Sen. James F. Clayborne, Jr.

Filed: 3/28/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1566

2    AMENDMENT NO. ______. Amend Senate Bill 1566 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts or
4cultural organization that establishes, by proof required by
5the Department by rule, that it has received an exemption under
6Section 501(c)(3) of the Internal Revenue Code and that is
7organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after the effective date
14of this amendatory Act of the 92nd General Assembly, however,
15an entity otherwise eligible for this exemption shall not make
16tax-free purchases unless it has an active identification
17number issued by the Department.
18    (4) Personal property purchased by a governmental body, by
19a corporation, society, association, foundation, or
20institution organized and operated exclusively for charitable,
21religious, or educational purposes, or by a not-for-profit
22corporation, society, association, foundation, institution, or
23organization that has no compensated officers or employees and
24that is organized and operated primarily for the recreation of
25persons 55 years of age or older. A limited liability company
26may qualify for the exemption under this paragraph only if the

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active exemption
5identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon a
18graphic arts product.
19    (7) Farm chemicals.
20    (8) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (9) Personal property purchased from a teacher-sponsored
25student organization affiliated with an elementary or
26secondary school located in Illinois.

 

 

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1    (10) A motor vehicle of the first division, a motor vehicle
2of the second division that is a self-contained motor vehicle
3designed or permanently converted to provide living quarters
4for recreational, camping, or travel use, with direct walk
5through to the living quarters from the driver's seat, or a
6motor vehicle of the second division that is of the van
7configuration designed for the transportation of not less than
87 nor more than 16 passengers, as defined in Section 1-146 of
9the Illinois Vehicle Code, that is used for automobile renting,
10as defined in the Automobile Renting Occupation and Use Tax
11Act.
12    (11) Farm machinery and equipment, both new and used,
13including that manufactured on special order, certified by the
14purchaser to be used primarily for production agriculture or
15State or federal agricultural programs, including individual
16replacement parts for the machinery and equipment, including
17machinery and equipment purchased for lease, and including
18implements of husbandry defined in Section 1-130 of the
19Illinois Vehicle Code, farm machinery and agricultural
20chemical and fertilizer spreaders, and nurse wagons required to
21be registered under Section 3-809 of the Illinois Vehicle Code,
22but excluding other motor vehicles required to be registered
23under the Illinois Vehicle Code. Horticultural polyhouses or
24hoop houses used for propagating, growing, or overwintering
25plants shall be considered farm machinery and equipment under
26this item (11). Agricultural chemical tender tanks and dry

 

 

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1boxes shall include units sold separately from a motor vehicle
2required to be licensed and units sold mounted on a motor
3vehicle required to be licensed if the selling price of the
4tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals. This item (11) is exempt from the
20provisions of Section 3-90.
21    (12) Fuel and petroleum products sold to or used by an air
22common carrier, certified by the carrier to be used for
23consumption, shipment, or storage in the conduct of its
24business as an air common carrier, for a flight destined for or
25returning from a location or locations outside the United
26States without regard to previous or subsequent domestic

 

 

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1stopovers.
2    (13) Proceeds of mandatory service charges separately
3stated on customers' bills for the purchase and consumption of
4food and beverages purchased at retail from a retailer, to the
5extent that the proceeds of the service charge are in fact
6turned over as tips or as a substitute for tips to the
7employees who participate directly in preparing, serving,
8hosting or cleaning up the food or beverage function with
9respect to which the service charge is imposed.
10    (14) 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    (15) Photoprocessing machinery and equipment, including
20repair and replacement parts, both new and used, including that
21manufactured on special order, certified by the purchaser to be
22used primarily for photoprocessing, and including
23photoprocessing machinery and equipment purchased for lease.
24    (16) Until July 1, 2003, coal exploration, mining,
25offhighway hauling, processing, maintenance, and reclamation
26equipment, including replacement parts and equipment, and

 

 

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1including equipment purchased for lease, but excluding motor
2vehicles required to be registered under the Illinois Vehicle
3Code.
4    (17) Until July 1, 2003, distillation machinery and
5equipment, sold as a unit or kit, assembled or installed by the
6retailer, certified by the user to be used only for the
7production of ethyl alcohol that will be used for consumption
8as motor fuel or as a component of motor fuel for the personal
9use of the user, and not subject to sale or resale.
10    (18) Manufacturing and assembling machinery and equipment
11used primarily in the process of manufacturing or assembling
12tangible personal property for wholesale or retail sale or
13lease, whether that sale or lease is made directly by the
14manufacturer or by some other person, whether the materials
15used in the process are owned by the manufacturer or some other
16person, or whether that sale or lease is made apart from or as
17an incident to the seller's engaging in the service occupation
18of producing machines, tools, dies, jigs, patterns, gauges, or
19other similar items of no commercial value on special order for
20a particular purchaser.
21    (19) Personal property delivered to a purchaser or
22purchaser's donee inside Illinois when the purchase order for
23that personal property was received by a florist located
24outside Illinois who has a florist located inside Illinois
25deliver the personal property.
26    (20) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (21) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (21) is exempt from the provisions
8of Section 3-90, and the exemption provided for under this item
9(21) applies for all periods beginning May 30, 1995, but no
10claim for credit or refund is allowed on or after January 1,
112008 for such taxes paid during the period beginning May 30,
122000 and ending on January 1, 2008.
13    (22) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of the
21Retailers' Occupation Tax Act. If the equipment is leased in a
22manner that does not qualify for this exemption or is used in
23any other non-exempt manner, the lessor shall be liable for the
24tax imposed under this Act or the Service Use Tax Act, as the
25case may be, based on the fair market value of the property at
26the time the non-qualifying use occurs. No lessor shall collect

 

 

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

 

 

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1claim a refund of that amount from the lessor. If, however,
2that amount is not refunded to the lessee for any reason, the
3lessor is liable to pay that amount to the Department.
4    (24) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is donated for
7disaster relief to be used in a State or federally declared
8disaster area in Illinois or bordering Illinois by a
9manufacturer or retailer that is registered in this State to a
10corporation, society, association, foundation, or institution
11that has been issued a sales tax exemption identification
12number by the Department that assists victims of the disaster
13who reside within the declared disaster area.
14    (25) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is used in the
17performance of infrastructure repairs in this State, including
18but not limited to municipal roads and streets, access roads,
19bridges, sidewalks, waste disposal systems, water and sewer
20line extensions, water distribution and purification
21facilities, storm water drainage and retention facilities, and
22sewage treatment facilities, resulting from a State or
23federally declared disaster in Illinois or bordering Illinois
24when such repairs are initiated on facilities located in the
25declared disaster area within 6 months after the disaster.
26    (26) Beginning July 1, 1999, game or game birds purchased

 

 

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1at a "game breeding and hunting preserve area" or an "exotic
2game hunting area" as those terms are used in the Wildlife Code
3or at a hunting enclosure approved through rules adopted by the
4Department of Natural Resources. This paragraph is exempt from
5the provisions of Section 3-90.
6    (27) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the Department
10to be organized and operated exclusively for educational
11purposes. For purposes of this exemption, "a corporation,
12limited liability company, society, association, foundation,
13or institution organized and operated exclusively for
14educational purposes" means all tax-supported public schools,
15private schools that offer systematic instruction in useful
16branches of learning by methods common to public schools and
17that compare favorably in their scope and intensity with the
18course of study presented in tax-supported schools, and
19vocational or technical schools or institutes organized and
20operated exclusively to provide a course of study of not less
21than 6 weeks duration and designed to prepare individuals to
22follow a trade or to pursue a manual, technical, mechanical,
23industrial, business, or commercial occupation.
24    (28) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

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1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 3-90.
12    (29) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and other
15items, and replacement parts for these machines. Beginning
16January 1, 2002 and through June 30, 2003, machines and parts
17for machines used in commercial, coin-operated amusement and
18vending business if a use or occupation tax is paid on the
19gross receipts derived from the use of the commercial,
20coin-operated amusement and vending machines. This paragraph
21is exempt from the provisions of Section 3-90.
22    (30) Beginning January 1, 2001 and through June 30, 2011,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or in a licensed facility as defined
7in the MR/DD Community Care Act.
8    (31) Beginning on the effective date of this amendatory Act
9of the 92nd General Assembly, computers and communications
10equipment utilized for any hospital purpose and equipment used
11in the diagnosis, analysis, or treatment of hospital patients
12purchased by a lessor who leases the equipment, under a lease
13of one year or longer executed or in effect at the time the
14lessor would otherwise be subject to the tax imposed by this
15Act, to a hospital 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 nonexempt 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 nonqualifying 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. This paragraph is exempt from the provisions of
6Section 3-90.
7    (32) Beginning on the effective date of this amendatory Act
8of the 92nd General Assembly, personal property purchased by a
9lessor who leases the property, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12governmental body that has been issued an active sales tax
13exemption identification number by the Department under
14Section 1g of the Retailers' Occupation Tax Act. If the
15property is leased in a manner that does not qualify for this
16exemption or used in any other nonexempt manner, the lessor
17shall be liable for the tax imposed under this Act or the
18Service Use Tax Act, as the case may be, based on the fair
19market value of the property at the time the nonqualifying use
20occurs. No lessor shall collect or attempt to collect an amount
21(however designated) that purports to reimburse that lessor for
22the tax imposed by this Act or the Service Use Tax Act, as the
23case may be, if the tax has not been paid by the lessor. If a
24lessor improperly collects any such amount from the lessee, the
25lessee shall have a legal right to claim a refund of that
26amount from the lessor. If, however, that amount is not

 

 

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1refunded to the lessee for any reason, the lessor is liable to
2pay that amount to the Department. This paragraph is exempt
3from the provisions of Section 3-90.
4    (33) On and after July 1, 2003 and through June 30, 2004,
5the use in this State of motor vehicles of the second division
6with a gross vehicle weight in excess of 8,000 pounds and that
7are subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
91, 2004 and through June 30, 2005, the use in this State of
10motor vehicles of the second division: (i) with a gross vehicle
11weight rating in excess of 8,000 pounds; (ii) that are subject
12to the commercial distribution fee imposed under Section
133-815.1 of the Illinois Vehicle Code; and (iii) that are
14primarily used for commercial purposes. Through June 30, 2005,
15this exemption applies to repair and replacement parts added
16after the initial purchase of such a motor vehicle if that
17motor vehicle is used in a manner that would qualify for the
18rolling stock exemption otherwise provided for in this Act. For
19purposes of this paragraph, the term "used for commercial
20purposes" means the transportation of persons or property in
21furtherance of any commercial or industrial enterprise,
22whether for-hire or not.
23    (34) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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1corporation that holds a valid water supply permit issued under
2Title IV of the Environmental Protection Act. This paragraph is
3exempt from the provisions of Section 3-90.
4    (35) Beginning January 1, 2010, materials, parts,
5equipment, components, and furnishings incorporated into or
6upon an aircraft as part of the modification, refurbishment,
7completion, replacement, repair, or maintenance of the
8aircraft. This exemption includes consumable supplies used in
9the modification, refurbishment, completion, replacement,
10repair, and maintenance of aircraft, but excludes any
11materials, parts, equipment, components, and consumable
12supplies used in the modification, replacement, repair, and
13maintenance of aircraft engines or power plants, whether such
14engines or power plants are installed or uninstalled upon any
15such aircraft. "Consumable supplies" include, but are not
16limited to, adhesive, tape, sandpaper, general purpose
17lubricants, cleaning solution, latex gloves, and protective
18films. This exemption applies only to those organizations that
19(i) hold an Air Agency Certificate and are empowered to operate
20an approved repair station by the Federal Aviation
21Administration, (ii) have a Class IV Rating, or and (iii)
22perform aircraft maintenance under an FAA valid Airframe &
23Powerplant license or an FAA accredited Inspection
24Authorization conduct operations in accordance with Part 145 of
25the Federal Aviation Regulations. The exemption does not
26include aircraft operated by a commercial air carrier providing

 

 

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1scheduled passenger air service pursuant to authority issued
2under Part 121 or Part 129 of the Federal Aviation Regulations.
3    (36) Tangible personal property purchased by a
4public-facilities corporation, as described in Section
511-65-10 of the Illinois Municipal Code, for purposes of
6constructing or furnishing a municipal convention hall, but
7only if the legal title to the municipal convention hall is
8transferred to the municipality without any further
9consideration by or on behalf of the municipality at the time
10of the completion of the municipal convention hall or upon the
11retirement or redemption of any bonds or other debt instruments
12issued by the public-facilities corporation in connection with
13the development of the municipal convention hall. This
14exemption includes existing public-facilities corporations as
15provided in Section 11-65-25 of the Illinois Municipal Code.
16This paragraph is exempt from the provisions of Section 3-90.
17(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
18eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1996-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
207-2-10.)
 
21    Section 10. The Service Use Tax Act is amended by changing
22Section 3-5 as follows:
 
23    (35 ILCS 110/3-5)
24    Sec. 3-5. Exemptions. Use of the following tangible

 

 

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

 

 

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1    (4) Legal tender, currency, medallions, or gold or silver
2coinage issued by the State of Illinois, the government of the
3United States of America, or the government of any foreign
4country, and bullion.
5    (5) Until July 1, 2003 and beginning again on September 1,
62004 through August 30, 2014, graphic arts machinery and
7equipment, including repair and replacement parts, both new and
8used, and including that manufactured on special order or
9purchased for lease, certified by the purchaser to be used
10primarily for graphic arts production. Equipment includes
11chemicals or chemicals acting as catalysts but only if the
12chemicals or chemicals acting as catalysts effect a direct and
13immediate change upon a graphic arts product.
14    (6) Personal property purchased from a teacher-sponsored
15student organization affiliated with an elementary or
16secondary school located in Illinois.
17    (7) Farm machinery and equipment, both new and used,
18including that manufactured on special order, certified by the
19purchaser to be used primarily for production agriculture or
20State or federal agricultural programs, including individual
21replacement parts for the machinery and equipment, including
22machinery and equipment purchased for lease, and including
23implements of husbandry defined in Section 1-130 of the
24Illinois Vehicle Code, farm machinery and agricultural
25chemical and fertilizer spreaders, and nurse wagons required to
26be registered under Section 3-809 of the Illinois Vehicle Code,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09700SB1566sam001- 24 -LRB097 05492 HLH 51849 a

1Department under Section 1g of the Retailers' Occupation Tax
2Act. If the property is leased in a manner that does not
3qualify for this exemption or is used in any other non-exempt
4manner, the lessor shall be liable for the tax imposed under
5this Act or the Use Tax Act, as the case may be, based on the
6fair market value of the property at the time the
7non-qualifying use occurs. No lessor shall collect or attempt
8to collect an amount (however designated) that purports to
9reimburse that lessor for the tax imposed by this Act or the
10Use Tax Act, as the case may be, if the tax has not been paid by
11the lessor. If a lessor improperly collects any such amount
12from the lessee, the lessee shall have a legal right to claim a
13refund of that amount from the lessor. If, however, that amount
14is not refunded to the lessee for any reason, the lessor is
15liable to pay that amount to the Department.
16    (17) Beginning with taxable years ending on or after
17December 31, 1995 and ending with taxable years ending on or
18before December 31, 2004, personal property that is donated for
19disaster relief to be used in a State or federally declared
20disaster area in Illinois or bordering Illinois by a
21manufacturer or retailer that is registered in this State to a
22corporation, society, association, foundation, or institution
23that has been issued a sales tax exemption identification
24number by the Department that assists victims of the disaster
25who reside within the declared disaster area.
26    (18) 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 used in the
3performance of infrastructure repairs in this State, including
4but not limited to municipal roads and streets, access roads,
5bridges, sidewalks, waste disposal systems, water and sewer
6line extensions, water distribution and purification
7facilities, storm water drainage and retention facilities, and
8sewage treatment facilities, resulting from a State or
9federally declared disaster in Illinois or bordering Illinois
10when such repairs are initiated on facilities located in the
11declared disaster area within 6 months after the disaster.
12    (19) Beginning July 1, 1999, game or game birds purchased
13at a "game breeding and hunting preserve area" or an "exotic
14game hunting area" as those terms are used in the Wildlife Code
15or at a hunting enclosure approved through rules adopted by the
16Department of Natural Resources. This paragraph is exempt from
17the provisions of Section 3-75.
18    (20) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the Department
22to be organized and operated exclusively for educational
23purposes. For purposes of this exemption, "a corporation,
24limited liability company, society, association, foundation,
25or institution organized and operated exclusively for
26educational purposes" means all tax-supported public schools,

 

 

09700SB1566sam001- 26 -LRB097 05492 HLH 51849 a

1private schools that offer systematic instruction in useful
2branches of learning by methods common to public schools and
3that compare favorably in their scope and intensity with the
4course of study presented in tax-supported schools, and
5vocational or technical schools or institutes organized and
6operated exclusively to provide a course of study of not less
7than 6 weeks duration and designed to prepare individuals to
8follow a trade or to pursue a manual, technical, mechanical,
9industrial, business, or commercial occupation.
10    (21) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-75.
24    (22) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and other

 

 

09700SB1566sam001- 27 -LRB097 05492 HLH 51849 a

1items, and replacement parts for these machines. Beginning
2January 1, 2002 and through June 30, 2003, machines and parts
3for machines used in commercial, coin-operated amusement and
4vending business if a use or occupation tax is paid on the
5gross receipts derived from the use of the commercial,
6coin-operated amusement and vending machines. This paragraph
7is exempt from the provisions of Section 3-75.
8    (23) Beginning August 23, 2001 and through June 30, 2011,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages, soft
11drinks, and food that has been prepared for immediate
12consumption) and prescription and nonprescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the MR/DD Community Care Act.
20    (24) Beginning on the effective date of this amendatory Act
21of the 92nd General Assembly, computers and communications
22equipment utilized for any hospital purpose and equipment used
23in the diagnosis, analysis, or treatment of hospital patients
24purchased by a lessor who leases the equipment, under a lease
25of one year or longer executed or in effect at the time the
26lessor would otherwise be subject to the tax imposed by this

 

 

09700SB1566sam001- 28 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 29 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 30 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 31 -LRB097 05492 HLH 51849 a

1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt instruments
3issued by the public-facilities corporation in connection with
4the development of the municipal convention hall. This
5exemption includes existing public-facilities corporations as
6provided in Section 11-65-25 of the Illinois Municipal Code.
7This paragraph is exempt from the provisions of Section 3-75.
8(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
9eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1096-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
117-2-10.)
 
12    Section 15. The Service Occupation Tax Act is amended by
13changing Section 3-5 as follows:
 
14    (35 ILCS 115/3-5)
15    Sec. 3-5. Exemptions. The following tangible personal
16property is exempt from the tax imposed by this Act:
17    (1) Personal property sold by a corporation, society,
18association, foundation, institution, or organization, other
19than a limited liability company, that is organized and
20operated as a not-for-profit service enterprise for the benefit
21of persons 65 years of age or older if the personal property
22was not purchased by the enterprise for the purpose of resale
23by the enterprise.
24    (2) Personal property purchased by a not-for-profit

 

 

09700SB1566sam001- 32 -LRB097 05492 HLH 51849 a

1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by any not-for-profit arts
4or cultural organization that establishes, by proof required by
5the Department by rule, that it has received an exemption under
6Section 501(c)(3) of the Internal Revenue Code and that is
7organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after the effective date
14of this amendatory Act of the 92nd General Assembly, however,
15an entity otherwise eligible for this exemption shall not make
16tax-free purchases unless it has an active identification
17number issued by the Department.
18    (4) Legal tender, currency, medallions, or gold or silver
19coinage issued by the State of Illinois, the government of the
20United States of America, or the government of any foreign
21country, and bullion.
22    (5) Until July 1, 2003 and beginning again on September 1,
232004 through August 30, 2014, graphic arts machinery and
24equipment, including repair and replacement parts, both new and
25used, and including that manufactured on special order or
26purchased for lease, certified by the purchaser to be used

 

 

09700SB1566sam001- 33 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 34 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 35 -LRB097 05492 HLH 51849 a

1service charge are in fact turned over as tips or as a
2substitute for tips to the employees who participate directly
3in preparing, serving, hosting or cleaning up the food or
4beverage function with respect to which the service charge is
5imposed.
6    (10) Until July 1, 2003, oil field exploration, drilling,
7and production equipment, including (i) rigs and parts of rigs,
8rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
9tubular goods, including casing and drill strings, (iii) pumps
10and pump-jack units, (iv) storage tanks and flow lines, (v) any
11individual replacement part for oil field exploration,
12drilling, and production equipment, and (vi) machinery and
13equipment purchased for lease; but excluding motor vehicles
14required to be registered under the Illinois Vehicle Code.
15    (11) Photoprocessing machinery and equipment, including
16repair and replacement parts, both new and used, including that
17manufactured on special order, certified by the purchaser to be
18used primarily for photoprocessing, and including
19photoprocessing machinery and equipment purchased for lease.
20    (12) Until July 1, 2003, coal exploration, mining,
21offhighway hauling, processing, maintenance, and reclamation
22equipment, including replacement parts and equipment, and
23including equipment purchased for lease, but excluding motor
24vehicles required to be registered under the Illinois Vehicle
25Code.
26    (13) Beginning January 1, 1992 and through June 30, 2011,

 

 

09700SB1566sam001- 36 -LRB097 05492 HLH 51849 a

1food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages, soft
3drinks and food that has been prepared for immediate
4consumption) and prescription and non-prescription medicines,
5drugs, medical appliances, and insulin, urine testing
6materials, syringes, and needles used by diabetics, for human
7use, when purchased for use by a person receiving medical
8assistance under Article V of the Illinois Public Aid Code who
9resides in a licensed long-term care facility, as defined in
10the Nursing Home Care Act, or in a licensed facility as defined
11in the MR/DD Community Care Act.
12    (14) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (15) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (15) is exempt from the provisions
20of Section 3-55, and the exemption provided for under this item
21(15) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after January 1,
232008 (the effective date of Public Act 95-88) for such taxes
24paid during the period beginning May 30, 2000 and ending on
25January 1, 2008 (the effective date of Public Act 95-88).
26    (16) Computers and communications equipment utilized for

 

 

09700SB1566sam001- 37 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 38 -LRB097 05492 HLH 51849 a

1performance of infrastructure repairs in this State, including
2but not limited to municipal roads and streets, access roads,
3bridges, sidewalks, waste disposal systems, water and sewer
4line extensions, water distribution and purification
5facilities, storm water drainage and retention facilities, and
6sewage treatment facilities, resulting from a State or
7federally declared disaster in Illinois or bordering Illinois
8when such repairs are initiated on facilities located in the
9declared disaster area within 6 months after the disaster.
10    (20) Beginning July 1, 1999, game or game birds sold at a
11"game breeding and hunting preserve area" or an "exotic game
12hunting area" as those terms are used in the Wildlife Code or
13at a hunting enclosure approved through rules adopted by the
14Department of Natural Resources. This paragraph is exempt from
15the provisions of Section 3-55.
16    (21) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

09700SB1566sam001- 39 -LRB097 05492 HLH 51849 a

1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (22) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-55.
22    (23) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

09700SB1566sam001- 40 -LRB097 05492 HLH 51849 a

1for machines used in commercial, coin-operated amusement and
2vending business if a use or occupation tax is paid on the
3gross receipts derived from the use of the commercial,
4coin-operated amusement and vending machines. This paragraph
5is exempt from the provisions of Section 3-55.
6    (24) Beginning on the effective date of this amendatory Act
7of the 92nd General Assembly, computers and communications
8equipment utilized for any hospital purpose and equipment used
9in the diagnosis, analysis, or treatment of hospital patients
10sold to a lessor who leases the equipment, under a lease of one
11year or longer executed or in effect at the time of the
12purchase, to a hospital that has been issued an active tax
13exemption identification number by the Department under
14Section 1g of the Retailers' Occupation Tax Act. This paragraph
15is exempt from the provisions of Section 3-55.
16    (25) Beginning on the effective date of this amendatory Act
17of the 92nd General Assembly, personal property sold to a
18lessor who leases the property, under a lease of one year or
19longer executed or in effect at the time of the purchase, 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. This paragraph is exempt from
23the provisions of Section 3-55.
24    (26) Beginning on January 1, 2002 and through June 30,
252011, tangible personal property purchased from an Illinois
26retailer by a taxpayer engaged in centralized purchasing

 

 

09700SB1566sam001- 41 -LRB097 05492 HLH 51849 a

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

 

 

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1exempt from the provisions of Section 3-55.
2    (28) Tangible personal property sold to a
3public-facilities corporation, as described in Section
411-65-10 of the Illinois Municipal Code, for purposes of
5constructing or furnishing a municipal convention hall, but
6only if the legal title to the municipal convention hall is
7transferred to the municipality without any further
8consideration by or on behalf of the municipality at the time
9of the completion of the municipal convention hall or upon the
10retirement or redemption of any bonds or other debt instruments
11issued by the public-facilities corporation in connection with
12the development of the municipal convention hall. This
13exemption includes existing public-facilities corporations as
14provided in Section 11-65-25 of the Illinois Municipal Code.
15This paragraph is exempt from the provisions of Section 3-55.
16    (29) Beginning January 1, 2010, materials, parts,
17equipment, components, and furnishings incorporated into or
18upon an aircraft as part of the modification, refurbishment,
19completion, replacement, repair, or maintenance of the
20aircraft. This exemption includes consumable supplies used in
21the modification, refurbishment, completion, replacement,
22repair, and maintenance of aircraft, but excludes any
23materials, parts, equipment, components, and consumable
24supplies used in the modification, replacement, repair, and
25maintenance of aircraft engines or power plants, whether such
26engines or power plants are installed or uninstalled upon any

 

 

09700SB1566sam001- 43 -LRB097 05492 HLH 51849 a

1such aircraft. "Consumable supplies" include, but are not
2limited to, adhesive, tape, sandpaper, general purpose
3lubricants, cleaning solution, latex gloves, and protective
4films. This exemption applies only to those organizations that
5(i) hold an Air Agency Certificate and are empowered to operate
6an approved repair station by the Federal Aviation
7Administration, (ii) have a Class IV Rating, or and (iii)
8perform aircraft maintenance under an FAA valid Airframe &
9Powerplant license or an FAA accredited Inspection
10Authorization conduct operations in accordance with Part 145 of
11the Federal Aviation Regulations. The exemption does not
12include aircraft operated by a commercial air carrier providing
13scheduled passenger air service pursuant to authority issued
14under Part 121 or Part 129 of the Federal Aviation Regulations.
15(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
16eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1796-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
187-2-10.)
 
19    Section 20. The Retailers' Occupation Tax Act is amended by
20changing Section 2-5 as follows:
 
21    (35 ILCS 120/2-5)
22    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
23sale of the following tangible personal property are exempt
24from the tax imposed by this Act:

 

 

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

 

 

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1software, global positioning and mapping systems, and other
2such equipment.
3    Farm machinery and equipment also includes computers,
4sensors, software, and related equipment used primarily in the
5computer-assisted operation of production agriculture
6facilities, equipment, and activities such as, but not limited
7to, the collection, monitoring, and correlation of animal and
8crop data for the purpose of formulating animal diets and
9agricultural chemicals. This item (7) is exempt from the
10provisions of Section 2-70.
11    (3) Until July 1, 2003, distillation machinery and
12equipment, sold as a unit or kit, assembled or installed by the
13retailer, certified by the user to be used only for the
14production of ethyl alcohol that will be used for consumption
15as motor fuel or as a component of motor fuel for the personal
16use of the user, and not subject to sale or resale.
17    (4) Until July 1, 2003 and beginning again 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    (5) A motor vehicle of the first division, a motor vehicle

 

 

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1of the second division that is a self contained motor vehicle
2designed or permanently converted to provide living quarters
3for recreational, camping, or travel use, with direct walk
4through access to the living quarters from the driver's seat,
5or a motor vehicle of the second division that is of the van
6configuration designed for the transportation of not less than
77 nor more than 16 passengers, as defined in Section 1-146 of
8the Illinois Vehicle Code, that is used for automobile renting,
9as defined in the Automobile Renting Occupation and Use Tax
10Act. This paragraph is exempt from the provisions of Section
112-70.
12    (6) Personal property sold by a teacher-sponsored student
13organization affiliated with an elementary or secondary school
14located in Illinois.
15    (7) Until July 1, 2003, proceeds of that portion of the
16selling price of a passenger car the sale of which is subject
17to the Replacement Vehicle Tax.
18    (8) Personal property sold to an Illinois county fair
19association for use in conducting, operating, or promoting the
20county fair.
21    (9) Personal property sold to a not-for-profit arts or
22cultural organization that establishes, by proof required by
23the Department by rule, that it has received an exemption under
24Section 501(c)(3) of the Internal Revenue Code and that is
25organized and operated primarily for the presentation or
26support of arts or cultural programming, activities, or

 

 

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1services. These organizations include, but are not limited to,
2music and dramatic arts organizations such as symphony
3orchestras and theatrical groups, arts and cultural service
4organizations, local arts councils, visual arts organizations,
5and media arts organizations. On and after the effective date
6of this amendatory Act of the 92nd General Assembly, however,
7an entity otherwise eligible for this exemption shall not make
8tax-free purchases unless it has an active identification
9number issued by the Department.
10    (10) Personal property sold by a corporation, society,
11association, foundation, institution, or organization, other
12than a limited liability company, that is organized and
13operated as a not-for-profit service enterprise for the benefit
14of persons 65 years of age or older if the personal property
15was not purchased by the enterprise for the purpose of resale
16by the enterprise.
17    (11) Personal property sold to a governmental body, to a
18corporation, society, association, foundation, or institution
19organized and operated exclusively for charitable, religious,
20or educational purposes, or to a not-for-profit corporation,
21society, association, foundation, institution, or organization
22that has no compensated officers or employees and that is
23organized and operated primarily for the recreation of persons
2455 years of age or older. A limited liability company may
25qualify for the exemption under this paragraph only if the
26limited liability company is organized and operated

 

 

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1exclusively for educational purposes. On and after July 1,
21987, however, no entity otherwise eligible for this exemption
3shall make tax-free purchases unless it has an active
4identification number issued by the Department.
5    (12) Tangible personal property sold to interstate
6carriers for hire for use as rolling stock moving in interstate
7commerce or to lessors under leases of one year or longer
8executed or in effect at the time of purchase by interstate
9carriers for hire for use as rolling stock moving in interstate
10commerce and equipment operated by a telecommunications
11provider, licensed as a common carrier by the Federal
12Communications Commission, which is permanently installed in
13or affixed to aircraft moving in interstate commerce.
14    (12-5) On and after July 1, 2003 and through June 30, 2004,
15motor vehicles of the second division with a gross vehicle
16weight in excess of 8,000 pounds that are subject to the
17commercial distribution fee imposed under Section 3-815.1 of
18the Illinois Vehicle Code. Beginning on July 1, 2004 and
19through June 30, 2005, the use in this State of motor vehicles
20of the second division: (i) with a gross vehicle weight rating
21in excess of 8,000 pounds; (ii) that are subject to the
22commercial distribution fee imposed under Section 3-815.1 of
23the Illinois Vehicle Code; and (iii) that are primarily used
24for commercial purposes. Through June 30, 2005, this exemption
25applies to repair and replacement parts added after the initial
26purchase of such a motor vehicle if that motor vehicle is used

 

 

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1in a manner that would qualify for the rolling stock exemption
2otherwise provided for in this Act. For purposes of this
3paragraph, "used for commercial purposes" means the
4transportation of persons or property in furtherance of any
5commercial or industrial enterprise whether for-hire or not.
6    (13) Proceeds from sales to owners, lessors, or shippers of
7tangible personal property that is utilized by interstate
8carriers for hire for use as rolling stock moving in interstate
9commerce and equipment operated by a telecommunications
10provider, licensed as a common carrier by the Federal
11Communications Commission, which is permanently installed in
12or affixed to aircraft moving in interstate commerce.
13    (14) Machinery and equipment that will be used by the
14purchaser, or a lessee of the purchaser, primarily in the
15process of manufacturing or assembling tangible personal
16property for wholesale or retail sale or lease, whether the
17sale or lease is made directly by the manufacturer or by some
18other person, whether the materials used in the process are
19owned by the manufacturer or some other person, or whether the
20sale or lease is made apart from or as an incident to the
21seller's engaging in the service occupation of producing
22machines, tools, dies, jigs, patterns, gauges, or other similar
23items of no commercial value on special order for a particular
24purchaser.
25    (15) Proceeds of mandatory service charges separately
26stated on customers' bills for purchase and consumption of food

 

 

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1and beverages, to the extent that the proceeds of the service
2charge are in fact turned over as tips or as a substitute for
3tips to the employees who participate directly in preparing,
4serving, hosting or cleaning up the food or beverage function
5with respect to which the service charge is imposed.
6    (16) Petroleum products sold to a purchaser if the seller
7is prohibited by federal law from charging tax to the
8purchaser.
9    (17) Tangible personal property sold to a common carrier by
10rail or motor that receives the physical possession of the
11property in Illinois and that transports the property, or
12shares with another common carrier in the transportation of the
13property, out of Illinois on a standard uniform bill of lading
14showing the seller of the property as the shipper or consignor
15of the property to a destination outside Illinois, for use
16outside Illinois.
17    (18) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (19) Until July 1 2003, oil field exploration, drilling,
22and production equipment, including (i) rigs and parts of rigs,
23rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
24tubular goods, including casing and drill strings, (iii) pumps
25and pump-jack units, (iv) storage tanks and flow lines, (v) any
26individual replacement part for oil field exploration,

 

 

09700SB1566sam001- 51 -LRB097 05492 HLH 51849 a

1drilling, and production equipment, and (vi) machinery and
2equipment purchased for lease; but excluding motor vehicles
3required to be registered under the Illinois Vehicle Code.
4    (20) Photoprocessing machinery and equipment, including
5repair and replacement parts, both new and used, including that
6manufactured on special order, certified by the purchaser to be
7used primarily for photoprocessing, and including
8photoprocessing machinery and equipment purchased for lease.
9    (21) Until July 1, 2003, coal exploration, mining,
10offhighway hauling, processing, maintenance, and reclamation
11equipment, including replacement parts and equipment, and
12including equipment purchased for lease, but excluding motor
13vehicles required to be registered under the Illinois Vehicle
14Code.
15    (22) Fuel and petroleum products sold to or used by an air
16carrier, certified by the carrier to be used for consumption,
17shipment, or storage in the conduct of its business as an air
18common carrier, for a flight destined for or returning from a
19location or locations outside the United States without regard
20to previous or subsequent domestic stopovers.
21    (23) A transaction in which the purchase order is received
22by a florist who is located outside Illinois, but who has a
23florist located in Illinois deliver the property to the
24purchaser or the purchaser's donee in Illinois.
25    (24) Fuel consumed or used in the operation of ships,
26barges, or vessels that are used primarily in or for the

 

 

09700SB1566sam001- 52 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 53 -LRB097 05492 HLH 51849 a

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

 

 

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

 

 

09700SB1566sam001- 55 -LRB097 05492 HLH 51849 a

1for direct agricultural production.
2    (27) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (27) is exempt from the provisions
8of Section 2-70, and the exemption provided for under this item
9(27) applies for all periods beginning May 30, 1995, but no
10claim for credit or refund is allowed on or after January 1,
112008 (the effective date of Public Act 95-88) for such taxes
12paid during the period beginning May 30, 2000 and ending on
13January 1, 2008 (the effective date of Public Act 95-88).
14    (28) Computers and communications equipment utilized for
15any hospital purpose and equipment used in the diagnosis,
16analysis, or treatment of hospital patients sold to a lessor
17who leases the equipment, under a lease of one year or longer
18executed or in effect at the time of the purchase, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21this Act.
22    (29) Personal property sold to a lessor who leases the
23property, under a lease of one year or longer executed or in
24effect at the time of the purchase, to a governmental body that
25has been issued an active tax exemption identification number
26by the Department under Section 1g of this Act.

 

 

09700SB1566sam001- 56 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 57 -LRB097 05492 HLH 51849 a

1Department of Natural Resources. This paragraph is exempt from
2the provisions of Section 2-70.
3    (33) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the Department
7to be organized and operated exclusively for educational
8purposes. For purposes of this exemption, "a corporation,
9limited liability company, society, association, foundation,
10or institution organized and operated exclusively for
11educational purposes" means all tax-supported public schools,
12private schools that offer systematic instruction in useful
13branches of learning by methods common to public schools and
14that compare favorably in their scope and intensity with the
15course of study presented in tax-supported schools, and
16vocational or technical schools or institutes organized and
17operated exclusively to provide a course of study of not less
18than 6 weeks duration and designed to prepare individuals to
19follow a trade or to pursue a manual, technical, mechanical,
20industrial, business, or commercial occupation.
21    (34) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

 

 

09700SB1566sam001- 58 -LRB097 05492 HLH 51849 a

1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 2-70.
9    (35) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and other
12items, and replacement parts for these machines. Beginning
13January 1, 2002 and through June 30, 2003, machines and parts
14for machines used in commercial, coin-operated amusement and
15vending business if a use or occupation tax is paid on the
16gross receipts derived from the use of the commercial,
17coin-operated amusement and vending machines. This paragraph
18is exempt from the provisions of Section 2-70.
19    (35-5) Beginning August 23, 2001 and through June 30, 2011,
20food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages, soft
22drinks, and food that has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances, and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, when purchased for use by a person receiving medical

 

 

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1assistance under Article V of the Illinois Public Aid Code who
2resides in a licensed long-term care facility, as defined in
3the Nursing Home Care Act, or a licensed facility as defined in
4the MR/DD Community Care Act.
5    (36) Beginning August 2, 2001, computers and
6communications equipment utilized for any hospital purpose and
7equipment used in the diagnosis, analysis, or treatment of
8hospital patients sold to a lessor who leases the equipment,
9under a lease of one year or longer executed or in effect at
10the time of the purchase, to a hospital that has been issued an
11active tax exemption identification number by the Department
12under Section 1g of this Act. This paragraph is exempt from the
13provisions of Section 2-70.
14    (37) Beginning August 2, 2001, personal property sold to a
15lessor who leases the property, under a lease of one year or
16longer executed or in effect at the time of the purchase, to a
17governmental body that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19this Act. This paragraph is exempt from the provisions of
20Section 2-70.
21    (38) Beginning on January 1, 2002 and through June 30,
222011, tangible personal property purchased from an Illinois
23retailer by a taxpayer engaged in centralized purchasing
24activities in Illinois who will, upon receipt of the property
25in Illinois, temporarily store the property in Illinois (i) for
26the purpose of subsequently transporting it outside this State

 

 

09700SB1566sam001- 60 -LRB097 05492 HLH 51849 a

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

 

 

09700SB1566sam001- 61 -LRB097 05492 HLH 51849 a

1upon an aircraft as part of the modification, refurbishment,
2completion, replacement, repair, or maintenance of the
3aircraft. This exemption includes consumable supplies used in
4the modification, refurbishment, completion, replacement,
5repair, and maintenance of aircraft, but excludes any
6materials, parts, equipment, components, and consumable
7supplies used in the modification, replacement, repair, and
8maintenance of aircraft engines or power plants, whether such
9engines or power plants are installed or uninstalled upon any
10such aircraft. "Consumable supplies" include, but are not
11limited to, adhesive, tape, sandpaper, general purpose
12lubricants, cleaning solution, latex gloves, and protective
13films. This exemption applies only to those organizations that
14(i) hold an Air Agency Certificate and are empowered to operate
15an approved repair station by the Federal Aviation
16Administration, (ii) have a Class IV Rating, or and (iii)
17perform aircraft maintenance under an FAA valid Airframe &
18Powerplant license or an FAA accredited Inspection
19Authorization conduct operations in accordance with Part 145 of
20the Federal Aviation Regulations. The exemption does not
21include aircraft operated by a commercial air carrier providing
22scheduled passenger air service pursuant to authority issued
23under Part 121 or Part 129 of the Federal Aviation Regulations.
24    (41) Tangible personal property sold to a
25public-facilities corporation, as described in Section
2611-65-10 of the Illinois Municipal Code, for purposes of

 

 

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1constructing or furnishing a municipal convention hall, but
2only if the legal title to the municipal convention hall is
3transferred to the municipality without any further
4consideration by or on behalf of the municipality at the time
5of the completion of the municipal convention hall or upon the
6retirement or redemption of any bonds or other debt instruments
7issued by the public-facilities corporation in connection with
8the development of the municipal convention hall. This
9exemption includes existing public-facilities corporations as
10provided in Section 11-65-25 of the Illinois Municipal Code.
11This paragraph is exempt from the provisions of Section 2-70.
12(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
13eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;
1495-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
157-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
16eff. 7-2-10.)".