as the case may be, if the tax has
30 not been paid by the lessor. If a lessor improperly collects
31 any such amount from the lessee, the lessee shall have a
32 legal right to claim a refund of that amount from the lessor.
33 If, however, that amount is not refunded to the lessee for
34 any reason, the lessor is liable to pay that amount to the
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1 Department.
2 (17) 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 donated
5 for disaster relief to be used in a State or federally
6 declared disaster area in Illinois or bordering Illinois by a
7 manufacturer or retailer that is registered in this State to
8 a corporation, society, association, foundation, or
9 institution that has been issued a sales tax exemption
10 identification number by the Department that assists victims
11 of the disaster who reside within the declared disaster area.
12 (18) 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 used in
15 the performance of infrastructure repairs in this State,
16 including but not limited to municipal roads and streets,
17 access roads, bridges, sidewalks, waste disposal systems,
18 water and sewer line extensions, water distribution and
19 purification facilities, storm water drainage and retention
20 facilities, and sewage treatment facilities, resulting from a
21 State or federally declared disaster in Illinois or bordering
22 Illinois when such repairs are initiated on facilities
23 located in the declared disaster area within 6 months after
24 the disaster.
25 (19) Beginning July 1, 1999, game or game birds
26 purchased at a "game breeding and hunting preserve area" or
27 an "exotic game hunting area" as those terms are used in the
28 Wildlife Code or at a hunting enclosure approved through
29 rules adopted by the Department of Natural Resources. This
30 paragraph is exempt from the provisions of Section 3-75.
31 (20) (19) A motor vehicle, as that term is defined in
32 Section 1-146 of the Illinois Vehicle Code, that is donated
33 to a corporation, limited liability company, society,
34 association, foundation, or institution that is determined by
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1 the Department to be organized and operated exclusively for
2 educational purposes. For purposes of this exemption, "a
3 corporation, limited liability company, society, association,
4 foundation, or institution organized and operated exclusively
5 for educational purposes" means all tax-supported public
6 schools, private schools that offer systematic instruction in
7 useful branches of learning by methods common to public
8 schools and that compare favorably in their scope and
9 intensity with the course of study presented in tax-supported
10 schools, and vocational or technical schools or institutes
11 organized and operated exclusively to provide a course of
12 study of not less than 6 weeks duration and designed to
13 prepare individuals to follow a trade or to pursue a manual,
14 technical, mechanical, industrial, business, or commercial
15 occupation.
16 (21) (20) Beginning January 1, 2000, personal property,
17 including food, purchased through fundraising events for the
18 benefit of a public or private elementary or secondary
19 school, a group of those schools, or one or more school
20 districts if the events are sponsored by an entity recognized
21 by the school district that consists primarily of volunteers
22 and includes parents and teachers of the school children.
23 This paragraph does not apply to fundraising events (i) for
24 the benefit of private home instruction or (ii) for which the
25 fundraising entity purchases the personal property sold at
26 the events from another individual or entity that sold the
27 property for the purpose of resale by the fundraising entity
28 and that profits from the sale to the fundraising entity.
29 This paragraph is exempt from the provisions of Section 3-75.
30 (22) (19) Beginning January 1, 2000, new or used
31 automatic vending machines that prepare and serve hot food
32 and beverages, including coffee, soup, and other items, and
33 replacement parts for these machines. This paragraph is
34 exempt from the provisions of Section 3-75.
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1 (23) Beginning January 1, 2001, computers and
2 communications equipment utilized for any hospital purpose
3 and equipment used in the diagnosis, analysis, or treatment
4 of hospital patients purchased by a lessor who leases the
5 equipment, under a lease of one year or longer executed or in
6 effect at the time the lessor would otherwise be subject to
7 the tax imposed by this Act, to a hospital that has been
8 issued an active tax exemption identification number by the
9 Department under Section 1g of the Retailers' Occupation Tax
10 Act. If the equipment is leased in a manner that does not
11 qualify for this exemption or is used in any other non-exempt
12 manner, the lessor shall be liable for the tax imposed under
13 this Act or the Use Tax Act, as the case may be, based on the
14 fair market value of the property at the time the
15 non-qualifying use occurs. No lessor shall collect or
16 attempt to collect an amount (however designated) that
17 purports to reimburse that lessor for the tax imposed by this
18 Act or the Use Tax Act, as the case may be, if the tax has
19 not been paid by the lessor. If a lessor improperly collects
20 any such amount from the lessee, the lessee shall have a
21 legal right to claim a refund of that amount from the lessor.
22 If, however, that amount is not refunded to the lessee for
23 any reason, the lessor is liable to pay that amount to the
24 Department. This paragraph is exempt from the provisions of
25 Section 3-75.
26 (24) Beginning January 1, 2001, personal property
27 purchased by a lessor who leases the property, under a lease
28 of one year or longer executed or in effect at the time the
29 lessor would otherwise be subject to the tax imposed by this
30 Act, to a governmental body that has been issued an active
31 tax exemption identification number by the Department under
32 Section 1g of the Retailers' Occupation Tax Act. If the
33 property is leased in a manner that does not qualify for this
34 exemption or is used in any other non-exempt manner, the
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1 lessor shall be liable for the tax imposed under this Act or
2 the Use Tax Act, as the case may be, based on the fair market
3 value of the property at the time the non-qualifying use
4 occurs. No lessor shall collect or attempt to collect an
5 amount (however designated) that purports to reimburse that
6 lessor for the tax imposed by this Act or the Use Tax Act, as
7 the case may be, if the tax has not been paid by the lessor.
8 If a lessor improperly collects any such amount from the
9 lessee, the lessee shall have a legal right to claim a refund
10 of that amount from the lessor. If, however, that amount is
11 not refunded to the lessee for any reason, the lessor is
12 liable to pay that amount to the Department. This paragraph
13 is exempt from the provisions of Section 3-75.
14 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
15 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
16 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
17 eff. 8-20-99; revised 9-29-99.)
18 Section 15. The Service Occupation Tax Act is amended by
19 changing Section 3-5 as follows:
20 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
21 Sec. 3-5. Exemptions. The following tangible personal
22 property is exempt from the tax imposed by this Act:
23 (1) Personal property sold by a corporation, society,
24 association, foundation, institution, or organization, other
25 than a limited liability company, that is organized and
26 operated as a not-for-profit service enterprise for the
27 benefit of persons 65 years of age or older if the personal
28 property was not purchased by the enterprise for the purpose
29 of resale by the enterprise.
30 (2) Personal property purchased by a not-for-profit
31 Illinois county fair association for use in conducting,
32 operating, or promoting the county fair.
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1 (3) Personal property purchased by any not-for-profit
2 arts or cultural organization that establishes, by proof
3 required by the Department by rule, that it has received an
4 exemption under Section 501(c)(3) of the Internal Revenue
5 Code and that is organized and operated for the presentation
6 or support of arts or cultural programming, activities, or
7 services. These organizations include, but are not limited
8 to, music and dramatic arts organizations such as symphony
9 orchestras and theatrical groups, arts and cultural service
10 organizations, local arts councils, visual arts
11 organizations, and media arts organizations.
12 (4) Legal tender, currency, medallions, or gold or
13 silver coinage issued by the State of Illinois, the
14 government of the United States of America, or the government
15 of any foreign country, and bullion.
16 (5) Graphic arts machinery and equipment, including
17 repair and replacement parts, both new and used, and
18 including that manufactured on special order or purchased for
19 lease, certified by the purchaser to be used primarily for
20 graphic arts production.
21 (6) Personal property sold by a teacher-sponsored
22 student organization affiliated with an elementary or
23 secondary school located in Illinois.
24 (7) Farm machinery and equipment, both new and used,
25 including that manufactured on special order, certified by
26 the purchaser to be used primarily for production agriculture
27 or State or federal agricultural programs, including
28 individual replacement parts for the machinery and equipment,
29 including machinery and equipment purchased for lease, and
30 including implements of husbandry defined in Section 1-130 of
31 the Illinois Vehicle Code, farm machinery and agricultural
32 chemical and fertilizer spreaders, and nurse wagons required
33 to be registered under Section 3-809 of the Illinois Vehicle
34 Code, but excluding other motor vehicles required to be
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1 registered under the Illinois Vehicle Code. Horticultural
2 polyhouses or hoop houses used for propagating, growing, or
3 overwintering plants shall be considered farm machinery and
4 equipment under this item (7). Agricultural chemical tender
5 tanks and dry boxes shall include units sold separately from
6 a motor vehicle required to be licensed and units sold
7 mounted on a motor vehicle required to be licensed if the
8 selling price of the tender is separately stated.
9 Farm machinery and equipment shall include precision
10 farming equipment that is installed or purchased to be
11 installed on farm machinery and equipment including, but not
12 limited to, tractors, harvesters, sprayers, planters,
13 seeders, or spreaders. Precision farming equipment includes,
14 but is not limited to, soil testing sensors, computers,
15 monitors, software, global positioning and mapping systems,
16 and other such equipment.
17 Farm machinery and equipment also includes computers,
18 sensors, software, and related equipment used primarily in
19 the computer-assisted operation of production agriculture
20 facilities, equipment, and activities such as, but not
21 limited to, the collection, monitoring, and correlation of
22 animal and crop data for the purpose of formulating animal
23 diets and agricultural chemicals. This item (7) is exempt
24 from the provisions of Section 3-55.
25 (8) Fuel and petroleum products sold to or used by an
26 air common carrier, certified by the carrier to be used for
27 consumption, shipment, or storage in the conduct of its
28 business as an air common carrier, for a flight destined for
29 or returning from a location or locations outside the United
30 States without regard to previous or subsequent domestic
31 stopovers.
32 (9) Proceeds of mandatory service charges separately
33 stated on customers' bills for the purchase and consumption
34 of food and beverages, to the extent that the proceeds of the
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1 service charge are in fact turned over as tips or as a
2 substitute for tips to the employees who participate directly
3 in preparing, serving, hosting or cleaning up the food or
4 beverage function with respect to which the service charge is
5 imposed.
6 (10) Oil field exploration, drilling, and production
7 equipment, including (i) rigs and parts of rigs, rotary rigs,
8 cable tool rigs, and workover rigs, (ii) pipe and tubular
9 goods, including casing and drill strings, (iii) pumps and
10 pump-jack units, (iv) storage tanks and flow lines, (v) any
11 individual replacement part for oil field exploration,
12 drilling, and production equipment, and (vi) machinery and
13 equipment purchased for lease; but excluding motor vehicles
14 required to be registered under the Illinois Vehicle Code.
15 (11) Photoprocessing machinery and equipment, including
16 repair and replacement parts, both new and used, including
17 that manufactured on special order, certified by the
18 purchaser to be used primarily for photoprocessing, and
19 including photoprocessing machinery and equipment purchased
20 for lease.
21 (12) Coal exploration, mining, offhighway hauling,
22 processing, maintenance, and reclamation equipment, including
23 replacement parts and equipment, and including equipment
24 purchased for lease, but excluding motor vehicles required to
25 be registered under the Illinois Vehicle Code.
26 (13) Food for human consumption that is to be consumed
27 off the premises where it is sold (other than alcoholic
28 beverages, soft drinks and food that has been prepared for
29 immediate consumption) and prescription and non-prescription
30 medicines, drugs, medical appliances, and insulin, urine
31 testing materials, syringes, and needles used by diabetics,
32 for human use, when purchased for use by a person receiving
33 medical assistance under Article 5 of the Illinois Public Aid
34 Code who resides in a licensed long-term care facility, as
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1 defined in the Nursing Home Care Act.
2 (14) Semen used for artificial insemination of livestock
3 for direct agricultural production.
4 (15) Horses, or interests in horses, registered with and
5 meeting the requirements of any of the Arabian Horse Club
6 Registry of America, Appaloosa Horse Club, American Quarter
7 Horse Association, United States Trotting Association, or
8 Jockey Club, as appropriate, used for purposes of breeding or
9 racing for prizes.
10 (16) Computers and communications equipment utilized for
11 any hospital purpose and equipment used in the diagnosis,
12 analysis, or treatment of hospital patients sold to a lessor
13 who leases the equipment, under a lease of one year or longer
14 executed or in effect at the time of the purchase, to a
15 hospital that has been issued an active tax exemption
16 identification number by the Department under Section 1g of
17 the Retailers' Occupation Tax Act.
18 (17) Personal property sold to a lessor who leases the
19 property, under a lease of one year or longer executed or in
20 effect at the time of the purchase, to a governmental body
21 that has been issued an active tax exemption identification
22 number by the Department under Section 1g of the Retailers'
23 Occupation Tax Act.
24 (18) Beginning with taxable years ending on or after
25 December 31, 1995 and ending with taxable years ending on or
26 before December 31, 2004, personal property that is donated
27 for disaster relief to be used in a State or federally
28 declared disaster area in Illinois or bordering Illinois by a
29 manufacturer or retailer that is registered in this State to
30 a corporation, society, association, foundation, or
31 institution that has been issued a sales tax exemption
32 identification number by the Department that assists victims
33 of the disaster who reside within the declared disaster area.
34 (19) Beginning with taxable years ending on or after
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1 December 31, 1995 and ending with taxable years ending on or
2 before December 31, 2004, personal property that is used in
3 the performance of infrastructure repairs in this State,
4 including but not limited to municipal roads and streets,
5 access roads, bridges, sidewalks, waste disposal systems,
6 water and sewer line extensions, water distribution and
7 purification facilities, storm water drainage and retention
8 facilities, and sewage treatment facilities, resulting from a
9 State or federally declared disaster in Illinois or bordering
10 Illinois when such repairs are initiated on facilities
11 located in the declared disaster area within 6 months after
12 the disaster.
13 (20) Beginning July 1, 1999, game or game birds sold at
14 a "game breeding and hunting preserve area" or an "exotic
15 game hunting area" as those terms are used in the Wildlife
16 Code or at a hunting enclosure approved through rules adopted
17 by the Department of Natural Resources. This paragraph is
18 exempt from the provisions of Section 3-55.
19 (21) (20) A motor vehicle, as that term is defined in
20 Section 1-146 of the Illinois Vehicle Code, that is donated
21 to a corporation, limited liability company, society,
22 association, foundation, or institution that is determined by
23 the Department to be organized and operated exclusively for
24 educational purposes. For purposes of this exemption, "a
25 corporation, limited liability company, society, association,
26 foundation, or institution organized and operated exclusively
27 for educational purposes" means all tax-supported public
28 schools, private schools that offer systematic instruction in
29 useful branches of learning by methods common to public
30 schools and that compare favorably in their scope and
31 intensity with the course of study presented in tax-supported
32 schools, and vocational or technical schools or institutes
33 organized and operated exclusively to provide a course of
34 study of not less than 6 weeks duration and designed to
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1 prepare individuals to follow a trade or to pursue a manual,
2 technical, mechanical, industrial, business, or commercial
3 occupation.
4 (22) (21) Beginning January 1, 2000, personal property,
5 including food, purchased through fundraising events for the
6 benefit of a public or private elementary or secondary
7 school, a group of those schools, or one or more school
8 districts if the events are sponsored by an entity recognized
9 by the school district that consists primarily of volunteers
10 and includes parents and teachers of the school children.
11 This paragraph does not apply to fundraising events (i) for
12 the benefit of private home instruction or (ii) for which the
13 fundraising entity purchases the personal property sold at
14 the events from another individual or entity that sold the
15 property for the purpose of resale by the fundraising entity
16 and that profits from the sale to the fundraising entity.
17 This paragraph is exempt from the provisions of Section 3-55.
18 (23) (20) Beginning January 1, 2000, new or used
19 automatic vending machines that prepare and serve hot food
20 and beverages, including coffee, soup, and other items, and
21 replacement parts for these machines. This paragraph is
22 exempt from the provisions of Section 3-55.
23 (24) Beginning January 1, 2001, computers and
24 communications equipment utilized for any hospital purpose
25 and equipment used in the diagnosis, analysis, or treatment
26 of hospital patients sold to a lessor who leases the
27 equipment, under a lease of one year or longer executed or in
28 effect at the time of the purchase, to a hospital that has
29 been issued an active tax exemption identification number by
30 the Department under Section 1g of the Retailers' Occupation
31 Tax Act. This paragraph is exempt from the provisions of
32 Section 3-55.
33 (25) Beginning January 1, 2001, personal property sold
34 to a lessor who leases the property, under a lease of one
-26- LRB9205192SMdv
1 year or longer executed or in effect at the time of the
2 purchase, to a governmental body that has been issued an
3 active tax exemption identification number by the Department
4 under Section 1g of the Retailers' Occupation Tax Act. This
5 paragraph is exempt from the provisions of Section 3-55.
6 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
7 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
8 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637,
9 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)
10 Section 20. The Retailers' Occupation Tax Act is amended
11 changing Section 2-5 as follows:
12 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
13 Sec. 2-5. Exemptions. Gross receipts from proceeds from
14 the sale of the following tangible personal property are
15 exempt from the tax imposed by this Act:
16 (1) Farm chemicals.
17 (2) Farm machinery and equipment, both new and used,
18 including that manufactured on special order, certified by
19 the purchaser to be used primarily for production agriculture
20 or State or federal agricultural programs, including
21 individual replacement parts for the machinery and equipment,
22 including machinery and equipment purchased for lease, and
23 including implements of husbandry defined in Section 1-130 of
24 the Illinois Vehicle Code, farm machinery and agricultural
25 chemical and fertilizer spreaders, and nurse wagons required
26 to be registered under Section 3-809 of the Illinois Vehicle
27 Code, but excluding other motor vehicles required to be
28 registered under the Illinois Vehicle Code. Horticultural
29 polyhouses or hoop houses used for propagating, growing, or
30 overwintering plants shall be considered farm machinery and
31 equipment under this item (2). Agricultural chemical tender
32 tanks and dry boxes shall include units sold separately from
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1 a motor vehicle required to be licensed and units sold
2 mounted on a motor vehicle required to be licensed, if the
3 selling price of the tender is separately stated.
4 Farm machinery and equipment shall include precision
5 farming equipment that is installed or purchased to be
6 installed on farm machinery and equipment including, but not
7 limited to, tractors, harvesters, sprayers, planters,
8 seeders, or spreaders. Precision farming equipment includes,
9 but is not limited to, soil testing sensors, computers,
10 monitors, software, global positioning and mapping systems,
11 and other such equipment.
12 Farm machinery and equipment also includes computers,
13 sensors, software, and related equipment used primarily in
14 the computer-assisted operation of production agriculture
15 facilities, equipment, and activities such as, but not
16 limited to, the collection, monitoring, and correlation of
17 animal and crop data for the purpose of formulating animal
18 diets and agricultural chemicals. This item (7) is exempt
19 from the provisions of Section 2-70.
20 (3) Distillation machinery and equipment, sold as a unit
21 or kit, assembled or installed by the retailer, certified by
22 the user to be used only for the production of ethyl alcohol
23 that will be used for consumption as motor fuel or as a
24 component of motor fuel for the personal use of the user, and
25 not subject to sale or resale.
26 (4) 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 (5) A motor vehicle of the first division, a motor
32 vehicle of the second division that is a self-contained motor
33 vehicle designed or permanently converted to provide living
34 quarters for recreational, camping, or travel use, with
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1 direct walk through access to the living quarters from the
2 driver's seat, or a motor vehicle of the second division that
3 is of the van configuration designed for the transportation
4 of not less than 7 nor more than 16 passengers, as defined in
5 Section 1-146 of the Illinois Vehicle Code, that is used for
6 automobile renting, as defined in the Automobile Renting
7 Occupation and Use Tax Act.
8 (6) Personal property sold by a teacher-sponsored
9 student organization affiliated with an elementary or
10 secondary school located in Illinois.
11 (7) Proceeds of that portion of the selling price of a
12 passenger car the sale of which is subject to the Replacement
13 Vehicle Tax.
14 (8) Personal property sold to an Illinois county fair
15 association for use in conducting, operating, or promoting
16 the county fair.
17 (9) Personal property sold to a not-for-profit arts or
18 cultural organization that establishes, by proof required by
19 the Department by rule, that it has received an exemption
20 under Section 501(c)(3) of the Internal Revenue Code and that
21 is organized and operated for the presentation or support of
22 arts or cultural programming, activities, or services. These
23 organizations include, but are not limited to, music and
24 dramatic arts organizations such as symphony orchestras and
25 theatrical groups, arts and cultural service organizations,
26 local arts councils, visual arts organizations, and media
27 arts organizations.
28 (10) Personal property sold by a corporation, society,
29 association, foundation, institution, or organization, other
30 than a limited liability company, that is organized and
31 operated as a not-for-profit service enterprise for the
32 benefit of persons 65 years of age or older if the personal
33 property was not purchased by the enterprise for the purpose
34 of resale by the enterprise.
-29- LRB9205192SMdv
1 (11) Personal property sold to a governmental body, to a
2 corporation, society, association, foundation, or institution
3 organized and operated exclusively for charitable, religious,
4 or educational purposes, or to a not-for-profit corporation,
5 society, association, foundation, institution, or
6 organization that has no compensated officers or employees
7 and that is organized and operated primarily for the
8 recreation of persons 55 years of age or older. A limited
9 liability company may qualify for the exemption under this
10 paragraph only if the limited liability company is organized
11 and operated exclusively for educational purposes. On and
12 after July 1, 1987, however, no entity otherwise eligible for
13 this exemption shall make tax-free purchases unless it has an
14 active identification number issued by the Department.
15 (12) Personal property sold to interstate carriers for
16 hire for use as rolling stock moving in interstate commerce
17 or to lessors under leases of one year or longer executed or
18 in effect at the time of purchase by interstate carriers for
19 hire for use as rolling stock moving in interstate commerce
20 and equipment operated by a telecommunications provider,
21 licensed as a common carrier by the Federal Communications
22 Commission, which is permanently installed in or affixed to
23 aircraft moving in interstate commerce.
24 (13) Proceeds from sales to owners, lessors, or shippers
25 of tangible personal property that is utilized by interstate
26 carriers for hire for use as rolling stock moving in
27 interstate commerce and equipment operated by a
28 telecommunications provider, licensed as a common carrier by
29 the Federal Communications Commission, which is permanently
30 installed in or affixed to aircraft moving in interstate
31 commerce.
32 (14) Machinery and equipment that will be used by the
33 purchaser, or a lessee of the purchaser, primarily in the
34 process of manufacturing or assembling tangible personal
-30- LRB9205192SMdv
1 property for wholesale or retail sale or lease, whether the
2 sale or lease is made directly by the manufacturer or by some
3 other person, whether the materials used in the process are
4 owned by the manufacturer or some other person, or whether
5 the sale or lease is made apart from or as an incident to the
6 seller's engaging in the service occupation of producing
7 machines, tools, dies, jigs, patterns, gauges, or other
8 similar items of no commercial value on special order for a
9 particular purchaser.
10 (15) Proceeds of mandatory service charges separately
11 stated on customers' bills for purchase and consumption of
12 food and beverages, to the extent that the proceeds of the
13 service charge are in fact turned over as tips or as a
14 substitute for tips to the employees who participate directly
15 in preparing, serving, hosting or cleaning up the food or
16 beverage function with respect to which the service charge is
17 imposed.
18 (16) Petroleum products sold to a purchaser if the
19 seller is prohibited by federal law from charging tax to the
20 purchaser.
21 (17) Tangible personal property sold to a common carrier
22 by rail or motor that receives the physical possession of the
23 property in Illinois and that transports the property, or
24 shares with another common carrier in the transportation of
25 the property, out of Illinois on a standard uniform bill of
26 lading showing the seller of the property as the shipper or
27 consignor of the property to a destination outside Illinois,
28 for use outside Illinois.
29 (18) 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 (19) Oil field exploration, drilling, and production
34 equipment, including (i) rigs and parts of rigs, rotary rigs,
-31- LRB9205192SMdv
1 cable tool rigs, and workover rigs, (ii) pipe and tubular
2 goods, including casing and drill strings, (iii) pumps and
3 pump-jack units, (iv) storage tanks and flow lines, (v) any
4 individual replacement part for oil field exploration,
5 drilling, and production equipment, and (vi) machinery and
6 equipment purchased for lease; but excluding motor vehicles
7 required to be registered under the Illinois Vehicle Code.
8 (20) Photoprocessing machinery and equipment, including
9 repair and replacement parts, both new and used, including
10 that manufactured on special order, certified by the
11 purchaser to be used primarily for photoprocessing, and
12 including photoprocessing machinery and equipment purchased
13 for lease.
14 (21) Coal exploration, mining, offhighway hauling,
15 processing, maintenance, and reclamation equipment, including
16 replacement parts and equipment, and including equipment
17 purchased for lease, but excluding motor vehicles required to
18 be registered under the Illinois Vehicle Code.
19 (22) Fuel and petroleum products sold to or used by an
20 air carrier, certified by the carrier to be used for
21 consumption, shipment, or storage in the conduct of its
22 business as an air common carrier, for a flight destined for
23 or returning from a location or locations outside the United
24 States without regard to previous or subsequent domestic
25 stopovers.
26 (23) A transaction in which the purchase order is
27 received by a florist who is located outside Illinois, but
28 who has a florist located in Illinois deliver the property to
29 the purchaser or the purchaser's donee in Illinois.
30 (24) Fuel consumed or used in the operation of ships,
31 barges, or vessels that are used primarily in or for the
32 transportation of property or the conveyance of persons for
33 hire on rivers bordering on this State if the fuel is
34 delivered by the seller to the purchaser's barge, ship, or
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1 vessel while it is afloat upon that bordering river.
2 (25) A motor vehicle sold in this State to a nonresident
3 even though the motor vehicle is delivered to the nonresident
4 in this State, if the motor vehicle is not to be titled in
5 this State, and if a driveaway decal permit is issued to the
6 motor vehicle as provided in Section 3-603 of the Illinois
7 Vehicle Code or if the nonresident purchaser has vehicle
8 registration plates to transfer to the motor vehicle upon
9 returning to his or her home state. The issuance of the
10 driveaway decal permit or having the out-of-state
11 registration plates to be transferred is prima facie evidence
12 that the motor vehicle will not be titled in this State.
13 (26) Semen used for artificial insemination of livestock
14 for direct agricultural production.
15 (27) 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 (28) 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 this Act.
29 (29) 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 this Act.
34 (30) Beginning with taxable years ending on or after
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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 (31) 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 (32) Beginning July 1, 1999, game or game birds sold at
24 a "game breeding and hunting preserve area" or an "exotic
25 game hunting area" as those terms are used in the Wildlife
26 Code or at a hunting enclosure approved through rules adopted
27 by the Department of Natural Resources. This paragraph is
28 exempt from the provisions of Section 2-70.
29 (33) (32) A motor vehicle, as that term is defined in
30 Section 1-146 of the Illinois Vehicle Code, that is donated
31 to a corporation, limited liability company, society,
32 association, foundation, or institution that is determined by
33 the Department to be organized and operated exclusively for
34 educational purposes. For purposes of this exemption, "a
-34- LRB9205192SMdv
1 corporation, limited liability company, society, association,
2 foundation, or institution organized and operated exclusively
3 for educational purposes" means all tax-supported public
4 schools, private schools that offer systematic instruction in
5 useful branches of learning by methods common to public
6 schools and that compare favorably in their scope and
7 intensity with the course of study presented in tax-supported
8 schools, and vocational or technical schools or institutes
9 organized and operated exclusively to provide a course of
10 study of not less than 6 weeks duration and designed to
11 prepare individuals to follow a trade or to pursue a manual,
12 technical, mechanical, industrial, business, or commercial
13 occupation.
14 (34) (33) Beginning January 1, 2000, personal property,
15 including food, purchased through fundraising events for the
16 benefit of a public or private elementary or secondary
17 school, a group of those schools, or one or more school
18 districts if the events are sponsored by an entity recognized
19 by the school district that consists primarily of volunteers
20 and includes parents and teachers of the school children.
21 This paragraph does not apply to fundraising events (i) for
22 the benefit of private home instruction or (ii) for which the
23 fundraising entity purchases the personal property sold at
24 the events from another individual or entity that sold the
25 property for the purpose of resale by the fundraising entity
26 and that profits from the sale to the fundraising entity.
27 This paragraph is exempt from the provisions of Section 2-70.
28 (35) (32) Beginning January 1, 2000, new or used
29 automatic vending machines that prepare and serve hot food
30 and beverages, including coffee, soup, and other items, and
31 replacement parts for these machines. This paragraph is
32 exempt from the provisions of Section 2-70.
33 (36) Beginning on January 1, 2001, computers and
34 communications equipment utilized for any hospital purpose
-35- LRB9205192SMdv
1 and equipment used in the diagnosis, analysis, or treatment
2 of hospital patients sold to a lessor who leases the
3 equipment, under a lease of one year or longer executed or in
4 effect at the time of the purchase, to a hospital that has
5 been issued an active tax exemption identification number by
6 the Department under Section 1g of this Act. This paragraph
7 is exempt from the provisions of Section 2-70.
8 (37) Beginning January 1, 2001, personal property sold
9 to a lessor who leases the property, under a lease of one
10 year or longer executed or in effect at the time of the
11 purchase, to a governmental body that has been issued an
12 active tax exemption identification number by the Department
13 under Section 1g of this Act. This paragraph is exempt from
14 the provisions of Section 2-70.
15 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98;
16 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff.
17 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533,
18 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99;
19 revised 9-28-99.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.