100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1803

 

Introduced 2/9/2017, by Sen. William E. Brady

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-55  from Ch. 120, par. 439.3-55
35 ILCS 110/3-45  from Ch. 120, par. 439.33-45
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reinstates the exemption for the use or sale of tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois. Provides that the exemption sunsets on June 30, 2021 (currently, June 30, 2016). Effective immediately.


LRB100 05622 HLH 15636 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1803LRB100 05622 HLH 15636 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-55 as follows:
 
6    (35 ILCS 105/3-55)  (from Ch. 120, par. 439.3-55)
7    Sec. 3-55. Multistate exemption. To prevent actual or
8likely multistate taxation, the tax imposed by this Act does
9not apply to the use of tangible personal property in this
10State under the following circumstances:
11    (a) The use, in this State, of tangible personal property
12acquired outside this State by a nonresident individual and
13brought into this State by the individual for his or her own
14use while temporarily within this State or while passing
15through this State.
16    (b) The use, in this State, of tangible personal property
17by an interstate carrier for hire as rolling stock moving in
18interstate commerce or by lessors under a lease of one year or
19longer executed or in effect at the time of purchase of
20tangible personal property by interstate carriers for-hire for
21use as rolling stock moving in interstate commerce as long as
22so used by the interstate carriers for-hire, and equipment
23operated by a telecommunications provider, licensed as a common

 

 

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1carrier by the Federal Communications Commission, which is
2permanently installed in or affixed to aircraft moving in
3interstate commerce.
4    (c) The use, in this State, by owners, lessors, or shippers
5of tangible personal property that is utilized by interstate
6carriers for hire for use as rolling stock moving in interstate
7commerce as long as so used by the interstate carriers for
8hire, and equipment operated by a telecommunications provider,
9licensed as a common carrier by the Federal Communications
10Commission, which is permanently installed in or affixed to
11aircraft moving in interstate commerce.
12    (d) The use, in this State, of tangible personal property
13that is acquired outside this State and caused to be brought
14into this State by a person who has already paid a tax in
15another State in respect to the sale, purchase, or use of that
16property, to the extent of the amount of the tax properly due
17and paid in the other State.
18    (e) The temporary storage, in this State, of tangible
19personal property that is acquired outside this State and that,
20after being brought into this State and stored here
21temporarily, is used solely outside this State or is physically
22attached to or incorporated into other tangible personal
23property that is used solely outside this State, or is altered
24by converting, fabricating, manufacturing, printing,
25processing, or shaping, and, as altered, is used solely outside
26this State.

 

 

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1    (f) The temporary storage in this State of building
2materials and fixtures that are acquired either in this State
3or outside this State by an Illinois registered combination
4retailer and construction contractor, and that the purchaser
5thereafter uses outside this State by incorporating that
6property into real estate located outside this State.
7    (g) The use or purchase of tangible personal property by a
8common carrier by rail or motor that receives the physical
9possession of the property in Illinois, and that transports the
10property, or shares with another common carrier in the
11transportation of the property, out of Illinois on a standard
12uniform bill of lading showing the seller of the property as
13the shipper or consignor of the property to a destination
14outside Illinois, for use outside Illinois.
15    (h) Except as provided in subsection (h-1), the use, in
16this State, of a motor vehicle that was sold in this State to a
17nonresident, even though the motor vehicle is delivered to the
18nonresident in this State, if the motor vehicle is not to be
19titled in this State, and if a drive-away permit is issued to
20the motor vehicle as provided in Section 3-603 of the Illinois
21Vehicle Code or if the nonresident purchaser has vehicle
22registration plates to transfer to the motor vehicle upon
23returning to his or her home state. The issuance of the
24drive-away permit or having the out-of-state registration
25plates to be transferred shall be prima facie evidence that the
26motor vehicle will not be titled in this State.

 

 

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1    (h-1) The exemption under subsection (h) does not apply if
2the state in which the motor vehicle will be titled does not
3allow a reciprocal exemption for the use in that state of a
4motor vehicle sold and delivered in that state to an Illinois
5resident but titled in Illinois. The tax collected under this
6Act on the sale of a motor vehicle in this State to a resident
7of another state that does not allow a reciprocal exemption
8shall be imposed at a rate equal to the state's rate of tax on
9taxable property in the state in which the purchaser is a
10resident, except that the tax shall not exceed the tax that
11would otherwise be imposed under this Act. At the time of the
12sale, the purchaser shall execute a statement, signed under
13penalty of perjury, of his or her intent to title the vehicle
14in the state in which the purchaser is a resident within 30
15days after the sale and of the fact of the payment to the State
16of Illinois of tax in an amount equivalent to the state's rate
17of tax on taxable property in his or her state of residence and
18shall submit the statement to the appropriate tax collection
19agency in his or her state of residence. In addition, the
20retailer must retain a signed copy of the statement in his or
21her records. Nothing in this subsection shall be construed to
22require the removal of the vehicle from this state following
23the filing of an intent to title the vehicle in the purchaser's
24state of residence if the purchaser titles the vehicle in his
25or her state of residence within 30 days after the date of
26sale. The tax collected under this Act in accordance with this

 

 

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1subsection (h-1) shall be proportionately distributed as if the
2tax were collected at the 6.25% general rate imposed under this
3Act.
4    (h-2) The following exemptions apply with respect to
5certain aircraft:
6        (1) Beginning on July 1, 2007, no tax is imposed under
7    this Act on the purchase of an aircraft, as defined in
8    Section 3 of the Illinois Aeronautics Act, if all of the
9    following conditions are met:
10            (A) the aircraft leaves this State within 15 days
11        after the later of either the issuance of the final
12        billing for the purchase of the aircraft or the
13        authorized approval for return to service, completion
14        of the maintenance record entry, and completion of the
15        test flight and ground test for inspection, as required
16        by 14 C.F.R. 91.407;
17            (B) the aircraft is not based or registered in this
18        State after the purchase of the aircraft; and
19            (C) the purchaser provides the Department with a
20        signed and dated certification, on a form prescribed by
21        the Department, certifying that the requirements of
22        this item (1) are met. The certificate must also
23        include the name and address of the purchaser, the
24        address of the location where the aircraft is to be
25        titled or registered, the address of the primary
26        physical location of the aircraft, and other

 

 

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1        information that the Department may reasonably
2        require.
3        (2) Beginning on July 1, 2007, no tax is imposed under
4    this Act on the use of an aircraft, as defined in Section 3
5    of the Illinois Aeronautics Act, that is temporarily
6    located in this State for the purpose of a prepurchase
7    evaluation if all of the following conditions are met:
8            (A) the aircraft is not based or registered in this
9        State after the prepurchase evaluation; and
10            (B) the purchaser provides the Department with a
11        signed and dated certification, on a form prescribed by
12        the Department, certifying that the requirements of
13        this item (2) are met. The certificate must also
14        include the name and address of the purchaser, the
15        address of the location where the aircraft is to be
16        titled or registered, the address of the primary
17        physical location of the aircraft, and other
18        information that the Department may reasonably
19        require.
20        (3) Beginning on July 1, 2007, no tax is imposed under
21    this Act on the use of an aircraft, as defined in Section 3
22    of the Illinois Aeronautics Act, that is temporarily
23    located in this State for the purpose of a post-sale
24    customization if all of the following conditions are met:
25            (A) the aircraft leaves this State within 15 days
26        after the authorized approval for return to service,

 

 

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1        completion of the maintenance record entry, and
2        completion of the test flight and ground test for
3        inspection, as required by 14 C.F.R. 91.407;
4            (B) the aircraft is not based or registered in this
5        State either before or after the post-sale
6        customization; and
7            (C) the purchaser provides the Department with a
8        signed and dated certification, on a form prescribed by
9        the Department, certifying that the requirements of
10        this item (3) are met. The certificate must also
11        include the name and address of the purchaser, the
12        address of the location where the aircraft is to be
13        titled or registered, the address of the primary
14        physical location of the aircraft, and other
15        information that the Department may reasonably
16        require.
17    If tax becomes due under this subsection (h-2) because of
18the purchaser's use of the aircraft in this State, the
19purchaser shall file a return with the Department and pay the
20tax on the fair market value of the aircraft. This return and
21payment of the tax must be made no later than 30 days after the
22aircraft is used in a taxable manner in this State. The tax is
23based on the fair market value of the aircraft on the date that
24it is first used in a taxable manner in this State.
25    For purposes of this subsection (h-2):
26    "Based in this State" means hangared, stored, or otherwise

 

 

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1used, excluding post-sale customizations as defined in this
2Section, for 10 or more days in each 12-month period
3immediately following the date of the sale of the aircraft.
4    "Post-sale customization" means any improvement,
5maintenance, or repair that is performed on an aircraft
6following a transfer of ownership of the aircraft.
7    "Prepurchase evaluation" means an examination of an
8aircraft to provide a potential purchaser with information
9relevant to the potential purchase.
10    "Registered in this State" means an aircraft registered
11with the Department of Transportation, Aeronautics Division,
12or titled or registered with the Federal Aviation
13Administration to an address located in this State.
14    This subsection (h-2) is exempt from the provisions of
15Section 3-90.
16    (i) Beginning July 1, 1999, the use, in this State, of fuel
17acquired outside this State and brought into this State in the
18fuel supply tanks of locomotives engaged in freight hauling and
19passenger service for interstate commerce. This subsection is
20exempt from the provisions of Section 3-90.
21    (j) Beginning on January 1, 2002 and through June 30, 2016,
22and beginning again on the first day of the first month to
23occur on or after the effective date of this amendatory Act of
24the 100th General Assembly and through June 30, 2021, the use
25of tangible personal property purchased from an Illinois
26retailer by a taxpayer engaged in centralized purchasing

 

 

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1activities in Illinois who will, upon receipt of the property
2in Illinois, temporarily store the property in Illinois (i) for
3the purpose of subsequently transporting it outside this State
4for use or consumption thereafter solely outside this State or
5(ii) for the purpose of being processed, fabricated, or
6manufactured into, attached to, or incorporated into other
7tangible personal property to be transported outside this State
8and thereafter used or consumed solely outside this State. The
9Director of Revenue shall, pursuant to rules adopted in
10accordance with the Illinois Administrative Procedure Act,
11issue a permit to any taxpayer in good standing with the
12Department who is eligible for the exemption under this
13subsection (j). The permit issued under this subsection (j)
14shall authorize the holder, to the extent and in the manner
15specified in the rules adopted under this Act, to purchase
16tangible personal property from a retailer exempt from the
17taxes imposed by this Act. Taxpayers shall maintain all
18necessary books and records to substantiate the use and
19consumption of all such tangible personal property outside of
20the State of Illinois.
21(Source: P.A. 97-73, eff. 6-30-11.)
 
22    Section 10. The Service Use Tax Act is amended by changing
23Section 3-45 as follows:
 
24    (35 ILCS 110/3-45)  (from Ch. 120, par. 439.33-45)

 

 

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1    Sec. 3-45. Multistate exemption. To prevent actual or
2likely multistate taxation, the tax imposed by this Act does
3not apply to the use of tangible personal property in this
4State under the following circumstances:
5    (a) The use, in this State, of property acquired outside
6this State by a nonresident individual and brought into this
7State by the individual for his or her own use while
8temporarily within this State or while passing through this
9State.
10    (b) The use, in this State, of property that is acquired
11outside this State and that is moved into this State for use as
12rolling stock moving in interstate commerce.
13    (c) The use, in this State, of property that is acquired
14outside this State and caused to be brought into this State by
15a person who has already paid a tax in another state in respect
16to the sale, purchase, or use of that property, to the extent
17of the amount of the tax properly due and paid in the other
18state.
19    (d) The temporary storage, in this State, of property that
20is acquired outside this State and that after being brought
21into this State and stored here temporarily, is used solely
22outside this State or is physically attached to or incorporated
23into other property that is used solely outside this State, or
24is altered by converting, fabricating, manufacturing,
25printing, processing, or shaping, and, as altered, is used
26solely outside this State.

 

 

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1    (e) Beginning July 1, 1999, the use, in this State, of fuel
2acquired outside this State and brought into this State in the
3fuel supply tanks of locomotives engaged in freight hauling and
4passenger service for interstate commerce. This subsection is
5exempt from the provisions of Section 3-75.
6    (f) Beginning on January 1, 2002 and through June 30, 2016,
7and beginning again on the first day of the first month to
8occur on or after the effective date of this amendatory Act of
9the 100th General Assembly and through June 30, 2021, the use
10of tangible personal property purchased from an Illinois
11retailer by a taxpayer engaged in centralized purchasing
12activities in Illinois who will, upon receipt of the property
13in Illinois, temporarily store the property in Illinois (i) for
14the purpose of subsequently transporting it outside this State
15for use or consumption thereafter solely outside this State or
16(ii) for the purpose of being processed, fabricated, or
17manufactured into, attached to, or incorporated into other
18tangible personal property to be transported outside this State
19and thereafter used or consumed solely outside this State. The
20Director of Revenue shall, pursuant to rules adopted in
21accordance with the Illinois Administrative Procedure Act,
22issue a permit to any taxpayer in good standing with the
23Department who is eligible for the exemption under this
24subsection (f). The permit issued under this subsection (f)
25shall authorize the holder, to the extent and in the manner
26specified in the rules adopted under this Act, to purchase

 

 

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1tangible personal property from a retailer exempt from the
2taxes imposed by this Act. Taxpayers shall maintain all
3necessary books and records to substantiate the use and
4consumption of all such tangible personal property outside of
5the State of Illinois.
6(Source: P.A. 97-73, eff. 6-30-11.)
 
7    Section 15. The Service Occupation Tax Act is amended by
8changing Section 3-5 as follows:
 
9    (35 ILCS 115/3-5)
10    Sec. 3-5. Exemptions. The following tangible personal
11property is exempt from the tax imposed by this Act:
12    (1) Personal property sold by a corporation, society,
13association, foundation, institution, or organization, other
14than a limited liability company, that is organized and
15operated as a not-for-profit service enterprise for the benefit
16of persons 65 years of age or older if the personal property
17was not purchased by the enterprise for the purpose of resale
18by the enterprise.
19    (2) Personal property purchased by a not-for-profit
20Illinois county fair association for use in conducting,
21operating, or promoting the county fair.
22    (3) Personal property purchased by any not-for-profit arts
23or cultural organization that establishes, by proof required by
24the Department by rule, that it has received an exemption under

 

 

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1Section 501(c)(3) of the Internal Revenue Code and that is
2organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after the effective date
9of this amendatory Act of the 92nd General Assembly, however,
10an entity otherwise eligible for this exemption shall not make
11tax-free purchases unless it has an active identification
12number issued by the Department.
13    (4) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (5) Until July 1, 2003 and beginning again on September 1,
182004 through August 30, 2014, graphic arts machinery and
19equipment, including repair and replacement parts, both new and
20used, and including that manufactured on special order or
21purchased for lease, certified by the purchaser to be used
22primarily for graphic arts production. Equipment includes
23chemicals or chemicals acting as catalysts but only if the
24chemicals or chemicals acting as catalysts effect a direct and
25immediate change upon a graphic arts product.
26    (6) Personal property sold by a teacher-sponsored student

 

 

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1organization affiliated with an elementary or secondary school
2located in Illinois.
3    (7) Farm machinery and equipment, both new and used,
4including that manufactured on special order, certified by the
5purchaser to be used primarily for production agriculture or
6State or federal agricultural programs, including individual
7replacement parts for the machinery and equipment, including
8machinery and equipment purchased for lease, and including
9implements of husbandry defined in Section 1-130 of the
10Illinois Vehicle Code, farm machinery and agricultural
11chemical and fertilizer spreaders, and nurse wagons required to
12be registered under Section 3-809 of the Illinois Vehicle Code,
13but excluding other motor vehicles required to be registered
14under the Illinois Vehicle Code. Horticultural polyhouses or
15hoop houses used for propagating, growing, or overwintering
16plants shall be considered farm machinery and equipment under
17this item (7). Agricultural chemical tender tanks and dry boxes
18shall include units sold separately from a motor vehicle
19required to be licensed and units sold mounted on a motor
20vehicle required to be licensed if the selling price of the
21tender is separately stated.
22    Farm machinery and equipment shall include precision
23farming equipment that is installed or purchased to be
24installed on farm machinery and equipment including, but not
25limited to, tractors, harvesters, sprayers, planters, seeders,
26or spreaders. Precision farming equipment includes, but is not

 

 

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1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4    Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (7) is exempt from the
11provisions of Section 3-55.
12    (8) Until June 30, 2013, fuel and petroleum products sold
13to or used by an air common carrier, certified by the carrier
14to be used for consumption, shipment, or storage in the conduct
15of its business as an air common carrier, for a flight destined
16for or returning from a location or locations outside the
17United States without regard to previous or subsequent domestic
18stopovers.
19    Beginning July 1, 2013, fuel and petroleum products sold to
20or used by an air carrier, certified by the carrier to be used
21for consumption, shipment, or storage in the conduct of its
22business as an air common carrier, for a flight that (i) is
23engaged in foreign trade or is engaged in trade between the
24United States and any of its possessions and (ii) transports at
25least one individual or package for hire from the city of
26origination to the city of final destination on the same

 

 

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1aircraft, without regard to a change in the flight number of
2that aircraft.
3    (9) Proceeds of mandatory service charges separately
4stated on customers' bills for the purchase and consumption of
5food and beverages, to the extent that the proceeds of the
6service charge are in fact turned over as tips or as a
7substitute for tips to the employees who participate directly
8in preparing, serving, hosting or cleaning up the food or
9beverage function with respect to which the service charge is
10imposed.
11    (10) Until July 1, 2003, oil field exploration, drilling,
12and production equipment, including (i) rigs and parts of rigs,
13rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
14tubular goods, including casing and drill strings, (iii) pumps
15and pump-jack units, (iv) storage tanks and flow lines, (v) any
16individual replacement part for oil field exploration,
17drilling, and production equipment, and (vi) machinery and
18equipment purchased for lease; but excluding motor vehicles
19required to be registered under the Illinois Vehicle Code.
20    (11) Photoprocessing machinery and equipment, including
21repair and replacement parts, both new and used, including that
22manufactured on special order, certified by the purchaser to be
23used primarily for photoprocessing, and including
24photoprocessing machinery and equipment purchased for lease.
25    (12) Coal and aggregate exploration, mining, off-highway
26hauling, processing, maintenance, and reclamation equipment,

 

 

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1including replacement parts and equipment, and including
2equipment purchased for lease, but excluding motor vehicles
3required to be registered under the Illinois Vehicle Code. The
4changes made to this Section by Public Act 97-767 apply on and
5after July 1, 2003, but no claim for credit or refund is
6allowed on or after August 16, 2013 (the effective date of
7Public Act 98-456) for such taxes paid during the period
8beginning July 1, 2003 and ending on August 16, 2013 (the
9effective date of Public Act 98-456).
10    (13) Beginning January 1, 1992 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks and food that has been prepared for immediate
14consumption) and prescription and non-prescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or in a licensed facility as defined
21in the ID/DD Community Care Act, the MC/DD Act, or the
22Specialized Mental Health Rehabilitation Act of 2013.
23    (14) Semen used for artificial insemination of livestock
24for direct agricultural production.
25    (15) Horses, or interests in horses, registered with and
26meeting the requirements of any of the Arabian Horse Club

 

 

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1Registry of America, Appaloosa Horse Club, American Quarter
2Horse Association, United States Trotting Association, or
3Jockey Club, as appropriate, used for purposes of breeding or
4racing for prizes. This item (15) is exempt from the provisions
5of Section 3-55, and the exemption provided for under this item
6(15) applies for all periods beginning May 30, 1995, but no
7claim for credit or refund is allowed on or after January 1,
82008 (the effective date of Public Act 95-88) for such taxes
9paid during the period beginning May 30, 2000 and ending on
10January 1, 2008 (the effective date of Public Act 95-88).
11    (16) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients sold to a lessor
14who leases the equipment, under a lease of one year or longer
15executed or in effect at the time of the purchase, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act.
19    (17) Personal property sold to a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time of the purchase, to a governmental body that
22has been issued an active tax exemption identification number
23by the Department under Section 1g of the Retailers' Occupation
24Tax Act.
25    (18) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

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1before December 31, 2004, personal property that is donated for
2disaster relief to be used in a State or federally declared
3disaster area in Illinois or bordering Illinois by a
4manufacturer or retailer that is registered in this State to a
5corporation, society, association, foundation, or institution
6that has been issued a sales tax exemption identification
7number by the Department that assists victims of the disaster
8who reside within the declared disaster area.
9    (19) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is used in the
12performance of infrastructure repairs in this State, including
13but not limited to municipal roads and streets, access roads,
14bridges, sidewalks, waste disposal systems, water and sewer
15line extensions, water distribution and purification
16facilities, storm water drainage and retention facilities, and
17sewage treatment facilities, resulting from a State or
18federally declared disaster in Illinois or bordering Illinois
19when such repairs are initiated on facilities located in the
20declared disaster area within 6 months after the disaster.
21    (20) Beginning July 1, 1999, game or game birds sold at a
22"game breeding and hunting preserve area" as that term is used
23in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-55.
25    (21) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the Department
3to be organized and operated exclusively for educational
4purposes. For purposes of this exemption, "a corporation,
5limited liability company, society, association, foundation,
6or institution organized and operated exclusively for
7educational purposes" means all tax-supported public schools,
8private schools that offer systematic instruction in useful
9branches of learning by methods common to public schools and
10that compare favorably in their scope and intensity with the
11course of study presented in tax-supported schools, and
12vocational or technical schools or institutes organized and
13operated exclusively to provide a course of study of not less
14than 6 weeks duration and designed to prepare individuals to
15follow a trade or to pursue a manual, technical, mechanical,
16industrial, business, or commercial occupation.
17    (22) Beginning January 1, 2000, personal property,
18including food, purchased through fundraising events for the
19benefit of a public or private elementary or secondary school,
20a group of those schools, or one or more school districts if
21the events are sponsored by an entity recognized by the school
22district that consists primarily of volunteers and includes
23parents and teachers of the school children. This paragraph
24does not apply to fundraising events (i) for the benefit of
25private home instruction or (ii) for which the fundraising
26entity purchases the personal property sold at the events from

 

 

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-55.
5    (23) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-55.
15    (24) Beginning on the effective date of this amendatory Act
16of the 92nd General Assembly, computers and communications
17equipment utilized for any hospital purpose and equipment used
18in the diagnosis, analysis, or treatment of hospital patients
19sold to a lessor who leases the equipment, under a lease of one
20year or longer executed or in effect at the time of the
21purchase, to a hospital that has been issued an active tax
22exemption identification number by the Department under
23Section 1g of the Retailers' Occupation Tax Act. This paragraph
24is exempt from the provisions of Section 3-55.
25    (25) Beginning on the effective date of this amendatory Act
26of the 92nd General Assembly, personal property sold to a

 

 

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1lessor who leases the property, under a lease of one year or
2longer executed or in effect at the time of the purchase, to a
3governmental body that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. This paragraph is exempt from
6the provisions of Section 3-55.
7    (26) Beginning on January 1, 2002 and through June 30,
82016, and beginning again on the first day of the first month
9to occur on or after the effective date of this amendatory Act
10of the 100th General Assembly and through June 30, 2021,
11tangible personal property purchased from an Illinois retailer
12by a taxpayer engaged in centralized purchasing activities in
13Illinois who will, upon receipt of the property in Illinois,
14temporarily store the property in Illinois (i) for the purpose
15of subsequently transporting it outside this State for use or
16consumption thereafter solely outside this State or (ii) for
17the purpose of being processed, fabricated, or manufactured
18into, attached to, or incorporated into other tangible personal
19property to be transported outside this State and thereafter
20used or consumed solely outside this State. The Director of
21Revenue shall, pursuant to rules adopted in accordance with the
22Illinois Administrative Procedure Act, issue a permit to any
23taxpayer in good standing with the Department who is eligible
24for the exemption under this paragraph (26). The permit issued
25under this paragraph (26) shall authorize the holder, to the
26extent and in the manner specified in the rules adopted under

 

 

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1this Act, to purchase tangible personal property from a
2retailer exempt from the taxes imposed by this Act. Taxpayers
3shall maintain all necessary books and records to substantiate
4the use and consumption of all such tangible personal property
5outside of the State of Illinois.
6    (27) Beginning January 1, 2008, tangible personal property
7used in the construction or maintenance of a community water
8supply, as defined under Section 3.145 of the Environmental
9Protection Act, that is operated by a not-for-profit
10corporation that holds a valid water supply permit issued under
11Title IV of the Environmental Protection Act. This paragraph is
12exempt from the provisions of Section 3-55.
13    (28) Tangible personal property sold to a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt instruments
22issued by the public-facilities corporation in connection with
23the development of the municipal convention hall. This
24exemption includes existing public-facilities corporations as
25provided in Section 11-65-25 of the Illinois Municipal Code.
26This paragraph is exempt from the provisions of Section 3-55.

 

 

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1    (29) Beginning January 1, 2010, materials, parts,
2equipment, components, and furnishings incorporated into or
3upon an aircraft as part of the modification, refurbishment,
4completion, replacement, repair, or maintenance of the
5aircraft. This exemption includes consumable supplies used in
6the modification, refurbishment, completion, replacement,
7repair, and maintenance of aircraft, but excludes any
8materials, parts, equipment, components, and consumable
9supplies used in the modification, replacement, repair, and
10maintenance of aircraft engines or power plants, whether such
11engines or power plants are installed or uninstalled upon any
12such aircraft. "Consumable supplies" include, but are not
13limited to, adhesive, tape, sandpaper, general purpose
14lubricants, cleaning solution, latex gloves, and protective
15films. This exemption applies only to the transfer of
16qualifying tangible personal property incident to the
17modification, refurbishment, completion, replacement, repair,
18or maintenance of an aircraft by persons who (i) hold an Air
19Agency Certificate and are empowered to operate an approved
20repair station by the Federal Aviation Administration, (ii)
21have a Class IV Rating, and (iii) conduct operations in
22accordance with Part 145 of the Federal Aviation Regulations.
23The exemption does not include aircraft operated by a
24commercial air carrier providing scheduled passenger air
25service pursuant to authority issued under Part 121 or Part 129
26of the Federal Aviation Regulations. The changes made to this

 

 

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1paragraph (29) by Public Act 98-534 are declarative of existing
2law.
3    (30) Beginning January 1, 2017, menstrual pads, tampons,
4and menstrual cups.
5(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
698-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
77-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
 
8    Section 20. The Retailers' Occupation Tax Act is amended by
9changing Section 2-5 as follows:
 
10    (35 ILCS 120/2-5)
11    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
12sale of the following tangible personal property are exempt
13from the tax imposed by this Act:
14    (1) Farm chemicals.
15    (2) Farm machinery and equipment, both new and used,
16including that manufactured on special order, certified by the
17purchaser to be used primarily for production agriculture or
18State or federal agricultural programs, including individual
19replacement parts for the machinery and equipment, including
20machinery and equipment purchased for lease, and including
21implements of husbandry defined in Section 1-130 of the
22Illinois Vehicle Code, farm machinery and agricultural
23chemical and fertilizer spreaders, and nurse wagons required to
24be registered under Section 3-809 of the Illinois Vehicle Code,

 

 

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1but excluding other motor vehicles required to be registered
2under the Illinois Vehicle Code. Horticultural polyhouses or
3hoop houses used for propagating, growing, or overwintering
4plants shall be considered farm machinery and equipment under
5this item (2). Agricultural chemical tender tanks and dry boxes
6shall include units sold separately from a motor vehicle
7required to be licensed and units sold mounted on a motor
8vehicle required to be licensed, if the selling price of the
9tender is separately stated.
10    Farm machinery and equipment shall include precision
11farming equipment that is installed or purchased to be
12installed on farm machinery and equipment including, but not
13limited to, tractors, harvesters, sprayers, planters, seeders,
14or spreaders. Precision farming equipment includes, but is not
15limited to, soil testing sensors, computers, monitors,
16software, global positioning and mapping systems, and other
17such equipment.
18    Farm machinery and equipment also includes computers,
19sensors, software, and related equipment used primarily in the
20computer-assisted operation of production agriculture
21facilities, equipment, and activities such as, but not limited
22to, the collection, monitoring, and correlation of animal and
23crop data for the purpose of formulating animal diets and
24agricultural chemicals. This item (2) is exempt from the
25provisions of Section 2-70.
26    (3) Until July 1, 2003, distillation machinery and

 

 

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1equipment, sold as a unit or kit, assembled or installed by the
2retailer, certified by the user to be used only for the
3production of ethyl alcohol that will be used for consumption
4as motor fuel or as a component of motor fuel for the personal
5use of the user, and not subject to sale or resale.
6    (4) Until July 1, 2003 and beginning again September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product.
15    (5) A motor vehicle that is used for automobile renting, as
16defined in the Automobile Renting Occupation and Use Tax Act.
17This paragraph is exempt from the provisions of Section 2-70.
18    (6) Personal property sold by a teacher-sponsored student
19organization affiliated with an elementary or secondary school
20located in Illinois.
21    (7) Until July 1, 2003, proceeds of that portion of the
22selling price of a passenger car the sale of which is subject
23to the Replacement Vehicle Tax.
24    (8) Personal property sold to an Illinois county fair
25association for use in conducting, operating, or promoting the
26county fair.

 

 

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1    (9) Personal property sold to a not-for-profit arts or
2cultural organization that establishes, by proof required by
3the Department by rule, that it has received an exemption under
4Section 501(c)(3) of the Internal Revenue Code and that is
5organized and operated primarily for the presentation or
6support of arts or cultural programming, activities, or
7services. These organizations include, but are not limited to,
8music and dramatic arts organizations such as symphony
9orchestras and theatrical groups, arts and cultural service
10organizations, local arts councils, visual arts organizations,
11and media arts organizations. On and after the effective date
12of this amendatory Act of the 92nd General Assembly, however,
13an entity otherwise eligible for this exemption shall not make
14tax-free purchases unless it has an active identification
15number issued by the Department.
16    (10) Personal property sold by a corporation, society,
17association, foundation, institution, or organization, other
18than a limited liability company, that is organized and
19operated as a not-for-profit service enterprise for the benefit
20of persons 65 years of age or older if the personal property
21was not purchased by the enterprise for the purpose of resale
22by the enterprise.
23    (11) Personal property sold to a governmental body, to a
24corporation, society, association, foundation, or institution
25organized and operated exclusively for charitable, religious,
26or educational purposes, or to a not-for-profit corporation,

 

 

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1society, association, foundation, institution, or organization
2that has no compensated officers or employees and that is
3organized and operated primarily for the recreation of persons
455 years of age or older. A limited liability company may
5qualify for the exemption under this paragraph only if the
6limited liability company is organized and operated
7exclusively for educational purposes. On and after July 1,
81987, however, no entity otherwise eligible for this exemption
9shall make tax-free purchases unless it has an active
10identification number issued by the Department.
11    (12) Tangible personal property sold to interstate
12carriers for hire for use as rolling stock moving in interstate
13commerce or to lessors under leases of one year or longer
14executed or in effect at the time of purchase by interstate
15carriers for hire for use as rolling stock moving in interstate
16commerce and equipment operated by a telecommunications
17provider, licensed as a common carrier by the Federal
18Communications Commission, which is permanently installed in
19or affixed to aircraft moving in interstate commerce.
20    (12-5) On and after July 1, 2003 and through June 30, 2004,
21motor vehicles of the second division with a gross vehicle
22weight in excess of 8,000 pounds that are subject to the
23commercial distribution fee imposed under Section 3-815.1 of
24the Illinois Vehicle Code. Beginning on July 1, 2004 and
25through June 30, 2005, the use in this State of motor vehicles
26of the second division: (i) with a gross vehicle weight rating

 

 

SB1803- 30 -LRB100 05622 HLH 15636 b

1in excess of 8,000 pounds; (ii) that are subject to the
2commercial distribution fee imposed under Section 3-815.1 of
3the Illinois Vehicle Code; and (iii) that are primarily used
4for commercial purposes. Through June 30, 2005, this exemption
5applies to repair and replacement parts added after the initial
6purchase of such a motor vehicle if that motor vehicle is used
7in a manner that would qualify for the rolling stock exemption
8otherwise provided for in this Act. For purposes of this
9paragraph, "used for commercial purposes" means the
10transportation of persons or property in furtherance of any
11commercial or industrial enterprise whether for-hire or not.
12    (13) Proceeds from sales to owners, lessors, or shippers of
13tangible personal property that is utilized by interstate
14carriers for hire for use as rolling stock moving in interstate
15commerce and equipment operated by a telecommunications
16provider, licensed as a common carrier by the Federal
17Communications Commission, which is permanently installed in
18or affixed to aircraft moving in interstate commerce.
19    (14) Machinery and equipment that will be used by the
20purchaser, or a lessee of the purchaser, primarily in the
21process of manufacturing or assembling tangible personal
22property for wholesale or retail sale or lease, whether the
23sale or lease is made directly by the manufacturer or by some
24other person, whether the materials used in the process are
25owned by the manufacturer or some other person, or whether the
26sale or lease is made apart from or as an incident to the

 

 

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1seller's engaging in the service occupation of producing
2machines, tools, dies, jigs, patterns, gauges, or other similar
3items of no commercial value on special order for a particular
4purchaser. The exemption provided by this paragraph (14) does
5not include machinery and equipment used in (i) the generation
6of electricity for wholesale or retail sale; (ii) the
7generation or treatment of natural or artificial gas for
8wholesale or retail sale that is delivered to customers through
9pipes, pipelines, or mains; or (iii) the treatment of water for
10wholesale or retail sale that is delivered to customers through
11pipes, pipelines, or mains. The provisions of Public Act 98-583
12are declaratory of existing law as to the meaning and scope of
13this exemption.
14    (15) Proceeds of mandatory service charges separately
15stated on customers' bills for purchase and consumption of food
16and beverages, to the extent that the proceeds of the service
17charge are in fact turned over as tips or as a substitute for
18tips to the employees who participate directly in preparing,
19serving, hosting or cleaning up the food or beverage function
20with respect to which the service charge is imposed.
21    (16) Petroleum products sold to a purchaser if the seller
22is prohibited by federal law from charging tax to the
23purchaser.
24    (17) Tangible personal property sold to a common carrier by
25rail or motor that receives the physical possession of the
26property in Illinois and that transports the property, or

 

 

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1shares with another common carrier in the transportation of the
2property, out of Illinois on a standard uniform bill of lading
3showing the seller of the property as the shipper or consignor
4of the property to a destination outside Illinois, for use
5outside Illinois.
6    (18) Legal tender, currency, medallions, or gold or silver
7coinage issued by the State of Illinois, the government of the
8United States of America, or the government of any foreign
9country, and bullion.
10    (19) Until July 1 2003, oil field exploration, drilling,
11and production equipment, including (i) rigs and parts of rigs,
12rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
13tubular goods, including casing and drill strings, (iii) pumps
14and pump-jack units, (iv) storage tanks and flow lines, (v) any
15individual replacement part for oil field exploration,
16drilling, and production equipment, and (vi) machinery and
17equipment purchased for lease; but excluding motor vehicles
18required to be registered under the Illinois Vehicle Code.
19    (20) Photoprocessing machinery and equipment, including
20repair and replacement parts, both new and used, including that
21manufactured on special order, certified by the purchaser to be
22used primarily for photoprocessing, and including
23photoprocessing machinery and equipment purchased for lease.
24    (21) Coal and aggregate exploration, mining, off-highway
25hauling, processing, maintenance, and reclamation equipment,
26including replacement parts and equipment, and including

 

 

SB1803- 33 -LRB100 05622 HLH 15636 b

1equipment purchased for lease, but excluding motor vehicles
2required to be registered under the Illinois Vehicle Code. The
3changes made to this Section by Public Act 97-767 apply on and
4after July 1, 2003, but no claim for credit or refund is
5allowed on or after August 16, 2013 (the effective date of
6Public Act 98-456) for such taxes paid during the period
7beginning July 1, 2003 and ending on August 16, 2013 (the
8effective date of Public Act 98-456).
9    (22) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air carrier, certified by the carrier to be
11used for consumption, shipment, or storage in the conduct of
12its business as an air common carrier, for a flight destined
13for or returning from a location or locations outside the
14United States without regard to previous or subsequent domestic
15stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold to
17or used by an air carrier, certified by the carrier to be used
18for consumption, shipment, or storage in the conduct of its
19business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports at
22least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (23) A transaction in which the purchase order is received

 

 

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1by a florist who is located outside Illinois, but who has a
2florist located in Illinois deliver the property to the
3purchaser or the purchaser's donee in Illinois.
4    (24) Fuel consumed or used in the operation of ships,
5barges, or vessels that are used primarily in or for the
6transportation of property or the conveyance of persons for
7hire on rivers bordering on this State if the fuel is delivered
8by the seller to the purchaser's barge, ship, or vessel while
9it is afloat upon that bordering river.
10    (25) Except as provided in item (25-5) of this Section, a
11motor vehicle sold in this State to a nonresident even though
12the motor vehicle is delivered to the nonresident in this
13State, if the motor vehicle is not to be titled in this State,
14and if a drive-away permit is issued to the motor vehicle as
15provided in Section 3-603 of the Illinois Vehicle Code or if
16the nonresident purchaser has vehicle registration plates to
17transfer to the motor vehicle upon returning to his or her home
18state. The issuance of the drive-away permit or having the
19out-of-state registration plates to be transferred is prima
20facie evidence that the motor vehicle will not be titled in
21this State.
22    (25-5) The exemption under item (25) does not apply if the
23state in which the motor vehicle will be titled does not allow
24a reciprocal exemption for a motor vehicle sold and delivered
25in that state to an Illinois resident but titled in Illinois.
26The tax collected under this Act on the sale of a motor vehicle

 

 

SB1803- 35 -LRB100 05622 HLH 15636 b

1in this State to a resident of another state that does not
2allow a reciprocal exemption shall be imposed at a rate equal
3to the state's rate of tax on taxable property in the state in
4which the purchaser is a resident, except that the tax shall
5not exceed the tax that would otherwise be imposed under this
6Act. At the time of the sale, the purchaser shall execute a
7statement, signed under penalty of perjury, of his or her
8intent to title the vehicle in the state in which the purchaser
9is a resident within 30 days after the sale and of the fact of
10the payment to the State of Illinois of tax in an amount
11equivalent to the state's rate of tax on taxable property in
12his or her state of residence and shall submit the statement to
13the appropriate tax collection agency in his or her state of
14residence. In addition, the retailer must retain a signed copy
15of the statement in his or her records. Nothing in this item
16shall be construed to require the removal of the vehicle from
17this state following the filing of an intent to title the
18vehicle in the purchaser's state of residence if the purchaser
19titles the vehicle in his or her state of residence within 30
20days after the date of sale. The tax collected under this Act
21in accordance with this item (25-5) shall be proportionately
22distributed as if the tax were collected at the 6.25% general
23rate imposed under this Act.
24    (25-7) Beginning on July 1, 2007, no tax is imposed under
25this Act on the sale of an aircraft, as defined in Section 3 of
26the Illinois Aeronautics Act, if all of the following

 

 

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1conditions are met:
2        (1) the aircraft leaves this State within 15 days after
3    the later of either the issuance of the final billing for
4    the sale of the aircraft, or the authorized approval for
5    return to service, completion of the maintenance record
6    entry, and completion of the test flight and ground test
7    for inspection, as required by 14 C.F.R. 91.407;
8        (2) the aircraft is not based or registered in this
9    State after the sale of the aircraft; and
10        (3) the seller retains in his or her books and records
11    and provides to the Department a signed and dated
12    certification from the purchaser, on a form prescribed by
13    the Department, certifying that the requirements of this
14    item (25-7) are met. The certificate must also include the
15    name and address of the purchaser, the address of the
16    location where the aircraft is to be titled or registered,
17    the address of the primary physical location of the
18    aircraft, and other information that the Department may
19    reasonably require.
20    For purposes of this item (25-7):
21    "Based in this State" means hangared, stored, or otherwise
22used, excluding post-sale customizations as defined in this
23Section, for 10 or more days in each 12-month period
24immediately following the date of the sale of the aircraft.
25    "Registered in this State" means an aircraft registered
26with the Department of Transportation, Aeronautics Division,

 

 

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1or titled or registered with the Federal Aviation
2Administration to an address located in this State.
3    This paragraph (25-7) is exempt from the provisions of
4Section 2-70.
5    (26) Semen used for artificial insemination of livestock
6for direct agricultural production.
7    (27) Horses, or interests in horses, registered with and
8meeting the requirements of any of the Arabian Horse Club
9Registry of America, Appaloosa Horse Club, American Quarter
10Horse Association, United States Trotting Association, or
11Jockey Club, as appropriate, used for purposes of breeding or
12racing for prizes. This item (27) is exempt from the provisions
13of Section 2-70, and the exemption provided for under this item
14(27) applies for all periods beginning May 30, 1995, but no
15claim for credit or refund is allowed on or after January 1,
162008 (the effective date of Public Act 95-88) for such taxes
17paid during the period beginning May 30, 2000 and ending on
18January 1, 2008 (the effective date of Public Act 95-88).
19    (28) Computers and communications equipment utilized for
20any hospital purpose and equipment used in the diagnosis,
21analysis, or treatment of hospital patients sold to a lessor
22who leases the equipment, under a lease of one year or longer
23executed or in effect at the time of the purchase, to a
24hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of
26this Act.

 

 

SB1803- 38 -LRB100 05622 HLH 15636 b

1    (29) Personal property sold to a lessor who leases the
2property, under a lease of one year or longer executed or in
3effect at the time of the purchase, to a governmental body that
4has been issued an active tax exemption identification number
5by the Department under Section 1g of this Act.
6    (30) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is donated for
9disaster relief to be used in a State or federally declared
10disaster area in Illinois or bordering Illinois by a
11manufacturer or retailer that is registered in this State to a
12corporation, society, association, foundation, or institution
13that has been issued a sales tax exemption identification
14number by the Department that assists victims of the disaster
15who reside within the declared disaster area.
16    (31) Beginning with taxable years ending on or after
17December 31, 1995 and ending with taxable years ending on or
18before December 31, 2004, personal property that is used in the
19performance of infrastructure repairs in this State, including
20but not limited to municipal roads and streets, access roads,
21bridges, sidewalks, waste disposal systems, water and sewer
22line extensions, water distribution and purification
23facilities, storm water drainage and retention facilities, and
24sewage treatment facilities, resulting from a State or
25federally declared disaster in Illinois or bordering Illinois
26when such repairs are initiated on facilities located in the

 

 

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1declared disaster area within 6 months after the disaster.
2    (32) Beginning July 1, 1999, game or game birds sold at a
3"game breeding and hunting preserve area" as that term is used
4in the Wildlife Code. This paragraph is exempt from the
5provisions of Section 2-70.
6    (33) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the Department
10to be organized and operated exclusively for educational
11purposes. For purposes of this exemption, "a corporation,
12limited liability company, society, association, foundation,
13or institution organized and operated exclusively for
14educational purposes" means all tax-supported public schools,
15private schools that offer systematic instruction in useful
16branches of learning by methods common to public schools and
17that compare favorably in their scope and intensity with the
18course of study presented in tax-supported schools, and
19vocational or technical schools or institutes organized and
20operated exclusively to provide a course of study of not less
21than 6 weeks duration and designed to prepare individuals to
22follow a trade or to pursue a manual, technical, mechanical,
23industrial, business, or commercial occupation.
24    (34) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

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1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 2-70.
12    (35) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and other
15items, and replacement parts for these machines. Beginning
16January 1, 2002 and through June 30, 2003, machines and parts
17for machines used in commercial, coin-operated amusement and
18vending business if a use or occupation tax is paid on the
19gross receipts derived from the use of the commercial,
20coin-operated amusement and vending machines. This paragraph
21is exempt from the provisions of Section 2-70.
22    (35-5) Beginning August 23, 2001 and through June 30, 2016,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or a licensed facility as defined in
7the ID/DD Community Care Act, the MC/DD Act, or the Specialized
8Mental Health Rehabilitation Act of 2013.
9    (36) Beginning August 2, 2001, computers and
10communications equipment utilized for any hospital purpose and
11equipment used in the diagnosis, analysis, or treatment of
12hospital patients sold to a lessor who leases the equipment,
13under a lease of one year or longer executed or in effect at
14the time of the purchase, to a hospital that has been issued an
15active tax exemption identification number by the Department
16under Section 1g of this Act. This paragraph is exempt from the
17provisions of Section 2-70.
18    (37) Beginning August 2, 2001, personal property sold to a
19lessor who leases the property, under a lease of one year or
20longer executed or in effect at the time of the purchase, to a
21governmental body that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23this Act. This paragraph is exempt from the provisions of
24Section 2-70.
25    (38) Beginning on January 1, 2002 and through June 30,
262016, and beginning again on the first day of the first month

 

 

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1to occur on or after the effective date of this amendatory Act
2of the 100th General Assembly and through June 30, 2021,
3tangible personal property purchased from an Illinois retailer
4by a taxpayer engaged in centralized purchasing activities in
5Illinois who will, upon receipt of the property in Illinois,
6temporarily store the property in Illinois (i) for the purpose
7of subsequently transporting it outside this State for use or
8consumption thereafter solely outside this State or (ii) for
9the purpose of being processed, fabricated, or manufactured
10into, attached to, or incorporated into other tangible personal
11property to be transported outside this State and thereafter
12used or consumed solely outside this State. The Director of
13Revenue shall, pursuant to rules adopted in accordance with the
14Illinois Administrative Procedure Act, issue a permit to any
15taxpayer in good standing with the Department who is eligible
16for the exemption under this paragraph (38). The permit issued
17under this paragraph (38) shall authorize the holder, to the
18extent and in the manner specified in the rules adopted under
19this Act, to purchase tangible personal property from a
20retailer exempt from the taxes imposed by this Act. Taxpayers
21shall maintain all necessary books and records to substantiate
22the use and consumption of all such tangible personal property
23outside of the State of Illinois.
24    (39) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued under
3Title IV of the Environmental Protection Act. This paragraph is
4exempt from the provisions of Section 2-70.
5    (40) Beginning January 1, 2010, materials, parts,
6equipment, components, and furnishings incorporated into or
7upon an aircraft as part of the modification, refurbishment,
8completion, replacement, repair, or maintenance of the
9aircraft. This exemption includes consumable supplies used in
10the modification, refurbishment, completion, replacement,
11repair, and maintenance of aircraft, but excludes any
12materials, parts, equipment, components, and consumable
13supplies used in the modification, replacement, repair, and
14maintenance of aircraft engines or power plants, whether such
15engines or power plants are installed or uninstalled upon any
16such aircraft. "Consumable supplies" include, but are not
17limited to, adhesive, tape, sandpaper, general purpose
18lubricants, cleaning solution, latex gloves, and protective
19films. This exemption applies only to the sale of qualifying
20tangible personal property to persons who modify, refurbish,
21complete, replace, or maintain an aircraft and who (i) hold an
22Air Agency Certificate and are empowered to operate an approved
23repair station by the Federal Aviation Administration, (ii)
24have a Class IV Rating, and (iii) conduct operations in
25accordance with Part 145 of the Federal Aviation Regulations.
26The exemption does not include aircraft operated by a

 

 

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1commercial air carrier providing scheduled passenger air
2service pursuant to authority issued under Part 121 or Part 129
3of the Federal Aviation Regulations. The changes made to this
4paragraph (40) by Public Act 98-534 are declarative of existing
5law.
6    (41) Tangible personal property sold to a
7public-facilities corporation, as described in Section
811-65-10 of the Illinois Municipal Code, for purposes of
9constructing or furnishing a municipal convention hall, but
10only if the legal title to the municipal convention hall is
11transferred to the municipality without any further
12consideration by or on behalf of the municipality at the time
13of the completion of the municipal convention hall or upon the
14retirement or redemption of any bonds or other debt instruments
15issued by the public-facilities corporation in connection with
16the development of the municipal convention hall. This
17exemption includes existing public-facilities corporations as
18provided in Section 11-65-25 of the Illinois Municipal Code.
19This paragraph is exempt from the provisions of Section 2-70.
20    (42) Beginning January 1, 2017, menstrual pads, tampons,
21and menstrual cups.
22(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2398-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
241-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
257-29-15; 99-855, eff. 8-19-16.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.