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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
92_SB0617eng SB617 Engrossed 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 SB617 Engrossed -2- LRB9205192SMdv 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 SB617 Engrossed -3- LRB9205192SMdv 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. SB617 Engrossed -4- LRB9205192SMdv 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 SB617 Engrossed -5- LRB9205192SMdv 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 SB617 Engrossed -6- LRB9205192SMdv 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 nonexempt manner, the lessor shall be 17 liable for the tax imposed under this Act or the Service Use 18 Tax Act, as the case may be, based on the fair market value 19 of the property at the time the nonqualifying use occurs. No 20 lessor shall collect or attempt to collect an amount (however 21 designated) that purports to reimburse that lessor for the 22 tax imposed by this Act or the Service Use Tax Act, as the 23 case may be, if the tax has not been paid by the lessor. If 24 a lessor improperly collects any such amount from the lessee, 25 the lessee shall have a legal right to claim a refund of that 26 amount from the lessor. If, however, that amount is not 27 refunded to the lessee for any reason, the lessor is liable 28 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 SB617 Engrossed -7- LRB9205192SMdv 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 nonexempt manner, the lessor shall be liable for 4 the tax imposed under this Act or the Service Use Tax Act, as 5 the case may be, based on the fair market value of the 6 property at the time the nonqualifying use occurs. No lessor 7 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 SB617 Engrossed -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 SB617 Engrossed -9- LRB9205192SMdv 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 the effective date of this amendatory 26 Act of the 92nd General Assembly, computers and 27 communications equipment utilized for any hospital purpose 28 and equipment used in the diagnosis, analysis, or treatment 29 of hospital patients purchased by a lessor who leases the 30 equipment, under a lease of one year or longer executed or in 31 effect at the time the lessor would otherwise be subject to 32 the tax imposed by this Act, to a hospital that has been 33 issued an active tax exemption identification number by the 34 Department under Section 1g of the Retailers' Occupation Tax SB617 Engrossed -10- LRB9205192SMdv 1 Act. If the equipment is leased in a manner that does not 2 qualify for this exemption or is used in any other nonexempt 3 manner, the lessor shall be liable for the tax imposed under 4 this Act or the Service Use Tax Act, as the case may be, 5 based on the fair market value of the property at the time 6 the nonqualifying use occurs. No lessor shall collect or 7 attempt to collect an amount (however designated) that 8 purports to reimburse that lessor for the tax imposed by this 9 Act or the Service Use Tax Act, as the case may be, if the 10 tax has not been paid by the lessor. If a lessor improperly 11 collects any such amount from the lessee, the lessee shall 12 have a legal right to claim a refund of that amount from the 13 lessor. If, however, that amount is not refunded to the 14 lessee for any reason, the lessor is liable to pay that 15 amount to the Department. This paragraph is exempt from the 16 provisions of Section 3-90. 17 (32) Beginning on the effective date of this amendatory 18 Act of the 92nd General Assembly, personal property purchased 19 by a lessor who leases the property, under a lease of one 20 year or longer executed or in effect at the time the lessor 21 would otherwise be subject to the tax imposed by this Act, to 22 a governmental body that has been issued an active sales tax 23 exemption identification number by the Department under 24 Section 1g of the Retailers' Occupation Tax Act. If the 25 property is leased in a manner that does not qualify for this 26 exemption or used in any other nonexempt manner, the lessor 27 shall be liable for the tax imposed under this Act or the 28 Service Use Tax Act, as the case may be, based on the fair 29 market value of the property at the time the nonqualifying 30 use occurs. No lessor shall collect or attempt to collect an 31 amount (however designated) that purports to reimburse that 32 lessor for the tax imposed by this Act or the Service Use Tax 33 Act, as the case may be, if the tax has not been paid by the 34 lessor. If a lessor improperly collects any such amount from SB617 Engrossed -11- LRB9205192SMdv 1 the lessee, the lessee shall have a legal right to claim a 2 refund of that amount from the lessor. If, however, that 3 amount is not refunded to the lessee for any reason, the 4 lessor is liable to pay that amount to the Department. This 5 paragraph is exempt from the provisions of Section 3-90. 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; 91-637, eff. 8-20-99; 91-644, 9 eff. 8-20-99; 91-901, eff. 1-1-01.) 10 Section 10. The Service Use Tax Act is amended by 11 changing Section 3-5 as follows: 12 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 13 Sec. 3-5. Exemptions. Use of the following tangible 14 personal property is exempt from the tax imposed by this Act: 15 (1) Personal property purchased from a corporation, 16 society, association, foundation, institution, or 17 organization, other than a limited liability company, that is 18 organized and operated as a not-for-profit service enterprise 19 for the benefit of persons 65 years of age or older if the 20 personal property was not purchased by the enterprise for the 21 purpose of resale by the enterprise. 22 (2) Personal property purchased by a non-profit Illinois 23 county fair association for use in conducting, operating, or 24 promoting the county fair. 25 (3) Personal property purchased by a not-for-profit arts 26 or cultural organization that establishes, by proof required 27 by the Department by rule, that it has received an exemption 28 under Section 501(c)(3) of the Internal Revenue Code and that 29 is organized and operated for the presentation or support of 30 arts or cultural programming, activities, or services. These 31 organizations include, but are not limited to, music and 32 dramatic arts organizations such as symphony orchestras and SB617 Engrossed -12- LRB9205192SMdv 1 theatrical groups, arts and cultural service organizations, 2 local arts councils, visual arts organizations, and media 3 arts organizations. 4 (4) Legal tender, currency, medallions, or gold or 5 silver coinage issued by the State of Illinois, the 6 government of the United States of America, or the government 7 of any foreign country, and bullion. 8 (5) Graphic arts machinery and equipment, including 9 repair and replacement parts, both new and used, and 10 including that manufactured on special order or purchased for 11 lease, certified by the purchaser to be used primarily for 12 graphic arts production. 13 (6) Personal property purchased from a teacher-sponsored 14 student organization affiliated with an elementary or 15 secondary school located in Illinois. 16 (7) Farm machinery and equipment, both new and used, 17 including that manufactured on special order, certified by 18 the purchaser to be used primarily for production agriculture 19 or State or federal agricultural programs, including 20 individual replacement parts for the machinery and equipment, 21 including machinery and equipment purchased for lease, and 22 including implements of husbandry defined in Section 1-130 of 23 the Illinois Vehicle Code, farm machinery and agricultural 24 chemical and fertilizer spreaders, and nurse wagons required 25 to be registered under Section 3-809 of the Illinois Vehicle 26 Code, but excluding other motor vehicles required to be 27 registered under the Illinois Vehicle Code. Horticultural 28 polyhouses or hoop houses used for propagating, growing, or 29 overwintering plants shall be considered farm machinery and 30 equipment under this item (7). Agricultural chemical tender 31 tanks and dry boxes shall include units sold separately from 32 a motor vehicle required to be licensed and units sold 33 mounted on a motor vehicle required to be licensed if the 34 selling price of the tender is separately stated. SB617 Engrossed -13- LRB9205192SMdv 1 Farm machinery and equipment shall include precision 2 farming equipment that is installed or purchased to be 3 installed on farm machinery and equipment including, but not 4 limited to, tractors, harvesters, sprayers, planters, 5 seeders, or spreaders. Precision farming equipment includes, 6 but is not limited to, soil testing sensors, computers, 7 monitors, software, global positioning and mapping systems, 8 and other such equipment. 9 Farm machinery and equipment also includes computers, 10 sensors, software, and related equipment used primarily in 11 the computer-assisted operation of production agriculture 12 facilities, equipment, and activities such as, but not 13 limited to, the collection, monitoring, and correlation of 14 animal and crop data for the purpose of formulating animal 15 diets and agricultural chemicals. This item (7) is exempt 16 from the provisions of Section 3-75. 17 (8) Fuel and petroleum products sold to or used by an 18 air common carrier, certified by the carrier to be used for 19 consumption, shipment, or storage in the conduct of its 20 business as an air common carrier, for a flight destined for 21 or returning from a location or locations outside the United 22 States without regard to previous or subsequent domestic 23 stopovers. 24 (9) Proceeds of mandatory service charges separately 25 stated on customers' bills for the purchase and consumption 26 of food and beverages acquired as an incident to the purchase 27 of a service from a serviceman, to the extent that the 28 proceeds of the service charge are in fact turned over as 29 tips or as a substitute for tips to the employees who 30 participate directly in preparing, serving, hosting or 31 cleaning up the food or beverage function with respect to 32 which the service charge is imposed. 33 (10) Oil field exploration, drilling, and production 34 equipment, including (i) rigs and parts of rigs, rotary rigs, SB617 Engrossed -14- 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 (11) Proceeds from the sale of photoprocessing machinery 9 and equipment, including repair and replacement parts, both 10 new and used, including that manufactured on special order, 11 certified by the purchaser to be used primarily for 12 photoprocessing, and including photoprocessing machinery and 13 equipment purchased for lease. 14 (12) 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 (13) Semen used for artificial insemination of livestock 20 for direct agricultural production. 21 (14) Horses, or interests in horses, registered with and 22 meeting the requirements of any of the Arabian Horse Club 23 Registry of America, Appaloosa Horse Club, American Quarter 24 Horse Association, United States Trotting Association, or 25 Jockey Club, as appropriate, used for purposes of breeding or 26 racing for prizes. 27 (15) Computers and communications equipment utilized for 28 any hospital purpose and equipment used in the diagnosis, 29 analysis, or treatment of hospital patients purchased by a 30 lessor who leases the equipment, under a lease of one year or 31 longer executed or in effect at the time the lessor would 32 otherwise be subject to the tax imposed by this Act, to a 33 hospital that has been issued an active tax exemption 34 identification number by the Department under Section 1g of SB617 Engrossed -15- LRB9205192SMdv 1 the Retailers' Occupation Tax Act. If the equipment is leased 2 in a manner that does not qualify for this exemption or is 3 used in any other non-exempt manner, the lessor shall be 4 liable for the tax imposed under this Act or the Use Tax Act, 5 as the case may be, based on the fair market value of the 6 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 Use Tax Act, as the case may 10 be, if the tax has not been paid by the lessor. If a lessor 11 improperly collects any such amount from the lessee, the 12 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 (16) Personal property purchased by a lessor who leases 17 the property, under a lease of one year or longer executed or 18 in effect at the time the lessor would otherwise be subject 19 to the tax imposed by this Act, to a governmental body that 20 has been issued an active tax exemption identification number 21 by the Department under Section 1g of the Retailers' 22 Occupation Tax Act. If the property is leased in a manner 23 that does not qualify for this exemption or is used in any 24 other non-exempt manner, the lessor shall be liable for the 25 tax imposed under this Act or the Use Tax Act, as the case 26 may be, based on the fair market value of the property at the 27 time the non-qualifying use occurs. No lessor shall collect 28 or attempt to collect an amount (however designated) that 29 purports to reimburse that lessor for the tax imposed by this 30 Act or the Use Tax Act, as the case may be, if the tax has 31 not been paid by the lessor. If a lessor improperly collects 32 any such amount from the lessee, the lessee shall have a 33 legal right to claim a refund of that amount from the lessor. 34 If, however, that amount is not refunded to the lessee for SB617 Engrossed -16- LRB9205192SMdv 1 any reason, the lessor is liable to pay that amount to the 2 Department. 3 (17) Beginning with taxable years ending on or after 4 December 31, 1995 and ending with taxable years ending on or 5 before December 31, 2004, personal property that is donated 6 for disaster relief to be used in a State or federally 7 declared disaster area in Illinois or bordering Illinois by a 8 manufacturer or retailer that is registered in this State to 9 a corporation, society, association, foundation, or 10 institution that has been issued a sales tax exemption 11 identification number by the Department that assists victims 12 of the disaster who reside within the declared disaster area. 13 (18) Beginning with taxable years ending on or after 14 December 31, 1995 and ending with taxable years ending on or 15 before December 31, 2004, personal property that is used in 16 the performance of infrastructure repairs in this State, 17 including but not limited to municipal roads and streets, 18 access roads, bridges, sidewalks, waste disposal systems, 19 water and sewer line extensions, water distribution and 20 purification facilities, storm water drainage and retention 21 facilities, and sewage treatment facilities, resulting from a 22 State or federally declared disaster in Illinois or bordering 23 Illinois when such repairs are initiated on facilities 24 located in the declared disaster area within 6 months after 25 the disaster. 26 (19) Beginning July 1, 1999, game or game birds 27 purchased at a "game breeding and hunting preserve area" or 28 an "exotic game hunting area" as those terms are used in the 29 Wildlife Code or at a hunting enclosure approved through 30 rules adopted by the Department of Natural Resources. This 31 paragraph is exempt from the provisions of Section 3-75. 32 (20)(19)A motor vehicle, as that term is defined in 33 Section 1-146 of the Illinois Vehicle Code, that is donated 34 to a corporation, limited liability company, society, SB617 Engrossed -17- LRB9205192SMdv 1 association, foundation, or institution that is determined by 2 the Department to be organized and operated exclusively for 3 educational purposes. For purposes of this exemption, "a 4 corporation, limited liability company, society, association, 5 foundation, or institution organized and operated exclusively 6 for educational purposes" means all tax-supported public 7 schools, private schools that offer systematic instruction in 8 useful branches of learning by methods common to public 9 schools and that compare favorably in their scope and 10 intensity with the course of study presented in tax-supported 11 schools, and vocational or technical schools or institutes 12 organized and operated exclusively to provide a course of 13 study of not less than 6 weeks duration and designed to 14 prepare individuals to follow a trade or to pursue a manual, 15 technical, mechanical, industrial, business, or commercial 16 occupation. 17 (21)(20)Beginning January 1, 2000, personal property, 18 including food, purchased through fundraising events for the 19 benefit of a public or private elementary or secondary 20 school, a group of those schools, or one or more school 21 districts if the events are sponsored by an entity recognized 22 by the school district that consists primarily of volunteers 23 and includes parents and teachers of the school children. 24 This paragraph does not apply to fundraising events (i) for 25 the benefit of private home instruction or (ii) for which the 26 fundraising entity purchases the personal property sold at 27 the events from another individual or entity that sold the 28 property for the purpose of resale by the fundraising entity 29 and that profits from the sale to the fundraising entity. 30 This paragraph is exempt from the provisions of Section 3-75. 31 (22)(19)Beginning January 1, 2000, new or used 32 automatic vending machines that prepare and serve hot food 33 and beverages, including coffee, soup, and other items, and 34 replacement parts for these machines. This paragraph is SB617 Engrossed -18- LRB9205192SMdv 1 exempt from the provisions of Section 3-75. 2 (23) Beginning on the effective date of this amendatory 3 Act of the 92nd General Assembly, computers and 4 communications equipment utilized for any hospital purpose 5 and equipment used in the diagnosis, analysis, or treatment 6 of hospital patients purchased by a lessor who leases the 7 equipment, under a lease of one year or longer executed or in 8 effect at the time the lessor would otherwise be subject to 9 the tax imposed by this Act, to a hospital that has been 10 issued an active tax exemption identification number by the 11 Department under Section 1g of the Retailers' Occupation Tax 12 Act. If the equipment is leased in a manner that does not 13 qualify for this exemption or is used in any other nonexempt 14 manner, the lessor shall be liable for the tax imposed under 15 this Act or the Use Tax Act, as the case may be, based on the 16 fair market value of the property at the time the 17 nonqualifying use occurs. No lessor shall collect or attempt 18 to collect an amount (however designated) that purports to 19 reimburse that lessor for the tax imposed by this Act or the 20 Use Tax Act, as the case may be, if the tax has not been paid 21 by the lessor. If a lessor improperly collects any such 22 amount from the lessee, the lessee shall have a legal right 23 to claim a refund of that amount from the lessor. If, 24 however, that amount is not refunded to the lessee for any 25 reason, the lessor is liable to pay that amount to the 26 Department. This paragraph is exempt from the provisions of 27 Section 3-75. 28 (24) Beginning on the effective date of this amendatory 29 Act of the 92nd General Assembly, personal property purchased 30 by a lessor who leases the property, under a lease of one 31 year or longer executed or in effect at the time the lessor 32 would otherwise be subject to the tax imposed by this Act, to 33 a governmental body that has been issued an active tax 34 exemption identification number by the Department under SB617 Engrossed -19- LRB9205192SMdv 1 Section 1g of the Retailers' Occupation Tax Act. If the 2 property is leased in a manner that does not qualify for this 3 exemption or is used in any other nonexempt manner, the 4 lessor shall be liable for the tax imposed under this Act or 5 the Use Tax Act, as the case may be, based on the fair market 6 value of the property at the time the nonqualifying use 7 occurs. No lessor shall collect or attempt to collect an 8 amount (however designated) that purports to reimburse that 9 lessor for the tax imposed by this Act or the Use Tax Act, as 10 the case may be, if the tax has not been paid by the lessor. 11 If a lessor improperly collects any such amount from the 12 lessee, the lessee shall have a legal right to claim a refund 13 of that amount from the lessor. If, however, that amount is 14 not refunded to the lessee for any reason, the lessor is 15 liable to pay that amount to the Department. This paragraph 16 is exempt from the provisions of Section 3-75. 17 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 18 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 19 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 20 eff. 8-20-99; revised 9-29-99.) 21 Section 15. The Service Occupation Tax Act is amended by 22 changing Section 3-5 as follows: 23 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 24 Sec. 3-5. Exemptions. The following tangible personal 25 property is exempt from the tax imposed by this Act: 26 (1) Personal property sold by a corporation, society, 27 association, foundation, institution, or organization, other 28 than a limited liability company, that is organized and 29 operated as a not-for-profit service enterprise for the 30 benefit of persons 65 years of age or older if the personal 31 property was not purchased by the enterprise for the purpose 32 of resale by the enterprise. SB617 Engrossed -20- LRB9205192SMdv 1 (2) Personal property purchased by a not-for-profit 2 Illinois county fair association for use in conducting, 3 operating, or promoting the county fair. 4 (3) Personal property purchased by any not-for-profit 5 arts or cultural organization that establishes, by proof 6 required by the Department by rule, that it has received an 7 exemption under Section 501(c)(3) of the Internal Revenue 8 Code and that is organized and operated for the presentation 9 or support of arts or cultural programming, activities, or 10 services. These organizations include, but are not limited 11 to, music and dramatic arts organizations such as symphony 12 orchestras and theatrical groups, arts and cultural service 13 organizations, local arts councils, visual arts 14 organizations, and media arts organizations. 15 (4) 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 (5) Graphic arts machinery and equipment, including 20 repair and replacement parts, both new and used, and 21 including that manufactured on special order or purchased for 22 lease, certified by the purchaser to be used primarily for 23 graphic arts production. 24 (6) Personal property sold by a teacher-sponsored 25 student organization affiliated with an elementary or 26 secondary school located in Illinois. 27 (7) Farm machinery and equipment, both new and used, 28 including that manufactured on special order, certified by 29 the purchaser to be used primarily for production agriculture 30 or State or federal agricultural programs, including 31 individual replacement parts for the machinery and equipment, 32 including machinery and equipment purchased for lease, and 33 including implements of husbandry defined in Section 1-130 of 34 the Illinois Vehicle Code, farm machinery and agricultural SB617 Engrossed -21- LRB9205192SMdv 1 chemical and fertilizer spreaders, and nurse wagons required 2 to be registered under Section 3-809 of the Illinois Vehicle 3 Code, but excluding other motor vehicles required to be 4 registered under the Illinois Vehicle Code. Horticultural 5 polyhouses or hoop houses used for propagating, growing, or 6 overwintering plants shall be considered farm machinery and 7 equipment under this item (7). Agricultural chemical tender 8 tanks and dry boxes shall include units sold separately from 9 a motor vehicle required to be licensed and units sold 10 mounted on a motor vehicle required to be licensed if the 11 selling price of the tender is separately stated. 12 Farm machinery and equipment shall include precision 13 farming equipment that is installed or purchased to be 14 installed on farm machinery and equipment including, but not 15 limited to, tractors, harvesters, sprayers, planters, 16 seeders, or spreaders. Precision farming equipment includes, 17 but is not limited to, soil testing sensors, computers, 18 monitors, software, global positioning and mapping systems, 19 and other such equipment. 20 Farm machinery and equipment also includes computers, 21 sensors, software, and related equipment used primarily in 22 the computer-assisted operation of production agriculture 23 facilities, equipment, and activities such as, but not 24 limited to, the collection, monitoring, and correlation of 25 animal and crop data for the purpose of formulating animal 26 diets and agricultural chemicals. This item (7) is exempt 27 from the provisions of Section 3-55. 28 (8) Fuel and petroleum products sold to or used by an 29 air common carrier, certified by the carrier to be used for 30 consumption, shipment, or storage in the conduct of its 31 business as an air common carrier, for a flight destined for 32 or returning from a location or locations outside the United 33 States without regard to previous or subsequent domestic 34 stopovers. SB617 Engrossed -22- LRB9205192SMdv 1 (9) Proceeds of mandatory service charges separately 2 stated on customers' bills for the purchase and consumption 3 of food and beverages, to the extent that the proceeds of the 4 service charge are in fact turned over as tips or as a 5 substitute for tips to the employees who participate directly 6 in preparing, serving, hosting or cleaning up the food or 7 beverage function with respect to which the service charge is 8 imposed. 9 (10) Oil field exploration, drilling, and production 10 equipment, including (i) rigs and parts of rigs, rotary rigs, 11 cable tool rigs, and workover rigs, (ii) pipe and tubular 12 goods, including casing and drill strings, (iii) pumps and 13 pump-jack units, (iv) storage tanks and flow lines, (v) any 14 individual replacement part for oil field exploration, 15 drilling, and production equipment, and (vi) machinery and 16 equipment purchased for lease; but excluding motor vehicles 17 required to be registered under the Illinois Vehicle Code. 18 (11) Photoprocessing machinery and equipment, including 19 repair and replacement parts, both new and used, including 20 that manufactured on special order, certified by the 21 purchaser to be used primarily for photoprocessing, and 22 including photoprocessing machinery and equipment purchased 23 for lease. 24 (12) Coal exploration, mining, offhighway hauling, 25 processing, maintenance, and reclamation equipment, including 26 replacement parts and equipment, and including equipment 27 purchased for lease, but excluding motor vehicles required to 28 be registered under the Illinois Vehicle Code. 29 (13) Food for human consumption that is to be consumed 30 off the premises where it is sold (other than alcoholic 31 beverages, soft drinks and food that has been prepared for 32 immediate consumption) and prescription and non-prescription 33 medicines, drugs, medical appliances, and insulin, urine 34 testing materials, syringes, and needles used by diabetics, SB617 Engrossed -23- LRB9205192SMdv 1 for human use, when purchased for use by a person receiving 2 medical assistance under Article 5 of the Illinois Public Aid 3 Code who resides in a licensed long-term care facility, as 4 defined in the Nursing Home Care Act. 5 (14) Semen used for artificial insemination of livestock 6 for direct agricultural production. 7 (15) Horses, or interests in horses, registered with and 8 meeting the requirements of any of the Arabian Horse Club 9 Registry of America, Appaloosa Horse Club, American Quarter 10 Horse Association, United States Trotting Association, or 11 Jockey Club, as appropriate, used for purposes of breeding or 12 racing for prizes. 13 (16) Computers and communications equipment utilized for 14 any hospital purpose and equipment used in the diagnosis, 15 analysis, or treatment of hospital patients sold to a lessor 16 who leases the equipment, under a lease of one year or longer 17 executed or in effect at the time of the purchase, to a 18 hospital that has been issued an active tax exemption 19 identification number by the Department under Section 1g of 20 the Retailers' Occupation Tax Act. 21 (17) Personal property sold to a lessor who leases the 22 property, under a lease of one year or longer executed or in 23 effect at the time of the purchase, to a governmental body 24 that has been issued an active tax exemption identification 25 number by the Department under Section 1g of the Retailers' 26 Occupation Tax Act. 27 (18) Beginning with taxable years ending on or after 28 December 31, 1995 and ending with taxable years ending on or 29 before December 31, 2004, personal property that is donated 30 for disaster relief to be used in a State or federally 31 declared disaster area in Illinois or bordering Illinois by a 32 manufacturer or retailer that is registered in this State to 33 a corporation, society, association, foundation, or 34 institution that has been issued a sales tax exemption SB617 Engrossed -24- LRB9205192SMdv 1 identification number by the Department that assists victims 2 of the disaster who reside within the declared disaster area. 3 (19) Beginning with taxable years ending on or after 4 December 31, 1995 and ending with taxable years ending on or 5 before December 31, 2004, personal property that is used in 6 the performance of infrastructure repairs in this State, 7 including but not limited to municipal roads and streets, 8 access roads, bridges, sidewalks, waste disposal systems, 9 water and sewer line extensions, water distribution and 10 purification facilities, storm water drainage and retention 11 facilities, and sewage treatment facilities, resulting from a 12 State or federally declared disaster in Illinois or bordering 13 Illinois when such repairs are initiated on facilities 14 located in the declared disaster area within 6 months after 15 the disaster. 16 (20) Beginning July 1, 1999, game or game birds sold at 17 a "game breeding and hunting preserve area" or an "exotic 18 game hunting area" as those terms are used in the Wildlife 19 Code or at a hunting enclosure approved through rules adopted 20 by the Department of Natural Resources. This paragraph is 21 exempt from the provisions of Section 3-55. 22 (21)(20)A motor vehicle, as that term is defined in 23 Section 1-146 of the Illinois Vehicle Code, that is donated 24 to a corporation, limited liability company, society, 25 association, foundation, or institution that is determined by 26 the Department to be organized and operated exclusively for 27 educational purposes. For purposes of this exemption, "a 28 corporation, limited liability company, society, association, 29 foundation, or institution organized and operated exclusively 30 for educational purposes" means all tax-supported public 31 schools, private schools that offer systematic instruction in 32 useful branches of learning by methods common to public 33 schools and that compare favorably in their scope and 34 intensity with the course of study presented in tax-supported SB617 Engrossed -25- LRB9205192SMdv 1 schools, and vocational or technical schools or institutes 2 organized and operated exclusively to provide a course of 3 study of not less than 6 weeks duration and designed to 4 prepare individuals to follow a trade or to pursue a manual, 5 technical, mechanical, industrial, business, or commercial 6 occupation. 7 (22)(21)Beginning January 1, 2000, personal property, 8 including food, purchased through fundraising events for the 9 benefit of a public or private elementary or secondary 10 school, a group of those schools, or one or more school 11 districts if the events are sponsored by an entity recognized 12 by the school district that consists primarily of volunteers 13 and includes parents and teachers of the school children. 14 This paragraph does not apply to fundraising events (i) for 15 the benefit of private home instruction or (ii) for which the 16 fundraising entity purchases the personal property sold at 17 the events from another individual or entity that sold the 18 property for the purpose of resale by the fundraising entity 19 and that profits from the sale to the fundraising entity. 20 This paragraph is exempt from the provisions of Section 3-55. 21 (23)(20)Beginning January 1, 2000, new or used 22 automatic vending machines that prepare and serve hot food 23 and beverages, including coffee, soup, and other items, and 24 replacement parts for these machines. This paragraph is 25 exempt from the provisions of Section 3-55. 26 (24) Beginning on the effective date of this amendatory 27 Act of the 92nd General Assembly, computers and 28 communications equipment utilized for any hospital purpose 29 and equipment used in the diagnosis, analysis, or treatment 30 of hospital patients sold to a lessor who leases the 31 equipment, under a lease of one year or longer executed or in 32 effect at the time of the purchase, to a hospital that has 33 been issued an active tax exemption identification number by 34 the Department under Section 1g of the Retailers' Occupation SB617 Engrossed -26- LRB9205192SMdv 1 Tax Act. This paragraph is exempt from the provisions of 2 Section 3-55. 3 (25) Beginning on the effective date of this amendatory 4 Act of the 92nd General Assembly, personal property sold to a 5 lessor who leases the property, under a lease of one year or 6 longer executed or in effect at the time of the purchase, to 7 a governmental body that has been issued an active tax 8 exemption identification number by the Department under 9 Section 1g of the Retailers' Occupation Tax Act. This 10 paragraph is exempt from the provisions of Section 3-55. 11 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 12 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 13 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, 14 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.) 15 Section 20. The Retailers' Occupation Tax Act is amended 16 by changing Section 2-5 as follows: 17 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 18 Sec. 2-5. Exemptions. Gross receipts from proceeds from 19 the sale of the following tangible personal property are 20 exempt from the tax imposed by this Act: 21 (1) Farm chemicals. 22 (2) Farm machinery and equipment, both new and used, 23 including that manufactured on special order, certified by 24 the purchaser to be used primarily for production agriculture 25 or State or federal agricultural programs, including 26 individual replacement parts for the machinery and equipment, 27 including machinery and equipment purchased for lease, and 28 including implements of husbandry defined in Section 1-130 of 29 the Illinois Vehicle Code, farm machinery and agricultural 30 chemical and fertilizer spreaders, and nurse wagons required 31 to be registered under Section 3-809 of the Illinois Vehicle 32 Code, but excluding other motor vehicles required to be SB617 Engrossed -27- LRB9205192SMdv 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 (2). 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 2-70. 25 (3) Distillation machinery and equipment, sold as a unit 26 or kit, assembled or installed by the retailer, certified by 27 the user to be used only for the production of ethyl alcohol 28 that will be used for consumption as motor fuel or as a 29 component of motor fuel for the personal use of the user, and 30 not subject to sale or resale. 31 (4) Graphic arts machinery and equipment, including 32 repair and replacement parts, both new and used, and 33 including that manufactured on special order or purchased for 34 lease, certified by the purchaser to be used primarily for SB617 Engrossed -28- LRB9205192SMdv 1 graphic arts production. 2 (5) A motor vehicle of the first division, a motor 3 vehicle of the second division that is a self-contained motor 4 vehicle designed or permanently converted to provide living 5 quarters for recreational, camping, or travel use, with 6 direct walk through access to the living quarters from the 7 driver's seat, or a motor vehicle of the second division that 8 is of the van configuration designed for the transportation 9 of not less than 7 nor more than 16 passengers, as defined in 10 Section 1-146 of the Illinois Vehicle Code, that is used for 11 automobile renting, as defined in the Automobile Renting 12 Occupation and Use Tax Act. 13 (6) Personal property sold by a teacher-sponsored 14 student organization affiliated with an elementary or 15 secondary school located in Illinois. 16 (7) Proceeds of that portion of the selling price of a 17 passenger car the sale of which is subject to the Replacement 18 Vehicle Tax. 19 (8) Personal property sold to an Illinois county fair 20 association for use in conducting, operating, or promoting 21 the county fair. 22 (9) Personal property sold to a not-for-profit arts or 23 cultural organization that establishes, by proof required by 24 the Department by rule, that it has received an exemption 25 under Section 501(c)(3) of the Internal Revenue Code and that 26 is organized and operated for the presentation or support of 27 arts or cultural programming, activities, or services. These 28 organizations include, but are not limited to, music and 29 dramatic arts organizations such as symphony orchestras and 30 theatrical groups, arts and cultural service organizations, 31 local arts councils, visual arts organizations, and media 32 arts organizations. 33 (10) Personal property sold by a corporation, society, 34 association, foundation, institution, or organization, other SB617 Engrossed -29- LRB9205192SMdv 1 than a limited liability company, that is organized and 2 operated as a not-for-profit service enterprise for the 3 benefit of persons 65 years of age or older if the personal 4 property was not purchased by the enterprise for the purpose 5 of resale by the enterprise. 6 (11) Personal property sold to a governmental body, to a 7 corporation, society, association, foundation, or institution 8 organized and operated exclusively for charitable, religious, 9 or educational purposes, or to a not-for-profit corporation, 10 society, association, foundation, institution, or 11 organization that has no compensated officers or employees 12 and that is organized and operated primarily for the 13 recreation of persons 55 years of age or older. A limited 14 liability company may qualify for the exemption under this 15 paragraph only if the limited liability company is organized 16 and operated exclusively for educational purposes. On and 17 after July 1, 1987, however, no entity otherwise eligible for 18 this exemption shall make tax-free purchases unless it has an 19 active identification number issued by the Department. 20 (12) Personal property sold to interstate carriers for 21 hire for use as rolling stock moving in interstate commerce 22 or to lessors under leases of one year or longer executed or 23 in effect at the time of purchase by interstate carriers for 24 hire for use as rolling stock moving in interstate commerce 25 and equipment operated by a telecommunications provider, 26 licensed as a common carrier by the Federal Communications 27 Commission, which is permanently installed in or affixed to 28 aircraft moving in interstate commerce. 29 (13) Proceeds from sales to owners, lessors, or shippers 30 of tangible personal property that is utilized by interstate 31 carriers for hire for use as rolling stock moving in 32 interstate commerce and equipment operated by a 33 telecommunications provider, licensed as a common carrier by 34 the Federal Communications Commission, which is permanently SB617 Engrossed -30- LRB9205192SMdv 1 installed in or affixed to aircraft moving in interstate 2 commerce. 3 (14) Machinery and equipment that will be used by the 4 purchaser, or a lessee of the purchaser, primarily in the 5 process of manufacturing or assembling tangible personal 6 property for wholesale or retail sale or lease, whether the 7 sale or lease is made directly by the manufacturer or by some 8 other person, whether the materials used in the process are 9 owned by the manufacturer or some other person, or whether 10 the sale or lease is made apart from or as an incident to the 11 seller's engaging in the service occupation of producing 12 machines, tools, dies, jigs, patterns, gauges, or other 13 similar items of no commercial value on special order for a 14 particular purchaser. 15 (15) Proceeds of mandatory service charges separately 16 stated on customers' bills for purchase and consumption of 17 food and beverages, to the extent that the proceeds of the 18 service charge are in fact turned over as tips or as a 19 substitute for tips to the employees who participate directly 20 in preparing, serving, hosting or cleaning up the food or 21 beverage function with respect to which the service charge is 22 imposed. 23 (16) Petroleum products sold to a purchaser if the 24 seller is prohibited by federal law from charging tax to the 25 purchaser. 26 (17) Tangible personal property sold to a common carrier 27 by rail or motor that receives the physical possession of the 28 property in Illinois and that transports the property, or 29 shares with another common carrier in the transportation of 30 the property, out of Illinois on a standard uniform bill of 31 lading showing the seller of the property as the shipper or 32 consignor of the property to a destination outside Illinois, 33 for use outside Illinois. 34 (18) Legal tender, currency, medallions, or gold or SB617 Engrossed -31- LRB9205192SMdv 1 silver coinage issued by the State of Illinois, the 2 government of the United States of America, or the government 3 of any foreign country, and bullion. 4 (19) Oil field exploration, drilling, and production 5 equipment, including (i) rigs and parts of rigs, rotary rigs, 6 cable tool rigs, and workover rigs, (ii) pipe and tubular 7 goods, including casing and drill strings, (iii) pumps and 8 pump-jack units, (iv) storage tanks and flow lines, (v) any 9 individual replacement part for oil field exploration, 10 drilling, and production equipment, and (vi) machinery and 11 equipment purchased for lease; but excluding motor vehicles 12 required to be registered under the Illinois Vehicle Code. 13 (20) Photoprocessing machinery and equipment, including 14 repair and replacement parts, both new and used, including 15 that manufactured on special order, certified by the 16 purchaser to be used primarily for photoprocessing, and 17 including photoprocessing machinery and equipment purchased 18 for lease. 19 (21) Coal exploration, mining, offhighway hauling, 20 processing, maintenance, and reclamation equipment, including 21 replacement parts and equipment, and including equipment 22 purchased for lease, but excluding motor vehicles required to 23 be registered under the Illinois Vehicle Code. 24 (22) Fuel and petroleum products sold to or used by an 25 air carrier, certified by the carrier to be used for 26 consumption, shipment, or storage in the conduct of its 27 business as an air common carrier, for a flight destined for 28 or returning from a location or locations outside the United 29 States without regard to previous or subsequent domestic 30 stopovers. 31 (23) A transaction in which the purchase order is 32 received by a florist who is located outside Illinois, but 33 who has a florist located in Illinois deliver the property to 34 the purchaser or the purchaser's donee in Illinois. SB617 Engrossed -32- LRB9205192SMdv 1 (24) Fuel consumed or used in the operation of ships, 2 barges, or vessels that are used primarily in or for the 3 transportation of property or the conveyance of persons for 4 hire on rivers bordering on this State if the fuel is 5 delivered by the seller to the purchaser's barge, ship, or 6 vessel while it is afloat upon that bordering river. 7 (25) A motor vehicle sold in this State to a nonresident 8 even though the motor vehicle is delivered to the nonresident 9 in this State, if the motor vehicle is not to be titled in 10 this State, and if a driveaway decal permit is issued to the 11 motor vehicle as provided in Section 3-603 of the Illinois 12 Vehicle Code or if the nonresident purchaser has vehicle 13 registration plates to transfer to the motor vehicle upon 14 returning to his or her home state. The issuance of the 15 driveaway decal permit or having the out-of-state 16 registration plates to be transferred is prima facie evidence 17 that the motor vehicle will not be titled in this State. 18 (26) Semen used for artificial insemination of livestock 19 for direct agricultural production. 20 (27) 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 (28) Computers and communications equipment utilized for 27 any hospital purpose and equipment used in the diagnosis, 28 analysis, or treatment of hospital patients sold to a lessor 29 who leases the equipment, under a lease of one year or longer 30 executed or in effect at the time of the purchase, to a 31 hospital that has been issued an active tax exemption 32 identification number by the Department under Section 1g of 33 this Act. 34 (29) Personal property sold to a lessor who leases the SB617 Engrossed -33- LRB9205192SMdv 1 property, under a lease of one year or longer executed or in 2 effect at the time of the purchase, to a governmental body 3 that has been issued an active tax exemption identification 4 number by the Department under Section 1g of this Act. 5 (30) Beginning with taxable years ending on or after 6 December 31, 1995 and ending with taxable years ending on or 7 before December 31, 2004, personal property that is donated 8 for disaster relief to be used in a State or federally 9 declared disaster area in Illinois or bordering Illinois by a 10 manufacturer or retailer that is registered in this State to 11 a corporation, society, association, foundation, or 12 institution that has been issued a sales tax exemption 13 identification number by the Department that assists victims 14 of the disaster who reside within the declared disaster area. 15 (31) Beginning with taxable years ending on or after 16 December 31, 1995 and ending with taxable years ending on or 17 before December 31, 2004, personal property that is used in 18 the performance of infrastructure repairs in this State, 19 including but not limited to municipal roads and streets, 20 access roads, bridges, sidewalks, waste disposal systems, 21 water and sewer line extensions, water distribution and 22 purification facilities, storm water drainage and retention 23 facilities, and sewage treatment facilities, resulting from a 24 State or federally declared disaster in Illinois or bordering 25 Illinois when such repairs are initiated on facilities 26 located in the declared disaster area within 6 months after 27 the disaster. 28 (32) Beginning July 1, 1999, game or game birds sold at 29 a "game breeding and hunting preserve area" or an "exotic 30 game hunting area" as those terms are used in the Wildlife 31 Code or at a hunting enclosure approved through rules adopted 32 by the Department of Natural Resources. This paragraph is 33 exempt from the provisions of Section 2-70. 34 (33)(32)A motor vehicle, as that term is defined in SB617 Engrossed -34- LRB9205192SMdv 1 Section 1-146 of the Illinois Vehicle Code, that is donated 2 to a corporation, limited liability company, society, 3 association, foundation, or institution that is determined by 4 the Department to be organized and operated exclusively for 5 educational purposes. For purposes of this exemption, "a 6 corporation, limited liability company, society, association, 7 foundation, or institution organized and operated exclusively 8 for educational purposes" means all tax-supported public 9 schools, private schools that offer systematic instruction in 10 useful branches of learning by methods common to public 11 schools and that compare favorably in their scope and 12 intensity with the course of study presented in tax-supported 13 schools, and vocational or technical schools or institutes 14 organized and operated exclusively to provide a course of 15 study of not less than 6 weeks duration and designed to 16 prepare individuals to follow a trade or to pursue a manual, 17 technical, mechanical, industrial, business, or commercial 18 occupation. 19 (34)(33)Beginning January 1, 2000, personal property, 20 including food, purchased through fundraising events for the 21 benefit of a public or private elementary or secondary 22 school, a group of those schools, or one or more school 23 districts if the events are sponsored by an entity recognized 24 by the school district that consists primarily of volunteers 25 and includes parents and teachers of the school children. 26 This paragraph does not apply to fundraising events (i) for 27 the benefit of private home instruction or (ii) for which the 28 fundraising entity purchases the personal property sold at 29 the events from another individual or entity that sold the 30 property for the purpose of resale by the fundraising entity 31 and that profits from the sale to the fundraising entity. 32 This paragraph is exempt from the provisions of Section 2-70. 33 (35)(32)Beginning January 1, 2000, new or used 34 automatic vending machines that prepare and serve hot food SB617 Engrossed -35- LRB9205192SMdv 1 and beverages, including coffee, soup, and other items, and 2 replacement parts for these machines. This paragraph is 3 exempt from the provisions of Section 2-70. 4 (36) Beginning on the effective date of this amendatory 5 Act of the 92nd General Assembly, computers and 6 communications equipment utilized for any hospital purpose 7 and equipment used in the diagnosis, analysis, or treatment 8 of hospital patients sold to a lessor who leases the 9 equipment, under a lease of one year or longer executed or in 10 effect at the time of the purchase, to a hospital that has 11 been issued an active tax exemption identification number by 12 the Department under Section 1g of this Act. This paragraph 13 is exempt from the provisions of Section 2-70. 14 (37) Beginning on the effective date of this amendatory 15 Act of the 92nd General Assembly, personal property sold to a 16 lessor who leases the property, under a lease of one year or 17 longer executed or in effect at the time of the purchase, to 18 a governmental body that has been issued an active tax 19 exemption identification number by the Department under 20 Section 1g of this Act. This paragraph is exempt from the 21 provisions of Section 2-70. 22 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98; 23 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff. 24 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533, 25 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99; 26 revised 9-28-99.) 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.