State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]



90_SB1456

      35 ILCS 105/3-5           from Ch. 120, par. 439.3-5
      35 ILCS 110/3-5           from Ch. 120, par. 439.33-5
      35 ILCS 115/3-5           from Ch. 120, par. 439.103-5
      35 ILCS 120/2-5           from Ch. 120, par. 441-5
          Amends the Use Tax Act, the  Service  Use  Tax  Act,  the
      Service Occupation Tax Act, and the Retailers' Occupation Tax
      Act.   Provides  that  the  exemption  for farm machinery and
      equipment shall also apply to implements of  husbandry,  farm
      machinery and agricultural chemical and fertilizer spreaders,
      and nurse wagons required to be registered under the Illinois
      Vehicle  Code.   Provides that for purposes of the exemption,
      farm  machinery  and  equipment  includes  certain  precision
      farming  equipment  and  computers,  sensors,  software,  and
      related equipment used  primarily  in  the  computer-assisted
      operation  of  production  agriculture facilities, equipment,
      and activities.  Provides that the exemption is  exempt  from
      the sunset provisions.  Effective immediately.
                                                    LRB9008326KDdvB
                                              LRB9008326KDdvB
 1        AN ACT in relation to taxes, amending named Acts.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The  Use  Tax  Act  is  amended  by  changing
 5    Section 3-5 as follows:
 6        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
 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
17    Illinois  county  fair  association  for  use  in conducting,
18    operating, or promoting the county fair.
19        (3)  Personal  property  purchased  by  a  not-for-profit
20    music or dramatic  arts  organization  that  establishes,  by
21    proof  required  by  the  Department  by  rule,  that  it has
22    received an exemption under Section 501(c)(3) of the Internal
23    Revenue Code and that  is  organized  and  operated  for  the
24    presentation  of  live  public  performances  of  musical  or
25    theatrical works on a regular basis.
26        (4)  Personal  property purchased by a governmental body,
27    by  a  corporation,  society,  association,  foundation,   or
28    institution    organized   and   operated   exclusively   for
29    charitable, religious,  or  educational  purposes,  or  by  a
30    not-for-profit corporation, society, association, foundation,
31    institution, or organization that has no compensated officers
                            -2-               LRB9008326KDdvB
 1    or employees and that is organized and operated primarily for
 2    the recreation of persons 55 years of age or older. A limited
 3    liability  company  may  qualify for the exemption under this
 4    paragraph only if the limited liability company is  organized
 5    and  operated  exclusively  for  educational purposes. On and
 6    after July 1, 1987, however, no entity otherwise eligible for
 7    this exemption shall make tax-free purchases unless it has an
 8    active  exemption  identification  number   issued   by   the
 9    Department.
10        (5)  A passenger car that is a replacement vehicle to the
11    extent  that  the purchase price of the car is subject to the
12    Replacement Vehicle Tax.
13        (6)  Graphic  arts  machinery  and  equipment,  including
14    repair  and  replacement  parts,  both  new  and  used,   and
15    including  that  manufactured  on special order, certified by
16    the  purchaser  to  be  used  primarily  for   graphic   arts
17    production,  and  including machinery and equipment purchased
18    for lease.
19        (7)  Farm chemicals.
20        (8)  Legal  tender,  currency,  medallions,  or  gold  or
21    silver  coinage  issued  by  the  State  of   Illinois,   the
22    government of the United States of America, or the government
23    of any foreign 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.
27        (10)  A motor vehicle of  the  first  division,  a  motor
28    vehicle of the second division that is a self-contained motor
29    vehicle  designed  or permanently converted to provide living
30    quarters for  recreational,  camping,  or  travel  use,  with
31    direct  walk through to the living quarters from the driver's
32    seat, or a motor vehicle of the second division  that  is  of
33    the  van configuration designed for the transportation of not
34    less than 7 nor  more  than  16  passengers,  as  defined  in
                            -3-               LRB9008326KDdvB
 1    Section  1-146 of the Illinois Vehicle Code, that is used for
 2    automobile renting, as  defined  in  the  Automobile  Renting
 3    Occupation and Use Tax Act.
 4        (11)  Farm  machinery  and  equipment, both new and used,
 5    including that manufactured on special  order,  certified  by
 6    the purchaser to be used primarily for production agriculture
 7    or   State   or   federal  agricultural  programs,  including
 8    individual replacement parts for the machinery and equipment,
 9    and including machinery and equipment  purchased  for  lease,
10    and  including  implements  of  husbandry  defined in Section
11    1-130 of  the  Illinois  Vehicle  Code,  farm  machinery  and
12    agricultural  chemical  and  fertilizer  spreaders, and nurse
13    wagons required to be registered under Section 3-809  of  the
14    Illinois  Vehicle  Code,  but  excluding other motor vehicles
15    required to be registered under the  Illinois  Vehicle  Code.
16    Horticultural polyhouses or hoop houses used for propagating,
17    growing,  or  overwintering  plants  shall be considered farm
18    machinery and  equipment  under  this  item  (11)  paragraph.
19    Agricultural  chemical  tender  tanks  and  dry  boxes  shall
20    include  units  sold separately from a motor vehicle required
21    to be licensed and units sold  mounted  on  a  motor  vehicle
22    required to be licensed if the selling price of the tender is
23    separately stated.
24        Farm  machinery  and  equipment  shall  include precision
25    farming equipment  that  is  installed  or  purchased  to  be
26    installed  on farm machinery and equipment including, but not
27    limited  to,  tractors,  combines,  or  spreaders.  Precision
28    farming equipment includes,  but  is  not  limited  to,  soil
29    testing   sensors,   computers,  monitors,  software,  global
30    positioning and mapping systems, and other such equipment.
31        Farm machinery and  equipment  also  includes  computers,
32    sensors,  software,  and  related equipment used primarily in
33    the computer-assisted  operation  of  production  agriculture
34    facilities,  equipment,  and  activities  such  as,  but  not
                            -4-               LRB9008326KDdvB
 1    limited  to,  the  collection, monitoring, and correlation of
 2    animal and crop data for the purpose  of  formulating  animal
 3    diets  and  agricultural chemicals.  This item (11) is exempt
 4    from the provisions of Section 3-90.
 5        (12)  Fuel and petroleum products sold to or used  by  an
 6    air  common  carrier, certified by the carrier to be used for
 7    consumption, shipment, or  storage  in  the  conduct  of  its
 8    business  as an air common carrier, for a flight destined for
 9    or returning from a location or locations outside the  United
10    States  without  regard  to  previous  or subsequent domestic
11    stopovers.
12        (13)  Proceeds of mandatory  service  charges  separately
13    stated  on  customers' bills for the purchase and consumption
14    of food and beverages purchased at retail from a retailer, to
15    the extent that the proceeds of the  service  charge  are  in
16    fact  turned  over as tips or as a substitute for tips to the
17    employees who participate  directly  in  preparing,  serving,
18    hosting  or  cleaning  up  the food or beverage function with
19    respect to which the service charge is imposed.
20        (14)  Oil field  exploration,  drilling,  and  production
21    equipment, including (i) rigs and parts of rigs, rotary rigs,
22    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
23    goods, including casing and drill strings,  (iii)  pumps  and
24    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
25    individual  replacement  part  for  oil  field   exploration,
26    drilling,  and  production  equipment, and (vi) machinery and
27    equipment purchased for lease; but excluding  motor  vehicles
28    required to be registered under the Illinois Vehicle Code.
29        (15)  Photoprocessing  machinery and equipment, including
30    repair and replacement parts, both new  and  used,  including
31    that   manufactured   on  special  order,  certified  by  the
32    purchaser to  be  used  primarily  for  photoprocessing,  and
33    including  photoprocessing  machinery and equipment purchased
34    for lease.
                            -5-               LRB9008326KDdvB
 1        (16)  Coal  exploration,  mining,   offhighway   hauling,
 2    processing, maintenance, and reclamation equipment, including
 3    replacement  parts  and  equipment,  and  including equipment
 4    purchased for lease, but excluding motor vehicles required to
 5    be registered under the Illinois Vehicle Code.
 6        (17)  Distillation machinery and  equipment,  sold  as  a
 7    unit   or  kit,  assembled  or  installed  by  the  retailer,
 8    certified by the user to be used only for the  production  of
 9    ethyl alcohol that will be used for consumption as motor fuel
10    or  as  a component of motor fuel for the personal use of the
11    user, and not subject to sale or resale.
12        (18)  Manufacturing   and   assembling   machinery    and
13    equipment  used  primarily in the process of manufacturing or
14    assembling tangible personal property for wholesale or retail
15    sale or lease, whether that sale or lease is made directly by
16    the  manufacturer  or  by  some  other  person,  whether  the
17    materials used in the process are owned by  the  manufacturer
18    or  some  other person, or whether that sale or lease is made
19    apart from or as an incident to the seller's engaging in  the
20    service  occupation of producing machines, tools, dies, jigs,
21    patterns, gauges, or other similar  items  of  no  commercial
22    value on special order for a particular purchaser.
23        (19)  Personal  property  delivered  to  a  purchaser  or
24    purchaser's donee inside Illinois when the purchase order for
25    that  personal  property  was  received  by a florist located
26    outside Illinois who has a florist  located  inside  Illinois
27    deliver the personal property.
28        (20)  Semen used for artificial insemination of livestock
29    for direct agricultural production.
30        (21)  Horses, or interests in horses, registered with and
31    meeting  the  requirements  of  any of the Arabian Horse Club
32    Registry of America, Appaloosa Horse Club,  American  Quarter
33    Horse  Association,  United  States  Trotting Association, or
34    Jockey Club, as appropriate, used for purposes of breeding or
                            -6-               LRB9008326KDdvB
 1    racing for prizes.
 2        (22)  Computers and communications equipment utilized for
 3    any hospital purpose and equipment  used  in  the  diagnosis,
 4    analysis,  or  treatment  of hospital patients purchased by a
 5    lessor who leases the equipment, under a lease of one year or
 6    longer executed or in effect at the  time  the  lessor  would
 7    otherwise  be  subject  to  the tax imposed by this Act, to a
 8    hospital  that  has  been  issued  an  active  tax  exemption
 9    identification  number  by the Department under Section 1g of
10    the Retailers' Occupation  Tax  Act.   If  the  equipment  is
11    leased  in  a manner that does not qualify for this exemption
12    or is used in any other non-exempt manner, the  lessor  shall
13    be  liable  for the tax imposed under this Act or the Service
14    Use Tax Act, as the case may be, based  on  the  fair  market
15    value  of  the  property  at  the time the non-qualifying use
16    occurs.  No lessor shall collect or  attempt  to  collect  an
17    amount  (however  designated) that purports to reimburse that
18    lessor for the tax imposed by this Act or the Service Use Tax
19    Act, as the case may be, if the tax has not been paid by  the
20    lessor.  If a lessor improperly collects any such amount from
21    the  lessee,  the  lessee shall have a legal right to claim a
22    refund of that amount from the  lessor.   If,  however,  that
23    amount  is  not  refunded  to  the lessee for any reason, the
24    lessor is liable to pay that amount to the Department.
25        (23)  Personal property purchased by a lessor who  leases
26    the  property,  under a lease of  one year or longer executed
27    or in effect at  the  time  the  lessor  would  otherwise  be
28    subject  to  the  tax  imposed by this Act, to a governmental
29    body that has been  issued  an  active  sales  tax  exemption
30    identification  number  by the Department under Section 1g of
31    the Retailers' Occupation Tax Act. If the property is  leased
32    in  a manner that does not qualify for this exemption or used
33    in any other non-exempt manner, the lessor  shall  be  liable
34    for  the  tax  imposed  under this Act or the Service Use Tax
                            -7-               LRB9008326KDdvB
 1    Act, as the case may be, based on the fair  market  value  of
 2    the  property  at the time the non-qualifying use occurs.  No
 3    lessor shall collect or attempt to collect an amount (however
 4    designated) that purports to reimburse that  lessor  for  the
 5    tax  imposed  by  this Act or the Service Use Tax Act, as the
 6    case may be, if the tax has not been paid by the lessor.   If
 7    a lessor improperly collects any such amount from the lessee,
 8    the lessee shall have a legal right to claim a refund of that
 9    amount  from  the  lessor.   If,  however, that amount is not
10    refunded to the lessee for any reason, the lessor  is  liable
11    to pay that amount to the Department.
12        (24)  Beginning  with  taxable  years  ending on or after
13    December 31, 1995 and ending with taxable years ending on  or
14    before  December  31, 2004, personal property that is donated
15    for disaster relief to  be  used  in  a  State  or  federally
16    declared disaster area in Illinois or bordering Illinois by a
17    manufacturer  or retailer that is registered in this State to
18    a   corporation,   society,   association,   foundation,   or
19    institution that  has  been  issued  a  sales  tax  exemption
20    identification  number by the Department that assists victims
21    of the disaster who reside within the declared disaster area.
22        (25)  Beginning with taxable years  ending  on  or  after
23    December  31, 1995 and ending with taxable years ending on or
24    before December 31, 2004, personal property that is  used  in
25    the  performance  of  infrastructure  repairs  in this State,
26    including but not limited to  municipal  roads  and  streets,
27    access  roads,  bridges,  sidewalks,  waste disposal systems,
28    water and  sewer  line  extensions,  water  distribution  and
29    purification  facilities,  storm water drainage and retention
30    facilities, and sewage treatment facilities, resulting from a
31    State or federally declared disaster in Illinois or bordering
32    Illinois  when  such  repairs  are  initiated  on  facilities
33    located in the declared disaster area within 6  months  after
34    the disaster.
                            -8-               LRB9008326KDdvB
 1    (Source:  P.A.  89-16,  eff.  5-30-95;  89-115,  eff. 1-1-96;
 2    89-349, eff. 8-17-95;  89-495,  eff.  6-24-96;  89-496,  eff.
 3    6-25-96;  89-626,  eff.  8-9-96;  90-14, eff. 7-1-97; 90-552,
 4    eff. 12-12-97.)
 5        Section 10.  The  Service  Use  Tax  Act  is  amended  by
 6    changing Section 3-5 as follows:
 7        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
 8        Sec.  3-5.   Exemptions.   Use  of the following tangible
 9    personal property is exempt from the tax imposed by this Act:
10        (1)  Personal  property  purchased  from  a  corporation,
11    society,    association,    foundation,    institution,    or
12    organization, other than a limited liability company, that is
13    organized and operated as a not-for-profit service enterprise
14    for the benefit of persons 65 years of age or  older  if  the
15    personal property was not purchased by the enterprise for the
16    purpose of resale by the enterprise.
17        (2)  Personal property purchased by a non-profit Illinois
18    county  fair association for use in conducting, operating, or
19    promoting the county fair.
20        (3)  Personal  property  purchased  by  a  not-for-profit
21    music or dramatic  arts  organization  that  establishes,  by
22    proof  required  by  the  Department  by  rule,  that  it has
23    received an exemption under Section 501(c)(3) of the Internal
24    Revenue Code and that  is  organized  and  operated  for  the
25    presentation  of  live  public  performances  of  musical  or
26    theatrical works on a regular basis.
27        (4)  Legal  tender,  currency,  medallions,  or  gold  or
28    silver   coinage   issued  by  the  State  of  Illinois,  the
29    government of the United States of America, or the government
30    of any foreign country, and bullion.
31        (5)  Graphic  arts  machinery  and  equipment,  including
32    repair  and  replacement  parts,  both  new  and  used,   and
                            -9-               LRB9008326KDdvB
 1    including that manufactured on special order or purchased for
 2    lease,  certified  by  the purchaser to be used primarily for
 3    graphic arts production.
 4        (6)  Personal property purchased from a teacher-sponsored
 5    student  organization  affiliated  with  an   elementary   or
 6    secondary school located in Illinois.
 7        (7)  Farm  machinery  and  equipment,  both new and used,
 8    including that manufactured on special  order,  certified  by
 9    the purchaser to be used primarily for production agriculture
10    or   State   or   federal  agricultural  programs,  including
11    individual replacement parts for the machinery and equipment,
12    and including machinery and equipment  purchased  for  lease,
13    and  including  implements  of  husbandry  defined in Section
14    1-130 of  the  Illinois  Vehicle  Code,  farm  machinery  and
15    agricultural  chemical  and  fertilizer  spreaders, and nurse
16    wagons required to be registered under Section 3-809  of  the
17    Illinois  Vehicle  Code,  but  excluding other motor vehicles
18    required to be registered under the  Illinois  Vehicle  Code.
19    Horticultural polyhouses or hoop houses used for propagating,
20    growing,  or  overwintering  plants  shall be considered farm
21    machinery  and  equipment  under  this  item  (7)  paragraph.
22    Agricultural  chemical  tender  tanks  and  dry  boxes  shall
23    include units sold separately from a motor  vehicle  required
24    to  be  licensed  and  units  sold mounted on a motor vehicle
25    required to be licensed if the selling price of the tender is
26    separately stated.
27        Farm machinery  and  equipment  shall  include  precision
28    farming  equipment  that  is  installed  or  purchased  to be
29    installed on farm machinery and equipment including, but  not
30    limited  to,  tractors,  combines,  or  spreaders.  Precision
31    farming  equipment  includes,  but  is  not  limited to, soil
32    testing  sensors,  computers,  monitors,   software,   global
33    positioning and mapping systems, and other such equipment.
34        Farm  machinery  and  equipment  also includes computers,
                            -10-              LRB9008326KDdvB
 1    sensors, software, and related equipment  used  primarily  in
 2    the  computer-assisted  operation  of  production agriculture
 3    facilities,  equipment,  and  activities  such  as,  but  not
 4    limited to, the collection, monitoring,  and  correlation  of
 5    animal  and  crop  data for the purpose of formulating animal
 6    diets and agricultural chemicals.  This item  (7)  is  exempt
 7    from the provisions of Section 3-75.
 8        (8)  Fuel  and  petroleum  products sold to or used by an
 9    air common carrier, certified by the carrier to be  used  for
10    consumption,  shipment,  or  storage  in  the  conduct of its
11    business as an air common carrier, for a flight destined  for
12    or  returning from a location or locations outside the United
13    States without regard  to  previous  or  subsequent  domestic
14    stopovers.
15        (9)  Proceeds  of  mandatory  service  charges separately
16    stated on customers' bills for the purchase  and  consumption
17    of food and beverages acquired as an incident to the purchase
18    of  a  service  from  a  serviceman,  to  the extent that the
19    proceeds of the service charge are in  fact  turned  over  as
20    tips  or  as  a  substitute  for  tips  to  the employees who
21    participate  directly  in  preparing,  serving,  hosting   or
22    cleaning  up  the  food  or beverage function with respect to
23    which the service charge is imposed.
24        (10)  Oil field  exploration,  drilling,  and  production
25    equipment, including (i) rigs and parts of rigs, rotary rigs,
26    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
27    goods, including casing and drill strings,  (iii)  pumps  and
28    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
29    individual  replacement  part  for  oil  field   exploration,
30    drilling,  and  production  equipment, and (vi) machinery and
31    equipment purchased for lease; but excluding  motor  vehicles
32    required to be registered under the Illinois Vehicle Code.
33        (11)  Proceeds from the sale of photoprocessing machinery
34    and  equipment,  including repair and replacement parts, both
                            -11-              LRB9008326KDdvB
 1    new and used, including that manufactured on  special  order,
 2    certified   by   the  purchaser  to  be  used  primarily  for
 3    photoprocessing, and including photoprocessing machinery  and
 4    equipment purchased for lease.
 5        (12)  Coal   exploration,   mining,  offhighway  hauling,
 6    processing, maintenance, and reclamation equipment, including
 7    replacement parts  and  equipment,  and  including  equipment
 8    purchased for lease, but excluding motor vehicles required to
 9    be registered under the Illinois Vehicle Code.
10        (13)  Semen used for artificial insemination of livestock
11    for direct agricultural production.
12        (14)  Horses, or interests in horses, registered with and
13    meeting  the  requirements  of  any of the Arabian Horse Club
14    Registry of America, Appaloosa Horse Club,  American  Quarter
15    Horse  Association,  United  States  Trotting Association, or
16    Jockey Club, as appropriate, used for purposes of breeding or
17    racing for prizes.
18        (15)  Computers and communications equipment utilized for
19    any hospital purpose and equipment  used  in  the  diagnosis,
20    analysis,  or  treatment  of hospital patients purchased by a
21    lessor who leases the equipment, under a lease of one year or
22    longer executed or in effect at the  time  the  lessor  would
23    otherwise  be  subject  to  the tax imposed by this Act, to a
24    hospital  that  has  been  issued  an  active  tax  exemption
25    identification number by the Department under Section  1g  of
26    the Retailers' Occupation Tax Act. If the equipment is leased
27    in  a  manner  that does not qualify for this exemption or is
28    used in any other non-exempt  manner,  the  lessor  shall  be
29    liable for the tax imposed under this Act or the Use Tax Act,
30    as  the  case  may  be, based on the fair market value of the
31    property at the  time  the  non-qualifying  use  occurs.   No
32    lessor shall collect or attempt to collect an amount (however
33    designated)  that  purports  to reimburse that lessor for the
34    tax imposed by this Act or the Use Tax Act, as the  case  may
                            -12-              LRB9008326KDdvB
 1    be,  if the tax has not been paid by the lessor.  If a lessor
 2    improperly collects any such  amount  from  the  lessee,  the
 3    lessee  shall  have  a  legal right to claim a refund of that
 4    amount from the lessor.  If,  however,  that  amount  is  not
 5    refunded  to  the lessee for any reason, the lessor is liable
 6    to pay that amount to the Department.
 7        (16)  Personal property purchased by a lessor who  leases
 8    the property, under a lease of one year or longer executed or
 9    in  effect  at the time the lessor would otherwise be subject
10    to the tax imposed by this Act, to a governmental  body  that
11    has been issued an active tax exemption identification number
12    by   the  Department  under  Section  1g  of  the  Retailers'
13    Occupation Tax Act.  If the property is leased  in  a  manner
14    that  does  not  qualify for this exemption or is used in any
15    other non-exempt manner, the lessor shall be liable  for  the
16    tax  imposed  under  this Act or the Use Tax Act, as the case
17    may be, based on the fair market value of the property at the
18    time the non-qualifying use occurs.  No lessor shall  collect
19    or  attempt  to  collect  an amount (however designated) that
20    purports to reimburse that lessor for the tax imposed by this
21    Act or the Use Tax Act, as the case may be, if  the  tax  has
22    not been paid by the lessor.  If a lessor improperly collects
23    any  such  amount  from  the  lessee, the lessee shall have a
24    legal right to claim a refund of that amount from the lessor.
25    If, however, that amount is not refunded to  the  lessee  for
26    any  reason,  the  lessor is liable to pay that amount to the
27    Department.
28        (17)  Beginning with taxable years  ending  on  or  after
29    December  31, 1995 and ending with taxable years ending on or
30    before December 31, 2004, personal property that  is  donated
31    for  disaster  relief  to  be  used  in  a State or federally
32    declared disaster area in Illinois or bordering Illinois by a
33    manufacturer or retailer that is registered in this State  to
34    a   corporation,   society,   association,   foundation,   or
                            -13-              LRB9008326KDdvB
 1    institution  that  has  been  issued  a  sales  tax exemption
 2    identification number by the Department that assists  victims
 3    of the disaster who reside within the declared disaster area.
 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 used in
 7    the performance of  infrastructure  repairs  in  this  State,
 8    including  but  not  limited  to municipal roads and streets,
 9    access roads, bridges,  sidewalks,  waste  disposal  systems,
10    water  and  sewer  line  extensions,  water  distribution and
11    purification facilities, storm water drainage  and  retention
12    facilities, and sewage treatment facilities, resulting from a
13    State or federally declared disaster in Illinois or bordering
14    Illinois  when  such  repairs  are  initiated  on  facilities
15    located  in  the declared disaster area within 6 months after
16    the disaster.
17    (Source: P.A.  89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;
18    89-349,  eff.  8-17-95;  89-495,  eff.  6-24-96; 89-496, eff.
19    6-25-96; 89-626, eff. 8-9-96;  90-14,  eff.  7-1-97;  90-552,
20    eff. 12-12-97.)
21        Section 15.  The Service Occupation Tax Act is amended by
22    changing Section 3-5 as follows:
23        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
24        Sec.  3-5.   Exemptions.  The following tangible personal
25    property is exempt from the tax imposed by this Act:
26        (1)  Personal property sold by  a  corporation,  society,
27    association,  foundation, institution, or organization, other
28    than a limited  liability  company,  that  is  organized  and
29    operated  as  a  not-for-profit  service  enterprise  for the
30    benefit of persons 65 years of age or older if  the  personal
31    property  was not purchased by the enterprise for the purpose
32    of resale by the enterprise.
                            -14-              LRB9008326KDdvB
 1        (2)  Personal  property  purchased  by  a  not-for-profit
 2    Illinois county  fair  association  for  use  in  conducting,
 3    operating, or promoting the county fair.
 4        (3)  Personal  property  purchased  by any not-for-profit
 5    music or dramatic  arts  organization  that  establishes,  by
 6    proof  required  by  the  Department  by  rule,  that  it has
 7    received  an  exemption   under  Section  501(c)(3)  of   the
 8    Internal  Revenue Code and that is organized and operated for
 9    the presentation of live public performances  of  musical  or
10    theatrical works on a regular basis.
11        (4)  Legal  tender,  currency,  medallions,  or  gold  or
12    silver   coinage   issued  by  the  State  of  Illinois,  the
13    government of the United States of America, or the government
14    of any foreign country, and bullion.
15        (5)  Graphic  arts  machinery  and  equipment,  including
16    repair  and  replacement  parts,  both  new  and  used,   and
17    including that manufactured on special order or purchased for
18    lease,  certified  by  the purchaser to be used primarily for
19    graphic arts production.
20        (6)  Personal  property  sold  by   a   teacher-sponsored
21    student   organization   affiliated  with  an  elementary  or
22    secondary school located in Illinois.
23        (7)  Farm machinery and equipment,  both  new  and  used,
24    including  that  manufactured  on special order, certified by
25    the purchaser to be used primarily for production agriculture
26    or  State  or  federal   agricultural   programs,   including
27    individual replacement parts for the machinery and equipment,
28    and  including  machinery  and equipment purchased for lease,
29    and including implements  of  husbandry  defined  in  Section
30    1-130  of  the  Illinois  Vehicle  Code,  farm  machinery and
31    agricultural chemical and  fertilizer  spreaders,  and  nurse
32    wagons  required  to be registered under Section 3-809 of the
33    Illinois Vehicle Code, but  excluding  other  motor  vehicles
34    required  to  be  registered under the Illinois Vehicle Code.
                            -15-              LRB9008326KDdvB
 1    Horticultural polyhouses or hoop houses used for propagating,
 2    growing, or overwintering plants  shall  be  considered  farm
 3    machinery  and  equipment  under  this  item  (7)  paragraph.
 4    Agricultural  chemical  tender  tanks  and  dry  boxes  shall
 5    include  units  sold separately from a motor vehicle required
 6    to be licensed and units sold  mounted  on  a  motor  vehicle
 7    required to be licensed if the selling price of the tender is
 8    separately stated.
 9        Farm  machinery  and  equipment  shall  include precision
10    farming equipment  that  is  installed  or  purchased  to  be
11    installed  on farm machinery and equipment including, but not
12    limited  to,  tractors,  combines,  or  spreaders.  Precision
13    farming equipment includes,  but  is  not  limited  to,  soil
14    testing   sensors,   computers,  monitors,  software,  global
15    positioning and mapping systems, and other such equipment.
16        Farm machinery and  equipment  also  includes  computers,
17    sensors,  software,  and  related equipment used primarily in
18    the computer-assisted  operation  of  production  agriculture
19    facilities,  equipment,  and  activities  such  as,  but  not
20    limited  to,  the  collection, monitoring, and correlation of
21    animal and crop data for the purpose  of  formulating  animal
22    diets  and  agricultural  chemicals.  This item (7) is exempt
23    from the provisions of Section 3-75.
24        (8)  Fuel and petroleum products sold to or  used  by  an
25    air  common  carrier, certified by the carrier to be used for
26    consumption, shipment, or  storage  in  the  conduct  of  its
27    business  as an air common carrier, for a flight destined for
28    or returning from a location or locations outside the  United
29    States  without  regard  to  previous  or subsequent domestic
30    stopovers.
31        (9)  Proceeds of  mandatory  service  charges  separately
32    stated  on  customers' bills for the purchase and consumption
33    of food and beverages, to the extent that the proceeds of the
34    service charge are in fact  turned  over  as  tips  or  as  a
                            -16-              LRB9008326KDdvB
 1    substitute for tips to the employees who participate directly
 2    in  preparing,  serving,  hosting  or cleaning up the food or
 3    beverage function with respect to which the service charge is
 4    imposed.
 5        (10)  Oil field  exploration,  drilling,  and  production
 6    equipment, including (i) rigs and parts of rigs, rotary rigs,
 7    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
 8    goods, including casing and drill strings,  (iii)  pumps  and
 9    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
10    individual  replacement  part  for  oil  field   exploration,
11    drilling,  and  production  equipment, and (vi) machinery and
12    equipment purchased for lease; but excluding  motor  vehicles
13    required to be registered under the Illinois Vehicle Code.
14        (11)  Photoprocessing  machinery and equipment, including
15    repair and replacement parts, both new  and  used,  including
16    that   manufactured   on  special  order,  certified  by  the
17    purchaser to  be  used  primarily  for  photoprocessing,  and
18    including  photoprocessing  machinery and equipment purchased
19    for lease.
20        (12)  Coal  exploration,  mining,   offhighway   hauling,
21    processing, maintenance, and reclamation equipment, including
22    replacement  parts  and  equipment,  and  including equipment
23    purchased for lease, but excluding motor vehicles required to
24    be registered under the Illinois Vehicle Code.
25        (13)  Food for human consumption that is to  be  consumed
26    off  the  premises  where  it  is  sold (other than alcoholic
27    beverages, soft drinks and food that has  been  prepared  for
28    immediate  consumption) and prescription and non-prescription
29    medicines, drugs,  medical  appliances,  and  insulin,  urine
30    testing  materials,  syringes, and needles used by diabetics,
31    for human use, when purchased for use by a  person  receiving
32    medical assistance under Article 5 of the Illinois Public Aid
33    Code  who  resides  in a licensed long-term care facility, as
34    defined in the Nursing Home Care Act.
                            -17-              LRB9008326KDdvB
 1        (14)  Semen used for artificial insemination of livestock
 2    for direct agricultural production.
 3        (15)  Horses, or interests in horses, registered with and
 4    meeting the requirements of any of  the  Arabian  Horse  Club
 5    Registry  of  America, Appaloosa Horse Club, American Quarter
 6    Horse Association, United  States  Trotting  Association,  or
 7    Jockey Club, as appropriate, used for purposes of breeding or
 8    racing for prizes.
 9        (16)  Computers and communications equipment utilized for
10    any  hospital  purpose  and  equipment used in the diagnosis,
11    analysis, or treatment of hospital patients sold to a  lessor
12    who leases the equipment, under a lease of one year or longer
13    executed  or  in  effect  at  the  time of the purchase, to a
14    hospital  that  has  been  issued  an  active  tax  exemption
15    identification number by the Department under Section  1g  of
16    the Retailers' Occupation Tax Act.
17        (17)  Personal  property  sold to a lessor who leases the
18    property, under a lease of one year or longer executed or  in
19    effect  at  the  time of the purchase, to a governmental body
20    that has been issued an active tax  exemption  identification
21    number  by  the Department under Section 1g of the Retailers'
22    Occupation Tax Act.
23        (18)  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
26    for  disaster  relief  to  be  used  in  a State or federally
27    declared disaster area in Illinois or bordering Illinois by a
28    manufacturer or retailer that is registered in this State  to
29    a   corporation,   society,   association,   foundation,   or
30    institution  that  has  been  issued  a  sales  tax exemption
31    identification number by the Department that assists  victims
32    of the disaster who reside within the declared disaster area.
33        (19)  Beginning  with  taxable  years  ending on or after
34    December 31, 1995 and ending with taxable years ending on  or
                            -18-              LRB9008326KDdvB
 1    before  December  31, 2004, personal property that is used in
 2    the performance of  infrastructure  repairs  in  this  State,
 3    including  but  not  limited  to municipal roads and streets,
 4    access roads, bridges,  sidewalks,  waste  disposal  systems,
 5    water  and  sewer  line  extensions,  water  distribution and
 6    purification facilities, storm water drainage  and  retention
 7    facilities, and sewage treatment facilities, resulting from a
 8    State or federally declared disaster in Illinois or bordering
 9    Illinois  when  such  repairs  are  initiated  on  facilities
10    located  in  the declared disaster area within 6 months after
11    the disaster.
12    (Source: P.A.  89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;
13    89-349, eff. 8-17-95;  89-495,  eff.  6-24-96;  89-496,  eff.
14    6-25-96;  89-626,  eff.  8-9-96;  90-14, eff. 7-1-97; 90-552,
15    eff. 12-12-97.)
16        Section 20.  The Retailers' Occupation Tax Act is amended
17    by changing Section 2-5 as follows:
18        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
19        (Text of Section before amendment by P.A. 90-519)
20        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
21    the sale of the  following  tangible  personal  property  are
22    exempt from the tax imposed by this Act:
23        (1)  Farm chemicals.
24        (2)  Farm  machinery  and  equipment,  both new and used,
25    including that manufactured on special  order,  certified  by
26    the purchaser to be used primarily for production agriculture
27    or   State   or   federal  agricultural  programs,  including
28    individual replacement parts for the machinery and equipment,
29    and including machinery and equipment  purchased  for  lease,
30    and  including  implements  of  husbandry  defined in Section
31    1-130 of  the  Illinois  Vehicle  Code,  farm  machinery  and
32    agricultural  chemical  and  fertilizer  spreaders, and nurse
                            -19-              LRB9008326KDdvB
 1    wagons required to be registered under Section 3-809  of  the
 2    Illinois  Vehicle  Code,  but  excluding other motor vehicles
 3    required to be registered under the  Illinois  Vehicle  Code.
 4    Horticultural polyhouses or hoop houses used for propagating,
 5    growing,  or  overwintering  plants  shall be considered farm
 6    machinery  and  equipment  under  this  item  (2)  paragraph.
 7    Agricultural  chemical  tender  tanks  and  dry  boxes  shall
 8    include units sold separately from a motor  vehicle  required
 9    to  be  licensed  and  units  sold mounted on a motor vehicle
10    required to be licensed if the selling price of the tender is
11    separately stated.
12        Farm machinery  and  equipment  shall  include  precision
13    farming  equipment  that  is  installed  or  purchased  to be
14    installed on farm machinery and equipment including, but  not
15    limited  to,  tractors,  combines,  or  spreaders.  Precision
16    farming  equipment  includes,  but  is  not  limited to, soil
17    testing  sensors,  computers,  monitors,   software,   global
18    positioning and mapping systems, and other such equipment.
19        Farm  machinery  and  equipment  also includes computers,
20    sensors, software, and related equipment  used  primarily  in
21    the  computer-assisted  operation  of  production agriculture
22    facilities,  equipment,  and  activities  such  as,  but  not
23    limited to, the collection, monitoring,  and  correlation  of
24    animal  and  crop  data for the purpose of formulating animal
25    diets and agricultural chemicals.  This item  (7)  is  exempt
26    from the provisions of Section 3-75.
27        (3)  Distillation machinery and equipment, sold as a unit
28    or  kit, assembled or installed by the retailer, certified by
29    the user to be used only for the production of ethyl  alcohol
30    that  will  be  used  for  consumption  as motor fuel or as a
31    component of motor fuel for the personal use of the user, and
32    not subject to sale or resale.
33        (4)  Graphic  arts  machinery  and  equipment,  including
34    repair  and  replacement  parts,  both  new  and  used,   and
                            -20-              LRB9008326KDdvB
 1    including that manufactured on special order or purchased for
 2    lease,  certified  by  the purchaser to be used primarily for
 3    graphic arts production.
 4        (5)  A motor vehicle  of  the  first  division,  a  motor
 5    vehicle of the second division that is a self-contained motor
 6    vehicle  designed  or permanently converted to provide living
 7    quarters for  recreational,  camping,  or  travel  use,  with
 8    direct  walk  through  access to the living quarters from the
 9    driver's seat, or a motor vehicle of the second division that
10    is of the van configuration designed for  the  transportation
11    of not less than 7 nor more than 16 passengers, as defined in
12    Section  1-146 of the Illinois Vehicle Code, that is used for
13    automobile renting, as  defined  in  the  Automobile  Renting
14    Occupation and Use Tax Act.
15        (6)  Personal   property   sold  by  a  teacher-sponsored
16    student  organization  affiliated  with  an   elementary   or
17    secondary school located in Illinois.
18        (7)  Proceeds  of  that portion of the selling price of a
19    passenger car the sale of which is subject to the Replacement
20    Vehicle Tax.
21        (8)  Personal property sold to an  Illinois  county  fair
22    association  for  use  in conducting, operating, or promoting
23    the county fair.
24        (9)  Personal property sold to a not-for-profit music  or
25    dramatic   arts   organization  that  establishes,  by  proof
26    required by the Department by rule, that it has  received  an
27    exemption  under  Section  501(c) (3) of the Internal Revenue
28    Code and that is organized and operated for the  presentation
29    of live public performances of musical or theatrical works on
30    a regular basis.
31        (10)  Personal  property  sold by a corporation, society,
32    association, foundation, institution, or organization,  other
33    than  a  limited  liability  company,  that  is organized and
34    operated as  a  not-for-profit  service  enterprise  for  the
                            -21-              LRB9008326KDdvB
 1    benefit  of  persons 65 years of age or older if the personal
 2    property was not purchased by the enterprise for the  purpose
 3    of resale 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
 9    organization that has no compensated  officers  or  employees
10    and   that  is  organized  and  operated  primarily  for  the
11    recreation of persons 55 years of age  or  older.  A  limited
12    liability  company  may  qualify for the exemption under this
13    paragraph only if the limited liability company is  organized
14    and  operated  exclusively  for  educational purposes. On and
15    after July 1, 1987, however, no entity otherwise eligible for
16    this exemption shall make tax-free purchases unless it has an
17    active identification number issued by the Department.
18        (12)  Personal property sold to interstate  carriers  for
19    hire  for  use as rolling stock moving in interstate commerce
20    or to lessors under leases of one year or longer executed  or
21    in  effect at the time of purchase by interstate carriers for
22    hire for use as rolling stock moving in  interstate  commerce
23    and  equipment  operated  by  a  telecommunications provider,
24    licensed as a common carrier by  the  Federal  Communications
25    Commission,  which  is permanently installed in or affixed to
26    aircraft moving in interstate commerce.
27        (13)  Proceeds from sales to owners, lessors, or shippers
28    of tangible personal property that is utilized by  interstate
29    carriers  for  hire  for  use  as  rolling  stock  moving  in
30    interstate    commerce    and   equipment   operated   by   a
31    telecommunications provider, licensed as a common carrier  by
32    the  Federal  Communications Commission, which is permanently
33    installed in or affixed  to  aircraft  moving  in  interstate
34    commerce.
                            -22-              LRB9008326KDdvB
 1        (14)  Machinery  and  equipment  that will be used by the
 2    purchaser, or a lessee of the  purchaser,  primarily  in  the
 3    process  of  manufacturing  or  assembling  tangible personal
 4    property for wholesale or retail sale or lease,  whether  the
 5    sale or lease is made directly by the manufacturer or by some
 6    other  person,  whether the materials used in the process are
 7    owned by the manufacturer or some other  person,  or  whether
 8    the sale or lease is made apart from or as an incident to the
 9    seller's  engaging  in  the  service  occupation of producing
10    machines, tools,  dies,  jigs,  patterns,  gauges,  or  other
11    similar  items  of no commercial value on special order for a
12    particular purchaser.
13        (15)  Proceeds of mandatory  service  charges  separately
14    stated  on  customers'  bills for purchase and consumption of
15    food and beverages, to the extent that the  proceeds  of  the
16    service  charge  are  in  fact  turned  over  as tips or as a
17    substitute for tips to the employees who participate directly
18    in preparing, serving, hosting or cleaning  up  the  food  or
19    beverage function with respect to which the service charge is
20    imposed.
21        (16)  Petroleum  products  sold  to  a  purchaser  if the
22    seller is prohibited by federal law from charging tax to  the
23    purchaser.
24        (17)  Tangible personal property sold to a common carrier
25    by rail or motor that receives the physical possession of the
26    property  in  Illinois  and  that transports the property, or
27    shares with another common carrier in the  transportation  of
28    the  property,  out of Illinois on a standard uniform bill of
29    lading showing the seller of the property as the  shipper  or
30    consignor  of the property to a destination outside Illinois,
31    for use outside Illinois.
32        (18)  Legal tender,  currency,  medallions,  or  gold  or
33    silver   coinage   issued  by  the  State  of  Illinois,  the
34    government of the United States of America, or the government
                            -23-              LRB9008326KDdvB
 1    of any foreign country, and bullion.
 2        (19)  Oil field  exploration,  drilling,  and  production
 3    equipment, including (i) rigs and parts of rigs, rotary rigs,
 4    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
 5    goods, including casing and drill strings,  (iii)  pumps  and
 6    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
 7    individual  replacement  part  for  oil  field   exploration,
 8    drilling,  and  production  equipment, and (vi) machinery and
 9    equipment purchased for lease; but excluding  motor  vehicles
10    required to be registered under the Illinois Vehicle Code.
11        (20)  Photoprocessing  machinery and equipment, including
12    repair and replacement parts, both new  and  used,  including
13    that   manufactured   on  special  order,  certified  by  the
14    purchaser to  be  used  primarily  for  photoprocessing,  and
15    including  photoprocessing  machinery and equipment purchased
16    for lease.
17        (21)  Coal  exploration,  mining,   offhighway   hauling,
18    processing, maintenance, and reclamation equipment, including
19    replacement  parts  and  equipment,  and  including equipment
20    purchased for lease, but excluding motor vehicles required to
21    be registered under the Illinois Vehicle Code.
22        (22)  Fuel and petroleum products sold to or used  by  an
23    air  carrier,  certified  by  the  carrier  to  be  used  for
24    consumption,  shipment,  or  storage  in  the  conduct of its
25    business as an air common carrier, for a flight destined  for
26    or  returning from a location or locations outside the United
27    States without regard  to  previous  or  subsequent  domestic
28    stopovers.
29        (23)  A  transaction  in  which  the  purchase  order  is
30    received  by  a  florist who is located outside Illinois, but
31    who has a florist located in Illinois deliver the property to
32    the purchaser or the purchaser's donee in Illinois.
33        (24)  Fuel consumed or used in the  operation  of  ships,
34    barges,  or  vessels  that  are  used primarily in or for the
                            -24-              LRB9008326KDdvB
 1    transportation of property or the conveyance of  persons  for
 2    hire  on  rivers  bordering  on  this  State  if  the fuel is
 3    delivered by the seller to the purchaser's  barge,  ship,  or
 4    vessel while it is afloat upon that bordering river.
 5        (25)  A motor vehicle sold in this State to a nonresident
 6    even though the motor vehicle is delivered to the nonresident
 7    in  this  State,  if the motor vehicle is not to be titled in
 8    this State, and if a driveaway decal permit is issued to  the
 9    motor  vehicle  as  provided in Section 3-603 of the Illinois
10    Vehicle Code or if  the  nonresident  purchaser  has  vehicle
11    registration  plates  to  transfer  to the motor vehicle upon
12    returning to his or her home  state.   The  issuance  of  the
13    driveaway   decal   permit   or   having   the   out-of-state
14    registration plates to be transferred is prima facie evidence
15    that the motor vehicle will not be titled in this State.
16        (26)  Semen used for artificial insemination of livestock
17    for direct agricultural production.
18        (27)  Horses, or interests in horses, registered with and
19    meeting  the  requirements  of  any of the Arabian Horse Club
20    Registry of America, Appaloosa Horse Club,  American  Quarter
21    Horse  Association,  United  States  Trotting Association, or
22    Jockey Club, as appropriate, used for purposes of breeding or
23    racing for prizes.
24        (28)   Computers and  communications  equipment  utilized
25    for any hospital purpose and equipment used in the diagnosis,
26    analysis,  or treatment of hospital patients sold to a lessor
27    who leases the equipment, under a lease of one year or longer
28    executed or in effect at the  time  of  the  purchase,  to  a
29    hospital  that  has  been  issued  an  active  tax  exemption
30    identification  number  by the Department under Section 1g of
31    this Act.
32        (29)   Personal property sold to a lessor who leases  the
33    property,  under a lease of one year or longer executed or in
34    effect at the time of the purchase, to  a  governmental  body
                            -25-              LRB9008326KDdvB
 1    that  has  been issued an active tax exemption identification
 2    number by the Department under Section 1g of this Act.
 3        (30)   Beginning with taxable years ending  on  or  after
 4    December  31, 1995 and ending with taxable years ending on or
 5    before December 31, 2004, personal property that  is  donated
 6    for  disaster  relief  to  be  used  in  a State or federally
 7    declared disaster area in Illinois or bordering Illinois by a
 8    manufacturer or retailer that is registered in this State  to
 9    a   corporation,   society,   association,   foundation,   or
10    institution  that  has  been  issued  a  sales  tax exemption
11    identification number by the Department that assists  victims
12    of the disaster who reside within the declared disaster area.
13        (31)   Beginning  with  taxable  years ending on or after
14    December 31, 1995 and ending with taxable years ending on  or
15    before  December  31, 2004, personal property that is used in
16    the performance of  infrastructure  repairs  in  this  State,
17    including  but  not  limited  to municipal roads and streets,
18    access roads, bridges,  sidewalks,  waste  disposal  systems,
19    water  and  sewer  line  extensions,  water  distribution and
20    purification facilities, storm water drainage  and  retention
21    facilities, and sewage treatment facilities, resulting from a
22    State or federally declared disaster in Illinois or bordering
23    Illinois  when  such  repairs  are  initiated  on  facilities
24    located  in  the declared disaster area within 6 months after
25    the disaster.
26    (Source: P.A.  89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;
27    89-349, eff. 8-17-95;  89-495,  eff.  6-24-96;  89-496,  eff.
28    6-25-96;  89-626,  eff.  8-9-96;  90-14, eff. 7-1-97; 90-552,
29    eff. 12-12-97.)
30        (Text of Section after amendment by P.A. 90-519)
31        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
32    the sale of the  following  tangible  personal  property  are
33    exempt from the tax imposed by this Act:
34        (1)  Farm chemicals.
                            -26-              LRB9008326KDdvB
 1        (2)  Farm  machinery  and  equipment,  both new and used,
 2    including that manufactured on special  order,  certified  by
 3    the purchaser to be used primarily for production agriculture
 4    or   State   or   federal  agricultural  programs,  including
 5    individual replacement parts for the machinery and equipment,
 6    and including machinery and equipment  purchased  for  lease,
 7    and  including  implements  of  husbandry  defined in Section
 8    1-130 of  the  Illinois  Vehicle  Code,  farm  machinery  and
 9    agricultural  chemical  and  fertilizer  spreaders, and nurse
10    wagons required to be registered under Section 3-809  of  the
11    Illinois  Vehicle  Code,  but  excluding other motor vehicles
12    required to be registered under the  Illinois  Vehicle  Code.
13    Horticultural polyhouses or hoop houses used for propagating,
14    growing,  or  overwintering  plants  shall be considered farm
15    machinery  and  equipment  under  this  item  (2)  paragraph.
16    Agricultural  chemical  tender  tanks  and  dry  boxes  shall
17    include units sold separately from a motor  vehicle  required
18    to  be  licensed  and  units  sold mounted on a motor vehicle
19    required to be licensed, if the selling price of  the  tender
20    is separately stated.
21        Farm  machinery  and  equipment  shall  include precision
22    farming equipment  that  is  installed  or  purchased  to  be
23    installed  on farm machinery and equipment including, but not
24    limited  to,  tractors,  combines,  or  spreaders.  Precision
25    farming equipment includes,  but  is  not  limited  to,  soil
26    testing   sensors,   computers,  monitors,  software,  global
27    positioning and mapping systems, and other such equipment.
28        Farm machinery and  equipment  also  includes  computers,
29    sensors,  software,  and  related equipment used primarily in
30    the computer-assisted  operation  of  production  agriculture
31    facilities,  equipment,  and  activities  such  as,  but  not
32    limited  to,  the  collection, monitoring, and correlation of
33    animal and crop data for the purpose  of  formulating  animal
34    diets  and  agricultural  chemicals.  This item (7) is exempt
                            -27-              LRB9008326KDdvB
 1    from the provisions of Section 3-75.
 2        (3)  Distillation machinery and equipment, sold as a unit
 3    or kit, assembled or installed by the retailer, certified  by
 4    the  user to be used only for the production of ethyl alcohol
 5    that will be used for consumption  as  motor  fuel  or  as  a
 6    component of motor fuel for the personal use of the user, and
 7    not subject to sale or resale.
 8        (4)  Graphic  arts  machinery  and  equipment,  including
 9    repair   and  replacement  parts,  both  new  and  used,  and
10    including that manufactured on special order or purchased for
11    lease, certified by the purchaser to be  used  primarily  for
12    graphic arts production.
13        (5)  A  motor  vehicle  of  the  first  division, a motor
14    vehicle of the second division that is a self-contained motor
15    vehicle designed or permanently converted to  provide  living
16    quarters  for  recreational,  camping,  or  travel  use, with
17    direct walk through access to the living  quarters  from  the
18    driver's seat, or a motor vehicle of the second division that
19    is  of  the van configuration designed for the transportation
20    of not less than 7 nor more than 16 passengers, as defined in
21    Section 1-146 of the Illinois Vehicle Code, that is used  for
22    automobile  renting,  as  defined  in  the Automobile Renting
23    Occupation and Use Tax Act.
24        (6)  Personal  property  sold  by   a   teacher-sponsored
25    student   organization   affiliated  with  an  elementary  or
26    secondary school located in Illinois.
27        (7)  Proceeds of that portion of the selling price  of  a
28    passenger car the sale of which is subject to the Replacement
29    Vehicle Tax.
30        (8)  Personal  property  sold  to an Illinois county fair
31    association for use in conducting,  operating,  or  promoting
32    the county fair.
33        (9)  Personal  property sold to a not-for-profit music or
34    dramatic  arts  organization  that  establishes,   by   proof
                            -28-              LRB9008326KDdvB
 1    required  by  the Department by rule, that it has received an
 2    exemption under Section 501(c) (3) of  the  Internal  Revenue
 3    Code  and that is organized and operated for the presentation
 4    of live public performances of musical or theatrical works on
 5    a regular basis.
 6        (10)  Personal property sold by a  corporation,  society,
 7    association,  foundation, institution, or organization, other
 8    than a limited  liability  company,  that  is  organized  and
 9    operated  as  a  not-for-profit  service  enterprise  for the
10    benefit of persons 65 years of age or older if  the  personal
11    property  was not purchased by the enterprise for the purpose
12    of resale by the enterprise.
13        (11)  Personal property sold to a governmental body, to a
14    corporation, society, association, foundation, or institution
15    organized and operated exclusively for charitable, religious,
16    or educational purposes, or to a not-for-profit  corporation,
17    society,    association,    foundation,    institution,    or
18    organization  that  has  no compensated officers or employees
19    and  that  is  organized  and  operated  primarily  for   the
20    recreation  of  persons  55  years of age or older. A limited
21    liability company may qualify for the  exemption  under  this
22    paragraph  only if the limited liability company is organized
23    and operated exclusively for  educational  purposes.  On  and
24    after July 1, 1987, however, no entity otherwise eligible for
25    this exemption shall make tax-free purchases unless it has an
26    active identification number issued by the Department.
27        (12)  Personal  property  sold to interstate carriers for
28    hire for use as rolling stock moving in  interstate  commerce
29    or  to lessors under leases of one year or longer executed or
30    in effect at the time of purchase by interstate carriers  for
31    hire  for  use as rolling stock moving in interstate commerce
32    and equipment  operated  by  a  telecommunications  provider,
33    licensed  as  a  common carrier by the Federal Communications
34    Commission, which is permanently installed in or  affixed  to
                            -29-              LRB9008326KDdvB
 1    aircraft moving in interstate commerce.
 2        (13)  Proceeds from sales to owners, lessors, or shippers
 3    of  tangible personal property that is utilized by interstate
 4    carriers  for  hire  for  use  as  rolling  stock  moving  in
 5    interstate   commerce   and   equipment   operated    by    a
 6    telecommunications  provider, licensed as a common carrier by
 7    the Federal Communications Commission, which  is  permanently
 8    installed  in  or  affixed  to  aircraft moving in interstate
 9    commerce.
10        (14)  Machinery and equipment that will be  used  by  the
11    purchaser,  or  a  lessee  of the purchaser, primarily in the
12    process of  manufacturing  or  assembling  tangible  personal
13    property  for  wholesale or retail sale or lease, whether the
14    sale or lease is made directly by the manufacturer or by some
15    other person, whether the materials used in the  process  are
16    owned  by  the  manufacturer or some other person, or whether
17    the sale or lease is made apart from or as an incident to the
18    seller's engaging in  the  service  occupation  of  producing
19    machines,  tools,  dies,  jigs,  patterns,  gauges,  or other
20    similar items of no commercial value on special order  for  a
21    particular purchaser.
22        (15)  Proceeds  of  mandatory  service charges separately
23    stated on customers' bills for purchase  and  consumption  of
24    food  and  beverages,  to the extent that the proceeds of the
25    service charge are in fact  turned  over  as  tips  or  as  a
26    substitute for tips to the employees who participate directly
27    in  preparing,  serving,  hosting  or cleaning up the food or
28    beverage function with respect to which the service charge is
29    imposed.
30        (16)  Petroleum products  sold  to  a  purchaser  if  the
31    seller  is prohibited by federal law from charging tax to the
32    purchaser.
33        (17)  Tangible personal property sold to a common carrier
34    by rail or motor that receives the physical possession of the
                            -30-              LRB9008326KDdvB
 1    property in Illinois and that  transports  the  property,  or
 2    shares  with  another common carrier in the transportation of
 3    the property, out of Illinois on a standard uniform  bill  of
 4    lading  showing  the seller of the property as the shipper or
 5    consignor of the property to a destination outside  Illinois,
 6    for use outside Illinois.
 7        (18)  Legal  tender,  currency,  medallions,  or  gold or
 8    silver  coinage  issued  by  the  State  of   Illinois,   the
 9    government of the United States of America, or the government
10    of any foreign country, and bullion.
11        (19)  Oil  field  exploration,  drilling,  and production
12    equipment, including (i) rigs and parts of rigs, rotary rigs,
13    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
14    goods,  including  casing  and drill strings, (iii) pumps and
15    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
16    individual   replacement  part  for  oil  field  exploration,
17    drilling, and production equipment, and  (vi)  machinery  and
18    equipment  purchased  for lease; but excluding motor vehicles
19    required to be registered under the Illinois Vehicle Code.
20        (20)  Photoprocessing machinery and equipment,  including
21    repair  and  replacement  parts, both new and used, including
22    that  manufactured  on  special  order,  certified   by   the
23    purchaser  to  be  used  primarily  for  photoprocessing, and
24    including photoprocessing machinery and  equipment  purchased
25    for lease.
26        (21)  Coal   exploration,   mining,  offhighway  hauling,
27    processing, maintenance, and reclamation equipment, including
28    replacement parts  and  equipment,  and  including  equipment
29    purchased for lease, but excluding motor vehicles required to
30    be registered under the Illinois Vehicle Code.
31        (22)  Fuel  and  petroleum products sold to or used by an
32    air  carrier,  certified  by  the  carrier  to  be  used  for
33    consumption, shipment, or  storage  in  the  conduct  of  its
34    business  as an air common carrier, for a flight destined for
                            -31-              LRB9008326KDdvB
 1    or returning from a location or locations outside the  United
 2    States  without  regard  to  previous  or subsequent domestic
 3    stopovers.
 4        (23)  A  transaction  in  which  the  purchase  order  is
 5    received by a florist who is located  outside  Illinois,  but
 6    who has a florist located in Illinois deliver the property to
 7    the purchaser or the purchaser's donee in Illinois.
 8        (24)  Fuel  consumed  or  used in the operation of ships,
 9    barges, or vessels that are used  primarily  in  or  for  the
10    transportation  of  property or the conveyance of persons for
11    hire on rivers  bordering  on  this  State  if  the  fuel  is
12    delivered  by  the  seller to the purchaser's barge, ship, or
13    vessel while it is afloat upon that bordering river.
14        (25)  A motor vehicle sold in this State to a nonresident
15    even though the motor vehicle is delivered to the nonresident
16    in this State, if the motor vehicle is not to  be  titled  in
17    this  State, and if a driveaway decal permit is issued to the
18    motor vehicle as provided in Section 3-603  of  the  Illinois
19    Vehicle  Code  or  if  the  nonresident purchaser has vehicle
20    registration plates to transfer to  the  motor  vehicle  upon
21    returning  to  his  or  her  home state.  The issuance of the
22    driveaway   decal   permit   or   having   the   out-of-state
23    registration plates to be transferred is prima facie evidence
24    that the motor vehicle will not be titled in this State.
25        (26)  Semen used for artificial insemination of livestock
26    for direct agricultural production.
27        (27)  Horses, or interests in horses, registered with and
28    meeting the requirements of any of  the  Arabian  Horse  Club
29    Registry  of  America, Appaloosa Horse Club, American Quarter
30    Horse Association, United  States  Trotting  Association,  or
31    Jockey Club, as appropriate, used for purposes of breeding or
32    racing for prizes.
33        (28)   Computers  and  communications  equipment utilized
34    for any hospital purpose and equipment used in the diagnosis,
                            -32-              LRB9008326KDdvB
 1    analysis, or treatment of hospital patients sold to a  lessor
 2    who leases the equipment, under a lease of one year or longer
 3    executed  or  in  effect  at  the  time of the purchase, to a
 4    hospital  that  has  been  issued  an  active  tax  exemption
 5    identification number by the Department under Section  1g  of
 6    this Act.
 7        (29)   Personal  property sold to a lessor who leases the
 8    property, under a lease of one year or longer executed or  in
 9    effect  at  the  time of the purchase, to a governmental body
10    that has been issued an active tax  exemption  identification
11    number by the Department under Section 1g of this Act.
12        (30)   Beginning  with  taxable  years ending on or after
13    December 31, 1995 and ending with taxable years ending on  or
14    before  December  31, 2004, personal property that is donated
15    for disaster relief to  be  used  in  a  State  or  federally
16    declared disaster area in Illinois or bordering Illinois by a
17    manufacturer  or retailer that is registered in this State to
18    a   corporation,   society,   association,   foundation,   or
19    institution that  has  been  issued  a  sales  tax  exemption
20    identification  number by the Department that assists victims
21    of the disaster who reside within the declared disaster area.
22        (31)   Beginning with taxable years ending  on  or  after
23    December  31, 1995 and ending with taxable years ending on or
24    before December 31, 2004, personal property that is  used  in
25    the  performance  of  infrastructure  repairs  in this State,
26    including but not limited to  municipal  roads  and  streets,
27    access  roads,  bridges,  sidewalks,  waste disposal systems,
28    water and  sewer  line  extensions,  water  distribution  and
29    purification  facilities,  storm water drainage and retention
30    facilities, and sewage treatment facilities, resulting from a
31    State or federally declared disaster in Illinois or bordering
32    Illinois  when  such  repairs  are  initiated  on  facilities
33    located in the declared disaster area within 6  months  after
34    the disaster.
                            -33-              LRB9008326KDdvB
 1    (Source: P.A.  89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;
 2    89-349,  eff.  8-17-95;  89-495,  eff.  6-24-96; 89-496, eff.
 3    6-25-96; 89-626, eff. 8-9-96;  90-14,  eff.  7-1-97;  90-519,
 4    eff. 6-1-98; 90-552, eff. 12-12-97.)
 5        Section  95.   No  acceleration or delay.  Where this Act
 6    makes changes in a statute that is represented in this Act by
 7    text that is not yet or no longer in effect (for  example,  a
 8    Section  represented  by  multiple versions), the use of that
 9    text does not accelerate or delay the taking  effect  of  (i)
10    the  changes made by this Act or (ii) provisions derived from
11    any other Public Act.
12        Section 99.  Effective date.  This Act takes effect  upon
13    becoming law.

[ Top ]