Sen. Toi W. Hutchinson

Filed: 4/15/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 514

2    AMENDMENT NO. ______. Amend Senate Bill 514 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1    assistance provided in the tax statutes, as reported to the
2    Department of Revenue on tax returns filed during the
3    fiscal year.
4        (2) All State development assistance.
5    (b) All data contained in the Unified Economic Development
6Budget presented to the General Assembly shall be fully subject
7to the Freedom of Information Act.
8    (c) The Department of Revenue shall submit a report of the
9amounts in subdivision (a)(1) of this Section to the
10Department, which may append such report to the Unified
11Economic Development Budget rather than separately reporting
12such amounts.
13(Source: P.A. 93-552, eff. 8-20-03.)
 
14    Section 10. The Use Tax Act is amended by changing Section
153-5 as follows:
 
16    (35 ILCS 105/3-5)
17    Sec. 3-5. Exemptions. Use of the following tangible
18personal property is exempt from the tax imposed by this Act:
19    (1) Personal property purchased from a corporation,
20society, association, foundation, institution, or
21organization, other than a limited liability company, that is
22organized and operated as a not-for-profit service enterprise
23for the benefit of persons 65 years of age or older if the
24personal property was not purchased by the enterprise for the

 

 

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

 

 

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1persons 55 years of age or older. A limited liability company
2may qualify for the exemption under this paragraph only if the
3limited liability company is organized and operated
4exclusively for educational purposes. On and after July 1,
51987, however, no entity otherwise eligible for this exemption
6shall make tax-free purchases unless it has an active exemption
7identification number issued by the Department.
8    (5) Until July 1, 2003, a passenger car that is a
9replacement vehicle to the extent that the purchase price of
10the car is subject to the Replacement Vehicle Tax.
11    (6) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new and
14used, and including that manufactured on special order,
15certified by the purchaser to be used primarily for graphic
16arts production, and including machinery and equipment
17purchased for lease. Equipment includes chemicals or chemicals
18acting as catalysts but only if the chemicals or chemicals
19acting as catalysts effect a direct and immediate change upon a
20graphic arts product.
21    (7) Farm chemicals.
22    (8) 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    (9) Personal property purchased from a teacher-sponsored

 

 

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

 

 

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1installed on farm machinery and equipment including, but not
2limited to, tractors, harvesters, sprayers, planters, seeders,
3or spreaders. Precision farming equipment includes, but is not
4limited to, soil testing sensors, computers, monitors,
5software, global positioning and mapping systems, and other
6such equipment.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals. This item (11) is exempt from the
14provisions of Section 3-90.
15    (12) Until June 30, 2013, fuel and petroleum products sold
16to or used by an air common carrier, certified by the carrier
17to be used for consumption, shipment, or storage in the conduct
18of its business as an air common carrier, for a flight destined
19for or returning from a location or locations outside the
20United States without regard to previous or subsequent domestic
21stopovers.
22    Beginning July 1, 2013, fuel and petroleum products sold to
23or used by an air carrier, certified by the carrier to be used
24for consumption, shipment, or storage in the conduct of its
25business as an air common carrier, for a flight that (i) is
26engaged in foreign trade or is engaged in trade between the

 

 

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

 

 

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1photoprocessing machinery and equipment purchased for lease.
2    (16) Coal and aggregate exploration, mining, off-highway
3hauling, processing, maintenance, and reclamation equipment,
4including replacement parts and equipment, and including
5equipment purchased for lease, but excluding motor vehicles
6required to be registered under the Illinois Vehicle Code. The
7changes made to this Section by Public Act 97-767 apply on and
8after July 1, 2003, but no claim for credit or refund is
9allowed on or after August 16, 2013 (the effective date of
10Public Act 98-456) for such taxes paid during the period
11beginning July 1, 2003 and ending on August 16, 2013 (the
12effective date of Public Act 98-456).
13    (17) Until July 1, 2003, distillation machinery and
14equipment, sold as a unit or kit, assembled or installed by the
15retailer, certified by the user to be used only for the
16production of ethyl alcohol that will be used for consumption
17as motor fuel or as a component of motor fuel for the personal
18use of the user, and not subject to sale or resale.
19    (18) Manufacturing and assembling machinery and equipment
20used primarily in the process of manufacturing or assembling
21tangible personal property for wholesale or retail sale or
22lease, whether that sale or lease is made directly by the
23manufacturer or by some other person, whether the materials
24used in the process are owned by the manufacturer or some other
25person, or whether that sale or lease is made apart from or as
26an incident to the seller's engaging in the service occupation

 

 

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1of producing machines, tools, dies, jigs, patterns, gauges, or
2other similar items of no commercial value on special order for
3a particular purchaser. The exemption provided by this
4paragraph (18) does not include machinery and equipment used in
5(i) the generation of electricity for wholesale or retail sale;
6(ii) the generation or treatment of natural or artificial gas
7for wholesale or retail sale that is delivered to customers
8through pipes, pipelines, or mains; or (iii) the treatment of
9water for wholesale or retail sale that is delivered to
10customers through pipes, pipelines, or mains. The provisions of
11Public Act 98-583 are declaratory of existing law as to the
12meaning and scope of this exemption.
13    (19) Personal property delivered to a purchaser or
14purchaser's donee inside Illinois when the purchase order for
15that personal property was received by a florist located
16outside Illinois who has a florist located inside Illinois
17deliver the personal property.
18    (20) Semen used for artificial insemination of livestock
19for direct agricultural production.
20    (21) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (21) is exempt from the provisions
26of Section 3-90, and the exemption provided for under this item

 

 

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1(21) applies for all periods beginning May 30, 1995, but no
2claim for credit or refund is allowed on or after January 1,
32008 for such taxes paid during the period beginning May 30,
42000 and ending on January 1, 2008.
5    (22) 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 Service Use Tax Act, as the
17case may be, based on the fair market value of the property at
18the time the non-qualifying use occurs. No lessor shall collect
19or attempt to collect an amount (however designated) that
20purports to reimburse that lessor for the tax imposed by this
21Act or the Service Use Tax Act, as the case may be, if the tax
22has not been paid by the lessor. If a lessor improperly
23collects any such amount from the lessee, the lessee shall have
24a legal right to claim a refund of that amount from the lessor.
25If, however, that amount is not refunded to the lessee for any
26reason, the lessor is liable to pay that amount to the

 

 

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1Department.
2    (23) Personal property purchased by a lessor who leases the
3property, under a lease of one year or longer executed or in
4effect at the time the lessor would otherwise be subject to the
5tax imposed by this Act, to a governmental body that has been
6issued an active sales tax exemption identification number by
7the Department under Section 1g of the Retailers' Occupation
8Tax Act. If the property is leased in a manner that does not
9qualify for this exemption or used in any other non-exempt
10manner, the lessor shall be liable for the tax imposed under
11this Act or the Service Use Tax Act, as the case may be, based
12on the fair market value of the property at the time the
13non-qualifying use occurs. No lessor shall collect or attempt
14to collect an amount (however designated) that purports to
15reimburse that lessor for the tax imposed by this Act or the
16Service Use Tax Act, as the case may be, if the tax has not been
17paid by the lessor. If a lessor improperly collects any such
18amount from the lessee, the lessee shall have a legal right to
19claim a refund of that amount from the lessor. If, however,
20that amount is not refunded to the lessee for any reason, the
21lessor is liable to pay that amount to the Department.
22    (24) 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    (25) 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    (26) Beginning July 1, 1999, game or game birds purchased
19at a "game breeding and hunting preserve area" as that term is
20used in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-90.
22    (27) 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    (28) 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 3-90.
2    (29) 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 3-90.
12    (30) Beginning January 1, 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 in a licensed facility as defined
23in the ID/DD Community Care Act, the MC/DD Act, or the
24Specialized Mental Health Rehabilitation Act of 2013.
25    (31) Beginning on the effective date of this amendatory Act
26of the 92nd General Assembly, computers and communications

 

 

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

 

 

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1longer executed or in effect at the time the lessor would
2otherwise be subject to the tax imposed by this Act, to a
3governmental body that has been issued an active sales tax
4exemption identification number by the Department under
5Section 1g of the Retailers' Occupation Tax Act. If the
6property is leased in a manner that does not qualify for this
7exemption or used in any other nonexempt manner, the lessor
8shall be liable for the tax imposed under this Act or the
9Service Use Tax Act, as the case may be, based on the fair
10market value of the property at the time the nonqualifying use
11occurs. No lessor shall collect or attempt to collect an amount
12(however designated) that purports to reimburse that lessor for
13the tax imposed by this Act or the Service Use Tax Act, as the
14case may be, if the tax has not been paid by the lessor. If a
15lessor improperly collects any such amount from the lessee, the
16lessee shall have a legal right to claim a refund of that
17amount from the lessor. If, however, that amount is not
18refunded to the lessee for any reason, the lessor is liable to
19pay that amount to the Department. This paragraph is exempt
20from the provisions of Section 3-90.
21    (33) On and after July 1, 2003 and through June 30, 2004,
22the use in this State of motor vehicles of the second division
23with a gross vehicle weight in excess of 8,000 pounds and that
24are subject to the commercial distribution fee imposed under
25Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
261, 2004 and through June 30, 2005, the use in this State of

 

 

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1motor vehicles of the second division: (i) with a gross vehicle
2weight rating in excess of 8,000 pounds; (ii) that are subject
3to the commercial distribution fee imposed under Section
43-815.1 of the Illinois Vehicle Code; and (iii) that are
5primarily used for commercial purposes. Through June 30, 2005,
6this exemption applies to repair and replacement parts added
7after the initial purchase of such a motor vehicle if that
8motor vehicle is used in a manner that would qualify for the
9rolling stock exemption otherwise provided for in this Act. For
10purposes of this paragraph, the term "used for commercial
11purposes" means the transportation of persons or property in
12furtherance of any commercial or industrial enterprise,
13whether for-hire or not.
14    (34) Beginning January 1, 2008, tangible personal property
15used in the construction or maintenance of a community water
16supply, as defined under Section 3.145 of the Environmental
17Protection Act, that is operated by a not-for-profit
18corporation that holds a valid water supply permit issued under
19Title IV of the Environmental Protection Act. This paragraph is
20exempt from the provisions of Section 3-90.
21    (35) Beginning January 1, 2010, materials, parts,
22equipment, components, and furnishings incorporated into or
23upon an aircraft as part of the modification, refurbishment,
24completion, replacement, repair, or maintenance of the
25aircraft. This exemption includes consumable supplies used in
26the modification, refurbishment, completion, replacement,

 

 

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1repair, and maintenance of aircraft, but excludes any
2materials, parts, equipment, components, and consumable
3supplies used in the modification, replacement, repair, and
4maintenance of aircraft engines or power plants, whether such
5engines or power plants are installed or uninstalled upon any
6such aircraft. "Consumable supplies" include, but are not
7limited to, adhesive, tape, sandpaper, general purpose
8lubricants, cleaning solution, latex gloves, and protective
9films. This exemption applies only to the use of qualifying
10tangible personal property by persons who modify, refurbish,
11complete, repair, replace, or maintain aircraft and who (i)
12hold an Air Agency Certificate and are empowered to operate an
13approved repair station by the Federal Aviation
14Administration, (ii) have a Class IV Rating, and (iii) conduct
15operations in accordance with Part 145 of the Federal Aviation
16Regulations. The exemption does not include aircraft operated
17by a commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part 129
19of the Federal Aviation Regulations. The changes made to this
20paragraph (35) by Public Act 98-534 are declarative of existing
21law.
22    (36) Tangible personal property purchased by a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

 

 

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1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt instruments
5issued by the public-facilities corporation in connection with
6the development of the municipal convention hall. This
7exemption includes existing public-facilities corporations as
8provided in Section 11-65-25 of the Illinois Municipal Code.
9This paragraph is exempt from the provisions of Section 3-90.
10    (37) Personal property purchased by a purchaser who is
11exempt from the tax imposed by this Act by operation of federal
12law. This paragraph is exempt from the provisions of Section
133-90.
14(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1598-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
161-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
177-29-15.)
 
18    Section 15. The Service Use Tax Act is amended by changing
19Section 3-5 as follows:
 
20    (35 ILCS 110/3-5)
21    Sec. 3-5. Exemptions. Use of the following tangible
22personal property is exempt from the tax imposed by this Act:
23    (1) Personal property purchased from a corporation,
24society, association, foundation, institution, or

 

 

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

 

 

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1country, and bullion.
2    (5) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order or
6purchased for lease, certified by the purchaser to be used
7primarily for graphic arts production. Equipment includes
8chemicals or chemicals acting as catalysts but only if the
9chemicals or chemicals acting as catalysts effect a direct and
10immediate change upon a graphic arts product.
11    (6) Personal property purchased from a teacher-sponsored
12student organization affiliated with an elementary or
13secondary school located in Illinois.
14    (7) Farm machinery and equipment, both new and used,
15including that manufactured on special order, certified by the
16purchaser to be used primarily for production agriculture or
17State or federal agricultural programs, including individual
18replacement parts for the machinery and equipment, including
19machinery and equipment purchased for lease, and including
20implements of husbandry defined in Section 1-130 of the
21Illinois Vehicle Code, farm machinery and agricultural
22chemical and fertilizer spreaders, and nurse wagons required to
23be registered under Section 3-809 of the Illinois Vehicle Code,
24but excluding other motor vehicles required to be registered
25under the Illinois Vehicle Code. Horticultural polyhouses or
26hoop houses used for propagating, growing, or overwintering

 

 

09900SB0514sam001- 22 -LRB099 03081 HLH 47596 a

1plants shall be considered farm machinery and equipment under
2this item (7). Agricultural chemical tender tanks and dry boxes
3shall include units sold separately from a motor vehicle
4required to be licensed and units sold mounted on a motor
5vehicle required to be licensed if the selling price of the
6tender is separately stated.
7    Farm machinery and equipment shall include precision
8farming equipment that is installed or purchased to be
9installed on farm machinery and equipment including, but not
10limited to, tractors, harvesters, sprayers, planters, seeders,
11or spreaders. Precision farming equipment includes, but is not
12limited to, soil testing sensors, computers, monitors,
13software, global positioning and mapping systems, and other
14such equipment.
15    Farm machinery and equipment also includes computers,
16sensors, software, and related equipment used primarily in the
17computer-assisted operation of production agriculture
18facilities, equipment, and activities such as, but not limited
19to, the collection, monitoring, and correlation of animal and
20crop data for the purpose of formulating animal diets and
21agricultural chemicals. This item (7) is exempt from the
22provisions of Section 3-75.
23    (8) Until June 30, 2013, fuel and petroleum products sold
24to or used by an air common carrier, certified by the carrier
25to be used for consumption, shipment, or storage in the conduct
26of its business as an air common carrier, for a flight destined

 

 

09900SB0514sam001- 23 -LRB099 03081 HLH 47596 a

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

 

 

09900SB0514sam001- 24 -LRB099 03081 HLH 47596 a

1and pump-jack units, (iv) storage tanks and flow lines, (v) any
2individual replacement part for oil field exploration,
3drilling, and production equipment, and (vi) machinery and
4equipment purchased for lease; but excluding motor vehicles
5required to be registered under the Illinois Vehicle Code.
6    (11) Proceeds from the sale of photoprocessing machinery
7and equipment, including repair and replacement parts, both new
8and used, including that manufactured on special order,
9certified by the purchaser to be used primarily for
10photoprocessing, and including photoprocessing machinery and
11equipment purchased for lease.
12    (12) Coal and aggregate exploration, mining, off-highway
13hauling, processing, maintenance, and reclamation equipment,
14including replacement parts and equipment, and including
15equipment purchased for lease, but excluding motor vehicles
16required to be registered under the Illinois Vehicle Code. The
17changes made to this Section by Public Act 97-767 apply on and
18after July 1, 2003, but no claim for credit or refund is
19allowed on or after August 16, 2013 (the effective date of
20Public Act 98-456) for such taxes paid during the period
21beginning July 1, 2003 and ending on August 16, 2013 (the
22effective date of Public Act 98-456).
23    (13) Semen used for artificial insemination of livestock
24for direct agricultural production.
25    (14) Horses, or interests in horses, registered with and
26meeting the requirements of any of the Arabian Horse Club

 

 

09900SB0514sam001- 25 -LRB099 03081 HLH 47596 a

1Registry of America, Appaloosa Horse Club, American Quarter
2Horse Association, United States Trotting Association, or
3Jockey Club, as appropriate, used for purposes of breeding or
4racing for prizes. This item (14) is exempt from the provisions
5of Section 3-75, and the exemption provided for under this item
6(14) applies for all periods beginning May 30, 1995, but no
7claim for credit or refund is allowed on or after the effective
8date of this amendatory Act of the 95th General Assembly for
9such taxes paid during the period beginning May 30, 2000 and
10ending on the effective date of this amendatory Act of the 95th
11General Assembly.
12    (15) Computers and communications equipment utilized for
13any hospital purpose and equipment used in the diagnosis,
14analysis, or treatment of hospital patients purchased by a
15lessor who leases the equipment, under a lease of one year or
16longer executed or in effect at the time the lessor would
17otherwise be subject to the tax imposed by this Act, to a
18hospital that has been issued an active tax exemption
19identification number by the Department under Section 1g of the
20Retailers' Occupation Tax Act. If the equipment is leased in a
21manner that does not qualify for this exemption or is used in
22any other non-exempt manner, the lessor shall be liable for the
23tax imposed under this Act or the Use Tax Act, as the case may
24be, based on the fair market value of the property at the time
25the non-qualifying use occurs. No lessor shall collect or
26attempt to collect an amount (however designated) that purports

 

 

09900SB0514sam001- 26 -LRB099 03081 HLH 47596 a

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

 

 

09900SB0514sam001- 27 -LRB099 03081 HLH 47596 a

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

 

 

09900SB0514sam001- 28 -LRB099 03081 HLH 47596 a

1provisions of Section 3-75.
2    (20) A motor vehicle, as that term is defined in Section
31-146 of the Illinois Vehicle Code, that is donated to a
4corporation, limited liability company, society, association,
5foundation, or institution that is determined by the Department
6to be organized and operated exclusively for educational
7purposes. For purposes of this exemption, "a corporation,
8limited liability company, society, association, foundation,
9or institution organized and operated exclusively for
10educational purposes" means all tax-supported public schools,
11private schools that offer systematic instruction in useful
12branches of learning by methods common to public schools and
13that compare favorably in their scope and intensity with the
14course of study presented in tax-supported schools, and
15vocational or technical schools or institutes organized and
16operated exclusively to provide a course of study of not less
17than 6 weeks duration and designed to prepare individuals to
18follow a trade or to pursue a manual, technical, mechanical,
19industrial, business, or commercial occupation.
20    (21) Beginning January 1, 2000, personal property,
21including food, purchased through fundraising events for the
22benefit of a public or private elementary or secondary school,
23a group of those schools, or one or more school districts if
24the events are sponsored by an entity recognized by the school
25district that consists primarily of volunteers and includes
26parents and teachers of the school children. This paragraph

 

 

09900SB0514sam001- 29 -LRB099 03081 HLH 47596 a

1does not apply to fundraising events (i) for the benefit of
2private home instruction or (ii) for which the fundraising
3entity purchases the personal property sold at the events from
4another individual or entity that sold the property for the
5purpose of resale by the fundraising entity and that profits
6from the sale to the fundraising entity. This paragraph is
7exempt from the provisions of Section 3-75.
8    (22) Beginning January 1, 2000 and through December 31,
92001, new or used automatic vending machines that prepare and
10serve hot food and beverages, including coffee, soup, and other
11items, and replacement parts for these machines. Beginning
12January 1, 2002 and through June 30, 2003, machines and parts
13for machines used in commercial, coin-operated amusement and
14vending business if a use or occupation tax is paid on the
15gross receipts derived from the use of the commercial,
16coin-operated amusement and vending machines. This paragraph
17is exempt from the provisions of Section 3-75.
18    (23) Beginning August 23, 2001 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages, soft
21drinks, and food that has been prepared for immediate
22consumption) and prescription and nonprescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

09900SB0514sam001- 30 -LRB099 03081 HLH 47596 a

1resides in a licensed long-term care facility, as defined in
2the Nursing Home Care Act, or in a licensed facility as defined
3in the ID/DD Community Care Act, the MC/DD Act, or the
4Specialized Mental Health Rehabilitation Act of 2013.
5    (24) Beginning on the effective date of this amendatory Act
6of the 92nd General Assembly, computers and communications
7equipment utilized for any hospital purpose and equipment used
8in the diagnosis, analysis, or treatment of hospital patients
9purchased by a lessor who leases the equipment, under a lease
10of one year or longer executed or in effect at the time the
11lessor would otherwise be subject to the tax imposed by this
12Act, to a hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. If the equipment is leased in a
15manner that does not qualify for this exemption or is used in
16any other nonexempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Use Tax Act, as the case may
18be, based on the fair market value of the property at the time
19the nonqualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that purports
21to reimburse that lessor for the tax imposed by this Act or the
22Use Tax Act, as the case may be, if the tax has not been paid by
23the lessor. If a lessor improperly collects any such amount
24from the lessee, the lessee shall have a legal right to claim a
25refund of that amount from the lessor. If, however, that amount
26is not refunded to the lessee for any reason, the lessor is

 

 

09900SB0514sam001- 31 -LRB099 03081 HLH 47596 a

1liable to pay that amount to the Department. This paragraph is
2exempt from the provisions of Section 3-75.
3    (25) Beginning on the effective date of this amendatory Act
4of the 92nd General Assembly, personal property purchased by a
5lessor who leases the property, under a lease of one year or
6longer executed or in effect at the time the lessor would
7otherwise be subject to the tax imposed by this Act, to a
8governmental body that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act. If the property is leased in a
11manner that does not qualify for this exemption or is used in
12any other nonexempt manner, the lessor shall be liable for the
13tax imposed under this Act or the Use Tax Act, as the case may
14be, based on the fair market value of the property at the time
15the nonqualifying use occurs. No lessor shall collect or
16attempt to collect an amount (however designated) that purports
17to reimburse that lessor for the tax imposed by this Act or the
18Use Tax Act, as the case may be, if the tax has not been paid by
19the lessor. If a lessor improperly collects any such amount
20from the lessee, the lessee shall have a legal right to claim a
21refund of that amount from the lessor. If, however, that amount
22is not refunded to the lessee for any reason, the lessor is
23liable to pay that amount to the Department. This paragraph is
24exempt from the provisions of Section 3-75.
25    (26) Beginning January 1, 2008, tangible personal property
26used in the construction or maintenance of a community water

 

 

09900SB0514sam001- 32 -LRB099 03081 HLH 47596 a

1supply, as defined under Section 3.145 of the Environmental
2Protection Act, that is operated by a not-for-profit
3corporation that holds a valid water supply permit issued under
4Title IV of the Environmental Protection Act. This paragraph is
5exempt from the provisions of Section 3-75.
6    (27) Beginning January 1, 2010, materials, parts,
7equipment, components, and furnishings incorporated into or
8upon an aircraft as part of the modification, refurbishment,
9completion, replacement, repair, or maintenance of the
10aircraft. This exemption includes consumable supplies used in
11the modification, refurbishment, completion, replacement,
12repair, and maintenance of aircraft, but excludes any
13materials, parts, equipment, components, and consumable
14supplies used in the modification, replacement, repair, and
15maintenance of aircraft engines or power plants, whether such
16engines or power plants are installed or uninstalled upon any
17such aircraft. "Consumable supplies" include, but are not
18limited to, adhesive, tape, sandpaper, general purpose
19lubricants, cleaning solution, latex gloves, and protective
20films. This exemption applies only to the use of qualifying
21tangible personal property transferred incident to the
22modification, refurbishment, completion, replacement, repair,
23or maintenance of aircraft by persons who (i) hold an Air
24Agency Certificate and are empowered to operate an approved
25repair station by the Federal Aviation Administration, (ii)
26have a Class IV Rating, and (iii) conduct operations in

 

 

09900SB0514sam001- 33 -LRB099 03081 HLH 47596 a

1accordance with Part 145 of the Federal Aviation Regulations.
2The exemption does not include aircraft operated by a
3commercial air carrier providing scheduled passenger air
4service pursuant to authority issued under Part 121 or Part 129
5of the Federal Aviation Regulations. The changes made to this
6paragraph (27) by Public Act 98-534 are declarative of existing
7law.
8    (28) Tangible personal property purchased by a
9public-facilities corporation, as described in Section
1011-65-10 of the Illinois Municipal Code, for purposes of
11constructing or furnishing a municipal convention hall, but
12only if the legal title to the municipal convention hall is
13transferred to the municipality without any further
14consideration by or on behalf of the municipality at the time
15of the completion of the municipal convention hall or upon the
16retirement or redemption of any bonds or other debt instruments
17issued by the public-facilities corporation in connection with
18the development of the municipal convention hall. This
19exemption includes existing public-facilities corporations as
20provided in Section 11-65-25 of the Illinois Municipal Code.
21This paragraph is exempt from the provisions of Section 3-75.
22    (29) Personal property purchased by a purchaser who is
23exempt from the tax imposed by this Act by operation of federal
24law. This paragraph is exempt from the provisions of Section
253-75.
26(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;

 

 

09900SB0514sam001- 34 -LRB099 03081 HLH 47596 a

198-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
27-16-14; 99-180, eff. 7-29-15.)
 
3    Section 20. The Service Occupation Tax Act is amended by
4changing Section 3-5 as follows:
 
5    (35 ILCS 115/3-5)
6    Sec. 3-5. Exemptions. The following tangible personal
7property is exempt from the tax imposed by this Act:
8    (1) Personal property sold by a corporation, society,
9association, foundation, institution, or organization, other
10than a limited liability company, that is organized and
11operated as a not-for-profit service enterprise for the benefit
12of persons 65 years of age or older if the personal property
13was not purchased by the enterprise for the purpose of resale
14by the enterprise.
15    (2) Personal property purchased by a not-for-profit
16Illinois county fair association for use in conducting,
17operating, or promoting the county fair.
18    (3) Personal property purchased by any not-for-profit arts
19or cultural organization that establishes, by proof required by
20the Department by rule, that it has received an exemption under
21Section 501(c)(3) of the Internal Revenue Code and that is
22organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,

 

 

09900SB0514sam001- 35 -LRB099 03081 HLH 47596 a

1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after the effective date
5of this amendatory Act of the 92nd General Assembly, however,
6an entity otherwise eligible for this exemption shall not make
7tax-free purchases unless it has an active identification
8number issued by the Department.
9    (4) Legal tender, currency, medallions, or gold or silver
10coinage issued by the State of Illinois, the government of the
11United States of America, or the government of any foreign
12country, and bullion.
13    (5) Until July 1, 2003 and beginning again on September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product.
22    (6) Personal property sold by a teacher-sponsored student
23organization affiliated with an elementary or secondary school
24located in Illinois.
25    (7) Farm machinery and equipment, both new and used,
26including that manufactured on special order, certified by the

 

 

09900SB0514sam001- 36 -LRB099 03081 HLH 47596 a

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 (7). Agricultural chemical tender tanks and dry boxes
14shall 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,

 

 

09900SB0514sam001- 37 -LRB099 03081 HLH 47596 a

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 (7) is exempt from the
7provisions of Section 3-55.
8    (8) 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    (9) Proceeds of mandatory service charges separately
26stated on customers' bills for the purchase and consumption of

 

 

09900SB0514sam001- 38 -LRB099 03081 HLH 47596 a

1food and beverages, to the extent that the proceeds of the
2service charge are in fact turned over as tips or as a
3substitute for tips to the employees who participate directly
4in preparing, serving, hosting or cleaning up the food or
5beverage function with respect to which the service charge is
6imposed.
7    (10) 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    (11) 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    (12) 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

 

 

09900SB0514sam001- 39 -LRB099 03081 HLH 47596 a

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    (13) Beginning January 1, 1992 and through June 30, 2016,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages, soft
9drinks and food that has been prepared for immediate
10consumption) and prescription and non-prescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the ID/DD Community Care Act, the MC/DD Act, or the
18Specialized Mental Health Rehabilitation Act of 2013.
19    (14) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (15) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (15) is exempt from the provisions

 

 

09900SB0514sam001- 40 -LRB099 03081 HLH 47596 a

1of Section 3-55, and the exemption provided for under this item
2(15) applies for all periods beginning May 30, 1995, but no
3claim for credit or refund is allowed on or after January 1,
42008 (the effective date of Public Act 95-88) for such taxes
5paid during the period beginning May 30, 2000 and ending on
6January 1, 2008 (the effective date of Public Act 95-88).
7    (16) Computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients sold to a lessor
10who leases the equipment, under a lease of one year or longer
11executed or in effect at the time of the purchase, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act.
15    (17) Personal property sold to a lessor who leases the
16property, under a lease of one year or longer executed or in
17effect at the time of the purchase, to a governmental body that
18has been issued an active tax exemption identification number
19by the Department under Section 1g of the Retailers' Occupation
20Tax Act.
21    (18) 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    (19) 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    (20) Beginning July 1, 1999, game or game birds sold at a
18"game breeding and hunting preserve area" as that term is used
19in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 3-55.
21    (21) 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,

 

 

09900SB0514sam001- 42 -LRB099 03081 HLH 47596 a

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    (22) 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 3-55.

 

 

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1    (23) 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 3-55.
11    (24) Beginning on the effective date of this amendatory Act
12of the 92nd General Assembly, computers and communications
13equipment utilized for any hospital purpose and equipment used
14in the diagnosis, analysis, or treatment of hospital patients
15sold to a lessor who leases the equipment, under a lease of one
16year or longer executed or in effect at the time of the
17purchase, to a hospital that has been issued an active tax
18exemption identification number by the Department under
19Section 1g of the Retailers' Occupation Tax Act. This paragraph
20is exempt from the provisions of Section 3-55.
21    (25) Beginning on the effective date of this amendatory Act
22of the 92nd General Assembly, personal property sold to a
23lessor who leases the property, under a lease of one year or
24longer executed or in effect at the time of the purchase, to a
25governmental body that has been issued an active tax exemption
26identification number by the Department under Section 1g of the

 

 

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1Retailers' Occupation Tax Act. This paragraph is exempt from
2the provisions of Section 3-55.
3    (26) Beginning on January 1, 2002 and through June 30,
42016, tangible personal property purchased from an Illinois
5retailer by a taxpayer engaged in centralized purchasing
6activities in Illinois who will, upon receipt of the property
7in Illinois, temporarily store the property in Illinois (i) for
8the purpose of subsequently transporting it outside this State
9for use or consumption thereafter solely outside this State or
10(ii) for the purpose of being processed, fabricated, or
11manufactured into, attached to, or incorporated into other
12tangible personal property to be transported outside this State
13and thereafter used or consumed solely outside this State. The
14Director of Revenue shall, pursuant to rules adopted in
15accordance with the Illinois Administrative Procedure Act,
16issue a permit to any taxpayer in good standing with the
17Department who is eligible for the exemption under this
18paragraph (26). The permit issued under this paragraph (26)
19shall authorize the holder, to the extent and in the manner
20specified in the rules adopted under this Act, to purchase
21tangible personal property from a retailer exempt from the
22taxes imposed by this Act. Taxpayers shall maintain all
23necessary books and records to substantiate the use and
24consumption of all such tangible personal property outside of
25the State of Illinois.
26    (27) Beginning January 1, 2008, tangible personal property

 

 

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1used in the construction or maintenance of a community water
2supply, as defined under Section 3.145 of the Environmental
3Protection Act, that is operated by a not-for-profit
4corporation that holds a valid water supply permit issued under
5Title IV of the Environmental Protection Act. This paragraph is
6exempt from the provisions of Section 3-55.
7    (28) Tangible personal property sold to a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt instruments
16issued by the public-facilities corporation in connection with
17the development of the municipal convention hall. This
18exemption includes existing public-facilities corporations as
19provided in Section 11-65-25 of the Illinois Municipal Code.
20This paragraph is exempt from the provisions of Section 3-55.
21    (29) Beginning January 1, 2010, materials, parts,
22equipment, components, and furnishings incorporated into or
23upon an aircraft as part of the modification, refurbishment,
24completion, replacement, repair, or maintenance of the
25aircraft. This exemption includes consumable supplies used in
26the modification, refurbishment, completion, replacement,

 

 

09900SB0514sam001- 46 -LRB099 03081 HLH 47596 a

1repair, and maintenance of aircraft, but excludes any
2materials, parts, equipment, components, and consumable
3supplies used in the modification, replacement, repair, and
4maintenance of aircraft engines or power plants, whether such
5engines or power plants are installed or uninstalled upon any
6such aircraft. "Consumable supplies" include, but are not
7limited to, adhesive, tape, sandpaper, general purpose
8lubricants, cleaning solution, latex gloves, and protective
9films. This exemption applies only to the transfer of
10qualifying tangible personal property incident to the
11modification, refurbishment, completion, replacement, repair,
12or maintenance of an aircraft by persons who (i) hold an Air
13Agency Certificate and are empowered to operate an approved
14repair station by the Federal Aviation Administration, (ii)
15have a Class IV Rating, and (iii) conduct operations in
16accordance with Part 145 of the Federal Aviation Regulations.
17The exemption does not include aircraft operated by a
18commercial air carrier providing scheduled passenger air
19service pursuant to authority issued under Part 121 or Part 129
20of the Federal Aviation Regulations. The changes made to this
21paragraph (29) by Public Act 98-534 are declarative of existing
22law.
23    (30) Personal property purchased by a purchaser who is
24exempt from use tax by operation of federal law. This paragraph
25is exempt from the provisions of Section 3-55.
26(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;

 

 

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198-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
27-16-14; 99-180, eff. 7-29-15.)
 
3    Section 25. The Retailers' Occupation Tax Act is amended by
4changing Section 2-5 as follows:
 
5    (35 ILCS 120/2-5)
6    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
7sale of the following tangible personal property are exempt
8from the tax imposed by this Act:
9    (1) Farm chemicals.
10    (2) Farm machinery and equipment, both new and used,
11including that manufactured on special order, certified by the
12purchaser to be used primarily for production agriculture or
13State or federal agricultural programs, including individual
14replacement parts for the machinery and equipment, including
15machinery and equipment purchased for lease, and including
16implements of husbandry defined in Section 1-130 of the
17Illinois Vehicle Code, farm machinery and agricultural
18chemical and fertilizer spreaders, and nurse wagons required to
19be registered under Section 3-809 of the Illinois Vehicle Code,
20but excluding other motor vehicles required to be registered
21under the Illinois Vehicle Code. Horticultural polyhouses or
22hoop houses used for propagating, growing, or overwintering
23plants shall be considered farm machinery and equipment under
24this item (2). Agricultural chemical tender tanks and dry boxes

 

 

09900SB0514sam001- 48 -LRB099 03081 HLH 47596 a

1shall include units sold separately from a motor vehicle
2required to be licensed and units sold mounted on a motor
3vehicle required to be licensed, if the selling price of the
4tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals. This item (2) is exempt from the
20provisions of Section 2-70.
21    (3) Until July 1, 2003, distillation machinery and
22equipment, sold as a unit or kit, assembled or installed by the
23retailer, certified by the user to be used only for the
24production of ethyl alcohol that will be used for consumption
25as motor fuel or as a component of motor fuel for the personal
26use of the user, and not subject to sale or resale.

 

 

09900SB0514sam001- 49 -LRB099 03081 HLH 47596 a

1    (4) Until July 1, 2003 and beginning again September 1,
22004 through August 30, 2014, graphic arts machinery and
3equipment, including repair and replacement parts, both new and
4used, and including that manufactured on special order or
5purchased for lease, certified by the purchaser to be used
6primarily for graphic arts production. Equipment includes
7chemicals or chemicals acting as catalysts but only if the
8chemicals or chemicals acting as catalysts effect a direct and
9immediate change upon a graphic arts product.
10    (5) A motor vehicle that is used for automobile renting, as
11defined in the Automobile Renting Occupation and Use Tax Act.
12This paragraph is exempt from the provisions of Section 2-70.
13    (6) Personal property sold by a teacher-sponsored student
14organization affiliated with an elementary or secondary school
15located in Illinois.
16    (7) Until July 1, 2003, proceeds of that portion of the
17selling price of a passenger car the sale of which is subject
18to the Replacement Vehicle Tax.
19    (8) Personal property sold to an Illinois county fair
20association for use in conducting, operating, or promoting the
21county fair.
22    (9) Personal property sold to 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
25Section 501(c)(3) of the Internal Revenue Code and that is
26organized and operated primarily for the presentation or

 

 

09900SB0514sam001- 50 -LRB099 03081 HLH 47596 a

1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (10) Personal property sold by a corporation, society,
12association, foundation, institution, or organization, other
13than a limited liability company, that is organized and
14operated as a not-for-profit service enterprise for the benefit
15of persons 65 years of age or older if the personal property
16was not purchased by the enterprise for the purpose of resale
17by the enterprise.
18    (11) Personal property sold to a governmental body, to a
19corporation, society, association, foundation, or institution
20organized and operated exclusively for charitable, religious,
21or educational purposes, or to a not-for-profit corporation,
22society, association, foundation, institution, or organization
23that has no compensated officers or employees and that is
24organized and operated primarily for the recreation of persons
2555 years of age or older. A limited liability company may
26qualify for the exemption under this paragraph only if the

 

 

09900SB0514sam001- 51 -LRB099 03081 HLH 47596 a

1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active
5identification number issued by the Department.
6    (12) Tangible personal property sold to interstate
7carriers for hire for use as rolling stock moving in interstate
8commerce or to lessors under leases of one year or longer
9executed or in effect at the time of purchase by interstate
10carriers for hire for use as rolling stock moving in interstate
11commerce and equipment operated by a telecommunications
12provider, licensed as a common carrier by the Federal
13Communications Commission, which is permanently installed in
14or affixed to aircraft moving in interstate commerce.
15    (12-5) On and after July 1, 2003 and through June 30, 2004,
16motor vehicles of the second division with a gross vehicle
17weight in excess of 8,000 pounds that are subject to the
18commercial distribution fee imposed under Section 3-815.1 of
19the Illinois Vehicle Code. Beginning on July 1, 2004 and
20through June 30, 2005, the use in this State of motor vehicles
21of the second division: (i) with a gross vehicle weight rating
22in excess of 8,000 pounds; (ii) that are subject to the
23commercial distribution fee imposed under Section 3-815.1 of
24the Illinois Vehicle Code; and (iii) that are primarily used
25for commercial purposes. Through June 30, 2005, this exemption
26applies to repair and replacement parts added after the initial

 

 

09900SB0514sam001- 52 -LRB099 03081 HLH 47596 a

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

 

 

09900SB0514sam001- 53 -LRB099 03081 HLH 47596 a

1of electricity for wholesale or retail sale; (ii) the
2generation or treatment of natural or artificial gas for
3wholesale or retail sale that is delivered to customers through
4pipes, pipelines, or mains; or (iii) the treatment of water for
5wholesale or retail sale that is delivered to customers through
6pipes, pipelines, or mains. The provisions of Public Act 98-583
7are declaratory of existing law as to the meaning and scope of
8this exemption.
9    (15) Proceeds of mandatory service charges separately
10stated on customers' bills for purchase and consumption of food
11and beverages, to the extent that the proceeds of the service
12charge are in fact turned over as tips or as a substitute for
13tips to the employees who participate directly in preparing,
14serving, hosting or cleaning up the food or beverage function
15with respect to which the service charge is imposed.
16    (16) Personal property Petroleum products sold to a
17purchaser if the purchaser is exempt from use tax seller is
18prohibited by operation of federal law from charging tax to the
19purchaser. This paragraph is exempt from the provisions of
20Section 2-70.
21    (17) Tangible personal property sold to a common carrier by
22rail or motor that receives the physical possession of the
23property in Illinois and that transports the property, or
24shares with another common carrier in the transportation of the
25property, out of Illinois on a standard uniform bill of lading
26showing the seller of the property as the shipper or consignor

 

 

09900SB0514sam001- 54 -LRB099 03081 HLH 47596 a

1of the property to a destination outside Illinois, for use
2outside Illinois.
3    (18) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7    (19) 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    (20) 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    (21) 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

 

 

09900SB0514sam001- 55 -LRB099 03081 HLH 47596 a

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

 

 

09900SB0514sam001- 56 -LRB099 03081 HLH 47596 a

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

 

 

09900SB0514sam001- 57 -LRB099 03081 HLH 47596 a

1which the purchaser is a resident, except that the tax shall
2not exceed the tax that would otherwise be imposed under this
3Act. At the time of the sale, the purchaser shall execute a
4statement, signed under penalty of perjury, of his or her
5intent to title the vehicle in the state in which the purchaser
6is a resident within 30 days after the sale and of the fact of
7the payment to the State of Illinois of tax in an amount
8equivalent to the state's rate of tax on taxable property in
9his or her state of residence and shall submit the statement to
10the appropriate tax collection agency in his or her state of
11residence. In addition, the retailer must retain a signed copy
12of the statement in his or her records. Nothing in this item
13shall be construed to require the removal of the vehicle from
14this state following the filing of an intent to title the
15vehicle in the purchaser's state of residence if the purchaser
16titles the vehicle in his or her state of residence within 30
17days after the date of sale. The tax collected under this Act
18in accordance with this item (25-5) shall be proportionately
19distributed as if the tax were collected at the 6.25% general
20rate imposed under this Act.
21    (25-7) Beginning on July 1, 2007, no tax is imposed under
22this Act on the sale of an aircraft, as defined in Section 3 of
23the Illinois Aeronautics Act, if all of the following
24conditions are met:
25        (1) the aircraft leaves this State within 15 days after
26    the later of either the issuance of the final billing for

 

 

09900SB0514sam001- 58 -LRB099 03081 HLH 47596 a

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

 

 

09900SB0514sam001- 59 -LRB099 03081 HLH 47596 a

1Section 2-70.
2    (26) Semen used for artificial insemination of livestock
3for direct agricultural production.
4    (27) Horses, or interests in horses, registered with and
5meeting the requirements of any of the Arabian Horse Club
6Registry of America, Appaloosa Horse Club, American Quarter
7Horse Association, United States Trotting Association, or
8Jockey Club, as appropriate, used for purposes of breeding or
9racing for prizes. This item (27) is exempt from the provisions
10of Section 2-70, and the exemption provided for under this item
11(27) applies for all periods beginning May 30, 1995, but no
12claim for credit or refund is allowed on or after January 1,
132008 (the effective date of Public Act 95-88) for such taxes
14paid during the period beginning May 30, 2000 and ending on
15January 1, 2008 (the effective date of Public Act 95-88).
16    (28) Computers and communications equipment utilized for
17any hospital purpose and equipment used in the diagnosis,
18analysis, or treatment of hospital patients sold to a lessor
19who leases the equipment, under a lease of one year or longer
20executed or in effect at the time of the purchase, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23this Act.
24    (29) Personal property sold to a lessor who leases the
25property, under a lease of one year or longer executed or in
26effect at the time of the purchase, to a governmental body that

 

 

09900SB0514sam001- 60 -LRB099 03081 HLH 47596 a

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

 

 

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

 

 

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1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 2-70.
9    (35) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and other
12items, and replacement parts for these machines. Beginning
13January 1, 2002 and through June 30, 2003, machines and parts
14for machines used in commercial, coin-operated amusement and
15vending business if a use or occupation tax is paid on the
16gross receipts derived from the use of the commercial,
17coin-operated amusement and vending machines. This paragraph
18is exempt from the provisions of Section 2-70.
19    (35-5) Beginning August 23, 2001 and through June 30, 2016,
20food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages, soft
22drinks, and food that has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances, and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, when purchased for use by a person receiving medical

 

 

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1assistance under Article V of the Illinois Public Aid Code who
2resides in a licensed long-term care facility, as defined in
3the Nursing Home Care Act, or a licensed facility as defined in
4the ID/DD Community Care Act, the MC/DD Act, or the Specialized
5Mental Health Rehabilitation Act of 2013.
6    (36) Beginning August 2, 2001, computers and
7communications equipment utilized for any hospital purpose and
8equipment used in the diagnosis, analysis, or treatment of
9hospital patients sold to a lessor who leases the equipment,
10under a lease of one year or longer executed or in effect at
11the time of the purchase, to a hospital that has been issued an
12active tax exemption identification number by the Department
13under Section 1g of this Act. This paragraph is exempt from the
14provisions of Section 2-70.
15    (37) Beginning August 2, 2001, 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
20this Act. This paragraph is exempt from the provisions of
21Section 2-70.
22    (38) 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 (38). The permit issued under this paragraph (38)
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    (39) 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 2-70.
26    (40) Beginning January 1, 2010, materials, parts,

 

 

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1equipment, components, and furnishings incorporated into or
2upon an aircraft as part of the modification, refurbishment,
3completion, replacement, repair, or maintenance of the
4aircraft. This exemption includes consumable supplies used in
5the modification, refurbishment, completion, replacement,
6repair, and maintenance of aircraft, but excludes any
7materials, parts, equipment, components, and consumable
8supplies used in the modification, replacement, repair, and
9maintenance of aircraft engines or power plants, whether such
10engines or power plants are installed or uninstalled upon any
11such aircraft. "Consumable supplies" include, but are not
12limited to, adhesive, tape, sandpaper, general purpose
13lubricants, cleaning solution, latex gloves, and protective
14films. This exemption applies only to the sale of qualifying
15tangible personal property to persons who modify, refurbish,
16complete, replace, or maintain an aircraft and who (i) hold an
17Air Agency 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 (40) by Public Act 98-534 are declarative of existing
26law.

 

 

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1    (41) Tangible personal property sold to 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 2-70.
15(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1698-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
171-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
187-29-15.)
 
19    Section 30. The Cigarette Tax Act is amended by changing
20Section 18c as follows:
 
21    (35 ILCS 130/18c)
22    Sec. 18c. Possession of not less than 10 and not more than
23100 original packages of contraband cigarettes; penalty. With
24the exception of licensed distributors and transporters, as

 

 

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1defined in Section 9c of this Act, possessing unstamped
2original packages of cigarettes, and licensed distributors
3possessing original packages of cigarettes that bear a tax
4stamp of another state or taxing jurisdiction, anyone
5possessing not less than 10 and not more than 100 packages of
6contraband cigarettes contained in original packages is liable
7to pay to the Department, for deposit into the Tax Compliance
8and Administration Fund, a penalty of $20 $10 for each such
9package of cigarettes, unless reasonable cause can be
10established by the person upon whom the penalty is imposed.
11Reasonable cause shall be determined in each situation in
12accordance with rules adopted by the Department. The provisions
13of the Uniform Penalty and Interest Act do not apply to this
14Section.
15(Source: P.A. 96-782, eff. 1-1-10.)
 
16    Section 35. The Counties Code is amended by changing
17Sections 5-1032 and 5-1033 as follows:
 
18    (55 ILCS 5/5-1032)  (from Ch. 34, par. 5-1032)
19    Sec. 5-1032. County Automobile Renting Occupation Tax. The
20corporate authorities of a county may impose a tax upon all
21persons engaged in the business of renting automobiles in the
22county, but outside any municipality, at the rate of not to
23exceed 1% of the gross receipts from such business. The tax
24imposed by a county pursuant to this Section and all civil

 

 

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1penalties that may be assessed as an Incident thereof shall be
2collected and enforced by the State Department of Revenue. The
3certificate of registration which is issued by the Department
4to a retailer under the "Retailers' Occupation Tax Act",
5approved June 23, 1933, as amended, or under the "Automobile
6Renting Occupation and Use Tax Act", enacted by the
7Eighty-Second General Assembly, shall permit such person to
8engage in a business which is taxable under any ordinance or
9resolution enacted pursuant to this Section without
10registering separately with the Department under such
11ordinance or resolution or under this Section. The Department
12shall have full power to administer and enforce this Section;
13to collect all taxes and penalties due hereunder; to dispose of
14taxes and penalties so collected in the manner hereinafter
15provided, and to determine all rights to credit memoranda,
16arising on account of the erroneous payment of tax or penalty
17hereunder. In the administration of, and compliance with, this
18Section, the Department and persons who are subject to this
19Section shall have the same rights, remedies, privileges,
20immunities, powers and duties, and be subject to the same
21conditions, restrictions, limitations, penalties and
22definitions of terms, and employ the same modes of procedure,
23as are prescribed in Sections 2 and 3 (in respect to all
24provisions therein other than the State rate of tax; and with
25relation to the provisions of the "Retailers' Occupation Tax"
26referred to therein, except as to the disposition of taxes and

 

 

09900SB0514sam001- 69 -LRB099 03081 HLH 47596 a

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

 

 

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1Comptroller the disbursement of stated sums of money to named
2counties from which rentors have paid taxes or penalties
3hereunder to the Department during the second preceding
4calendar month. The amount to be paid to each county shall be
5the amount (not including credit memoranda) collected
6hereunder during the second preceding calendar month by the
7Department, and not including an amount equal to the amount of
8refunds made during the second preceding calendar month by the
9Department on behalf of such county, less 2% of such balance,
10which sum shall be retained by the State Treasurer to cover the
11costs incurred by the Department in administering and enforcing
12this Section as provided herein. The Department at the time of
13each monthly disbursement to the counties shall prepare and
14certify to the Comptroller the amount, so retained by the State
15Treasurer, to be paid into the General Revenue Fund of the
16State Treasury. Within 10 days after receipt, by the
17Comptroller, of the disbursement certification to the counties
18and the General Revenue Fund, provided for in this Section to
19be given to the Comptroller by the Department, the Comptroller
20shall cause the orders to be drawn for the respective amounts
21in accordance with the directions contained in such
22certification.
23    Nothing in this Section shall be construed to authorize a
24county to impose a tax upon the privilege of engaging in any
25business which under the constitution of the United States may
26not be made the subject of taxation by this State.

 

 

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1    An ordinance or resolution imposing or discontinuing the
2tax under this Section or effecting a change in the rate
3thereof shall be adopted and a certified copy thereof filed
4with the Department either: (i) on or before the first day of
5April, in which case the Department shall proceed to administer
6and enforce this Section as of the first day of July next
7following the adoption or filing; or (ii) on or before the
8first day of October, in which case the Department shall
9proceed to administer and enforce this Section as of the first
10day of January next following the adoption and filing.
11    An ordinance or resolution imposing a tax hereunder or
12effecting a change in the rate thereof shall be effective on
13the first day of the calendar month next following the month in
14which such ordinance or resolution is passed. The corporate
15authorities of any county which levies a tax authorized by this
16Section shall transmit to the Department of Revenue on or not
17later than 5 days after passage of the ordinance or resolution
18a certified copy of the ordinance or resolution imposing such
19tax whereupon the Department of Revenue shall proceed to
20administer and enforce this Section on behalf of such county as
21of the effective date of the ordinance or resolution. Upon a
22change in rate of a tax levied hereunder, or upon the
23discontinuance of the tax, the corporate authorities of the
24county shall on or not later than 5 days after passage of the
25ordinance or resolution discontinuing the tax or effecting a
26change in rate transmit to the Department of Revenue a

 

 

09900SB0514sam001- 72 -LRB099 03081 HLH 47596 a

1certified copy of the ordinance or resolution effecting such
2change or discontinuance.
3    The Department of Revenue must upon the request of the
4County Clerk or County Board submit to a county a list of those
5persons who are registered with the Department to pay
6automobile renting occupation tax within the unincorporated
7area of that governmental unit. This list shall contain only
8the names of persons who have paid the tax and not the amount
9of tax paid by such person.
10    This Section shall be known and may be cited as the "County
11Automobile Renting Occupation Tax Law".
12(Source: P.A. 86-962.)
 
13    (55 ILCS 5/5-1033)  (from Ch. 34, par. 5-1033)
14    Sec. 5-1033. County Automobile Renting Use Tax. The
15corporate authorities of a county may impose a tax upon the
16privilege of using, in such county an automobile which is
17rented from a rentor outside Illinois, and which is titled or
18registered with an agency of this State's government, at a rate
19not to exceed 1% of the rental price of such automobile. Such
20tax shall be collected from persons whose Illinois address for
21titling or registration purposes is given as being in the
22unincorporated area of such county. Such tax shall be collected
23by the Department of Revenue for any county imposing such tax.
24Such tax must be paid to the State, or an exemption
25determination must be obtained from the Department of Revenue,

 

 

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

 

 

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1refunds, and except that credit memoranda issued hereunder may
2not be used to discharge any State tax liability) of the
3"Automobile Renting Occupation and Use Tax Act", as the same
4are now or may hereafter be amended, which are not inconsistent
5with this Section, as fully as if provisions contained in those
6Sections of 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 county 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 counties from which the Department, during the second
20preceding calendar month, collected taxes hereunder from
21persons whose Illinois address for titling or registration
22purposes is given as being in the unincorporated area of such
23county. The amount to be paid to each county shall be the
24amount (not including credit memoranda) collected hereunder
25during the second preceding calendar month by the Department,
26and not including an amount equal to the amount of refunds made

 

 

09900SB0514sam001- 75 -LRB099 03081 HLH 47596 a

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

 

 

09900SB0514sam001- 76 -LRB099 03081 HLH 47596 a

1effecting a change in the rate thereof shall be effective on
2the first day of the calendar month next following the month in
3which such ordinance or resolution is passed. The corporate
4authorities of any county which levies a tax authorized by this
5Section shall transmit to the Department of Revenue on or not
6later than 5 days after passage of the ordinance or resolution
7a certified copy of the ordinance or resolution imposing such
8tax whereupon the Department of Revenue shall proceed to
9administer and enforce this Section on behalf of such county as
10of the effective date of the ordinance or resolution. Upon a
11change in rate of a tax levied hereunder, or upon the
12discontinuance of the tax, the corporate authorities of the
13county shall, on or not later than 5 days after passage of the
14ordinance or resolution discontinuing the tax or effecting a
15change in rate, transmit to the Department of Revenue a
16certified copy of the ordinance or resolution effecting such
17change or discontinuance.
18    This Section shall be known and may be cited as the "County
19Automobile Renting Use Tax Law".
20(Source: P.A. 86-962.)
 
21    Section 40. The Illinois Municipal Code is amended by
22changing Sections 8-11-7 and 8-11-8 as follows:
 
23    (65 ILCS 5/8-11-7)  (from Ch. 24, par. 8-11-7)
24    Sec. 8-11-7. Municipal Automobile Renting Occupation Tax.

 

 

09900SB0514sam001- 77 -LRB099 03081 HLH 47596 a

1The corporate authorities of a municipality may impose a tax
2upon all persons engaged in the business of renting automobiles
3in the municipality at the rate of not to exceed 1% of the
4gross receipts from such business. The tax imposed by a
5municipality pursuant to this Section and all civil penalties
6that may be assessed as an incident thereof shall be collected
7and enforced by the State Department of Revenue. The
8certificate of registration which is issued by the Department
9to a retailer under the Retailers' Occupation Tax Act or under
10the Automobile Renting Occupation and Use Tax Act shall permit
11such person to engage in a business which is taxable under any
12ordinance or resolution enacted pursuant to this Section
13without registering separately with the Department under such
14ordinance or resolution or under this Section. The Department
15shall have full power to administer and enforce this Section;
16to collect all taxes and penalties due hereunder; to dispose of
17taxes and penalties so collected in the manner hereinafter
18provided; and to determine all rights to credit memoranda,
19arising on account of the erroneous payment of tax or penalty
20hereunder. In the administration of, and compliance with, this
21Section, the Department and persons who are subject to this
22Section shall have the same rights, remedies, privileges,
23immunities, powers and duties, and be subject to the same
24conditions, restrictions, limitations, penalties and
25definitions of terms, and employ the same modes of procedure,
26as are prescribed in Sections 2 and 3 (in respect to all

 

 

09900SB0514sam001- 78 -LRB099 03081 HLH 47596 a

1provisions therein other than the State rate of tax; and with
2relation to the provisions of the "Retailers' Occupation Tax"
3referred to therein, except as to the disposition of taxes and
4penalties collected, and except for the provision allowing
5retailers a deduction from the tax to cover certain costs, and
6except that credit memoranda issued hereunder may not be used
7to discharge any State tax liability) of the Automobile Renting
8Occupation and Use Tax Act, as fully as if those provisions
9were set forth herein.
10    Persons subject to any tax imposed pursuant to the
11authority granted in this Section may reimburse themselves for
12their tax liability hereunder by separately stating such tax as
13an additional charge, which charge may be stated in
14combination, in a single amount, with State tax which sellers
15are required to collect under the Automobile Renting Occupation
16and Use Tax Act pursuant to such bracket schedules as the
17Department may prescribe.
18    Whenever the Department determines that a refund should be
19made under this Section to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the order to be drawn for the
22amount specified, and to the person named, in such notification
23from the Department. Such refund shall be paid by the State
24Treasurer out of the municipal automobile renting tax fund.
25    The Department shall forthwith pay over to the State
26Treasurer, ex-officio, as trustee, all taxes and penalties

 

 

09900SB0514sam001- 79 -LRB099 03081 HLH 47596 a

1collected hereunder. On or before the 25th day of each calendar
2month, the Department shall prepare and certify to the
3Comptroller the disbursement of stated sums of money to named
4municipalities, the municipalities to be those from which
5rentors have paid taxes or penalties hereunder to the
6Department during the second preceding calendar month. The
7amount to be paid to each municipality shall be the amount (not
8including credit memoranda) collected hereunder during the
9second preceding calendar month by the Department, and not
10including an amount equal to the amount of refunds made during
11the second preceding calendar month by the Department on behalf
12of such municipality, less 1.6% of such balance, which sum
13shall be retained by the State Treasurer to cover the costs
14incurred by the Department in administering and enforcing this
15Section as provided herein. The Department at the time of each
16monthly disbursement to the municipalities shall prepare and
17certify to the Comptroller the amount, so retained by the State
18Treasurer, to be paid into the General Revenue Fund of the
19State Treasury. Within 10 days after receipt, by the
20Comptroller, of the disbursement certification to the
21municipalities and the General Revenue Fund, provided for in
22this Section to be given to the Comptroller by the Department,
23the Comptroller shall cause the orders to be drawn for the
24respective amounts in accordance with the directions contained
25in such certification.
26    Nothing in this Section shall be construed to authorize a

 

 

09900SB0514sam001- 80 -LRB099 03081 HLH 47596 a

1municipality to impose a tax upon the privilege of engaging in
2any business which under the Constitution of the United States
3may not be made the subject of taxation by this State.
4    An ordinance or resolution imposing or discontinuing the
5tax under this Section or effecting a change in the rate
6thereof shall be adopted and a certified copy thereof filed
7with the Department either: (i) on or before the first day of
8April, in which case the Department shall proceed to administer
9and enforce this Section as of the first day of July next
10following the adoption or filing; or (ii) on or before the
11first day of October, in which case the Department shall
12proceed to administer and enforce this Section as of the first
13day of January next following the adoption and filing.
14    An ordinance or resolution imposing a tax hereunder or
15effecting a change in the rate thereof shall be effective on
16the first day of the calendar month next following publication
17as provided in Section 1-2-4. The corporate authorities of any
18municipality which levies a tax authorized by this Section
19shall transmit to the Department of Revenue on or not later
20than 5 days after publication a certified copy of the ordinance
21or resolution imposing such tax whereupon the Department of
22Revenue shall proceed to administer and enforce this Section on
23behalf of such municipality as of the effective date of the
24ordinance or resolution. Upon a change in rate of a tax levied
25hereunder, or upon the discontinuance of the tax, the corporate
26authorities of the municipality shall on or not later than 5

 

 

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1days after publication of the ordinance or resolution
2discontinuing the tax or effecting a change in rate transmit to
3the Department of Revenue a certified copy of the ordinance or
4resolution effecting such change or discontinuance.
5    The Department of Revenue must upon the request of the
6municipal clerk, city council or village board of trustees
7submit to a city, village or incorporated town a list of those
8persons who are registered with the Department to pay
9automobile renting occupation tax within that governmental
10unit. This list shall contain only the names of persons who
11have paid the tax and not the amount of tax paid by such
12person.
13    As used in this Section, "municipal" and "municipality"
14means a city, village or incorporated town, including an
15incorporated town which has superseded a civil township.
16    This Section shall be known and may be cited as the
17"Municipal Automobile Renting Occupation Tax Act".
18(Source: P.A. 86-1475.)
 
19    (65 ILCS 5/8-11-8)  (from Ch. 24, par. 8-11-8)
20    Sec. 8-11-8. Municipal Automobile Renting Use Tax. The
21corporate authorities of a municipality may impose a tax upon
22the privilege of using, in such municipality, an automobile
23which is rented from a rentor outside Illinois, and which is
24titled or registered with an agency of this State's government,
25at a rate not to exceed 1% of the rental price of such

 

 

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1automobile. Such tax shall be collected from persons whose
2Illinois address for titling or registration purposes is given
3as being in such municipality. Such tax shall be collected by
4the Department of Revenue for any municipality imposing such
5tax. Such tax must be paid to the State, or an exemption
6determination must be obtained from the Department of Revenue,
7before the title or certificate of registration for the
8property may be issued. The tax or proof of exemption may be
9transmitted to the Department by way of the State agency with
10which, or State officer with whom, the tangible personal
11property must be titled or registered if the Department and
12such agency or State officer determine that this procedure will
13expedite the processing of applications for title or
14registration.
15    The Department shall have full power to administer and
16enforce this Section; to collect all taxes, penalties and
17interest due hereunder; to dispose of taxes, penalties and
18interest so collected in the manner hereinafter provided, and
19to determine all rights to credit memoranda or refunds arising
20on account of the erroneous payment of tax, penalty or interest
21hereunder. In the administration of, and compliance with, this
22Section, the Department and persons who are subject to this
23Section shall have the same rights, remedies, privileges,
24immunities, powers and duties, and be subject to the same
25conditions, restrictions, limitations, penalties and
26definitions of terms, and employ the same modes of procedure as

 

 

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

 

 

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1that municipality from which the Department, during the second
2preceding calendar month, collected taxes hereunder from
3persons whose Illinois address for titling or registration
4purposes is given as being in such municipality. The amount to
5be paid to each municipality shall be the amount (not including
6credit memoranda) collected hereunder during the second
7preceding calendar month by the Department, and not including
8an amount equal to the amount of refunds made during the second
9preceding calendar month by the Department on behalf of such
10municipality, less 1.6% of such balance, which sum shall be
11retained by the State Treasurer to cover the costs incurred by
12the Department in administering and enforcing this Section as
13provided herein. The Department at the time of each monthly
14disbursement to the municipalities shall prepare and certify to
15the State Comptroller the amount, so retained by the State
16Treasurer, to be paid into the General Revenue Fund of the
17State Treasury. Within 10 days after receipt, by the State
18Comptroller, of the disbursement certification to the
19municipalities and the General Revenue Fund, provided or in
20this Section to be given to the State Comptroller by the
21Department, the State Comptroller shall cause the orders to be
22drawn for the respective amounts in accordance with the
23directions contained in such certification.
24    An ordinance or resolution imposing or discontinuing the
25tax under this Section or effecting a change in the rate
26thereof shall be adopted and a certified copy thereof filed

 

 

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

 

 

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1means a city, village or incorporated town, including an
2incorporated town which has superseded a civil township.
3    This Section shall be known and may be cited as the
4"Municipal Automobile Renting Use Tax Act".
5(Source: P.A. 84-149.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".