Illinois General Assembly - Full Text of SB0401
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Full Text of SB0401  97th General Assembly

SB0401sam001 97TH GENERAL ASSEMBLY

Sen. Toi W. Hutchinson

Filed: 4/11/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 401

2    AMENDMENT NO. ______. Amend Senate Bill 401 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
53-55 as follows:
 
6    (35 ILCS 105/3-55)  (from Ch. 120, par. 439.3-55)
7    Sec. 3-55. Multistate exemption. To prevent actual or
8likely multistate taxation, the tax imposed by this Act does
9not apply to the use of tangible personal property in this
10State under the following circumstances:
11    (a) The use, in this State, of tangible personal property
12acquired outside this State by a nonresident individual and
13brought into this State by the individual for his or her own
14use while temporarily within this State or while passing
15through this State.
16    (b) The use, in this State, of tangible personal property

 

 

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1by an interstate carrier for hire as rolling stock moving in
2interstate commerce or by lessors under a lease of one year or
3longer executed or in effect at the time of purchase of
4tangible personal property by interstate carriers for-hire for
5use as rolling stock moving in interstate commerce as long as
6so used by the interstate carriers for-hire, and equipment
7operated by a telecommunications provider, licensed as a common
8carrier by the Federal Communications Commission, which is
9permanently installed in or affixed to aircraft moving in
10interstate commerce.
11    (c) The use, in this State, by owners, lessors, or shippers
12of tangible personal property that is utilized by interstate
13carriers for hire for use as rolling stock moving in interstate
14commerce as long as so used by the interstate carriers for
15hire, and equipment operated by a telecommunications provider,
16licensed as a common carrier by the Federal Communications
17Commission, which is permanently installed in or affixed to
18aircraft moving in interstate commerce.
19    (d) The use, in this State, of tangible personal property
20that is acquired outside this State and caused to be brought
21into this State by a person who has already paid a tax in
22another State in respect to the sale, purchase, or use of that
23property, to the extent of the amount of the tax properly due
24and paid in the other State.
25    (e) The temporary storage, in this State, of tangible
26personal property that is acquired outside this State and that,

 

 

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1after being brought into this State and stored here
2temporarily, is used solely outside this State or is physically
3attached to or incorporated into other tangible personal
4property that is used solely outside this State, or is altered
5by converting, fabricating, manufacturing, printing,
6processing, or shaping, and, as altered, is used solely outside
7this State.
8    (f) The temporary storage in this State of building
9materials and fixtures that are acquired either in this State
10or outside this State by an Illinois registered combination
11retailer and construction contractor, and that the purchaser
12thereafter uses outside this State by incorporating that
13property into real estate located outside this State.
14    (g) The use or purchase of tangible personal property by a
15common carrier by rail or motor that receives the physical
16possession of the property in Illinois, and that transports the
17property, or shares with another common carrier in the
18transportation of the property, out of Illinois on a standard
19uniform bill of lading showing the seller of the property as
20the shipper or consignor of the property to a destination
21outside Illinois, for use outside Illinois.
22    (h) Except as provided in subsection (h-1), the use, in
23this State, of a motor vehicle that was sold in this State to a
24nonresident, even though the motor vehicle is delivered to the
25nonresident in this State, if the motor vehicle is not to be
26titled in this State, and if a drive-away permit is issued to

 

 

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

 

 

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

 

 

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1        signed and dated certification, on a form prescribed by
2        the Department, certifying that the requirements of
3        this item (1) are met. The certificate must also
4        include the name and address of the purchaser, the
5        address of the location where the aircraft is to be
6        titled or registered, the address of the primary
7        physical location of the aircraft, and other
8        information that the Department may reasonably
9        require.
10        (2) Beginning on July 1, 2007, no tax is imposed under
11    this Act on the use of an aircraft, as defined in Section 3
12    of the Illinois Aeronautics Act, that is temporarily
13    located in this State for the purpose of a prepurchase
14    evaluation if all of the following conditions are met:
15            (A) the aircraft is not based or registered in this
16        State after the prepurchase evaluation; and
17            (B) the purchaser provides the Department with a
18        signed and dated certification, on a form prescribed by
19        the Department, certifying that the requirements of
20        this item (2) are met. The certificate must also
21        include the name and address of the purchaser, the
22        address of the location where the aircraft is to be
23        titled or registered, the address of the primary
24        physical location of the aircraft, and other
25        information that the Department may reasonably
26        require.

 

 

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1        (3) Beginning on July 1, 2007, no tax is imposed under
2    this Act on the use of an aircraft, as defined in Section 3
3    of the Illinois Aeronautics Act, that is temporarily
4    located in this State for the purpose of a post-sale
5    customization if all of the following conditions are met:
6            (A) the aircraft leaves this State within 15 days
7        after the authorized approval for return to service,
8        completion of the maintenance record entry, and
9        completion of the test flight and ground test for
10        inspection, as required by 14 C.F.R. 91.407;
11            (B) the aircraft is not based or registered in this
12        State either before or after the post-sale
13        customization; and
14            (C) the purchaser provides the Department with a
15        signed and dated certification, on a form prescribed by
16        the Department, certifying that the requirements of
17        this item (3) are met. The certificate must also
18        include the name and address of the purchaser, the
19        address of the location where the aircraft is to be
20        titled or registered, the address of the primary
21        physical location of the aircraft, and other
22        information that the Department may reasonably
23        require.
24    If tax becomes due under this subsection (h-2) because of
25the purchaser's use of the aircraft in this State, the
26purchaser shall file a return with the Department and pay the

 

 

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1tax on the fair market value of the aircraft. This return and
2payment of the tax must be made no later than 30 days after the
3aircraft is used in a taxable manner in this State. The tax is
4based on the fair market value of the aircraft on the date that
5it is first used in a taxable manner in this State.
6    For purposes of this subsection (h-2):
7    "Based in this State" means hangared, stored, or otherwise
8used, excluding post-sale customizations as defined in this
9Section, for 10 or more days in each 12-month period
10immediately following the date of the sale of the aircraft.
11    "Post-sale customization" means any improvement,
12maintenance, or repair that is performed on an aircraft
13following a transfer of ownership of the aircraft.
14    "Prepurchase evaluation" means an examination of an
15aircraft to provide a potential purchaser with information
16relevant to the potential purchase.
17    "Registered in this State" means an aircraft registered
18with the Department of Transportation, Aeronautics Division,
19or titled or registered with the Federal Aviation
20Administration to an address located in this State.
21    This subsection (h-2) is exempt from the provisions of
22Section 3-90.
23    (i) Beginning July 1, 1999, the use, in this State, of fuel
24acquired outside this State and brought into this State in the
25fuel supply tanks of locomotives engaged in freight hauling and
26passenger service for interstate commerce. This subsection is

 

 

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1exempt from the provisions of Section 3-90.
2    (j) Beginning on January 1, 2002 and through June 30, 2016
32011, the use of tangible personal property purchased from an
4Illinois retailer by a taxpayer engaged in centralized
5purchasing activities in Illinois who will, upon receipt of the
6property in Illinois, temporarily store the property in
7Illinois (i) for the purpose of subsequently transporting it
8outside this State for use or consumption thereafter solely
9outside this State or (ii) for the purpose of being processed,
10fabricated, or manufactured into, attached to, or incorporated
11into other tangible personal property to be transported outside
12this State and thereafter used or consumed solely outside this
13State. The Director of Revenue shall, pursuant to rules adopted
14in accordance with the Illinois Administrative Procedure Act,
15issue a permit to any taxpayer in good standing with the
16Department who is eligible for the exemption under this
17subsection (j). The permit issued under this subsection (j)
18shall authorize the holder, to the extent and in the manner
19specified in the rules adopted under this Act, to purchase
20tangible personal property from a retailer exempt from the
21taxes imposed by this Act. Taxpayers shall maintain all
22necessary books and records to substantiate the use and
23consumption of all such tangible personal property outside of
24the State of Illinois.
25(Source: P.A. 94-1002, eff. 7-3-06; 95-304, eff. 8-20-07.)
 

 

 

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1    Section 10. The Service Use Tax Act is amended by changing
2Section 3-45 as follows:
 
3    (35 ILCS 110/3-45)  (from Ch. 120, par. 439.33-45)
4    Sec. 3-45. Multistate exemption. To prevent actual or
5likely multistate taxation, the tax imposed by this Act does
6not apply to the use of tangible personal property in this
7State under the following circumstances:
8    (a) The use, in this State, of property acquired outside
9this State by a nonresident individual and brought into this
10State by the individual for his or her own use while
11temporarily within this State or while passing through this
12State.
13    (b) The use, in this State, of property that is acquired
14outside this State and that is moved into this State for use as
15rolling stock moving in interstate commerce.
16    (c) The use, in this State, of property that is acquired
17outside this State and caused to be brought into this State by
18a person who has already paid a tax in another state in respect
19to the sale, purchase, or use of that property, to the extent
20of the amount of the tax properly due and paid in the other
21state.
22    (d) The temporary storage, in this State, of property that
23is acquired outside this State and that after being brought
24into this State and stored here temporarily, is used solely
25outside this State or is physically attached to or incorporated

 

 

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1into other property that is used solely outside this State, or
2is altered by converting, fabricating, manufacturing,
3printing, processing, or shaping, and, as altered, is used
4solely outside this State.
5    (e) Beginning July 1, 1999, the use, in this State, of fuel
6acquired outside this State and brought into this State in the
7fuel supply tanks of locomotives engaged in freight hauling and
8passenger service for interstate commerce. This subsection is
9exempt from the provisions of Section 3-75.
10    (f) Beginning on January 1, 2002 and through June 30, 2016
112011, the use of tangible personal property purchased from an
12Illinois retailer by a taxpayer engaged in centralized
13purchasing activities in Illinois who will, upon receipt of the
14property in Illinois, temporarily store the property in
15Illinois (i) for the purpose of subsequently transporting it
16outside this State for use or consumption thereafter solely
17outside this State or (ii) for the purpose of being processed,
18fabricated, or manufactured into, attached to, or incorporated
19into other tangible personal property to be transported outside
20this State and thereafter used or consumed solely outside this
21State. The Director of Revenue shall, pursuant to rules adopted
22in accordance with the Illinois Administrative Procedure Act,
23issue a permit to any taxpayer in good standing with the
24Department who is eligible for the exemption under this
25subsection (f). The permit issued under this subsection (f)
26shall authorize the holder, to the extent and in the manner

 

 

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1specified in the rules adopted under this Act, to purchase
2tangible personal property from a retailer exempt from the
3taxes imposed by this Act. Taxpayers shall maintain all
4necessary books and records to substantiate the use and
5consumption of all such tangible personal property outside of
6the State of Illinois.
7(Source: P.A. 93-23, eff. 6-20-03; 94-1002, eff. 7-3-06.)
 
8    Section 15. The Service Occupation Tax Act is amended by
9changing Section 3-5 as follows:
 
10    (35 ILCS 115/3-5)
11    Sec. 3-5. Exemptions. The following tangible personal
12property is exempt from the tax imposed by this Act:
13    (1) Personal property sold by a corporation, society,
14association, foundation, institution, or organization, other
15than a limited liability company, that is organized and
16operated as a not-for-profit service enterprise for the benefit
17of persons 65 years of age or older if the personal property
18was not purchased by the enterprise for the purpose of resale
19by the enterprise.
20    (2) Personal property purchased by a not-for-profit
21Illinois county fair association for use in conducting,
22operating, or promoting the county fair.
23    (3) Personal property purchased by any not-for-profit arts
24or cultural organization that establishes, by proof required by

 

 

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1the Department by rule, that it has received an exemption under
2Section 501(c)(3) of the Internal Revenue Code and that is
3organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after the effective date
10of this amendatory Act of the 92nd General Assembly, however,
11an entity otherwise eligible for this exemption shall not make
12tax-free purchases unless it has an active identification
13number issued by the Department.
14    (4) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18    (5) Until July 1, 2003 and beginning again on September 1,
192004 through August 30, 2014, graphic arts machinery and
20equipment, including repair and replacement parts, both new and
21used, and including that manufactured on special order or
22purchased for lease, certified by the purchaser to be used
23primarily for graphic arts production. Equipment includes
24chemicals or chemicals acting as catalysts but only if the
25chemicals or chemicals acting as catalysts effect a direct and
26immediate change upon a graphic arts product.

 

 

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

 

 

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

 

 

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1imposed.
2    (10) Until July 1, 2003, oil field exploration, drilling,
3and production equipment, including (i) rigs and parts of rigs,
4rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
5tubular goods, including casing and drill strings, (iii) pumps
6and pump-jack units, (iv) storage tanks and flow lines, (v) any
7individual replacement part for oil field exploration,
8drilling, and production equipment, and (vi) machinery and
9equipment purchased for lease; but excluding motor vehicles
10required to be registered under the Illinois Vehicle Code.
11    (11) Photoprocessing machinery and equipment, including
12repair and replacement parts, both new and used, including that
13manufactured on special order, certified by the purchaser to be
14used primarily for photoprocessing, and including
15photoprocessing machinery and equipment purchased for lease.
16    (12) Until July 1, 2003, coal exploration, mining,
17offhighway hauling, processing, maintenance, and reclamation
18equipment, including replacement parts and equipment, and
19including equipment purchased for lease, but excluding motor
20vehicles required to be registered under the Illinois Vehicle
21Code.
22    (13) Beginning January 1, 1992 and through June 30, 2011,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks and food that has been prepared for immediate
26consumption) and prescription and non-prescription medicines,

 

 

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1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or in a licensed facility as defined
7in the MR/DD Community Care Act.
8    (14) Semen used for artificial insemination of livestock
9for direct agricultural production.
10    (15) Horses, or interests in horses, registered with and
11meeting the requirements of any of the Arabian Horse Club
12Registry of America, Appaloosa Horse Club, American Quarter
13Horse Association, United States Trotting Association, or
14Jockey Club, as appropriate, used for purposes of breeding or
15racing for prizes. This item (15) is exempt from the provisions
16of Section 3-55, and the exemption provided for under this item
17(15) applies for all periods beginning May 30, 1995, but no
18claim for credit or refund is allowed on or after January 1,
192008 (the effective date of Public Act 95-88) for such taxes
20paid during the period beginning May 30, 2000 and ending on
21January 1, 2008 (the effective date of Public Act 95-88).
22    (16) Computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients sold to a lessor
25who leases the equipment, under a lease of one year or longer
26executed or in effect at the time of the purchase, to a

 

 

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1hospital that has been issued an active tax exemption
2identification number by the Department under Section 1g of the
3Retailers' Occupation Tax Act.
4    (17) Personal property sold to a lessor who leases the
5property, under a lease of one year or longer executed or in
6effect at the time of the purchase, to a governmental body that
7has been issued an active tax exemption identification number
8by the Department under Section 1g of the Retailers' Occupation
9Tax Act.
10    (18) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is donated for
13disaster relief to be used in a State or federally declared
14disaster area in Illinois or bordering Illinois by a
15manufacturer or retailer that is registered in this State to a
16corporation, society, association, foundation, or institution
17that has been issued a sales tax exemption identification
18number by the Department that assists victims of the disaster
19who reside within the declared disaster area.
20    (19) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is used in the
23performance of infrastructure repairs in this State, including
24but not limited to municipal roads and streets, access roads,
25bridges, sidewalks, waste disposal systems, water and sewer
26line extensions, water distribution and purification

 

 

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1facilities, storm water drainage and retention facilities, and
2sewage treatment facilities, resulting from a State or
3federally declared disaster in Illinois or bordering Illinois
4when such repairs are initiated on facilities located in the
5declared disaster area within 6 months after the disaster.
6    (20) Beginning July 1, 1999, game or game birds sold at a
7"game breeding and hunting preserve area" or an "exotic game
8hunting area" as those terms are used in the Wildlife Code or
9at a hunting enclosure approved through rules adopted by the
10Department of Natural Resources. This paragraph is exempt from
11the provisions of Section 3-55.
12    (21) A motor vehicle, as that term is defined in Section
131-146 of the Illinois Vehicle Code, that is donated to a
14corporation, limited liability company, society, association,
15foundation, or institution that is determined by the Department
16to be organized and operated exclusively for educational
17purposes. For purposes of this exemption, "a corporation,
18limited liability company, society, association, foundation,
19or institution organized and operated exclusively for
20educational purposes" means all tax-supported public schools,
21private schools that offer systematic instruction in useful
22branches of learning by methods common to public schools and
23that compare favorably in their scope and intensity with the
24course of study presented in tax-supported schools, and
25vocational or technical schools or institutes organized and
26operated exclusively to provide a course of study of not less

 

 

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1than 6 weeks duration and designed to prepare individuals to
2follow a trade or to pursue a manual, technical, mechanical,
3industrial, business, or commercial occupation.
4    (22) Beginning January 1, 2000, personal property,
5including food, purchased through fundraising events for the
6benefit of a public or private elementary or secondary school,
7a group of those schools, or one or more school districts if
8the events are sponsored by an entity recognized by the school
9district that consists primarily of volunteers and includes
10parents and teachers of the school children. This paragraph
11does not apply to fundraising events (i) for the benefit of
12private home instruction or (ii) for which the fundraising
13entity purchases the personal property sold at the events from
14another individual or entity that sold the property for the
15purpose of resale by the fundraising entity and that profits
16from the sale to the fundraising entity. This paragraph is
17exempt from the provisions of Section 3-55.
18    (23) Beginning January 1, 2000 and through December 31,
192001, new or used automatic vending machines that prepare and
20serve hot food and beverages, including coffee, soup, and other
21items, and replacement parts for these machines. Beginning
22January 1, 2002 and through June 30, 2003, machines and parts
23for machines used in commercial, coin-operated amusement and
24vending business if a use or occupation tax is paid on the
25gross receipts derived from the use of the commercial,
26coin-operated amusement and vending machines. This paragraph

 

 

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1is exempt from the provisions of Section 3-55.
2    (24) Beginning on the effective date of this amendatory Act
3of the 92nd General Assembly, computers and communications
4equipment utilized for any hospital purpose and equipment used
5in the diagnosis, analysis, or treatment of hospital patients
6sold to a lessor who leases the equipment, under a lease of one
7year or longer executed or in effect at the time of the
8purchase, to a hospital that has been issued an active tax
9exemption identification number by the Department under
10Section 1g of the Retailers' Occupation Tax Act. This paragraph
11is exempt from the provisions of Section 3-55.
12    (25) Beginning on the effective date of this amendatory Act
13of the 92nd General Assembly, personal property sold to a
14lessor who leases the property, under a lease of one year or
15longer executed or in effect at the time of the purchase, to a
16governmental body that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act. This paragraph is exempt from
19the provisions of Section 3-55.
20    (26) Beginning on January 1, 2002 and through June 30, 2016
212011, tangible personal property purchased from an Illinois
22retailer by a taxpayer engaged in centralized purchasing
23activities in Illinois who will, upon receipt of the property
24in Illinois, temporarily store the property in Illinois (i) for
25the purpose of subsequently transporting it outside this State
26for use or consumption thereafter solely outside this State or

 

 

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1(ii) for the purpose of being processed, fabricated, or
2manufactured into, attached to, or incorporated into other
3tangible personal property to be transported outside this State
4and thereafter used or consumed solely outside this State. The
5Director of Revenue shall, pursuant to rules adopted in
6accordance with the Illinois Administrative Procedure Act,
7issue a permit to any taxpayer in good standing with the
8Department who is eligible for the exemption under this
9paragraph (26). The permit issued under this paragraph (26)
10shall authorize the holder, to the extent and in the manner
11specified in the rules adopted under this Act, to purchase
12tangible personal property from a retailer exempt from the
13taxes imposed by this Act. Taxpayers shall maintain all
14necessary books and records to substantiate the use and
15consumption of all such tangible personal property outside of
16the State of Illinois.
17    (27) Beginning January 1, 2008, tangible personal property
18used in the construction or maintenance of a community water
19supply, as defined under Section 3.145 of the Environmental
20Protection Act, that is operated by a not-for-profit
21corporation that holds a valid water supply permit issued under
22Title IV of the Environmental Protection Act. This paragraph is
23exempt from the provisions of Section 3-55.
24    (28) Tangible personal property sold to a
25public-facilities corporation, as described in Section
2611-65-10 of the Illinois Municipal Code, for purposes of

 

 

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1constructing or furnishing a municipal convention hall, but
2only if the legal title to the municipal convention hall is
3transferred to the municipality without any further
4consideration by or on behalf of the municipality at the time
5of the completion of the municipal convention hall or upon the
6retirement or redemption of any bonds or other debt instruments
7issued by the public-facilities corporation in connection with
8the development of the municipal convention hall. This
9exemption includes existing public-facilities corporations as
10provided in Section 11-65-25 of the Illinois Municipal Code.
11This paragraph is exempt from the provisions of Section 3-55.
12    (29) 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 those organizations that

 

 

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1(i) hold an Air Agency Certificate and are empowered to operate
2an approved repair station by the Federal Aviation
3Administration, (ii) have a Class IV Rating, and (iii) conduct
4operations in accordance with Part 145 of the Federal Aviation
5Regulations. The exemption does not include aircraft operated
6by a commercial air carrier providing scheduled passenger air
7service pursuant to authority issued under Part 121 or Part 129
8of the Federal Aviation Regulations.
9(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
10eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1196-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
127-2-10.)
 
13    Section 20. The Retailers' Occupation Tax Act is amended by
14changing Section 2-5 as follows:
 
15    (35 ILCS 120/2-5)
16    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
17sale of the following tangible personal property are exempt
18from the tax imposed by this Act:
19    (1) Farm chemicals.
20    (2) Farm machinery and equipment, both new and used,
21including that manufactured on special order, certified by the
22purchaser to be used primarily for production agriculture or
23State or federal agricultural programs, including individual
24replacement parts for the machinery and equipment, including

 

 

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

 

 

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1to, the collection, monitoring, and correlation of animal and
2crop data for the purpose of formulating animal diets and
3agricultural chemicals. This item (7) is exempt from the
4provisions of Section 2-70.
5    (3) Until July 1, 2003, distillation machinery and
6equipment, sold as a unit or kit, assembled or installed by the
7retailer, certified by the user to be used only for the
8production of ethyl alcohol that will be used for consumption
9as motor fuel or as a component of motor fuel for the personal
10use of the user, and not subject to sale or resale.
11    (4) Until July 1, 2003 and beginning again September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new and
14used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product.
20    (5) A motor vehicle of the first division, a motor vehicle
21of the second division that is a self contained motor vehicle
22designed or permanently converted to provide living quarters
23for recreational, camping, or travel use, with direct walk
24through access to the living quarters from the driver's seat,
25or a motor vehicle of the second division that is of the van
26configuration designed for the transportation of not less than

 

 

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17 nor more than 16 passengers, as defined in Section 1-146 of
2the Illinois Vehicle Code, that is used for automobile renting,
3as defined in the Automobile Renting Occupation and Use Tax
4Act. This paragraph is exempt from the provisions of Section
52-70.
6    (6) Personal property sold by a teacher-sponsored student
7organization affiliated with an elementary or secondary school
8located in Illinois.
9    (7) Until July 1, 2003, proceeds of that portion of the
10selling price of a passenger car the sale of which is subject
11to the Replacement Vehicle Tax.
12    (8) Personal property sold to an Illinois county fair
13association for use in conducting, operating, or promoting the
14county fair.
15    (9) Personal property sold to a not-for-profit arts or
16cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after the effective date
26of this amendatory Act of the 92nd General Assembly, however,

 

 

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1an entity otherwise eligible for this exemption shall not make
2tax-free purchases unless it has an active identification
3number issued by the Department.
4    (10) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the benefit
8of persons 65 years of age or older if the personal property
9was not purchased by the enterprise for the purpose of resale
10by the enterprise.
11    (11) Personal property sold to a governmental body, to a
12corporation, society, association, foundation, or institution
13organized and operated exclusively for charitable, religious,
14or educational purposes, or to a not-for-profit corporation,
15society, association, foundation, institution, or organization
16that has no compensated officers or employees and that is
17organized and operated primarily for the recreation of persons
1855 years of age or older. A limited liability company may
19qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active
24identification number issued by the Department.
25    (12) Tangible personal property sold to interstate
26carriers for hire for use as rolling stock moving in interstate

 

 

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

 

 

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1tangible personal property that is utilized by interstate
2carriers for hire for use as rolling stock moving in interstate
3commerce and equipment operated by a telecommunications
4provider, licensed as a common carrier by the Federal
5Communications Commission, which is permanently installed in
6or affixed to aircraft moving in interstate commerce.
7    (14) Machinery and equipment that will be used by the
8purchaser, or a lessee of the purchaser, primarily in the
9process of manufacturing or assembling tangible personal
10property for wholesale or retail sale or lease, whether the
11sale or lease is made directly by the manufacturer or by some
12other person, whether the materials used in the process are
13owned by the manufacturer or some other person, or whether the
14sale or lease is made apart from or as an incident to the
15seller's engaging in the service occupation of producing
16machines, tools, dies, jigs, patterns, gauges, or other similar
17items of no commercial value on special order for a particular
18purchaser.
19    (15) Proceeds of mandatory service charges separately
20stated on customers' bills for purchase and consumption of food
21and beverages, to the extent that the proceeds of the service
22charge are in fact turned over as tips or as a substitute for
23tips to the employees who participate directly in preparing,
24serving, hosting or cleaning up the food or beverage function
25with respect to which the service charge is imposed.
26    (16) Petroleum products sold to a purchaser if the seller

 

 

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

 

 

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1used primarily for photoprocessing, and including
2photoprocessing machinery and equipment purchased for lease.
3    (21) Until July 1, 2003, coal exploration, mining,
4offhighway hauling, processing, maintenance, and reclamation
5equipment, including replacement parts and equipment, and
6including equipment purchased for lease, but excluding motor
7vehicles required to be registered under the Illinois Vehicle
8Code.
9    (22) Fuel and petroleum products sold to or used by an air
10carrier, certified by the carrier to be used for consumption,
11shipment, or storage in the conduct of its business as an air
12common carrier, for a flight destined for or returning from a
13location or locations outside the United States without regard
14to previous or subsequent domestic stopovers.
15    (23) A transaction in which the purchase order is received
16by a florist who is located outside Illinois, but who has a
17florist located in Illinois deliver the property to the
18purchaser or the purchaser's donee in Illinois.
19    (24) Fuel consumed or used in the operation of ships,
20barges, or vessels that are used primarily in or for the
21transportation of property or the conveyance of persons for
22hire on rivers bordering on this State if the fuel is delivered
23by the seller to the purchaser's barge, ship, or vessel while
24it is afloat upon that bordering river.
25    (25) Except as provided in item (25-5) of this Section, a
26motor vehicle sold in this State to a nonresident even though

 

 

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

 

 

09700SB0401sam001- 34 -LRB097 04211 HLH 54251 a

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

 

 

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

 

 

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1racing for prizes. This item (27) is exempt from the provisions
2of Section 2-70, and the exemption provided for under this item
3(27) applies for all periods beginning May 30, 1995, but no
4claim for credit or refund is allowed on or after January 1,
52008 (the effective date of Public Act 95-88) for such taxes
6paid during the period beginning May 30, 2000 and ending on
7January 1, 2008 (the effective date of Public Act 95-88).
8    (28) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients sold to a lessor
11who leases the equipment, under a lease of one year or longer
12executed or in effect at the time of the purchase, to a
13hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of
15this Act.
16    (29) Personal property sold to a lessor who leases the
17property, under a lease of one year or longer executed or in
18effect at the time of the purchase, to a governmental body that
19has been issued an active tax exemption identification number
20by the Department under Section 1g of this Act.
21    (30) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is donated for
24disaster relief to be used in a State or federally declared
25disaster area in Illinois or bordering Illinois by a
26manufacturer or retailer that is registered in this State to a

 

 

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1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (31) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in the
8performance of infrastructure repairs in this State, including
9but not limited to municipal roads and streets, access roads,
10bridges, sidewalks, waste disposal systems, water and sewer
11line extensions, water distribution and purification
12facilities, storm water drainage and retention facilities, and
13sewage treatment facilities, resulting from a State or
14federally declared disaster in Illinois or bordering Illinois
15when such repairs are initiated on facilities located in the
16declared disaster area within 6 months after the disaster.
17    (32) Beginning July 1, 1999, game or game birds sold at a
18"game breeding and hunting preserve area" or an "exotic game
19hunting area" as those terms are used in the Wildlife Code or
20at a hunting enclosure approved through rules adopted by the
21Department of Natural Resources. This paragraph is exempt from
22the provisions of Section 2-70.
23    (33) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the Department

 

 

09700SB0401sam001- 38 -LRB097 04211 HLH 54251 a

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

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 2-70.
3    (35) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and other
6items, and replacement parts for these machines. Beginning
7January 1, 2002 and through June 30, 2003, machines and parts
8for machines used in commercial, coin-operated amusement and
9vending business if a use or occupation tax is paid on the
10gross receipts derived from the use of the commercial,
11coin-operated amusement and vending machines. This paragraph
12is exempt from the provisions of Section 2-70.
13    (35-5) Beginning August 23, 2001 and through June 30, 2011,
14food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages, soft
16drinks, and food that has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances, and insulin, urine testing
19materials, syringes, and needles used by diabetics, for human
20use, when purchased for use by a person receiving medical
21assistance under Article V of the Illinois Public Aid Code who
22resides in a licensed long-term care facility, as defined in
23the Nursing Home Care Act, or a licensed facility as defined in
24the MR/DD Community Care Act.
25    (36) Beginning August 2, 2001, computers and
26communications equipment utilized for any hospital purpose and

 

 

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1equipment used in the diagnosis, analysis, or treatment of
2hospital patients sold to a lessor who leases the equipment,
3under a lease of one year or longer executed or in effect at
4the time of the purchase, to a hospital that has been issued an
5active tax exemption identification number by the Department
6under Section 1g of this Act. This paragraph is exempt from the
7provisions of Section 2-70.
8    (37) Beginning August 2, 2001, personal property sold to a
9lessor who leases the property, under a lease of one year or
10longer executed or in effect at the time of the purchase, to a
11governmental body that has been issued an active tax exemption
12identification number by the Department under Section 1g of
13this Act. This paragraph is exempt from the provisions of
14Section 2-70.
15    (38) Beginning on January 1, 2002 and through June 30, 2016
162011, tangible personal property purchased from an Illinois
17retailer by a taxpayer engaged in centralized purchasing
18activities in Illinois who will, upon receipt of the property
19in Illinois, temporarily store the property in Illinois (i) for
20the purpose of subsequently transporting it outside this State
21for use or consumption thereafter solely outside this State or
22(ii) for the purpose of being processed, fabricated, or
23manufactured into, attached to, or incorporated into other
24tangible personal property to be transported outside this State
25and thereafter used or consumed solely outside this State. The
26Director of Revenue shall, pursuant to rules adopted in

 

 

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

 

 

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1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to those organizations that
8(i) hold an Air Agency Certificate and are empowered to operate
9an approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations. The exemption does not include aircraft operated
13by a commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part 129
15of the Federal Aviation Regulations.
16    (41) Tangible personal property sold to a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

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1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 2-70.
4(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
5eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;
695-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
77-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
8eff. 7-2-10.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".