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Full Text of SB2746  99th General Assembly

SB2746enr 99TH GENERAL ASSEMBLY

  
  
   

 


 
SB2746 EnrolledLRB099 17731 HLH 44538 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1Public Act 98-456) for such taxes paid during the period
2beginning July 1, 2003 and ending on August 16, 2013 (the
3effective date of Public Act 98-456).
4    (17) Until July 1, 2003, distillation machinery and
5equipment, sold as a unit or kit, assembled or installed by the
6retailer, certified by the user to be used only for the
7production of ethyl alcohol that will be used for consumption
8as motor fuel or as a component of motor fuel for the personal
9use of the user, and not subject to sale or resale.
10    (18) Manufacturing and assembling machinery and equipment
11used primarily in the process of manufacturing or assembling
12tangible personal property for wholesale or retail sale or
13lease, whether that sale or lease is made directly by the
14manufacturer or by some other person, whether the materials
15used in the process are owned by the manufacturer or some other
16person, or whether that sale or lease is made apart from or as
17an incident to the seller's engaging in the service occupation
18of producing machines, tools, dies, jigs, patterns, gauges, or
19other similar items of no commercial value on special order for
20a particular purchaser. The exemption provided by this
21paragraph (18) does not include machinery and equipment used in
22(i) the generation of electricity for wholesale or retail sale;
23(ii) the generation or treatment of natural or artificial gas
24for wholesale or retail sale that is delivered to customers
25through pipes, pipelines, or mains; or (iii) the treatment of
26water for wholesale or retail sale that is delivered to

 

 

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1customers through pipes, pipelines, or mains. The provisions of
2Public Act 98-583 are declaratory of existing law as to the
3meaning and scope of this exemption.
4    (19) Personal property delivered to a purchaser or
5purchaser's donee inside Illinois when the purchase order for
6that personal property was received by a florist located
7outside Illinois who has a florist located inside Illinois
8deliver the personal property.
9    (20) Semen used for artificial insemination of livestock
10for direct agricultural production.
11    (21) Horses, or interests in horses, registered with and
12meeting the requirements of any of the Arabian Horse Club
13Registry of America, Appaloosa Horse Club, American Quarter
14Horse Association, United States Trotting Association, or
15Jockey Club, as appropriate, used for purposes of breeding or
16racing for prizes. This item (21) is exempt from the provisions
17of Section 3-90, and the exemption provided for under this item
18(21) applies for all periods beginning May 30, 1995, but no
19claim for credit or refund is allowed on or after January 1,
202008 for such taxes paid during the period beginning May 30,
212000 and ending on January 1, 2008.
22    (22) Computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients purchased by a
25lessor who leases the equipment, under a lease of one year or
26longer executed or in effect at the time the lessor would

 

 

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

 

 

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

 

 

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1but not limited to municipal roads and streets, access roads,
2bridges, sidewalks, waste disposal systems, water and sewer
3line extensions, water distribution and purification
4facilities, storm water drainage and retention facilities, and
5sewage treatment facilities, resulting from a State or
6federally declared disaster in Illinois or bordering Illinois
7when such repairs are initiated on facilities located in the
8declared disaster area within 6 months after the disaster.
9    (26) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-90.
13    (27) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the Department
17to be organized and operated exclusively for educational
18purposes. For purposes of this exemption, "a corporation,
19limited liability company, society, association, foundation,
20or institution organized and operated exclusively for
21educational purposes" means all tax-supported public schools,
22private schools that offer systematic instruction in useful
23branches of learning by methods common to public schools and
24that compare favorably in their scope and intensity with the
25course of study presented in tax-supported schools, and
26vocational or technical schools or institutes organized and

 

 

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1operated exclusively to provide a course of study of not less
2than 6 weeks duration and designed to prepare individuals to
3follow a trade or to pursue a manual, technical, mechanical,
4industrial, business, or commercial occupation.
5    (28) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-90.
19    (29) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and other
22items, and replacement parts for these machines. Beginning
23January 1, 2002 and through June 30, 2003, machines and parts
24for machines used in commercial, coin-operated amusement and
25vending business if a use or occupation tax is paid on the
26gross receipts derived from the use of the commercial,

 

 

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1coin-operated amusement and vending machines. This paragraph
2is exempt from the provisions of Section 3-90.
3    (30) Beginning January 1, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16    (31) Beginning on the effective date of this amendatory Act
17of the 92nd General Assembly, computers and communications
18equipment utilized for any hospital purpose and equipment used
19in the diagnosis, analysis, or treatment of hospital patients
20purchased by a lessor who leases the equipment, under a lease
21of one year or longer executed or in effect at the time the
22lessor would otherwise be subject to the tax imposed by this
23Act, to a hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. If the equipment is leased in a
26manner that does not qualify for this exemption or is used in

 

 

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

 

 

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1market value of the property at the time the nonqualifying use
2occurs. No lessor shall collect or attempt to collect an amount
3(however designated) that purports to reimburse that lessor for
4the tax imposed by this Act or the Service Use Tax Act, as the
5case may be, if the tax has not been paid by the lessor. If a
6lessor improperly collects any such amount from the lessee, the
7lessee shall have a legal right to claim a refund of that
8amount from the lessor. If, however, that amount is not
9refunded to the lessee for any reason, the lessor is liable to
10pay that amount to the Department. This paragraph is exempt
11from the provisions of Section 3-90.
12    (33) On and after July 1, 2003 and through June 30, 2004,
13the use in this State of motor vehicles of the second division
14with a gross vehicle weight in excess of 8,000 pounds and that
15are subject to the commercial distribution fee imposed under
16Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
171, 2004 and through June 30, 2005, the use in this State of
18motor vehicles of the second division: (i) with a gross vehicle
19weight rating in excess of 8,000 pounds; (ii) that are subject
20to the commercial distribution fee imposed under Section
213-815.1 of the Illinois Vehicle Code; and (iii) that are
22primarily used for commercial purposes. Through June 30, 2005,
23this exemption applies to repair and replacement parts added
24after the initial purchase of such a motor vehicle if that
25motor vehicle is used in a manner that would qualify for the
26rolling stock exemption otherwise provided for in this Act. For

 

 

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

 

 

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1tangible personal property by persons who modify, refurbish,
2complete, repair, replace, or maintain aircraft and who (i)
3hold an Air Agency Certificate and are empowered to operate an
4approved repair station by the Federal Aviation
5Administration, (ii) have a Class IV Rating, and (iii) conduct
6operations in accordance with Part 145 of the Federal Aviation
7Regulations. The exemption does not include aircraft operated
8by a commercial air carrier providing scheduled passenger air
9service pursuant to authority issued under Part 121 or Part 129
10of the Federal Aviation Regulations. The changes made to this
11paragraph (35) by Public Act 98-534 are declarative of existing
12law.
13    (36) Tangible personal property purchased by a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt instruments
22issued by the public-facilities corporation in connection with
23the development of the municipal convention hall. This
24exemption includes existing public-facilities corporations as
25provided in Section 11-65-25 of the Illinois Municipal Code.
26This paragraph is exempt from the provisions of Section 3-90.

 

 

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1    (37) Beginning January 1, 2017, menstrual pads, tampons,
2and menstrual cups.
3(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
498-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
51-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
67-29-15.)
 
7    Section 10. The Service Use Tax Act is amended by changing
8Section 3-5 as follows:
 
9    (35 ILCS 110/3-5)
10    Sec. 3-5. Exemptions. Use of the following tangible
11personal property is exempt from the tax imposed by this Act:
12    (1) Personal property purchased from a corporation,
13society, association, foundation, institution, or
14organization, other than a limited liability company, that is
15organized and operated as a not-for-profit service enterprise
16for the benefit of persons 65 years of age or older if the
17personal property was not purchased by the enterprise for the
18purpose of resale by the enterprise.
19    (2) Personal property purchased by a non-profit Illinois
20county fair association for use in conducting, operating, or
21promoting the county fair.
22    (3) Personal property purchased by a not-for-profit arts or
23cultural organization that establishes, by proof required by
24the Department by rule, that it has received an exemption under

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (12) Coal and aggregate exploration, mining, off-highway
2hauling, processing, maintenance, and reclamation equipment,
3including replacement parts and equipment, and including
4equipment purchased for lease, but excluding motor vehicles
5required to be registered under the Illinois Vehicle Code. The
6changes made to this Section by Public Act 97-767 apply on and
7after July 1, 2003, but no claim for credit or refund is
8allowed on or after August 16, 2013 (the effective date of
9Public Act 98-456) for such taxes paid during the period
10beginning July 1, 2003 and ending on August 16, 2013 (the
11effective date of Public Act 98-456).
12    (13) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (14) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (14) is exempt from the provisions
20of Section 3-75, and the exemption provided for under this item
21(14) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after the effective
23date of this amendatory Act of the 95th General Assembly for
24such taxes paid during the period beginning May 30, 2000 and
25ending on the effective date of this amendatory Act of the 95th
26General Assembly.

 

 

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

 

 

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

 

 

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1    (18) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (19) Beginning July 1, 1999, game or game birds purchased
14at a "game breeding and hunting preserve area" as that term is
15used in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-75.
17    (20) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

 

 

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1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9    (21) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-75.
23    (22) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

 

 

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1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 3-75.
7    (23) Beginning August 23, 2001 and through June 30, 2016,
8food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages, soft
10drinks, and food that has been prepared for immediate
11consumption) and prescription and nonprescription medicines,
12drugs, medical appliances, and insulin, urine testing
13materials, syringes, and needles used by diabetics, for human
14use, when purchased for use by a person receiving medical
15assistance under Article V of the Illinois Public Aid Code who
16resides in a licensed long-term care facility, as defined in
17the Nursing Home Care Act, or in a licensed facility as defined
18in the ID/DD Community Care Act, the MC/DD Act, or the
19Specialized Mental Health Rehabilitation Act of 2013.
20    (24) Beginning on the effective date of this amendatory Act
21of the 92nd General Assembly, computers and communications
22equipment utilized for any hospital purpose and equipment used
23in the diagnosis, analysis, or treatment of hospital patients
24purchased by a lessor who leases the equipment, under a lease
25of one year or longer executed or in effect at the time the
26lessor would otherwise be subject to the tax imposed by this

 

 

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

 

 

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

 

 

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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 transferred incident to the
11modification, refurbishment, completion, replacement, repair,
12or maintenance of 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 (27) by Public Act 98-534 are declarative of existing
22law.
23    (28) Tangible personal property purchased by a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 3-75.
11    (29) Beginning January 1, 2017, menstrual pads, tampons,
12and menstrual cups.
13(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1498-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
157-16-14; 99-180, eff. 7-29-15.)
 
16    Section 15. The Service Occupation Tax Act is amended by
17changing Section 3-5 as follows:
 
18    (35 ILCS 115/3-5)
19    Sec. 3-5. Exemptions. The following tangible personal
20property is exempt from the tax imposed by this Act:
21    (1) Personal property sold by a corporation, society,
22association, foundation, institution, or organization, other
23than a limited liability company, that is organized and
24operated as a not-for-profit service enterprise for the benefit

 

 

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1of persons 65 years of age or older if the personal property
2was not purchased by the enterprise for the purpose of resale
3by the enterprise.
4    (2) Personal property purchased by a not-for-profit
5Illinois county fair association for use in conducting,
6operating, or promoting the county fair.
7    (3) Personal property purchased by any not-for-profit arts
8or cultural organization that establishes, by proof required by
9the Department by rule, that it has received an exemption under
10Section 501(c)(3) of the Internal Revenue Code and that is
11organized and operated primarily for the presentation or
12support of arts or cultural programming, activities, or
13services. These organizations include, but are not limited to,
14music and dramatic arts organizations such as symphony
15orchestras and theatrical groups, arts and cultural service
16organizations, local arts councils, visual arts organizations,
17and media arts organizations. On and after the effective date
18of this amendatory Act of the 92nd General Assembly, however,
19an entity otherwise eligible for this exemption shall not make
20tax-free purchases unless it has an active identification
21number issued by the Department.
22    (4) 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    (5) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new and
3used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product.
9    (6) Personal property sold by a teacher-sponsored student
10organization affiliated with an elementary or secondary school
11located in Illinois.
12    (7) Farm machinery and equipment, both new and used,
13including that manufactured on special order, certified by the
14purchaser to be used primarily for production agriculture or
15State or federal agricultural programs, including individual
16replacement parts for the machinery and equipment, including
17machinery and equipment purchased for lease, and including
18implements of husbandry defined in Section 1-130 of the
19Illinois Vehicle Code, farm machinery and agricultural
20chemical and fertilizer spreaders, and nurse wagons required to
21be registered under Section 3-809 of the Illinois Vehicle Code,
22but excluding other motor vehicles required to be registered
23under the Illinois Vehicle Code. Horticultural polyhouses or
24hoop houses used for propagating, growing, or overwintering
25plants shall be considered farm machinery and equipment under
26this item (7). Agricultural chemical tender tanks and dry boxes

 

 

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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 (7) is exempt from the
20provisions of Section 3-55.
21    (8) Until June 30, 2013, fuel and petroleum products sold
22to or used by an air common carrier, certified by the carrier
23to be used for consumption, shipment, or storage in the conduct
24of its business as an air common carrier, for a flight destined
25for or returning from a location or locations outside the
26United States without regard to previous or subsequent domestic

 

 

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

 

 

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1equipment purchased for lease; but excluding motor vehicles
2required to be registered under the Illinois Vehicle Code.
3    (11) Photoprocessing machinery and equipment, including
4repair and replacement parts, both new and used, including that
5manufactured on special order, certified by the purchaser to be
6used primarily for photoprocessing, and including
7photoprocessing machinery and equipment purchased for lease.
8    (12) Coal and aggregate exploration, mining, off-highway
9hauling, processing, maintenance, and reclamation equipment,
10including replacement parts and equipment, and including
11equipment purchased for lease, but excluding motor vehicles
12required to be registered under the Illinois Vehicle Code. The
13changes made to this Section by Public Act 97-767 apply on and
14after July 1, 2003, but no claim for credit or refund is
15allowed on or after August 16, 2013 (the effective date of
16Public Act 98-456) for such taxes paid during the period
17beginning July 1, 2003 and ending on August 16, 2013 (the
18effective date of Public Act 98-456).
19    (13) Beginning January 1, 1992 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 non-prescription 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 in a licensed facility as defined
4in the ID/DD Community Care Act, the MC/DD Act, or the
5Specialized Mental Health Rehabilitation Act of 2013.
6    (14) Semen used for artificial insemination of livestock
7for direct agricultural production.
8    (15) Horses, or interests in horses, registered with and
9meeting the requirements of any of the Arabian Horse Club
10Registry of America, Appaloosa Horse Club, American Quarter
11Horse Association, United States Trotting Association, or
12Jockey Club, as appropriate, used for purposes of breeding or
13racing for prizes. This item (15) is exempt from the provisions
14of Section 3-55, and the exemption provided for under this item
15(15) applies for all periods beginning May 30, 1995, but no
16claim for credit or refund is allowed on or after January 1,
172008 (the effective date of Public Act 95-88) for such taxes
18paid during the period beginning May 30, 2000 and ending on
19January 1, 2008 (the effective date of Public Act 95-88).
20    (16) Computers and communications equipment utilized for
21any hospital purpose and equipment used in the diagnosis,
22analysis, or treatment of hospital patients sold to a lessor
23who leases the equipment, under a lease of one year or longer
24executed or in effect at the time of the purchase, to a
25hospital 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.
2    (17) Personal property sold to a lessor who leases the
3property, under a lease of one year or longer executed or in
4effect at the time of the purchase, to a governmental body that
5has been issued an active tax exemption identification number
6by the Department under Section 1g of the Retailers' Occupation
7Tax Act.
8    (18) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is donated for
11disaster relief to be used in a State or federally declared
12disaster area in Illinois or bordering Illinois by a
13manufacturer or retailer that is registered in this State to a
14corporation, society, association, foundation, or institution
15that has been issued a sales tax exemption identification
16number by the Department that assists victims of the disaster
17who reside within the declared disaster area.
18    (19) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is used in the
21performance of infrastructure repairs in this State, including
22but not limited to municipal roads and streets, access roads,
23bridges, sidewalks, waste disposal systems, water and sewer
24line extensions, water distribution and purification
25facilities, storm water drainage and retention facilities, and
26sewage treatment facilities, resulting from a State or

 

 

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1federally declared disaster in Illinois or bordering Illinois
2when such repairs are initiated on facilities located in the
3declared disaster area within 6 months after the disaster.
4    (20) Beginning July 1, 1999, game or game birds sold at a
5"game breeding and hunting preserve area" as that term is used
6in the Wildlife Code. This paragraph is exempt from the
7provisions of Section 3-55.
8    (21) A motor vehicle, as that term is defined in Section
91-146 of the Illinois Vehicle Code, that is donated to a
10corporation, limited liability company, society, association,
11foundation, or institution that is determined by the Department
12to be organized and operated exclusively for educational
13purposes. For purposes of this exemption, "a corporation,
14limited liability company, society, association, foundation,
15or institution organized and operated exclusively for
16educational purposes" means all tax-supported public schools,
17private schools that offer systematic instruction in useful
18branches of learning by methods common to public schools and
19that compare favorably in their scope and intensity with the
20course of study presented in tax-supported schools, and
21vocational or technical schools or institutes organized and
22operated exclusively to provide a course of study of not less
23than 6 weeks duration and designed to prepare individuals to
24follow a trade or to pursue a manual, technical, mechanical,
25industrial, business, or commercial occupation.
26    (22) Beginning January 1, 2000, personal property,

 

 

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1including food, purchased through fundraising events for the
2benefit of a public or private elementary or secondary school,
3a group of those schools, or one or more school districts if
4the events are sponsored by an entity recognized by the school
5district that consists primarily of volunteers and includes
6parents and teachers of the school children. This paragraph
7does not apply to fundraising events (i) for the benefit of
8private home instruction or (ii) for which the fundraising
9entity purchases the personal property sold at the events from
10another individual or entity that sold the property for the
11purpose of resale by the fundraising entity and that profits
12from the sale to the fundraising entity. This paragraph is
13exempt from the provisions of Section 3-55.
14    (23) Beginning January 1, 2000 and through December 31,
152001, new or used automatic vending machines that prepare and
16serve hot food and beverages, including coffee, soup, and other
17items, and replacement parts for these machines. Beginning
18January 1, 2002 and through June 30, 2003, machines and parts
19for machines used in commercial, coin-operated amusement and
20vending business if a use or occupation tax is paid on the
21gross receipts derived from the use of the commercial,
22coin-operated amusement and vending machines. This paragraph
23is exempt from the provisions of Section 3-55.
24    (24) Beginning on the effective date of this amendatory Act
25of the 92nd General Assembly, computers and communications
26equipment utilized for any hospital purpose and equipment used

 

 

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1in the diagnosis, analysis, or treatment of hospital patients
2sold to a lessor who leases the equipment, under a lease of one
3year or longer executed or in effect at the time of the
4purchase, to a hospital that has been issued an active tax
5exemption identification number by the Department under
6Section 1g of the Retailers' Occupation Tax Act. This paragraph
7is exempt from the provisions of Section 3-55.
8    (25) Beginning on the effective date of this amendatory Act
9of the 92nd General Assembly, personal property sold to a
10lessor who leases the property, under a lease of one year or
11longer executed or in effect at the time of the purchase, to a
12governmental body that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. This paragraph is exempt from
15the provisions of Section 3-55.
16    (26) Beginning on January 1, 2002 and through June 30,
172016, tangible personal property purchased from an Illinois
18retailer by a taxpayer engaged in centralized purchasing
19activities in Illinois who will, upon receipt of the property
20in Illinois, temporarily store the property in Illinois (i) for
21the purpose of subsequently transporting it outside this State
22for use or consumption thereafter solely outside this State or
23(ii) for the purpose of being processed, fabricated, or
24manufactured into, attached to, or incorporated into other
25tangible personal property to be transported outside this State
26and thereafter used or consumed solely outside this State. The

 

 

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1Director of Revenue shall, pursuant to rules adopted in
2accordance with the Illinois Administrative Procedure Act,
3issue a permit to any taxpayer in good standing with the
4Department who is eligible for the exemption under this
5paragraph (26). The permit issued under this paragraph (26)
6shall authorize the holder, to the extent and in the manner
7specified in the rules adopted under this Act, to purchase
8tangible personal property from a retailer exempt from the
9taxes imposed by this Act. Taxpayers shall maintain all
10necessary books and records to substantiate the use and
11consumption of all such tangible personal property outside of
12the State of Illinois.
13    (27) Beginning January 1, 2008, tangible personal property
14used in the construction or maintenance of a community water
15supply, as defined under Section 3.145 of the Environmental
16Protection Act, that is operated by a not-for-profit
17corporation that holds a valid water supply permit issued under
18Title IV of the Environmental Protection Act. This paragraph is
19exempt from the provisions of Section 3-55.
20    (28) Tangible personal property sold to a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt instruments
3issued by the public-facilities corporation in connection with
4the development of the municipal convention hall. This
5exemption includes existing public-facilities corporations as
6provided in Section 11-65-25 of the Illinois Municipal Code.
7This paragraph is exempt from the provisions of Section 3-55.
8    (29) Beginning January 1, 2010, materials, parts,
9equipment, components, and furnishings incorporated into or
10upon an aircraft as part of the modification, refurbishment,
11completion, replacement, repair, or maintenance of the
12aircraft. This exemption includes consumable supplies used in
13the modification, refurbishment, completion, replacement,
14repair, and maintenance of aircraft, but excludes any
15materials, parts, equipment, components, and consumable
16supplies used in the modification, replacement, repair, and
17maintenance of aircraft engines or power plants, whether such
18engines or power plants are installed or uninstalled upon any
19such aircraft. "Consumable supplies" include, but are not
20limited to, adhesive, tape, sandpaper, general purpose
21lubricants, cleaning solution, latex gloves, and protective
22films. This exemption applies only to the transfer of
23qualifying tangible personal property incident to the
24modification, refurbishment, completion, replacement, repair,
25or maintenance of an aircraft by persons who (i) hold an Air
26Agency Certificate and are empowered to operate an approved

 

 

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1repair station by the Federal Aviation Administration, (ii)
2have a Class IV Rating, and (iii) conduct operations in
3accordance with Part 145 of the Federal Aviation Regulations.
4The exemption does not include aircraft operated by a
5commercial air carrier providing scheduled passenger air
6service pursuant to authority issued under Part 121 or Part 129
7of the Federal Aviation Regulations. The changes made to this
8paragraph (29) by Public Act 98-534 are declarative of existing
9law.
10    (30) Beginning January 1, 2017, menstrual pads, tampons,
11and menstrual cups.
12(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1398-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
147-16-14; 99-180, eff. 7-29-15.)
 
15    Section 20. The Retailers' Occupation Tax Act is amended by
16changing Section 2-5 as follows:
 
17    (35 ILCS 120/2-5)
18    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
19sale of the following tangible personal property are exempt
20from the tax imposed by this Act:
21    (1) Farm chemicals.
22    (2) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or

 

 

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

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (2) is exempt from the
6provisions of Section 2-70.
7    (3) Until July 1, 2003, distillation machinery and
8equipment, sold as a unit or kit, assembled or installed by the
9retailer, certified by the user to be used only for the
10production of ethyl alcohol that will be used for consumption
11as motor fuel or as a component of motor fuel for the personal
12use of the user, and not subject to sale or resale.
13    (4) Until July 1, 2003 and beginning again September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product.
22    (5) A motor vehicle that is used for automobile renting, as
23defined in the Automobile Renting Occupation and Use Tax Act.
24This paragraph is exempt from the provisions of Section 2-70.
25    (6) Personal property sold by a teacher-sponsored student
26organization affiliated with an elementary or secondary school

 

 

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1located in Illinois.
2    (7) Until July 1, 2003, proceeds of that portion of the
3selling price of a passenger car the sale of which is subject
4to the Replacement Vehicle Tax.
5    (8) Personal property sold to an Illinois county fair
6association for use in conducting, operating, or promoting the
7county fair.
8    (9) Personal property sold to a not-for-profit arts or
9cultural organization that establishes, by proof required by
10the Department by rule, that it has received an exemption under
11Section 501(c)(3) of the Internal Revenue Code and that is
12organized and operated primarily for the presentation or
13support of arts or cultural programming, activities, or
14services. These organizations include, but are not limited to,
15music and dramatic arts organizations such as symphony
16orchestras and theatrical groups, arts and cultural service
17organizations, local arts councils, visual arts organizations,
18and media arts organizations. On and after the effective date
19of this amendatory Act of the 92nd General Assembly, however,
20an entity otherwise eligible for this exemption shall not make
21tax-free purchases unless it has an active identification
22number issued by the Department.
23    (10) Personal property sold by a corporation, society,
24association, foundation, institution, or organization, other
25than a limited liability company, that is organized and
26operated as a not-for-profit service enterprise for the benefit

 

 

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1of persons 65 years of age or older if the personal property
2was not purchased by the enterprise for the purpose of resale
3by the enterprise.
4    (11) Personal property sold to a governmental body, to a
5corporation, society, association, foundation, or institution
6organized and operated exclusively for charitable, religious,
7or educational purposes, or to a not-for-profit corporation,
8society, association, foundation, institution, or organization
9that has no compensated officers or employees and that is
10organized and operated primarily for the recreation of persons
1155 years of age or older. A limited liability company may
12qualify for the exemption under this paragraph only if the
13limited liability company is organized and operated
14exclusively for educational purposes. On and after July 1,
151987, however, no entity otherwise eligible for this exemption
16shall make tax-free purchases unless it has an active
17identification number issued by the Department.
18    (12) Tangible personal property sold to interstate
19carriers for hire for use as rolling stock moving in interstate
20commerce or to lessors under leases of one year or longer
21executed or in effect at the time of purchase by interstate
22carriers for hire for use as rolling stock moving in interstate
23commerce and equipment operated by a telecommunications
24provider, licensed as a common carrier by the Federal
25Communications Commission, which is permanently installed in
26or affixed to aircraft moving in interstate commerce.

 

 

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

 

 

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1purchaser, or a lessee of the purchaser, primarily in the
2process of manufacturing or assembling tangible personal
3property for wholesale or retail sale or lease, whether the
4sale or lease is made directly by the manufacturer or by some
5other person, whether the materials used in the process are
6owned by the manufacturer or some other person, or whether the
7sale or lease is made apart from or as an incident to the
8seller's engaging in the service occupation of producing
9machines, tools, dies, jigs, patterns, gauges, or other similar
10items of no commercial value on special order for a particular
11purchaser. The exemption provided by this paragraph (14) does
12not include machinery and equipment used in (i) the generation
13of electricity for wholesale or retail sale; (ii) the
14generation or treatment of natural or artificial gas for
15wholesale or retail sale that is delivered to customers through
16pipes, pipelines, or mains; or (iii) the treatment of water for
17wholesale or retail sale that is delivered to customers through
18pipes, pipelines, or mains. The provisions of Public Act 98-583
19are declaratory of existing law as to the meaning and scope of
20this exemption.
21    (15) Proceeds of mandatory service charges separately
22stated on customers' bills for purchase and consumption of food
23and beverages, to the extent that the proceeds of the service
24charge are in fact turned over as tips or as a substitute for
25tips to the employees who participate directly in preparing,
26serving, hosting or cleaning up the food or beverage function

 

 

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1with respect to which the service charge is imposed.
2    (16) Petroleum products sold to a purchaser if the seller
3is prohibited by federal law from charging tax to the
4purchaser.
5    (17) Tangible personal property sold to a common carrier by
6rail or motor that receives the physical possession of the
7property in Illinois and that transports the property, or
8shares with another common carrier in the transportation of the
9property, out of Illinois on a standard uniform bill of lading
10showing the seller of the property as the shipper or consignor
11of the property to a destination outside Illinois, for use
12outside Illinois.
13    (18) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (19) Until July 1 2003, oil field exploration, drilling,
18and production equipment, including (i) rigs and parts of rigs,
19rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
20tubular goods, including casing and drill strings, (iii) pumps
21and pump-jack units, (iv) storage tanks and flow lines, (v) any
22individual replacement part for oil field exploration,
23drilling, and production equipment, and (vi) machinery and
24equipment purchased for lease; but excluding motor vehicles
25required to be registered under the Illinois Vehicle Code.
26    (20) Photoprocessing machinery and equipment, including

 

 

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1repair and replacement parts, both new and used, including that
2manufactured on special order, certified by the purchaser to be
3used primarily for photoprocessing, and including
4photoprocessing machinery and equipment purchased for lease.
5    (21) Coal and aggregate exploration, mining, off-highway
6hauling, processing, maintenance, and reclamation equipment,
7including replacement parts and equipment, and including
8equipment purchased for lease, but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code. The
10changes made to this Section by Public Act 97-767 apply on and
11after July 1, 2003, but no claim for credit or refund is
12allowed on or after August 16, 2013 (the effective date of
13Public Act 98-456) for such taxes paid during the period
14beginning July 1, 2003 and ending on August 16, 2013 (the
15effective date of Public Act 98-456).
16    (22) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight destined
20for or returning from a location or locations outside the
21United States without regard to previous or subsequent domestic
22stopovers.
23    Beginning July 1, 2013, fuel and petroleum products sold to
24or used by an air carrier, certified by the carrier to be used
25for consumption, shipment, or storage in the conduct of its
26business as an air common carrier, for a flight that (i) is

 

 

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1engaged in foreign trade or is engaged in trade between the
2United States and any of its possessions and (ii) transports at
3least one individual or package for hire from the city of
4origination to the city of final destination on the same
5aircraft, without regard to a change in the flight number of
6that aircraft.
7    (23) A transaction in which the purchase order is received
8by a florist who is located outside Illinois, but who has a
9florist located in Illinois deliver the property to the
10purchaser or the purchaser's donee in Illinois.
11    (24) Fuel consumed or used in the operation of ships,
12barges, or vessels that are used primarily in or for the
13transportation of property or the conveyance of persons for
14hire on rivers bordering on this State if the fuel is delivered
15by the seller to the purchaser's barge, ship, or vessel while
16it is afloat upon that bordering river.
17    (25) Except as provided in item (25-5) of this Section, a
18motor vehicle sold in this State to a nonresident even though
19the motor vehicle is delivered to the nonresident in this
20State, if the motor vehicle is not to be titled in this State,
21and if a drive-away permit is issued to the motor vehicle as
22provided in Section 3-603 of the Illinois Vehicle Code or if
23the nonresident purchaser has vehicle registration plates to
24transfer to the motor vehicle upon returning to his or her home
25state. The issuance of the drive-away permit or having the
26out-of-state registration plates to be transferred is prima

 

 

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1facie evidence that the motor vehicle will not be titled in
2this State.
3    (25-5) The exemption under item (25) does not apply if the
4state in which the motor vehicle will be titled does not allow
5a reciprocal exemption for a motor vehicle sold and delivered
6in that state to an Illinois resident but titled in Illinois.
7The tax collected under this Act on the sale of a motor vehicle
8in this State to a resident of another state that does not
9allow a reciprocal exemption shall be imposed at a rate equal
10to the state's rate of tax on taxable property in the state in
11which the purchaser is a resident, except that the tax shall
12not exceed the tax that would otherwise be imposed under this
13Act. At the time of the sale, the purchaser shall execute a
14statement, signed under penalty of perjury, of his or her
15intent to title the vehicle in the state in which the purchaser
16is a resident within 30 days after the sale and of the fact of
17the payment to the State of Illinois of tax in an amount
18equivalent to the state's rate of tax on taxable property in
19his or her state of residence and shall submit the statement to
20the appropriate tax collection agency in his or her state of
21residence. In addition, the retailer must retain a signed copy
22of the statement in his or her records. Nothing in this item
23shall be construed to require the removal of the vehicle from
24this state following the filing of an intent to title the
25vehicle in the purchaser's state of residence if the purchaser
26titles the vehicle in his or her state of residence within 30

 

 

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1days after the date of sale. The tax collected under this Act
2in accordance with this item (25-5) shall be proportionately
3distributed as if the tax were collected at the 6.25% general
4rate imposed under this Act.
5    (25-7) Beginning on July 1, 2007, no tax is imposed under
6this Act on the sale of an aircraft, as defined in Section 3 of
7the Illinois Aeronautics Act, if all of the following
8conditions are met:
9        (1) the aircraft leaves this State within 15 days after
10    the later of either the issuance of the final billing for
11    the sale of the aircraft, or the authorized approval for
12    return to service, completion of the maintenance record
13    entry, and completion of the test flight and ground test
14    for inspection, as required by 14 C.F.R. 91.407;
15        (2) the aircraft is not based or registered in this
16    State after the sale of the aircraft; and
17        (3) the seller retains in his or her books and records
18    and provides to the Department a signed and dated
19    certification from the purchaser, on a form prescribed by
20    the Department, certifying that the requirements of this
21    item (25-7) are met. The certificate must also include the
22    name and address of the purchaser, the address of the
23    location where the aircraft is to be titled or registered,
24    the address of the primary physical location of the
25    aircraft, and other information that the Department may
26    reasonably require.

 

 

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1    For purposes of this item (25-7):
2    "Based in this State" means hangared, stored, or otherwise
3used, excluding post-sale customizations as defined in this
4Section, for 10 or more days in each 12-month period
5immediately following the date of the sale of the aircraft.
6    "Registered in this State" means an aircraft registered
7with the Department of Transportation, Aeronautics Division,
8or titled or registered with the Federal Aviation
9Administration to an address located in this State.
10    This paragraph (25-7) is exempt from the provisions of
11Section 2-70.
12    (26) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (27) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (27) is exempt from the provisions
20of Section 2-70, and the exemption provided for under this item
21(27) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after January 1,
232008 (the effective date of Public Act 95-88) for such taxes
24paid during the period beginning May 30, 2000 and ending on
25January 1, 2008 (the effective date of Public Act 95-88).
26    (28) Computers and communications equipment utilized for

 

 

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

 

 

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1but not limited to municipal roads and streets, access roads,
2bridges, sidewalks, waste disposal systems, water and sewer
3line extensions, water distribution and purification
4facilities, storm water drainage and retention facilities, and
5sewage treatment facilities, resulting from a State or
6federally declared disaster in Illinois or bordering Illinois
7when such repairs are initiated on facilities located in the
8declared disaster area within 6 months after the disaster.
9    (32) Beginning July 1, 1999, game or game birds sold at a
10"game breeding and hunting preserve area" as that term is used
11in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 2-70.
13    (33) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the Department
17to be organized and operated exclusively for educational
18purposes. For purposes of this exemption, "a corporation,
19limited liability company, society, association, foundation,
20or institution organized and operated exclusively for
21educational purposes" means all tax-supported public schools,
22private schools that offer systematic instruction in useful
23branches of learning by methods common to public schools and
24that compare favorably in their scope and intensity with the
25course of study presented in tax-supported schools, and
26vocational or technical schools or institutes organized and

 

 

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1operated exclusively to provide a course of study of not less
2than 6 weeks duration and designed to prepare individuals to
3follow a trade or to pursue a manual, technical, mechanical,
4industrial, business, or commercial occupation.
5    (34) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 2-70.
19    (35) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and other
22items, and replacement parts for these machines. Beginning
23January 1, 2002 and through June 30, 2003, machines and parts
24for machines used in commercial, coin-operated amusement and
25vending business if a use or occupation tax is paid on the
26gross receipts derived from the use of the commercial,

 

 

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1coin-operated amusement and vending machines. This paragraph
2is exempt from the provisions of Section 2-70.
3    (35-5) Beginning August 23, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or a licensed facility as defined in
14the ID/DD Community Care Act, the MC/DD Act, or the Specialized
15Mental Health Rehabilitation Act of 2013.
16    (36) Beginning August 2, 2001, computers and
17communications equipment utilized for any hospital purpose and
18equipment used in the diagnosis, analysis, or treatment of
19hospital patients sold to a lessor who leases the equipment,
20under a lease of one year or longer executed or in effect at
21the time of the purchase, to a hospital that has been issued an
22active tax exemption identification number by the Department
23under Section 1g of this Act. This paragraph is exempt from the
24provisions of Section 2-70.
25    (37) Beginning August 2, 2001, personal property sold to 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 of the purchase, to a
2governmental body that has been issued an active tax exemption
3identification number by the Department under Section 1g of
4this Act. This paragraph is exempt from the provisions of
5Section 2-70.
6    (38) Beginning on January 1, 2002 and through June 30,
72016, tangible personal property purchased from an Illinois
8retailer by a taxpayer engaged in centralized purchasing
9activities in Illinois who will, upon receipt of the property
10in Illinois, temporarily store the property in Illinois (i) for
11the purpose of subsequently transporting it outside this State
12for use or consumption thereafter solely outside this State or
13(ii) for the purpose of being processed, fabricated, or
14manufactured into, attached to, or incorporated into other
15tangible personal property to be transported outside this State
16and thereafter used or consumed solely outside this State. The
17Director of Revenue shall, pursuant to rules adopted in
18accordance with the Illinois Administrative Procedure Act,
19issue a permit to any taxpayer in good standing with the
20Department who is eligible for the exemption under this
21paragraph (38). The permit issued under this paragraph (38)
22shall authorize the holder, to the extent and in the manner
23specified in the rules adopted under this Act, to purchase
24tangible personal property from a retailer exempt from the
25taxes imposed by this Act. Taxpayers shall maintain all
26necessary books and records to substantiate the use and

 

 

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1consumption of all such tangible personal property outside of
2the State of Illinois.
3    (39) Beginning January 1, 2008, tangible personal property
4used in the construction or maintenance of a community water
5supply, as defined under Section 3.145 of the Environmental
6Protection Act, that is operated by a not-for-profit
7corporation that holds a valid water supply permit issued under
8Title IV of the Environmental Protection Act. This paragraph is
9exempt from the provisions of Section 2-70.
10    (40) Beginning January 1, 2010, materials, parts,
11equipment, components, and furnishings incorporated into or
12upon an aircraft as part of the modification, refurbishment,
13completion, replacement, repair, or maintenance of the
14aircraft. This exemption includes consumable supplies used in
15the modification, refurbishment, completion, replacement,
16repair, and maintenance of aircraft, but excludes any
17materials, parts, equipment, components, and consumable
18supplies used in the modification, replacement, repair, and
19maintenance of aircraft engines or power plants, whether such
20engines or power plants are installed or uninstalled upon any
21such aircraft. "Consumable supplies" include, but are not
22limited to, adhesive, tape, sandpaper, general purpose
23lubricants, cleaning solution, latex gloves, and protective
24films. This exemption applies only to the sale of qualifying
25tangible personal property to persons who modify, refurbish,
26complete, replace, or maintain an aircraft and who (i) hold an

 

 

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1Air Agency Certificate and are empowered to operate an approved
2repair station by the Federal Aviation Administration, (ii)
3have a Class IV Rating, and (iii) conduct operations in
4accordance with Part 145 of the Federal Aviation Regulations.
5The exemption does not include aircraft operated by a
6commercial air carrier providing scheduled passenger air
7service pursuant to authority issued under Part 121 or Part 129
8of the Federal Aviation Regulations. The changes made to this
9paragraph (40) by Public Act 98-534 are declarative of existing
10law.
11    (41) Tangible personal property sold to a
12public-facilities corporation, as described in Section
1311-65-10 of the Illinois Municipal Code, for purposes of
14constructing or furnishing a municipal convention hall, but
15only if the legal title to the municipal convention hall is
16transferred to the municipality without any further
17consideration by or on behalf of the municipality at the time
18of the completion of the municipal convention hall or upon the
19retirement or redemption of any bonds or other debt instruments
20issued by the public-facilities corporation in connection with
21the development of the municipal convention hall. This
22exemption includes existing public-facilities corporations as
23provided in Section 11-65-25 of the Illinois Municipal Code.
24This paragraph is exempt from the provisions of Section 2-70.
25    (42) Beginning January 1, 2017, menstrual pads, tampons,
26and menstrual cups.

 

 

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1(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
298-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
31-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
47-29-15.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.