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92_SB0730sam001
LRB9204809SMdvam01
1 AMENDMENT TO SENATE BILL 730
2 AMENDMENT NO. . Amend Senate Bill 730 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Use Tax Act is amended by changing
5 Section 3-55 as follows:
6 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
7 Sec. 3-55. Multistate exemption. The tax imposed by this
8 Act does not apply to the use of tangible personal property
9 in this State under the following circumstances:
10 (a) The use, in this State, of tangible personal
11 property acquired outside this State by a nonresident
12 individual and brought into this State by the individual for
13 his or her own use while temporarily within this State or
14 while passing through this State.
15 (b) The use, in this State, of tangible personal
16 property by an interstate carrier for hire as rolling stock
17 moving in interstate commerce or by lessors under a lease of
18 one year or longer executed or in effect at the time of
19 purchase of tangible personal property by interstate carriers
20 for-hire for use as rolling stock moving in interstate
21 commerce as long as so used by the interstate carriers
22 for-hire, and equipment operated by a telecommunications
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1 provider, licensed as a common carrier by the Federal
2 Communications Commission, which is permanently installed in
3 or affixed to aircraft moving in interstate commerce.
4 (c) The use, in this State, by owners, lessors, or
5 shippers of tangible personal property that is utilized by
6 interstate carriers for hire for use as rolling stock moving
7 in interstate commerce as long as so used by the interstate
8 carriers for hire, and equipment operated by a
9 telecommunications provider, licensed as a common carrier by
10 the Federal Communications Commission, which is permanently
11 installed in or affixed to aircraft moving in interstate
12 commerce.
13 (d) The use, in this State, of tangible personal
14 property that is acquired outside this State and caused to be
15 brought into this State by a person who has already paid a
16 tax in another State in respect to the sale, purchase, or use
17 of that property, to the extent of the amount of the tax
18 properly due and paid in the other State.
19 (e) The temporary storage, in this State, of tangible
20 personal property that is acquired outside this State and
21 that, after being brought into this State and stored here
22 temporarily, is used solely outside this State or is
23 physically attached to or incorporated into other tangible
24 personal property that is used solely outside this State, or
25 is altered by converting, fabricating, manufacturing,
26 printing, processing, or shaping, and, as altered, is used
27 solely outside this State.
28 (f) The temporary storage in this State of building
29 materials and fixtures that are acquired either in this State
30 or outside this State by an Illinois registered combination
31 retailer and construction contractor, and that the purchaser
32 thereafter uses outside this State by incorporating that
33 property into real estate located outside this State.
34 (g) The use or purchase of tangible personal property by
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1 a common carrier by rail or motor that receives the physical
2 possession of the property in Illinois, and that transports
3 the property, or shares with another common carrier in the
4 transportation of the property, out of Illinois on a standard
5 uniform bill of lading showing the seller of the property as
6 the shipper or consignor of the property to a destination
7 outside Illinois, for use outside Illinois.
8 (h) The use, in this State, of a motor vehicle that was
9 sold in this State to a nonresident, even though the motor
10 vehicle is delivered to the nonresident in this State, if the
11 motor vehicle is not to be titled in this State, and if a
12 driveaway decal permit is issued to the motor vehicle as
13 provided in Section 3-603 of the Illinois Vehicle Code or if
14 the nonresident purchaser has vehicle registration plates to
15 transfer to the motor vehicle upon returning to his or her
16 home state. The issuance of the driveaway decal permit or
17 having the out-of-state registration plates to be transferred
18 shall be prima facie evidence that the motor vehicle will not
19 be titled in this State.
20 (i) Beginning July 1, 1999, the use, in this State, of
21 fuel acquired outside this State and brought into this State
22 in the fuel supply tanks of locomotives engaged in freight
23 hauling and passenger service for interstate commerce. This
24 subsection is exempt from the provisions of Section 3-90.
25 (j) Beginning on January 1, 2002, the use of tangible
26 personal property purchased from an Illinois retailer by a
27 taxpayer engaged in centralized purchasing activities in
28 Illinois who will, upon receipt of the property in Illinois,
29 temporarily store the property in Illinois (i) for the
30 purpose of subsequently transporting it outside this State
31 for use or consumption thereafter solely outside this State
32 or (ii) for the purpose of being processed, fabricated, or
33 manufactured into, attached to, or incorporated into other
34 tangible personal property to be transported outside this
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1 State and thereafter used or consumed solely outside this
2 State. The Director of Revenue shall, pursuant to rules
3 adopted in accordance with the Illinois Administrative
4 Procedure Act, issue a permit to any taxpayer in good
5 standing with the Department who is eligible for the
6 exemption under this subsection (j). The permit issued under
7 this subsection (j) shall authorize the holder, to the extent
8 and in the manner specified in the rules adopted under this
9 Act, to purchase tangible personal property from a retailer
10 exempt from the taxes imposed by this Act. Taxpayers shall
11 maintain all necessary books and records to substantiate the
12 use and consumption of all such tangible personal property
13 outside of the State of Illinois.
14 (Source: P.A. 90-519, eff. 6-1-98; 90-552, eff. 12-12-97;
15 91-51, eff. 6-30-99; 91-313, eff. 7-29-99; 91-587, eff.
16 8-14-99; revised 9-29-99.)
17 Section 10. The Service Use Tax Act is amended by
18 changing Section 3-45 as follows:
19 (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)
20 Sec. 3-45. Multistate exemption. The tax imposed by this
21 Act does not apply to the use of tangible personal property
22 in this State under the following circumstances:
23 (a) The use, in this State, of property acquired outside
24 this State by a nonresident individual and brought into this
25 State by the individual for his or her own use while
26 temporarily within this State or while passing through this
27 State.
28 (b) The use, in this State, of property that is acquired
29 outside this State and that is moved into this State for use
30 as rolling stock moving in interstate commerce.
31 (c) The use, in this State, of property that is acquired
32 outside this State and caused to be brought into this State
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1 by a person who has already paid a tax in another state in
2 respect to the sale, purchase, or use of that property, to
3 the extent of the amount of the tax properly due and paid in
4 the other state.
5 (d) The temporary storage, in this State, of property
6 that is acquired outside this State and that after being
7 brought into this State and stored here temporarily, is used
8 solely outside this State or is physically attached to or
9 incorporated into other property that is used solely outside
10 this State, or is altered by converting, fabricating,
11 manufacturing, printing, processing, or shaping, and, as
12 altered, is used solely outside this State.
13 (e) Beginning July 1, 1999, the use, in this State, of
14 fuel acquired outside this State and brought into this State
15 in the fuel supply tanks of locomotives engaged in freight
16 hauling and passenger service for interstate commerce. This
17 subsection is exempt from the provisions of Section 3-75.
18 (f) Beginning on January 1, 2002, the use of tangible
19 personal property purchased from an Illinois retailer by a
20 taxpayer engaged in centralized purchasing activities in
21 Illinois who will, upon receipt of the property in Illinois,
22 temporarily store the property in Illinois (i) for the
23 purpose of subsequently transporting it outside this State
24 for use or consumption thereafter solely outside this State
25 or (ii) for the purpose of being processed, fabricated, or
26 manufactured into, attached to, or incorporated into other
27 tangible personal property to be transported outside this
28 State and thereafter used or consumed solely outside this
29 State. The Director of Revenue shall, pursuant to rules
30 adopted in accordance with the Illinois Administrative
31 Procedure Act, issue a permit to any taxpayer in good
32 standing with the Department who is eligible for the
33 exemption under this subsection (f). The permit issued under
34 this subsection (f) shall authorize the holder, to the extent
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1 and in the manner specified in the rules adopted under this
2 Act, to purchase tangible personal property from a retailer
3 exempt from the taxes imposed by this Act. Taxpayers shall
4 maintain all necessary books and records to substantiate the
5 use and consumption of all such tangible personal property
6 outside of the State of Illinois.
7 (Source: P.A. 91-51, eff. 6-30-99; 91-313, eff. 7-29-99;
8 91-587, eff. 8-14-99; revised 9-29-99.)
9 Section 15. The Service Occupation Tax Act is amended by
10 changing Section 3-5 as follows:
11 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
12 Sec. 3-5. Exemptions. The following tangible personal
13 property is exempt from the tax imposed by this Act:
14 (1) Personal property sold by a corporation, society,
15 association, foundation, institution, or organization, other
16 than a limited liability company, that is organized and
17 operated as a not-for-profit service enterprise for the
18 benefit of persons 65 years of age or older if the personal
19 property was not purchased by the enterprise for the purpose
20 of resale by the enterprise.
21 (2) Personal property purchased by a not-for-profit
22 Illinois county fair association for use in conducting,
23 operating, or promoting the county fair.
24 (3) Personal property purchased by any not-for-profit
25 arts or cultural organization that establishes, by proof
26 required by the Department by rule, that it has received an
27 exemption under Section 501(c)(3) of the Internal Revenue
28 Code and that is organized and operated for the presentation
29 or support of arts or cultural programming, activities, or
30 services. These organizations include, but are not limited
31 to, music and dramatic arts organizations such as symphony
32 orchestras and theatrical groups, arts and cultural service
-7- LRB9204809SMdvam01
1 organizations, local arts councils, visual arts
2 organizations, and media 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 sold by 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 3-55.
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, to the extent that the proceeds of the
26 service charge are in fact turned over as tips or as a
27 substitute for tips to the employees who participate directly
28 in preparing, serving, hosting or cleaning up the food or
29 beverage function with respect to which the service charge is
30 imposed.
31 (10) Oil field exploration, drilling, and production
32 equipment, including (i) rigs and parts of rigs, rotary rigs,
33 cable tool rigs, and workover rigs, (ii) pipe and tubular
34 goods, including casing and drill strings, (iii) pumps and
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1 pump-jack units, (iv) storage tanks and flow lines, (v) any
2 individual replacement part for oil field exploration,
3 drilling, and production equipment, and (vi) machinery and
4 equipment purchased for lease; but excluding motor vehicles
5 required to be registered under the Illinois Vehicle Code.
6 (11) Photoprocessing machinery and equipment, including
7 repair and replacement parts, both new and used, including
8 that manufactured on special order, certified by the
9 purchaser to be used primarily for photoprocessing, and
10 including photoprocessing machinery and equipment purchased
11 for lease.
12 (12) Coal exploration, mining, offhighway hauling,
13 processing, maintenance, and reclamation equipment, including
14 replacement parts and equipment, and including equipment
15 purchased for lease, but excluding motor vehicles required to
16 be registered under the Illinois Vehicle Code.
17 (13) Food for human consumption that is to be consumed
18 off the premises where it is sold (other than alcoholic
19 beverages, soft drinks and food that has been prepared for
20 immediate consumption) and prescription and non-prescription
21 medicines, drugs, medical appliances, and insulin, urine
22 testing materials, syringes, and needles used by diabetics,
23 for human use, when purchased for use by a person receiving
24 medical assistance under Article 5 of the Illinois Public Aid
25 Code who resides in a licensed long-term care facility, as
26 defined in the Nursing Home Care Act.
27 (14) Semen used for artificial insemination of livestock
28 for direct agricultural production.
29 (15) Horses, or interests in horses, registered with and
30 meeting the requirements of any of the Arabian Horse Club
31 Registry of America, Appaloosa Horse Club, American Quarter
32 Horse Association, United States Trotting Association, or
33 Jockey Club, as appropriate, used for purposes of breeding or
34 racing for prizes.
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1 (16) Computers and communications equipment utilized for
2 any hospital purpose and equipment used in the diagnosis,
3 analysis, or treatment of hospital patients sold to a lessor
4 who leases the equipment, under a lease of one year or longer
5 executed or in effect at the time of the purchase, to a
6 hospital that has been issued an active tax exemption
7 identification number by the Department under Section 1g of
8 the Retailers' Occupation Tax Act.
9 (17) Personal property sold to a lessor who leases the
10 property, under a lease of one year or longer executed or in
11 effect at the time of the purchase, to a governmental body
12 that has been issued an active tax exemption identification
13 number by the Department under Section 1g of the Retailers'
14 Occupation Tax Act.
15 (18) Beginning with taxable years ending on or after
16 December 31, 1995 and ending with taxable years ending on or
17 before December 31, 2004, personal property that is donated
18 for disaster relief to be used in a State or federally
19 declared disaster area in Illinois or bordering Illinois by a
20 manufacturer or retailer that is registered in this State to
21 a corporation, society, association, foundation, or
22 institution that has been issued a sales tax exemption
23 identification number by the Department that assists victims
24 of the disaster who reside within the declared disaster area.
25 (19) Beginning with taxable years ending on or after
26 December 31, 1995 and ending with taxable years ending on or
27 before December 31, 2004, personal property that is used in
28 the performance of infrastructure repairs in this State,
29 including but not limited to municipal roads and streets,
30 access roads, bridges, sidewalks, waste disposal systems,
31 water and sewer line extensions, water distribution and
32 purification facilities, storm water drainage and retention
33 facilities, and sewage treatment facilities, resulting from a
34 State or federally declared disaster in Illinois or bordering
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1 Illinois when such repairs are initiated on facilities
2 located in the declared disaster area within 6 months after
3 the disaster.
4 (20) Beginning July 1, 1999, game or game birds sold at
5 a "game breeding and hunting preserve area" or an "exotic
6 game hunting area" as those terms are used in the Wildlife
7 Code or at a hunting enclosure approved through rules adopted
8 by the Department of Natural Resources. This paragraph is
9 exempt from the provisions of Section 3-55.
10 (21) (20) A motor vehicle, as that term is defined in
11 Section 1-146 of the Illinois Vehicle Code, that is donated
12 to a corporation, limited liability company, society,
13 association, foundation, or institution that is determined by
14 the Department to be organized and operated exclusively for
15 educational purposes. For purposes of this exemption, "a
16 corporation, limited liability company, society, association,
17 foundation, or institution organized and operated exclusively
18 for educational purposes" means all tax-supported public
19 schools, private schools that offer systematic instruction in
20 useful branches of learning by methods common to public
21 schools and that compare favorably in their scope and
22 intensity with the course of study presented in tax-supported
23 schools, and vocational or technical schools or institutes
24 organized and operated exclusively to provide a course of
25 study of not less than 6 weeks duration and designed to
26 prepare individuals to follow a trade or to pursue a manual,
27 technical, mechanical, industrial, business, or commercial
28 occupation.
29 (22) (21) Beginning January 1, 2000, personal property,
30 including food, purchased through fundraising events for the
31 benefit of a public or private elementary or secondary
32 school, a group of those schools, or one or more school
33 districts if the events are sponsored by an entity recognized
34 by the school district that consists primarily of volunteers
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1 and includes parents and teachers of the school children.
2 This paragraph does not apply to fundraising events (i) for
3 the benefit of private home instruction or (ii) for which the
4 fundraising entity purchases the personal property sold at
5 the events from another individual or entity that sold the
6 property for the purpose of resale by the fundraising entity
7 and that profits from the sale to the fundraising entity.
8 This paragraph is exempt from the provisions of Section 3-55.
9 (23) (20) Beginning January 1, 2000, new or used
10 automatic vending machines that prepare and serve hot food
11 and beverages, including coffee, soup, and other items, and
12 replacement parts for these machines. This paragraph is
13 exempt from the provisions of Section 3-55.
14 (24) Beginning on January 1, 2002, tangible personal
15 property purchased from an Illinois retailer by a taxpayer
16 engaged in centralized purchasing activities in Illinois who
17 will, upon receipt of the property in Illinois, temporarily
18 store the property in Illinois (i) for the purpose of
19 subsequently transporting it outside this State for use or
20 consumption thereafter solely outside this State or (ii) for
21 the purpose of being processed, fabricated, or manufactured
22 into, attached to, or incorporated into other tangible
23 personal property to be transported outside this State and
24 thereafter used or consumed solely outside this State. The
25 Director of Revenue shall, pursuant to rules adopted in
26 accordance with the Illinois Administrative Procedure Act,
27 issue a permit to any taxpayer in good standing with the
28 Department who is eligible for the exemption under this
29 paragraph (24). The permit issued under this paragraph (24)
30 shall authorize the holder, to the extent and in the manner
31 specified in the rules adopted under this Act, to purchase
32 tangible personal property from a retailer exempt from the
33 taxes imposed by this Act. Taxpayers shall maintain all
34 necessary books and records to substantiate the use and
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1 consumption of all such tangible personal property outside of
2 the State of Illinois.
3 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
4 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
5 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637,
6 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)
7 Section 20. The Retailers' Occupation Tax Act is amended
8 by changing Section 2-5 as follows:
9 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
10 Sec. 2-5. Exemptions. Gross receipts from proceeds from
11 the sale of the following tangible personal property are
12 exempt from the tax imposed by this Act:
13 (1) Farm chemicals.
14 (2) Farm machinery and equipment, both new and used,
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for production agriculture
17 or State or federal agricultural programs, including
18 individual replacement parts for the machinery and equipment,
19 including machinery and equipment purchased for lease, and
20 including implements of husbandry defined in Section 1-130 of
21 the Illinois Vehicle Code, farm machinery and agricultural
22 chemical and fertilizer spreaders, and nurse wagons required
23 to be registered under Section 3-809 of the Illinois Vehicle
24 Code, but excluding other motor vehicles required to be
25 registered under the Illinois Vehicle Code. Horticultural
26 polyhouses or hoop houses used for propagating, growing, or
27 overwintering plants shall be considered farm machinery and
28 equipment under this item (2). Agricultural chemical tender
29 tanks and dry boxes shall include units sold separately from
30 a motor vehicle required to be licensed and units sold
31 mounted on a motor vehicle required to be licensed, if the
32 selling price of the tender is separately stated.
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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 2-70.
17 (3) Distillation machinery and equipment, sold as a unit
18 or kit, assembled or installed by the retailer, certified by
19 the user to be used only for the production of ethyl alcohol
20 that will be used for consumption as motor fuel or as a
21 component of motor fuel for the personal use of the user, and
22 not subject to sale or resale.
23 (4) Graphic arts machinery and equipment, including
24 repair and replacement parts, both new and used, and
25 including that manufactured on special order or purchased for
26 lease, certified by the purchaser to be used primarily for
27 graphic arts production.
28 (5) A motor vehicle of the first division, a motor
29 vehicle of the second division that is a self-contained motor
30 vehicle designed or permanently converted to provide living
31 quarters for recreational, camping, or travel use, with
32 direct walk through access to the living quarters from the
33 driver's seat, or a motor vehicle of the second division that
34 is of the van configuration designed for the transportation
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1 of not less than 7 nor more than 16 passengers, as defined in
2 Section 1-146 of the Illinois Vehicle Code, that is used for
3 automobile renting, as defined in the Automobile Renting
4 Occupation and Use Tax Act.
5 (6) Personal property sold by a teacher-sponsored
6 student organization affiliated with an elementary or
7 secondary school located in Illinois.
8 (7) Proceeds of that portion of the selling price of a
9 passenger car the sale of which is subject to the Replacement
10 Vehicle Tax.
11 (8) Personal property sold to an Illinois county fair
12 association for use in conducting, operating, or promoting
13 the county fair.
14 (9) Personal property sold to a not-for-profit arts or
15 cultural organization that establishes, by proof required by
16 the Department by rule, that it has received an exemption
17 under Section 501(c)(3) of the Internal Revenue Code and that
18 is organized and operated for the presentation or support of
19 arts or cultural programming, activities, or services. These
20 organizations include, but are not limited to, music and
21 dramatic arts organizations such as symphony orchestras and
22 theatrical groups, arts and cultural service organizations,
23 local arts councils, visual arts organizations, and media
24 arts organizations.
25 (10) Personal property sold by a corporation, society,
26 association, foundation, institution, or organization, other
27 than a limited liability company, that is organized and
28 operated as a not-for-profit service enterprise for the
29 benefit of persons 65 years of age or older if the personal
30 property was not purchased by the enterprise for the purpose
31 of resale by the enterprise.
32 (11) Personal property sold to a governmental body, to a
33 corporation, society, association, foundation, or institution
34 organized and operated exclusively for charitable, religious,
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1 or educational purposes, or to a not-for-profit corporation,
2 society, association, foundation, institution, or
3 organization that has no compensated officers or employees
4 and that is organized and operated primarily for the
5 recreation of persons 55 years of age or older. A limited
6 liability company may qualify for the exemption under this
7 paragraph only if the limited liability company is organized
8 and operated exclusively for educational purposes. On and
9 after July 1, 1987, however, no entity otherwise eligible for
10 this exemption shall make tax-free purchases unless it has an
11 active identification number issued by the Department.
12 (12) Personal property sold to interstate carriers for
13 hire for use as rolling stock moving in interstate commerce
14 or to lessors under leases of one year or longer executed or
15 in effect at the time of purchase by interstate carriers for
16 hire for use as rolling stock moving in interstate commerce
17 and equipment operated by a telecommunications provider,
18 licensed as a common carrier by the Federal Communications
19 Commission, which is permanently installed in or affixed to
20 aircraft moving in interstate commerce.
21 (13) Proceeds from sales to owners, lessors, or shippers
22 of tangible personal property that is utilized by interstate
23 carriers for hire for use as rolling stock moving in
24 interstate commerce and equipment operated by a
25 telecommunications provider, licensed as a common carrier by
26 the Federal Communications Commission, which is permanently
27 installed in or affixed to aircraft moving in interstate
28 commerce.
29 (14) Machinery and equipment that will be used by the
30 purchaser, or a lessee of the purchaser, primarily in the
31 process of manufacturing or assembling tangible personal
32 property for wholesale or retail sale or lease, whether the
33 sale or lease is made directly by the manufacturer or by some
34 other person, whether the materials used in the process are
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1 owned by the manufacturer or some other person, or whether
2 the sale or lease is made apart from or as an incident to the
3 seller's engaging in the service occupation of producing
4 machines, tools, dies, jigs, patterns, gauges, or other
5 similar items of no commercial value on special order for a
6 particular purchaser.
7 (15) Proceeds of mandatory service charges separately
8 stated on customers' bills for purchase and consumption of
9 food and beverages, to the extent that the proceeds of the
10 service charge are in fact turned over as tips or as a
11 substitute for tips to the employees who participate directly
12 in preparing, serving, hosting or cleaning up the food or
13 beverage function with respect to which the service charge is
14 imposed.
15 (16) Petroleum products sold to a purchaser if the
16 seller is prohibited by federal law from charging tax to the
17 purchaser.
18 (17) Tangible personal property sold to a common carrier
19 by rail or motor that receives the physical possession of the
20 property in Illinois and that transports the property, or
21 shares with another common carrier in the transportation of
22 the property, out of Illinois on a standard uniform bill of
23 lading showing the seller of the property as the shipper or
24 consignor of the property to a destination outside Illinois,
25 for use outside Illinois.
26 (18) Legal tender, currency, medallions, or gold or
27 silver coinage issued by the State of Illinois, the
28 government of the United States of America, or the government
29 of any foreign country, and bullion.
30 (19) Oil field exploration, drilling, and production
31 equipment, including (i) rigs and parts of rigs, rotary rigs,
32 cable tool rigs, and workover rigs, (ii) pipe and tubular
33 goods, including casing and drill strings, (iii) pumps and
34 pump-jack units, (iv) storage tanks and flow lines, (v) any
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1 individual replacement part for oil field exploration,
2 drilling, and production equipment, and (vi) machinery and
3 equipment purchased for lease; but excluding motor vehicles
4 required to be registered under the Illinois Vehicle Code.
5 (20) Photoprocessing machinery and equipment, including
6 repair and replacement parts, both new and used, including
7 that manufactured on special order, certified by the
8 purchaser to be used primarily for photoprocessing, and
9 including photoprocessing machinery and equipment purchased
10 for lease.
11 (21) Coal exploration, mining, offhighway hauling,
12 processing, maintenance, and reclamation equipment, including
13 replacement parts and equipment, and including equipment
14 purchased for lease, but excluding motor vehicles required to
15 be registered under the Illinois Vehicle Code.
16 (22) Fuel and petroleum products sold to or used by an
17 air 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 (23) A transaction in which the purchase order is
24 received by a florist who is located outside Illinois, but
25 who has a florist located in Illinois deliver the property to
26 the purchaser or the purchaser's donee in Illinois.
27 (24) Fuel consumed or used in the operation of ships,
28 barges, or vessels that are used primarily in or for the
29 transportation of property or the conveyance of persons for
30 hire on rivers bordering on this State if the fuel is
31 delivered by the seller to the purchaser's barge, ship, or
32 vessel while it is afloat upon that bordering river.
33 (25) A motor vehicle sold in this State to a nonresident
34 even though the motor vehicle is delivered to the nonresident
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1 in this State, if the motor vehicle is not to be titled in
2 this State, and if a driveaway decal permit is issued to the
3 motor vehicle as provided in Section 3-603 of the Illinois
4 Vehicle Code or if the nonresident purchaser has vehicle
5 registration plates to transfer to the motor vehicle upon
6 returning to his or her home state. The issuance of the
7 driveaway decal permit or having the out-of-state
8 registration plates to be transferred is prima facie evidence
9 that the motor vehicle will not be titled in this State.
10 (26) Semen used for artificial insemination of livestock
11 for direct agricultural production.
12 (27) Horses, or interests in horses, registered with and
13 meeting the requirements of any of the Arabian Horse Club
14 Registry of America, Appaloosa Horse Club, American Quarter
15 Horse Association, United States Trotting Association, or
16 Jockey Club, as appropriate, used for purposes of breeding or
17 racing for prizes.
18 (28) Computers and communications equipment utilized for
19 any hospital purpose and equipment used in the diagnosis,
20 analysis, or treatment of hospital patients sold to a lessor
21 who leases the equipment, under a lease of one year or longer
22 executed or in effect at the time of the purchase, to a
23 hospital that has been issued an active tax exemption
24 identification number by the Department under Section 1g of
25 this Act.
26 (29) Personal property sold to a lessor who leases the
27 property, under a lease of one year or longer executed or in
28 effect at the time of the purchase, to a governmental body
29 that has been issued an active tax exemption identification
30 number by the Department under Section 1g of this Act.
31 (30) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is donated
34 for disaster relief to be used in a State or federally
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1 declared disaster area in Illinois or bordering Illinois by a
2 manufacturer or retailer that is registered in this State to
3 a corporation, society, association, foundation, or
4 institution that has been issued a sales tax exemption
5 identification number by the Department that assists victims
6 of the disaster who reside within the declared disaster area.
7 (31) Beginning with taxable years ending on or after
8 December 31, 1995 and ending with taxable years ending on or
9 before December 31, 2004, personal property that is used in
10 the performance of infrastructure repairs in this State,
11 including but not limited to municipal roads and streets,
12 access roads, bridges, sidewalks, waste disposal systems,
13 water and sewer line extensions, water distribution and
14 purification facilities, storm water drainage and retention
15 facilities, and sewage treatment facilities, resulting from a
16 State or federally declared disaster in Illinois or bordering
17 Illinois when such repairs are initiated on facilities
18 located in the declared disaster area within 6 months after
19 the disaster.
20 (32) Beginning July 1, 1999, game or game birds sold at
21 a "game breeding and hunting preserve area" or an "exotic
22 game hunting area" as those terms are used in the Wildlife
23 Code or at a hunting enclosure approved through rules adopted
24 by the Department of Natural Resources. This paragraph is
25 exempt from the provisions of Section 2-70.
26 (33) (32) A motor vehicle, as that term is defined in
27 Section 1-146 of the Illinois Vehicle Code, that is donated
28 to a corporation, limited liability company, society,
29 association, foundation, or institution that is determined by
30 the Department to be organized and operated exclusively for
31 educational purposes. For purposes of this exemption, "a
32 corporation, limited liability company, society, association,
33 foundation, or institution organized and operated exclusively
34 for educational purposes" means all tax-supported public
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1 schools, private schools that offer systematic instruction in
2 useful branches of learning by methods common to public
3 schools and that compare favorably in their scope and
4 intensity with the course of study presented in tax-supported
5 schools, and vocational or technical schools or institutes
6 organized and operated exclusively to provide a course of
7 study of not less than 6 weeks duration and designed to
8 prepare individuals to follow a trade or to pursue a manual,
9 technical, mechanical, industrial, business, or commercial
10 occupation.
11 (34) (33) Beginning January 1, 2000, personal property,
12 including food, purchased through fundraising events for the
13 benefit of a public or private elementary or secondary
14 school, a group of those schools, or one or more school
15 districts if the events are sponsored by an entity recognized
16 by the school district that consists primarily of volunteers
17 and includes parents and teachers of the school children.
18 This paragraph does not apply to fundraising events (i) for
19 the benefit of private home instruction or (ii) for which the
20 fundraising entity purchases the personal property sold at
21 the events from another individual or entity that sold the
22 property for the purpose of resale by the fundraising entity
23 and that profits from the sale to the fundraising entity.
24 This paragraph is exempt from the provisions of Section 2-70.
25 (35) (32) Beginning January 1, 2000, new or used
26 automatic vending machines that prepare and serve hot food
27 and beverages, including coffee, soup, and other items, and
28 replacement parts for these machines. This paragraph is
29 exempt from the provisions of Section 2-70.
30 (36) Beginning on January 1, 2002, tangible personal
31 property purchased from an Illinois retailer by a taxpayer
32 engaged in centralized purchasing activities in Illinois who
33 will, upon receipt of the property in Illinois, temporarily
34 store the property in Illinois (i) for the purpose of
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1 subsequently transporting it outside this State for use or
2 consumption thereafter solely outside this State or (ii) for
3 the purpose of being processed, fabricated, or manufactured
4 into, attached to, or incorporated into other tangible
5 personal property to be transported outside this State and
6 thereafter used or consumed solely outside this State. The
7 Director of Revenue shall, pursuant to rules adopted in
8 accordance with the Illinois Administrative Procedure Act,
9 issue a permit to any taxpayer in good standing with the
10 Department who is eligible for the exemption under this
11 paragraph (36). The permit issued under this paragraph (36)
12 shall authorize the holder, to the extent and in the manner
13 specified in the rules adopted under this Act, to purchase
14 tangible personal property from a retailer exempt from the
15 taxes imposed by this Act. Taxpayers shall maintain all
16 necessary books and records to substantiate the use and
17 consumption of all such tangible personal property outside of
18 the State of Illinois.
19 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98;
20 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff.
21 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533,
22 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99;
23 revised 9-28-99.)
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.".