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92_SB0854eng SB854 Engrossed LRB9204999SMdv 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 primarily for the presentation or 24 support of arts or cultural programming, activities, or 25 services. These organizations include, but are not limited 26 to, music and dramatic arts organizations such as symphony 27 orchestras and theatrical groups, arts and cultural service 28 organizations, local arts councils, visual arts 29 organizations, and media arts organizations. On and after the 30 effective date of this amendatory Act of the 92nd General 31 Assembly, however, an entity otherwise eligible for this SB854 Engrossed -2- LRB9204999SMdv 1 exemption shall not make tax-free purchases unless it has an 2 active identification number issued by the Department. 3 (4) Personal property purchased by a governmental body, 4 by a corporation, society, association, foundation, or 5 institution organized and operated exclusively for 6 charitable, religious, or educational purposes, or by a 7 not-for-profit corporation, society, association, foundation, 8 institution, or organization that has no compensated officers 9 or employees and that is organized and operated primarily for 10 the recreation of persons 55 years of age or older. A limited 11 liability company may qualify for the exemption under this 12 paragraph only if the limited liability company is organized 13 and operated exclusively for educational purposes. On and 14 after July 1, 1987, however, no entity otherwise eligible for 15 this exemption shall make tax-free purchases unless it has an 16 active exemption identification number issued by the 17 Department. 18 (5) A passenger car that is a replacement vehicle to the 19 extent that the purchase price of the car is subject to the 20 Replacement Vehicle Tax. 21 (6) Graphic arts machinery and equipment, including 22 repair and replacement parts, both new and used, and 23 including that manufactured on special order, certified by 24 the purchaser to be used primarily for graphic arts 25 production, and including machinery and equipment purchased 26 for lease. 27 (7) Farm chemicals. 28 (8) Legal tender, currency, medallions, or gold or 29 silver coinage issued by the State of Illinois, the 30 government of the United States of America, or the government 31 of any foreign country, and bullion. 32 (9) Personal property purchased from a teacher-sponsored 33 student organization affiliated with an elementary or 34 secondary school located in Illinois. SB854 Engrossed -3- LRB9204999SMdv 1 (10) A motor vehicle of the first division, a motor 2 vehicle of the second division that is a self-contained motor 3 vehicle designed or permanently converted to provide living 4 quarters for recreational, camping, or travel use, with 5 direct walk through to the living quarters from the driver's 6 seat, or a motor vehicle of the second division that is of 7 the van configuration designed for the transportation of not 8 less than 7 nor more than 16 passengers, as defined in 9 Section 1-146 of the Illinois Vehicle Code, that is used for 10 automobile renting, as defined in the Automobile Renting 11 Occupation and Use Tax Act. 12 (11) Farm machinery and equipment, both new and used, 13 including that manufactured on special order, certified by 14 the purchaser to be used primarily for production agriculture 15 or State or federal agricultural programs, including 16 individual replacement parts for the machinery and equipment, 17 including machinery and equipment purchased for lease, and 18 including implements of husbandry defined in Section 1-130 of 19 the Illinois Vehicle Code, farm machinery and agricultural 20 chemical and fertilizer spreaders, and nurse wagons required 21 to be registered under Section 3-809 of the Illinois Vehicle 22 Code, but excluding other motor vehicles required to be 23 registered under the Illinois Vehicle Code. Horticultural 24 polyhouses or hoop houses used for propagating, growing, or 25 overwintering plants shall be considered farm machinery and 26 equipment under this item (11). Agricultural chemical tender 27 tanks and dry boxes shall include units sold separately from 28 a motor vehicle required to be licensed and units sold 29 mounted on a motor vehicle required to be licensed if the 30 selling price of the tender is separately stated. 31 Farm machinery and equipment shall include precision 32 farming equipment that is installed or purchased to be 33 installed on farm machinery and equipment including, but not 34 limited to, tractors, harvesters, sprayers, planters, SB854 Engrossed -4- LRB9204999SMdv 1 seeders, or spreaders. Precision farming equipment includes, 2 but is not limited to, soil testing sensors, computers, 3 monitors, software, global positioning and mapping systems, 4 and other such equipment. 5 Farm machinery and equipment also includes computers, 6 sensors, software, and related equipment used primarily in 7 the computer-assisted operation of production agriculture 8 facilities, equipment, and activities such as, but not 9 limited to, the collection, monitoring, and correlation of 10 animal and crop data for the purpose of formulating animal 11 diets and agricultural chemicals. This item (11) is exempt 12 from the provisions of Section 3-90. 13 (12) Fuel and petroleum products sold to or used by an 14 air common carrier, certified by the carrier to be used for 15 consumption, shipment, or storage in the conduct of its 16 business as an air common carrier, for a flight destined for 17 or returning from a location or locations outside the United 18 States without regard to previous or subsequent domestic 19 stopovers. 20 (13) Proceeds of mandatory service charges separately 21 stated on customers' bills for the purchase and consumption 22 of food and beverages purchased at retail from a retailer, to 23 the extent that the proceeds of the service charge are in 24 fact turned over as tips or as a substitute for tips to the 25 employees who participate directly in preparing, serving, 26 hosting or cleaning up the food or beverage function with 27 respect to which the service charge is imposed. 28 (14) Oil field exploration, drilling, and production 29 equipment, including (i) rigs and parts of rigs, rotary rigs, 30 cable tool rigs, and workover rigs, (ii) pipe and tubular 31 goods, including casing and drill strings, (iii) pumps and 32 pump-jack units, (iv) storage tanks and flow lines, (v) any 33 individual replacement part for oil field exploration, 34 drilling, and production equipment, and (vi) machinery and SB854 Engrossed -5- LRB9204999SMdv 1 equipment purchased for lease; but excluding motor vehicles 2 required to be registered under the Illinois Vehicle Code. 3 (15) Photoprocessing machinery and equipment, including 4 repair and replacement parts, both new and used, including 5 that manufactured on special order, certified by the 6 purchaser to be used primarily for photoprocessing, and 7 including photoprocessing machinery and equipment purchased 8 for lease. 9 (16) Coal exploration, mining, offhighway hauling, 10 processing, maintenance, and reclamation equipment, including 11 replacement parts and equipment, and including equipment 12 purchased for lease, but excluding motor vehicles required to 13 be registered under the Illinois Vehicle Code. 14 (17) Distillation machinery and equipment, sold as a 15 unit or kit, assembled or installed by the retailer, 16 certified by the user to be used only for the production of 17 ethyl alcohol that will be used for consumption as motor fuel 18 or as a component of motor fuel for the personal use of the 19 user, and not subject to sale or resale. 20 (18) Manufacturing and assembling machinery and 21 equipment used primarily in the process of manufacturing or 22 assembling tangible personal property for wholesale or retail 23 sale or lease, whether that sale or lease is made directly by 24 the manufacturer or by some other person, whether the 25 materials used in the process are owned by the manufacturer 26 or some other person, or whether that sale or lease is made 27 apart from or as an incident to the seller's engaging in the 28 service occupation of producing machines, tools, dies, jigs, 29 patterns, gauges, or other similar items of no commercial 30 value on special order for a particular purchaser. 31 (19) Personal property delivered to a purchaser or 32 purchaser's donee inside Illinois when the purchase order for 33 that personal property was received by a florist located 34 outside Illinois who has a florist located inside Illinois SB854 Engrossed -6- LRB9204999SMdv 1 deliver the personal property. 2 (20) Semen used for artificial insemination of livestock 3 for direct agricultural production. 4 (21) Horses, or interests in horses, registered with and 5 meeting the requirements of any of the Arabian Horse Club 6 Registry of America, Appaloosa Horse Club, American Quarter 7 Horse Association, United States Trotting Association, or 8 Jockey Club, as appropriate, used for purposes of breeding or 9 racing for prizes. 10 (22) Computers and communications equipment utilized for 11 any hospital purpose and equipment used in the diagnosis, 12 analysis, or treatment of hospital patients purchased by a 13 lessor who leases the equipment, under a lease of one year or 14 longer executed or in effect at the time the lessor would 15 otherwise be subject to the tax imposed by this Act, to a 16 hospital that has been issued an active tax exemption 17 identification number by the Department under Section 1g of 18 the Retailers' Occupation Tax Act. If the equipment is 19 leased in a manner that does not qualify for this exemption 20 or is used in any other non-exempt manner, the lessor shall 21 be liable for the tax imposed under this Act or the Service 22 Use Tax Act, as the case may be, based on the fair market 23 value of the property at the time the non-qualifying use 24 occurs. No lessor shall collect or attempt to collect an 25 amount (however designated) that purports to reimburse that 26 lessor for the tax imposed by this Act or the Service Use Tax 27 Act, as the case may be, if the tax has not been paid by the 28 lessor. If a lessor improperly collects any such amount from 29 the lessee, the lessee shall have a legal right to claim a 30 refund of that amount from the lessor. If, however, that 31 amount is not refunded to the lessee for any reason, the 32 lessor is liable to pay that amount to the Department. 33 (23) Personal property purchased by a lessor who leases 34 the property, under a lease of one year or longer executed SB854 Engrossed -7- LRB9204999SMdv 1 or in effect at the time the lessor would otherwise be 2 subject to the tax imposed by this Act, to a governmental 3 body that has been issued an active sales tax exemption 4 identification number by the Department under Section 1g of 5 the Retailers' Occupation Tax Act. If the property is leased 6 in a manner that does not qualify for this exemption or used 7 in any other non-exempt manner, the lessor shall be liable 8 for the tax imposed under this Act or the Service Use Tax 9 Act, as the case may be, based on the fair market value of 10 the property at the time the non-qualifying use occurs. No 11 lessor shall collect or attempt to collect an amount (however 12 designated) that purports to reimburse that lessor for the 13 tax imposed by this Act or the Service Use Tax Act, as the 14 case may be, if the tax has not been paid by the lessor. If 15 a lessor improperly collects any such amount from the lessee, 16 the lessee shall have a legal right to claim a refund of that 17 amount from the lessor. If, however, that amount is not 18 refunded to the lessee for any reason, the lessor is liable 19 to pay that amount to the Department. 20 (24) Beginning with taxable years ending on or after 21 December 31, 1995 and ending with taxable years ending on or 22 before December 31, 2004, personal property that is donated 23 for disaster relief to be used in a State or federally 24 declared disaster area in Illinois or bordering Illinois by a 25 manufacturer or retailer that is registered in this State to 26 a corporation, society, association, foundation, or 27 institution that has been issued a sales tax exemption 28 identification number by the Department that assists victims 29 of the disaster who reside within the declared disaster area. 30 (25) Beginning with taxable years ending on or after 31 December 31, 1995 and ending with taxable years ending on or 32 before December 31, 2004, personal property that is used in 33 the performance of infrastructure repairs in this State, 34 including but not limited to municipal roads and streets, SB854 Engrossed -8- LRB9204999SMdv 1 access roads, bridges, sidewalks, waste disposal systems, 2 water and sewer line extensions, water distribution and 3 purification facilities, storm water drainage and retention 4 facilities, and sewage treatment facilities, resulting from a 5 State or federally declared disaster in Illinois or bordering 6 Illinois when such repairs are initiated on facilities 7 located in the declared disaster area within 6 months after 8 the disaster. 9 (26) Beginning July 1, 1999, game or game birds 10 purchased at a "game breeding and hunting preserve area" or 11 an "exotic game hunting area" as those terms are used in the 12 Wildlife Code or at a hunting enclosure approved through 13 rules adopted by the Department of Natural Resources. This 14 paragraph is exempt from the provisions of Section 3-90. 15 (27) A motor vehicle, as that term is defined in Section 16 1-146 of the Illinois Vehicle Code, that is donated to a 17 corporation, limited liability company, society, association, 18 foundation, or institution that is determined by the 19 Department to be organized and operated exclusively for 20 educational purposes. For purposes of this exemption, "a 21 corporation, limited liability company, society, association, 22 foundation, or institution organized and operated exclusively 23 for educational purposes" means all tax-supported public 24 schools, private schools that offer systematic instruction in 25 useful branches of learning by methods common to public 26 schools and that compare favorably in their scope and 27 intensity with the course of study presented in tax-supported 28 schools, and vocational or technical schools or institutes 29 organized and operated exclusively to provide a course of 30 study of not less than 6 weeks duration and designed to 31 prepare individuals to follow a trade or to pursue a manual, 32 technical, mechanical, industrial, business, or commercial 33 occupation. 34 (28) Beginning January 1, 2000, personal property, SB854 Engrossed -9- LRB9204999SMdv 1 including food, purchased through fundraising events for the 2 benefit of a public or private elementary or secondary 3 school, a group of those schools, or one or more school 4 districts if the events are sponsored by an entity recognized 5 by the school district that consists primarily of volunteers 6 and includes parents and teachers of the school children. 7 This paragraph does not apply to fundraising events (i) for 8 the benefit of private home instruction or (ii) for which the 9 fundraising entity purchases the personal property sold at 10 the events from another individual or entity that sold the 11 property for the purpose of resale by the fundraising entity 12 and that profits from the sale to the fundraising entity. 13 This paragraph is exempt from the provisions of Section 3-90. 14 (29) Beginning January 1, 2000, new or used automatic 15 vending machines that prepare and serve hot food and 16 beverages, including coffee, soup, and other items, and 17 replacement parts for these machines. This paragraph is 18 exempt from the provisions of Section 3-90. 19 (30) Food for human consumption that is to be consumed 20 off the premises where it is sold (other than alcoholic 21 beverages, soft drinks, and food that has been prepared for 22 immediate consumption) and prescription and nonprescription 23 medicines, drugs, medical appliances, and insulin, urine 24 testing materials, syringes, and needles used by diabetics, 25 for human use, when purchased for use by a person receiving 26 medical assistance under Article 5 of the Illinois Public Aid 27 Code who resides in a licensed long-term care facility, as 28 defined in the Nursing Home Care Act. 29 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 30 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 31 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 32 eff. 8-20-99; 91-901, eff. 1-1-01.) 33 Section 10. The Service Use Tax Act is amended by SB854 Engrossed -10- LRB9204999SMdv 1 changing Section 3-5 as follows: 2 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 3 Sec. 3-5. Exemptions. Use of the following tangible 4 personal property is exempt from the tax imposed by this Act: 5 (1) Personal property purchased from a corporation, 6 society, association, foundation, institution, or 7 organization, other than a limited liability company, that is 8 organized and operated as a not-for-profit service enterprise 9 for the benefit of persons 65 years of age or older if the 10 personal property was not purchased by the enterprise for the 11 purpose of resale by the enterprise. 12 (2) Personal property purchased by a non-profit Illinois 13 county fair association for use in conducting, operating, or 14 promoting the county fair. 15 (3) Personal property purchased by a not-for-profit arts 16 or cultural organization that establishes, by proof required 17 by the Department by rule, that it has received an exemption 18 under Section 501(c)(3) of the Internal Revenue Code and that 19 is organized and operated primarily for the presentation or 20 support of arts or cultural programming, activities, or 21 services. These organizations include, but are not limited 22 to, music and dramatic arts organizations such as symphony 23 orchestras and theatrical groups, arts and cultural service 24 organizations, local arts councils, visual arts 25 organizations, and media arts organizations. On and after the 26 effective date of this amendatory Act of the 92nd General 27 Assembly, however, an entity otherwise eligible for this 28 exemption shall not make tax-free purchases unless it has an 29 active identification number issued by the Department. 30 (4) Legal tender, currency, medallions, or gold or 31 silver coinage issued by the State of Illinois, the 32 government of the United States of America, or the government 33 of any foreign country, and bullion. SB854 Engrossed -11- LRB9204999SMdv 1 (5) Graphic arts machinery and equipment, including 2 repair and replacement parts, both new and used, and 3 including that manufactured on special order or purchased for 4 lease, certified by the purchaser to be used primarily for 5 graphic arts production. 6 (6) Personal property purchased from a teacher-sponsored 7 student organization affiliated with an elementary or 8 secondary school located in Illinois. 9 (7) Farm machinery and equipment, both new and used, 10 including that manufactured on special order, certified by 11 the purchaser to be used primarily for production agriculture 12 or State or federal agricultural programs, including 13 individual replacement parts for the machinery and equipment, 14 including machinery and equipment purchased for lease, and 15 including implements of husbandry defined in Section 1-130 of 16 the Illinois Vehicle Code, farm machinery and agricultural 17 chemical and fertilizer spreaders, and nurse wagons required 18 to be registered under Section 3-809 of the Illinois Vehicle 19 Code, but excluding other motor vehicles required to be 20 registered under the Illinois Vehicle Code. Horticultural 21 polyhouses or hoop houses used for propagating, growing, or 22 overwintering plants shall be considered farm machinery and 23 equipment under this item (7). Agricultural chemical tender 24 tanks and dry boxes shall include units sold separately from 25 a motor vehicle required to be licensed and units sold 26 mounted on a motor vehicle required to be licensed if the 27 selling price of the tender is separately stated. 28 Farm machinery and equipment shall include precision 29 farming equipment that is installed or purchased to be 30 installed on farm machinery and equipment including, but not 31 limited to, tractors, harvesters, sprayers, planters, 32 seeders, or spreaders. Precision farming equipment includes, 33 but is not limited to, soil testing sensors, computers, 34 monitors, software, global positioning and mapping systems, SB854 Engrossed -12- LRB9204999SMdv 1 and other such equipment. 2 Farm machinery and equipment also includes computers, 3 sensors, software, and related equipment used primarily in 4 the computer-assisted operation of production agriculture 5 facilities, equipment, and activities such as, but not 6 limited to, the collection, monitoring, and correlation of 7 animal and crop data for the purpose of formulating animal 8 diets and agricultural chemicals. This item (7) is exempt 9 from the provisions of Section 3-75. 10 (8) Fuel and petroleum products sold to or used by an 11 air common carrier, certified by the carrier to be used for 12 consumption, shipment, or storage in the conduct of its 13 business as an air common carrier, for a flight destined for 14 or returning from a location or locations outside the United 15 States without regard to previous or subsequent domestic 16 stopovers. 17 (9) Proceeds of mandatory service charges separately 18 stated on customers' bills for the purchase and consumption 19 of food and beverages acquired as an incident to the purchase 20 of a service from a serviceman, to the extent that the 21 proceeds of the service charge are in fact turned over as 22 tips or as a substitute for tips to the employees who 23 participate directly in preparing, serving, hosting or 24 cleaning up the food or beverage function with respect to 25 which the service charge is imposed. 26 (10) Oil field exploration, drilling, and production 27 equipment, including (i) rigs and parts of rigs, rotary rigs, 28 cable tool rigs, and workover rigs, (ii) pipe and tubular 29 goods, including casing and drill strings, (iii) pumps and 30 pump-jack units, (iv) storage tanks and flow lines, (v) any 31 individual replacement part for oil field exploration, 32 drilling, and production equipment, and (vi) machinery and 33 equipment purchased for lease; but excluding motor vehicles 34 required to be registered under the Illinois Vehicle Code. SB854 Engrossed -13- LRB9204999SMdv 1 (11) Proceeds from the sale of photoprocessing machinery 2 and equipment, including repair and replacement parts, both 3 new and used, including that manufactured on special order, 4 certified by the purchaser to be used primarily for 5 photoprocessing, and including photoprocessing machinery and 6 equipment purchased for lease. 7 (12) Coal exploration, mining, offhighway hauling, 8 processing, maintenance, and reclamation equipment, including 9 replacement parts and equipment, and including equipment 10 purchased for lease, but excluding motor vehicles required to 11 be registered under the Illinois Vehicle Code. 12 (13) Semen used for artificial insemination of livestock 13 for direct agricultural production. 14 (14) Horses, or interests in horses, registered with and 15 meeting the requirements of any of the Arabian Horse Club 16 Registry of America, Appaloosa Horse Club, American Quarter 17 Horse Association, United States Trotting Association, or 18 Jockey Club, as appropriate, used for purposes of breeding or 19 racing for prizes. 20 (15) Computers and communications equipment utilized for 21 any hospital purpose and equipment used in the diagnosis, 22 analysis, or treatment of hospital patients purchased by a 23 lessor who leases the equipment, under a lease of one year or 24 longer executed or in effect at the time the lessor would 25 otherwise be subject to the tax imposed by this Act, to a 26 hospital that has been issued an active tax exemption 27 identification number by the Department under Section 1g of 28 the Retailers' Occupation Tax Act. If the equipment is leased 29 in a manner that does not qualify for this exemption or is 30 used in any other non-exempt manner, the lessor shall be 31 liable for the tax imposed under this Act or the Use Tax Act, 32 as the case may be, based on the fair market value of the 33 property at the time the non-qualifying use occurs. No 34 lessor shall collect or attempt to collect an amount (however SB854 Engrossed -14- LRB9204999SMdv 1 designated) that purports to reimburse that lessor for the 2 tax imposed by this Act or the Use Tax Act, as the case may 3 be, if the tax has not been paid by the lessor. If a lessor 4 improperly collects any such amount from the lessee, the 5 lessee shall have a legal right to claim a refund of that 6 amount from the lessor. If, however, that amount is not 7 refunded to the lessee for any reason, the lessor is liable 8 to pay that amount to the Department. 9 (16) Personal property purchased by a lessor who leases 10 the property, under a lease of one year or longer executed or 11 in effect at the time the lessor would otherwise be subject 12 to the tax imposed by this Act, to a governmental body that 13 has been issued an active tax exemption identification number 14 by the Department under Section 1g of the Retailers' 15 Occupation Tax Act. If the property is leased in a manner 16 that does not qualify for this exemption or is used in any 17 other non-exempt manner, the lessor shall be liable for the 18 tax imposed under this Act or the Use Tax Act, as the case 19 may be, based on the fair market value of the property at the 20 time the non-qualifying use occurs. No lessor shall collect 21 or attempt to collect an amount (however designated) that 22 purports to reimburse that lessor for the tax imposed by this 23 Act or the Use Tax Act, as the case may be, if the tax has 24 not been paid by the lessor. If a lessor improperly collects 25 any such amount from the lessee, the lessee shall have a 26 legal right to claim a refund of that amount from the lessor. 27 If, however, that amount is not refunded to the lessee for 28 any reason, the lessor is liable to pay that amount to the 29 Department. 30 (17) Beginning with taxable years ending on or after 31 December 31, 1995 and ending with taxable years ending on or 32 before December 31, 2004, personal property that is donated 33 for disaster relief to be used in a State or federally 34 declared disaster area in Illinois or bordering Illinois by a SB854 Engrossed -15- LRB9204999SMdv 1 manufacturer or retailer that is registered in this State to 2 a corporation, society, association, foundation, or 3 institution that has been issued a sales tax exemption 4 identification number by the Department that assists victims 5 of the disaster who reside within the declared disaster area. 6 (18) Beginning with taxable years ending on or after 7 December 31, 1995 and ending with taxable years ending on or 8 before December 31, 2004, personal property that is used in 9 the performance of infrastructure repairs in this State, 10 including but not limited to municipal roads and streets, 11 access roads, bridges, sidewalks, waste disposal systems, 12 water and sewer line extensions, water distribution and 13 purification facilities, storm water drainage and retention 14 facilities, and sewage treatment facilities, resulting from a 15 State or federally declared disaster in Illinois or bordering 16 Illinois when such repairs are initiated on facilities 17 located in the declared disaster area within 6 months after 18 the disaster. 19 (19) Beginning July 1, 1999, game or game birds 20 purchased at a "game breeding and hunting preserve area" or 21 an "exotic game hunting area" as those terms are used in the 22 Wildlife Code or at a hunting enclosure approved through 23 rules adopted by the Department of Natural Resources. This 24 paragraph is exempt from the provisions of Section 3-75. 25 (20)(19)A motor vehicle, as that term is defined in 26 Section 1-146 of the Illinois Vehicle Code, that is donated 27 to a corporation, limited liability company, society, 28 association, foundation, or institution that is determined by 29 the Department to be organized and operated exclusively for 30 educational purposes. For purposes of this exemption, "a 31 corporation, limited liability company, society, association, 32 foundation, or institution organized and operated exclusively 33 for educational purposes" means all tax-supported public 34 schools, private schools that offer systematic instruction in SB854 Engrossed -16- LRB9204999SMdv 1 useful branches of learning by methods common to public 2 schools and that compare favorably in their scope and 3 intensity with the course of study presented in tax-supported 4 schools, and vocational or technical schools or institutes 5 organized and operated exclusively to provide a course of 6 study of not less than 6 weeks duration and designed to 7 prepare individuals to follow a trade or to pursue a manual, 8 technical, mechanical, industrial, business, or commercial 9 occupation. 10 (21)(20)Beginning January 1, 2000, personal property, 11 including food, purchased through fundraising events for the 12 benefit of a public or private elementary or secondary 13 school, a group of those schools, or one or more school 14 districts if the events are sponsored by an entity recognized 15 by the school district that consists primarily of volunteers 16 and includes parents and teachers of the school children. 17 This paragraph does not apply to fundraising events (i) for 18 the benefit of private home instruction or (ii) for which the 19 fundraising entity purchases the personal property sold at 20 the events from another individual or entity that sold the 21 property for the purpose of resale by the fundraising entity 22 and that profits from the sale to the fundraising entity. 23 This paragraph is exempt from the provisions of Section 3-75. 24 (22)(19)Beginning January 1, 2000, new or used 25 automatic vending machines that prepare and serve hot food 26 and beverages, including coffee, soup, and other items, and 27 replacement parts for these machines. This paragraph is 28 exempt from the provisions of Section 3-75. 29 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 30 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 31 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 32 eff. 8-20-99; revised 9-29-99.) 33 Section 15. The Service Occupation Tax Act is amended by SB854 Engrossed -17- LRB9204999SMdv 1 changing Section 3-5 as follows: 2 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 3 Sec. 3-5. Exemptions. The following tangible personal 4 property is exempt from the tax imposed by this Act: 5 (1) Personal property sold by a corporation, society, 6 association, foundation, institution, or organization, other 7 than a limited liability company, that is organized and 8 operated as a not-for-profit service enterprise for the 9 benefit of persons 65 years of age or older if the personal 10 property was not purchased by the enterprise for the purpose 11 of resale by the enterprise. 12 (2) Personal property purchased by a not-for-profit 13 Illinois county fair association for use in conducting, 14 operating, or promoting the county fair. 15 (3) Personal property purchased by any not-for-profit 16 arts or cultural organization that establishes, by proof 17 required by the Department by rule, that it has received an 18 exemption under Section 501(c)(3) of the Internal Revenue 19 Code and that is organized and operated primarily for the 20 presentation or support of arts or cultural programming, 21 activities, or services. These organizations include, but 22 are not limited to, music and dramatic arts organizations 23 such as symphony orchestras and theatrical groups, arts and 24 cultural service organizations, local arts councils, visual 25 arts organizations, and media arts organizations. On and 26 after the effective date of this amendatory Act of the 92nd 27 General Assembly, however, an entity otherwise eligible for 28 this exemption shall not make tax-free purchases unless it 29 has an active identification number issued by the Department. 30 (4) Legal tender, currency, medallions, or gold or 31 silver coinage issued by the State of Illinois, the 32 government of the United States of America, or the government 33 of any foreign country, and bullion. SB854 Engrossed -18- LRB9204999SMdv 1 (5) Graphic arts machinery and equipment, including 2 repair and replacement parts, both new and used, and 3 including that manufactured on special order or purchased for 4 lease, certified by the purchaser to be used primarily for 5 graphic arts production. 6 (6) Personal property sold by a teacher-sponsored 7 student organization affiliated with an elementary or 8 secondary school located in Illinois. 9 (7) Farm machinery and equipment, both new and used, 10 including that manufactured on special order, certified by 11 the purchaser to be used primarily for production agriculture 12 or State or federal agricultural programs, including 13 individual replacement parts for the machinery and equipment, 14 including machinery and equipment purchased for lease, and 15 including implements of husbandry defined in Section 1-130 of 16 the Illinois Vehicle Code, farm machinery and agricultural 17 chemical and fertilizer spreaders, and nurse wagons required 18 to be registered under Section 3-809 of the Illinois Vehicle 19 Code, but excluding other motor vehicles required to be 20 registered under the Illinois Vehicle Code. Horticultural 21 polyhouses or hoop houses used for propagating, growing, or 22 overwintering plants shall be considered farm machinery and 23 equipment under this item (7). Agricultural chemical tender 24 tanks and dry boxes shall include units sold separately from 25 a motor vehicle required to be licensed and units sold 26 mounted on a motor vehicle required to be licensed if the 27 selling price of the tender is separately stated. 28 Farm machinery and equipment shall include precision 29 farming equipment that is installed or purchased to be 30 installed on farm machinery and equipment including, but not 31 limited to, tractors, harvesters, sprayers, planters, 32 seeders, or spreaders. Precision farming equipment includes, 33 but is not limited to, soil testing sensors, computers, 34 monitors, software, global positioning and mapping systems, SB854 Engrossed -19- LRB9204999SMdv 1 and other such equipment. 2 Farm machinery and equipment also includes computers, 3 sensors, software, and related equipment used primarily in 4 the computer-assisted operation of production agriculture 5 facilities, equipment, and activities such as, but not 6 limited to, the collection, monitoring, and correlation of 7 animal and crop data for the purpose of formulating animal 8 diets and agricultural chemicals. This item (7) is exempt 9 from the provisions of Section 3-55. 10 (8) Fuel and petroleum products sold to or used by an 11 air common carrier, certified by the carrier to be used for 12 consumption, shipment, or storage in the conduct of its 13 business as an air common carrier, for a flight destined for 14 or returning from a location or locations outside the United 15 States without regard to previous or subsequent domestic 16 stopovers. 17 (9) Proceeds of mandatory service charges separately 18 stated on customers' bills for the purchase and consumption 19 of food and beverages, to the extent that the proceeds of the 20 service charge are in fact turned over as tips or as a 21 substitute for tips to the employees who participate directly 22 in preparing, serving, hosting or cleaning up the food or 23 beverage function with respect to which the service charge is 24 imposed. 25 (10) Oil field exploration, drilling, and production 26 equipment, including (i) rigs and parts of rigs, rotary rigs, 27 cable tool rigs, and workover rigs, (ii) pipe and tubular 28 goods, including casing and drill strings, (iii) pumps and 29 pump-jack units, (iv) storage tanks and flow lines, (v) any 30 individual replacement part for oil field exploration, 31 drilling, and production equipment, and (vi) machinery and 32 equipment purchased for lease; but excluding motor vehicles 33 required to be registered under the Illinois Vehicle Code. 34 (11) Photoprocessing machinery and equipment, including SB854 Engrossed -20- LRB9204999SMdv 1 repair and replacement parts, both new and used, including 2 that manufactured on special order, certified by the 3 purchaser to be used primarily for photoprocessing, and 4 including photoprocessing machinery and equipment purchased 5 for lease. 6 (12) Coal exploration, mining, offhighway hauling, 7 processing, maintenance, and reclamation equipment, including 8 replacement parts and equipment, and including equipment 9 purchased for lease, but excluding motor vehicles required to 10 be registered under the Illinois Vehicle Code. 11 (13) Food for human consumption that is to be consumed 12 off the premises where it is sold (other than alcoholic 13 beverages, soft drinks and food that has been prepared for 14 immediate consumption) and prescription and non-prescription 15 medicines, drugs, medical appliances, and insulin, urine 16 testing materials, syringes, and needles used by diabetics, 17 for human use, when purchased for use by a person receiving 18 medical assistance under Article 5 of the Illinois Public Aid 19 Code who resides in a licensed long-term care facility, as 20 defined in the Nursing Home Care Act. 21 (14) Semen used for artificial insemination of livestock 22 for direct agricultural production. 23 (15) Horses, or interests in horses, registered with and 24 meeting the requirements of any of the Arabian Horse Club 25 Registry of America, Appaloosa Horse Club, American Quarter 26 Horse Association, United States Trotting Association, or 27 Jockey Club, as appropriate, used for purposes of breeding or 28 racing for prizes. 29 (16) Computers and communications equipment utilized for 30 any hospital purpose and equipment used in the diagnosis, 31 analysis, or treatment of hospital patients sold to a lessor 32 who leases the equipment, under a lease of one year or longer 33 executed or in effect at the time of the purchase, to a 34 hospital that has been issued an active tax exemption SB854 Engrossed -21- LRB9204999SMdv 1 identification number by the Department under Section 1g of 2 the Retailers' Occupation Tax Act. 3 (17) Personal property sold to a lessor who leases the 4 property, under a lease of one year or longer executed or in 5 effect at the time of the purchase, to a governmental body 6 that has been issued an active tax exemption identification 7 number by the Department under Section 1g of the Retailers' 8 Occupation Tax Act. 9 (18) Beginning with taxable years ending on or after 10 December 31, 1995 and ending with taxable years ending on or 11 before December 31, 2004, personal property that is donated 12 for disaster relief to be used in a State or federally 13 declared disaster area in Illinois or bordering Illinois by a 14 manufacturer or retailer that is registered in this State to 15 a corporation, society, association, foundation, or 16 institution that has been issued a sales tax exemption 17 identification number by the Department that assists victims 18 of the disaster who reside within the declared disaster area. 19 (19) Beginning with taxable years ending on or after 20 December 31, 1995 and ending with taxable years ending on or 21 before December 31, 2004, personal property that is used in 22 the performance of infrastructure repairs in this State, 23 including but not limited to municipal roads and streets, 24 access roads, bridges, sidewalks, waste disposal systems, 25 water and sewer line extensions, water distribution and 26 purification facilities, storm water drainage and retention 27 facilities, and sewage treatment facilities, resulting from a 28 State or federally declared disaster in Illinois or bordering 29 Illinois when such repairs are initiated on facilities 30 located in the declared disaster area within 6 months after 31 the disaster. 32 (20) Beginning July 1, 1999, game or game birds sold at 33 a "game breeding and hunting preserve area" or an "exotic 34 game hunting area" as those terms are used in the Wildlife SB854 Engrossed -22- LRB9204999SMdv 1 Code or at a hunting enclosure approved through rules adopted 2 by the Department of Natural Resources. This paragraph is 3 exempt from the provisions of Section 3-55. 4 (21)(20)A motor vehicle, as that term is defined in 5 Section 1-146 of the Illinois Vehicle Code, that is donated 6 to a corporation, limited liability company, society, 7 association, foundation, or institution that is determined by 8 the Department to be organized and operated exclusively for 9 educational purposes. For purposes of this exemption, "a 10 corporation, limited liability company, society, association, 11 foundation, or institution organized and operated exclusively 12 for educational purposes" means all tax-supported public 13 schools, private schools that offer systematic instruction in 14 useful branches of learning by methods common to public 15 schools and that compare favorably in their scope and 16 intensity with the course of study presented in tax-supported 17 schools, and vocational or technical schools or institutes 18 organized and operated exclusively to provide a course of 19 study of not less than 6 weeks duration and designed to 20 prepare individuals to follow a trade or to pursue a manual, 21 technical, mechanical, industrial, business, or commercial 22 occupation. 23 (22)(21)Beginning January 1, 2000, personal property, 24 including food, purchased through fundraising events for the 25 benefit of a public or private elementary or secondary 26 school, a group of those schools, or one or more school 27 districts if the events are sponsored by an entity recognized 28 by the school district that consists primarily of volunteers 29 and includes parents and teachers of the school children. 30 This paragraph does not apply to fundraising events (i) for 31 the benefit of private home instruction or (ii) for which the 32 fundraising entity purchases the personal property sold at 33 the events from another individual or entity that sold the 34 property for the purpose of resale by the fundraising entity SB854 Engrossed -23- LRB9204999SMdv 1 and that profits from the sale to the fundraising entity. 2 This paragraph is exempt from the provisions of Section 3-55. 3 (23)(20)Beginning January 1, 2000, new or used 4 automatic vending machines that prepare and serve hot food 5 and beverages, including coffee, soup, and other items, and 6 replacement parts for these machines. This paragraph is 7 exempt from the provisions of Section 3-55. 8 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 9 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 10 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, 11 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.) 12 Section 20. The Retailers' Occupation Tax Act is amended 13 by changing Sections 1g and 2-5 as follows: 14 (35 ILCS 120/1g) (from Ch. 120, par. 440g) 15 Sec. 1g. Application for exemption identification 16 number. On or before December 31, 1986, except as 17 hereinafter provided, each entity otherwise eligible under 18 exemption (11) of Section 2-5 of this Act and on and after 19 the effective date of this amendatory Act of the 92nd General 20 Assembly each entity otherwise eligible under exemption (9) 21 of Section 2-5 of this Act shall make application to the 22 Department for an exemption identification number. In the 23 case of a corporation, society, association, foundation, or 24 institution organized and operated exclusively for charitable 25 purposes and that has more than 50 subsidiary organizations 26 in Illinois, the Department, in its sole discretion, may 27 issue one exemption identification number to be used by the 28 parent organization and each subsidiary organization. 29 Each exemption identification number or renewal number 30 shall be valid for 5 years after the first day of the month 31 following the month of issuance. Not less than 3 months 32 before the expiration date, an application for renewal shall SB854 Engrossed -24- LRB9204999SMdv 1 be filed. 2 Each application for an exemption identification number 3 or a renewal number shall contain information and be 4 accompanied by documentation as shall be requested by the 5 Department. 6 (Source: P.A. 86-1475.) 7 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 8 Sec. 2-5. Exemptions. Gross receipts from proceeds from 9 the sale of the following tangible personal property are 10 exempt from the tax imposed by this Act: 11 (1) Farm chemicals. 12 (2) Farm machinery and equipment, both new and used, 13 including that manufactured on special order, certified by 14 the purchaser to be used primarily for production agriculture 15 or State or federal agricultural programs, including 16 individual replacement parts for the machinery and equipment, 17 including machinery and equipment purchased for lease, and 18 including implements of husbandry defined in Section 1-130 of 19 the Illinois Vehicle Code, farm machinery and agricultural 20 chemical and fertilizer spreaders, and nurse wagons required 21 to be registered under Section 3-809 of the Illinois Vehicle 22 Code, but excluding other motor vehicles required to be 23 registered under the Illinois Vehicle Code. Horticultural 24 polyhouses or hoop houses used for propagating, growing, or 25 overwintering plants shall be considered farm machinery and 26 equipment under this item (2). Agricultural chemical tender 27 tanks and dry boxes shall include units sold separately from 28 a motor vehicle required to be licensed and units sold 29 mounted on a motor vehicle required to be licensed, if the 30 selling price of the tender is separately stated. 31 Farm machinery and equipment shall include precision 32 farming equipment that is installed or purchased to be 33 installed on farm machinery and equipment including, but not SB854 Engrossed -25- LRB9204999SMdv 1 limited to, tractors, harvesters, sprayers, planters, 2 seeders, or spreaders. Precision farming equipment includes, 3 but is not limited to, soil testing sensors, computers, 4 monitors, software, global positioning and mapping systems, 5 and other such equipment. 6 Farm machinery and equipment also includes computers, 7 sensors, software, and related equipment used primarily in 8 the computer-assisted operation of production agriculture 9 facilities, equipment, and activities such as, but not 10 limited to, the collection, monitoring, and correlation of 11 animal and crop data for the purpose of formulating animal 12 diets and agricultural chemicals. This item (7) is exempt 13 from the provisions of Section 2-70. 14 (3) Distillation machinery and equipment, sold as a unit 15 or kit, assembled or installed by the retailer, certified by 16 the user to be used only for the production of ethyl alcohol 17 that will be used for consumption as motor fuel or as a 18 component of motor fuel for the personal use of the user, and 19 not subject to sale or resale. 20 (4) Graphic arts machinery and equipment, including 21 repair and replacement parts, both new and used, and 22 including that manufactured on special order or purchased for 23 lease, certified by the purchaser to be used primarily for 24 graphic arts production. 25 (5) A motor vehicle of the first division, a motor 26 vehicle of the second division that is a self-contained motor 27 vehicle designed or permanently converted to provide living 28 quarters for recreational, camping, or travel use, with 29 direct walk through access to the living quarters from the 30 driver's seat, or a motor vehicle of the second division that 31 is of the van configuration designed for the transportation 32 of not less than 7 nor more than 16 passengers, as defined in 33 Section 1-146 of the Illinois Vehicle Code, that is used for 34 automobile renting, as defined in the Automobile Renting SB854 Engrossed -26- LRB9204999SMdv 1 Occupation and Use Tax Act. 2 (6) Personal property sold by a teacher-sponsored 3 student organization affiliated with an elementary or 4 secondary school located in Illinois. 5 (7) Proceeds of that portion of the selling price of a 6 passenger car the sale of which is subject to the Replacement 7 Vehicle Tax. 8 (8) Personal property sold to an Illinois county fair 9 association for use in conducting, operating, or promoting 10 the county fair. 11 (9) Personal property sold to a not-for-profit arts or 12 cultural organization that establishes, by proof required by 13 the Department by rule, that it has received an exemption 14 under Section 501(c)(3) of the Internal Revenue Code and that 15 is organized and operated primarily for the presentation or 16 support of arts or cultural programming, activities, or 17 services. These organizations include, but are not limited 18 to, music and dramatic arts organizations such as symphony 19 orchestras and theatrical groups, arts and cultural service 20 organizations, local arts councils, visual arts 21 organizations, and media arts organizations. On and after the 22 effective date of this amendatory Act of the 92nd General 23 Assembly, however, an entity otherwise eligible for this 24 exemption shall not make tax-free purchases unless it has an 25 active identification number issued by the Department. 26 (10) 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. 33 (11) Personal property sold to a governmental body, to a 34 corporation, society, association, foundation, or institution SB854 Engrossed -27- LRB9204999SMdv 1 organized and operated exclusively for charitable, religious, 2 or educational purposes, or to a not-for-profit corporation, 3 society, association, foundation, institution, or 4 organization that has no compensated officers or employees 5 and that is organized and operated primarily for the 6 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 identification number issued by the Department. 13 (12) Personal property sold to interstate carriers for 14 hire for use as rolling stock moving in interstate commerce 15 or to lessors under leases of one year or longer executed or 16 in effect at the time of purchase by interstate carriers for 17 hire for use as rolling stock moving in interstate commerce 18 and equipment operated by a telecommunications provider, 19 licensed as a common carrier by the Federal Communications 20 Commission, which is permanently installed in or affixed to 21 aircraft moving in interstate commerce. 22 (13) Proceeds from sales to owners, lessors, or shippers 23 of tangible personal property that is utilized by interstate 24 carriers for hire for use as rolling stock moving in 25 interstate commerce and equipment operated by a 26 telecommunications provider, licensed as a common carrier by 27 the Federal Communications Commission, which is permanently 28 installed in or affixed to aircraft moving in interstate 29 commerce. 30 (14) Machinery and equipment that will be used by the 31 purchaser, or a lessee of the purchaser, primarily in the 32 process of manufacturing or assembling tangible personal 33 property for wholesale or retail sale or lease, whether the 34 sale or lease is made directly by the manufacturer or by some SB854 Engrossed -28- LRB9204999SMdv 1 other person, whether the materials used in the process are 2 owned by the manufacturer or some other person, or whether 3 the sale or lease is made apart from or as an incident to the 4 seller's engaging in the service occupation of producing 5 machines, tools, dies, jigs, patterns, gauges, or other 6 similar items of no commercial value on special order for a 7 particular purchaser. 8 (15) Proceeds of mandatory service charges separately 9 stated on customers' bills for purchase and consumption of 10 food and beverages, to the extent that the proceeds of the 11 service charge are in fact turned over as tips or as a 12 substitute for tips to the employees who participate directly 13 in preparing, serving, hosting or cleaning up the food or 14 beverage function with respect to which the service charge is 15 imposed. 16 (16) Petroleum products sold to a purchaser if the 17 seller is prohibited by federal law from charging tax to the 18 purchaser. 19 (17) Tangible personal property sold to a common carrier 20 by rail or motor that receives the physical possession of the 21 property in Illinois and that transports the property, or 22 shares with another common carrier in the transportation of 23 the property, out of Illinois on a standard uniform bill of 24 lading showing the seller of the property as the shipper or 25 consignor of the property to a destination outside Illinois, 26 for use outside Illinois. 27 (18) Legal tender, currency, medallions, or gold or 28 silver coinage issued by the State of Illinois, the 29 government of the United States of America, or the government 30 of any foreign country, and bullion. 31 (19) 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 SB854 Engrossed -29- LRB9204999SMdv 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 (20) 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 (21) 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 (22) Fuel and petroleum products sold to or used by an 18 air 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 (23) A transaction in which the purchase order is 25 received by a florist who is located outside Illinois, but 26 who has a florist located in Illinois deliver the property to 27 the purchaser or the purchaser's donee in Illinois. 28 (24) Fuel consumed or used in the operation of ships, 29 barges, or vessels that are used primarily in or for the 30 transportation of property or the conveyance of persons for 31 hire on rivers bordering on this State if the fuel is 32 delivered by the seller to the purchaser's barge, ship, or 33 vessel while it is afloat upon that bordering river. 34 (25) A motor vehicle sold in this State to a nonresident SB854 Engrossed -30- LRB9204999SMdv 1 even though the motor vehicle is delivered to the nonresident 2 in this State, if the motor vehicle is not to be titled in 3 this State, and if a driveaway decal permit is issued to the 4 motor vehicle as provided in Section 3-603 of the Illinois 5 Vehicle Code or if the nonresident purchaser has vehicle 6 registration plates to transfer to the motor vehicle upon 7 returning to his or her home state. The issuance of the 8 driveaway decal permit or having the out-of-state 9 registration plates to be transferred is prima facie evidence 10 that the motor vehicle will not be titled in this State. 11 (26) Semen used for artificial insemination of livestock 12 for direct agricultural production. 13 (27) Horses, or interests in horses, registered with and 14 meeting the requirements of any of the Arabian Horse Club 15 Registry of America, Appaloosa Horse Club, American Quarter 16 Horse Association, United States Trotting Association, or 17 Jockey Club, as appropriate, used for purposes of breeding or 18 racing for prizes. 19 (28) Computers and communications equipment utilized for 20 any hospital purpose and equipment used in the diagnosis, 21 analysis, or treatment of hospital patients sold to a lessor 22 who leases the equipment, under a lease of one year or longer 23 executed or in effect at the time of the purchase, to a 24 hospital that has been issued an active tax exemption 25 identification number by the Department under Section 1g of 26 this Act. 27 (29) Personal property sold to a lessor who leases the 28 property, under a lease of one year or longer executed or in 29 effect at the time of the purchase, to a governmental body 30 that has been issued an active tax exemption identification 31 number by the Department under Section 1g of this Act. 32 (30) Beginning with taxable years ending on or after 33 December 31, 1995 and ending with taxable years ending on or 34 before December 31, 2004, personal property that is donated SB854 Engrossed -31- LRB9204999SMdv 1 for disaster relief to be used in a State or federally 2 declared disaster area in Illinois or bordering Illinois by a 3 manufacturer or retailer that is registered in this State to 4 a corporation, society, association, foundation, or 5 institution that has been issued a sales tax exemption 6 identification number by the Department that assists victims 7 of the disaster who reside within the declared disaster area. 8 (31) Beginning with taxable years ending on or after 9 December 31, 1995 and ending with taxable years ending on or 10 before December 31, 2004, personal property that is used in 11 the performance of infrastructure repairs in this State, 12 including but not limited to municipal roads and streets, 13 access roads, bridges, sidewalks, waste disposal systems, 14 water and sewer line extensions, water distribution and 15 purification facilities, storm water drainage and retention 16 facilities, and sewage treatment facilities, resulting from a 17 State or federally declared disaster in Illinois or bordering 18 Illinois when such repairs are initiated on facilities 19 located in the declared disaster area within 6 months after 20 the disaster. 21 (32) Beginning July 1, 1999, game or game birds sold at 22 a "game breeding and hunting preserve area" or an "exotic 23 game hunting area" as those terms are used in the Wildlife 24 Code or at a hunting enclosure approved through rules adopted 25 by the Department of Natural Resources. This paragraph is 26 exempt from the provisions of Section 2-70. 27 (33)(32)A motor vehicle, as that term is defined in 28 Section 1-146 of the Illinois Vehicle Code, that is donated 29 to a corporation, limited liability company, society, 30 association, foundation, or institution that is determined by 31 the Department to be organized and operated exclusively for 32 educational purposes. For purposes of this exemption, "a 33 corporation, limited liability company, society, association, 34 foundation, or institution organized and operated exclusively SB854 Engrossed -32- LRB9204999SMdv 1 for educational purposes" means all tax-supported public 2 schools, private schools that offer systematic instruction in 3 useful branches of learning by methods common to public 4 schools and that compare favorably in their scope and 5 intensity with the course of study presented in tax-supported 6 schools, and vocational or technical schools or institutes 7 organized and operated exclusively to provide a course of 8 study of not less than 6 weeks duration and designed to 9 prepare individuals to follow a trade or to pursue a manual, 10 technical, mechanical, industrial, business, or commercial 11 occupation. 12 (34)(33)Beginning January 1, 2000, personal property, 13 including food, purchased through fundraising events for the 14 benefit of a public or private elementary or secondary 15 school, a group of those schools, or one or more school 16 districts if the events are sponsored by an entity recognized 17 by the school district that consists primarily of volunteers 18 and includes parents and teachers of the school children. 19 This paragraph does not apply to fundraising events (i) for 20 the benefit of private home instruction or (ii) for which the 21 fundraising entity purchases the personal property sold at 22 the events from another individual or entity that sold the 23 property for the purpose of resale by the fundraising entity 24 and that profits from the sale to the fundraising entity. 25 This paragraph is exempt from the provisions of Section 2-70. 26 (35)(32)Beginning January 1, 2000, new or used 27 automatic vending machines that prepare and serve hot food 28 and beverages, including coffee, soup, and other items, and 29 replacement parts for these machines. This paragraph is 30 exempt from the provisions of Section 2-70. 31 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98; 32 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff. 33 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533, 34 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99; SB854 Engrossed -33- LRB9204999SMdv 1 revised 9-28-99.) 2 Section 99. Effective date. This Act takes effect on 3 July 1, 2001.