98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2672

 

Introduced 1/21/2014, by Sen. Michael W. Frerichs

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning July 1, 2014, child-sized and adult diapers are exempt from taxation under the Acts. Excludes that exemption from the Acts' automatic sunset provisions. Effective immediately.


LRB098 14576 HLH 49359 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2672LRB098 14576 HLH 49359 b

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

 

 

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

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23    (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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

 

 

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6    (12) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the conduct
9of its business as an air common carrier, for a flight destined
10for or returning from a location or locations outside the
11United States without regard to previous or subsequent domestic
12stopovers.
13    Beginning July 1, 2013, fuel and petroleum products sold to
14or used by an air carrier, certified by the carrier to be used
15for consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports at
19least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23    (13) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages purchased at retail from a retailer, to the
26extent that the proceeds of the service charge are in fact

 

 

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1turned over as tips or as a substitute for tips to the
2employees who participate directly in preparing, serving,
3hosting or cleaning up the food or beverage function with
4respect to which the service charge is imposed.
5    (14) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of rigs,
7rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
8tubular goods, including casing and drill strings, (iii) pumps
9and pump-jack units, (iv) storage tanks and flow lines, (v) any
10individual replacement part for oil field exploration,
11drilling, and production equipment, and (vi) machinery and
12equipment purchased for lease; but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code.
14    (15) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including that
16manufactured on special order, certified by the purchaser to be
17used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19    (16) Coal and aggregate exploration, mining, off-highway
20offhighway hauling, processing, maintenance, and reclamation
21equipment, including replacement parts and equipment, and
22including equipment purchased for lease, but excluding motor
23vehicles required to be registered under the Illinois Vehicle
24Code. The changes made to this Section by Public Act 97-767
25apply on and after July 1, 2003, but no claim for credit or
26refund is allowed on or after August 16, 2013 (the effective

 

 

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1date of Public Act 98-456) this amendatory Act of the 98th
2General Assembly for such taxes paid during the period
3beginning July 1, 2003 and ending on August 16, 2013 (the
4effective date of Public Act 98-456) this amendatory Act of the
598th General Assembly.
6    (17) Until July 1, 2003, distillation machinery and
7equipment, sold as a unit or kit, assembled or installed by the
8retailer, certified by the user to be used only for the
9production of ethyl alcohol that will be used for consumption
10as motor fuel or as a component of motor fuel for the personal
11use of the user, and not subject to sale or resale.
12    (18) Manufacturing and assembling machinery and equipment
13used primarily in the process of manufacturing or assembling
14tangible personal property for wholesale or retail sale or
15lease, whether that sale or lease is made directly by the
16manufacturer or by some other person, whether the materials
17used in the process are owned by the manufacturer or some other
18person, or whether that sale or lease is made apart from or as
19an incident to the seller's engaging in the service occupation
20of producing machines, tools, dies, jigs, patterns, gauges, or
21other similar items of no commercial value on special order for
22a particular purchaser. The exemption provided by this
23paragraph (18) does not include machinery and equipment used in
24(i) the generation of electricity for wholesale or retail sale;
25(ii) the generation or treatment of natural or artificial gas
26for wholesale or retail sale that is delivered to customers

 

 

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1through pipes, pipelines, or mains; or (iii) the treatment of
2water for wholesale or retail sale that is delivered to
3customers through pipes, pipelines, or mains. The provisions of
4Public Act 98-583 this amendatory Act of the 98th General
5Assembly are declaratory of existing law as to the meaning and
6scope of this exemption.
7    (19) Personal property delivered to a purchaser or
8purchaser's donee inside Illinois when the purchase order for
9that personal property was received by a florist located
10outside Illinois who has a florist located inside Illinois
11deliver the personal property.
12    (20) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (21) 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 (21) is exempt from the provisions
20of Section 3-90, and the exemption provided for under this item
21(21) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after January 1,
232008 for such taxes paid during the period beginning May 30,
242000 and ending on January 1, 2008.
25    (22) Computers and communications equipment utilized for
26any hospital purpose and equipment used in the diagnosis,

 

 

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

 

 

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1the Department under Section 1g of the Retailers' Occupation
2Tax Act. If the property is leased in a manner that does not
3qualify for this exemption or used in any other non-exempt
4manner, the lessor shall be liable for the tax imposed under
5this Act or the Service Use Tax Act, as the case may be, based
6on the fair 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
10Service Use Tax Act, as the case may be, if the tax has not been
11paid by the lessor. If a lessor improperly collects any such
12amount from the lessee, the lessee shall have a legal right to
13claim a refund of that amount from the lessor. If, however,
14that amount is not refunded to the lessee for any reason, the
15lessor is liable to pay that amount to the Department.
16    (24) 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    (25) 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    (26) Beginning July 1, 1999, game or game birds purchased
13at a "game breeding and hunting preserve area" as that term is
14used in the Wildlife Code. This paragraph is exempt from the
15provisions of Section 3-90.
16    (27) 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

 

 

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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    (28) 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 3-90.
22    (29) 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

 

 

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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 3-90.
6    (30) Beginning January 1, 2001 and through June 30, 2016,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages, soft
9drinks, and food that has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the ID/DD Community Care Act or the Specialized Mental
18Health Rehabilitation Act of 2013.
19    (31) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, computers and communications
21equipment utilized for any hospital purpose and equipment used
22in the diagnosis, analysis, or treatment of hospital patients
23purchased by a lessor who leases the equipment, under a lease
24of one year or longer executed or in effect at the time the
25lessor would otherwise be subject to the tax imposed by this
26Act, to a hospital that has been issued an active tax exemption

 

 

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1identification number by the Department under Section 1g of the
2Retailers' Occupation Tax Act. If the equipment is leased in a
3manner that does not qualify for this exemption or is used in
4any other nonexempt manner, the lessor shall be liable for the
5tax imposed under this Act or the Service Use Tax Act, as the
6case may be, based on the fair market value of the property at
7the time the nonqualifying use occurs. No lessor shall collect
8or attempt to collect an amount (however designated) that
9purports to reimburse that lessor for the tax imposed by this
10Act or the Service Use Tax Act, as the case may be, if the tax
11has not been paid by the lessor. If a lessor improperly
12collects any such amount from the lessee, the lessee shall have
13a legal right to claim a refund of that amount from the lessor.
14If, however, that amount is not refunded to the lessee for any
15reason, the lessor is liable to pay that amount to the
16Department. This paragraph is exempt from the provisions of
17Section 3-90.
18    (32) 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 sales tax
24exemption identification number by the Department under
25Section 1g of the Retailers' Occupation Tax Act. If the
26property is leased in a manner that does not qualify for this

 

 

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1exemption or used in any other nonexempt manner, the lessor
2shall be liable for the tax imposed under this Act or the
3Service Use Tax Act, as the case may be, based on the fair
4market value of the property at the time the nonqualifying use
5occurs. No lessor shall collect or attempt to collect an amount
6(however designated) that purports to reimburse that lessor for
7the tax imposed by this Act or the Service Use Tax Act, as the
8case may be, if the tax has not been paid by the lessor. If a
9lessor improperly collects any such amount from the lessee, the
10lessee shall have a legal right to claim a refund of that
11amount from the lessor. If, however, that amount is not
12refunded to the lessee for any reason, the lessor is liable to
13pay that amount to the Department. This paragraph is exempt
14from the provisions of Section 3-90.
15    (33) On and after July 1, 2003 and through June 30, 2004,
16the use in this State of motor vehicles of the second division
17with a gross vehicle weight in excess of 8,000 pounds and that
18are subject to the commercial distribution fee imposed under
19Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
201, 2004 and through June 30, 2005, the use in this State of
21motor vehicles of the second division: (i) with a gross vehicle
22weight rating in excess of 8,000 pounds; (ii) that are subject
23to the commercial distribution fee imposed under Section
243-815.1 of the Illinois Vehicle Code; and (iii) that are
25primarily used for commercial purposes. Through June 30, 2005,
26this exemption applies to repair and replacement parts added

 

 

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1after the initial purchase of such a motor vehicle if that
2motor vehicle is used in a manner that would qualify for the
3rolling stock exemption otherwise provided for in this Act. For
4purposes of this paragraph, the term "used for commercial
5purposes" means the transportation of persons or property in
6furtherance of any commercial or industrial enterprise,
7whether for-hire or not.
8    (34) Beginning January 1, 2008, tangible personal property
9used in the construction or maintenance of a community water
10supply, as defined under Section 3.145 of the Environmental
11Protection Act, that is operated by a not-for-profit
12corporation that holds a valid water supply permit issued under
13Title IV of the Environmental Protection Act. This paragraph is
14exempt from the provisions of Section 3-90.
15    (35) Beginning January 1, 2010, materials, parts,
16equipment, components, and furnishings incorporated into or
17upon an aircraft as part of the modification, refurbishment,
18completion, replacement, repair, or maintenance of the
19aircraft. This exemption includes consumable supplies used in
20the modification, refurbishment, completion, replacement,
21repair, and maintenance of aircraft, but excludes any
22materials, parts, equipment, components, and consumable
23supplies used in the modification, replacement, repair, and
24maintenance of aircraft engines or power plants, whether such
25engines or power plants are installed or uninstalled upon any
26such aircraft. "Consumable supplies" include, but are not

 

 

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1limited to, adhesive, tape, sandpaper, general purpose
2lubricants, cleaning solution, latex gloves, and protective
3films. This exemption applies only to the use of qualifying
4tangible personal property by persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations. The exemption does not include aircraft operated
11by a commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part 129
13of the Federal Aviation Regulations. The changes made to this
14paragraph (35) by Public Act 98-534 this amendatory Act of the
1598th General Assembly are declarative of existing law.
16    (36) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

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1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 3-90.
4    (37) Beginning July 1, 2014, child-sized and adult diapers.
5This paragraph is exempt from the provisions of Section 3-90.
6(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431,
7eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104,
8eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13;
998-534, eff. 8-23-13; 98-574, eff. 1-1-14; 98-583, eff. 1-1-14;
10revised 9-9-13.)
 
11    Section 10. The Service Use Tax Act is amended by changing
12Section 3-5 as follows:
 
13    (35 ILCS 110/3-5)
14    Sec. 3-5. Exemptions. Use of the following tangible
15personal property is exempt from the tax imposed by this Act:
16    (1) Personal property purchased from a corporation,
17society, association, foundation, institution, or
18organization, other than a limited liability company, that is
19organized and operated as a not-for-profit service enterprise
20for the benefit of persons 65 years of age or older if the
21personal property was not purchased by the enterprise for the
22purpose of resale by the enterprise.
23    (2) Personal property purchased by a non-profit Illinois
24county fair association for use in conducting, operating, or

 

 

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1promoting the county fair.
2    (3) Personal property purchased by a not-for-profit arts or
3cultural organization that establishes, by proof required by
4the Department by rule, that it has received an exemption under
5Section 501(c)(3) of the Internal Revenue Code and that is
6organized and operated primarily for the presentation or
7support of arts or cultural programming, activities, or
8services. These organizations include, but are not limited to,
9music and dramatic arts organizations such as symphony
10orchestras and theatrical groups, arts and cultural service
11organizations, local arts councils, visual arts organizations,
12and media arts organizations. On and after the effective date
13of this amendatory Act of the 92nd General Assembly, however,
14an entity otherwise eligible for this exemption shall not make
15tax-free purchases unless it has an active identification
16number issued by the Department.
17    (4) 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    (5) Until July 1, 2003 and beginning again on September 1,
222004 through August 30, 2014, graphic arts machinery and
23equipment, including repair and replacement parts, both new and
24used, and including that manufactured on special order or
25purchased for lease, certified by the purchaser to be used
26primarily for graphic arts production. Equipment includes

 

 

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

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (7) is exempt from the
15provisions of Section 3-75.
16    (8) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air common carrier, certified by the carrier
18to be used for consumption, shipment, or storage in the conduct
19of its business as an air common carrier, for a flight destined
20for or returning from a location or locations outside the
21United States without regard to previous or subsequent domestic
22stopovers.
23    Beginning July 1, 2013, fuel and petroleum products sold to
24or used by an air carrier, certified by the carrier to be used
25for consumption, shipment, or storage in the conduct of its
26business as an air common carrier, for a flight that (i) is

 

 

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1engaged in foreign trade or is engaged in trade between the
2United States and any of its possessions and (ii) transports at
3least one individual or package for hire from the city of
4origination to the city of final destination on the same
5aircraft, without regard to a change in the flight number of
6that aircraft.
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) Coal and aggregate exploration, mining, off-highway
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. The changes made to this Section by Public Act 97-767
11apply on and after July 1, 2003, but no claim for credit or
12refund is allowed on or after August 16, 2013 (the effective
13date of Public Act 98-456) this amendatory Act of the 98th
14General Assembly for such taxes paid during the period
15beginning July 1, 2003 and ending on August 16, 2013 (the
16effective date of Public Act 98-456) this amendatory Act of the
1798th General Assembly.
18    (13) Semen used for artificial insemination of livestock
19for direct agricultural production.
20    (14) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (14) is exempt from the provisions
26of Section 3-75, and the exemption provided for under this item

 

 

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1(14) applies for all periods beginning May 30, 1995, but no
2claim for credit or refund is allowed on or after the effective
3date of this amendatory Act of the 95th General Assembly for
4such taxes paid during the period beginning May 30, 2000 and
5ending on the effective date of this amendatory Act of the 95th
6General Assembly.
7    (15) Computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients purchased by a
10lessor who leases the equipment, under a lease of one year or
11longer executed or in effect at the time the lessor would
12otherwise be subject to the tax imposed by this Act, to a
13hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of the
15Retailers' Occupation Tax Act. If the equipment is leased in a
16manner that does not qualify for this exemption or is used in
17any other non-exempt manner, the lessor shall be liable for the
18tax imposed under this Act or the Use Tax Act, as the case may
19be, based on the fair market value of the property at the time
20the non-qualifying use occurs. No lessor shall collect or
21attempt to collect an amount (however designated) that purports
22to reimburse that lessor for the tax imposed by this Act or the
23Use Tax Act, as the case may be, if the tax has not been paid by
24the lessor. If a lessor improperly collects any such amount
25from the lessee, the lessee shall have a legal right to claim a
26refund of that amount from the lessor. If, however, that amount

 

 

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

 

 

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1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (18) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in the
10performance of infrastructure repairs in this State, including
11but not limited to municipal roads and streets, access roads,
12bridges, sidewalks, waste disposal systems, water and sewer
13line extensions, water distribution and purification
14facilities, storm water drainage and retention facilities, and
15sewage treatment facilities, resulting from a State or
16federally declared disaster in Illinois or bordering Illinois
17when such repairs are initiated on facilities located in the
18declared disaster area within 6 months after the disaster.
19    (19) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" as that term is
21used in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-75.
23    (20) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the Department

 

 

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

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-75.
3    (22) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and other
6items, and replacement parts for these machines. Beginning
7January 1, 2002 and through June 30, 2003, machines and parts
8for machines used in commercial, coin-operated amusement and
9vending business if a use or occupation tax is paid on the
10gross receipts derived from the use of the commercial,
11coin-operated amusement and vending machines. This paragraph
12is exempt from the provisions of Section 3-75.
13    (23) Beginning August 23, 2001 and through June 30, 2016,
14food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages, soft
16drinks, and food that has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances, and insulin, urine testing
19materials, syringes, and needles used by diabetics, for human
20use, when purchased for use by a person receiving medical
21assistance under Article V of the Illinois Public Aid Code who
22resides in a licensed long-term care facility, as defined in
23the Nursing Home Care Act, or in a licensed facility as defined
24in the ID/DD Community Care Act or the Specialized Mental
25Health Rehabilitation Act of 2013.
26    (24) Beginning on the effective date of this amendatory Act

 

 

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

 

 

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1longer executed or in effect at the time the lessor would
2otherwise be subject to the tax imposed by this Act, to a
3governmental body that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. If the property is leased in a
6manner that does not qualify for this exemption or is used in
7any other nonexempt manner, the lessor shall be liable for the
8tax imposed under this Act or the Use Tax Act, as the case may
9be, based on the fair market value of the property at the time
10the nonqualifying use occurs. No lessor shall collect or
11attempt to collect an amount (however designated) that purports
12to reimburse that lessor for the tax imposed by this Act or the
13Use Tax Act, as the case may be, if the tax has not been paid by
14the lessor. If a lessor improperly collects any such amount
15from the lessee, the lessee shall have a legal right to claim a
16refund of that amount from the lessor. If, however, that amount
17is not refunded to the lessee for any reason, the lessor is
18liable to pay that amount to the Department. This paragraph is
19exempt from the provisions of Section 3-75.
20    (26) Beginning January 1, 2008, tangible personal property
21used in the construction or maintenance of a community water
22supply, as defined under Section 3.145 of the Environmental
23Protection Act, that is operated by a not-for-profit
24corporation that holds a valid water supply permit issued under
25Title IV of the Environmental Protection Act. This paragraph is
26exempt from the provisions of Section 3-75.

 

 

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

 

 

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1paragraph (27) by Public Act 98-534 this amendatory Act of the
298th General Assembly are declarative of existing law.
3    (28) 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 3-75.
17    (29) Beginning July 1, 2014, child-sized and adult diapers.
18This paragraph is exempt from the provisions of Section 3-75.
19(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431,
20eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104,
21eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13;
2298-534, eff. 8-23-13; revised 9-9-13.)
 
23    Section 15. The Service Occupation Tax Act is amended by
24changing Section 3-5 as follows:
 

 

 

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1    (35 ILCS 115/3-5)
2    Sec. 3-5. Exemptions. The following tangible personal
3property is exempt from the tax imposed by this Act:
4    (1) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the benefit
8of persons 65 years of age or older if the personal property
9was not purchased by the enterprise for the purpose of resale
10by the enterprise.
11    (2) Personal property purchased by a not-for-profit
12Illinois county fair association for use in conducting,
13operating, or promoting the county fair.
14    (3) Personal property purchased by any not-for-profit arts
15or cultural organization that establishes, by proof required by
16the Department by rule, that it has received an exemption under
17Section 501(c)(3) of the Internal Revenue Code and that is
18organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after the effective date
25of this amendatory Act of the 92nd General Assembly, however,
26an entity otherwise eligible for this exemption shall not make

 

 

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1tax-free purchases unless it has an active identification
2number issued by the Department.
3    (4) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7    (5) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new and
10used, and including that manufactured on special order or
11purchased for lease, certified by the purchaser to be used
12primarily for graphic arts production. Equipment includes
13chemicals or chemicals acting as catalysts but only if the
14chemicals or chemicals acting as catalysts effect a direct and
15immediate change upon a graphic arts product.
16    (6) Personal property sold by a teacher-sponsored student
17organization affiliated with an elementary or secondary school
18located in Illinois.
19    (7) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

 

 

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

 

 

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1provisions of Section 3-55.
2    (8) Until June 30, 2013, fuel and petroleum products sold
3to or used by an air common carrier, certified by the carrier
4to be used for consumption, shipment, or storage in the conduct
5of its business as an air common carrier, for a flight destined
6for or returning from a location or locations outside the
7United States without regard to previous or subsequent domestic
8stopovers.
9    Beginning July 1, 2013, fuel and petroleum products sold to
10or used by an air carrier, certified by the carrier to be used
11for consumption, shipment, or storage in the conduct of its
12business as an air common carrier, for a flight that (i) is
13engaged in foreign trade or is engaged in trade between the
14United States and any of its possessions and (ii) transports at
15least one individual or package for hire from the city of
16origination to the city of final destination on the same
17aircraft, without regard to a change in the flight number of
18that aircraft.
19    (9) Proceeds of mandatory service charges separately
20stated on customers' bills for the purchase and consumption of
21food and beverages, to the extent that the proceeds of the
22service charge are in fact turned over as tips or as a
23substitute for tips to the employees who participate directly
24in preparing, serving, hosting or cleaning up the food or
25beverage function with respect to which the service charge is
26imposed.

 

 

SB2672- 37 -LRB098 14576 HLH 49359 b

1    (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of rigs,
3rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
4tubular goods, including casing and drill strings, (iii) pumps
5and pump-jack units, (iv) storage tanks and flow lines, (v) any
6individual replacement part for oil field exploration,
7drilling, and production equipment, and (vi) machinery and
8equipment purchased for lease; but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code.
10    (11) Photoprocessing machinery and equipment, including
11repair and replacement parts, both new and used, including that
12manufactured on special order, certified by the purchaser to be
13used primarily for photoprocessing, and including
14photoprocessing machinery and equipment purchased for lease.
15    (12) Coal and aggregate exploration, mining, off-highway
16offhighway hauling, processing, maintenance, and reclamation
17equipment, including replacement parts and equipment, and
18including equipment purchased for lease, but excluding motor
19vehicles required to be registered under the Illinois Vehicle
20Code. The changes made to this Section by Public Act 97-767
21apply on and after July 1, 2003, but no claim for credit or
22refund is allowed on or after August 16, 2013 (the effective
23date of Public Act 98-456) this amendatory Act of the 98th
24General Assembly for such taxes paid during the period
25beginning July 1, 2003 and ending on August 16, 2013 (the
26effective date of Public Act 98-456) this amendatory Act of the

 

 

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198th General Assembly.
2    (13) Beginning January 1, 1992 and through June 30, 2016,
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks and food that has been prepared for immediate
6consumption) and prescription and non-prescription medicines,
7drugs, medical appliances, and insulin, urine testing
8materials, syringes, and needles used by diabetics, for human
9use, when purchased for use by a person receiving medical
10assistance under Article V of the Illinois Public Aid Code who
11resides in a licensed long-term care facility, as defined in
12the Nursing Home Care Act, or in a licensed facility as defined
13in the ID/DD Community Care Act or the Specialized Mental
14Health Rehabilitation Act of 2013.
15    (14) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (15) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (15) is exempt from the provisions
23of Section 3-55, and the exemption provided for under this item
24(15) applies for all periods beginning May 30, 1995, but no
25claim for credit or refund is allowed on or after January 1,
262008 (the effective date of Public Act 95-88) for such taxes

 

 

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

 

 

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1    (19) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (20) Beginning July 1, 1999, game or game birds sold at a
14"game breeding and hunting preserve area" as that term is used
15in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-55.
17    (21) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

 

 

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1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9    (22) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-55.
23    (23) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

 

 

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1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 3-55.
7    (24) Beginning on the effective date of this amendatory Act
8of the 92nd General Assembly, computers and communications
9equipment utilized for any hospital purpose and equipment used
10in the diagnosis, analysis, or treatment of hospital patients
11sold to a lessor who leases the equipment, under a lease of one
12year or longer executed or in effect at the time of the
13purchase, to a hospital that has been issued an active tax
14exemption identification number by the Department under
15Section 1g of the Retailers' Occupation Tax Act. This paragraph
16is exempt from the provisions of Section 3-55.
17    (25) Beginning on the effective date of this amendatory Act
18of the 92nd General Assembly, personal property sold to a
19lessor who leases the property, under a lease of one year or
20longer executed or in effect at the time of the purchase, to a
21governmental body that has been issued an active tax exemption
22identification number by the Department under Section 1g of the
23Retailers' Occupation Tax Act. This paragraph is exempt from
24the provisions of Section 3-55.
25    (26) Beginning on January 1, 2002 and through June 30,
262016, tangible personal property purchased from an Illinois

 

 

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

 

 

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1Title IV of the Environmental Protection Act. This paragraph is
2exempt from the provisions of Section 3-55.
3    (28) Tangible personal property sold to 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 3-55.
17    (29) Beginning January 1, 2010, materials, parts,
18equipment, components, and furnishings incorporated into or
19upon an aircraft as part of the modification, refurbishment,
20completion, replacement, repair, or maintenance of the
21aircraft. This exemption includes consumable supplies used in
22the modification, refurbishment, completion, replacement,
23repair, and maintenance of aircraft, but excludes any
24materials, parts, equipment, components, and consumable
25supplies used in the modification, replacement, repair, and
26maintenance of aircraft engines or power plants, whether such

 

 

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1engines or power plants are installed or uninstalled upon any
2such aircraft. "Consumable supplies" include, but are not
3limited to, adhesive, tape, sandpaper, general purpose
4lubricants, cleaning solution, latex gloves, and protective
5films. This exemption applies only to the transfer of
6qualifying tangible personal property incident to the
7modification, refurbishment, completion, replacement, repair,
8or maintenance of an aircraft by persons who (i) hold an Air
9Agency Certificate and are empowered to operate an approved
10repair station by the Federal Aviation Administration, (ii)
11have a Class IV Rating, and (iii) conduct operations in
12accordance with Part 145 of the Federal Aviation Regulations.
13The exemption does not include aircraft operated by a
14commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part 129
16of the Federal Aviation Regulations. The changes made to this
17paragraph (29) by Public Act 98-534 this amendatory Act of the
1898th General Assembly are declarative of existing law.
19    (30) Beginning July 1, 2014, child-sized and adult diapers.
20This paragraph is exempt from the provisions of Section 3-55.
21(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
22eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
23eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2498-456, eff. 8-16-13; 98-534, eff. 8-23-13; revised 9-9-13.)
 
25    Section 20. The Retailers' Occupation Tax Act is amended by

 

 

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1changing Section 2-5 as follows:
 
2    (35 ILCS 120/2-5)
3    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
4sale of the following tangible personal property are exempt
5from the tax imposed by this Act:
6    (1) Farm chemicals.
7    (2) Farm machinery and equipment, both new and used,
8including that manufactured on special order, certified by the
9purchaser to be used primarily for production agriculture or
10State or federal agricultural programs, including individual
11replacement parts for the machinery and equipment, including
12machinery and equipment purchased for lease, and including
13implements of husbandry defined in Section 1-130 of the
14Illinois Vehicle Code, farm machinery and agricultural
15chemical and fertilizer spreaders, and nurse wagons required to
16be registered under Section 3-809 of the Illinois Vehicle Code,
17but excluding other motor vehicles required to be registered
18under the Illinois Vehicle Code. Horticultural polyhouses or
19hoop houses used for propagating, growing, or overwintering
20plants shall be considered farm machinery and equipment under
21this item (2). Agricultural chemical tender tanks and dry boxes
22shall include units sold separately from a motor vehicle
23required to be licensed and units sold mounted on a motor
24vehicle required to be licensed, if the selling price of the
25tender is separately stated.

 

 

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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 (2) is exempt from the
16provisions of Section 2-70.
17    (3) Until July 1, 2003, distillation machinery and
18equipment, sold as a unit or kit, assembled or installed by the
19retailer, certified by the user to be used only for the
20production of ethyl alcohol that will be used for consumption
21as motor fuel or as a component of motor fuel for the personal
22use of the user, and not subject to sale or resale.
23    (4) Until July 1, 2003 and beginning again September 1,
242004 through August 30, 2014, graphic arts machinery and
25equipment, including repair and replacement parts, both new and
26used, and including that manufactured on special order or

 

 

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1purchased for lease, certified by the purchaser to be used
2primarily for graphic arts production. Equipment includes
3chemicals or chemicals acting as catalysts but only if the
4chemicals or chemicals acting as catalysts effect a direct and
5immediate change upon a graphic arts product.
6    (5) A motor vehicle that is used for automobile renting, as
7defined in the Automobile Renting Occupation and Use Tax Act.
8This paragraph is exempt from the provisions of Section 2-70.
9    (6) Personal property sold by a teacher-sponsored student
10organization affiliated with an elementary or secondary school
11located in Illinois.
12    (7) Until July 1, 2003, proceeds of that portion of the
13selling price of a passenger car the sale of which is subject
14to the Replacement Vehicle Tax.
15    (8) Personal property sold to an Illinois county fair
16association for use in conducting, operating, or promoting the
17county fair.
18    (9) Personal property sold to a not-for-profit arts or
19cultural organization that establishes, by proof required by
20the Department by rule, that it has received an exemption under
21Section 501(c)(3) of the Internal Revenue Code and that is
22organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,
25music and dramatic arts organizations such as symphony
26orchestras and theatrical groups, arts and cultural service

 

 

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1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after the effective date
3of this amendatory Act of the 92nd General Assembly, however,
4an entity otherwise eligible for this exemption shall not make
5tax-free purchases unless it has an active identification
6number issued by the Department.
7    (10) Personal property sold by a corporation, society,
8association, foundation, institution, or organization, other
9than a limited liability company, that is organized and
10operated as a not-for-profit service enterprise for the benefit
11of persons 65 years of age or older if the personal property
12was not purchased by the enterprise for the purpose of resale
13by the enterprise.
14    (11) Personal property sold to a governmental body, to a
15corporation, society, association, foundation, or institution
16organized and operated exclusively for charitable, religious,
17or educational purposes, or to a not-for-profit corporation,
18society, association, foundation, institution, or organization
19that has no compensated officers or employees and that is
20organized and operated primarily for the recreation of persons
2155 years of age or older. A limited liability company may
22qualify for the exemption under this paragraph only if the
23limited liability company is organized and operated
24exclusively for educational purposes. On and after July 1,
251987, however, no entity otherwise eligible for this exemption
26shall make tax-free purchases unless it has an active

 

 

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

 

 

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1transportation of persons or property in furtherance of any
2commercial or industrial enterprise whether for-hire or not.
3    (13) Proceeds from sales to owners, lessors, or shippers of
4tangible personal property that is utilized by interstate
5carriers for hire for use as rolling stock moving in interstate
6commerce and equipment operated by a telecommunications
7provider, licensed as a common carrier by the Federal
8Communications Commission, which is permanently installed in
9or affixed to aircraft moving in interstate commerce.
10    (14) Machinery and equipment that will be used by the
11purchaser, or a lessee of the purchaser, primarily in the
12process of manufacturing or assembling tangible personal
13property for wholesale or retail sale or lease, whether the
14sale or lease is made directly by the manufacturer or by some
15other person, whether the materials used in the process are
16owned by the manufacturer or some other person, or whether the
17sale or lease is made apart from or as an incident to the
18seller's engaging in the service occupation of producing
19machines, tools, dies, jigs, patterns, gauges, or other similar
20items of no commercial value on special order for a particular
21purchaser. The exemption provided by this paragraph (14) does
22not include machinery and equipment used in (i) the generation
23of electricity for wholesale or retail sale; (ii) the
24generation or treatment of natural or artificial gas for
25wholesale or retail sale that is delivered to customers through
26pipes, pipelines, or mains; or (iii) the treatment of water for

 

 

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1wholesale or retail sale that is delivered to customers through
2pipes, pipelines, or mains. The provisions of Public Act 98-583
3this amendatory Act of the 98th General Assembly are
4declaratory of existing law as to the meaning and scope of this
5exemption.
6    (15) Proceeds of mandatory service charges separately
7stated on customers' bills for purchase and consumption of food
8and beverages, to the extent that the proceeds of the service
9charge are in fact turned over as tips or as a substitute for
10tips to the employees who participate directly in preparing,
11serving, hosting or cleaning up the food or beverage function
12with respect to which the service charge is imposed.
13    (16) Petroleum products sold to a purchaser if the seller
14is prohibited by federal law from charging tax to the
15purchaser.
16    (17) Tangible personal property sold to a common carrier by
17rail or motor that receives the physical possession of the
18property in Illinois and that transports the property, or
19shares with another common carrier in the transportation of the
20property, out of Illinois on a standard uniform bill of lading
21showing the seller of the property as the shipper or consignor
22of the property to a destination outside Illinois, for use
23outside Illinois.
24    (18) Legal tender, currency, medallions, or gold or silver
25coinage issued by the State of Illinois, the government of the
26United States of America, or the government of any foreign

 

 

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1country, and bullion.
2    (19) Until July 1 2003, oil field exploration, drilling,
3and production equipment, including (i) rigs and parts of rigs,
4rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
5tubular goods, including casing and drill strings, (iii) pumps
6and pump-jack units, (iv) storage tanks and flow lines, (v) any
7individual replacement part for oil field exploration,
8drilling, and production equipment, and (vi) machinery and
9equipment purchased for lease; but excluding motor vehicles
10required to be registered under the Illinois Vehicle Code.
11    (20) Photoprocessing machinery and equipment, including
12repair and replacement parts, both new and used, including that
13manufactured on special order, certified by the purchaser to be
14used primarily for photoprocessing, and including
15photoprocessing machinery and equipment purchased for lease.
16    (21) Coal and aggregate exploration, mining, off-highway
17offhighway hauling, processing, maintenance, and reclamation
18equipment, including replacement parts and equipment, and
19including equipment purchased for lease, but excluding motor
20vehicles required to be registered under the Illinois Vehicle
21Code. The changes made to this Section by Public Act 97-767
22apply on and after July 1, 2003, but no claim for credit or
23refund is allowed on or after August 16, 2013 (the effective
24date of Public Act 98-456) this amendatory Act of the 98th
25General Assembly for such taxes paid during the period
26beginning July 1, 2003 and ending on August 16, 2013 (the

 

 

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1effective date of Public Act 98-456) this amendatory Act of the
298th General Assembly.
3    (22) Until June 30, 2013, fuel and petroleum products sold
4to or used by an air carrier, certified by the carrier to be
5used for consumption, shipment, or storage in the conduct of
6its business as an air common carrier, for a flight destined
7for or returning from a location or locations outside the
8United States without regard to previous or subsequent domestic
9stopovers.
10    Beginning July 1, 2013, fuel and petroleum products sold to
11or used by an air carrier, certified by the carrier to be used
12for consumption, shipment, or storage in the conduct of its
13business as an air common carrier, for a flight that (i) is
14engaged in foreign trade or is engaged in trade between the
15United States and any of its possessions and (ii) transports at
16least one individual or package for hire from the city of
17origination to the city of final destination on the same
18aircraft, without regard to a change in the flight number of
19that aircraft.
20    (23) A transaction in which the purchase order is received
21by a florist who is located outside Illinois, but who has a
22florist located in Illinois deliver the property to the
23purchaser or the purchaser's donee in Illinois.
24    (24) Fuel consumed or used in the operation of ships,
25barges, or vessels that are used primarily in or for the
26transportation of property or the conveyance of persons for

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is donated for
3disaster relief to be used in a State or federally declared
4disaster area in Illinois or bordering Illinois by a
5manufacturer or retailer that is registered in this State to a
6corporation, society, association, foundation, or institution
7that has been issued a sales tax exemption identification
8number by the Department that assists victims of the disaster
9who reside within the declared disaster area.
10    (31) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is used in the
13performance of infrastructure repairs in this State, including
14but not limited to municipal roads and streets, access roads,
15bridges, sidewalks, waste disposal systems, water and sewer
16line extensions, water distribution and purification
17facilities, storm water drainage and retention facilities, and
18sewage treatment facilities, resulting from a State or
19federally declared disaster in Illinois or bordering Illinois
20when such repairs are initiated on facilities located in the
21declared disaster area within 6 months after the disaster.
22    (32) Beginning July 1, 1999, game or game birds sold at a
23"game breeding and hunting preserve area" as that term is used
24in the Wildlife Code. This paragraph is exempt from the
25provisions of Section 2-70.
26    (33) A motor vehicle, as that term is defined in Section

 

 

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

 

 

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 2-70.
6    (35) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and other
9items, and replacement parts for these machines. Beginning
10January 1, 2002 and through June 30, 2003, machines and parts
11for machines used in commercial, coin-operated amusement and
12vending business if a use or occupation tax is paid on the
13gross receipts derived from the use of the commercial,
14coin-operated amusement and vending machines. This paragraph
15is exempt from the provisions of Section 2-70.
16    (35-5) Beginning August 23, 2001 and through June 30, 2016,
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages, soft
19drinks, and food that has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, when purchased for use by a person receiving medical
24assistance under Article V of the Illinois Public Aid Code who
25resides in a licensed long-term care facility, as defined in
26the Nursing Home Care Act, or a licensed facility as defined in

 

 

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1the ID/DD Community Care Act or the Specialized Mental Health
2Rehabilitation Act of 2013.
3    (36) Beginning August 2, 2001, computers and
4communications equipment utilized for any hospital purpose and
5equipment used in the diagnosis, analysis, or treatment of
6hospital patients sold to a lessor who leases the equipment,
7under a lease of one year or longer executed or in effect at
8the time of the purchase, to a hospital that has been issued an
9active tax exemption identification number by the Department
10under Section 1g of this Act. This paragraph is exempt from the
11provisions of Section 2-70.
12    (37) Beginning August 2, 2001, personal property sold to a
13lessor who leases the property, under a lease of one year or
14longer executed or in effect at the time of the purchase, to a
15governmental body that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17this Act. This paragraph is exempt from the provisions of
18Section 2-70.
19    (38) Beginning on January 1, 2002 and through June 30,
202016, tangible personal property purchased from an Illinois
21retailer by a taxpayer engaged in centralized purchasing
22activities in Illinois who will, upon receipt of the property
23in Illinois, temporarily store the property in Illinois (i) for
24the purpose of subsequently transporting it outside this State
25for use or consumption thereafter solely outside this State or
26(ii) for the purpose of being processed, fabricated, or

 

 

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

 

 

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1aircraft. This exemption includes consumable supplies used in
2the modification, refurbishment, completion, replacement,
3repair, and maintenance of aircraft, but excludes any
4materials, parts, equipment, components, and consumable
5supplies used in the modification, replacement, repair, and
6maintenance of aircraft engines or power plants, whether such
7engines or power plants are installed or uninstalled upon any
8such aircraft. "Consumable supplies" include, but are not
9limited to, adhesive, tape, sandpaper, general purpose
10lubricants, cleaning solution, latex gloves, and protective
11films. This exemption applies only to the sale of qualifying
12tangible personal property to persons who modify, refurbish,
13complete, replace, or maintain an aircraft and who (i) hold an
14Air Agency Certificate and are empowered to operate an approved
15repair station by the Federal Aviation Administration, (ii)
16have a Class IV Rating, and (iii) conduct operations in
17accordance with Part 145 of the Federal Aviation Regulations.
18The exemption does not include aircraft operated by a
19commercial air carrier providing scheduled passenger air
20service pursuant to authority issued under Part 121 or Part 129
21of the Federal Aviation Regulations. The changes made to this
22paragraph (40) by Public Act 98-534 this amendatory Act of the
2398th General Assembly are declarative of existing law.
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    (42) Beginning July 1, 2014, child-sized and adult diapers.
13This paragraph is exempt from the provisions of Section 2-70.
14(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
15eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
16eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1798-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
181-1-14; 98-583, eff. 1-1-14; revised 9-9-13.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.