97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0300

 

Introduced 01/28/11, by Rep. Dan Reitz

 

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, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act to provide that until July 1, 2003, and beginning again on the effective date of the amendatory Act and thereafter, coal and aggregate exploration (instead of only coal exploration), mining, offhighway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code are (i) exempt from specified taxes and (ii) not subject to the uniform sunset provision. Effective immediately.


LRB097 02871 HLH 42895 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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,

 

 

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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, and beginning again on the
18effective date of this amendatory Act of the 97th General
19Assembly and thereafter, coal and aggregate exploration,
20mining, offhighway hauling, processing, maintenance, and
21reclamation equipment, including replacement parts and
22equipment, and including equipment purchased for lease, but
23excluding motor vehicles required to be registered under the
24Illinois Vehicle Code. This item (16) is not subject to the
25provisions of Section 3-90.
26    (17) Until July 1, 2003, distillation machinery and

 

 

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

 

 

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1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (21) is exempt from the provisions
4of Section 3-90, and the exemption provided for under this item
5(21) applies for all periods beginning May 30, 1995, but no
6claim for credit or refund is allowed on or after January 1,
72008 for such taxes paid during the period beginning May 30,
82000 and ending on January 1, 2008.
9    (22) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients purchased by a
12lessor who leases the equipment, under a lease of one year or
13longer executed or in effect at the time the lessor would
14otherwise be subject to the tax imposed by this Act, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. If the equipment is leased in a
18manner that does not qualify for this exemption or is used in
19any other non-exempt manner, the lessor shall be liable for the
20tax imposed under this Act or the Service Use Tax Act, as the
21case may be, based on the fair market value of the property at
22the time the non-qualifying use occurs. No lessor shall collect
23or attempt to collect an amount (however designated) that
24purports to reimburse that lessor for the tax imposed by this
25Act or the Service Use Tax Act, as the case may be, if the tax
26has not been paid by the lessor. If a lessor improperly

 

 

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

 

 

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

 

 

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1the provisions of Section 3-90.
2    (27) A motor vehicle, as that term is defined in Section
31-146 of the Illinois Vehicle Code, that is donated to a
4corporation, limited liability company, society, association,
5foundation, or institution that is determined by the Department
6to be organized and operated exclusively for educational
7purposes. For purposes of this exemption, "a corporation,
8limited liability company, society, association, foundation,
9or institution organized and operated exclusively for
10educational purposes" means all tax-supported public schools,
11private schools that offer systematic instruction in useful
12branches of learning by methods common to public schools and
13that compare favorably in their scope and intensity with the
14course of study presented in tax-supported schools, and
15vocational or technical schools or institutes organized and
16operated exclusively to provide a course of study of not less
17than 6 weeks duration and designed to prepare individuals to
18follow a trade or to pursue a manual, technical, mechanical,
19industrial, business, or commercial occupation.
20    (28) Beginning January 1, 2000, personal property,
21including food, purchased through fundraising events for the
22benefit of a public or private elementary or secondary school,
23a group of those schools, or one or more school districts if
24the events are sponsored by an entity recognized by the school
25district that consists primarily of volunteers and includes
26parents and teachers of the school children. This paragraph

 

 

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1does not apply to fundraising events (i) for the benefit of
2private home instruction or (ii) for which the fundraising
3entity purchases the personal property sold at the events from
4another individual or entity that sold the property for the
5purpose of resale by the fundraising entity and that profits
6from the sale to the fundraising entity. This paragraph is
7exempt from the provisions of Section 3-90.
8    (29) Beginning January 1, 2000 and through December 31,
92001, new or used automatic vending machines that prepare and
10serve hot food and beverages, including coffee, soup, and other
11items, and replacement parts for these machines. Beginning
12January 1, 2002 and through June 30, 2003, machines and parts
13for machines used in commercial, coin-operated amusement and
14vending business if a use or occupation tax is paid on the
15gross receipts derived from the use of the commercial,
16coin-operated amusement and vending machines. This paragraph
17is exempt from the provisions of Section 3-90.
18    (30) Beginning January 1, 2001 and through June 30, 2011,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages, soft
21drinks, and food that has been prepared for immediate
22consumption) and prescription and nonprescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

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

 

 

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

 

 

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1the use in this State of motor vehicles of the second division
2with a gross vehicle weight in excess of 8,000 pounds and that
3are subject to the commercial distribution fee imposed under
4Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
51, 2004 and through June 30, 2005, the use in this State of
6motor vehicles of the second division: (i) with a gross vehicle
7weight rating in excess of 8,000 pounds; (ii) that are subject
8to the commercial distribution fee imposed under Section
93-815.1 of the Illinois Vehicle Code; and (iii) that are
10primarily used for commercial purposes. Through June 30, 2005,
11this exemption applies to repair and replacement parts added
12after the initial purchase of such a motor vehicle if that
13motor vehicle is used in a manner that would qualify for the
14rolling stock exemption otherwise provided for in this Act. For
15purposes of this paragraph, the term "used for commercial
16purposes" means the transportation of persons or property in
17furtherance of any commercial or industrial enterprise,
18whether for-hire or not.
19    (34) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued under
24Title IV of the Environmental Protection Act. This paragraph is
25exempt from the provisions of Section 3-90.
26    (35) Beginning January 1, 2010, materials, parts,

 

 

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1equipment, components, and furnishings incorporated into or
2upon an aircraft as part of the modification, refurbishment,
3completion, replacement, repair, or maintenance of the
4aircraft. This exemption includes consumable supplies used in
5the modification, refurbishment, completion, replacement,
6repair, and maintenance of aircraft, but excludes any
7materials, parts, equipment, components, and consumable
8supplies used in the modification, replacement, repair, and
9maintenance of aircraft engines or power plants, whether such
10engines or power plants are installed or uninstalled upon any
11such aircraft. "Consumable supplies" include, but are not
12limited to, adhesive, tape, sandpaper, general purpose
13lubricants, cleaning solution, latex gloves, and protective
14films. This exemption applies only to those organizations that
15(i) hold an Air Agency Certificate and are empowered to operate
16an approved repair station by the Federal Aviation
17Administration, (ii) have a Class IV Rating, and (iii) conduct
18operations in accordance with Part 145 of the Federal Aviation
19Regulations. The exemption does not include aircraft operated
20by a commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations.
23    (36) Tangible personal property purchased by a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 3-90.
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 10. The Service Use Tax Act is amended by changing
16Section 3-5 as follows:
 
17    (35 ILCS 110/3-5)
18    Sec. 3-5. Exemptions. Use of the following tangible
19personal property is exempt from the tax imposed by this Act:
20    (1) Personal property purchased from a corporation,
21society, association, foundation, institution, or
22organization, other than a limited liability company, that is
23organized and operated as a not-for-profit service enterprise
24for the benefit of persons 65 years of age or older if the

 

 

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1personal property was not purchased by the enterprise for the
2purpose of resale by the enterprise.
3    (2) Personal property purchased by a non-profit Illinois
4county fair association for use in conducting, operating, or
5promoting the county fair.
6    (3) Personal property purchased by a not-for-profit arts or
7cultural 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

 

 

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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 purchased from a teacher-sponsored
9student organization affiliated with an elementary or
10secondary school located 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

 

 

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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 3-75.
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.

 

 

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1    (9) Proceeds of mandatory service charges separately
2stated on customers' bills for the purchase and consumption of
3food and beverages acquired as an incident to the purchase of a
4service from a serviceman, to the extent that the proceeds of
5the service charge are in fact turned over as tips or as a
6substitute for tips to the employees who participate directly
7in preparing, serving, hosting or cleaning up the food or
8beverage function with respect to which the service charge is
9imposed.
10    (10) Until July 1, 2003, oil field exploration, drilling,
11and production equipment, including (i) rigs and parts of rigs,
12rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
13tubular goods, including casing and drill strings, (iii) pumps
14and pump-jack units, (iv) storage tanks and flow lines, (v) any
15individual replacement part for oil field exploration,
16drilling, and production equipment, and (vi) machinery and
17equipment purchased for lease; but excluding motor vehicles
18required to be registered under the Illinois Vehicle Code.
19    (11) Proceeds from the sale of photoprocessing machinery
20and equipment, including repair and replacement parts, both new
21and used, including that manufactured on special order,
22certified by the purchaser to be used primarily for
23photoprocessing, and including photoprocessing machinery and
24equipment purchased for lease.
25    (12) Until July 1, 2003, and beginning again on the
26effective date of this amendatory Act of the 97th General

 

 

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1Assembly and thereafter, coal and aggregate exploration,
2mining, offhighway hauling, processing, maintenance, and
3reclamation equipment, including replacement parts and
4equipment, and including equipment purchased for lease, but
5excluding motor vehicles required to be registered under the
6Illinois Vehicle Code. This item (12) is not subject to the
7provisions of Section 3-75.
8    (13) Semen used for artificial insemination of livestock
9for direct agricultural production.
10    (14) 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 (14) is exempt from the provisions
16of Section 3-75, and the exemption provided for under this item
17(14) applies for all periods beginning May 30, 1995, but no
18claim for credit or refund is allowed on or after the effective
19date of this amendatory Act of the 95th General Assembly for
20such taxes paid during the period beginning May 30, 2000 and
21ending on the effective date of this amendatory Act of the 95th
22General Assembly.
23    (15) Computers and communications equipment utilized for
24any hospital purpose and equipment used in the diagnosis,
25analysis, or treatment of hospital patients purchased by a
26lessor who leases the equipment, under a lease of one year or

 

 

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

 

 

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

 

 

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1but not limited to municipal roads and streets, access roads,
2bridges, sidewalks, waste disposal systems, water and sewer
3line extensions, water distribution and purification
4facilities, storm water drainage and retention facilities, and
5sewage treatment facilities, resulting from a State or
6federally declared disaster in Illinois or bordering Illinois
7when such repairs are initiated on facilities located in the
8declared disaster area within 6 months after the disaster.
9    (19) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" or an "exotic
11game hunting area" as those terms are used in the Wildlife Code
12or at a hunting enclosure approved through rules adopted by the
13Department of Natural Resources. This paragraph is exempt from
14the provisions of Section 3-75.
15    (20) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the Department
19to be organized and operated exclusively for educational
20purposes. For purposes of this exemption, "a corporation,
21limited liability company, society, association, foundation,
22or institution organized and operated exclusively for
23educational purposes" means all tax-supported public schools,
24private schools that offer systematic instruction in useful
25branches of learning by methods common to public schools and
26that compare favorably in their scope and intensity with the

 

 

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1course of study presented in tax-supported schools, and
2vocational or technical schools or institutes organized and
3operated exclusively to provide a course of study of not less
4than 6 weeks duration and designed to prepare individuals to
5follow a trade or to pursue a manual, technical, mechanical,
6industrial, business, or commercial occupation.
7    (21) Beginning January 1, 2000, personal property,
8including food, purchased through fundraising events for the
9benefit of a public or private elementary or secondary school,
10a group of those schools, or one or more school districts if
11the events are sponsored by an entity recognized by the school
12district that consists primarily of volunteers and includes
13parents and teachers of the school children. This paragraph
14does not apply to fundraising events (i) for the benefit of
15private home instruction or (ii) for which the fundraising
16entity purchases the personal property sold at the events from
17another individual or entity that sold the property for the
18purpose of resale by the fundraising entity and that profits
19from the sale to the fundraising entity. This paragraph is
20exempt from the provisions of Section 3-75.
21    (22) Beginning January 1, 2000 and through December 31,
222001, new or used automatic vending machines that prepare and
23serve hot food and beverages, including coffee, soup, and other
24items, and replacement parts for these machines. Beginning
25January 1, 2002 and through June 30, 2003, machines and parts
26for machines used in commercial, coin-operated amusement and

 

 

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

 

 

HB0300- 28 -LRB097 02871 HLH 42895 b

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

 

 

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

 

 

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1maintenance of aircraft engines or power plants, whether such
2engines or power plants are installed or uninstalled upon any
3such aircraft. "Consumable supplies" include, but are not
4limited to, adhesive, tape, sandpaper, general purpose
5lubricants, cleaning solution, latex gloves, and protective
6films. This exemption applies only to those organizations that
7(i) hold an Air Agency Certificate and are empowered to operate
8an approved repair station by the Federal Aviation
9Administration, (ii) have a Class IV Rating, and (iii) conduct
10operations in accordance with Part 145 of the Federal Aviation
11Regulations. The exemption does not include aircraft operated
12by a commercial air carrier providing scheduled passenger air
13service pursuant to authority issued under Part 121 or Part 129
14of the Federal Aviation Regulations.
15    (28) Tangible personal property purchased by a
16public-facilities corporation, as described in Section
1711-65-10 of the Illinois Municipal Code, for purposes of
18constructing or furnishing a municipal convention hall, but
19only if the legal title to the municipal convention hall is
20transferred to the municipality without any further
21consideration by or on behalf of the municipality at the time
22of the completion of the municipal convention hall or upon the
23retirement or redemption of any bonds or other debt instruments
24issued by the public-facilities corporation in connection with
25the development of the municipal convention hall. This
26exemption includes existing public-facilities corporations as

 

 

HB0300- 31 -LRB097 02871 HLH 42895 b

1provided in Section 11-65-25 of the Illinois Municipal Code.
2This paragraph is exempt from the provisions of Section 3-75.
3(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
4eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
596-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
67-2-10.)
 
7    Section 15. The Service Occupation Tax Act is amended by
8changing Section 3-5 as follows:
 
9    (35 ILCS 115/3-5)
10    Sec. 3-5. Exemptions. The following tangible personal
11property is exempt from the tax imposed by this Act:
12    (1) Personal property sold by a corporation, society,
13association, foundation, institution, or organization, other
14than a limited liability company, that is organized and
15operated as a not-for-profit service enterprise for the benefit
16of persons 65 years of age or older if the personal property
17was not purchased by the enterprise for the purpose of resale
18by the enterprise.
19    (2) Personal property purchased by a not-for-profit
20Illinois county fair association for use in conducting,
21operating, or promoting the county fair.
22    (3) Personal property purchased by any not-for-profit arts
23or cultural organization that establishes, by proof required by
24the Department by rule, that it has received an exemption under

 

 

HB0300- 32 -LRB097 02871 HLH 42895 b

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

 

 

HB0300- 33 -LRB097 02871 HLH 42895 b

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

 

 

HB0300- 34 -LRB097 02871 HLH 42895 b

1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4    Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (7) is exempt from the
11provisions of Section 3-55.
12    (8) Fuel and petroleum products sold to or used by an air
13common carrier, certified by the carrier to be used for
14consumption, shipment, or storage in the conduct of its
15business as an air common carrier, for a flight destined for or
16returning from a location or locations outside the United
17States without regard to previous or subsequent domestic
18stopovers.
19    (9) Proceeds of mandatory service charges separately
20stated on customers' bills for the purchase and consumption of
21food and beverages, to the extent that the proceeds of the
22service charge are in fact turned over as tips or as a
23substitute for tips to the employees who participate directly
24in preparing, serving, hosting or cleaning up the food or
25beverage function with respect to which the service charge is
26imposed.

 

 

HB0300- 35 -LRB097 02871 HLH 42895 b

1    (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of rigs,
3rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
4tubular goods, including casing and drill strings, (iii) pumps
5and pump-jack units, (iv) storage tanks and flow lines, (v) any
6individual replacement part for oil field exploration,
7drilling, and production equipment, and (vi) machinery and
8equipment purchased for lease; but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code.
10    (11) Photoprocessing machinery and equipment, including
11repair and replacement parts, both new and used, including that
12manufactured on special order, certified by the purchaser to be
13used primarily for photoprocessing, and including
14photoprocessing machinery and equipment purchased for lease.
15    (12) Until July 1, 2003, and beginning again on the
16effective date of this amendatory Act of the 97th General
17Assembly and thereafter, coal and aggregate exploration,
18mining, offhighway hauling, processing, maintenance, and
19reclamation equipment, including replacement parts and
20equipment, and including equipment purchased for lease, but
21excluding motor vehicles required to be registered under the
22Illinois Vehicle Code. This item (12) is not subject to the
23provisions of Section 3-55.
24    (13) Beginning January 1, 1992 and through June 30, 2011,
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages, soft

 

 

HB0300- 36 -LRB097 02871 HLH 42895 b

1drinks and food that has been prepared for immediate
2consumption) and prescription and non-prescription medicines,
3drugs, medical appliances, and insulin, urine testing
4materials, syringes, and needles used by diabetics, for human
5use, when purchased for use by a person receiving medical
6assistance under Article V of the Illinois Public Aid Code who
7resides in a licensed long-term care facility, as defined in
8the Nursing Home Care Act, or in a licensed facility as defined
9in the MR/DD Community Care Act.
10    (14) Semen used for artificial insemination of livestock
11for direct agricultural production.
12    (15) Horses, or interests in horses, registered with and
13meeting the requirements of any of the Arabian Horse Club
14Registry of America, Appaloosa Horse Club, American Quarter
15Horse Association, United States Trotting Association, or
16Jockey Club, as appropriate, used for purposes of breeding or
17racing for prizes. This item (15) is exempt from the provisions
18of Section 3-55, and the exemption provided for under this item
19(15) applies for all periods beginning May 30, 1995, but no
20claim for credit or refund is allowed on or after January 1,
212008 (the effective date of Public Act 95-88) for such taxes
22paid during the period beginning May 30, 2000 and ending on
23January 1, 2008 (the effective date of Public Act 95-88).
24    (16) Computers and communications equipment utilized for
25any hospital purpose and equipment used in the diagnosis,
26analysis, or treatment of hospital patients sold to a lessor

 

 

HB0300- 37 -LRB097 02871 HLH 42895 b

1who leases the equipment, under a lease of one year or longer
2executed or in effect at the time of the purchase, to a
3hospital that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act.
6    (17) Personal property sold to a lessor who leases the
7property, under a lease of one year or longer executed or in
8effect at the time of the purchase, to a governmental body that
9has been issued an active tax exemption identification number
10by the Department under Section 1g of the Retailers' Occupation
11Tax Act.
12    (18) Beginning with taxable years ending on or after
13December 31, 1995 and ending with taxable years ending on or
14before December 31, 2004, personal property that is donated for
15disaster relief to be used in a State or federally declared
16disaster area in Illinois or bordering Illinois by a
17manufacturer or retailer that is registered in this State to a
18corporation, society, association, foundation, or institution
19that has been issued a sales tax exemption identification
20number by the Department that assists victims of the disaster
21who reside within the declared disaster area.
22    (19) Beginning with taxable years ending on or after
23December 31, 1995 and ending with taxable years ending on or
24before December 31, 2004, personal property that is used in the
25performance of infrastructure repairs in this State, including
26but not limited to municipal roads and streets, access roads,

 

 

HB0300- 38 -LRB097 02871 HLH 42895 b

1bridges, sidewalks, waste disposal systems, water and sewer
2line extensions, water distribution and purification
3facilities, storm water drainage and retention facilities, and
4sewage treatment facilities, resulting from a State or
5federally declared disaster in Illinois or bordering Illinois
6when such repairs are initiated on facilities located in the
7declared disaster area within 6 months after the disaster.
8    (20) Beginning July 1, 1999, game or game birds sold at a
9"game breeding and hunting preserve area" or an "exotic game
10hunting area" as those terms are used in the Wildlife Code or
11at a hunting enclosure approved through rules adopted by the
12Department of Natural Resources. This paragraph is exempt from
13the provisions of Section 3-55.
14    (21) A motor vehicle, as that term is defined in Section
151-146 of the Illinois Vehicle Code, that is donated to a
16corporation, limited liability company, society, association,
17foundation, or institution that is determined by the Department
18to be organized and operated exclusively for educational
19purposes. For purposes of this exemption, "a corporation,
20limited liability company, society, association, foundation,
21or institution organized and operated exclusively for
22educational purposes" means all tax-supported public schools,
23private schools that offer systematic instruction in useful
24branches of learning by methods common to public schools and
25that compare favorably in their scope and intensity with the
26course of study presented in tax-supported schools, and

 

 

HB0300- 39 -LRB097 02871 HLH 42895 b

1vocational or technical schools or institutes organized and
2operated exclusively to provide a course of study of not less
3than 6 weeks duration and designed to prepare individuals to
4follow a trade or to pursue a manual, technical, mechanical,
5industrial, business, or commercial occupation.
6    (22) Beginning January 1, 2000, personal property,
7including food, purchased through fundraising events for the
8benefit of a public or private elementary or secondary school,
9a group of those schools, or one or more school districts if
10the events are sponsored by an entity recognized by the school
11district that consists primarily of volunteers and includes
12parents and teachers of the school children. This paragraph
13does not apply to fundraising events (i) for the benefit of
14private home instruction or (ii) for which the fundraising
15entity purchases the personal property sold at the events from
16another individual or entity that sold the property for the
17purpose of resale by the fundraising entity and that profits
18from the sale to the fundraising entity. This paragraph is
19exempt from the provisions of Section 3-55.
20    (23) Beginning January 1, 2000 and through December 31,
212001, new or used automatic vending machines that prepare and
22serve hot food and beverages, including coffee, soup, and other
23items, and replacement parts for these machines. Beginning
24January 1, 2002 and through June 30, 2003, machines and parts
25for machines used in commercial, coin-operated amusement and
26vending business if a use or occupation tax is paid on the

 

 

HB0300- 40 -LRB097 02871 HLH 42895 b

1gross receipts derived from the use of the commercial,
2coin-operated amusement and vending machines. This paragraph
3is exempt from the provisions of Section 3-55.
4    (24) Beginning on the effective date of this amendatory Act
5of the 92nd General Assembly, computers and communications
6equipment utilized for any hospital purpose and equipment used
7in the diagnosis, analysis, or treatment of hospital patients
8sold to a lessor who leases the equipment, under a lease of one
9year or longer executed or in effect at the time of the
10purchase, to a hospital that has been issued an active tax
11exemption identification number by the Department under
12Section 1g of the Retailers' Occupation Tax Act. This paragraph
13is exempt from the provisions of Section 3-55.
14    (25) Beginning on the effective date of this amendatory Act
15of the 92nd General Assembly, personal property sold to a
16lessor who leases the property, under a lease of one year or
17longer executed or in effect at the time of the purchase, to a
18governmental body that has been issued an active tax exemption
19identification number by the Department under Section 1g of the
20Retailers' Occupation Tax Act. This paragraph is exempt from
21the provisions of Section 3-55.
22    (26) Beginning on January 1, 2002 and through June 30,
232011, tangible personal property purchased from an Illinois
24retailer by a taxpayer engaged in centralized purchasing
25activities in Illinois who will, upon receipt of the property
26in Illinois, temporarily store the property in Illinois (i) for

 

 

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1the purpose of subsequently transporting it outside this State
2for use or consumption thereafter solely outside this State or
3(ii) for the purpose of being processed, fabricated, or
4manufactured into, attached to, or incorporated into other
5tangible personal property to be transported outside this State
6and thereafter used or consumed solely outside this State. The
7Director of Revenue shall, pursuant to rules adopted in
8accordance with the Illinois Administrative Procedure Act,
9issue a permit to any taxpayer in good standing with the
10Department who is eligible for the exemption under this
11paragraph (26). The permit issued under this paragraph (26)
12shall authorize the holder, to the extent and in the manner
13specified in the rules adopted under this Act, to purchase
14tangible personal property from a retailer exempt from the
15taxes imposed by this Act. Taxpayers shall maintain all
16necessary books and records to substantiate the use and
17consumption of all such tangible personal property outside of
18the State of Illinois.
19    (27) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued under
24Title IV of the Environmental Protection Act. This paragraph is
25exempt from the provisions of Section 3-55.
26    (28) Tangible personal property sold to a

 

 

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1public-facilities corporation, as described in Section
211-65-10 of the Illinois Municipal Code, for purposes of
3constructing or furnishing a municipal convention hall, but
4only if the legal title to the municipal convention hall is
5transferred to the municipality without any further
6consideration by or on behalf of the municipality at the time
7of the completion of the municipal convention hall or upon the
8retirement or redemption of any bonds or other debt instruments
9issued by the public-facilities corporation in connection with
10the development of the municipal convention hall. This
11exemption includes existing public-facilities corporations as
12provided in Section 11-65-25 of the Illinois Municipal Code.
13This paragraph is exempt from the provisions of Section 3-55.
14    (29) Beginning January 1, 2010, materials, parts,
15equipment, components, and furnishings incorporated into or
16upon an aircraft as part of the modification, refurbishment,
17completion, replacement, repair, or maintenance of the
18aircraft. This exemption includes consumable supplies used in
19the modification, refurbishment, completion, replacement,
20repair, and maintenance of aircraft, but excludes any
21materials, parts, equipment, components, and consumable
22supplies used in the modification, replacement, repair, and
23maintenance of aircraft engines or power plants, whether such
24engines or power plants are installed or uninstalled upon any
25such aircraft. "Consumable supplies" include, but are not
26limited to, adhesive, tape, sandpaper, general purpose

 

 

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1lubricants, cleaning solution, latex gloves, and protective
2films. This exemption applies only to those organizations that
3(i) hold an Air Agency Certificate and are empowered to operate
4an approved repair station by the Federal Aviation
5Administration, (ii) have a Class IV Rating, and (iii) conduct
6operations in accordance with Part 145 of the Federal Aviation
7Regulations. The exemption does not include aircraft operated
8by a commercial air carrier providing scheduled passenger air
9service pursuant to authority issued under Part 121 or Part 129
10of the Federal Aviation Regulations.
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 20. The Retailers' Occupation Tax Act is amended by
16changing Section 2-5 as follows:
 
17    (35 ILCS 120/2-5)
18    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
19sale of the following tangible personal property are exempt
20from the tax imposed by this Act:
21    (1) Farm chemicals.
22    (2) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or

 

 

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1State or federal agricultural programs, including individual
2replacement parts for the machinery and equipment, including
3machinery and equipment purchased for lease, and including
4implements of husbandry defined in Section 1-130 of the
5Illinois Vehicle Code, farm machinery and agricultural
6chemical and fertilizer spreaders, and nurse wagons required to
7be registered under Section 3-809 of the Illinois Vehicle Code,
8but excluding other motor vehicles required to be registered
9under the Illinois Vehicle Code. Horticultural polyhouses or
10hoop houses used for propagating, growing, or overwintering
11plants shall be considered farm machinery and equipment under
12this item (2). Agricultural chemical tender tanks and dry boxes
13shall include units sold separately from a motor vehicle
14required to be licensed and units sold mounted on a motor
15vehicle required to be licensed, if the selling price of the
16tender is separately stated.
17    Farm machinery and equipment shall include precision
18farming equipment that is installed or purchased to be
19installed on farm machinery and equipment including, but not
20limited to, tractors, harvesters, sprayers, planters, seeders,
21or spreaders. Precision farming equipment includes, but is not
22limited to, soil testing sensors, computers, monitors,
23software, global positioning and mapping systems, and other
24such equipment.
25    Farm machinery and equipment also includes computers,
26sensors, software, and related equipment used primarily in the

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (7) is exempt from the
6provisions of Section 2-70.
7    (3) Until July 1, 2003, distillation machinery and
8equipment, sold as a unit or kit, assembled or installed by the
9retailer, certified by the user to be used only for the
10production of ethyl alcohol that will be used for consumption
11as motor fuel or as a component of motor fuel for the personal
12use of the user, and not subject to sale or resale.
13    (4) Until July 1, 2003 and beginning again September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product.
22    (5) A motor vehicle of the first division, a motor vehicle
23of the second division that is a self contained motor vehicle
24designed or permanently converted to provide living quarters
25for recreational, camping, or travel use, with direct walk
26through access to the living quarters from the driver's seat,

 

 

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1or a motor vehicle of the second division that is of the van
2configuration designed for the transportation of not less than
37 nor more than 16 passengers, as defined in Section 1-146 of
4the Illinois Vehicle Code, that is used for automobile renting,
5as defined in the Automobile Renting Occupation and Use Tax
6Act. This paragraph is exempt from the provisions of Section
72-70.
8    (6) Personal property sold by a teacher-sponsored student
9organization affiliated with an elementary or secondary school
10located in Illinois.
11    (7) Until July 1, 2003, proceeds of that portion of the
12selling price of a passenger car the sale of which is subject
13to the Replacement Vehicle Tax.
14    (8) Personal property sold to an Illinois county fair
15association for use in conducting, operating, or promoting the
16county fair.
17    (9) Personal property sold to a not-for-profit arts or
18cultural organization that establishes, by proof required by
19the Department by rule, that it has received an exemption under
20Section 501(c)(3) of the Internal Revenue Code and that is
21organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,
24music and dramatic arts organizations such as symphony
25orchestras and theatrical groups, arts and cultural service
26organizations, local arts councils, visual arts organizations,

 

 

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1and media arts organizations. On and after the effective date
2of this amendatory Act of the 92nd General Assembly, however,
3an entity otherwise eligible for this exemption shall not make
4tax-free purchases unless it has an active identification
5number issued by the Department.
6    (10) Personal property sold by a corporation, society,
7association, foundation, institution, or organization, other
8than a limited liability company, that is organized and
9operated as a not-for-profit service enterprise for the benefit
10of persons 65 years of age or older if the personal property
11was not purchased by the enterprise for the purpose of resale
12by the enterprise.
13    (11) Personal property sold to a governmental body, to a
14corporation, society, association, foundation, or institution
15organized and operated exclusively for charitable, religious,
16or educational purposes, or to a not-for-profit corporation,
17society, association, foundation, institution, or organization
18that has no compensated officers or employees and that is
19organized and operated primarily for the recreation of persons
2055 years of age or older. A limited liability company may
21qualify for the exemption under this paragraph only if the
22limited liability company is organized and operated
23exclusively for educational purposes. On and after July 1,
241987, however, no entity otherwise eligible for this exemption
25shall make tax-free purchases unless it has an active
26identification number issued by the Department.

 

 

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1    (12) Tangible personal property sold to interstate
2carriers for hire for use as rolling stock moving in interstate
3commerce or to lessors under leases of one year or longer
4executed or in effect at the time of purchase by interstate
5carriers for hire for use as rolling stock moving in interstate
6commerce and equipment operated by a telecommunications
7provider, licensed as a common carrier by the Federal
8Communications Commission, which is permanently installed in
9or affixed to aircraft moving in interstate commerce.
10    (12-5) On and after July 1, 2003 and through June 30, 2004,
11motor vehicles of the second division with a gross vehicle
12weight in excess of 8,000 pounds that are subject to the
13commercial distribution fee imposed under Section 3-815.1 of
14the Illinois Vehicle Code. Beginning on July 1, 2004 and
15through June 30, 2005, the use in this State of motor vehicles
16of the second division: (i) with a gross vehicle weight rating
17in excess of 8,000 pounds; (ii) that are subject to the
18commercial distribution fee imposed under Section 3-815.1 of
19the Illinois Vehicle Code; and (iii) that are primarily used
20for commercial purposes. Through June 30, 2005, this exemption
21applies to repair and replacement parts added after the initial
22purchase of such a motor vehicle if that motor vehicle is used
23in a manner that would qualify for the rolling stock exemption
24otherwise provided for in this Act. For purposes of this
25paragraph, "used for commercial purposes" means the
26transportation of persons or property in furtherance of any

 

 

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1commercial or industrial enterprise whether for-hire or not.
2    (13) Proceeds from sales to owners, lessors, or shippers of
3tangible personal property that is utilized by interstate
4carriers for hire for use as rolling stock moving in interstate
5commerce and equipment operated by a telecommunications
6provider, licensed as a common carrier by the Federal
7Communications Commission, which is permanently installed in
8or affixed to aircraft moving in interstate commerce.
9    (14) Machinery and equipment that will be used by the
10purchaser, or a lessee of the purchaser, primarily in the
11process of manufacturing or assembling tangible personal
12property for wholesale or retail sale or lease, whether the
13sale or lease is made directly by the manufacturer or by some
14other person, whether the materials used in the process are
15owned by the manufacturer or some other person, or whether the
16sale or lease is made apart from or as an incident to the
17seller's engaging in the service occupation of producing
18machines, tools, dies, jigs, patterns, gauges, or other similar
19items of no commercial value on special order for a particular
20purchaser.
21    (15) Proceeds of mandatory service charges separately
22stated on customers' bills for purchase and consumption of food
23and beverages, to the extent that the proceeds of the service
24charge are in fact turned over as tips or as a substitute for
25tips to the employees who participate directly in preparing,
26serving, hosting or cleaning up the food or beverage function

 

 

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1with respect to which the service charge is imposed.
2    (16) Petroleum products sold to a purchaser if the seller
3is prohibited by federal law from charging tax to the
4purchaser.
5    (17) Tangible personal property sold to a common carrier by
6rail or motor that receives the physical possession of the
7property in Illinois and that transports the property, or
8shares with another common carrier in the transportation of the
9property, out of Illinois on a standard uniform bill of lading
10showing the seller of the property as the shipper or consignor
11of the property to a destination outside Illinois, for use
12outside Illinois.
13    (18) 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    (19) Until July 1 2003, oil field exploration, drilling,
18and production equipment, including (i) rigs and parts of rigs,
19rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
20tubular goods, including casing and drill strings, (iii) pumps
21and pump-jack units, (iv) storage tanks and flow lines, (v) any
22individual replacement part for oil field exploration,
23drilling, and production equipment, and (vi) machinery and
24equipment purchased for lease; but excluding motor vehicles
25required to be registered under the Illinois Vehicle Code.
26    (20) Photoprocessing machinery and equipment, including

 

 

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1repair and replacement parts, both new and used, including that
2manufactured on special order, certified by the purchaser to be
3used primarily for photoprocessing, and including
4photoprocessing machinery and equipment purchased for lease.
5    (21) Until July 1, 2003, and beginning again on the
6effective date of this amendatory Act of the 97th General
7Assembly and thereafter, coal and aggregate exploration,
8mining, offhighway hauling, processing, maintenance, and
9reclamation equipment, including replacement parts and
10equipment, and including equipment purchased for lease, but
11excluding motor vehicles required to be registered under the
12Illinois Vehicle Code. This item (21) is not subject to the
13provisions of Section 2-70.
14    (22) Fuel and petroleum products sold to or used by an air
15carrier, certified by the carrier to be used for consumption,
16shipment, or storage in the conduct of its business as an air
17common carrier, for a flight destined for or returning from a
18location or locations outside the United States without regard
19to previous or subsequent domestic stopovers.
20    (23) A transaction in which the purchase order is received
21by a florist who is located outside Illinois, but who has a
22florist located in Illinois deliver the property to the
23purchaser or the purchaser's donee in Illinois.
24    (24) Fuel consumed or used in the operation of ships,
25barges, or vessels that are used primarily in or for the
26transportation of property or the conveyance of persons for

 

 

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1hire on rivers bordering on this State if the fuel is delivered
2by the seller to the purchaser's barge, ship, or vessel while
3it is afloat upon that bordering river.
4    (25) Except as provided in item (25-5) of this Section, a
5motor vehicle sold in this State to a nonresident even though
6the motor vehicle is delivered to the nonresident in this
7State, if the motor vehicle is not to be titled in this State,
8and if a drive-away permit is issued to the motor vehicle as
9provided in Section 3-603 of the Illinois Vehicle Code or if
10the nonresident purchaser has vehicle registration plates to
11transfer to the motor vehicle upon returning to his or her home
12state. The issuance of the drive-away permit or having the
13out-of-state registration plates to be transferred is prima
14facie evidence that the motor vehicle will not be titled in
15this State.
16    (25-5) The exemption under item (25) does not apply if the
17state in which the motor vehicle will be titled does not allow
18a reciprocal exemption for a motor vehicle sold and delivered
19in that state to an Illinois resident but titled in Illinois.
20The tax collected under this Act on the sale of a motor vehicle
21in this State to a resident of another state that does not
22allow a reciprocal exemption shall be imposed at a rate equal
23to the state's rate of tax on taxable property in the state in
24which the purchaser is a resident, except that the tax shall
25not exceed the tax that would otherwise be imposed under this
26Act. At the time of the sale, the purchaser shall execute a

 

 

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1statement, signed under penalty of perjury, of his or her
2intent to title the vehicle in the state in which the purchaser
3is a resident within 30 days after the sale and of the fact of
4the payment to the State of Illinois of tax in an amount
5equivalent to the state's rate of tax on taxable property in
6his or her state of residence and shall submit the statement to
7the appropriate tax collection agency in his or her state of
8residence. In addition, the retailer must retain a signed copy
9of the statement in his or her records. Nothing in this item
10shall be construed to require the removal of the vehicle from
11this state following the filing of an intent to title the
12vehicle in the purchaser's state of residence if the purchaser
13titles the vehicle in his or her state of residence within 30
14days after the date of sale. The tax collected under this Act
15in accordance with this item (25-5) shall be proportionately
16distributed as if the tax were collected at the 6.25% general
17rate imposed under this Act.
18    (25-7) Beginning on July 1, 2007, no tax is imposed under
19this Act on the sale of an aircraft, as defined in Section 3 of
20the Illinois Aeronautics Act, if all of the following
21conditions are met:
22        (1) the aircraft leaves this State within 15 days after
23    the later of either the issuance of the final billing for
24    the sale of the aircraft, or the authorized approval for
25    return to service, completion of the maintenance record
26    entry, and completion of the test flight and ground test

 

 

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1    for inspection, as required by 14 C.F.R. 91.407;
2        (2) the aircraft is not based or registered in this
3    State after the sale of the aircraft; and
4        (3) the seller retains in his or her books and records
5    and provides to the Department a signed and dated
6    certification from the purchaser, on a form prescribed by
7    the Department, certifying that the requirements of this
8    item (25-7) are met. The certificate must also include the
9    name and address of the purchaser, the address of the
10    location where the aircraft is to be titled or registered,
11    the address of the primary physical location of the
12    aircraft, and other information that the Department may
13    reasonably require.
14    For purposes of this item (25-7):
15    "Based in this State" means hangared, stored, or otherwise
16used, excluding post-sale customizations as defined in this
17Section, for 10 or more days in each 12-month period
18immediately following the date of the sale of the aircraft.
19    "Registered in this State" means an aircraft registered
20with the Department of Transportation, Aeronautics Division,
21or titled or registered with the Federal Aviation
22Administration to an address located in this State.
23    This paragraph (25-7) is exempt from the provisions of
24Section 2-70.
25    (26) Semen used for artificial insemination of livestock
26for direct agricultural production.

 

 

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1    (27) Horses, or interests in horses, registered with and
2meeting the requirements of any of the Arabian Horse Club
3Registry of America, Appaloosa Horse Club, American Quarter
4Horse Association, United States Trotting Association, or
5Jockey Club, as appropriate, used for purposes of breeding or
6racing for prizes. This item (27) is exempt from the provisions
7of Section 2-70, and the exemption provided for under this item
8(27) applies for all periods beginning May 30, 1995, but no
9claim for credit or refund is allowed on or after January 1,
102008 (the effective date of Public Act 95-88) for such taxes
11paid during the period beginning May 30, 2000 and ending on
12January 1, 2008 (the effective date of Public Act 95-88).
13    (28) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients sold to a lessor
16who leases the equipment, under a lease of one year or longer
17executed or in effect at the time of the purchase, to a
18hospital that has been issued an active tax exemption
19identification number by the Department under Section 1g of
20this Act.
21    (29) Personal property sold to a lessor who leases the
22property, under a lease of one year or longer executed or in
23effect at the time of the purchase, to a governmental body that
24has been issued an active tax exemption identification number
25by the Department under Section 1g of this Act.
26    (30) Beginning with taxable years ending on or after

 

 

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

 

 

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1the provisions of Section 2-70.
2    (33) A motor vehicle, as that term is defined in Section
31-146 of the Illinois Vehicle Code, that is donated to a
4corporation, limited liability company, society, association,
5foundation, or institution that is determined by the Department
6to be organized and operated exclusively for educational
7purposes. For purposes of this exemption, "a corporation,
8limited liability company, society, association, foundation,
9or institution organized and operated exclusively for
10educational purposes" means all tax-supported public schools,
11private schools that offer systematic instruction in useful
12branches of learning by methods common to public schools and
13that compare favorably in their scope and intensity with the
14course of study presented in tax-supported schools, and
15vocational or technical schools or institutes organized and
16operated exclusively to provide a course of study of not less
17than 6 weeks duration and designed to prepare individuals to
18follow a trade or to pursue a manual, technical, mechanical,
19industrial, business, or commercial occupation.
20    (34) Beginning January 1, 2000, personal property,
21including food, purchased through fundraising events for the
22benefit of a public or private elementary or secondary school,
23a group of those schools, or one or more school districts if
24the events are sponsored by an entity recognized by the school
25district that consists primarily of volunteers and includes
26parents and teachers of the school children. This paragraph

 

 

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1does not apply to fundraising events (i) for the benefit of
2private home instruction or (ii) for which the fundraising
3entity purchases the personal property sold at the events from
4another individual or entity that sold the property for the
5purpose of resale by the fundraising entity and that profits
6from the sale to the fundraising entity. This paragraph is
7exempt from the provisions of Section 2-70.
8    (35) Beginning January 1, 2000 and through December 31,
92001, new or used automatic vending machines that prepare and
10serve hot food and beverages, including coffee, soup, and other
11items, and replacement parts for these machines. Beginning
12January 1, 2002 and through June 30, 2003, machines and parts
13for machines used in commercial, coin-operated amusement and
14vending business if a use or occupation tax is paid on the
15gross receipts derived from the use of the commercial,
16coin-operated amusement and vending machines. This paragraph
17is exempt from the provisions of Section 2-70.
18    (35-5) Beginning August 23, 2001 and through June 30, 2011,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages, soft
21drinks, and food that has been prepared for immediate
22consumption) and prescription and nonprescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

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1resides in a licensed long-term care facility, as defined in
2the Nursing Home Care Act, or a licensed facility as defined in
3the MR/DD Community Care Act.
4    (36) Beginning August 2, 2001, computers and
5communications equipment utilized for any hospital purpose and
6equipment used in the diagnosis, analysis, or treatment of
7hospital patients sold to a lessor who leases the equipment,
8under a lease of one year or longer executed or in effect at
9the time of the purchase, to a hospital that has been issued an
10active tax exemption identification number by the Department
11under Section 1g of this Act. This paragraph is exempt from the
12provisions of Section 2-70.
13    (37) Beginning August 2, 2001, personal property sold to a
14lessor who leases the property, under a lease of one year or
15longer executed or in effect at the time of the purchase, to a
16governmental body that has been issued an active tax exemption
17identification number by the Department under Section 1g of
18this Act. This paragraph is exempt from the provisions of
19Section 2-70.
20    (38) Beginning on January 1, 2002 and through June 30,
212011, tangible personal property purchased from an Illinois
22retailer by a taxpayer engaged in centralized purchasing
23activities in Illinois who will, upon receipt of the property
24in Illinois, temporarily store the property in Illinois (i) for
25the purpose of subsequently transporting it outside this State
26for use or consumption thereafter solely outside this State or

 

 

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1(ii) for the purpose of being processed, fabricated, or
2manufactured into, attached to, or incorporated into other
3tangible personal property to be transported outside this State
4and thereafter used or consumed solely outside this State. The
5Director of Revenue shall, pursuant to rules adopted in
6accordance with the Illinois Administrative Procedure Act,
7issue a permit to any taxpayer in good standing with the
8Department who is eligible for the exemption under this
9paragraph (38). The permit issued under this paragraph (38)
10shall authorize the holder, to the extent and in the manner
11specified in the rules adopted under this Act, to purchase
12tangible personal property from a retailer exempt from the
13taxes imposed by this Act. Taxpayers shall maintain all
14necessary books and records to substantiate the use and
15consumption of all such tangible personal property outside of
16the State of Illinois.
17    (39) Beginning January 1, 2008, tangible personal property
18used in the construction or maintenance of a community water
19supply, as defined under Section 3.145 of the Environmental
20Protection Act, that is operated by a not-for-profit
21corporation that holds a valid water supply permit issued under
22Title IV of the Environmental Protection Act. This paragraph is
23exempt from the provisions of Section 2-70.
24    (40) Beginning January 1, 2010, materials, parts,
25equipment, components, and furnishings incorporated into or
26upon an aircraft as part of the modification, refurbishment,

 

 

HB0300- 61 -LRB097 02871 HLH 42895 b

1completion, replacement, repair, or maintenance of the
2aircraft. This exemption includes consumable supplies used in
3the modification, refurbishment, completion, replacement,
4repair, and maintenance of aircraft, but excludes any
5materials, parts, equipment, components, and consumable
6supplies used in the modification, replacement, repair, and
7maintenance of aircraft engines or power plants, whether such
8engines or power plants are installed or uninstalled upon any
9such aircraft. "Consumable supplies" include, but are not
10limited to, adhesive, tape, sandpaper, general purpose
11lubricants, cleaning solution, latex gloves, and protective
12films. This exemption applies only to those organizations that
13(i) hold an Air Agency Certificate and are empowered to operate
14an approved repair station by the Federal Aviation
15Administration, (ii) have a Class IV Rating, and (iii) conduct
16operations in accordance with Part 145 of the Federal Aviation
17Regulations. The exemption does not include aircraft operated
18by a commercial air carrier providing scheduled passenger air
19service pursuant to authority issued under Part 121 or Part 129
20of the Federal Aviation Regulations.
21    (41) Tangible personal property sold to a
22public-facilities corporation, as described in Section
2311-65-10 of the Illinois Municipal Code, for purposes of
24constructing or furnishing a municipal convention hall, but
25only if the legal title to the municipal convention hall is
26transferred to the municipality without any further

 

 

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1consideration by or on behalf of the municipality at the time
2of the completion of the municipal convention hall or upon the
3retirement or redemption of any bonds or other debt instruments
4issued by the public-facilities corporation in connection with
5the development of the municipal convention hall. This
6exemption includes existing public-facilities corporations as
7provided in Section 11-65-25 of the Illinois Municipal Code.
8This paragraph is exempt from the provisions of Section 2-70.
9(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
10eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;
1195-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
127-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
13eff. 7-2-10.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.