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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Corporate Accountability for Tax
5Expenditures Act is amended by changing Section 10 as follows:
 
6    (20 ILCS 715/10)
7    Sec. 10. Unified Economic Development Budget.
8    (a) For each State fiscal year ending on or after June 30,
92005, the Department of Revenue shall submit an annual Unified
10Economic Development Budget to the General Assembly. The
11Unified Economic Development Budget shall be due within 6 3
12months after the end of the fiscal year, and shall present all
13types of development assistance granted during the prior fiscal
14year, including:
15        (1) The aggregate amount of uncollected or diverted
16    State tax revenues resulting from each type of development
17    assistance provided in the tax statutes, as reported to the
18    Department of Revenue on tax returns filed during the
19    fiscal year.
20        (2) All State development assistance.
21    (b) All data contained in the Unified Economic Development
22Budget presented to the General Assembly shall be fully subject
23to the Freedom of Information Act.

 

 

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1    (c) The Department of Revenue shall submit a report of the
2amounts in subdivision (a)(1) of this Section to the
3Department, which may append such report to the Unified
4Economic Development Budget rather than separately reporting
5such amounts.
6(Source: P.A. 93-552, eff. 8-20-03.)
 
7    Section 10. The Use Tax Act is amended by changing Section
83-5 as follows:
 
9    (35 ILCS 105/3-5)
10    Sec. 3-5. Exemptions. Use of the following tangible
11personal property is exempt from the tax imposed by this Act:
12    (1) Personal property purchased from a corporation,
13society, association, foundation, institution, or
14organization, other than a limited liability company, that is
15organized and operated as a not-for-profit service enterprise
16for the benefit of persons 65 years of age or older if the
17personal property was not purchased by the enterprise for the
18purpose of resale by the enterprise.
19    (2) Personal property purchased by a not-for-profit
20Illinois county fair association for use in conducting,
21operating, or promoting the county fair.
22    (3) Personal property purchased by a not-for-profit arts or
23cultural organization that establishes, by proof required by
24the Department by rule, that it has received an exemption under

 

 

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1Section 501(c)(3) of the Internal Revenue Code and that is
2organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after the effective date
9of this amendatory Act of the 92nd General Assembly, however,
10an entity otherwise eligible for this exemption shall not make
11tax-free purchases unless it has an active identification
12number issued by the Department.
13    (4) Personal property purchased by a governmental body, by
14a corporation, society, association, foundation, or
15institution organized and operated exclusively for charitable,
16religious, or educational purposes, or by a not-for-profit
17corporation, society, association, foundation, institution, or
18organization that has no compensated officers or employees and
19that is organized and operated primarily for the recreation of
20persons 55 years of age or older. A limited liability company
21may qualify for the exemption under this paragraph only if the
22limited liability company is organized and operated
23exclusively for educational purposes. On and after July 1,
241987, however, no entity otherwise eligible for this exemption
25shall make tax-free purchases unless it has an active exemption
26identification number issued by the Department.

 

 

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1    (5) Until July 1, 2003, a passenger car that is a
2replacement vehicle to the extent that the purchase price of
3the car is subject to the Replacement Vehicle Tax.
4    (6) Until July 1, 2003 and beginning again on September 1,
52004 through August 30, 2014, graphic arts machinery and
6equipment, including repair and replacement parts, both new and
7used, and including that manufactured on special order,
8certified by the purchaser to be used primarily for graphic
9arts production, and including machinery and equipment
10purchased for lease. Equipment includes chemicals or chemicals
11acting as catalysts but only if the chemicals or chemicals
12acting as catalysts effect a direct and immediate change upon a
13graphic arts product.
14    (7) Farm chemicals.
15    (8) Legal tender, currency, medallions, or gold or silver
16coinage issued by the State of Illinois, the government of the
17United States of America, or the government of any foreign
18country, and bullion.
19    (9) Personal property purchased from a teacher-sponsored
20student organization affiliated with an elementary or
21secondary school located in Illinois.
22    (10) A motor vehicle that is used for automobile renting,
23as defined in the Automobile Renting Occupation and Use Tax
24Act.
25    (11) Farm machinery and equipment, both new and used,
26including that manufactured on special order, certified by the

 

 

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

 

 

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

 

 

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1food and beverages purchased at retail from a retailer, to the
2extent that the proceeds of the service charge are in fact
3turned over as tips or as a substitute for tips to the
4employees who participate directly in preparing, serving,
5hosting or cleaning up the food or beverage function with
6respect to which the service charge is imposed.
7    (14) Until July 1, 2003, oil field exploration, drilling,
8and production equipment, including (i) rigs and parts of rigs,
9rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
10tubular goods, including casing and drill strings, (iii) pumps
11and pump-jack units, (iv) storage tanks and flow lines, (v) any
12individual replacement part for oil field exploration,
13drilling, and production equipment, and (vi) machinery and
14equipment purchased for lease; but excluding motor vehicles
15required to be registered under the Illinois Vehicle Code.
16    (15) Photoprocessing machinery and equipment, including
17repair and replacement parts, both new and used, including that
18manufactured on special order, certified by the purchaser to be
19used primarily for photoprocessing, and including
20photoprocessing machinery and equipment purchased for lease.
21    (16) Coal and aggregate exploration, mining, off-highway
22hauling, processing, maintenance, and reclamation equipment,
23including replacement parts and equipment, and including
24equipment purchased for lease, but excluding motor vehicles
25required to be registered under the Illinois Vehicle Code. The
26changes made to this Section by Public Act 97-767 apply on and

 

 

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1after July 1, 2003, but no claim for credit or refund is
2allowed on or after August 16, 2013 (the effective date of
3Public Act 98-456) for such taxes paid during the period
4beginning July 1, 2003 and ending on August 16, 2013 (the
5effective date of Public Act 98-456).
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 are declaratory of existing law as to the
5meaning and scope of this exemption.
6    (19) Personal property delivered to a purchaser or
7purchaser's donee inside Illinois when the purchase order for
8that personal property was received by a florist located
9outside Illinois who has a florist located inside Illinois
10deliver the personal property.
11    (20) Semen used for artificial insemination of livestock
12for direct agricultural production.
13    (21) Horses, or interests in horses, registered with and
14meeting the requirements of any of the Arabian Horse Club
15Registry of America, Appaloosa Horse Club, American Quarter
16Horse Association, United States Trotting Association, or
17Jockey Club, as appropriate, used for purposes of breeding or
18racing for prizes. This item (21) is exempt from the provisions
19of Section 3-90, and the exemption provided for under this item
20(21) applies for all periods beginning May 30, 1995, but no
21claim for credit or refund is allowed on or after January 1,
222008 for such taxes paid during the period beginning May 30,
232000 and ending on January 1, 2008.
24    (22) Computers and communications equipment utilized for
25any hospital purpose and equipment used in the diagnosis,
26analysis, or treatment of hospital patients purchased by a

 

 

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

 

 

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

 

 

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1before December 31, 2004, personal property that is used in the
2performance of infrastructure repairs in this State, including
3but not limited to municipal roads and streets, access roads,
4bridges, sidewalks, waste disposal systems, water and sewer
5line extensions, water distribution and purification
6facilities, storm water drainage and retention facilities, and
7sewage treatment facilities, resulting from a State or
8federally declared disaster in Illinois or bordering Illinois
9when such repairs are initiated on facilities located in the
10declared disaster area within 6 months after the disaster.
11    (26) Beginning July 1, 1999, game or game birds purchased
12at a "game breeding and hunting preserve area" as that term is
13used in the Wildlife Code. This paragraph is exempt from the
14provisions of Section 3-90.
15    (27) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the Department
19to be organized and operated exclusively for educational
20purposes. For purposes of this exemption, "a corporation,
21limited liability company, society, association, foundation,
22or institution organized and operated exclusively for
23educational purposes" means all tax-supported public schools,
24private schools that offer systematic instruction in useful
25branches of learning by methods common to public schools and
26that compare favorably in their scope and intensity with the

 

 

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1course of study presented in tax-supported schools, and
2vocational or technical schools or institutes organized and
3operated exclusively to provide a course of study of not less
4than 6 weeks duration and designed to prepare individuals to
5follow a trade or to pursue a manual, technical, mechanical,
6industrial, business, or commercial occupation.
7    (28) Beginning January 1, 2000, personal property,
8including food, purchased through fundraising events for the
9benefit of a public or private elementary or secondary school,
10a group of those schools, or one or more school districts if
11the events are sponsored by an entity recognized by the school
12district that consists primarily of volunteers and includes
13parents and teachers of the school children. This paragraph
14does not apply to fundraising events (i) for the benefit of
15private home instruction or (ii) for which the fundraising
16entity purchases the personal property sold at the events from
17another individual or entity that sold the property for the
18purpose of resale by the fundraising entity and that profits
19from the sale to the fundraising entity. This paragraph is
20exempt from the provisions of Section 3-90.
21    (29) Beginning January 1, 2000 and through December 31,
222001, new or used automatic vending machines that prepare and
23serve hot food and beverages, including coffee, soup, and other
24items, and replacement parts for these machines. Beginning
25January 1, 2002 and through June 30, 2003, machines and parts
26for machines used in commercial, coin-operated amusement and

 

 

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1vending business if a use or occupation tax is paid on the
2gross receipts derived from the use of the commercial,
3coin-operated amusement and vending machines. This paragraph
4is exempt from the provisions of Section 3-90.
5    (30) Beginning January 1, 2001 and through June 30, 2016,
6food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages, soft
8drinks, and food that has been prepared for immediate
9consumption) and prescription and nonprescription medicines,
10drugs, medical appliances, and insulin, urine testing
11materials, syringes, and needles used by diabetics, for human
12use, when purchased for use by a person receiving medical
13assistance under Article V of the Illinois Public Aid Code who
14resides in a licensed long-term care facility, as defined in
15the Nursing Home Care Act, or in a licensed facility as defined
16in the ID/DD Community Care Act, the MC/DD Act, or the
17Specialized Mental Health Rehabilitation Act of 2013.
18    (31) Beginning on the effective date of this amendatory Act
19of the 92nd General Assembly, computers and communications
20equipment utilized for any hospital purpose and equipment used
21in the diagnosis, analysis, or treatment of hospital patients
22purchased by a lessor who leases the equipment, under a lease
23of one year or longer executed or in effect at the time the
24lessor would otherwise be subject to the tax imposed by this
25Act, to a hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of the

 

 

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

 

 

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1shall be liable for the tax imposed under this Act or the
2Service Use Tax Act, as the case may be, based on the fair
3market value of the property at the time the nonqualifying use
4occurs. No lessor shall collect or attempt to collect an amount
5(however designated) that purports to reimburse that lessor for
6the tax imposed by this Act or the Service Use Tax Act, as the
7case may be, if the tax has not been paid by the lessor. If a
8lessor improperly collects any such amount from the lessee, the
9lessee shall have a legal right to claim a refund of that
10amount from the lessor. If, however, that amount is not
11refunded to the lessee for any reason, the lessor is liable to
12pay that amount to the Department. This paragraph is exempt
13from the provisions of Section 3-90.
14    (33) On and after July 1, 2003 and through June 30, 2004,
15the use in this State of motor vehicles of the second division
16with a gross vehicle weight in excess of 8,000 pounds and that
17are subject to the commercial distribution fee imposed under
18Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
191, 2004 and through June 30, 2005, the use in this State of
20motor vehicles of the second division: (i) with a gross vehicle
21weight rating in excess of 8,000 pounds; (ii) that are subject
22to the commercial distribution fee imposed under Section
233-815.1 of the Illinois Vehicle Code; and (iii) that are
24primarily used for commercial purposes. Through June 30, 2005,
25this exemption applies to repair and replacement parts added
26after the initial purchase of such a motor vehicle if that

 

 

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

 

 

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1lubricants, cleaning solution, latex gloves, and protective
2films. This exemption applies only to the use of qualifying
3tangible personal property by persons who modify, refurbish,
4complete, repair, replace, or maintain aircraft and who (i)
5hold an Air Agency Certificate and are empowered to operate an
6approved repair station by the Federal Aviation
7Administration, (ii) have a Class IV Rating, and (iii) conduct
8operations in accordance with Part 145 of the Federal Aviation
9Regulations. The exemption does not include aircraft operated
10by a commercial air carrier providing scheduled passenger air
11service pursuant to authority issued under Part 121 or Part 129
12of the Federal Aviation Regulations. The changes made to this
13paragraph (35) by Public Act 98-534 are declarative of existing
14law.
15    (36) Tangible personal property purchased by a
16public-facilities corporation, as described in Section
1711-65-10 of the Illinois Municipal Code, for purposes of
18constructing or furnishing a municipal convention hall, but
19only if the legal title to the municipal convention hall is
20transferred to the municipality without any further
21consideration by or on behalf of the municipality at the time
22of the completion of the municipal convention hall or upon the
23retirement or redemption of any bonds or other debt instruments
24issued by the public-facilities corporation in connection with
25the development of the municipal convention hall. This
26exemption includes existing public-facilities corporations as

 

 

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1provided in Section 11-65-25 of the Illinois Municipal Code.
2This paragraph is exempt from the provisions of Section 3-90.
3    (37) Personal property purchased by a purchaser who is
4exempt from the tax imposed by this Act by operation of federal
5law. This paragraph is exempt from the provisions of Section
63-90.
7(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
898-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
91-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
107-29-15.)
 
11    Section 15. 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

 

 

SB0514 Engrossed- 23 -LRB099 03081 HLH 23089 b

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
6hauling, processing, maintenance, and reclamation equipment,
7including replacement parts and equipment, and including
8equipment purchased for lease, but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code. The
10changes made to this Section by Public Act 97-767 apply on and
11after July 1, 2003, but no claim for credit or refund is
12allowed on or after August 16, 2013 (the effective date of
13Public Act 98-456) for such taxes paid during the period
14beginning July 1, 2003 and ending on August 16, 2013 (the
15effective date of Public Act 98-456).
16    (13) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (14) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (14) is exempt from the provisions
24of Section 3-75, and the exemption provided for under this item
25(14) applies for all periods beginning May 30, 1995, but no
26claim for credit or refund is allowed on or after the effective

 

 

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

 

 

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

 

 

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1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (18) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in the
8performance of infrastructure repairs in this State, including
9but not limited to municipal roads and streets, access roads,
10bridges, sidewalks, waste disposal systems, water and sewer
11line extensions, water distribution and purification
12facilities, storm water drainage and retention facilities, and
13sewage treatment facilities, resulting from a State or
14federally declared disaster in Illinois or bordering Illinois
15when such repairs are initiated on facilities located in the
16declared disaster area within 6 months after the disaster.
17    (19) Beginning July 1, 1999, game or game birds purchased
18at a "game breeding and hunting preserve area" as that term is
19used in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 3-75.
21    (20) A motor vehicle, as that term is defined in Section
221-146 of the Illinois Vehicle Code, that is donated to a
23corporation, limited liability company, society, association,
24foundation, or institution that is determined by the Department
25to be organized and operated exclusively for educational
26purposes. For purposes of this exemption, "a corporation,

 

 

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1limited liability company, society, association, foundation,
2or institution organized and operated exclusively for
3educational purposes" means all tax-supported public schools,
4private schools that offer systematic instruction in useful
5branches of learning by methods common to public schools and
6that compare favorably in their scope and intensity with the
7course of study presented in tax-supported schools, and
8vocational or technical schools or institutes organized and
9operated exclusively to provide a course of study of not less
10than 6 weeks duration and designed to prepare individuals to
11follow a trade or to pursue a manual, technical, mechanical,
12industrial, business, or commercial occupation.
13    (21) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-75.

 

 

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1    (22) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and other
4items, and replacement parts for these machines. Beginning
5January 1, 2002 and through June 30, 2003, machines and parts
6for machines used in commercial, coin-operated amusement and
7vending business if a use or occupation tax is paid on the
8gross receipts derived from the use of the commercial,
9coin-operated amusement and vending machines. This paragraph
10is exempt from the provisions of Section 3-75.
11    (23) Beginning August 23, 2001 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages, soft
14drinks, and food that has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or in a licensed facility as defined
22in the ID/DD Community Care Act, the MC/DD Act, or the
23Specialized Mental Health Rehabilitation Act of 2013.
24    (24) Beginning on the effective date of this amendatory Act
25of the 92nd General Assembly, computers and communications
26equipment utilized for any hospital purpose and equipment used

 

 

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

 

 

SB0514 Engrossed- 31 -LRB099 03081 HLH 23089 b

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

 

 

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1upon an aircraft as part of the modification, refurbishment,
2completion, replacement, repair, or maintenance of the
3aircraft. This exemption includes consumable supplies used in
4the modification, refurbishment, completion, replacement,
5repair, and maintenance of aircraft, but excludes any
6materials, parts, equipment, components, and consumable
7supplies used in the modification, replacement, repair, and
8maintenance of aircraft engines or power plants, whether such
9engines or power plants are installed or uninstalled upon any
10such aircraft. "Consumable supplies" include, but are not
11limited to, adhesive, tape, sandpaper, general purpose
12lubricants, cleaning solution, latex gloves, and protective
13films. This exemption applies only to the use of qualifying
14tangible personal property transferred incident to the
15modification, refurbishment, completion, replacement, repair,
16or maintenance of aircraft by persons who (i) hold an Air
17Agency Certificate and are empowered to operate an approved
18repair station by the Federal Aviation Administration, (ii)
19have a Class IV Rating, and (iii) conduct operations in
20accordance with Part 145 of the Federal Aviation Regulations.
21The exemption does not include aircraft operated by a
22commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part 129
24of the Federal Aviation Regulations. The changes made to this
25paragraph (27) by Public Act 98-534 are declarative of existing
26law.

 

 

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1    (28) Tangible personal property purchased by a
2public-facilities corporation, as described in Section
311-65-10 of the Illinois Municipal Code, for purposes of
4constructing or furnishing a municipal convention hall, but
5only if the legal title to the municipal convention hall is
6transferred to the municipality without any further
7consideration by or on behalf of the municipality at the time
8of the completion of the municipal convention hall or upon the
9retirement or redemption of any bonds or other debt instruments
10issued by the public-facilities corporation in connection with
11the development of the municipal convention hall. This
12exemption includes existing public-facilities corporations as
13provided in Section 11-65-25 of the Illinois Municipal Code.
14This paragraph is exempt from the provisions of Section 3-75.
15    (29) Personal property purchased by a purchaser who is
16exempt from the tax imposed by this Act by operation of federal
17law. This paragraph is exempt from the provisions of Section
183-75.
19(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2098-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
217-16-14; 99-180, eff. 7-29-15.)
 
22    Section 20. The Service Occupation Tax Act is amended by
23changing Section 3-5 as follows:
 
24    (35 ILCS 115/3-5)

 

 

SB0514 Engrossed- 34 -LRB099 03081 HLH 23089 b

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

 

 

SB0514 Engrossed- 35 -LRB099 03081 HLH 23089 b

1number issued by the Department.
2    (4) Legal tender, currency, medallions, or gold or silver
3coinage issued by the State of Illinois, the government of the
4United States of America, or the government of any foreign
5country, and bullion.
6    (5) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product.
15    (6) Personal property sold by a teacher-sponsored student
16organization affiliated with an elementary or secondary school
17located in Illinois.
18    (7) Farm machinery and equipment, both new and used,
19including that manufactured on special order, certified by the
20purchaser to be used primarily for production agriculture or
21State or federal agricultural programs, including individual
22replacement parts for the machinery and equipment, including
23machinery and equipment purchased for lease, and including
24implements of husbandry defined in Section 1-130 of the
25Illinois Vehicle Code, farm machinery and agricultural
26chemical and fertilizer spreaders, and nurse wagons required to

 

 

SB0514 Engrossed- 36 -LRB099 03081 HLH 23089 b

1be registered under Section 3-809 of the Illinois Vehicle Code,
2but excluding other motor vehicles required to be registered
3under the Illinois Vehicle Code. Horticultural polyhouses or
4hoop houses used for propagating, growing, or overwintering
5plants shall be considered farm machinery and equipment under
6this item (7). Agricultural chemical tender tanks and dry boxes
7shall include units sold separately from a motor vehicle
8required to be licensed and units sold mounted on a motor
9vehicle required to be licensed if the selling price of the
10tender is separately stated.
11    Farm machinery and equipment shall include precision
12farming equipment that is installed or purchased to be
13installed on farm machinery and equipment including, but not
14limited to, tractors, harvesters, sprayers, planters, seeders,
15or spreaders. Precision farming equipment includes, but is not
16limited to, soil testing sensors, computers, monitors,
17software, global positioning and mapping systems, and other
18such equipment.
19    Farm machinery and equipment also includes computers,
20sensors, software, and related equipment used primarily in the
21computer-assisted operation of production agriculture
22facilities, equipment, and activities such as, but not limited
23to, the collection, monitoring, and correlation of animal and
24crop data for the purpose of formulating animal diets and
25agricultural chemicals. This item (7) is exempt from the
26provisions of Section 3-55.

 

 

SB0514 Engrossed- 37 -LRB099 03081 HLH 23089 b

1    (8) Until June 30, 2013, fuel and petroleum products sold
2to or used by an air common carrier, certified by the carrier
3to be used for consumption, shipment, or storage in the conduct
4of its business as an air common carrier, for a flight destined
5for or returning from a location or locations outside the
6United States without regard to previous or subsequent domestic
7stopovers.
8    Beginning July 1, 2013, fuel and petroleum products sold to
9or used by an air carrier, certified by the carrier to be used
10for consumption, shipment, or storage in the conduct of its
11business as an air common carrier, for a flight that (i) is
12engaged in foreign trade or is engaged in trade between the
13United States and any of its possessions and (ii) transports at
14least one individual or package for hire from the city of
15origination to the city of final destination on the same
16aircraft, without regard to a change in the flight number of
17that aircraft.
18    (9) Proceeds of mandatory service charges separately
19stated on customers' bills for the purchase and consumption of
20food and beverages, to the extent that the proceeds of the
21service charge are in fact turned over as tips or as a
22substitute for tips to the employees who participate directly
23in preparing, serving, hosting or cleaning up the food or
24beverage function with respect to which the service charge is
25imposed.
26    (10) Until July 1, 2003, oil field exploration, drilling,

 

 

SB0514 Engrossed- 38 -LRB099 03081 HLH 23089 b

1and production equipment, including (i) rigs and parts of rigs,
2rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
3tubular goods, including casing and drill strings, (iii) pumps
4and pump-jack units, (iv) storage tanks and flow lines, (v) any
5individual replacement part for oil field exploration,
6drilling, and production equipment, and (vi) machinery and
7equipment purchased for lease; but excluding motor vehicles
8required to be registered under the Illinois Vehicle Code.
9    (11) Photoprocessing machinery and equipment, including
10repair and replacement parts, both new and used, including that
11manufactured on special order, certified by the purchaser to be
12used primarily for photoprocessing, and including
13photoprocessing machinery and equipment purchased for lease.
14    (12) Coal and aggregate exploration, mining, off-highway
15hauling, processing, maintenance, and reclamation equipment,
16including replacement parts and equipment, and including
17equipment purchased for lease, but excluding motor vehicles
18required to be registered under the Illinois Vehicle Code. The
19changes made to this Section by Public Act 97-767 apply on and
20after July 1, 2003, but no claim for credit or refund is
21allowed on or after August 16, 2013 (the effective date of
22Public Act 98-456) for such taxes paid during the period
23beginning July 1, 2003 and ending on August 16, 2013 (the
24effective date of Public Act 98-456).
25    (13) Beginning January 1, 1992 and through June 30, 2016,
26food for human consumption that is to be consumed off the

 

 

SB0514 Engrossed- 39 -LRB099 03081 HLH 23089 b

1premises where it is sold (other than alcoholic beverages, soft
2drinks and food that has been prepared for immediate
3consumption) and prescription and non-prescription medicines,
4drugs, medical appliances, and insulin, urine testing
5materials, syringes, and needles used by diabetics, for human
6use, when purchased for use by a person receiving medical
7assistance under Article V of the Illinois Public Aid Code who
8resides in a licensed long-term care facility, as defined in
9the Nursing Home Care Act, or in a licensed facility as defined
10in the ID/DD Community Care Act, the MC/DD Act, or the
11Specialized Mental Health Rehabilitation Act of 2013.
12    (14) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (15) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (15) is exempt from the provisions
20of Section 3-55, and the exemption provided for under this item
21(15) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after January 1,
232008 (the effective date of Public Act 95-88) for such taxes
24paid during the period beginning May 30, 2000 and ending on
25January 1, 2008 (the effective date of Public Act 95-88).
26    (16) Computers and communications equipment utilized for

 

 

SB0514 Engrossed- 40 -LRB099 03081 HLH 23089 b

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

 

 

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1performance of infrastructure repairs in this State, including
2but not limited to municipal roads and streets, access roads,
3bridges, sidewalks, waste disposal systems, water and sewer
4line extensions, water distribution and purification
5facilities, storm water drainage and retention facilities, and
6sewage treatment facilities, resulting from a State or
7federally declared disaster in Illinois or bordering Illinois
8when such repairs are initiated on facilities located in the
9declared disaster area within 6 months after the disaster.
10    (20) Beginning July 1, 1999, game or game birds sold at a
11"game breeding and hunting preserve area" as that term is used
12in the Wildlife Code. This paragraph is exempt from the
13provisions of Section 3-55.
14    (21) A motor vehicle, as that term is defined in Section
151-146 of the Illinois Vehicle Code, that is donated to a
16corporation, limited liability company, society, association,
17foundation, or institution that is determined by the Department
18to be organized and operated exclusively for educational
19purposes. For purposes of this exemption, "a corporation,
20limited liability company, society, association, foundation,
21or institution organized and operated exclusively for
22educational purposes" means all tax-supported public schools,
23private schools that offer systematic instruction in useful
24branches of learning by methods common to public schools and
25that compare favorably in their scope and intensity with the
26course of study presented in tax-supported schools, and

 

 

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

 

 

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1gross receipts derived from the use of the commercial,
2coin-operated amusement and vending machines. This paragraph
3is exempt from the provisions of Section 3-55.
4    (24) Beginning on the effective date of this amendatory Act
5of the 92nd General Assembly, computers and communications
6equipment utilized for any hospital purpose and equipment used
7in the diagnosis, analysis, or treatment of hospital patients
8sold to a lessor who leases the equipment, under a lease of one
9year or longer executed or in effect at the time of the
10purchase, to a hospital that has been issued an active tax
11exemption identification number by the Department under
12Section 1g of the Retailers' Occupation Tax Act. This paragraph
13is exempt from the provisions of Section 3-55.
14    (25) Beginning on the effective date of this amendatory Act
15of the 92nd General Assembly, personal property sold to a
16lessor who leases the property, under a lease of one year or
17longer executed or in effect at the time of the purchase, to a
18governmental body that has been issued an active tax exemption
19identification number by the Department under Section 1g of the
20Retailers' Occupation Tax Act. This paragraph is exempt from
21the provisions of Section 3-55.
22    (26) Beginning on January 1, 2002 and through June 30,
232016, tangible personal property purchased from an Illinois
24retailer by a taxpayer engaged in centralized purchasing
25activities in Illinois who will, upon receipt of the property
26in Illinois, temporarily store the property in Illinois (i) for

 

 

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

 

 

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

 

 

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1lubricants, cleaning solution, latex gloves, and protective
2films. This exemption applies only to the transfer of
3qualifying tangible personal property incident to the
4modification, refurbishment, completion, replacement, repair,
5or maintenance of an aircraft by persons who (i) hold an Air
6Agency Certificate and are empowered to operate an approved
7repair station by the Federal Aviation Administration, (ii)
8have a Class IV Rating, and (iii) conduct operations in
9accordance with Part 145 of the Federal Aviation Regulations.
10The exemption does not include aircraft operated by a
11commercial 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 (29) by Public Act 98-534 are declarative of existing
15law.
16    (30) Personal property purchased by a purchaser who is
17exempt from use tax by operation of federal law. This paragraph
18is exempt from the provisions of Section 3-55.
19(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2098-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
217-16-14; 99-180, eff. 7-29-15.)
 
22    Section 25. The Retailers' Occupation Tax Act is amended by
23changing Section 2-5 as follows:
 
24    (35 ILCS 120/2-5)

 

 

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

 

 

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1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (2) is exempt from the
13provisions of Section 2-70.
14    (3) Until July 1, 2003, distillation machinery and
15equipment, sold as a unit or kit, assembled or installed by the
16retailer, certified by the user to be used only for the
17production of ethyl alcohol that will be used for consumption
18as motor fuel or as a component of motor fuel for the personal
19use of the user, and not subject to sale or resale.
20    (4) Until July 1, 2003 and beginning again September 1,
212004 through August 30, 2014, graphic arts machinery and
22equipment, including repair and replacement parts, both new and
23used, and including that manufactured on special order or
24purchased for lease, certified by the purchaser to be used
25primarily for graphic arts production. Equipment includes
26chemicals or chemicals acting as catalysts but only if the

 

 

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1chemicals or chemicals acting as catalysts effect a direct and
2immediate change upon a graphic arts product.
3    (5) A motor vehicle that is used for automobile renting, as
4defined in the Automobile Renting Occupation and Use Tax Act.
5This paragraph is exempt from the provisions of Section 2-70.
6    (6) Personal property sold by a teacher-sponsored student
7organization affiliated with an elementary or secondary school
8located in Illinois.
9    (7) Until July 1, 2003, proceeds of that portion of the
10selling price of a passenger car the sale of which is subject
11to the Replacement Vehicle Tax.
12    (8) Personal property sold to an Illinois county fair
13association for use in conducting, operating, or promoting the
14county fair.
15    (9) Personal property sold to a not-for-profit arts or
16cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after the effective date
26of this amendatory Act of the 92nd General Assembly, however,

 

 

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1an entity otherwise eligible for this exemption shall not make
2tax-free purchases unless it has an active identification
3number issued by the Department.
4    (10) 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    (11) Personal property sold to a governmental body, to a
12corporation, society, association, foundation, or institution
13organized and operated exclusively for charitable, religious,
14or educational purposes, or to a not-for-profit corporation,
15society, association, foundation, institution, or organization
16that has no compensated officers or employees and that is
17organized and operated primarily for the recreation of persons
1855 years of age or older. A limited liability company may
19qualify 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
24identification number issued by the Department.
25    (12) Tangible personal property sold to interstate
26carriers for hire for use as rolling stock moving in interstate

 

 

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1commerce or to lessors under leases of one year or longer
2executed or in effect at the time of purchase by interstate
3carriers for hire for use as rolling stock moving in interstate
4commerce and equipment operated by a telecommunications
5provider, licensed as a common carrier by the Federal
6Communications Commission, which is permanently installed in
7or affixed to aircraft moving in interstate commerce.
8    (12-5) On and after July 1, 2003 and through June 30, 2004,
9motor vehicles of the second division with a gross vehicle
10weight in excess of 8,000 pounds that are subject to the
11commercial distribution fee imposed under Section 3-815.1 of
12the Illinois Vehicle Code. Beginning on July 1, 2004 and
13through June 30, 2005, the use in this State of motor vehicles
14of the second division: (i) with a gross vehicle weight rating
15in excess of 8,000 pounds; (ii) that are subject to the
16commercial distribution fee imposed under Section 3-815.1 of
17the Illinois Vehicle Code; and (iii) that are primarily used
18for commercial purposes. Through June 30, 2005, this exemption
19applies to repair and replacement parts added after the initial
20purchase of such a motor vehicle if that motor vehicle is used
21in a manner that would qualify for the rolling stock exemption
22otherwise provided for in this Act. For purposes of this
23paragraph, "used for commercial purposes" means the
24transportation of persons or property in furtherance of any
25commercial or industrial enterprise whether for-hire or not.
26    (13) Proceeds from sales to owners, lessors, or shippers of

 

 

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1tangible personal property that is utilized by interstate
2carriers for hire for use as rolling stock moving in interstate
3commerce and equipment operated by a telecommunications
4provider, licensed as a common carrier by the Federal
5Communications Commission, which is permanently installed in
6or affixed to aircraft moving in interstate commerce.
7    (14) Machinery and equipment that will be used by the
8purchaser, or a lessee of the purchaser, primarily in the
9process of manufacturing or assembling tangible personal
10property for wholesale or retail sale or lease, whether the
11sale or lease is made directly by the manufacturer or by some
12other person, whether the materials used in the process are
13owned by the manufacturer or some other person, or whether the
14sale or lease is made apart from or as an incident to the
15seller's engaging in the service occupation of producing
16machines, tools, dies, jigs, patterns, gauges, or other similar
17items of no commercial value on special order for a particular
18purchaser. The exemption provided by this paragraph (14) does
19not include machinery and equipment used in (i) the generation
20of electricity for wholesale or retail sale; (ii) the
21generation or treatment of natural or artificial gas for
22wholesale or retail sale that is delivered to customers through
23pipes, pipelines, or mains; or (iii) the treatment of water for
24wholesale or retail sale that is delivered to customers through
25pipes, pipelines, or mains. The provisions of Public Act 98-583
26are declaratory of existing law as to the meaning and scope of

 

 

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1this exemption.
2    (15) Proceeds of mandatory service charges separately
3stated on customers' bills for purchase and consumption of food
4and beverages, to the extent that the proceeds of the service
5charge are in fact turned over as tips or as a substitute for
6tips to the employees who participate directly in preparing,
7serving, hosting or cleaning up the food or beverage function
8with respect to which the service charge is imposed.
9    (16) Personal property Petroleum products sold to a
10purchaser if the purchaser is exempt from use tax seller is
11prohibited by operation of federal law from charging tax to the
12purchaser. This paragraph is exempt from the provisions of
13Section 2-70.
14    (17) Tangible personal property sold to a common carrier by
15rail or motor that receives the physical possession of the
16property in Illinois and that transports the property, or
17shares with another common carrier in the transportation of the
18property, out of Illinois on a standard uniform bill of lading
19showing the seller of the property as the shipper or consignor
20of the property to a destination outside Illinois, for use
21outside Illinois.
22    (18) Legal tender, currency, medallions, or gold or silver
23coinage issued by the State of Illinois, the government of the
24United States of America, or the government of any foreign
25country, and bullion.
26    (19) Until July 1 2003, oil field exploration, drilling,

 

 

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1and production equipment, including (i) rigs and parts of rigs,
2rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
3tubular goods, including casing and drill strings, (iii) pumps
4and pump-jack units, (iv) storage tanks and flow lines, (v) any
5individual replacement part for oil field exploration,
6drilling, and production equipment, and (vi) machinery and
7equipment purchased for lease; but excluding motor vehicles
8required to be registered under the Illinois Vehicle Code.
9    (20) Photoprocessing machinery and equipment, including
10repair and replacement parts, both new and used, including that
11manufactured on special order, certified by the purchaser to be
12used primarily for photoprocessing, and including
13photoprocessing machinery and equipment purchased for lease.
14    (21) Coal and aggregate exploration, mining, off-highway
15hauling, processing, maintenance, and reclamation equipment,
16including replacement parts and equipment, and including
17equipment purchased for lease, but excluding motor vehicles
18required to be registered under the Illinois Vehicle Code. The
19changes made to this Section by Public Act 97-767 apply on and
20after July 1, 2003, but no claim for credit or refund is
21allowed on or after August 16, 2013 (the effective date of
22Public Act 98-456) for such taxes paid during the period
23beginning July 1, 2003 and ending on August 16, 2013 (the
24effective date of Public Act 98-456).
25    (22) Until June 30, 2013, fuel and petroleum products sold
26to or used by an air carrier, certified by the carrier to be

 

 

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1used for consumption, shipment, or storage in the conduct of
2its business as an air common carrier, for a flight destined
3for or returning from a location or locations outside the
4United States without regard to previous or subsequent domestic
5stopovers.
6    Beginning July 1, 2013, fuel and petroleum products sold to
7or used by an air carrier, certified by the carrier to be used
8for consumption, shipment, or storage in the conduct of its
9business as an air common carrier, for a flight that (i) is
10engaged in foreign trade or is engaged in trade between the
11United States and any of its possessions and (ii) transports at
12least one individual or package for hire from the city of
13origination to the city of final destination on the same
14aircraft, without regard to a change in the flight number of
15that aircraft.
16    (23) A transaction in which the purchase order is received
17by a florist who is located outside Illinois, but who has a
18florist located in Illinois deliver the property to the
19purchaser or the purchaser's donee in Illinois.
20    (24) Fuel consumed or used in the operation of ships,
21barges, or vessels that are used primarily in or for the
22transportation of property or the conveyance of persons for
23hire on rivers bordering on this State if the fuel is delivered
24by the seller to the purchaser's barge, ship, or vessel while
25it is afloat upon that bordering river.
26    (25) Except as provided in item (25-5) of this Section, a

 

 

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1motor vehicle sold in this State to a nonresident even though
2the motor vehicle is delivered to the nonresident in this
3State, if the motor vehicle is not to be titled in this State,
4and if a drive-away permit is issued to the motor vehicle as
5provided in Section 3-603 of the Illinois Vehicle Code or if
6the nonresident purchaser has vehicle registration plates to
7transfer to the motor vehicle upon returning to his or her home
8state. The issuance of the drive-away permit or having the
9out-of-state registration plates to be transferred is prima
10facie evidence that the motor vehicle will not be titled in
11this State.
12    (25-5) The exemption under item (25) does not apply if the
13state in which the motor vehicle will be titled does not allow
14a reciprocal exemption for a motor vehicle sold and delivered
15in that state to an Illinois resident but titled in Illinois.
16The tax collected under this Act on the sale of a motor vehicle
17in this State to a resident of another state that does not
18allow a reciprocal exemption shall be imposed at a rate equal
19to the state's rate of tax on taxable property in the state in
20which the purchaser is a resident, except that the tax shall
21not exceed the tax that would otherwise be imposed under this
22Act. At the time of the sale, the purchaser shall execute a
23statement, signed under penalty of perjury, of his or her
24intent to title the vehicle in the state in which the purchaser
25is a resident within 30 days after the sale and of the fact of
26the payment to the State of Illinois of tax in an amount

 

 

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1equivalent to the state's rate of tax on taxable property in
2his or her state of residence and shall submit the statement to
3the appropriate tax collection agency in his or her state of
4residence. In addition, the retailer must retain a signed copy
5of the statement in his or her records. Nothing in this item
6shall be construed to require the removal of the vehicle from
7this state following the filing of an intent to title the
8vehicle in the purchaser's state of residence if the purchaser
9titles the vehicle in his or her state of residence within 30
10days after the date of sale. The tax collected under this Act
11in accordance with this item (25-5) shall be proportionately
12distributed as if the tax were collected at the 6.25% general
13rate imposed under this Act.
14    (25-7) Beginning on July 1, 2007, no tax is imposed under
15this Act on the sale of an aircraft, as defined in Section 3 of
16the Illinois Aeronautics Act, if all of the following
17conditions are met:
18        (1) the aircraft leaves this State within 15 days after
19    the later of either the issuance of the final billing for
20    the sale of the aircraft, or the authorized approval for
21    return to service, completion of the maintenance record
22    entry, and completion of the test flight and ground test
23    for inspection, as required by 14 C.F.R. 91.407;
24        (2) the aircraft is not based or registered in this
25    State after the sale of the aircraft; and
26        (3) the seller retains in his or her books and records

 

 

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1    and provides to the Department a signed and dated
2    certification from the purchaser, on a form prescribed by
3    the Department, certifying that the requirements of this
4    item (25-7) are met. The certificate must also include the
5    name and address of the purchaser, the address of the
6    location where the aircraft is to be titled or registered,
7    the address of the primary physical location of the
8    aircraft, and other information that the Department may
9    reasonably require.
10    For purposes of this item (25-7):
11    "Based in this State" means hangared, stored, or otherwise
12used, excluding post-sale customizations as defined in this
13Section, for 10 or more days in each 12-month period
14immediately following the date of the sale of the aircraft.
15    "Registered in this State" means an aircraft registered
16with the Department of Transportation, Aeronautics Division,
17or titled or registered with the Federal Aviation
18Administration to an address located in this State.
19    This paragraph (25-7) is exempt from the provisions of
20Section 2-70.
21    (26) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (27) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

 

 

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1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (27) is exempt from the provisions
3of Section 2-70, and the exemption provided for under this item
4(27) applies for all periods beginning May 30, 1995, but no
5claim for credit or refund is allowed on or after January 1,
62008 (the effective date of Public Act 95-88) for such taxes
7paid during the period beginning May 30, 2000 and ending on
8January 1, 2008 (the effective date of Public Act 95-88).
9    (28) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients sold to a lessor
12who leases the equipment, under a lease of one year or longer
13executed or in effect at the time of the purchase, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of
16this Act.
17    (29) Personal property sold to a lessor who leases the
18property, under a lease of one year or longer executed or in
19effect at the time of the purchase, to a governmental body that
20has been issued an active tax exemption identification number
21by the Department under Section 1g of this Act.
22    (30) Beginning with taxable years ending on or after
23December 31, 1995 and ending with taxable years ending on or
24before December 31, 2004, personal property that is donated for
25disaster relief to be used in a State or federally declared
26disaster area in Illinois or bordering Illinois by a

 

 

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1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (31) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is used in the
9performance of infrastructure repairs in this State, including
10but not limited to municipal roads and streets, access roads,
11bridges, sidewalks, waste disposal systems, water and sewer
12line extensions, water distribution and purification
13facilities, storm water drainage and retention facilities, and
14sewage treatment facilities, resulting from a State or
15federally declared disaster in Illinois or bordering Illinois
16when such repairs are initiated on facilities located in the
17declared disaster area within 6 months after the disaster.
18    (32) Beginning July 1, 1999, game or game birds sold at a
19"game breeding and hunting preserve area" as that term is used
20in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 2-70.
22    (33) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the Department
26to be organized and operated exclusively for educational

 

 

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

 

 

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1exempt from the provisions of Section 2-70.
2    (35) Beginning January 1, 2000 and through December 31,
32001, new or used automatic vending machines that prepare and
4serve hot food and beverages, including coffee, soup, and other
5items, and replacement parts for these machines. Beginning
6January 1, 2002 and through June 30, 2003, machines and parts
7for machines used in commercial, coin-operated amusement and
8vending business if a use or occupation tax is paid on the
9gross receipts derived from the use of the commercial,
10coin-operated amusement and vending machines. This paragraph
11is exempt from the provisions of Section 2-70.
12    (35-5) Beginning August 23, 2001 and through June 30, 2016,
13food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages, soft
15drinks, and food that has been prepared for immediate
16consumption) and prescription and nonprescription medicines,
17drugs, medical appliances, and insulin, urine testing
18materials, syringes, and needles used by diabetics, for human
19use, when purchased for use by a person receiving medical
20assistance under Article V of the Illinois Public Aid Code who
21resides in a licensed long-term care facility, as defined in
22the Nursing Home Care Act, or a licensed facility as defined in
23the ID/DD Community Care Act, the MC/DD Act, or the Specialized
24Mental Health Rehabilitation Act of 2013.
25    (36) Beginning August 2, 2001, computers and
26communications equipment utilized for any hospital purpose and

 

 

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1equipment used in the diagnosis, analysis, or treatment of
2hospital patients sold to a lessor who leases the equipment,
3under a lease of one year or longer executed or in effect at
4the time of the purchase, to a hospital that has been issued an
5active tax exemption identification number by the Department
6under Section 1g of this Act. This paragraph is exempt from the
7provisions of Section 2-70.
8    (37) Beginning August 2, 2001, personal property sold to a
9lessor who leases the property, under a lease of one year or
10longer executed or in effect at the time of the purchase, to a
11governmental body that has been issued an active tax exemption
12identification number by the Department under Section 1g of
13this Act. This paragraph is exempt from the provisions of
14Section 2-70.
15    (38) Beginning on January 1, 2002 and through June 30,
162016, tangible personal property purchased from an Illinois
17retailer by a taxpayer engaged in centralized purchasing
18activities in Illinois who will, upon receipt of the property
19in Illinois, temporarily store the property in Illinois (i) for
20the purpose of subsequently transporting it outside this State
21for use or consumption thereafter solely outside this State or
22(ii) for the purpose of being processed, fabricated, or
23manufactured into, attached to, or incorporated into other
24tangible personal property to be transported outside this State
25and thereafter used or consumed solely outside this State. The
26Director of Revenue shall, pursuant to rules adopted in

 

 

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

 

 

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1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to the sale of qualifying
8tangible personal property to persons who modify, refurbish,
9complete, replace, or maintain an aircraft and who (i) hold an
10Air Agency Certificate and are empowered to operate an approved
11repair station by the Federal Aviation Administration, (ii)
12have a Class IV Rating, and (iii) conduct operations in
13accordance with Part 145 of the Federal Aviation Regulations.
14The exemption does not include aircraft operated by a
15commercial air carrier providing scheduled passenger air
16service pursuant to authority issued under Part 121 or Part 129
17of the Federal Aviation Regulations. The changes made to this
18paragraph (40) by Public Act 98-534 are declarative of existing
19law.
20    (41) Tangible personal property sold to a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt instruments
3issued by the public-facilities corporation in connection with
4the development of the municipal convention hall. This
5exemption includes existing public-facilities corporations as
6provided in Section 11-65-25 of the Illinois Municipal Code.
7This paragraph is exempt from the provisions of Section 2-70.
8(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
998-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
101-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
117-29-15.)
 
12    Section 30. The Cigarette Tax Act is amended by changing
13Section 18c as follows:
 
14    (35 ILCS 130/18c)
15    Sec. 18c. Possession of not less than 10 and not more than
16100 original packages of contraband cigarettes; penalty. With
17the exception of licensed distributors and transporters, as
18defined in Section 9c of this Act, possessing unstamped
19original packages of cigarettes, and licensed distributors
20possessing original packages of cigarettes that bear a tax
21stamp of another state or taxing jurisdiction, anyone
22possessing not less than 10 and not more than 100 packages of
23contraband cigarettes contained in original packages is liable
24to pay to the Department, for deposit into the Tax Compliance

 

 

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1and Administration Fund, a penalty of $20 $10 for each such
2package of cigarettes, unless reasonable cause can be
3established by the person upon whom the penalty is imposed.
4Reasonable cause shall be determined in each situation in
5accordance with rules adopted by the Department. The provisions
6of the Uniform Penalty and Interest Act do not apply to this
7Section.
8(Source: P.A. 96-782, eff. 1-1-10.)
 
9    Section 35. The Counties Code is amended by changing
10Sections 5-1032 and 5-1033 as follows:
 
11    (55 ILCS 5/5-1032)  (from Ch. 34, par. 5-1032)
12    Sec. 5-1032. County Automobile Renting Occupation Tax. The
13corporate authorities of a county may impose a tax upon all
14persons engaged in the business of renting automobiles in the
15county, but outside any municipality, at the rate of not to
16exceed 1% of the gross receipts from such business. The tax
17imposed by a county pursuant to this Section and all civil
18penalties that may be assessed as an Incident thereof shall be
19collected and enforced by the State Department of Revenue. The
20certificate of registration which is issued by the Department
21to a retailer under the "Retailers' Occupation Tax Act",
22approved June 23, 1933, as amended, or under the "Automobile
23Renting Occupation and Use Tax Act", enacted by the
24Eighty-Second General Assembly, shall permit such person to

 

 

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1engage in a business which is taxable under any ordinance or
2resolution enacted pursuant to this Section without
3registering separately with the Department under such
4ordinance or resolution or under this Section. The Department
5shall have full power to administer and enforce this Section;
6to collect all taxes and penalties due hereunder; to dispose of
7taxes and penalties so collected in the manner hereinafter
8provided, and to determine all rights to credit memoranda,
9arising on account of the erroneous payment of tax or penalty
10hereunder. In the administration of, and compliance with, this
11Section, the Department and persons who are subject to this
12Section shall have the same rights, remedies, privileges,
13immunities, powers and duties, and be subject to the same
14conditions, restrictions, limitations, penalties and
15definitions of terms, and employ the same modes of procedure,
16as are prescribed in Sections 2 and 3 (in respect to all
17provisions therein other than the State rate of tax; and with
18relation to the provisions of the "Retailers' Occupation Tax"
19referred to therein, except as to the disposition of taxes and
20penalties collected, and except for the provision allowing
21retailers a deduction from the tax to cover certain costs, and
22except that credit memoranda issued hereunder may not be used
23to discharge any State tax liability) of the "Automobile
24Renting Occupation and Use Tax Act", as the same are now or may
25hereafter be amended, as fully as if provisions contained in
26those Sections of said Act were set forth herein.

 

 

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1    Persons subject to any tax imposed pursuant to the
2authority granted in this Section may reimburse themselves for
3their tax liability hereunder by separately stating such tax as
4an additional charge, which charge may be stated in
5combination, in a single amount, with State tax which sellers
6are required to collect under the "Automobile Renting
7Occupation and Use Tax Act" pursuant to such bracket schedules
8as the Department may prescribe.
9    Whenever the Department determines that a refund should be
10made under this Section to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the order to be drawn for the
13amount specified, and to the person named, in such notification
14from the Department. Such refund shall be paid by the State
15Treasurer out of the county automobile renting tax fund.
16    The Department shall forthwith pay over to the State
17Treasurer, ex-officio, as trustee, all taxes and penalties
18collected hereunder. On or before the 25th day of each calendar
19month, the Department shall prepare and certify to the
20Comptroller the disbursement of stated sums of money to named
21counties from which rentors have paid taxes or penalties
22hereunder to the Department during the second preceding
23calendar month. The amount to be paid to each county shall be
24the amount (not including credit memoranda) collected
25hereunder during the second preceding calendar month by the
26Department, and not including an amount equal to the amount of

 

 

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1refunds made during the second preceding calendar month by the
2Department on behalf of such county, less 2% of such balance,
3which sum shall be retained by the State Treasurer to cover the
4costs incurred by the Department in administering and enforcing
5this Section as provided herein. The Department at the time of
6each monthly disbursement to the counties shall prepare and
7certify to the Comptroller the amount, so retained by the State
8Treasurer, to be paid into the General Revenue Fund of the
9State Treasury. Within 10 days after receipt, by the
10Comptroller, of the disbursement certification to the counties
11and the General Revenue Fund, provided for in this Section to
12be given to the Comptroller by the Department, the Comptroller
13shall cause the orders to be drawn for the respective amounts
14in accordance with the directions contained in such
15certification.
16    Nothing in this Section shall be construed to authorize a
17county to impose a tax upon the privilege of engaging in any
18business which under the constitution of the United States may
19not be made the subject of taxation by this State.
20    An ordinance or resolution imposing or discontinuing the
21tax under this Section or effecting a change in the rate
22thereof shall be adopted and a certified copy thereof filed
23with the Department either: (i) on or before the first day of
24April, in which case the Department shall proceed to administer
25and enforce this Section as of the first day of July next
26following the adoption or filing; or (ii) on or before the

 

 

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1first day of October, in which case the Department shall
2proceed to administer and enforce this Section as of the first
3day of January next following the adoption and filing.
4    An ordinance or resolution imposing a tax hereunder or
5effecting a change in the rate thereof shall be effective on
6the first day of the calendar month next following the month in
7which such ordinance or resolution is passed. The corporate
8authorities of any county which levies a tax authorized by this
9Section shall transmit to the Department of Revenue on or not
10later than 5 days after passage of the ordinance or resolution
11a certified copy of the ordinance or resolution imposing such
12tax whereupon the Department of Revenue shall proceed to
13administer and enforce this Section on behalf of such county as
14of the effective date of the ordinance or resolution. Upon a
15change in rate of a tax levied hereunder, or upon the
16discontinuance of the tax, the corporate authorities of the
17county shall on or not later than 5 days after passage of the
18ordinance or resolution discontinuing the tax or effecting a
19change in rate transmit to the Department of Revenue a
20certified copy of the ordinance or resolution effecting such
21change or discontinuance.
22    The Department of Revenue must upon the request of the
23County Clerk or County Board submit to a county a list of those
24persons who are registered with the Department to pay
25automobile renting occupation tax within the unincorporated
26area of that governmental unit. This list shall contain only

 

 

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1the names of persons who have paid the tax and not the amount
2of tax paid by such person.
3    This Section shall be known and may be cited as the "County
4Automobile Renting Occupation Tax Law".
5(Source: P.A. 86-962.)
 
6    (55 ILCS 5/5-1033)  (from Ch. 34, par. 5-1033)
7    Sec. 5-1033. County Automobile Renting Use Tax. The
8corporate authorities of a county may impose a tax upon the
9privilege of using, in such county an automobile which is
10rented from a rentor outside Illinois, and which is titled or
11registered with an agency of this State's government, at a rate
12not to exceed 1% of the rental price of such automobile. Such
13tax shall be collected from persons whose Illinois address for
14titling or registration purposes is given as being in the
15unincorporated area of such county. Such tax shall be collected
16by the Department of Revenue for any county imposing such tax.
17Such tax must be paid to the State, or an exemption
18determination must be obtained from the Department of Revenue,
19before the title or certificate of registration for the
20property may be issued. The tax or proof of exemption may be
21transmitted to the Department by way of the State agency with
22which, or State officer with whom, the tangible personal
23property must be titled or registered if the Department and
24such agency or State officer determine that this procedure will
25expedite the processing of applications for title or

 

 

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1registration.
2    The Department shall have full power to administer and
3enforce this Section; to collect all taxes, penalties and
4interest due hereunder; to dispose of taxes, penalties and
5interest so collected in the manner hereinafter provided, and
6to determine all rights to credit memoranda or refunds arising
7on account of the erroneous payment of tax, penalty or interest
8hereunder. In the administration of, and compliance with, this
9Section, the Department and persons who are subject to this
10Section shall have the same rights, remedies, privileges,
11immunities, powers and duties, and be subject to the same
12conditions, restrictions, limitations, penalties and
13definitions of terms, and employ the same modes of procedure,
14as are prescribed in Sections 2 and 4 (except provisions
15pertaining to the State rate of tax; and with relation to the
16provisions of the "Use Tax Act" referred to therein, except
17provisions concerning collection or refunding of the tax by
18retailers, and except the provisions of Section 19 pertaining
19to claims by retailers and except the last paragraph concerning
20refunds, and except that credit memoranda issued hereunder may
21not be used to discharge any State tax liability) of the
22"Automobile Renting Occupation and Use Tax Act", as the same
23are now or may hereafter be amended, which are not inconsistent
24with this Section, as fully as if provisions contained in those
25Sections of said Act were set forth herein.
26    Whenever the Department determines that a refund should be

 

 

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1made under this Section to a claimant instead of issuing a
2credit memorandum, the Department shall notify the State
3Comptroller, who shall cause the order to be drawn for the
4amount specified, and to the person named, in such notification
5from the Department. Such refund shall be paid by the State
6Treasurer out of the county automobile renting tax fund.
7    The Department shall forthwith pay over to the State
8Treasurer, ex-officio, as trustee, all taxes, penalties and
9interest collected hereunder. On or before the 25th day of each
10calendar month, the Department shall prepare and certify to the
11State Comptroller the disbursement of stated sums of money to
12named counties from which the Department, during the second
13preceding calendar month, collected taxes hereunder from
14persons whose Illinois address for titling or registration
15purposes is given as being in the unincorporated area of such
16county. The amount to be paid to each county shall be the
17amount (not including credit memoranda) collected hereunder
18during the second preceding calendar month by the Department,
19and not including an amount equal to the amount of refunds made
20during the second preceding calendar month by the Department on
21behalf of such county, less 2% of such balance, which sum shall
22be retained by the State Treasurer to cover the costs incurred
23by the Department in administering and enforcing this Section
24as provided herein. The Department at the time of each monthly
25disbursement to the counties shall prepare and certify to the
26State Comptroller the amount, so retained by the State

 

 

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1Treasurer, to be paid into the General Revenue Fund of the
2State Treasury. Within 10 days after receipt, by the State
3Comptroller, of the disbursement certification to the counties
4and the General Revenue Fund, provided for in this Section to
5be given to the State Comptroller by the Department, the State
6Comptroller shall cause the orders to be drawn for the
7respective amounts in accordance with the directions contained
8in such certification.
9    An ordinance or resolution imposing or discontinuing the
10tax under this Section or effecting a change in the rate
11thereof shall be adopted and a certified copy thereof filed
12with the Department either: (i) on or before the first day of
13April, in which case the Department shall proceed to administer
14and enforce this Section as of the first day of July next
15following the adoption or filing; or (ii) on or before the
16first day of October, in which case the Department shall
17proceed to administer and enforce this Section as of the first
18day of January next following the adoption and filing.
19    An ordinance or resolution imposing a tax hereunder or
20effecting a change in the rate thereof shall be effective on
21the first day of the calendar month next following the month in
22which such ordinance or resolution is passed. The corporate
23authorities of any county which levies a tax authorized by this
24Section shall transmit to the Department of Revenue on or not
25later than 5 days after passage of the ordinance or resolution
26a certified copy of the ordinance or resolution imposing such

 

 

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1tax whereupon the Department of Revenue shall proceed to
2administer and enforce this Section on behalf of such county as
3of the effective date of the ordinance or resolution. Upon a
4change in rate of a tax levied hereunder, or upon the
5discontinuance of the tax, the corporate authorities of the
6county shall, on or not later than 5 days after passage of the
7ordinance or resolution discontinuing the tax or effecting a
8change in rate, transmit to the Department of Revenue a
9certified copy of the ordinance or resolution effecting such
10change or discontinuance.
11    This Section shall be known and may be cited as the "County
12Automobile Renting Use Tax Law".
13(Source: P.A. 86-962.)
 
14    Section 40. The Illinois Municipal Code is amended by
15changing Sections 8-11-7 and 8-11-8 as follows:
 
16    (65 ILCS 5/8-11-7)  (from Ch. 24, par. 8-11-7)
17    Sec. 8-11-7. Municipal Automobile Renting Occupation Tax.
18The corporate authorities of a municipality may impose a tax
19upon all persons engaged in the business of renting automobiles
20in the municipality at the rate of not to exceed 1% of the
21gross receipts from such business. The tax imposed by a
22municipality pursuant to this Section and all civil penalties
23that may be assessed as an incident thereof shall be collected
24and enforced by the State Department of Revenue. The

 

 

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1certificate of registration which is issued by the Department
2to a retailer under the Retailers' Occupation Tax Act or under
3the Automobile Renting Occupation and Use Tax Act shall permit
4such person to engage in a business which is taxable under any
5ordinance or resolution enacted pursuant to this Section
6without registering separately with the Department under such
7ordinance or resolution or under this Section. The Department
8shall have full power to administer and enforce this Section;
9to collect all taxes and penalties due hereunder; to dispose of
10taxes and penalties so collected in the manner hereinafter
11provided; and to determine all rights to credit memoranda,
12arising on account of the erroneous payment of tax or penalty
13hereunder. In the administration of, and compliance with, this
14Section, the Department and persons who are subject to this
15Section shall have the same rights, remedies, privileges,
16immunities, powers and duties, and be subject to the same
17conditions, restrictions, limitations, penalties and
18definitions of terms, and employ the same modes of procedure,
19as are prescribed in Sections 2 and 3 (in respect to all
20provisions therein other than the State rate of tax; and with
21relation to the provisions of the "Retailers' Occupation Tax"
22referred to therein, except as to the disposition of taxes and
23penalties collected, and except for the provision allowing
24retailers a deduction from the tax to cover certain costs, and
25except that credit memoranda issued hereunder may not be used
26to discharge any State tax liability) of the Automobile Renting

 

 

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1Occupation and Use Tax Act, as fully as if those provisions
2were set forth herein.
3    Persons subject to any tax imposed pursuant to the
4authority granted in this Section may reimburse themselves for
5their tax liability hereunder by separately stating such tax as
6an additional charge, which charge may be stated in
7combination, in a single amount, with State tax which sellers
8are required to collect under the Automobile Renting Occupation
9and Use Tax Act pursuant to such bracket schedules as the
10Department may prescribe.
11    Whenever the Department determines that a refund should be
12made under this Section to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the order to be drawn for the
15amount specified, and to the person named, in such notification
16from the Department. Such refund shall be paid by the State
17Treasurer out of the municipal automobile renting tax fund.
18    The Department shall forthwith pay over to the State
19Treasurer, ex-officio, as trustee, all taxes and penalties
20collected hereunder. On or before the 25th day of each calendar
21month, the Department shall prepare and certify to the
22Comptroller the disbursement of stated sums of money to named
23municipalities, the municipalities to be those from which
24rentors have paid taxes or penalties hereunder to the
25Department during the second preceding calendar month. The
26amount to be paid to each municipality shall be the amount (not

 

 

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1including credit memoranda) collected hereunder during the
2second preceding calendar month by the Department, and not
3including an amount equal to the amount of refunds made during
4the second preceding calendar month by the Department on behalf
5of such municipality, less 1.6% of such balance, which sum
6shall be retained by the State Treasurer to cover the costs
7incurred by the Department in administering and enforcing this
8Section as provided herein. The Department at the time of each
9monthly disbursement to the municipalities shall prepare and
10certify to the Comptroller the amount, so retained by the State
11Treasurer, to be paid into the General Revenue Fund of the
12State Treasury. Within 10 days after receipt, by the
13Comptroller, of the disbursement certification to the
14municipalities and the General Revenue Fund, provided for in
15this Section to be given to the Comptroller by the Department,
16the Comptroller shall cause the orders to be drawn for the
17respective amounts in accordance with the directions contained
18in such certification.
19    Nothing in this Section shall be construed to authorize a
20municipality to impose a tax upon the privilege of engaging in
21any business which under the Constitution of the United States
22may not be made the subject of taxation by this State.
23    An ordinance or resolution imposing or discontinuing the
24tax under this Section or effecting a change in the rate
25thereof shall be adopted and a certified copy thereof filed
26with the Department either: (i) on or before the first day of

 

 

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1April, in which case the Department shall proceed to administer
2and enforce this Section as of the first day of July next
3following the adoption or filing; or (ii) on or before the
4first day of October, in which case the Department shall
5proceed to administer and enforce this Section as of the first
6day of January next following the adoption and filing.
7    An ordinance or resolution imposing a tax hereunder or
8effecting a change in the rate thereof shall be effective on
9the first day of the calendar month next following publication
10as provided in Section 1-2-4. The corporate authorities of any
11municipality which levies a tax authorized by this Section
12shall transmit to the Department of Revenue on or not later
13than 5 days after publication a certified copy of the ordinance
14or resolution imposing such tax whereupon the Department of
15Revenue shall proceed to administer and enforce this Section on
16behalf of such municipality as of the effective date of the
17ordinance or resolution. Upon a change in rate of a tax levied
18hereunder, or upon the discontinuance of the tax, the corporate
19authorities of the municipality shall on or not later than 5
20days after publication of the ordinance or resolution
21discontinuing the tax or effecting a change in rate transmit to
22the Department of Revenue a certified copy of the ordinance or
23resolution effecting such change or discontinuance.
24    The Department of Revenue must upon the request of the
25municipal clerk, city council or village board of trustees
26submit to a city, village or incorporated town a list of those

 

 

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1persons who are registered with the Department to pay
2automobile renting occupation tax within that governmental
3unit. This list shall contain only the names of persons who
4have paid the tax and not the amount of tax paid by such
5person.
6    As used in this Section, "municipal" and "municipality"
7means a city, village or incorporated town, including an
8incorporated town which has superseded a civil township.
9    This Section shall be known and may be cited as the
10"Municipal Automobile Renting Occupation Tax Act".
11(Source: P.A. 86-1475.)
 
12    (65 ILCS 5/8-11-8)  (from Ch. 24, par. 8-11-8)
13    Sec. 8-11-8. Municipal Automobile Renting Use Tax. The
14corporate authorities of a municipality may impose a tax upon
15the privilege of using, in such municipality, an automobile
16which is rented from a rentor outside Illinois, and which is
17titled or registered with an agency of this State's government,
18at a rate not to exceed 1% of the rental price of such
19automobile. Such tax shall be collected from persons whose
20Illinois address for titling or registration purposes is given
21as being in such municipality. Such tax shall be collected by
22the Department of Revenue for any municipality imposing such
23tax. Such tax must be paid to the State, or an exemption
24determination must be obtained from the Department of Revenue,
25before the title or certificate of registration for the

 

 

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1property may be issued. The tax or proof of exemption may be
2transmitted to the Department by way of the State agency with
3which, or State officer with whom, the tangible personal
4property must be titled or registered if the Department and
5such agency or State officer determine that this procedure will
6expedite the processing of applications for title or
7registration.
8    The Department shall have full power to administer and
9enforce this Section; to collect all taxes, penalties and
10interest due hereunder; to dispose of taxes, penalties and
11interest so collected in the manner hereinafter provided, and
12to determine all rights to credit memoranda or refunds arising
13on account of the erroneous payment of tax, penalty or interest
14hereunder. In the administration of, and compliance with, this
15Section, the Department and persons who are subject to this
16Section shall have the same rights, remedies, privileges,
17immunities, powers and duties, and be subject to the same
18conditions, restrictions, limitations, penalties and
19definitions of terms, and employ the same modes of procedure as
20are prescribed in Sections 2 and 4 (except provisions
21pertaining to the State rate of tax; and with relation to the
22provisions of the "Use Tax Act" referred to therein, except
23provisions concerning collection or refunding of the tax by
24retailers, and except the provisions of Section 19 pertaining
25to claims by retailers and except the last paragraph concerning
26refunds, and except that credit memoranda issued hereunder may

 

 

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1not be used to discharge any State tax liability) of the
2"Automobile Renting Occupation and Use Tax Act", enacted by the
3Eighty-second General Assembly, as the same are now or may
4hereafter be amended, which are not inconsistent with this
5Section, as fully as if provisions contained in those Sections
6of said Act were set forth herein.
7    Whenever the Department determines that a refund should be
8made under this Section to a claimant instead of issuing a
9credit memorandum, the Department shall notify the State
10Comptroller, who shall cause the order to be drawn for the
11amount specified, and to the person named, in such notification
12from the Department. Such refund shall be paid by the State
13Treasurer out of the municipal automobile renting tax fund.
14    The Department shall forthwith pay over to the State
15Treasurer, ex-officio, as trustee, all taxes, penalties and
16interest collected hereunder. On or before the 25th day of each
17calendar month, the Department shall prepare and certify to the
18State Comptroller the disbursement of stated sums of money to
19named municipalities, the municipality in each instance to be
20that municipality from which the Department, during the second
21preceding calendar month, collected taxes hereunder from
22persons whose Illinois address for titling or registration
23purposes is given as being in such municipality. The amount to
24be paid to each municipality shall be the amount (not including
25credit memoranda) collected hereunder during the second
26preceding calendar month by the Department, and not including

 

 

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1an amount equal to the amount of refunds made during the second
2preceding calendar month by the Department on behalf of such
3municipality, less 1.6% of such balance, which sum shall be
4retained by the State Treasurer to cover the costs incurred by
5the Department in administering and enforcing this Section as
6provided herein. The Department at the time of each monthly
7disbursement to the municipalities shall prepare and certify to
8the State Comptroller the amount, so retained by the State
9Treasurer, to be paid into the General Revenue Fund of the
10State Treasury. Within 10 days after receipt, by the State
11Comptroller, of the disbursement certification to the
12municipalities and the General Revenue Fund, provided or in
13this Section to be given to the State Comptroller by the
14Department, the State Comptroller shall cause the orders to be
15drawn for the respective amounts in accordance with the
16directions contained in such certification.
17    An ordinance or resolution imposing or discontinuing the
18tax under this Section or effecting a change in the rate
19thereof shall be adopted and a certified copy thereof filed
20with the Department either: (i) on or before the first day of
21April, in which case the Department shall proceed to administer
22and enforce this Section as of the first day of July next
23following the adoption or filing; or (ii) on or before the
24first day of October, in which case the Department shall
25proceed to administer and enforce this Section as of the first
26day of January next following the adoption and filing.

 

 

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1    An ordinance or resolution imposing a tax hereunder or
2effecting a change in the rate thereof shall be effective on
3the first day of the second calendar month next following
4publication as provided in Section 1-2-4. The corporate
5authorities of any municipality which levies a tax authorized
6by this Section shall transmit to the Department of Revenue not
7later than 5 days after publication a certified copy of the
8ordinance or resolution imposing such tax whereupon the
9Department of Revenue shall proceed to administer and enforce
10this Section on behalf of such municipality as of the effective
11date of the ordinance or resolution. Upon a change in rate of a
12tax levied hereunder, or upon the discontinuance of the tax,
13the corporate authorities of the municipality shall, on or not
14later than 5 days after publication of the ordinance or
15resolution discontinuing the tax or effecting a change in rate,
16transmit to the Department of Revenue a certified copy of the
17ordinance or resolution effecting such change or
18discontinuance.
19    As used in this Section, "Municipal" and "Municipality"
20means a city, village or incorporated town, including an
21incorporated town which has superseded a civil township.
22    This Section shall be known and may be cited as the
23"Municipal Automobile Renting Use Tax Act".
24(Source: P.A. 84-149.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.