97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0185

 

Introduced 1/18/2011, by Rep. Donald L. Moffitt

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
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. Provides that, for a period of 10 years beginning on the effective date of the amendatory Act, new flexible fuel vehicles, as defined in provisions of the Alternate Fuels Act, new hybrid vehicles, and new electric vehicles are exempt from taxation under the Acts. Effective July 1, 2011.


LRB097 02983 HLH 43009 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0185LRB097 02983 HLH 43009 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
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

 

 

HB0185- 2 -LRB097 02983 HLH 43009 b

1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

HB0185- 3 -LRB097 02983 HLH 43009 b

1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) 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    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle of the first division, a motor vehicle
21of the second division that is a self-contained motor vehicle
22designed or permanently converted to provide living quarters
23for recreational, camping, or travel use, with direct walk
24through to the living quarters from the driver's seat, or a
25motor vehicle of the second division that is of the van
26configuration designed for the transportation of not less than

 

 

HB0185- 4 -LRB097 02983 HLH 43009 b

17 nor more than 16 passengers, as defined in Section 1-146 of
2the Illinois Vehicle Code, that is used for automobile renting,
3as defined in the Automobile Renting Occupation and Use Tax
4Act.
5    (11) Farm machinery and equipment, both new and used,
6including that manufactured on special order, certified by the
7purchaser to be used primarily for production agriculture or
8State or federal agricultural programs, including individual
9replacement parts for the machinery and equipment, including
10machinery and equipment purchased for lease, and including
11implements of husbandry defined in Section 1-130 of the
12Illinois Vehicle Code, farm machinery and agricultural
13chemical and fertilizer spreaders, and nurse wagons required to
14be registered under Section 3-809 of the Illinois Vehicle Code,
15but excluding other motor vehicles required to be registered
16under the Illinois Vehicle Code. Horticultural polyhouses or
17hoop houses used for propagating, growing, or overwintering
18plants shall be considered farm machinery and equipment under
19this item (11). Agricultural chemical tender tanks and dry
20boxes shall include units sold separately from a motor vehicle
21required to be licensed and units sold mounted on a motor
22vehicle required to be licensed if the selling price of the
23tender is separately stated.
24    Farm machinery and equipment shall include precision
25farming equipment that is installed or purchased to be
26installed on farm machinery and equipment including, but not

 

 

HB0185- 5 -LRB097 02983 HLH 43009 b

1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (11) is exempt from the
13provisions of Section 3-90.
14    (12) Fuel and petroleum products sold to or used by an air
15common carrier, certified by the carrier to be used for
16consumption, shipment, or storage in the conduct of its
17business as an air common carrier, for a flight destined for or
18returning from a location or locations outside the United
19States without regard to previous or subsequent domestic
20stopovers.
21    (13) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages purchased at retail from a retailer, to the
24extent that the proceeds of the service charge are in fact
25turned over as tips or as a substitute for tips to the
26employees who participate directly in preparing, serving,

 

 

HB0185- 6 -LRB097 02983 HLH 43009 b

1hosting or cleaning up the food or beverage function with
2respect to which the service charge is imposed.
3    (14) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (15) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (16) Until July 1, 2003, coal exploration, mining,
18offhighway hauling, processing, maintenance, and reclamation
19equipment, including replacement parts and equipment, and
20including equipment purchased for lease, but excluding motor
21vehicles required to be registered under the Illinois Vehicle
22Code.
23    (17) Until July 1, 2003, distillation machinery and
24equipment, sold as a unit or kit, assembled or installed by the
25retailer, certified by the user to be used only for the
26production of ethyl alcohol that will be used for consumption

 

 

HB0185- 7 -LRB097 02983 HLH 43009 b

1as motor fuel or as a component of motor fuel for the personal
2use of the user, and not subject to sale or resale.
3    (18) Manufacturing and assembling machinery and equipment
4used primarily in the process of manufacturing or assembling
5tangible personal property for wholesale or retail sale or
6lease, whether that sale or lease is made directly by the
7manufacturer or by some other person, whether the materials
8used in the process are owned by the manufacturer or some other
9person, or whether that sale or lease is made apart from or as
10an incident to the seller's engaging in the service occupation
11of producing machines, tools, dies, jigs, patterns, gauges, or
12other similar items of no commercial value on special order for
13a particular purchaser.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the provisions

 

 

HB0185- 8 -LRB097 02983 HLH 43009 b

1of Section 3-90, and the exemption provided for under this item
2(21) applies for all periods beginning May 30, 1995, but no
3claim for credit or refund is allowed on or after January 1,
42008 for such taxes paid during the period beginning May 30,
52000 and ending on January 1, 2008.
6    (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. If the equipment is leased in a
15manner that does not qualify for this exemption or is used in
16any other non-exempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Service Use Tax Act, as the
18case may be, based on the fair market value of the property at
19the time the non-qualifying use occurs. No lessor shall collect
20or attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall have
25a legal right to claim a refund of that amount from the lessor.
26If, however, that amount is not refunded to the lessee for any

 

 

HB0185- 9 -LRB097 02983 HLH 43009 b

1reason, the lessor is liable to pay that amount to the
2Department.
3    (23) Personal property purchased by a lessor who leases the
4property, under a lease of one year or longer executed or in
5effect at the time the lessor would otherwise be subject to the
6tax imposed by this Act, to a governmental body that has been
7issued an active sales tax exemption identification number by
8the Department under Section 1g of the Retailers' Occupation
9Tax Act. If the property is leased in a manner that does not
10qualify for this exemption or used in any other non-exempt
11manner, the lessor shall be liable for the tax imposed under
12this Act or the Service Use Tax Act, as the case may be, based
13on the fair market value of the property at the time the
14non-qualifying use occurs. No lessor shall collect or attempt
15to collect an amount (however designated) that purports to
16reimburse that lessor for the tax imposed by this Act or the
17Service Use Tax Act, as the case may be, if the tax has not been
18paid by the lessor. If a lessor improperly collects any such
19amount from the lessee, the lessee shall have a legal right to
20claim a refund of that amount from the lessor. If, however,
21that amount is not refunded to the lessee for any reason, the
22lessor is liable to pay that amount to the Department.
23    (24) Beginning with taxable years ending on or after
24December 31, 1995 and ending with taxable years ending on or
25before December 31, 2004, personal property that is donated for
26disaster relief to be used in a State or federally declared

 

 

HB0185- 10 -LRB097 02983 HLH 43009 b

1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (25) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in the
10performance of infrastructure repairs in this State, including
11but not limited to municipal roads and streets, access roads,
12bridges, sidewalks, waste disposal systems, water and sewer
13line extensions, water distribution and purification
14facilities, storm water drainage and retention facilities, and
15sewage treatment facilities, resulting from a State or
16federally declared disaster in Illinois or bordering Illinois
17when such repairs are initiated on facilities located in the
18declared disaster area within 6 months after the disaster.
19    (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" or an "exotic
21game hunting area" as those terms are used in the Wildlife Code
22or at a hunting enclosure approved through rules adopted by the
23Department of Natural Resources. This paragraph is exempt from
24the provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

HB0185- 11 -LRB097 02983 HLH 43009 b

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    (28) 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

 

 

HB0185- 12 -LRB097 02983 HLH 43009 b

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 3-90.
5    (29) 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 3-90.
15    (30) Beginning January 1, 2001 and through June 30, 2011,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the MR/DD Community Care Act.

 

 

HB0185- 13 -LRB097 02983 HLH 43009 b

1    (31) Beginning on the effective date of this amendatory Act
2of the 92nd General Assembly, computers and communications
3equipment utilized for any hospital purpose and equipment used
4in the diagnosis, analysis, or treatment of hospital patients
5purchased by a lessor who leases the equipment, under a lease
6of one year or longer executed or in effect at the time the
7lessor would otherwise be subject to the tax imposed by this
8Act, to a hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act. If the equipment is leased in a
11manner that does not qualify for this exemption or is used in
12any other nonexempt manner, the lessor shall be liable for the
13tax imposed under this Act or the Service Use Tax Act, as the
14case may be, based on the fair market value of the property at
15the time the nonqualifying use occurs. No lessor shall collect
16or attempt to collect an amount (however designated) that
17purports to reimburse that lessor for the tax imposed by this
18Act or the Service Use Tax Act, as the case may be, if the tax
19has not been paid by the lessor. If a lessor improperly
20collects any such amount from the lessee, the lessee shall have
21a legal right to claim a refund of that amount from the lessor.
22If, however, that amount is not refunded to the lessee for any
23reason, the lessor is liable to pay that amount to the
24Department. This paragraph is exempt from the provisions of
25Section 3-90.
26    (32) Beginning on the effective date of this amendatory Act

 

 

HB0185- 14 -LRB097 02983 HLH 43009 b

1of the 92nd General Assembly, personal property purchased by a
2lessor who leases the property, under a lease of one year or
3longer executed or in effect at the time the lessor would
4otherwise be subject to the tax imposed by this Act, to a
5governmental body that has been issued an active sales tax
6exemption identification number by the Department under
7Section 1g of the Retailers' Occupation Tax Act. If the
8property is leased in a manner that does not qualify for this
9exemption or used in any other nonexempt manner, the lessor
10shall be liable for the tax imposed under this Act or the
11Service Use Tax Act, as the case may be, based on the fair
12market value of the property at the time the nonqualifying use
13occurs. No lessor shall collect or attempt to collect an amount
14(however designated) that purports to reimburse that lessor for
15the tax imposed by this Act or the Service Use Tax Act, as the
16case may be, if the tax has not been paid by the lessor. If a
17lessor improperly collects any such amount from the lessee, the
18lessee shall have a legal right to claim a refund of that
19amount from the lessor. If, however, that amount is not
20refunded to the lessee for any reason, the lessor is liable to
21pay that amount to the Department. This paragraph is exempt
22from the provisions of Section 3-90.
23    (33) On and after July 1, 2003 and through June 30, 2004,
24the use in this State of motor vehicles of the second division
25with a gross vehicle weight in excess of 8,000 pounds and that
26are subject to the commercial distribution fee imposed under

 

 

HB0185- 15 -LRB097 02983 HLH 43009 b

1Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
21, 2004 and through June 30, 2005, the use in this State of
3motor vehicles of the second division: (i) with a gross vehicle
4weight rating in excess of 8,000 pounds; (ii) that are subject
5to the commercial distribution fee imposed under Section
63-815.1 of the Illinois Vehicle Code; and (iii) that are
7primarily used for commercial purposes. Through June 30, 2005,
8this exemption applies to repair and replacement parts added
9after the initial purchase of such a motor vehicle if that
10motor vehicle is used in a manner that would qualify for the
11rolling stock exemption otherwise provided for in this Act. For
12purposes of this paragraph, the term "used for commercial
13purposes" means the transportation of persons or property in
14furtherance of any commercial or industrial enterprise,
15whether for-hire or not.
16    (34) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued under
21Title IV of the Environmental Protection Act. This paragraph is
22exempt from the provisions of Section 3-90.
23    (35) Beginning January 1, 2010, materials, parts,
24equipment, components, and furnishings incorporated into or
25upon an aircraft as part of the modification, refurbishment,
26completion, replacement, repair, or maintenance of the

 

 

HB0185- 16 -LRB097 02983 HLH 43009 b

1aircraft. This exemption includes consumable supplies used in
2the modification, refurbishment, completion, replacement,
3repair, and maintenance of aircraft, but excludes any
4materials, parts, equipment, components, and consumable
5supplies used in the modification, replacement, repair, and
6maintenance of aircraft engines or power plants, whether such
7engines or power plants are installed or uninstalled upon any
8such aircraft. "Consumable supplies" include, but are not
9limited to, adhesive, tape, sandpaper, general purpose
10lubricants, cleaning solution, latex gloves, and protective
11films. This exemption applies only to those organizations that
12(i) hold an Air Agency Certificate and are empowered to operate
13an approved repair station by the Federal Aviation
14Administration, (ii) have a Class IV Rating, and (iii) conduct
15operations in accordance with Part 145 of the Federal Aviation
16Regulations. The exemption does not include aircraft operated
17by a commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part 129
19of the Federal Aviation Regulations.
20    (36) Tangible personal property purchased by a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

HB0185- 17 -LRB097 02983 HLH 43009 b

1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt instruments
3issued by the public-facilities corporation in connection with
4the development of the municipal convention hall. This
5exemption includes existing public-facilities corporations as
6provided in Section 11-65-25 of the Illinois Municipal Code.
7This paragraph is exempt from the provisions of Section 3-90.
8    (37) For a period of 10 years, beginning on the effective
9date of this amendatory Act of the 97th General Assembly, new
10flexible fuel vehicles, as defined in Section 22 of the
11Alternate Fuels Act, new hybrid vehicles, and new electric
12vehicles. To qualify for an exemption under this item (37), the
13vehicle's final assembly point must be located within the
14State.
15(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
16eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1796-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
187-2-10.)
 
19    Section 10. The Service Use Tax Act is amended by changing
20Section 3-5 as follows:
 
21    (35 ILCS 110/3-5)
22    Sec. 3-5. Exemptions. Use of the following tangible
23personal property is exempt from the tax imposed by this Act:
24    (1) Personal property purchased from a corporation,

 

 

HB0185- 18 -LRB097 02983 HLH 43009 b

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

 

 

HB0185- 19 -LRB097 02983 HLH 43009 b

1United States of America, or the government of any foreign
2country, and bullion.
3    (5) Until July 1, 2003 and beginning again on September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new and
6used, and including that manufactured on special order or
7purchased for lease, certified by the purchaser to be used
8primarily for graphic arts production. Equipment includes
9chemicals or chemicals acting as catalysts but only if the
10chemicals or chemicals acting as catalysts effect a direct and
11immediate change upon a graphic arts product.
12    (6) Personal property purchased from a teacher-sponsored
13student organization affiliated with an elementary or
14secondary school located in Illinois.
15    (7) 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,
25but excluding other motor vehicles required to be registered
26under the Illinois Vehicle Code. Horticultural polyhouses or

 

 

HB0185- 20 -LRB097 02983 HLH 43009 b

1hoop houses used for propagating, growing, or overwintering
2plants shall be considered farm machinery and equipment under
3this item (7). Agricultural chemical tender tanks and dry boxes
4shall include units sold separately from a motor vehicle
5required to be licensed and units sold mounted on a motor
6vehicle required to be licensed if the selling price of the
7tender is separately stated.
8    Farm machinery and equipment shall include precision
9farming equipment that is installed or purchased to be
10installed on farm machinery and equipment including, but not
11limited to, tractors, harvesters, sprayers, planters, seeders,
12or spreaders. Precision farming equipment includes, but is not
13limited to, soil testing sensors, computers, monitors,
14software, global positioning and mapping systems, and other
15such equipment.
16    Farm machinery and equipment also includes computers,
17sensors, software, and related equipment used primarily in the
18computer-assisted operation of production agriculture
19facilities, equipment, and activities such as, but not limited
20to, the collection, monitoring, and correlation of animal and
21crop data for the purpose of formulating animal diets and
22agricultural chemicals. This item (7) is exempt from the
23provisions of Section 3-75.
24    (8) Fuel and petroleum products sold to or used by an air
25common carrier, certified by the carrier to be used for
26consumption, shipment, or storage in the conduct of its

 

 

HB0185- 21 -LRB097 02983 HLH 43009 b

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

 

 

HB0185- 22 -LRB097 02983 HLH 43009 b

1photoprocessing, and including photoprocessing machinery and
2equipment purchased for lease.
3    (12) Until July 1, 2003, coal exploration, mining,
4offhighway hauling, processing, maintenance, and reclamation
5equipment, including replacement parts and equipment, and
6including equipment purchased for lease, but excluding motor
7vehicles required to be registered under the Illinois Vehicle
8Code.
9    (13) Semen used for artificial insemination of livestock
10for direct agricultural production.
11    (14) Horses, or interests in horses, registered with and
12meeting the requirements of any of the Arabian Horse Club
13Registry of America, Appaloosa Horse Club, American Quarter
14Horse Association, United States Trotting Association, or
15Jockey Club, as appropriate, used for purposes of breeding or
16racing for prizes. This item (14) is exempt from the provisions
17of Section 3-75, and the exemption provided for under this item
18(14) applies for all periods beginning May 30, 1995, but no
19claim for credit or refund is allowed on or after the effective
20date of this amendatory Act of the 95th General Assembly for
21such taxes paid during the period beginning May 30, 2000 and
22ending on the effective date of this amendatory Act of the 95th
23General Assembly.
24    (15) Computers and communications equipment utilized for
25any hospital purpose and equipment used in the diagnosis,
26analysis, or treatment of hospital patients purchased by a

 

 

HB0185- 23 -LRB097 02983 HLH 43009 b

1lessor who leases the equipment, under a lease of one year or
2longer executed or in effect at the time the lessor would
3otherwise be subject to the tax imposed by this Act, to a
4hospital that has been issued an active tax exemption
5identification number by the Department under Section 1g of the
6Retailers' Occupation Tax Act. If the equipment is leased in a
7manner that does not qualify for this exemption or is used in
8any other non-exempt manner, the lessor shall be liable for the
9tax imposed under this Act or the Use Tax Act, as the case may
10be, based on the fair market value of the property at the time
11the non-qualifying use occurs. No lessor shall collect or
12attempt to collect an amount (however designated) that purports
13to reimburse that lessor for the tax imposed by this Act or the
14Use Tax Act, as the case may be, if the tax has not been paid by
15the lessor. If a lessor improperly collects any such amount
16from the lessee, the lessee shall have a legal right to claim a
17refund of that amount from the lessor. If, however, that amount
18is not refunded to the lessee for any reason, the lessor is
19liable to pay that amount to the Department.
20    (16) Personal property purchased by a lessor who leases the
21property, under a lease of one year or longer executed or in
22effect at the time the lessor would otherwise be subject to the
23tax imposed by this Act, to a governmental body that has been
24issued an active tax exemption identification number by the
25Department under Section 1g of the Retailers' Occupation Tax
26Act. If the property is leased in a manner that does not

 

 

HB0185- 24 -LRB097 02983 HLH 43009 b

1qualify for this exemption or is used in any other non-exempt
2manner, the lessor shall be liable for the tax imposed under
3this Act or the Use Tax Act, as the case may be, based on the
4fair market value of the property at the time the
5non-qualifying use occurs. No lessor shall collect or attempt
6to collect an amount (however designated) that purports to
7reimburse that lessor for the tax imposed by this Act or the
8Use Tax Act, as the case may be, if the tax has not been paid by
9the lessor. If a lessor improperly collects any such amount
10from the lessee, the lessee shall have a legal right to claim a
11refund of that amount from the lessor. If, however, that amount
12is not refunded to the lessee for any reason, the lessor is
13liable to pay that amount to the Department.
14    (17) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is donated for
17disaster relief to be used in a State or federally declared
18disaster area in Illinois or bordering Illinois by a
19manufacturer or retailer that is registered in this State to a
20corporation, society, association, foundation, or institution
21that has been issued a sales tax exemption identification
22number by the Department that assists victims of the disaster
23who reside within the declared disaster area.
24    (18) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is used in the

 

 

HB0185- 25 -LRB097 02983 HLH 43009 b

1performance of infrastructure repairs in this State, including
2but not limited to municipal roads and streets, access roads,
3bridges, sidewalks, waste disposal systems, water and sewer
4line extensions, water distribution and purification
5facilities, storm water drainage and retention facilities, and
6sewage treatment facilities, resulting from a State or
7federally declared disaster in Illinois or bordering Illinois
8when such repairs are initiated on facilities located in the
9declared disaster area within 6 months after the disaster.
10    (19) Beginning July 1, 1999, game or game birds purchased
11at a "game breeding and hunting preserve area" or an "exotic
12game hunting area" as those terms are used in the Wildlife Code
13or at a hunting enclosure approved through rules adopted by the
14Department of Natural Resources. This paragraph is exempt from
15the provisions of Section 3-75.
16    (20) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

HB0185- 26 -LRB097 02983 HLH 43009 b

1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (21) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-75.
22    (22) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

HB0185- 27 -LRB097 02983 HLH 43009 b

1for machines used in commercial, coin-operated amusement and
2vending business if a use or occupation tax is paid on the
3gross receipts derived from the use of the commercial,
4coin-operated amusement and vending machines. This paragraph
5is exempt from the provisions of Section 3-75.
6    (23) Beginning August 23, 2001 and through June 30, 2011,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages, soft
9drinks, and food that has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the MR/DD Community Care Act.
18    (24) Beginning on the effective date of this amendatory Act
19of the 92nd General Assembly, computers and communications
20equipment utilized for any hospital purpose and equipment used
21in the diagnosis, analysis, or treatment of hospital patients
22purchased by a lessor who leases the equipment, under a lease
23of one year or longer executed or in effect at the time the
24lessor would otherwise be subject to the tax imposed by this
25Act, to a hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of the

 

 

HB0185- 28 -LRB097 02983 HLH 43009 b

1Retailers' Occupation Tax Act. If the equipment is leased in a
2manner that does not qualify for this exemption or is used in
3any other nonexempt manner, the lessor shall be liable for the
4tax imposed under this Act or the Use Tax Act, as the case may
5be, based on the fair market value of the property at the time
6the nonqualifying use occurs. No lessor shall collect or
7attempt to collect an amount (however designated) that purports
8to reimburse that lessor for the tax imposed by this Act or the
9Use Tax Act, as the case may be, if the tax has not been paid by
10the lessor. If a lessor improperly collects any such amount
11from the lessee, the lessee shall have a legal right to claim a
12refund of that amount from the lessor. If, however, that amount
13is not refunded to the lessee for any reason, the lessor is
14liable to pay that amount to the Department. This paragraph is
15exempt from the provisions of Section 3-75.
16    (25) Beginning on the effective date of this amendatory Act
17of the 92nd General Assembly, personal property purchased by a
18lessor who leases the property, under a lease of one year or
19longer executed or in effect at the time the lessor would
20otherwise be subject to the tax imposed by this Act, to a
21governmental body that has been issued an active tax exemption
22identification number by the Department under Section 1g of the
23Retailers' Occupation Tax Act. If the property is leased in a
24manner that does not qualify for this exemption or is used in
25any other nonexempt manner, the lessor shall be liable for the
26tax imposed under this Act or the Use Tax Act, as the case may

 

 

HB0185- 29 -LRB097 02983 HLH 43009 b

1be, based on the fair market value of the property at the time
2the nonqualifying use occurs. No lessor shall collect or
3attempt to collect an amount (however designated) that purports
4to reimburse that lessor for the tax imposed by this Act or the
5Use Tax Act, as the case may be, if the tax has not been paid by
6the lessor. If a lessor improperly collects any such amount
7from the lessee, the lessee shall have a legal right to claim a
8refund of that amount from the lessor. If, however, that amount
9is not refunded to the lessee for any reason, the lessor is
10liable to pay that amount to the Department. This paragraph is
11exempt from the provisions of Section 3-75.
12    (26) Beginning January 1, 2008, tangible personal property
13used in the construction or maintenance of a community water
14supply, as defined under Section 3.145 of the Environmental
15Protection Act, that is operated by a not-for-profit
16corporation that holds a valid water supply permit issued under
17Title IV of the Environmental Protection Act. This paragraph is
18exempt from the provisions of Section 3-75.
19    (27) Beginning January 1, 2010, materials, parts,
20equipment, components, and furnishings incorporated into or
21upon an aircraft as part of the modification, refurbishment,
22completion, replacement, repair, or maintenance of the
23aircraft. This exemption includes consumable supplies used in
24the modification, refurbishment, completion, replacement,
25repair, and maintenance of aircraft, but excludes any
26materials, parts, equipment, components, and consumable

 

 

HB0185- 30 -LRB097 02983 HLH 43009 b

1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to those organizations that
8(i) hold an Air Agency Certificate and are empowered to operate
9an approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations. The exemption does not include aircraft operated
13by a commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part 129
15of the Federal Aviation Regulations.
16    (28) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

HB0185- 31 -LRB097 02983 HLH 43009 b

1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 3-75.
4    (29) For a period of 10 years, beginning on the effective
5date of this amendatory Act of the 97th General Assembly, new
6flexible fuel vehicles, as defined in Section 22 of the
7Alternate Fuels Act, new hybrid vehicles, and new electric
8vehicles. To qualify for an exemption under this item (29), the
9vehicle's final assembly point must be located within the
10State.
11(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
12eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1396-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
147-2-10.)
 
15    Section 15. The Service Occupation Tax Act is amended by
16changing Section 3-5 as follows:
 
17    (35 ILCS 115/3-5)
18    Sec. 3-5. Exemptions. The following tangible personal
19property is exempt from the tax imposed by this Act:
20    (1) Personal property sold by a corporation, society,
21association, foundation, institution, or organization, other
22than a limited liability company, that is organized and
23operated as a not-for-profit service enterprise for the benefit
24of persons 65 years of age or older if the personal property

 

 

HB0185- 32 -LRB097 02983 HLH 43009 b

1was not purchased by the enterprise for the purpose of resale
2by the enterprise.
3    (2) Personal property purchased by a not-for-profit
4Illinois county fair association for use in conducting,
5operating, or promoting the county fair.
6    (3) Personal property purchased by any not-for-profit arts
7or cultural organization that establishes, by proof required by
8the Department by rule, that it has received an exemption under
9Section 501(c)(3) of the Internal Revenue Code and that is
10organized and operated primarily for the presentation or
11support of arts or cultural programming, activities, or
12services. These organizations include, but are not limited to,
13music and dramatic arts organizations such as symphony
14orchestras and theatrical groups, arts and cultural service
15organizations, local arts councils, visual arts organizations,
16and media arts organizations. On and after the effective date
17of this amendatory Act of the 92nd General Assembly, however,
18an entity otherwise eligible for this exemption shall not make
19tax-free purchases unless it has an active identification
20number issued by the Department.
21    (4) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (5) Until July 1, 2003 and beginning again on September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

HB0185- 33 -LRB097 02983 HLH 43009 b

1equipment, including repair and replacement parts, both new and
2used, and including that manufactured on special order or
3purchased for lease, certified by the purchaser to be used
4primarily for graphic arts production. Equipment includes
5chemicals or chemicals acting as catalysts but only if the
6chemicals or chemicals acting as catalysts effect a direct and
7immediate change upon a graphic arts product.
8    (6) Personal property sold by a teacher-sponsored student
9organization affiliated with an elementary or secondary school
10located in Illinois.
11    (7) Farm machinery and equipment, both new and used,
12including that manufactured on special order, certified by the
13purchaser to be used primarily for production agriculture or
14State or federal agricultural programs, including individual
15replacement parts for the machinery and equipment, including
16machinery and equipment purchased for lease, and including
17implements of husbandry defined in Section 1-130 of the
18Illinois Vehicle Code, farm machinery and agricultural
19chemical and fertilizer spreaders, and nurse wagons required to
20be registered under Section 3-809 of the Illinois Vehicle Code,
21but excluding other motor vehicles required to be registered
22under the Illinois Vehicle Code. Horticultural polyhouses or
23hoop houses used for propagating, growing, or overwintering
24plants shall be considered farm machinery and equipment under
25this item (7). Agricultural chemical tender tanks and dry boxes
26shall include units sold separately from a motor vehicle

 

 

HB0185- 34 -LRB097 02983 HLH 43009 b

1required to be licensed and units sold mounted on a motor
2vehicle required to be licensed if the selling price of the
3tender is separately stated.
4    Farm machinery and equipment shall include precision
5farming equipment that is installed or purchased to be
6installed on farm machinery and equipment including, but not
7limited to, tractors, harvesters, sprayers, planters, seeders,
8or spreaders. Precision farming equipment includes, but is not
9limited to, soil testing sensors, computers, monitors,
10software, global positioning and mapping systems, and other
11such equipment.
12    Farm machinery and equipment also includes computers,
13sensors, software, and related equipment used primarily in the
14computer-assisted operation of production agriculture
15facilities, equipment, and activities such as, but not limited
16to, the collection, monitoring, and correlation of animal and
17crop data for the purpose of formulating animal diets and
18agricultural chemicals. This item (7) is exempt from the
19provisions of Section 3-55.
20    (8) Fuel and petroleum products sold to or used by an air
21common carrier, certified by the carrier to be used for
22consumption, shipment, or storage in the conduct of its
23business as an air common carrier, for a flight destined for or
24returning from a location or locations outside the United
25States without regard to previous or subsequent domestic
26stopovers.

 

 

HB0185- 35 -LRB097 02983 HLH 43009 b

1    (9) Proceeds of mandatory service charges separately
2stated on customers' bills for the purchase and consumption of
3food and beverages, to the extent that the proceeds of the
4service charge are in fact turned over as tips or as a
5substitute for tips to the employees who participate directly
6in preparing, serving, hosting or cleaning up the food or
7beverage function with respect to which the service charge is
8imposed.
9    (10) Until July 1, 2003, oil field exploration, drilling,
10and production equipment, including (i) rigs and parts of rigs,
11rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
12tubular goods, including casing and drill strings, (iii) pumps
13and pump-jack units, (iv) storage tanks and flow lines, (v) any
14individual replacement part for oil field exploration,
15drilling, and production equipment, and (vi) machinery and
16equipment purchased for lease; but excluding motor vehicles
17required to be registered under the Illinois Vehicle Code.
18    (11) Photoprocessing machinery and equipment, including
19repair and replacement parts, both new and used, including that
20manufactured on special order, certified by the purchaser to be
21used primarily for photoprocessing, and including
22photoprocessing machinery and equipment purchased for lease.
23    (12) Until July 1, 2003, coal exploration, mining,
24offhighway hauling, processing, maintenance, and reclamation
25equipment, including replacement parts and equipment, and
26including equipment purchased for lease, but excluding motor

 

 

HB0185- 36 -LRB097 02983 HLH 43009 b

1vehicles required to be registered under the Illinois Vehicle
2Code.
3    (13) Beginning January 1, 1992 and through June 30, 2011,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks and food that has been prepared for immediate
7consumption) and prescription and non-prescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the MR/DD Community Care Act.
15    (14) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (15) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (15) is exempt from the provisions
23of Section 3-55, and the exemption provided for under this item
24(15) applies for all periods beginning May 30, 1995, but no
25claim for credit or refund is allowed on or after January 1,
262008 (the effective date of Public Act 95-88) for such taxes

 

 

HB0185- 37 -LRB097 02983 HLH 43009 b

1paid during the period beginning May 30, 2000 and ending on
2January 1, 2008 (the effective date of Public Act 95-88).
3    (16) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients sold to a lessor
6who leases the equipment, under a lease of one year or longer
7executed or in effect at the time of the purchase, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act.
11    (17) Personal property sold to a lessor who leases the
12property, under a lease of one year or longer executed or in
13effect at the time of the purchase, to a governmental body that
14has been issued an active tax exemption identification number
15by the Department under Section 1g of the Retailers' Occupation
16Tax Act.
17    (18) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated for
20disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

 

 

HB0185- 38 -LRB097 02983 HLH 43009 b

1    (19) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (20) Beginning July 1, 1999, game or game birds sold at a
14"game breeding and hunting preserve area" or an "exotic game
15hunting area" as those terms are used in the Wildlife Code or
16at a hunting enclosure approved through rules adopted by the
17Department of Natural Resources. This paragraph is exempt from
18the provisions of Section 3-55.
19    (21) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the Department
23to be organized and operated exclusively for educational
24purposes. For purposes of this exemption, "a corporation,
25limited liability company, society, association, foundation,
26or institution organized and operated exclusively for

 

 

HB0185- 39 -LRB097 02983 HLH 43009 b

1educational purposes" means all tax-supported public schools,
2private schools that offer systematic instruction in useful
3branches of learning by methods common to public schools and
4that compare favorably in their scope and intensity with the
5course of study presented in tax-supported schools, and
6vocational or technical schools or institutes organized and
7operated exclusively to provide a course of study of not less
8than 6 weeks duration and designed to prepare individuals to
9follow a trade or to pursue a manual, technical, mechanical,
10industrial, business, or commercial occupation.
11    (22) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-55.
25    (23) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

 

 

HB0185- 40 -LRB097 02983 HLH 43009 b

1serve hot food and beverages, including coffee, soup, and other
2items, and replacement parts for these machines. Beginning
3January 1, 2002 and through June 30, 2003, machines and parts
4for machines used in commercial, coin-operated amusement and
5vending business if a use or occupation tax is paid on the
6gross receipts derived from the use of the commercial,
7coin-operated amusement and vending machines. This paragraph
8is exempt from the provisions of Section 3-55.
9    (24) Beginning on the effective date of this amendatory Act
10of the 92nd General Assembly, computers and communications
11equipment utilized for any hospital purpose and equipment used
12in the diagnosis, analysis, or treatment of hospital patients
13sold to a lessor who leases the equipment, under a lease of one
14year or longer executed or in effect at the time of the
15purchase, to a hospital that has been issued an active tax
16exemption identification number by the Department under
17Section 1g of the Retailers' Occupation Tax Act. This paragraph
18is exempt from the provisions of Section 3-55.
19    (25) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, personal property sold to a
21lessor who leases the property, under a lease of one year or
22longer executed or in effect at the time of the purchase, to a
23governmental body that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. This paragraph is exempt from
26the provisions of Section 3-55.

 

 

HB0185- 41 -LRB097 02983 HLH 43009 b

1    (26) Beginning on January 1, 2002 and through June 30,
22011, tangible personal property purchased from an Illinois
3retailer by a taxpayer engaged in centralized purchasing
4activities in Illinois who will, upon receipt of the property
5in Illinois, temporarily store the property in Illinois (i) for
6the purpose of subsequently transporting it outside this State
7for use or consumption thereafter solely outside this State or
8(ii) for the purpose of being processed, fabricated, or
9manufactured into, attached to, or incorporated into other
10tangible personal property to be transported outside this State
11and thereafter used or consumed solely outside this State. The
12Director of Revenue shall, pursuant to rules adopted in
13accordance with the Illinois Administrative Procedure Act,
14issue a permit to any taxpayer in good standing with the
15Department who is eligible for the exemption under this
16paragraph (26). The permit issued under this paragraph (26)
17shall authorize the holder, to the extent and in the manner
18specified in the rules adopted under this Act, to purchase
19tangible personal property from a retailer exempt from the
20taxes imposed by this Act. Taxpayers shall maintain all
21necessary books and records to substantiate the use and
22consumption of all such tangible personal property outside of
23the State of Illinois.
24    (27) 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

 

 

HB0185- 42 -LRB097 02983 HLH 43009 b

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 3-55.
5    (28) Tangible personal property sold to a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt instruments
14issued by the public-facilities corporation in connection with
15the development of the municipal convention hall. This
16exemption includes existing public-facilities corporations as
17provided in Section 11-65-25 of the Illinois Municipal Code.
18This paragraph is exempt from the provisions of Section 3-55.
19    (29) Beginning January 1, 2010, materials, parts,
20equipment, components, and furnishings incorporated into or
21upon an aircraft as part of the modification, refurbishment,
22completion, replacement, repair, or maintenance of the
23aircraft. This exemption includes consumable supplies used in
24the modification, refurbishment, completion, replacement,
25repair, and maintenance of aircraft, but excludes any
26materials, parts, equipment, components, and consumable

 

 

HB0185- 43 -LRB097 02983 HLH 43009 b

1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to those organizations that
8(i) hold an Air Agency Certificate and are empowered to operate
9an approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations. The exemption does not include aircraft operated
13by a commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part 129
15of the Federal Aviation Regulations.
16    (30) For a period of 10 years, beginning on the effective
17date of this amendatory Act of the 97th General Assembly, new
18flexible fuel vehicles, as defined in Section 22 of the
19Alternate Fuels Act, new hybrid vehicles, and new electric
20vehicles. To qualify for an exemption under this item (30), the
21vehicle's final assembly point must be located within the
22State.
23(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
24eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
2596-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
267-2-10.)
 

 

 

HB0185- 44 -LRB097 02983 HLH 43009 b

1    Section 20. The Retailers' Occupation Tax Act is amended by
2changing Section 2-5 as follows:
 
3    (35 ILCS 120/2-5)
4    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
5sale of the following tangible personal property are exempt
6from the tax imposed by this Act:
7    (1) Farm chemicals.
8    (2) Farm machinery and equipment, both new and used,
9including that manufactured on special order, certified by the
10purchaser to be used primarily for production agriculture or
11State or federal agricultural programs, including individual
12replacement parts for the machinery and equipment, including
13machinery and equipment purchased for lease, and including
14implements of husbandry defined in Section 1-130 of the
15Illinois Vehicle Code, farm machinery and agricultural
16chemical and fertilizer spreaders, and nurse wagons required to
17be registered under Section 3-809 of the Illinois Vehicle Code,
18but excluding other motor vehicles required to be registered
19under the Illinois Vehicle Code. Horticultural polyhouses or
20hoop houses used for propagating, growing, or overwintering
21plants shall be considered farm machinery and equipment under
22this item (2). Agricultural chemical tender tanks and dry boxes
23shall include units sold separately from a motor vehicle
24required to be licensed and units sold mounted on a motor

 

 

HB0185- 45 -LRB097 02983 HLH 43009 b

1vehicle required to be licensed, if the selling price of the
2tender is separately stated.
3    Farm machinery and equipment shall include precision
4farming equipment that is installed or purchased to be
5installed on farm machinery and equipment including, but not
6limited to, tractors, harvesters, sprayers, planters, seeders,
7or spreaders. Precision farming equipment includes, but is not
8limited to, soil testing sensors, computers, monitors,
9software, global positioning and mapping systems, and other
10such equipment.
11    Farm machinery and equipment also includes computers,
12sensors, software, and related equipment used primarily in the
13computer-assisted operation of production agriculture
14facilities, equipment, and activities such as, but not limited
15to, the collection, monitoring, and correlation of animal and
16crop data for the purpose of formulating animal diets and
17agricultural chemicals. This item (7) is exempt from the
18provisions of Section 2-70.
19    (3) Until July 1, 2003, distillation machinery and
20equipment, sold as a unit or kit, assembled or installed by the
21retailer, certified by the user to be used only for the
22production of ethyl alcohol that will be used for consumption
23as motor fuel or as a component of motor fuel for the personal
24use of the user, and not subject to sale or resale.
25    (4) Until July 1, 2003 and beginning again September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

HB0185- 46 -LRB097 02983 HLH 43009 b

1equipment, including repair and replacement parts, both new and
2used, and including that manufactured on special order or
3purchased for lease, certified by the purchaser to be used
4primarily for graphic arts production. Equipment includes
5chemicals or chemicals acting as catalysts but only if the
6chemicals or chemicals acting as catalysts effect a direct and
7immediate change upon a graphic arts product.
8    (5) A motor vehicle of the first division, a motor vehicle
9of the second division that is a self contained motor vehicle
10designed or permanently converted to provide living quarters
11for recreational, camping, or travel use, with direct walk
12through access to the living quarters from the driver's seat,
13or a motor vehicle of the second division that is of the van
14configuration designed for the transportation of not less than
157 nor more than 16 passengers, as defined in Section 1-146 of
16the Illinois Vehicle Code, that is used for automobile renting,
17as defined in the Automobile Renting Occupation and Use Tax
18Act. This paragraph is exempt from the provisions of Section
192-70.
20    (6) Personal property sold by a teacher-sponsored student
21organization affiliated with an elementary or secondary school
22located in Illinois.
23    (7) Until July 1, 2003, proceeds of that portion of the
24selling price of a passenger car the sale of which is subject
25to the Replacement Vehicle Tax.
26    (8) Personal property sold to an Illinois county fair

 

 

HB0185- 47 -LRB097 02983 HLH 43009 b

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

 

 

HB0185- 48 -LRB097 02983 HLH 43009 b

1organized and operated exclusively for charitable, religious,
2or educational purposes, or to a not-for-profit corporation,
3society, association, foundation, institution, or organization
4that has no compensated officers or employees and that is
5organized and operated primarily for the recreation of persons
655 years of age or older. A limited liability company may
7qualify for the exemption under this paragraph only if the
8limited liability company is organized and operated
9exclusively for educational purposes. On and after July 1,
101987, however, no entity otherwise eligible for this exemption
11shall make tax-free purchases unless it has an active
12identification number issued by the Department.
13    (12) Tangible personal property sold to interstate
14carriers for hire for use as rolling stock moving in interstate
15commerce or to lessors under leases of one year or longer
16executed or in effect at the time of purchase by interstate
17carriers for hire for use as rolling stock moving in interstate
18commerce and equipment operated by a telecommunications
19provider, licensed as a common carrier by the Federal
20Communications Commission, which is permanently installed in
21or affixed to aircraft moving in interstate commerce.
22    (12-5) On and after July 1, 2003 and through June 30, 2004,
23motor vehicles of the second division with a gross vehicle
24weight in excess of 8,000 pounds that are subject to the
25commercial distribution fee imposed under Section 3-815.1 of
26the Illinois Vehicle Code. Beginning on July 1, 2004 and

 

 

HB0185- 49 -LRB097 02983 HLH 43009 b

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

 

 

HB0185- 50 -LRB097 02983 HLH 43009 b

1owned by the manufacturer or some other person, or whether the
2sale or lease is made apart from or as an incident to the
3seller's engaging in the service occupation of producing
4machines, tools, dies, jigs, patterns, gauges, or other similar
5items of no commercial value on special order for a particular
6purchaser.
7    (15) Proceeds of mandatory service charges separately
8stated on customers' bills for purchase and consumption of food
9and beverages, to the extent that the proceeds of the service
10charge are in fact turned over as tips or as a substitute for
11tips to the employees who participate directly in preparing,
12serving, hosting or cleaning up the food or beverage function
13with respect to which the service charge is imposed.
14    (16) Petroleum products sold to a purchaser if the seller
15is prohibited by federal law from charging tax to the
16purchaser.
17    (17) Tangible personal property sold to a common carrier by
18rail or motor that receives the physical possession of the
19property in Illinois and that transports the property, or
20shares with another common carrier in the transportation of the
21property, out of Illinois on a standard uniform bill of lading
22showing the seller of the property as the shipper or consignor
23of the property to a destination outside Illinois, for use
24outside Illinois.
25    (18) Legal tender, currency, medallions, or gold or silver
26coinage issued by the State of Illinois, the government of the

 

 

HB0185- 51 -LRB097 02983 HLH 43009 b

1United States of America, or the government of any foreign
2country, and bullion.
3    (19) Until July 1 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (20) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (21) Until July 1, 2003, coal exploration, mining,
18offhighway hauling, processing, maintenance, and reclamation
19equipment, including replacement parts and equipment, and
20including equipment purchased for lease, but excluding motor
21vehicles required to be registered under the Illinois Vehicle
22Code.
23    (22) Fuel and petroleum products sold to or used by an air
24carrier, certified by the carrier to be used for consumption,
25shipment, or storage in the conduct of its business as an air
26common carrier, for a flight destined for or returning from a

 

 

HB0185- 52 -LRB097 02983 HLH 43009 b

1location or locations outside the United States without regard
2to previous or subsequent domestic stopovers.
3    (23) A transaction in which the purchase order is received
4by a florist who is located outside Illinois, but who has a
5florist located in Illinois deliver the property to the
6purchaser or the purchaser's donee in Illinois.
7    (24) Fuel consumed or used in the operation of ships,
8barges, or vessels that are used primarily in or for the
9transportation of property or the conveyance of persons for
10hire on rivers bordering on this State if the fuel is delivered
11by the seller to the purchaser's barge, ship, or vessel while
12it is afloat upon that bordering river.
13    (25) Except as provided in item (25-5) of this Section, a
14motor vehicle sold in this State to a nonresident even though
15the motor vehicle is delivered to the nonresident in this
16State, if the motor vehicle is not to be titled in this State,
17and if a drive-away permit is issued to the motor vehicle as
18provided in Section 3-603 of the Illinois Vehicle Code or if
19the nonresident purchaser has vehicle registration plates to
20transfer to the motor vehicle upon returning to his or her home
21state. The issuance of the drive-away permit or having the
22out-of-state registration plates to be transferred is prima
23facie evidence that the motor vehicle will not be titled in
24this State.
25    (25-5) The exemption under item (25) does not apply if the
26state in which the motor vehicle will be titled does not allow

 

 

HB0185- 53 -LRB097 02983 HLH 43009 b

1a reciprocal exemption for a motor vehicle sold and delivered
2in that state to an Illinois resident but titled in Illinois.
3The tax collected under this Act on the sale of a motor vehicle
4in this State to a resident of another state that does not
5allow a reciprocal exemption shall be imposed at a rate equal
6to the state's rate of tax on taxable property in the state in
7which the purchaser is a resident, except that the tax shall
8not exceed the tax that would otherwise be imposed under this
9Act. At the time of the sale, the purchaser shall execute a
10statement, signed under penalty of perjury, of his or her
11intent to title the vehicle in the state in which the purchaser
12is a resident within 30 days after the sale and of the fact of
13the payment to the State of Illinois of tax in an amount
14equivalent to the state's rate of tax on taxable property in
15his or her state of residence and shall submit the statement to
16the appropriate tax collection agency in his or her state of
17residence. In addition, the retailer must retain a signed copy
18of the statement in his or her records. Nothing in this item
19shall be construed to require the removal of the vehicle from
20this state following the filing of an intent to title the
21vehicle in the purchaser's state of residence if the purchaser
22titles the vehicle in his or her state of residence within 30
23days after the date of sale. The tax collected under this Act
24in accordance with this item (25-5) shall be proportionately
25distributed as if the tax were collected at the 6.25% general
26rate imposed under this Act.

 

 

HB0185- 54 -LRB097 02983 HLH 43009 b

1    (25-7) Beginning on July 1, 2007, no tax is imposed under
2this Act on the sale of an aircraft, as defined in Section 3 of
3the Illinois Aeronautics Act, if all of the following
4conditions are met:
5        (1) the aircraft leaves this State within 15 days after
6    the later of either the issuance of the final billing for
7    the sale of the aircraft, or the authorized approval for
8    return to service, completion of the maintenance record
9    entry, and completion of the test flight and ground test
10    for inspection, as required by 14 C.F.R. 91.407;
11        (2) the aircraft is not based or registered in this
12    State after the sale of the aircraft; and
13        (3) the seller retains in his or her books and records
14    and provides to the Department a signed and dated
15    certification from the purchaser, on a form prescribed by
16    the Department, certifying that the requirements of this
17    item (25-7) are met. The certificate must also include the
18    name and address of the purchaser, the address of the
19    location where the aircraft is to be titled or registered,
20    the address of the primary physical location of the
21    aircraft, and other information that the Department may
22    reasonably require.
23    For purposes of this item (25-7):
24    "Based in this State" means hangared, stored, or otherwise
25used, excluding post-sale customizations as defined in this
26Section, for 10 or more days in each 12-month period

 

 

HB0185- 55 -LRB097 02983 HLH 43009 b

1immediately following the date of the sale of the aircraft.
2    "Registered in this State" means an aircraft registered
3with the Department of Transportation, Aeronautics Division,
4or titled or registered with the Federal Aviation
5Administration to an address located in this State.
6    This paragraph (25-7) is exempt from the provisions of
7Section 2-70.
8    (26) Semen used for artificial insemination of livestock
9for direct agricultural production.
10    (27) Horses, or interests in horses, registered with and
11meeting the requirements of any of the Arabian Horse Club
12Registry of America, Appaloosa Horse Club, American Quarter
13Horse Association, United States Trotting Association, or
14Jockey Club, as appropriate, used for purposes of breeding or
15racing for prizes. This item (27) is exempt from the provisions
16of Section 2-70, and the exemption provided for under this item
17(27) applies for all periods beginning May 30, 1995, but no
18claim for credit or refund is allowed on or after January 1,
192008 (the effective date of Public Act 95-88) for such taxes
20paid during the period beginning May 30, 2000 and ending on
21January 1, 2008 (the effective date of Public Act 95-88).
22    (28) Computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients sold to a lessor
25who leases the equipment, under a lease of one year or longer
26executed or in effect at the time of the purchase, to a

 

 

HB0185- 56 -LRB097 02983 HLH 43009 b

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

 

 

HB0185- 57 -LRB097 02983 HLH 43009 b

1sewage treatment facilities, resulting from a State or
2federally declared disaster in Illinois or bordering Illinois
3when such repairs are initiated on facilities located in the
4declared disaster area within 6 months after the disaster.
5    (32) Beginning July 1, 1999, game or game birds sold at a
6"game breeding and hunting preserve area" or an "exotic game
7hunting area" as those terms are used in the Wildlife Code or
8at a hunting enclosure approved through rules adopted by the
9Department of Natural Resources. This paragraph is exempt from
10the provisions of Section 2-70.
11    (33) A motor vehicle, as that term is defined in Section
121-146 of the Illinois Vehicle Code, that is donated to a
13corporation, limited liability company, society, association,
14foundation, or institution that is determined by the Department
15to be organized and operated exclusively for educational
16purposes. For purposes of this exemption, "a corporation,
17limited liability company, society, association, foundation,
18or institution organized and operated exclusively for
19educational purposes" means all tax-supported public schools,
20private schools that offer systematic instruction in useful
21branches of learning by methods common to public schools and
22that compare favorably in their scope and intensity with the
23course of study presented in tax-supported schools, and
24vocational or technical schools or institutes organized and
25operated exclusively to provide a course of study of not less
26than 6 weeks duration and designed to prepare individuals to

 

 

HB0185- 58 -LRB097 02983 HLH 43009 b

1follow a trade or to pursue a manual, technical, mechanical,
2industrial, business, or commercial occupation.
3    (34) Beginning January 1, 2000, personal property,
4including food, purchased through fundraising events for the
5benefit of a public or private elementary or secondary school,
6a group of those schools, or one or more school districts if
7the events are sponsored by an entity recognized by the school
8district that consists primarily of volunteers and includes
9parents and teachers of the school children. This paragraph
10does not apply to fundraising events (i) for the benefit of
11private home instruction or (ii) for which the fundraising
12entity purchases the personal property sold at the events from
13another individual or entity that sold the property for the
14purpose of resale by the fundraising entity and that profits
15from the sale to the fundraising entity. This paragraph is
16exempt from the provisions of Section 2-70.
17    (35) Beginning January 1, 2000 and through December 31,
182001, new or used automatic vending machines that prepare and
19serve hot food and beverages, including coffee, soup, and other
20items, and replacement parts for these machines. Beginning
21January 1, 2002 and through June 30, 2003, machines and parts
22for machines used in commercial, coin-operated amusement and
23vending business if a use or occupation tax is paid on the
24gross receipts derived from the use of the commercial,
25coin-operated amusement and vending machines. This paragraph
26is exempt from the provisions of Section 2-70.

 

 

HB0185- 59 -LRB097 02983 HLH 43009 b

1    (35-5) Beginning August 23, 2001 and through June 30, 2011,
2food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages, soft
4drinks, and food that has been prepared for immediate
5consumption) and prescription and nonprescription medicines,
6drugs, medical appliances, and insulin, urine testing
7materials, syringes, and needles used by diabetics, for human
8use, when purchased for use by a person receiving medical
9assistance under Article V of the Illinois Public Aid Code who
10resides in a licensed long-term care facility, as defined in
11the Nursing Home Care Act, or a licensed facility as defined in
12the MR/DD Community Care Act.
13    (36) Beginning August 2, 2001, computers and
14communications equipment utilized for any hospital purpose and
15equipment used in the diagnosis, analysis, or treatment of
16hospital patients sold to a lessor who leases the equipment,
17under a lease of one year or longer executed or in effect at
18the time of the purchase, to a hospital that has been issued an
19active tax exemption identification number by the Department
20under Section 1g of this Act. This paragraph is exempt from the
21provisions of Section 2-70.
22    (37) Beginning August 2, 2001, personal property sold to a
23lessor who leases the property, under a lease of one year or
24longer executed or in effect at the time of the purchase, to a
25governmental body that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

HB0185- 60 -LRB097 02983 HLH 43009 b

1this Act. This paragraph is exempt from the provisions of
2Section 2-70.
3    (38) Beginning on January 1, 2002 and through June 30,
42011, tangible personal property purchased from an Illinois
5retailer by a taxpayer engaged in centralized purchasing
6activities in Illinois who will, upon receipt of the property
7in Illinois, temporarily store the property in Illinois (i) for
8the purpose of subsequently transporting it outside this State
9for use or consumption thereafter solely outside this State or
10(ii) for the purpose of being processed, fabricated, or
11manufactured into, attached to, or incorporated into other
12tangible personal property to be transported outside this State
13and thereafter used or consumed solely outside this State. The
14Director of Revenue shall, pursuant to rules adopted in
15accordance with the Illinois Administrative Procedure Act,
16issue a permit to any taxpayer in good standing with the
17Department who is eligible for the exemption under this
18paragraph (38). The permit issued under this paragraph (38)
19shall authorize the holder, to the extent and in the manner
20specified in the rules adopted under this Act, to purchase
21tangible personal property from a retailer exempt from the
22taxes imposed by this Act. Taxpayers shall maintain all
23necessary books and records to substantiate the use and
24consumption of all such tangible personal property outside of
25the State of Illinois.
26    (39) Beginning January 1, 2008, tangible personal property

 

 

HB0185- 61 -LRB097 02983 HLH 43009 b

1used in the construction or maintenance of a community water
2supply, as defined under Section 3.145 of the Environmental
3Protection Act, that is operated by a not-for-profit
4corporation that holds a valid water supply permit issued under
5Title IV of the Environmental Protection Act. This paragraph is
6exempt from the provisions of Section 2-70.
7    (40) Beginning January 1, 2010, materials, parts,
8equipment, components, and furnishings incorporated into or
9upon an aircraft as part of the modification, refurbishment,
10completion, replacement, repair, or maintenance of the
11aircraft. This exemption includes consumable supplies used in
12the modification, refurbishment, completion, replacement,
13repair, and maintenance of aircraft, but excludes any
14materials, parts, equipment, components, and consumable
15supplies used in the modification, replacement, repair, and
16maintenance of aircraft engines or power plants, whether such
17engines or power plants are installed or uninstalled upon any
18such aircraft. "Consumable supplies" include, but are not
19limited to, adhesive, tape, sandpaper, general purpose
20lubricants, cleaning solution, latex gloves, and protective
21films. This exemption applies only to those organizations that
22(i) hold an Air Agency Certificate and are empowered to operate
23an approved repair station by the Federal Aviation
24Administration, (ii) have a Class IV Rating, and (iii) conduct
25operations in accordance with Part 145 of the Federal Aviation
26Regulations. The exemption does not include aircraft operated

 

 

HB0185- 62 -LRB097 02983 HLH 43009 b

1by a commercial air carrier providing scheduled passenger air
2service pursuant to authority issued under Part 121 or Part 129
3of the Federal Aviation Regulations.
4    (41) Tangible personal property sold to a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt instruments
13issued by the public-facilities corporation in connection with
14the development of the municipal convention hall. This
15exemption includes existing public-facilities corporations as
16provided in Section 11-65-25 of the Illinois Municipal Code.
17This paragraph is exempt from the provisions of Section 2-70.
18    (42) For a period of 10 years, beginning on the effective
19date of this amendatory Act of the 97th General Assembly, new
20flexible fuel vehicles, as defined in Section 22 of the
21Alternate Fuels Act, new hybrid vehicles, and new electric
22vehicles. To qualify for an exemption under this item (42), the
23vehicle's final assembly point must be located within the
24State.
25(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
26eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;

 

 

HB0185- 63 -LRB097 02983 HLH 43009 b

195-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
27-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
3eff. 7-2-10.)
 
4    Section 99. Effective date. This Act takes effect July 1,
52011.