Full Text of HB3883 98th General Assembly
HB3883ham001 98TH GENERAL ASSEMBLY | Rep. Michael J. Zalewski Filed: 3/26/2014
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| 1 | | AMENDMENT TO HOUSE BILL 3883
| 2 | | AMENDMENT NO. ______. Amend House Bill 3883 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Use Tax Act is amended by changing Section | 5 | | 3-5 as follows:
| 6 | | (35 ILCS 105/3-5)
| 7 | | Sec. 3-5. Exemptions. Use of the following tangible | 8 | | personal property
is exempt from the tax imposed by this Act:
| 9 | | (1) Personal property purchased from a corporation, | 10 | | society, association,
foundation, institution, or | 11 | | organization, other than a limited liability
company, that is | 12 | | organized and operated as a not-for-profit service enterprise
| 13 | | for the benefit of persons 65 years of age or older if the | 14 | | personal property
was not purchased by the enterprise for the | 15 | | purpose of resale by the
enterprise.
| 16 | | (2) Personal property purchased by a not-for-profit |
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| 1 | | Illinois county
fair association for use in conducting, | 2 | | operating, or promoting the
county fair.
| 3 | | (3) Personal property purchased by a not-for-profit
arts or | 4 | | cultural organization that establishes, by proof required by | 5 | | the
Department by
rule, that it has received an exemption under | 6 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 7 | | organized and operated primarily for the
presentation
or | 8 | | support of arts or cultural programming, activities, or | 9 | | services. These
organizations include, but are not limited to, | 10 | | music and dramatic arts
organizations such as symphony | 11 | | orchestras and theatrical groups, arts and
cultural service | 12 | | organizations, local arts councils, visual arts organizations,
| 13 | | and media arts organizations.
On and after the effective date | 14 | | of this amendatory Act of the 92nd General
Assembly, however, | 15 | | an entity otherwise eligible for this exemption shall not
make | 16 | | tax-free purchases unless it has an active identification | 17 | | number issued by
the Department.
| 18 | | (4) Personal property purchased by a governmental body, by | 19 | | a
corporation, society, association, foundation, or | 20 | | institution organized and
operated exclusively for charitable, | 21 | | religious, or educational purposes, or
by a not-for-profit | 22 | | corporation, society, association, foundation,
institution, or | 23 | | organization that has no compensated officers or employees
and | 24 | | that is organized and operated primarily for the recreation of | 25 | | persons
55 years of age or older. A limited liability company | 26 | | may qualify for the
exemption under this paragraph only if the |
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| 1 | | limited liability company is
organized and operated | 2 | | exclusively for educational purposes. On and after July
1, | 3 | | 1987, however, no entity otherwise eligible for this exemption | 4 | | shall make
tax-free purchases unless it has an active exemption | 5 | | identification number
issued by the Department.
| 6 | | (5) Until July 1, 2003, a passenger car that is a | 7 | | replacement vehicle to
the extent that the
purchase price of | 8 | | the car is subject to the Replacement Vehicle Tax.
| 9 | | (6) Until July 1, 2003 and beginning again on September 1, | 10 | | 2004 through August 30, 2014, graphic arts machinery and | 11 | | equipment, including
repair and replacement
parts, both new and | 12 | | used, and including that manufactured on special order,
| 13 | | certified by the purchaser to be used primarily for graphic | 14 | | arts production,
and including machinery and equipment | 15 | | purchased for lease.
Equipment includes chemicals or chemicals | 16 | | acting as catalysts but only if
the
chemicals or chemicals | 17 | | acting as catalysts effect a direct and immediate change
upon a | 18 | | graphic arts product.
| 19 | | (7) Farm chemicals.
| 20 | | (8) Legal tender, currency, medallions, or gold or silver | 21 | | coinage issued by
the State of Illinois, the government of the | 22 | | United States of America, or the
government of any foreign | 23 | | country, and bullion.
| 24 | | (9) Personal property purchased from a teacher-sponsored | 25 | | student
organization affiliated with an elementary or | 26 | | secondary school located in
Illinois.
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| 1 | | (10) A motor vehicle that is used for automobile renting, | 2 | | as defined in the
Automobile Renting Occupation and Use Tax | 3 | | Act.
| 4 | | (11) Farm machinery and equipment, both new and used,
| 5 | | including that manufactured on special order, certified by the | 6 | | purchaser
to be used primarily for production agriculture or | 7 | | State or federal
agricultural programs, including individual | 8 | | replacement parts for
the machinery and equipment, including | 9 | | machinery and equipment
purchased
for lease,
and including | 10 | | implements of husbandry defined in Section 1-130 of
the | 11 | | Illinois Vehicle Code, farm machinery and agricultural | 12 | | chemical and
fertilizer spreaders, and nurse wagons required to | 13 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 14 | | but excluding other motor
vehicles required to be
registered | 15 | | under the Illinois Vehicle Code.
Horticultural polyhouses or | 16 | | hoop houses used for propagating, growing, or
overwintering | 17 | | plants shall be considered farm machinery and equipment under
| 18 | | this item (11).
Agricultural chemical tender tanks and dry | 19 | | boxes shall include units sold
separately from a motor vehicle | 20 | | required to be licensed and units sold mounted
on a motor | 21 | | vehicle required to be licensed if the selling price of the | 22 | | tender
is separately stated.
| 23 | | Farm machinery and equipment shall include precision | 24 | | farming equipment
that is
installed or purchased to be | 25 | | installed on farm machinery and equipment
including, but not | 26 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
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| 1 | | or spreaders.
Precision farming equipment includes, but is not | 2 | | limited to, soil testing
sensors, computers, monitors, | 3 | | software, global positioning
and mapping systems, and other | 4 | | such equipment.
| 5 | | Farm machinery and equipment also includes computers, | 6 | | sensors, software, and
related equipment used primarily in the
| 7 | | computer-assisted operation of production agriculture | 8 | | facilities, equipment,
and
activities such as, but not limited | 9 | | to,
the collection, monitoring, and correlation of
animal and | 10 | | crop data for the purpose of
formulating animal diets and | 11 | | agricultural chemicals. This item (11) is exempt
from the | 12 | | provisions of
Section 3-90.
| 13 | | (12) Until June 30, 2013, fuel and petroleum products sold | 14 | | to or used by an air common
carrier, certified by the carrier | 15 | | to be used for consumption, shipment, or
storage in the conduct | 16 | | of its business as an air common carrier, for a
flight destined | 17 | | for or returning from a location or locations
outside the | 18 | | United States without regard to previous or subsequent domestic
| 19 | | stopovers.
| 20 | | Beginning July 1, 2013, fuel and petroleum products sold to | 21 | | or used by an air carrier, certified by the carrier to be used | 22 | | for consumption, shipment, or storage in the conduct of its | 23 | | business as an air common carrier, for a flight that (i) is | 24 | | engaged in foreign trade or is engaged in trade between the | 25 | | United States and any of its possessions and (ii) transports at | 26 | | least one individual or package for hire from the city of |
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| 1 | | origination to the city of final destination on the same | 2 | | aircraft, without regard to a change in the flight number of | 3 | | that aircraft. | 4 | | (13) Proceeds of mandatory service charges separately
| 5 | | stated on customers' bills for the purchase and consumption of | 6 | | food and
beverages purchased at retail from a retailer, to the | 7 | | extent that the proceeds
of the service charge are in fact | 8 | | turned over as tips or as a substitute
for tips to the | 9 | | employees who participate directly in preparing, serving,
| 10 | | hosting or cleaning up the food or beverage function with | 11 | | respect to which
the service charge is imposed.
| 12 | | (14) Until July 1, 2003, oil field exploration, drilling, | 13 | | and production
equipment,
including (i) rigs and parts of rigs, | 14 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 15 | | tubular goods,
including casing and drill strings, (iii) pumps | 16 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 17 | | individual replacement part for oil
field exploration, | 18 | | drilling, and production equipment, and (vi) machinery and
| 19 | | equipment purchased
for lease; but excluding motor vehicles | 20 | | required to be registered under the
Illinois Vehicle Code.
| 21 | | (15) Photoprocessing machinery and equipment, including | 22 | | repair and
replacement parts, both new and used, including that
| 23 | | manufactured on special order, certified by the purchaser to be | 24 | | used
primarily for photoprocessing, and including
| 25 | | photoprocessing machinery and equipment purchased for lease.
| 26 | | (16) Coal and aggregate exploration, mining, off-highway |
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| 1 | | offhighway hauling,
processing, maintenance, and reclamation | 2 | | equipment,
including replacement parts and equipment, and
| 3 | | including equipment purchased for lease, but excluding motor
| 4 | | vehicles required to be registered under the Illinois Vehicle | 5 | | Code. The changes made to this Section by Public Act 97-767 | 6 | | apply on and after July 1, 2003, but no claim for credit or | 7 | | refund is allowed on or after August 16, 2013 ( the effective | 8 | | date of Public Act 98-456) this amendatory Act of the 98th | 9 | | General Assembly
for such taxes paid during the period | 10 | | beginning July 1, 2003 and ending on August 16, 2013 ( the | 11 | | effective date of Public Act 98-456) this amendatory Act of the | 12 | | 98th General Assembly .
| 13 | | (17) Until July 1, 2003, distillation machinery and | 14 | | equipment, sold as a
unit or kit,
assembled or installed by the | 15 | | retailer, certified by the user to be used
only for the | 16 | | production of ethyl alcohol that will be used for consumption
| 17 | | as motor fuel or as a component of motor fuel for the personal | 18 | | use of the
user, and not subject to sale or resale.
| 19 | | (18) Manufacturing and assembling machinery and equipment | 20 | | used
primarily in the process of manufacturing or assembling | 21 | | tangible
personal property for wholesale or retail sale or | 22 | | lease, whether that sale
or lease is made directly by the | 23 | | manufacturer or by some other person,
whether the materials | 24 | | used in the process are
owned by the manufacturer or some other | 25 | | person, or whether that sale or
lease is made apart from or as | 26 | | an incident to the seller's engaging in
the service occupation |
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| 1 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 2 | | other similar items of no commercial value on
special order for | 3 | | a particular purchaser. The exemption provided by this | 4 | | paragraph (18) does not include machinery and equipment used in | 5 | | (i) the generation of electricity for wholesale or retail sale; | 6 | | (ii) the generation or treatment of natural or artificial gas | 7 | | for wholesale or retail sale that is delivered to customers | 8 | | through pipes, pipelines, or mains; or (iii) the treatment of | 9 | | water for wholesale or retail sale that is delivered to | 10 | | customers through pipes, pipelines, or mains. The provisions of | 11 | | Public Act 98-583 this amendatory Act of the 98th General | 12 | | Assembly are declaratory of existing law as to the meaning and | 13 | | scope of this exemption.
| 14 | | (19) Personal property delivered to a purchaser or | 15 | | purchaser's donee
inside Illinois when the purchase order for | 16 | | that personal property was
received by a florist located | 17 | | outside Illinois who has a florist located
inside Illinois | 18 | | deliver the personal property.
| 19 | | (20) Semen used for artificial insemination of livestock | 20 | | for direct
agricultural production.
| 21 | | (21) Horses, or interests in horses, registered with and | 22 | | meeting the
requirements of any of the
Arabian Horse Club | 23 | | Registry of America, Appaloosa Horse Club, American Quarter
| 24 | | Horse Association, United States
Trotting Association, or | 25 | | Jockey Club, as appropriate, used for
purposes of breeding or | 26 | | racing for prizes. This item (21) is exempt from the provisions |
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| 1 | | of Section 3-90, and the exemption provided for under this item | 2 | | (21) applies for all periods beginning May 30, 1995, but no | 3 | | claim for credit or refund is allowed on or after January 1, | 4 | | 2008
for such taxes paid during the period beginning May 30, | 5 | | 2000 and ending on January 1, 2008.
| 6 | | (22) Computers and communications equipment utilized for | 7 | | any
hospital
purpose
and equipment used in the diagnosis,
| 8 | | analysis, or treatment of hospital patients purchased by a | 9 | | lessor who leases
the
equipment, under a lease of one year or | 10 | | longer executed or in effect at the
time the lessor would | 11 | | otherwise be subject to the tax imposed by this Act, to a
| 12 | | hospital
that has been issued an active tax exemption | 13 | | identification number by
the
Department under Section 1g of the | 14 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 15 | | manner that does not qualify for
this exemption or is used in | 16 | | any other non-exempt manner, the lessor
shall be liable for the
| 17 | | tax imposed under this Act or the Service Use Tax Act, as the | 18 | | case may
be, based on the fair market value of the property at | 19 | | the time the
non-qualifying use occurs. No lessor shall collect | 20 | | or attempt to collect an
amount (however
designated) that | 21 | | purports to reimburse that lessor for the tax imposed by this
| 22 | | Act or the Service Use Tax Act, as the case may be, if the tax | 23 | | has not been
paid by the lessor. If a lessor improperly | 24 | | collects any such amount from the
lessee, the lessee shall have | 25 | | a legal right to claim a refund of that amount
from the lessor. | 26 | | If, however, that amount is not refunded to the lessee for
any |
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| 1 | | reason, the lessor is liable to pay that amount to the | 2 | | Department.
| 3 | | (23) Personal property purchased by a lessor who leases the
| 4 | | property, under
a
lease of
one year or longer executed or in | 5 | | effect at the time
the lessor would otherwise be subject to the | 6 | | tax imposed by this Act,
to a governmental body
that has been | 7 | | issued an active sales tax exemption identification number by | 8 | | the
Department under Section 1g of the Retailers' Occupation | 9 | | Tax Act.
If the
property is leased in a manner that does not | 10 | | qualify for
this exemption
or used in any other non-exempt | 11 | | manner, the lessor shall be liable for the
tax imposed under | 12 | | this Act or the Service Use Tax Act, as the case may
be, based | 13 | | on the fair market value of the property at the time the
| 14 | | non-qualifying use occurs. No lessor shall collect or attempt | 15 | | to collect an
amount (however
designated) that purports to | 16 | | reimburse that lessor for the tax imposed by this
Act or the | 17 | | Service Use Tax Act, as the case may be, if the tax has not been
| 18 | | paid by the lessor. If a lessor improperly collects any such | 19 | | amount from the
lessee, the lessee shall have a legal right to | 20 | | claim a refund of that amount
from the lessor. If, however, | 21 | | that amount is not refunded to the lessee for
any reason, the | 22 | | lessor is liable to pay that amount to the Department.
| 23 | | (24) Beginning with taxable years ending on or after | 24 | | December
31, 1995
and
ending with taxable years ending on or | 25 | | before December 31, 2004,
personal property that is
donated for | 26 | | disaster relief to be used in a State or federally declared
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| 1 | | disaster area in Illinois or bordering Illinois by a | 2 | | manufacturer or retailer
that is registered in this State to a | 3 | | corporation, society, association,
foundation, or institution | 4 | | that has been issued a sales tax exemption
identification | 5 | | number by the Department that assists victims of the disaster
| 6 | | who reside within the declared disaster area.
| 7 | | (25) Beginning with taxable years ending on or after | 8 | | December
31, 1995 and
ending with taxable years ending on or | 9 | | before December 31, 2004, personal
property that is used in the | 10 | | performance of infrastructure repairs in this
State, including | 11 | | but not limited to municipal roads and streets, access roads,
| 12 | | bridges, sidewalks, waste disposal systems, water and sewer | 13 | | line extensions,
water distribution and purification | 14 | | facilities, storm water drainage and
retention facilities, and | 15 | | sewage treatment facilities, resulting from a State
or | 16 | | federally declared disaster in Illinois or bordering Illinois | 17 | | when such
repairs are initiated on facilities located in the | 18 | | declared disaster area
within 6 months after the disaster.
| 19 | | (26) Beginning July 1, 1999, game or game birds purchased | 20 | | at a "game
breeding
and hunting preserve area" as that term is
| 21 | | used in
the Wildlife Code. This paragraph is exempt from the | 22 | | provisions
of
Section 3-90.
| 23 | | (27) A motor vehicle, as that term is defined in Section | 24 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a | 25 | | corporation, limited liability company,
society, association, | 26 | | foundation, or institution that is determined by the
Department |
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| 1 | | to be organized and operated exclusively for educational | 2 | | purposes.
For purposes of this exemption, "a corporation, | 3 | | limited liability company,
society, association, foundation, | 4 | | or institution organized and operated
exclusively for | 5 | | educational purposes" means all tax-supported public schools,
| 6 | | private schools that offer systematic instruction in useful | 7 | | branches of
learning by methods common to public schools and | 8 | | that compare favorably in
their scope and intensity with the | 9 | | course of study presented in tax-supported
schools, and | 10 | | vocational or technical schools or institutes organized and
| 11 | | operated exclusively to provide a course of study of not less | 12 | | than 6 weeks
duration and designed to prepare individuals to | 13 | | follow a trade or to pursue a
manual, technical, mechanical, | 14 | | industrial, business, or commercial
occupation.
| 15 | | (28) Beginning January 1, 2000, personal property, | 16 | | including
food,
purchased through fundraising
events for the | 17 | | benefit of
a public or private elementary or
secondary school, | 18 | | a group of those schools, or one or more school
districts if | 19 | | the events are
sponsored by an entity recognized by the school | 20 | | district that consists
primarily of volunteers and includes
| 21 | | parents and teachers of the school children. This paragraph | 22 | | does not apply
to fundraising
events (i) for the benefit of | 23 | | private home instruction or (ii)
for which the fundraising | 24 | | entity purchases the personal property sold at
the events from | 25 | | another individual or entity that sold the property for the
| 26 | | purpose of resale by the fundraising entity and that
profits |
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| 1 | | from the sale to the
fundraising entity. This paragraph is | 2 | | exempt
from the provisions
of Section 3-90.
| 3 | | (29) Beginning January 1, 2000 and through December 31, | 4 | | 2001, new or
used automatic vending
machines that prepare and | 5 | | serve hot food and beverages, including coffee, soup,
and
other | 6 | | items, and replacement parts for these machines.
Beginning | 7 | | January 1,
2002 and through June 30, 2003, machines and parts | 8 | | for machines used in
commercial, coin-operated amusement and | 9 | | vending business if a use or occupation
tax is paid on the | 10 | | gross receipts derived from the use of the commercial,
| 11 | | coin-operated amusement and vending machines.
This
paragraph
| 12 | | is exempt from the provisions of Section 3-90.
| 13 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 14 | | food for human consumption that is to be consumed off the | 15 | | premises
where it is sold (other than alcoholic beverages, soft | 16 | | drinks, and food that
has been prepared for immediate | 17 | | consumption) and prescription and
nonprescription medicines, | 18 | | drugs, medical appliances, and insulin, urine
testing | 19 | | materials, syringes, and needles used by diabetics, for human | 20 | | use, when
purchased for use by a person receiving medical | 21 | | assistance under Article V of
the Illinois Public Aid Code who | 22 | | resides in a licensed long-term care facility,
as defined in | 23 | | the Nursing Home Care Act, or in a licensed facility as defined | 24 | | in the ID/DD Community Care Act or the Specialized Mental | 25 | | Health Rehabilitation Act of 2013.
| 26 | | (31) Beginning on
the effective date of this amendatory Act |
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| 1 | | of the 92nd General Assembly,
computers and communications | 2 | | equipment
utilized for any hospital purpose and equipment used | 3 | | in the diagnosis,
analysis, or treatment of hospital patients | 4 | | purchased by a lessor who leases
the equipment, under a lease | 5 | | of one year or longer executed or in effect at the
time the | 6 | | lessor would otherwise be subject to the tax imposed by this | 7 | | Act, to a
hospital that has been issued an active tax exemption | 8 | | identification number by
the Department under Section 1g of the | 9 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 10 | | manner that does not qualify for this exemption or is
used in | 11 | | any other nonexempt manner, the lessor shall be liable for the | 12 | | tax
imposed under this Act or the Service Use Tax Act, as the | 13 | | case may be, based on
the fair market value of the property at | 14 | | the time the nonqualifying use
occurs. No lessor shall collect | 15 | | or attempt to collect an amount (however
designated) that | 16 | | purports to reimburse that lessor for the tax imposed by this
| 17 | | Act or the Service Use Tax Act, as the case may be, if the tax | 18 | | has not been
paid by the lessor. If a lessor improperly | 19 | | collects any such amount from the
lessee, the lessee shall have | 20 | | a legal right to claim a refund of that amount
from the lessor. | 21 | | If, however, that amount is not refunded to the lessee for
any | 22 | | reason, the lessor is liable to pay that amount to the | 23 | | Department.
This paragraph is exempt from the provisions of | 24 | | Section 3-90.
| 25 | | (32) Beginning on
the effective date of this amendatory Act | 26 | | of the 92nd General Assembly,
personal property purchased by a |
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| 1 | | lessor who leases the property,
under a lease of one year or | 2 | | longer executed or in effect at the time the
lessor would | 3 | | otherwise be subject to the tax imposed by this Act, to a
| 4 | | governmental body that has been issued an active sales tax | 5 | | exemption
identification number by the Department under | 6 | | Section 1g of the Retailers'
Occupation Tax Act. If the | 7 | | property is leased in a manner that does not
qualify for this | 8 | | exemption or used in any other nonexempt manner, the lessor
| 9 | | shall be liable for the tax imposed under this Act or the | 10 | | Service Use Tax Act,
as the case may be, based on the fair | 11 | | market value of the property at the time
the nonqualifying use | 12 | | occurs. No lessor shall collect or attempt to collect
an amount | 13 | | (however designated) that purports to reimburse that lessor for | 14 | | the
tax imposed by this Act or the Service Use Tax Act, as the | 15 | | case may be, if the
tax has not been paid by the lessor. If a | 16 | | lessor improperly collects any such
amount from the lessee, the | 17 | | lessee shall have a legal right to claim a refund
of that | 18 | | amount from the lessor. If, however, that amount is not | 19 | | refunded to
the lessee for any reason, the lessor is liable to | 20 | | pay that amount to the
Department. This paragraph is exempt | 21 | | from the provisions of Section 3-90.
| 22 | | (33) On and after July 1, 2003 and through June 30, 2004, | 23 | | the use in this State of motor vehicles of
the second division | 24 | | with a gross vehicle weight in excess of 8,000 pounds and
that | 25 | | are subject to the commercial distribution fee imposed under | 26 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July |
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| 1 | | 1, 2004 and through June 30, 2005, the use in this State of | 2 | | motor vehicles of the second division: (i) with a gross vehicle | 3 | | weight rating in excess of 8,000 pounds; (ii) that are subject | 4 | | to the commercial distribution fee imposed under Section | 5 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 6 | | primarily used for commercial purposes. Through June 30, 2005, | 7 | | this exemption applies to repair and
replacement parts added | 8 | | after the initial purchase of such a motor vehicle if
that | 9 | | motor
vehicle is used in a manner that would qualify for the | 10 | | rolling stock exemption
otherwise provided for in this Act. For | 11 | | purposes of this paragraph, the term "used for commercial | 12 | | purposes" means the transportation of persons or property in | 13 | | furtherance of any commercial or industrial enterprise, | 14 | | whether for-hire or not.
| 15 | | (34) Beginning January 1, 2008, tangible personal property | 16 | | used in the construction or maintenance of a community water | 17 | | supply, as defined under Section 3.145 of the Environmental | 18 | | Protection Act, that is operated by a not-for-profit | 19 | | corporation that holds a valid water supply permit issued under | 20 | | Title IV of the Environmental Protection Act. This paragraph is | 21 | | exempt from the provisions of Section 3-90. | 22 | | (35) Beginning January 1, 2010, materials, parts, | 23 | | equipment, components, and furnishings incorporated into or | 24 | | upon an aircraft as part of the modification, refurbishment, | 25 | | completion, replacement, repair, or maintenance of the | 26 | | aircraft. This exemption includes consumable supplies used in |
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| 1 | | the modification, refurbishment, completion, replacement, | 2 | | repair, and maintenance of aircraft, but excludes any | 3 | | materials, parts, equipment, components, and consumable | 4 | | supplies used in the modification, replacement, repair, and | 5 | | maintenance of aircraft engines or power plants, whether such | 6 | | engines or power plants are installed or uninstalled upon any | 7 | | such aircraft. "Consumable supplies" include, but are not | 8 | | limited to, adhesive, tape, sandpaper, general purpose | 9 | | lubricants, cleaning solution, latex gloves, and protective | 10 | | films. This exemption applies only to the use of qualifying | 11 | | tangible personal property by persons who modify, refurbish, | 12 | | complete, repair, replace, or maintain aircraft and who (i) | 13 | | hold an Air Agency Certificate and are empowered to operate an | 14 | | approved repair station by the Federal Aviation | 15 | | Administration, (ii) have a Class IV Rating, and (iii) conduct | 16 | | operations in accordance with Part 145 of the Federal Aviation | 17 | | Regulations. The exemption does not include aircraft operated | 18 | | by a commercial air carrier providing scheduled passenger air | 19 | | service pursuant to authority issued under Part 121 or Part 129 | 20 | | of the Federal Aviation Regulations. The changes made to this | 21 | | paragraph (35) by Public Act 98-534 this amendatory Act of the | 22 | | 98th General Assembly are declarative of existing law. | 23 | | (36) Tangible personal property purchased by a | 24 | | public-facilities corporation, as described in Section | 25 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 26 | | constructing or furnishing a municipal convention hall, but |
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| 1 | | only if the legal title to the municipal convention hall is | 2 | | transferred to the municipality without any further | 3 | | consideration by or on behalf of the municipality at the time | 4 | | of the completion of the municipal convention hall or upon the | 5 | | retirement or redemption of any bonds or other debt instruments | 6 | | issued by the public-facilities corporation in connection with | 7 | | the development of the municipal convention hall. This | 8 | | exemption includes existing public-facilities corporations as | 9 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 10 | | This paragraph is exempt from the provisions of Section 3-90. | 11 | | (37) Beginning on July 1, 2014, qualified tangible personal | 12 | | property used in the construction or operation of a data center | 13 | | that has been granted a Certificate of Exemption by the | 14 | | Department of Commerce and Economic Opportunity, whether that | 15 | | tangible personal property is purchased by the owner of the | 16 | | data center or by a contractor or subcontractor of the owner. | 17 | | The Department of Commerce and Economic Opportunity shall | 18 | | grant a Certificate of Exemption under this item (37) if the | 19 | | owner or operator of the data center makes a capital investment | 20 | | of at least $200,000,000 at the data center within a 5-year | 21 | | period from the date the certificate is issued. | 22 | | For the purposes of this item (37): | 23 | | "Data center" means a building or a series of buildings | 24 | | rehabilitated or constructed to house a group of networked | 25 | | server computers in one physical location or several sites | 26 | | within a single county in order to centralize the storage, |
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| 1 | | management, and dissemination of data and information. | 2 | | "Qualified tangible personal property" means | 3 | | electrical systems and equipment; mechanical systems and | 4 | | equipment; emergency generators; hardware or distributed | 5 | | computers or servers; data storage devices; network | 6 | | connectivity equipment; racks; cabinets; raised floor | 7 | | systems; peripheral components or systems; software; | 8 | | mechanical, electrical, or plumbing systems necessary to | 9 | | operate other items of tangible personal property, | 10 | | including fixtures; and component parts of any of the | 11 | | foregoing, including installation, maintenance, repair, | 12 | | refurbishment, and replacement of qualified tangible | 13 | | personal property. | 14 | | This item (37) is exempt from the provisions of Section | 15 | | 3-90. | 16 | | (Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, | 17 | | eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104, | 18 | | eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13; | 19 | | 98-534, eff. 8-23-13; 98-574, eff. 1-1-14; 98-583, eff. 1-1-14; | 20 | | revised 9-9-13.)
| 21 | | Section 10. The Service Use Tax Act is amended by changing | 22 | | Section 3-5 as follows:
| 23 | | (35 ILCS 110/3-5)
| 24 | | Sec. 3-5. Exemptions. Use of the following tangible |
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| 1 | | personal property
is exempt from the tax imposed by this Act:
| 2 | | (1) Personal property purchased from a corporation, | 3 | | society,
association, foundation, institution, or | 4 | | organization, other than a limited
liability company, that is | 5 | | organized and operated as a not-for-profit service
enterprise | 6 | | for the benefit of persons 65 years of age or older if the | 7 | | personal
property was not purchased by the enterprise for the | 8 | | purpose of resale by the
enterprise.
| 9 | | (2) Personal property purchased by a non-profit Illinois | 10 | | county fair
association for use in conducting, operating, or | 11 | | promoting the county fair.
| 12 | | (3) Personal property purchased by a not-for-profit arts
or | 13 | | cultural
organization that establishes, by proof required by | 14 | | the Department by rule,
that it has received an exemption under | 15 | | Section 501(c)(3) of the Internal
Revenue Code and that is | 16 | | organized and operated primarily for the
presentation
or | 17 | | support of arts or cultural programming, activities, or | 18 | | services. These
organizations include, but are not limited to, | 19 | | music and dramatic arts
organizations such as symphony | 20 | | orchestras and theatrical groups, arts and
cultural service | 21 | | organizations, local arts councils, visual arts organizations,
| 22 | | and media arts organizations.
On and after the effective date | 23 | | of this amendatory Act of the 92nd General
Assembly, however, | 24 | | an entity otherwise eligible for this exemption shall not
make | 25 | | tax-free purchases unless it has an active identification | 26 | | number issued by
the Department.
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| 1 | | (4) Legal tender, currency, medallions, or gold or silver | 2 | | coinage issued
by the State of Illinois, the government of the | 3 | | United States of America,
or the government of any foreign | 4 | | country, and bullion.
| 5 | | (5) Until July 1, 2003 and beginning again on September 1, | 6 | | 2004 through August 30, 2014, graphic arts machinery and | 7 | | equipment, including
repair and
replacement parts, both new and | 8 | | used, and including that manufactured on
special order or | 9 | | purchased for lease, certified by the purchaser to be used
| 10 | | primarily for graphic arts production.
Equipment includes | 11 | | chemicals or
chemicals acting as catalysts but only if
the | 12 | | chemicals or chemicals acting as catalysts effect a direct and | 13 | | immediate
change upon a graphic arts product.
| 14 | | (6) Personal property purchased from a teacher-sponsored | 15 | | student
organization affiliated with an elementary or | 16 | | secondary school located
in Illinois.
| 17 | | (7) Farm machinery and equipment, both new and used, | 18 | | including that
manufactured on special order, certified by the | 19 | | purchaser to be used
primarily for production agriculture or | 20 | | State or federal agricultural
programs, including individual | 21 | | replacement parts for the machinery and
equipment, including | 22 | | machinery and equipment purchased for lease,
and including | 23 | | implements of husbandry defined in Section 1-130 of
the | 24 | | Illinois Vehicle Code, farm machinery and agricultural | 25 | | chemical and
fertilizer spreaders, and nurse wagons required to | 26 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
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| 1 | | but
excluding other motor vehicles required to be registered | 2 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or | 3 | | hoop houses used for propagating, growing, or
overwintering | 4 | | plants shall be considered farm machinery and equipment under
| 5 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 6 | | shall include units sold
separately from a motor vehicle | 7 | | required to be licensed and units sold mounted
on a motor | 8 | | vehicle required to be licensed if the selling price of the | 9 | | tender
is separately stated.
| 10 | | Farm machinery and equipment shall include precision | 11 | | farming equipment
that is
installed or purchased to be | 12 | | installed on farm machinery and equipment
including, but not | 13 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 14 | | or spreaders.
Precision farming equipment includes, but is not | 15 | | limited to,
soil testing sensors, computers, monitors, | 16 | | software, global positioning
and mapping systems, and other | 17 | | such equipment.
| 18 | | Farm machinery and equipment also includes computers, | 19 | | sensors, software, and
related equipment used primarily in the
| 20 | | computer-assisted operation of production agriculture | 21 | | facilities, equipment,
and activities such as, but
not limited | 22 | | to,
the collection, monitoring, and correlation of
animal and | 23 | | crop data for the purpose of
formulating animal diets and | 24 | | agricultural chemicals. This item (7) is exempt
from the | 25 | | provisions of
Section 3-75.
| 26 | | (8) Until June 30, 2013, fuel and petroleum products sold |
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| 1 | | to or used by an air common
carrier, certified by the carrier | 2 | | to be used for consumption, shipment, or
storage in the conduct | 3 | | of its business as an air common carrier, for a
flight destined | 4 | | for or returning from a location or locations
outside the | 5 | | United States without regard to previous or subsequent domestic
| 6 | | stopovers.
| 7 | | Beginning July 1, 2013, fuel and petroleum products sold to | 8 | | or used by an air carrier, certified by the carrier to be used | 9 | | for consumption, shipment, or storage in the conduct of its | 10 | | business as an air common carrier, for a flight that (i) is | 11 | | engaged in foreign trade or is engaged in trade between the | 12 | | United States and any of its possessions and (ii) transports at | 13 | | least one individual or package for hire from the city of | 14 | | origination to the city of final destination on the same | 15 | | aircraft, without regard to a change in the flight number of | 16 | | that aircraft. | 17 | | (9) Proceeds of mandatory service charges separately | 18 | | stated on
customers' bills for the purchase and consumption of | 19 | | food and beverages
acquired as an incident to the purchase of a | 20 | | service from a serviceman, to
the extent that the proceeds of | 21 | | the service charge are in fact
turned over as tips or as a | 22 | | substitute for tips to the employees who
participate directly | 23 | | in preparing, serving, hosting or cleaning up the
food or | 24 | | beverage function with respect to which the service charge is | 25 | | imposed.
| 26 | | (10) Until July 1, 2003, oil field exploration, drilling, |
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| 1 | | and production
equipment, including
(i) rigs and parts of rigs, | 2 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 3 | | tubular goods, including casing and
drill strings, (iii) pumps | 4 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 5 | | individual replacement part for oil field exploration,
| 6 | | drilling, and production equipment, and (vi) machinery and | 7 | | equipment purchased
for lease; but
excluding motor vehicles | 8 | | required to be registered under the Illinois
Vehicle Code.
| 9 | | (11) Proceeds from the sale of photoprocessing machinery | 10 | | and
equipment, including repair and replacement parts, both new | 11 | | and
used, including that manufactured on special order, | 12 | | certified by the
purchaser to be used primarily for | 13 | | photoprocessing, and including
photoprocessing machinery and | 14 | | equipment purchased for lease.
| 15 | | (12) Coal and aggregate exploration, mining, off-highway | 16 | | offhighway hauling,
processing,
maintenance, and reclamation | 17 | | equipment, including
replacement parts and equipment, and | 18 | | including
equipment purchased for lease, but excluding motor | 19 | | vehicles required to be
registered under the Illinois Vehicle | 20 | | Code. The changes made to this Section by Public Act 97-767 | 21 | | apply on and after July 1, 2003, but no claim for credit or | 22 | | refund is allowed on or after August 16, 2013 ( the effective | 23 | | date of Public Act 98-456) this amendatory Act of the 98th | 24 | | General Assembly
for such taxes paid during the period | 25 | | beginning July 1, 2003 and ending on August 16, 2013 ( the | 26 | | effective date of Public Act 98-456) this amendatory Act of the |
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| 1 | | 98th General Assembly .
| 2 | | (13) Semen used for artificial insemination of livestock | 3 | | for direct
agricultural production.
| 4 | | (14) Horses, or interests in horses, registered with and | 5 | | meeting the
requirements of any of the
Arabian Horse Club | 6 | | Registry of America, Appaloosa Horse Club, American Quarter
| 7 | | Horse Association, United States
Trotting Association, or | 8 | | Jockey Club, as appropriate, used for
purposes of breeding or | 9 | | racing for prizes. This item (14) is exempt from the provisions | 10 | | of Section 3-75, and the exemption provided for under this item | 11 | | (14) applies for all periods beginning May 30, 1995, but no | 12 | | claim for credit or refund is allowed on or after the effective | 13 | | date of this amendatory Act of the 95th General Assembly for | 14 | | such taxes paid during the period beginning May 30, 2000 and | 15 | | ending on the effective date of this amendatory Act of the 95th | 16 | | General Assembly.
| 17 | | (15) Computers and communications equipment utilized for | 18 | | any
hospital
purpose
and equipment used in the diagnosis,
| 19 | | analysis, or treatment of hospital patients purchased by a | 20 | | lessor who leases
the
equipment, under a lease of one year or | 21 | | longer executed or in effect at the
time
the lessor would | 22 | | otherwise be subject to the tax imposed by this Act,
to a
| 23 | | hospital
that has been issued an active tax exemption | 24 | | identification number by the
Department under Section 1g of the | 25 | | Retailers' Occupation Tax Act.
If the
equipment is leased in a | 26 | | manner that does not qualify for
this exemption
or is used in |
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| 1 | | any other non-exempt manner,
the lessor shall be liable for the
| 2 | | tax imposed under this Act or the Use Tax Act, as the case may
| 3 | | be, based on the fair market value of the property at the time | 4 | | the
non-qualifying use occurs. No lessor shall collect or | 5 | | attempt to collect an
amount (however
designated) that purports | 6 | | to reimburse that lessor for the tax imposed by this
Act or the | 7 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 8 | | the lessor. If a lessor improperly collects any such amount | 9 | | from the
lessee, the lessee shall have a legal right to claim a | 10 | | refund of that amount
from the lessor. If, however, that amount | 11 | | is not refunded to the lessee for
any reason, the lessor is | 12 | | liable to pay that amount to the Department.
| 13 | | (16) Personal property purchased by a lessor who leases the
| 14 | | property, under
a
lease of one year or longer executed or in | 15 | | effect at the time
the lessor would otherwise be subject to the | 16 | | tax imposed by this Act,
to a governmental body
that has been | 17 | | issued an active tax exemption identification number by the
| 18 | | Department under Section 1g of the Retailers' Occupation Tax | 19 | | Act.
If the
property is leased in a manner that does not | 20 | | qualify for
this exemption
or is used in any other non-exempt | 21 | | manner,
the lessor shall be liable for the
tax imposed under | 22 | | this Act or the Use Tax Act, as the case may
be, based on the | 23 | | fair market value of the property at the time the
| 24 | | non-qualifying use occurs. No lessor shall collect or attempt | 25 | | to collect an
amount (however
designated) that purports to | 26 | | reimburse that lessor for the tax imposed by this
Act or the |
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| 1 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 2 | | the lessor. If a lessor improperly collects any such amount | 3 | | from the
lessee, the lessee shall have a legal right to claim a | 4 | | refund of that amount
from the lessor. If, however, that amount | 5 | | is not refunded to the lessee for
any reason, the lessor is | 6 | | liable to pay that amount to the Department.
| 7 | | (17) Beginning with taxable years ending on or after | 8 | | December
31,
1995
and
ending with taxable years ending on or | 9 | | before December 31, 2004,
personal property that is
donated for | 10 | | disaster relief to be used in a State or federally declared
| 11 | | disaster area in Illinois or bordering Illinois by a | 12 | | manufacturer or retailer
that is registered in this State to a | 13 | | corporation, society, association,
foundation, or institution | 14 | | that has been issued a sales tax exemption
identification | 15 | | number by the Department that assists victims of the disaster
| 16 | | who reside within the declared disaster area.
| 17 | | (18) Beginning with taxable years ending on or after | 18 | | December
31, 1995 and
ending with taxable years ending on or | 19 | | before December 31, 2004, personal
property that is used in the | 20 | | performance of infrastructure repairs in this
State, including | 21 | | but not limited to municipal roads and streets, access roads,
| 22 | | bridges, sidewalks, waste disposal systems, water and sewer | 23 | | line extensions,
water distribution and purification | 24 | | facilities, storm water drainage and
retention facilities, and | 25 | | sewage treatment facilities, resulting from a State
or | 26 | | federally declared disaster in Illinois or bordering Illinois |
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| 1 | | when such
repairs are initiated on facilities located in the | 2 | | declared disaster area
within 6 months after the disaster.
| 3 | | (19) Beginning July 1, 1999, game or game birds purchased | 4 | | at a "game
breeding
and hunting preserve area" as that term is
| 5 | | used in
the Wildlife Code. This paragraph is exempt from the | 6 | | provisions
of
Section 3-75.
| 7 | | (20) A motor vehicle, as that term is defined in Section | 8 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 9 | | corporation, limited liability
company, society, association, | 10 | | foundation, or institution that is determined by
the Department | 11 | | to be organized and operated exclusively for educational
| 12 | | purposes. For purposes of this exemption, "a corporation, | 13 | | limited liability
company, society, association, foundation, | 14 | | or institution organized and
operated
exclusively for | 15 | | educational purposes" means all tax-supported public schools,
| 16 | | private schools that offer systematic instruction in useful | 17 | | branches of
learning by methods common to public schools and | 18 | | that compare favorably in
their scope and intensity with the | 19 | | course of study presented in tax-supported
schools, and | 20 | | vocational or technical schools or institutes organized and
| 21 | | operated exclusively to provide a course of study of not less | 22 | | than 6 weeks
duration and designed to prepare individuals to | 23 | | follow a trade or to pursue a
manual, technical, mechanical, | 24 | | industrial, business, or commercial
occupation.
| 25 | | (21) Beginning January 1, 2000, personal property, | 26 | | including
food,
purchased through fundraising
events for the |
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| 1 | | benefit of
a public or private elementary or
secondary school, | 2 | | a group of those schools, or one or more school
districts if | 3 | | the events are
sponsored by an entity recognized by the school | 4 | | district that consists
primarily of volunteers and includes
| 5 | | parents and teachers of the school children. This paragraph | 6 | | does not apply
to fundraising
events (i) for the benefit of | 7 | | private home instruction or (ii)
for which the fundraising | 8 | | entity purchases the personal property sold at
the events from | 9 | | another individual or entity that sold the property for the
| 10 | | purpose of resale by the fundraising entity and that
profits | 11 | | from the sale to the
fundraising entity. This paragraph is | 12 | | exempt
from the provisions
of Section 3-75.
| 13 | | (22) Beginning January 1, 2000
and through December 31, | 14 | | 2001, new or used automatic vending
machines that prepare and | 15 | | serve hot food and beverages, including coffee, soup,
and
other | 16 | | items, and replacement parts for these machines.
Beginning | 17 | | January 1,
2002 and through June 30, 2003, machines and parts | 18 | | for machines used in
commercial, coin-operated
amusement
and | 19 | | vending business if a use or occupation tax is paid on the | 20 | | gross receipts
derived from
the use of the commercial, | 21 | | coin-operated amusement and vending machines.
This
paragraph
| 22 | | is exempt from the provisions of Section 3-75.
| 23 | | (23) Beginning August 23, 2001 and through June 30, 2016, | 24 | | food for human consumption that is to be consumed off the
| 25 | | premises
where it is sold (other than alcoholic beverages, soft | 26 | | drinks, and food that
has been prepared for immediate |
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| 1 | | consumption) and prescription and
nonprescription medicines, | 2 | | drugs, medical appliances, and insulin, urine
testing | 3 | | materials, syringes, and needles used by diabetics, for human | 4 | | use, when
purchased for use by a person receiving medical | 5 | | assistance under Article V of
the Illinois Public Aid Code who | 6 | | resides in a licensed long-term care facility,
as defined in | 7 | | the Nursing Home Care Act, or in a licensed facility as defined | 8 | | in the ID/DD Community Care Act or the Specialized Mental | 9 | | Health Rehabilitation Act of 2013.
| 10 | | (24) Beginning on the effective date of this amendatory Act | 11 | | of the 92nd
General Assembly, computers and communications | 12 | | equipment
utilized for any hospital purpose and equipment used | 13 | | in the diagnosis,
analysis, or treatment of hospital patients | 14 | | purchased by a lessor who leases
the equipment, under a lease | 15 | | of one year or longer executed or in effect at the
time the | 16 | | lessor would otherwise be subject to the tax imposed by this | 17 | | Act, to a
hospital that has been issued an active tax exemption | 18 | | identification number by
the Department under Section 1g of the | 19 | | Retailers' Occupation Tax Act. If the
equipment is leased in a | 20 | | manner that does not qualify for this exemption or is
used in | 21 | | any other nonexempt manner, the lessor shall be liable for the
| 22 | | tax imposed under this Act or the Use Tax Act, as the case may | 23 | | be, based on the
fair market value of the property at the time | 24 | | the nonqualifying use occurs.
No lessor shall collect or | 25 | | attempt to collect an amount (however
designated) that purports | 26 | | to reimburse that lessor for the tax imposed by this
Act or the |
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| 1 | | Use Tax Act, as the case may be, if the tax has not been
paid by | 2 | | the lessor. If a lessor improperly collects any such amount | 3 | | from the
lessee, the lessee shall have a legal right to claim a | 4 | | refund of that amount
from the lessor. If, however, that amount | 5 | | is not refunded to the lessee for
any reason, the lessor is | 6 | | liable to pay that amount to the Department.
This paragraph is | 7 | | exempt from the provisions of Section 3-75.
| 8 | | (25) Beginning
on the effective date of this amendatory Act | 9 | | of the 92nd General Assembly,
personal property purchased by a | 10 | | lessor
who leases the property, under a lease of one year or | 11 | | longer executed or in
effect at the time the lessor would | 12 | | otherwise be subject to the tax imposed by
this Act, to a | 13 | | governmental body that has been issued an active tax exemption
| 14 | | identification number by the Department under Section 1g of the | 15 | | Retailers'
Occupation Tax Act. If the property is leased in a | 16 | | manner that does not
qualify for this exemption or is used in | 17 | | any other nonexempt manner, the
lessor shall be liable for the | 18 | | tax imposed under this Act or the Use Tax Act,
as the case may | 19 | | be, based on the fair market value of the property at the time
| 20 | | the nonqualifying use occurs. No lessor shall collect or | 21 | | attempt to collect
an amount (however designated) that purports | 22 | | to reimburse that lessor for the
tax imposed by this Act or the | 23 | | Use Tax Act, as the case may be, if the tax has
not been paid by | 24 | | the lessor. If a lessor improperly collects any such amount
| 25 | | from the lessee, the lessee shall have a legal right to claim a | 26 | | refund of that
amount from the lessor. If, however, that amount |
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| 1 | | is not refunded to the lessee
for any reason, the lessor is | 2 | | liable to pay that amount to the Department.
This paragraph is | 3 | | exempt from the provisions of Section 3-75.
| 4 | | (26) Beginning January 1, 2008, tangible personal property | 5 | | used in the construction or maintenance of a community water | 6 | | supply, as defined under Section 3.145 of the Environmental | 7 | | Protection Act, that is operated by a not-for-profit | 8 | | corporation that holds a valid water supply permit issued under | 9 | | Title IV of the Environmental Protection Act. This paragraph is | 10 | | exempt from the provisions of Section 3-75.
| 11 | | (27) Beginning January 1, 2010, materials, parts, | 12 | | equipment, components, and furnishings incorporated into or | 13 | | upon an aircraft as part of the modification, refurbishment, | 14 | | completion, replacement, repair, or maintenance of the | 15 | | aircraft. This exemption includes consumable supplies used in | 16 | | the modification, refurbishment, completion, replacement, | 17 | | repair, and maintenance of aircraft, but excludes any | 18 | | materials, parts, equipment, components, and consumable | 19 | | supplies used in the modification, replacement, repair, and | 20 | | maintenance of aircraft engines or power plants, whether such | 21 | | engines or power plants are installed or uninstalled upon any | 22 | | such aircraft. "Consumable supplies" include, but are not | 23 | | limited to, adhesive, tape, sandpaper, general purpose | 24 | | lubricants, cleaning solution, latex gloves, and protective | 25 | | films. This exemption applies only to the use of qualifying | 26 | | tangible personal property transferred incident to the |
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| 1 | | modification, refurbishment, completion, replacement, repair, | 2 | | or maintenance of aircraft by persons who (i) hold an Air | 3 | | Agency Certificate and are empowered to operate an approved | 4 | | repair station by the Federal Aviation Administration, (ii) | 5 | | have a Class IV Rating, and (iii) conduct operations in | 6 | | accordance with Part 145 of the Federal Aviation Regulations. | 7 | | The exemption does not include aircraft operated by a | 8 | | commercial air carrier providing scheduled passenger air | 9 | | service pursuant to authority issued under Part 121 or Part 129 | 10 | | of the Federal Aviation Regulations. The changes made to this | 11 | | paragraph (27) by Public Act 98-534 this amendatory Act of the | 12 | | 98th General Assembly are declarative of existing law. | 13 | | (28) Tangible personal property purchased by a | 14 | | public-facilities corporation, as described in Section | 15 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 16 | | constructing or furnishing a municipal convention hall, but | 17 | | only if the legal title to the municipal convention hall is | 18 | | transferred to the municipality without any further | 19 | | consideration by or on behalf of the municipality at the time | 20 | | of the completion of the municipal convention hall or upon the | 21 | | retirement or redemption of any bonds or other debt instruments | 22 | | issued by the public-facilities corporation in connection with | 23 | | the development of the municipal convention hall. This | 24 | | exemption includes existing public-facilities corporations as | 25 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 26 | | This paragraph is exempt from the provisions of Section 3-75. |
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| 1 | | (29) Beginning on July 1, 2014, qualified tangible personal | 2 | | property used in the construction or operation of a data center | 3 | | that has been granted a Certificate of Exemption by the | 4 | | Department of Commerce and Economic Opportunity, whether that | 5 | | tangible personal property is purchased by the owner of the | 6 | | data center or by a contractor or subcontractor of the owner. | 7 | | The Department of Commerce and Economic Opportunity shall | 8 | | grant a Certificate of Exemption under this item (29) if the | 9 | | owner or operator of the data center makes a capital investment | 10 | | of at least $200,000,000 at the data center within a 5-year | 11 | | period from the date the certificate is issued. | 12 | | For the purposes of this item (29): | 13 | | "Data center" means a building or a series of buildings | 14 | | rehabilitated or constructed to house a group of networked | 15 | | server computers in one physical location or several sites | 16 | | within a single county in order to centralize the storage, | 17 | | management, and dissemination of data and information. | 18 | | "Qualified tangible personal property" means | 19 | | electrical systems and equipment; mechanical systems and | 20 | | equipment; emergency generators; hardware or distributed | 21 | | computers or servers; data storage devices; network | 22 | | connectivity equipment; racks; cabinets; raised floor | 23 | | systems; peripheral components or systems; software; | 24 | | mechanical, electrical, or plumbing systems necessary to | 25 | | operate other items of tangible personal property, | 26 | | including fixtures; and component parts of any of the |
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| 1 | | foregoing, including installation, maintenance, repair, | 2 | | refurbishment, and replacement of qualified tangible | 3 | | personal property. | 4 | | This item (29) is exempt from the provisions of Section | 5 | | 3-75. | 6 | | (Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, | 7 | | eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104, | 8 | | eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13; | 9 | | 98-534, eff. 8-23-13; revised 9-9-13.)
| 10 | | Section 15. The Service Occupation Tax Act is amended by | 11 | | changing Section 3-5 as follows:
| 12 | | (35 ILCS 115/3-5)
| 13 | | Sec. 3-5. Exemptions. The following tangible personal | 14 | | property is
exempt from the tax imposed by this Act:
| 15 | | (1) Personal property sold by a corporation, society, | 16 | | association,
foundation, institution, or organization, other | 17 | | than a limited liability
company, that is organized and | 18 | | operated as a not-for-profit service enterprise
for the benefit | 19 | | of persons 65 years of age or older if the personal property
| 20 | | was not purchased by the enterprise for the purpose of resale | 21 | | by the
enterprise.
| 22 | | (2) Personal property purchased by a not-for-profit | 23 | | Illinois county fair
association for use in conducting, | 24 | | operating, or promoting the county fair.
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| 1 | | (3) Personal property purchased by any not-for-profit
arts | 2 | | or cultural organization that establishes, by proof required by | 3 | | the
Department by
rule, that it has received an exemption under | 4 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 5 | | organized and operated primarily for the
presentation
or | 6 | | support of arts or cultural programming, activities, or | 7 | | services. These
organizations include, but are not limited to, | 8 | | music and dramatic arts
organizations such as symphony | 9 | | orchestras and theatrical groups, arts and
cultural service | 10 | | organizations, local arts councils, visual arts organizations,
| 11 | | and media arts organizations.
On and after the effective date | 12 | | of this amendatory Act of the 92nd General
Assembly, however, | 13 | | an entity otherwise eligible for this exemption shall not
make | 14 | | tax-free purchases unless it has an active identification | 15 | | number issued by
the Department.
| 16 | | (4) Legal tender, currency, medallions, or gold or silver | 17 | | coinage
issued by the State of Illinois, the government of the | 18 | | United States of
America, or the government of any foreign | 19 | | country, and bullion.
| 20 | | (5) Until July 1, 2003 and beginning again on September 1, | 21 | | 2004 through August 30, 2014, graphic arts machinery and | 22 | | equipment, including
repair and
replacement parts, both new and | 23 | | used, and including that manufactured on
special order or | 24 | | purchased for lease, certified by the purchaser to be used
| 25 | | primarily for graphic arts production.
Equipment includes | 26 | | chemicals or chemicals acting as catalysts but only if
the
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| 1 | | chemicals or chemicals acting as catalysts effect a direct and | 2 | | immediate change
upon a graphic arts product.
| 3 | | (6) Personal property sold by a teacher-sponsored student | 4 | | organization
affiliated with an elementary or secondary school | 5 | | located in Illinois.
| 6 | | (7) Farm machinery and equipment, both new and used, | 7 | | including that
manufactured on special order, certified by the | 8 | | purchaser to be used
primarily for production agriculture or | 9 | | State or federal agricultural
programs, including individual | 10 | | replacement parts for the machinery and
equipment, including | 11 | | machinery and equipment purchased for lease,
and including | 12 | | implements of husbandry defined in Section 1-130 of
the | 13 | | Illinois Vehicle Code, farm machinery and agricultural | 14 | | chemical and
fertilizer spreaders, and nurse wagons required to | 15 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 16 | | but
excluding other motor vehicles required to be registered | 17 | | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 18 | | hoop houses used for propagating, growing, or
overwintering | 19 | | plants shall be considered farm machinery and equipment under
| 20 | | this item (7).
Agricultural chemical tender tanks and dry boxes | 21 | | shall include units sold
separately from a motor vehicle | 22 | | required to be licensed and units sold mounted
on a motor | 23 | | vehicle required to be licensed if the selling price of the | 24 | | tender
is separately stated.
| 25 | | Farm machinery and equipment shall include precision | 26 | | farming equipment
that is
installed or purchased to be |
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| 1 | | installed on farm machinery and equipment
including, but not | 2 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 3 | | or spreaders.
Precision farming equipment includes, but is not | 4 | | limited to,
soil testing sensors, computers, monitors, | 5 | | software, global positioning
and mapping systems, and other | 6 | | such equipment.
| 7 | | Farm machinery and equipment also includes computers, | 8 | | sensors, software, and
related equipment used primarily in the
| 9 | | computer-assisted operation of production agriculture | 10 | | facilities, equipment,
and activities such as, but
not limited | 11 | | to,
the collection, monitoring, and correlation of
animal and | 12 | | crop data for the purpose of
formulating animal diets and | 13 | | agricultural chemicals. This item (7) is exempt
from the | 14 | | provisions of
Section 3-55.
| 15 | | (8) Until June 30, 2013, fuel and petroleum products sold | 16 | | to or used by an air common
carrier, certified by the carrier | 17 | | to be used for consumption, shipment,
or storage in the conduct | 18 | | of its business as an air common carrier, for
a flight destined | 19 | | for or returning from a location or locations
outside the | 20 | | United States without regard to previous or subsequent domestic
| 21 | | stopovers.
| 22 | | Beginning July 1, 2013, fuel and petroleum products sold to | 23 | | or used by an air carrier, certified by the carrier to be used | 24 | | for consumption, shipment, or storage in the conduct of its | 25 | | business as an air common carrier, for a flight that (i) is | 26 | | engaged in foreign trade or is engaged in trade between the |
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| 1 | | United States and any of its possessions and (ii) transports at | 2 | | least one individual or package for hire from the city of | 3 | | origination to the city of final destination on the same | 4 | | aircraft, without regard to a change in the flight number of | 5 | | that aircraft. | 6 | | (9) Proceeds of mandatory service charges separately
| 7 | | stated on customers' bills for the purchase and consumption of | 8 | | food and
beverages, to the extent that the proceeds of the | 9 | | service charge are in fact
turned over as tips or as a | 10 | | substitute for tips to the employees who
participate directly | 11 | | in preparing, serving, hosting or cleaning up the
food or | 12 | | beverage function with respect to which the service charge is | 13 | | imposed.
| 14 | | (10) Until July 1, 2003, oil field exploration, drilling, | 15 | | and production
equipment,
including (i) rigs and parts of rigs, | 16 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 17 | | tubular goods, including casing and
drill strings, (iii) pumps | 18 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 19 | | individual replacement part for oil field exploration,
| 20 | | drilling, and production equipment, and (vi) machinery and | 21 | | equipment purchased
for lease; but
excluding motor vehicles | 22 | | required to be registered under the Illinois
Vehicle Code.
| 23 | | (11) Photoprocessing machinery and equipment, including | 24 | | repair and
replacement parts, both new and used, including that | 25 | | manufactured on
special order, certified by the purchaser to be | 26 | | used primarily for
photoprocessing, and including |
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| 1 | | photoprocessing machinery and equipment
purchased for lease.
| 2 | | (12) Coal and aggregate exploration, mining, off-highway | 3 | | offhighway hauling,
processing,
maintenance, and reclamation | 4 | | equipment, including
replacement parts and equipment, and | 5 | | including
equipment
purchased for lease, but excluding motor | 6 | | vehicles required to be registered
under the Illinois Vehicle | 7 | | Code. The changes made to this Section by Public Act 97-767 | 8 | | apply on and after July 1, 2003, but no claim for credit or | 9 | | refund is allowed on or after August 16, 2013 ( the effective | 10 | | date of Public Act 98-456) this amendatory Act of the 98th | 11 | | General Assembly
for such taxes paid during the period | 12 | | beginning July 1, 2003 and ending on August 16, 2013 ( the | 13 | | effective date of Public Act 98-456) this amendatory Act of the | 14 | | 98th General Assembly .
| 15 | | (13) Beginning January 1, 1992 and through June 30, 2016, | 16 | | food for human consumption that is to be consumed off the | 17 | | premises
where it is sold (other than alcoholic beverages, soft | 18 | | drinks and food that
has been prepared for immediate | 19 | | consumption) and prescription and
non-prescription medicines, | 20 | | drugs, medical appliances, and insulin, urine
testing | 21 | | materials, syringes, and needles used by diabetics, for human | 22 | | use,
when purchased for use by a person receiving medical | 23 | | assistance under
Article V of the Illinois Public Aid Code who | 24 | | resides in a licensed
long-term care facility, as defined in | 25 | | the Nursing Home Care Act, or in a licensed facility as defined | 26 | | in the ID/DD Community Care Act or the Specialized Mental |
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| 1 | | Health Rehabilitation Act of 2013.
| 2 | | (14) Semen used for artificial insemination of livestock | 3 | | for direct
agricultural production.
| 4 | | (15) Horses, or interests in horses, registered with and | 5 | | meeting the
requirements of any of the
Arabian Horse Club | 6 | | Registry of America, Appaloosa Horse Club, American Quarter
| 7 | | Horse Association, United States
Trotting Association, or | 8 | | Jockey Club, as appropriate, used for
purposes of breeding or | 9 | | racing for prizes. This item (15) is exempt from the provisions | 10 | | of Section 3-55, and the exemption provided for under this item | 11 | | (15) applies for all periods beginning May 30, 1995, but no | 12 | | claim for credit or refund is allowed on or after January 1, | 13 | | 2008 (the effective date of Public Act 95-88)
for such taxes | 14 | | paid during the period beginning May 30, 2000 and ending on | 15 | | January 1, 2008 (the effective date of Public Act 95-88).
| 16 | | (16) Computers and communications equipment utilized for | 17 | | any
hospital
purpose
and equipment used in the diagnosis,
| 18 | | analysis, or treatment of hospital patients sold to a lessor | 19 | | who leases the
equipment, under a lease of one year or longer | 20 | | executed or in effect at the
time of the purchase, to a
| 21 | | hospital
that has been issued an active tax exemption | 22 | | identification number by the
Department under Section 1g of the | 23 | | Retailers' Occupation Tax Act.
| 24 | | (17) Personal property sold to a lessor who leases the
| 25 | | property, under a
lease of one year or longer executed or in | 26 | | effect at the time of the purchase,
to a governmental body
that |
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| 1 | | has been issued an active tax exemption identification number | 2 | | by the
Department under Section 1g of the Retailers' Occupation | 3 | | Tax Act.
| 4 | | (18) Beginning with taxable years ending on or after | 5 | | December
31, 1995
and
ending with taxable years ending on or | 6 | | before December 31, 2004,
personal property that is
donated for | 7 | | disaster relief to be used in a State or federally declared
| 8 | | disaster area in Illinois or bordering Illinois by a | 9 | | manufacturer or retailer
that is registered in this State to a | 10 | | corporation, society, association,
foundation, or institution | 11 | | that has been issued a sales tax exemption
identification | 12 | | number by the Department that assists victims of the disaster
| 13 | | who reside within the declared disaster area.
| 14 | | (19) Beginning with taxable years ending on or after | 15 | | December
31, 1995 and
ending with taxable years ending on or | 16 | | before December 31, 2004, personal
property that is used in the | 17 | | performance of infrastructure repairs in this
State, including | 18 | | but not limited to municipal roads and streets, access roads,
| 19 | | bridges, sidewalks, waste disposal systems, water and sewer | 20 | | line extensions,
water distribution and purification | 21 | | facilities, storm water drainage and
retention facilities, and | 22 | | sewage treatment facilities, resulting from a State
or | 23 | | federally declared disaster in Illinois or bordering Illinois | 24 | | when such
repairs are initiated on facilities located in the | 25 | | declared disaster area
within 6 months after the disaster.
| 26 | | (20) Beginning July 1, 1999, game or game birds sold at a |
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| 1 | | "game breeding
and
hunting preserve area" as that term is used
| 2 | | in the
Wildlife Code. This paragraph is exempt from the | 3 | | provisions
of
Section 3-55.
| 4 | | (21) A motor vehicle, as that term is defined in Section | 5 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 6 | | corporation, limited liability
company, society, association, | 7 | | foundation, or institution that is determined by
the Department | 8 | | to be organized and operated exclusively for educational
| 9 | | purposes. For purposes of this exemption, "a corporation, | 10 | | limited liability
company, society, association, foundation, | 11 | | or institution organized and
operated
exclusively for | 12 | | educational purposes" means all tax-supported public schools,
| 13 | | private schools that offer systematic instruction in useful | 14 | | branches of
learning by methods common to public schools and | 15 | | that compare favorably in
their scope and intensity with the | 16 | | course of study presented in tax-supported
schools, and | 17 | | vocational or technical schools or institutes organized and
| 18 | | operated exclusively to provide a course of study of not less | 19 | | than 6 weeks
duration and designed to prepare individuals to | 20 | | follow a trade or to pursue a
manual, technical, mechanical, | 21 | | industrial, business, or commercial
occupation.
| 22 | | (22) Beginning January 1, 2000, personal property, | 23 | | including
food,
purchased through fundraising
events for the | 24 | | benefit of
a public or private elementary or
secondary school, | 25 | | a group of those schools, or one or more school
districts if | 26 | | the events are
sponsored by an entity recognized by the school |
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| 1 | | district that consists
primarily of volunteers and includes
| 2 | | parents and teachers of the school children. This paragraph | 3 | | does not apply
to fundraising
events (i) for the benefit of | 4 | | private home instruction or (ii)
for which the fundraising | 5 | | entity purchases the personal property sold at
the events from | 6 | | another individual or entity that sold the property for the
| 7 | | purpose of resale by the fundraising entity and that
profits | 8 | | from the sale to the
fundraising entity. This paragraph is | 9 | | exempt
from the provisions
of Section 3-55.
| 10 | | (23) Beginning January 1, 2000
and through December 31, | 11 | | 2001, new or used automatic vending
machines that prepare and | 12 | | serve hot food and beverages, including coffee, soup,
and
other | 13 | | items, and replacement parts for these machines.
Beginning | 14 | | January 1,
2002 and through June 30, 2003, machines and parts | 15 | | for
machines used in commercial, coin-operated amusement
and | 16 | | vending business if a use or occupation tax is paid on the | 17 | | gross receipts
derived from
the use of the commercial, | 18 | | coin-operated amusement and vending machines.
This paragraph | 19 | | is exempt from the provisions of Section 3-55.
| 20 | | (24) Beginning
on the effective date of this amendatory Act | 21 | | of the 92nd General Assembly,
computers and communications | 22 | | equipment
utilized for any hospital purpose and equipment used | 23 | | in the diagnosis,
analysis, or treatment of hospital patients | 24 | | sold to a lessor who leases the
equipment, under a lease of one | 25 | | year or longer executed or in effect at the
time of the | 26 | | purchase, to a hospital that has been issued an active tax
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| 1 | | exemption identification number by the Department under | 2 | | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 3 | | is exempt from the provisions of
Section 3-55.
| 4 | | (25) Beginning
on the effective date of this amendatory Act | 5 | | of the 92nd General Assembly,
personal property sold to a | 6 | | lessor who
leases the property, under a lease of one year or | 7 | | longer executed or in effect
at the time of the purchase, to a | 8 | | governmental body that has been issued an
active tax exemption | 9 | | identification number by the Department under Section 1g
of the | 10 | | Retailers' Occupation Tax Act. This paragraph is exempt from | 11 | | the
provisions of Section 3-55.
| 12 | | (26) Beginning on January 1, 2002 and through June 30, | 13 | | 2016, tangible personal property
purchased
from an Illinois | 14 | | retailer by a taxpayer engaged in centralized purchasing
| 15 | | activities in Illinois who will, upon receipt of the property | 16 | | in Illinois,
temporarily store the property in Illinois (i) for | 17 | | the purpose of subsequently
transporting it outside this State | 18 | | for use or consumption thereafter solely
outside this State or | 19 | | (ii) for the purpose of being processed, fabricated, or
| 20 | | manufactured into, attached to, or incorporated into other | 21 | | tangible personal
property to be transported outside this State | 22 | | and thereafter used or consumed
solely outside this State. The | 23 | | Director of Revenue shall, pursuant to rules
adopted in | 24 | | accordance with the Illinois Administrative Procedure Act, | 25 | | issue a
permit to any taxpayer in good standing with the | 26 | | Department who is eligible for
the exemption under this |
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| 1 | | paragraph (26). The permit issued under
this paragraph (26) | 2 | | shall authorize the holder, to the extent and
in the manner | 3 | | specified in the rules adopted under this Act, to purchase
| 4 | | tangible personal property from a retailer exempt from the | 5 | | taxes imposed by
this Act. Taxpayers shall maintain all | 6 | | necessary books and records to
substantiate the use and | 7 | | consumption of all such tangible personal property
outside of | 8 | | the State of Illinois.
| 9 | | (27) Beginning January 1, 2008, tangible personal property | 10 | | used in the construction or maintenance of a community water | 11 | | supply, as defined under Section 3.145 of the Environmental | 12 | | Protection Act, that is operated by a not-for-profit | 13 | | corporation that holds a valid water supply permit issued under | 14 | | Title IV of the Environmental Protection Act. This paragraph is | 15 | | exempt from the provisions of Section 3-55.
| 16 | | (28) Tangible personal property sold to a | 17 | | public-facilities corporation, as described in Section | 18 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 19 | | constructing or furnishing a municipal convention hall, but | 20 | | only if the legal title to the municipal convention hall is | 21 | | transferred to the municipality without any further | 22 | | consideration by or on behalf of the municipality at the time | 23 | | of the completion of the municipal convention hall or upon the | 24 | | retirement or redemption of any bonds or other debt instruments | 25 | | issued by the public-facilities corporation in connection with | 26 | | the development of the municipal convention hall. This |
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| 1 | | exemption includes existing public-facilities corporations as | 2 | | provided in Section 11-65-25 of the Illinois Municipal Code. | 3 | | This paragraph is exempt from the provisions of Section 3-55. | 4 | | (29) Beginning January 1, 2010, materials, parts, | 5 | | equipment, components, and furnishings incorporated into or | 6 | | upon an aircraft as part of the modification, refurbishment, | 7 | | completion, replacement, repair, or maintenance of the | 8 | | aircraft. This exemption includes consumable supplies used in | 9 | | the modification, refurbishment, completion, replacement, | 10 | | repair, and maintenance of aircraft, but excludes any | 11 | | materials, parts, equipment, components, and consumable | 12 | | supplies used in the modification, replacement, repair, and | 13 | | maintenance of aircraft engines or power plants, whether such | 14 | | engines or power plants are installed or uninstalled upon any | 15 | | such aircraft. "Consumable supplies" include, but are not | 16 | | limited to, adhesive, tape, sandpaper, general purpose | 17 | | lubricants, cleaning solution, latex gloves, and protective | 18 | | films. This exemption applies only to the transfer of | 19 | | qualifying tangible personal property incident to the | 20 | | modification, refurbishment, completion, replacement, repair, | 21 | | or maintenance of an aircraft by persons who (i) hold an Air | 22 | | Agency Certificate and are empowered to operate an approved | 23 | | repair station by the Federal Aviation Administration, (ii) | 24 | | have a Class IV Rating, and (iii) conduct operations in | 25 | | accordance with Part 145 of the Federal Aviation Regulations. | 26 | | The exemption does not include aircraft operated by a |
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| 1 | | commercial air carrier providing scheduled passenger air | 2 | | service pursuant to authority issued under Part 121 or Part 129 | 3 | | of the Federal Aviation Regulations. The changes made to this | 4 | | paragraph (29) by Public Act 98-534 this amendatory Act of the | 5 | | 98th General Assembly are declarative of existing law. | 6 | | (30) Beginning on July 1, 2014, qualified tangible personal | 7 | | property used in the construction or operation of a data center | 8 | | that has been granted a Certificate of Exemption by the | 9 | | Department of Commerce and Economic Opportunity, whether that | 10 | | tangible personal property is purchased by the owner of the | 11 | | data center or by a contractor or subcontractor of the owner. | 12 | | The Department of Commerce and Economic Opportunity shall | 13 | | grant a Certificate of Exemption under this item (30) if the | 14 | | owner or operator of the data center makes a capital investment | 15 | | of at least $200,000,000 at the data center within a 5-year | 16 | | period from the date the certificate is issued. | 17 | | For the purposes of this item (30): | 18 | | "Data center" means a building or a series of buildings | 19 | | rehabilitated or constructed to house a group of networked | 20 | | server computers in one physical location or several sites | 21 | | within a single county in order to centralize the storage, | 22 | | management, and dissemination of data and information. | 23 | | "Qualified tangible personal property" means | 24 | | electrical systems and equipment; mechanical systems and | 25 | | equipment; emergency generators; hardware or distributed | 26 | | computers or servers; data storage devices; network |
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| 1 | | connectivity equipment; racks; cabinets; raised floor | 2 | | systems; peripheral components or systems; software; | 3 | | mechanical, electrical, or plumbing systems necessary to | 4 | | operate other items of tangible personal property, | 5 | | including fixtures; and component parts of any of the | 6 | | foregoing, including installation, maintenance, repair, | 7 | | refurbishment, and replacement of qualified tangible | 8 | | personal property. | 9 | | This item (30) is exempt from the provisions of Section | 10 | | 3-55. | 11 | | (Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, | 12 | | eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, | 13 | | eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | 14 | | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; revised 9-9-13.)
| 15 | | Section 20. The Retailers' Occupation Tax Act is amended by | 16 | | changing Section 2-5 as follows:
| 17 | | (35 ILCS 120/2-5)
| 18 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 19 | | sale of
the following tangible personal property are exempt | 20 | | from the tax imposed
by this Act:
| 21 | | (1) Farm chemicals.
| 22 | | (2) Farm machinery and equipment, both new and used, | 23 | | including that
manufactured on special order, certified by the | 24 | | purchaser to be used
primarily for production agriculture or |
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| 1 | | State or federal agricultural
programs, including individual | 2 | | replacement parts for the machinery and
equipment, including | 3 | | machinery and equipment purchased for lease,
and including | 4 | | implements of husbandry defined in Section 1-130 of
the | 5 | | Illinois Vehicle Code, farm machinery and agricultural | 6 | | chemical and
fertilizer spreaders, and nurse wagons required to | 7 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
| 8 | | but
excluding other motor vehicles required to be registered | 9 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or | 10 | | hoop houses used for propagating, growing, or
overwintering | 11 | | plants shall be considered farm machinery and equipment under
| 12 | | this item (2).
Agricultural chemical tender tanks and dry boxes | 13 | | shall include units sold
separately from a motor vehicle | 14 | | required to be licensed and units sold mounted
on a motor | 15 | | vehicle required to be licensed, if the selling price of the | 16 | | tender
is separately stated.
| 17 | | Farm machinery and equipment shall include precision | 18 | | farming equipment
that is
installed or purchased to be | 19 | | installed on farm machinery and equipment
including, but not | 20 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 21 | | or spreaders.
Precision farming equipment includes, but is not | 22 | | limited to,
soil testing sensors, computers, monitors, | 23 | | software, global positioning
and mapping systems, and other | 24 | | such equipment.
| 25 | | Farm machinery and equipment also includes computers, | 26 | | sensors, software, and
related equipment used primarily in the
|
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| 1 | | computer-assisted operation of production agriculture | 2 | | facilities, equipment,
and activities such as, but
not limited | 3 | | to,
the collection, monitoring, and correlation of
animal and | 4 | | crop data for the purpose of
formulating animal diets and | 5 | | agricultural chemicals. This item (2) is exempt
from the | 6 | | provisions of
Section 2-70.
| 7 | | (3) Until July 1, 2003, distillation machinery and | 8 | | equipment, sold as a
unit or kit,
assembled or installed by the | 9 | | retailer, certified by the user to be used
only for the | 10 | | production of ethyl alcohol that will be used for consumption
| 11 | | as motor fuel or as a component of motor fuel for the personal | 12 | | use of the
user, and not subject to sale or resale.
| 13 | | (4) Until July 1, 2003 and beginning again September 1, | 14 | | 2004 through August 30, 2014, graphic arts machinery and | 15 | | equipment, including
repair and
replacement parts, both new and | 16 | | used, and including that manufactured on
special order or | 17 | | purchased for lease, certified by the purchaser to be used
| 18 | | primarily for graphic arts production.
Equipment includes | 19 | | chemicals or
chemicals acting as catalysts but only if
the | 20 | | chemicals or chemicals acting as catalysts effect a direct and | 21 | | immediate
change upon a
graphic arts product.
| 22 | | (5) A motor vehicle that is used for automobile renting, as | 23 | | defined in the Automobile Renting Occupation and Use Tax Act. | 24 | | This paragraph is exempt from
the provisions of Section 2-70.
| 25 | | (6) Personal property sold by a teacher-sponsored student | 26 | | organization
affiliated with an elementary or secondary school |
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| 1 | | located in Illinois.
| 2 | | (7) Until July 1, 2003, proceeds of that portion of the | 3 | | selling price of
a passenger car the
sale of which is subject | 4 | | to the Replacement Vehicle Tax.
| 5 | | (8) Personal property sold to an Illinois county fair | 6 | | association for
use in conducting, operating, or promoting the | 7 | | county fair.
| 8 | | (9) Personal property sold to a not-for-profit arts
or | 9 | | cultural organization that establishes, by proof required by | 10 | | the Department
by
rule, that it has received an exemption under | 11 | | Section 501(c)(3) of the
Internal Revenue Code and that is | 12 | | organized and operated primarily for the
presentation
or | 13 | | support of arts or cultural programming, activities, or | 14 | | services. These
organizations include, but are not limited to, | 15 | | music and dramatic arts
organizations such as symphony | 16 | | orchestras and theatrical groups, arts and
cultural service | 17 | | organizations, local arts councils, visual arts organizations,
| 18 | | and media arts organizations.
On and after the effective date | 19 | | of this amendatory Act of the 92nd General
Assembly, however, | 20 | | an entity otherwise eligible for this exemption shall not
make | 21 | | tax-free purchases unless it has an active identification | 22 | | number issued by
the Department.
| 23 | | (10) Personal property sold by a corporation, society, | 24 | | association,
foundation, institution, or organization, other | 25 | | than a limited liability
company, that is organized and | 26 | | operated as a not-for-profit service enterprise
for the benefit |
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| 1 | | of persons 65 years of age or older if the personal property
| 2 | | was not purchased by the enterprise for the purpose of resale | 3 | | by the
enterprise.
| 4 | | (11) Personal property sold to a governmental body, to a | 5 | | corporation,
society, association, foundation, or institution | 6 | | organized and operated
exclusively for charitable, religious, | 7 | | or educational purposes, or to a
not-for-profit corporation, | 8 | | society, association, foundation, institution,
or organization | 9 | | that has no compensated officers or employees and that is
| 10 | | organized and operated primarily for the recreation of persons | 11 | | 55 years of
age or older. A limited liability company may | 12 | | qualify for the exemption under
this paragraph only if the | 13 | | limited liability company is organized and operated
| 14 | | exclusively for educational purposes. On and after July 1, | 15 | | 1987, however, no
entity otherwise eligible for this exemption | 16 | | shall make tax-free purchases
unless it has an active | 17 | | identification number issued by the Department.
| 18 | | (12) Tangible personal property sold to
interstate | 19 | | carriers
for hire for use as
rolling stock moving in interstate | 20 | | commerce or to lessors under leases of
one year or longer | 21 | | executed or in effect at the time of purchase by
interstate | 22 | | carriers for hire for use as rolling stock moving in interstate
| 23 | | commerce and equipment operated by a telecommunications | 24 | | provider, licensed as a
common carrier by the Federal | 25 | | Communications Commission, which is permanently
installed in | 26 | | or 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, | 2 | | motor vehicles of the second division
with a gross vehicle | 3 | | weight in excess of 8,000 pounds
that
are
subject to the | 4 | | commercial distribution fee imposed under Section 3-815.1 of
| 5 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 6 | | through June 30, 2005, the use in this State of motor vehicles | 7 | | of the second division: (i) with a gross vehicle weight rating | 8 | | in excess of 8,000 pounds; (ii) that are subject to the | 9 | | commercial distribution fee imposed under Section 3-815.1 of | 10 | | the Illinois Vehicle Code; and (iii) that are primarily used | 11 | | for commercial purposes. Through June 30, 2005, this
exemption | 12 | | applies to repair and replacement parts added
after the
initial | 13 | | purchase of such a motor vehicle if that motor vehicle is used | 14 | | in a
manner that
would qualify for the rolling stock exemption | 15 | | otherwise provided for in this
Act. For purposes of this | 16 | | paragraph, "used for commercial purposes" means the | 17 | | transportation of persons or property in furtherance of any | 18 | | commercial or industrial enterprise whether for-hire or not.
| 19 | | (13) Proceeds from sales to owners, lessors, or
shippers of
| 20 | | tangible personal property that is utilized by interstate | 21 | | carriers for
hire for use as rolling stock moving in interstate | 22 | | commerce
and equipment operated by a telecommunications | 23 | | provider, licensed as a
common carrier by the Federal | 24 | | Communications Commission, which is
permanently installed in | 25 | | or affixed to aircraft moving in interstate commerce.
| 26 | | (14) Machinery and equipment that will be used by the |
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| 1 | | purchaser, or a
lessee of the purchaser, primarily in the | 2 | | process of manufacturing or
assembling tangible personal | 3 | | property for wholesale or retail sale or
lease, whether the | 4 | | sale or lease is made directly by the manufacturer or by
some | 5 | | other person, whether the materials used in the process are | 6 | | owned by
the manufacturer or some other person, or whether the | 7 | | sale or lease is made
apart from or as an incident to the | 8 | | seller's engaging in the service
occupation of producing | 9 | | machines, tools, dies, jigs, patterns, gauges, or
other similar | 10 | | items of no commercial value on special order for a particular
| 11 | | purchaser. The exemption provided by this paragraph (14) does | 12 | | not include machinery and equipment used in (i) the generation | 13 | | of electricity for wholesale or retail sale; (ii) the | 14 | | generation or treatment of natural or artificial gas for | 15 | | wholesale or retail sale that is delivered to customers through | 16 | | pipes, pipelines, or mains; or (iii) the treatment of water for | 17 | | wholesale or retail sale that is delivered to customers through | 18 | | pipes, pipelines, or mains. The provisions of Public Act 98-583 | 19 | | this amendatory Act of the 98th General Assembly are | 20 | | declaratory of existing law as to the meaning and scope of this | 21 | | exemption.
| 22 | | (15) Proceeds of mandatory service charges separately | 23 | | stated on
customers' bills for purchase and consumption of food | 24 | | and beverages, to the
extent that the proceeds of the service | 25 | | charge are in fact turned over as
tips or as a substitute for | 26 | | tips to the employees who participate directly
in preparing, |
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| 1 | | serving, hosting or cleaning up the food or beverage function
| 2 | | with respect to which the service charge is imposed.
| 3 | | (16) Petroleum products sold to a purchaser if the seller
| 4 | | is prohibited by federal law from charging tax to the | 5 | | purchaser.
| 6 | | (17) Tangible personal property sold to a common carrier by | 7 | | rail or
motor that
receives the physical possession of the | 8 | | property in Illinois and that
transports the property, or | 9 | | shares with another common carrier in the
transportation of the | 10 | | property, out of Illinois on a standard uniform bill
of lading | 11 | | showing the seller of the property as the shipper or consignor | 12 | | of
the property to a destination outside Illinois, for use | 13 | | outside Illinois.
| 14 | | (18) Legal tender, currency, medallions, or gold or silver | 15 | | coinage
issued by the State of Illinois, the government of the | 16 | | United States of
America, or the government of any foreign | 17 | | country, and bullion.
| 18 | | (19) Until July 1 2003, oil field exploration, drilling, | 19 | | and production
equipment, including
(i) rigs and parts of rigs, | 20 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 21 | | tubular goods, including casing and
drill strings, (iii) pumps | 22 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 23 | | individual replacement part for oil field exploration,
| 24 | | drilling, and production equipment, and (vi) machinery and | 25 | | equipment purchased
for lease; but
excluding motor vehicles | 26 | | required to be registered under the Illinois
Vehicle Code.
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| 1 | | (20) Photoprocessing machinery and equipment, including | 2 | | repair and
replacement parts, both new and used, including that | 3 | | manufactured on
special order, certified by the purchaser to be | 4 | | used primarily for
photoprocessing, and including | 5 | | photoprocessing machinery and equipment
purchased for lease.
| 6 | | (21) Coal and aggregate exploration, mining, off-highway | 7 | | offhighway hauling,
processing,
maintenance, and reclamation | 8 | | equipment, including
replacement parts and equipment, and | 9 | | including
equipment purchased for lease, but excluding motor | 10 | | vehicles required to be
registered under the Illinois Vehicle | 11 | | Code. The changes made to this Section by Public Act 97-767 | 12 | | apply on and after July 1, 2003, but no claim for credit or | 13 | | refund is allowed on or after August 16, 2013 ( the effective | 14 | | date of Public Act 98-456) this amendatory Act of the 98th | 15 | | General Assembly
for such taxes paid during the period | 16 | | beginning July 1, 2003 and ending on August 16, 2013 ( the | 17 | | effective date of Public Act 98-456) this amendatory Act of the | 18 | | 98th General Assembly .
| 19 | | (22) Until June 30, 2013, fuel and petroleum products sold | 20 | | to or used by an air carrier,
certified by the carrier to be | 21 | | used for consumption, shipment, or storage
in the conduct of | 22 | | its business as an air common carrier, for a flight
destined | 23 | | for or returning from a location or locations
outside the | 24 | | United States without regard to previous or subsequent domestic
| 25 | | stopovers.
| 26 | | Beginning July 1, 2013, fuel and petroleum products sold to |
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| 1 | | or used by an air carrier, certified by the carrier to be used | 2 | | for consumption, shipment, or storage in the conduct of its | 3 | | business as an air common carrier, for a flight that (i) is | 4 | | engaged in foreign trade or is engaged in trade between the | 5 | | United States and any of its possessions and (ii) transports at | 6 | | least one individual or package for hire from the city of | 7 | | origination to the city of final destination on the same | 8 | | aircraft, without regard to a change in the flight number of | 9 | | that aircraft. | 10 | | (23) A transaction in which the purchase order is received | 11 | | by a florist
who is located outside Illinois, but who has a | 12 | | florist located in Illinois
deliver the property to the | 13 | | purchaser or the purchaser's donee in Illinois.
| 14 | | (24) Fuel consumed or used in the operation of ships, | 15 | | barges, or vessels
that are used primarily in or for the | 16 | | transportation of property or the
conveyance of persons for | 17 | | hire on rivers bordering on this State if the
fuel is delivered | 18 | | by the seller to the purchaser's barge, ship, or vessel
while | 19 | | it is afloat upon that bordering river.
| 20 | | (25) Except as provided in item (25-5) of this Section, a
| 21 | | motor vehicle sold in this State to a nonresident even though | 22 | | the
motor vehicle is delivered to the nonresident in this | 23 | | State, if the motor
vehicle is not to be titled in this State, | 24 | | and if a drive-away permit
is issued to the motor vehicle as | 25 | | provided in Section 3-603 of the Illinois
Vehicle Code or if | 26 | | the nonresident purchaser has vehicle registration
plates to |
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| 1 | | transfer to the motor vehicle upon returning to his or her home
| 2 | | state. The issuance of the drive-away permit or having
the
| 3 | | out-of-state registration plates to be transferred is prima | 4 | | facie evidence
that the motor vehicle will not be titled in | 5 | | this State.
| 6 | | (25-5) The exemption under item (25) does not apply if the | 7 | | state in which the motor vehicle will be titled does not allow | 8 | | a reciprocal exemption for a motor vehicle sold and delivered | 9 | | in that state to an Illinois resident but titled in Illinois. | 10 | | The tax collected under this Act on the sale of a motor vehicle | 11 | | in this State to a resident of another state that does not | 12 | | allow a reciprocal exemption shall be imposed at a rate equal | 13 | | to the state's rate of tax on taxable property in the state in | 14 | | which the purchaser is a resident, except that the tax shall | 15 | | not exceed the tax that would otherwise be imposed under this | 16 | | Act. At the time of the sale, the purchaser shall execute a | 17 | | statement, signed under penalty of perjury, of his or her | 18 | | intent to title the vehicle in the state in which the purchaser | 19 | | is a resident within 30 days after the sale and of the fact of | 20 | | the payment to the State of Illinois of tax in an amount | 21 | | equivalent to the state's rate of tax on taxable property in | 22 | | his or her state of residence and shall submit the statement to | 23 | | the appropriate tax collection agency in his or her state of | 24 | | residence. In addition, the retailer must retain a signed copy | 25 | | of the statement in his or her records. Nothing in this item | 26 | | shall be construed to require the removal of the vehicle from |
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| 1 | | this state following the filing of an intent to title the | 2 | | vehicle in the purchaser's state of residence if the purchaser | 3 | | titles the vehicle in his or her state of residence within 30 | 4 | | days after the date of sale. The tax collected under this Act | 5 | | in accordance with this item (25-5) shall be proportionately | 6 | | distributed as if the tax were collected at the 6.25% general | 7 | | rate imposed under this Act.
| 8 | | (25-7) Beginning on July 1, 2007, no tax is imposed under | 9 | | this Act on the sale of an aircraft, as defined in Section 3 of | 10 | | the Illinois Aeronautics Act, if all of the following | 11 | | conditions are met: | 12 | | (1) the aircraft leaves this State within 15 days after | 13 | | the later of either the issuance of the final billing for | 14 | | the sale of the aircraft, or the authorized approval for | 15 | | return to service, completion of the maintenance record | 16 | | entry, and completion of the test flight and ground test | 17 | | for inspection, as required by 14 C.F.R. 91.407; | 18 | | (2) the aircraft is not based or registered in this | 19 | | State after the sale of the aircraft; and | 20 | | (3) the seller retains in his or her books and records | 21 | | and provides to the Department a signed and dated | 22 | | certification from the purchaser, on a form prescribed by | 23 | | the Department, certifying that the requirements of this | 24 | | item (25-7) are met. The certificate must also include the | 25 | | name and address of the purchaser, the address of the | 26 | | location where the aircraft is to be titled or registered, |
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| 1 | | the address of the primary physical location of the | 2 | | aircraft, and other information that the Department may | 3 | | reasonably require. | 4 | | For purposes of this item (25-7): | 5 | | "Based in this State" means hangared, stored, or otherwise | 6 | | used, excluding post-sale customizations as defined in this | 7 | | Section, for 10 or more days in each 12-month period | 8 | | immediately following the date of the sale of the aircraft. | 9 | | "Registered in this State" means an aircraft registered | 10 | | with the Department of Transportation, Aeronautics Division, | 11 | | or titled or registered with the Federal Aviation | 12 | | Administration to an address located in this State. | 13 | | This paragraph (25-7) is exempt from the provisions
of
| 14 | | Section 2-70.
| 15 | | (26) Semen used for artificial insemination of livestock | 16 | | for direct
agricultural production.
| 17 | | (27) Horses, or interests in horses, registered with and | 18 | | meeting the
requirements of any of the
Arabian Horse Club | 19 | | Registry of America, Appaloosa Horse Club, American Quarter
| 20 | | Horse Association, United States
Trotting Association, or | 21 | | Jockey Club, as appropriate, used for
purposes of breeding or | 22 | | racing for prizes. This item (27) is exempt from the provisions | 23 | | of Section 2-70, and the exemption provided for under this item | 24 | | (27) applies for all periods beginning May 30, 1995, but no | 25 | | claim for credit or refund is allowed on or after January 1, | 26 | | 2008 (the effective date of Public Act 95-88)
for such taxes |
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| 1 | | paid during the period beginning May 30, 2000 and ending on | 2 | | January 1, 2008 (the effective date of Public Act 95-88).
| 3 | | (28) Computers and communications equipment utilized for | 4 | | any
hospital
purpose
and equipment used in the diagnosis,
| 5 | | analysis, or treatment of hospital patients sold to a lessor | 6 | | who leases the
equipment, under a lease of one year or longer | 7 | | executed or in effect at the
time of the purchase, to a
| 8 | | hospital
that has been issued an active tax exemption | 9 | | identification number by the
Department under Section 1g of | 10 | | this Act.
| 11 | | (29) Personal property sold to a lessor who leases the
| 12 | | property, under a
lease of one year or longer executed or in | 13 | | effect at the time of the purchase,
to a governmental body
that | 14 | | has been issued an active tax exemption identification number | 15 | | by the
Department under Section 1g of this Act.
| 16 | | (30) Beginning with taxable years ending on or after | 17 | | December
31, 1995
and
ending with taxable years ending on or | 18 | | before December 31, 2004,
personal property that is
donated for | 19 | | disaster relief to be used in a State or federally declared
| 20 | | disaster area in Illinois or bordering Illinois by a | 21 | | manufacturer or retailer
that is registered in this State to a | 22 | | corporation, society, association,
foundation, or institution | 23 | | that has been issued a sales tax exemption
identification | 24 | | number by the Department that assists victims of the disaster
| 25 | | who reside within the declared disaster area.
| 26 | | (31) Beginning with taxable years ending on or after |
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| 1 | | December
31, 1995 and
ending with taxable years ending on or | 2 | | before December 31, 2004, personal
property that is used in the | 3 | | performance of infrastructure repairs in this
State, including | 4 | | but not limited to municipal roads and streets, access roads,
| 5 | | bridges, sidewalks, waste disposal systems, water and sewer | 6 | | line extensions,
water distribution and purification | 7 | | facilities, storm water drainage and
retention facilities, and | 8 | | sewage treatment facilities, resulting from a State
or | 9 | | federally declared disaster in Illinois or bordering Illinois | 10 | | when such
repairs are initiated on facilities located in the | 11 | | declared disaster area
within 6 months after the disaster.
| 12 | | (32) Beginning July 1, 1999, game or game birds sold at a | 13 | | "game breeding
and
hunting preserve area" as that term is used
| 14 | | in the
Wildlife Code. This paragraph is exempt from the | 15 | | provisions
of
Section 2-70.
| 16 | | (33) A motor vehicle, as that term is defined in Section | 17 | | 1-146
of the
Illinois Vehicle Code, that is donated to a | 18 | | corporation, limited liability
company, society, association, | 19 | | foundation, or institution that is determined by
the Department | 20 | | to be organized and operated exclusively for educational
| 21 | | purposes. For purposes of this exemption, "a corporation, | 22 | | limited liability
company, society, association, foundation, | 23 | | or institution organized and
operated
exclusively for | 24 | | educational purposes" means all tax-supported public schools,
| 25 | | private schools that offer systematic instruction in useful | 26 | | branches of
learning by methods common to public schools and |
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| 1 | | that compare favorably in
their scope and intensity with the | 2 | | course of study presented in tax-supported
schools, and | 3 | | vocational or technical schools or institutes organized and
| 4 | | operated exclusively to provide a course of study of not less | 5 | | than 6 weeks
duration and designed to prepare individuals to | 6 | | follow a trade or to pursue a
manual, technical, mechanical, | 7 | | industrial, business, or commercial
occupation.
| 8 | | (34) Beginning January 1, 2000, personal property, | 9 | | including food, purchased
through fundraising events for the | 10 | | benefit of a public or private elementary or
secondary school, | 11 | | a group of those schools, or one or more school districts if
| 12 | | the events are sponsored by an entity recognized by the school | 13 | | district that
consists primarily of volunteers and includes | 14 | | parents and teachers of the
school children. This paragraph | 15 | | does not apply to fundraising events (i) for
the benefit of | 16 | | private home instruction or (ii) for which the fundraising
| 17 | | entity purchases the personal property sold at the events from | 18 | | another
individual or entity that sold the property for the | 19 | | purpose of resale by the
fundraising entity and that profits | 20 | | from the sale to the fundraising entity.
This paragraph is | 21 | | exempt from the provisions of Section 2-70.
| 22 | | (35) Beginning January 1, 2000 and through December 31, | 23 | | 2001, new or used
automatic vending machines that prepare and | 24 | | serve hot food and beverages,
including coffee, soup, and other | 25 | | items, and replacement parts for these
machines. Beginning | 26 | | January 1, 2002 and through June 30, 2003, machines
and parts |
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| 1 | | for machines used in
commercial, coin-operated amusement and | 2 | | vending business if a use or occupation
tax is paid on the | 3 | | gross receipts derived from the use of the commercial,
| 4 | | coin-operated amusement and vending machines. This paragraph | 5 | | is exempt from
the provisions of Section 2-70.
| 6 | | (35-5) Beginning August 23, 2001 and through June 30, 2016, | 7 | | food for human consumption that is to be consumed off
the | 8 | | premises where it is sold (other than alcoholic beverages, soft | 9 | | drinks,
and food that has been prepared for immediate | 10 | | consumption) and prescription
and nonprescription medicines, | 11 | | drugs, medical appliances, and insulin, urine
testing | 12 | | materials, syringes, and needles used by diabetics, for human | 13 | | use, when
purchased for use by a person receiving medical | 14 | | assistance under Article V of
the Illinois Public Aid Code who | 15 | | resides in a licensed long-term care facility,
as defined in | 16 | | the Nursing Home Care Act, or a licensed facility as defined in | 17 | | the ID/DD Community Care Act or the Specialized Mental Health | 18 | | Rehabilitation Act of 2013.
| 19 | | (36) Beginning August 2, 2001, computers and | 20 | | communications equipment
utilized for any hospital purpose and | 21 | | equipment used in the diagnosis,
analysis, or treatment of | 22 | | hospital patients sold to a lessor who leases the
equipment, | 23 | | under a lease of one year or longer executed or in effect at | 24 | | the
time of the purchase, to a hospital that has been issued an | 25 | | active tax
exemption identification number by the Department | 26 | | under Section 1g of this Act.
This paragraph is exempt from the |
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| 1 | | provisions of Section 2-70.
| 2 | | (37) Beginning August 2, 2001, personal property sold to a | 3 | | lessor who
leases the property, under a lease of one year or | 4 | | longer executed or in effect
at the time of the purchase, to a | 5 | | governmental body that has been issued an
active tax exemption | 6 | | identification number by the Department under Section 1g
of | 7 | | this Act. This paragraph is exempt from the provisions of | 8 | | Section 2-70.
| 9 | | (38) Beginning on January 1, 2002 and through June 30, | 10 | | 2016, tangible personal property purchased
from an Illinois | 11 | | retailer by a taxpayer engaged in centralized purchasing
| 12 | | activities in Illinois who will, upon receipt of the property | 13 | | in Illinois,
temporarily store the property in Illinois (i) for | 14 | | the purpose of subsequently
transporting it outside this State | 15 | | for use or consumption thereafter solely
outside this State or | 16 | | (ii) for the purpose of being processed, fabricated, or
| 17 | | manufactured into, attached to, or incorporated into other | 18 | | tangible personal
property to be transported outside this State | 19 | | and thereafter used or consumed
solely outside this State. The | 20 | | Director of Revenue shall, pursuant to rules
adopted in | 21 | | accordance with the Illinois Administrative Procedure Act, | 22 | | issue a
permit to any taxpayer in good standing with the | 23 | | Department who is eligible for
the exemption under this | 24 | | paragraph (38). The permit issued under
this paragraph (38) | 25 | | shall authorize the holder, to the extent and
in the manner | 26 | | specified in the rules adopted under this Act, to purchase
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| 1 | | tangible personal property from a retailer exempt from the | 2 | | taxes imposed by
this Act. Taxpayers shall maintain all | 3 | | necessary books and records to
substantiate the use and | 4 | | consumption of all such tangible personal property
outside of | 5 | | the State of Illinois.
| 6 | | (39) Beginning January 1, 2008, tangible personal property | 7 | | used in the construction or maintenance of a community water | 8 | | supply, as defined under Section 3.145 of the Environmental | 9 | | Protection Act, that is operated by a not-for-profit | 10 | | corporation that holds a valid water supply permit issued under | 11 | | Title IV of the Environmental Protection Act. This paragraph is | 12 | | exempt from the provisions of Section 2-70.
| 13 | | (40) Beginning January 1, 2010, materials, parts, | 14 | | equipment, components, and furnishings incorporated into or | 15 | | upon an aircraft as part of the modification, refurbishment, | 16 | | completion, replacement, repair, or maintenance of the | 17 | | aircraft. This exemption includes consumable supplies used in | 18 | | the modification, refurbishment, completion, replacement, | 19 | | repair, and maintenance of aircraft, but excludes any | 20 | | materials, parts, equipment, components, and consumable | 21 | | supplies used in the modification, replacement, repair, and | 22 | | maintenance of aircraft engines or power plants, whether such | 23 | | engines or power plants are installed or uninstalled upon any | 24 | | such aircraft. "Consumable supplies" include, but are not | 25 | | limited to, adhesive, tape, sandpaper, general purpose | 26 | | lubricants, cleaning solution, latex gloves, and protective |
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| 1 | | films. This exemption applies only to the sale of qualifying | 2 | | tangible personal property to persons who modify, refurbish, | 3 | | complete, replace, or maintain an aircraft and who (i) hold an | 4 | | Air Agency Certificate and are empowered to operate an approved | 5 | | repair station by the Federal Aviation Administration, (ii) | 6 | | have a Class IV Rating, and (iii) conduct operations in | 7 | | accordance with Part 145 of the Federal Aviation Regulations. | 8 | | The exemption does not include aircraft operated by a | 9 | | commercial air carrier providing scheduled passenger air | 10 | | service pursuant to authority issued under Part 121 or Part 129 | 11 | | of the Federal Aviation Regulations. The changes made to this | 12 | | paragraph (40) by Public Act 98-534 this amendatory Act of the | 13 | | 98th General Assembly are declarative of existing law. | 14 | | (41) Tangible personal property sold to a | 15 | | public-facilities corporation, as described in Section | 16 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 17 | | constructing or furnishing a municipal convention hall, but | 18 | | only if the legal title to the municipal convention hall is | 19 | | transferred to the municipality without any further | 20 | | consideration by or on behalf of the municipality at the time | 21 | | of the completion of the municipal convention hall or upon the | 22 | | retirement or redemption of any bonds or other debt instruments | 23 | | issued by the public-facilities corporation in connection with | 24 | | the development of the municipal convention hall. This | 25 | | exemption includes existing public-facilities corporations as | 26 | | provided in Section 11-65-25 of the Illinois Municipal Code. |
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| 1 | | This paragraph is exempt from the provisions of Section 2-70. | 2 | | (42) Beginning on July 1, 2014, qualified tangible personal | 3 | | property used in the construction or operation of a data center | 4 | | that has been granted a Certificate of Exemption by the | 5 | | Department of Commerce and Economic Opportunity, whether that | 6 | | tangible personal property is purchased by the owner of the | 7 | | data center or by a contractor or subcontractor of the owner. | 8 | | The Department of Commerce and Economic Opportunity shall | 9 | | grant a Certificate of Exemption under this item (42) if the | 10 | | owner or operator of the data center makes a capital investment | 11 | | of at least $200,000,000 at the data center within a 5-year | 12 | | period from the date the certificate is issued. | 13 | | For the purposes of this item (42): | 14 | | "Data center" means a building or a series of buildings | 15 | | rehabilitated or constructed to house a group of networked | 16 | | server computers in one physical location or several sites | 17 | | within a single county in order to centralize the storage, | 18 | | management, and dissemination of data and information. | 19 | | "Qualified tangible personal property" means | 20 | | electrical systems and equipment; mechanical systems and | 21 | | equipment; emergency generators; hardware or distributed | 22 | | computers or servers; data storage devices; network | 23 | | connectivity equipment; racks; cabinets; raised floor | 24 | | systems; peripheral components or systems; software; | 25 | | mechanical, electrical, or plumbing systems necessary to | 26 | | operate other items of tangible personal property, |
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| 1 | | including fixtures; and component parts of any of the | 2 | | foregoing, including installation, maintenance, repair, | 3 | | refurbishment, and replacement of qualified tangible | 4 | | personal property. | 5 | | This item (42) is exempt from the provisions of Section | 6 | | 2-70. | 7 | | (Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, | 8 | | eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, | 9 | | eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | 10 | | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | 11 | | 1-1-14; 98-583, eff. 1-1-14; revised 9-9-13.)
| 12 | | Section 25. The Electricity Excise Tax Law is amended by | 13 | | changing Section 2-4 as follows:
| 14 | | (35 ILCS 640/2-4)
| 15 | | Sec. 2-4. Tax imposed.
| 16 | | (a) Except as provided in subsection (b), a tax is
imposed | 17 | | on the privilege
of using in this State electricity purchased | 18 | | for use or
consumption and not for resale, other than by | 19 | | municipal corporations owning and
operating a local | 20 | | transportation system for public service, at the following
| 21 | | rates per
kilowatt-hour delivered to the purchaser:
| 22 | | (i) For the first 2000 kilowatt-hours used or
consumed | 23 | | in a month: 0.330 cents per kilowatt-hour;
| 24 | | (ii) For the next 48,000 kilowatt-hours used or
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| 1 | | consumed in a month: 0.319 cents per kilowatt-hour;
| 2 | | (iii) For the next 50,000 kilowatt-hours used or
| 3 | | consumed in a month: 0.303 cents per kilowatt-hour;
| 4 | | (iv) For the next 400,000 kilowatt-hours used or
| 5 | | consumed in a month: 0.297 cents per kilowatt-hour;
| 6 | | (v) For the next 500,000 kilowatt-hours used or
| 7 | | consumed in a month: 0.286 cents per kilowatt-hour;
| 8 | | (vi) For the next 2,000,000 kilowatt-hours used or
| 9 | | consumed in a month: 0.270 cents per kilowatt-hour;
| 10 | | (vii) For the next 2,000,000 kilowatt-hours used or
| 11 | | consumed in a month: 0.254 cents per kilowatt-hour;
| 12 | | (viii) For the next 5,000,000 kilowatt-hours used
or | 13 | | consumed in a month: 0.233 cents per kilowatt-hour;
| 14 | | (ix) For the next 10,000,000 kilowatt-hours used or
| 15 | | consumed in a month: 0.207 cents per kilowatt-hour;
| 16 | | (x) For all electricity in excess of 20,000,000
| 17 | | kilowatt-hours used or consumed in a month: 0.202 cents
per | 18 | | kilowatt-hour.
| 19 | | Provided, that in lieu of the foregoing rates, the tax
is | 20 | | imposed on a self-assessing purchaser at the rate of 5.1%
of | 21 | | the self-assessing purchaser's purchase price for
all | 22 | | electricity distributed, supplied, furnished, sold,
| 23 | | transmitted and delivered to the self-assessing purchaser in a
| 24 | | month.
| 25 | | (b) A tax is imposed on the privilege of using in this | 26 | | State electricity
purchased from a municipal system or electric |
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| 1 | | cooperative, as defined in
Article XVII of the Public Utilities | 2 | | Act, which has not made an election as
permitted by either | 3 | | Section 17-200 or Section 17-300 of such Act, at the lesser
of | 4 | | 0.32 cents per kilowatt hour of all electricity distributed, | 5 | | supplied,
furnished, sold, transmitted, and delivered by such | 6 | | municipal system or
electric cooperative to the purchaser or 5% | 7 | | of each such purchaser's purchase
price for all electricity | 8 | | distributed, supplied, furnished, sold, transmitted,
and | 9 | | delivered by such municipal system or electric cooperative to | 10 | | the
purchaser, whichever is the lower rate as applied to each | 11 | | purchaser in each
billing period.
| 12 | | (c) The tax imposed by this Section 2-4 is not imposed with
| 13 | | respect to any use of electricity by business enterprises
| 14 | | certified under Section 9-222.1 or 9-222.1A of the Public | 15 | | Utilities Act,
as amended, to the extent of such exemption and | 16 | | during the
time specified by the Department of Commerce and | 17 | | Economic Opportunity; or with respect to any transaction in | 18 | | interstate
commerce, or otherwise, to the extent to which such
| 19 | | transaction may not, under the Constitution and statutes of
the | 20 | | United States, be made the subject of taxation by this
State.
| 21 | | (d) Beginning July 1, 2014, a business enterprise that is | 22 | | certified as a data center by the Department of Commerce and | 23 | | Economic Opportunity is exempt from the tax imposed under this | 24 | | Section. The Department of Commerce and Economic Opportunity | 25 | | may adopt rules to carry out the provisions of this subsection, | 26 | | including procedures for applying for the exemption. The |
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| 1 | | Department of Commerce and Economic Opportunity may require | 2 | | that the business enterprise repay the exempted amount if the | 3 | | business enterprise fails to comply with the terms and | 4 | | conditions certification. Upon certification of the business | 5 | | enterprise, the Department of Commerce and Economic | 6 | | Opportunity shall notify the Department of Revenue of the | 7 | | certification. The Department of Revenue shall then notify the | 8 | | public utility of the exemption status of the business | 9 | | enterprise. The exemption shall take effect upon certification | 10 | | of the business enterprise. | 11 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.".
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