[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] |
91_SB0144enr SB144 Enrolled LRB9101598PTpk 1 AN ACT in relation to taxation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. Short title. This Act may be cited as the 5 Governmental Tax Reform Validation Act. 6 Section 10. Re-enactment; findings; purpose; validation. 7 (a) The General Assembly finds and declares that: 8 (1) The amendatory provisions of this Act were 9 first enacted by Public Act 85-1135 and all related to 10 taxation. 11 (A) Article I of Public Act 85-1135, effective 12 July 28, 1988, contained provisions stating 13 legislative intent. 14 (B) Article II of Public Act 85-1135, 15 effective January 1, 1990, contained provisions 16 amending or creating Sections 8-11-1, 8-11-1.1, 17 8-11-1.2, 8-11-1.3, 8-11-1.4, 8-11-5, 8-11-6, 18 8-11-6a, 8-11-16, and 11-74.4-8a of the Illinois 19 Municipal Code; Sections 24a-1, 24a-2, 24a-3, 24a-4, 20 and 25.05 of "An Act to revise the law in relation 21 to counties"; Section 4 of the Water Commission Act 22 of 1985; Section 5.01 of the Local Mass Transit 23 District Act; Sections 4.01, 4.03, 4.04, and 4.09 of 24 the Regional Transportation Authority Act; Sections 25 3, 9, and 10b of the Use Tax Act; Sections 2, 3, 3d, 26 7a, 9, 10, 10b, and 15 of the Service Use Tax Act; 27 Sections 2, 3, 9, 13, 15, and 20.1 of the Service 28 Occupation Tax Act; Sections 2, 3, 5k, and 6d of the 29 Retailers' Occupation Tax Act; and Sections 5.240, 30 5.241, 6z-16, and 6z-17 of the State Finance Act. 31 Article II of Public Act 85-1135, effective January SB144 Enrolled -2- LRB9101598PTpk 1 1, 1990, also contained provisions repealing 2 Sections 25.05a, 25.05-2, 25.05-2a, 25.05-3, 3 25.05-3a, 25.05-10, 25.05-10a, and 25.05-10.1 of "An 4 Act to revise the law in relation to counties" and 5 Sections 10 and 14 of the Service Occupation Tax 6 Act. 7 (C) Article III of Public Act 85-1135, 8 effective September 1, 1988, contained provisions 9 further amending Sections 3 and 9 of the Use Tax 10 Act; Sections 2, 3, and 9 of the Service Use Tax 11 Act; Sections 2, 3, and 9 of the Service Occupation 12 Tax Act; and Sections 2 and 3 of the Retailers' 13 Occupation Tax Act; and amending Section 2 of the 14 State Revenue Sharing Act. 15 (D) Article IV of Public Act 85-1135, 16 effective July 28, 1988, contained provisions 17 amending Section 6z-9 of the State Finance Act and 18 creating Section .01 of the State Revenue Sharing 19 Act. 20 (E) Article V of Public Act 85-1135, effective 21 July 28, 1988, contained provisions precluding any 22 effect on a pre-existing right, remedy, or liability 23 and authorizing enactment of home rule municipality 24 ordinances. 25 (2) Public Act 85-1135 also contained provisions 26 relating to State bonds and creating the Water Pollution 27 Control Revolving Fund loan program. 28 (3) On August 26, 1998, the Cook County Circuit 29 Court entered an order in the case of Oak Park Arms 30 Associates v. Whitley (No. 92 L 51045), in which it found 31 that Public Act 85-1135 violates the single subject 32 clause of the Illinois Constitution (Article IV, Section 33 8(d)). As of the time this Act was prepared, the order 34 declaring P.A. 85-1135 invalid has been vacated but the SB144 Enrolled -3- LRB9101598PTpk 1 case is subject to appeal. 2 (4) The tax provisions of Public Act 85-1135 affect 3 many areas of vital concern to the people of this State. 4 The disruption of the tax reform contained in those 5 provisions could constitute a grave threat to the 6 continued health, safety, and welfare of the people of 7 this State. 8 (b) It is the purpose of this Act to prevent or minimize 9 any problems relating to taxation that may result from 10 challenges to the constitutional validity of Public Act 11 85-1135, by (1) re-enacting provisions from Public Act 12 85-1135 and (2) validating all actions taken in reliance on 13 those provisions from Public Act 85-1135. 14 (c) Because Public Act 86-962, effective January 1, 15 1990, renumbered Sections 24a-1, 24a-2, 24a-3, 24a-4, and 16 25.05 of the Counties Code, this Act contains those 17 provisions as renumbered under Sections 5-1006, 5-1007, 18 5-1008, 5-1009, and 5-1024 of the Counties Code. Because 19 Public Act 86-1475, effective January 10, 1991, resectioned 20 Section 3 of the Use Tax Act, Section 3 of the Service Use 21 Tax Act, Section 3 of the Service Occupation Tax Act, and 22 Section 2 of the Retailers' Occupation Tax Act, this Act 23 contains those provisions as resectioned under Sections 3, 24 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50, 25 3-55, 3-60, 3-65, 3-70, 3-75, and 3-80 of the Use Tax Act; 26 Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 27 3-45, 3-50, 3-55, 3-60, and 3-65 of the Service Use Tax Act; 28 Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 29 3-45, and 3-50 of the Service Occupation Tax Act; and 30 Sections 2, 2-5, 2-10, 2-15, 2-20, 2-25, 2-30, 2-35, 2-40, 31 2-45, 2-50, 2-55, 2-60, 2-65 of the Retailers' Occupation Tax 32 Act. Because Public Act 85-1440, effective February 1, 1989, 33 renumbered Section 6z-16 of the State Finance Act and Section 34 .01 of the State Revenue Sharing Act, this Act contains those SB144 Enrolled -4- LRB9101598PTpk 1 provisions as renumbered under Section 6z-18 of the State 2 Finance Act and Section 0.1 of the State Revenue Sharing Act. 3 Sections 10b of the Use Tax Act, 10b of the Service Use Tax 4 Act, 20.1 of the Service Occupation Tax Act, and 6d of the 5 Retailers' Occupation Tax Act have been omitted from this Act 6 because they were repealed by Public Act 87-1258, effective 7 January 7, 1993. 8 (d) This Act re-enacts Section 1 of Article I of Public 9 Act 85-1135; Sections 8-11-1, 8-11-1.1, 8-11-1.2, 8-11-1.3, 10 8-11-1.4, 8-11-5, 8-11-6, 8-11-6a, 8-11-16, and 11-74.4-8a of 11 the Illinois Municipal Code; Sections 5-1006, 5-1007, 5-1008, 12 5-1009, and 5-1024 of the Counties Code; Section 4 of the 13 Water Commission Act of 1985; Section 5.01 of the Local Mass 14 Transit District Act; Sections 4.01, 4.03, 4.04, and 4.09 of 15 the Regional Transportation Authority Act; Sections 3, 3-5, 16 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50, 3-55, 17 3-60, 3-65, 3-70, 3-75, 3-80, 9, and 10b of the Use Tax Act; 18 Sections 2, 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 19 3-45, 3-50, 3-55, 3-60, 3-65, 3d, 7a, 9, 10, 10b, and 15 of 20 the Service Use Tax Act; Sections 2, 3, 3-5, 3-10, 3-15, 21 3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50, 9, 13, 15, and 20.1 22 of the Service Occupation Tax Act; Sections 2, 2-5, 2-10, 23 2-15, 2-20, 2-25, 2-30, 2-35, 2-40, 2-45, 2-50, 2-55, 2-60, 24 2-65, 3, 5k, and 6d of the Retailers' Occupation Tax Act; 25 Sections 5.240, 5.241, 6z-9, 6z-17, and 6z-18 of the State 26 Finance Act; Sections 0.1 and 2 of the State Revenue Sharing 27 Act; and Sections 1 and 2 of Article V of Public Act 85-1135 28 as they have been amended. It also re-repeals Sections 29 25.05a, 25.05-2, 25.05-2a, 25.05-3, 25.05-3a, 25.05-10, 30 25.05-10a, and 25.05-10.1 of "An Act to revise the law in 31 relation to counties" and Sections 10 and 14 of the Service 32 Occupation Tax Act. This re-enactment and re-repeal is 33 intended to remove any questions as to the validity or 34 content of those Sections; it is not intended to supersede SB144 Enrolled -5- LRB9101598PTpk 1 any other Public Act that amends the text of a Section as 2 set forth in this Act. The re-enacted material in this Act 3 is shown as existing text (i.e., without underscoring) 4 because, as of the time this Act was prepared, the order 5 declaring P.A. 85-1135 invalid has been vacated. 6 (e) In Sections 100 and 900 of this Act, references to 7 "this amendatory Act of 1988" mean Public Act 85-1135, as 8 re-enacted by this Act. 9 (f) The re-enactment or re-repeal of Sections of Public 10 Act 85-1135 by this Act is not intended, and shall not be 11 construed, to imply that Public Act 85-1135 is invalid or to 12 limit or impair any legal argument (1) upholding the validity 13 of Public Act 85-1135 or (2) concerning whether the 14 provisions of Public Act 85-1135 were substantially 15 re-enacted by other Public Acts. 16 (g) All otherwise lawful actions taken in reasonable 17 reliance on or pursuant to the Sections re-enacted by this 18 Act, as set forth in Public Act 85-1135 or subsequently 19 amended, by any officer, employee, agency, or unit of State 20 or local government or by any other person or entity, are 21 hereby validated. 22 With respect to actions taken in relation to matters 23 arising under the Sections re-enacted by this Act, as set 24 forth in Public Act 85-1135 or subsequently amended, a person 25 is rebuttably presumed to have acted in reasonable reliance 26 on and pursuant to the provisions of Public Act 85-1135, as 27 those provisions had been amended at the time the action was 28 taken. 29 (h) With respect to its administration of matters 30 arising under the Sections re-enacted by this Act, the 31 Department of Revenue shall continue to apply the provisions 32 of Public Act 85-1135, as those provisions had been amended 33 at the relevant time. 34 (i) This Act applies, without limitation, to proceedings SB144 Enrolled -6- LRB9101598PTpk 1 pending on or after the effective date of this Act. 2 Section 100. Section 1 of Article 1 of Public Act 3 85-1135 (which is incorrectly shown as Section 12 in the Laws 4 of Illinois) is re-enacted as follows: 5 (P.A. 85-1135, Art. I, Sec. 1) 6 Sec. 1. It is the intent of the 85th General Assembly 7 that: 8 (a) the abolition of the authority of municipalities and 9 counties to impose occupation and use taxes, and the 10 corresponding concurrent increase of the state rate of such 11 taxes with a corresponding distribution to such 12 municipalities and counties pursuant to this amendatory Act 13 of 1988, shall remain in full force and effect on a permanent 14 basis; 15 (b) there shall be no reduction or redistribution as to 16 proportional amount of such corresponding distribution 17 received by such municipalities and counties except as 18 expressly provided in this amendatory Act of 1988; 19 (c) there shall be no reduction of the rate or base of 20 such taxes except as expressly provided in this amendatory 21 Act of 1988; 22 (d) there shall be no limitation on the use of monies 23 received by such municipalities and counties except as 24 expressly provided in this amendatory Act of 1988; 25 (e) the distribution of occupation tax revenues to 26 municipalities and counties shall remain on the basis of 27 point of sale; 28 (f) tax revenues collected pursuant to the State use tax 29 Acts on interstate transactions involving transfer of 30 tangible personal property shall be distributed in accordance 31 with the formula established by this amendatory Act of 1988 32 for State use taxes; and SB144 Enrolled -7- LRB9101598PTpk 1 (g) repeal of the statutory authority of municipalities 2 and counties to impose local retailers' occupation taxes, use 3 taxes, and service occupation taxes shall not be so construed 4 as to impair the provisions of any development, 5 redevelopment, annexation, preannexation or other lawful 6 agreement which describes or refers to receipts from any of 7 such taxes, but, rather, any such description or reference to 8 such taxes shall be given effect as if reference were made in 9 such agreement to the replacement revenue for such abolished 10 taxes received from the Local Government Tax Fund, County and 11 Mass Transit Tax Fund or Local Government Distributive Fund, 12 as the case may be. 13 Section 105. The State Finance Act is amended by 14 re-enacting Sections 5.240, 5.241, 6z-9, 6z-17, and 6z-18 as 15 follows: 16 (30 ILCS 105/5.240) (from Ch. 127, par. 141.240) 17 Sec. 5.240. The Local Government Tax Fund. 18 (Source: P.A. 85-1135.) 19 (30 ILCS 105/5.241) (from Ch. 127, par. 141.241) 20 Sec. 5.241. The County and Mass Transit District Fund. 21 (Source: P.A. 85-1135.) 22 (30 ILCS 105/6z-9) (from Ch. 127, par. 142z-9) 23 Sec. 6z-9. (a) The Build Illinois Fund is created in the 24 State Treasury. All tax revenues and other moneys from 25 whatever source which by law are required to be deposited in 26 the Build Illinois Fund shall be paid into the Build Illinois 27 Fund upon their collection, payment or other receipt as 28 provided by law, including the pledge set forth in Section 12 29 of the Build Illinois Bond Act. All tax revenues and other 30 moneys paid into the Build Illinois Fund shall be promptly SB144 Enrolled -8- LRB9101598PTpk 1 invested by the State Treasurer in accordance with law, and 2 all interest or other earnings accruing or received thereon 3 shall be credited to and paid into the Build Illinois Fund. 4 No tax revenues or other moneys, interest or earnings paid 5 into the Build Illinois Fund shall be transferred or 6 allocated by the Comptroller or Treasurer to any other fund, 7 nor shall the Governor authorize any such transfer or 8 allocation, nor shall any tax revenues or other moneys, 9 interest or earnings paid into the Build Illinois Fund be 10 used, temporarily or otherwise, for interfund borrowing, or 11 be otherwise used or appropriated, except as expressly 12 authorized and provided in Section 8.25 of this Act for the 13 sole purposes and subject to the priorities, limitations and 14 conditions prescribed therein. 15 (b) The tax revenues and other moneys shall be paid into 16 the Build Illinois Fund pursuant to Section 6Z-17 of this 17 Act, Section 28 of the "Illinois Horse Racing Act of 1975", 18 as amended, Section 9 of the "Use Tax Act", as amended, 19 Section 9 of the "Service Use Tax Act", as amended, Section 9 20 of the "Service Occupation Tax Act", as amended, Section 3 of 21 the "Retailers' Occupation Tax Act", as amended, Section 4.05 22 of the "Chicago World's Fair - 1992 Authority Act", as 23 amended, and Sections 3 and 6 of "The Hotel Operators' 24 Occupation Tax Act", as amended. 25 (Source: P.A. 85-1135.) 26 (30 ILCS 105/6z-17) (from Ch. 127, par. 142z-17) 27 Sec. 6z-17. Of the money paid into the State and Local 28 Sales Tax Reform Fund: (i) subject to appropriation to the 29 Department of Revenue, Municipalities having 1,000,000 or 30 more inhabitants shall receive 20% and may expend such amount 31 to fund and establish a program for developing and 32 coordinating public and private resources targeted to meet 33 the affordable housing needs of low-income and very SB144 Enrolled -9- LRB9101598PTpk 1 low-income households within such municipality, (ii) 10% 2 shall be transferred into the Regional Transportation 3 Authority Occupation and Use Tax Replacement Fund, a special 4 fund in the State treasury which is hereby created, (iii) 5 subject to appropriation to the Department of Transportation, 6 The Metro East Mass Transit District shall receive .6%, (iv) 7 the following amounts, plus any cumulative deficiency in such 8 transfers for prior months, shall be transferred monthly into 9 the Build Illinois Fund and credited to the Build Illinois 10 Bond Account therein: 11 Fiscal Year Amount 12 1990 $2,700,000 13 1991 1,850,000 14 1992 2,750,000 15 1993 2,950,000 16 From Fiscal Year 1994 through Fiscal Year 2025 the 17 transfer shall total $3,150,000 monthly, plus any cumulative 18 deficiency in such transfers for prior months, and (v) the 19 remainder of the money paid into the State and Local Sales 20 Tax Reform Fund shall be transferred into the Local 21 Government Distributive Fund and, except for municipalities 22 with 1,000,000 or more inhabitants which shall receive no 23 portion of such remainder, shall be distributed, subject to 24 appropriation, in the manner provided by Section 2 of "An Act 25 in relation to State revenue sharing with local government 26 entities", approved July 31, 1969, as now or hereafter 27 amended. Municipalities with more than 50,000 inhabitants 28 according to the 1980 U.S. Census and located within the 29 Metro East Mass Transit District receiving funds pursuant to 30 provision (v) of this paragraph may expend such amounts to 31 fund and establish a program for developing and coordinating 32 public and private resources targeted to meet the affordable 33 housing needs of low-income and very low-income households 34 within such municipality. SB144 Enrolled -10- LRB9101598PTpk 1 (Source: P.A. 86-17; 86-44; 86-928; 86-953; 86-1028.) 2 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18) 3 Sec. 6z-18. A portion of the money paid into the Local 4 Government Tax Fund from sales of food for human consumption 5 which is to be consumed off the premises where it is sold 6 (other than alcoholic beverages, soft drinks and food which 7 has been prepared for immediate consumption) and prescription 8 and nonprescription medicines, drugs, medical appliances and 9 insulin, urine testing materials, syringes and needles used 10 by diabetics, which occurred in municipalities, shall be 11 distributed to each municipality based upon the sales which 12 occurred in that municipality. The remainder shall be 13 distributed to each county based upon the sales which 14 occurred in the unincorporated area of that county. 15 A portion of the money paid into the Local Government Tax 16 Fund from the 6.25% general use tax rate on the selling price 17 of tangible personal property which is purchased outside 18 Illinois at retail from a retailer and which is titled or 19 registered by any agency of this State's government shall be 20 distributed to municipalities as provided in this paragraph. 21 Each municipality shall receive the amount attributable to 22 sales for which Illinois addresses for titling or 23 registration purposes are given as being in such 24 municipality. The remainder of the money paid into the Local 25 Government Tax Fund from such sales shall be distributed to 26 counties. Each county shall receive the amount attributable 27 to sales for which Illinois addresses for titling or 28 registration purposes are given as being located in the 29 unincorporated area of such county. 30 A portion of the money paid into the Local Government Tax 31 Fund from the 6.25% general rate on sales subject to taxation 32 under the Retailers' Occupation Tax Act and the Service 33 Occupation Tax Act, which occurred in municipalities, shall SB144 Enrolled -11- LRB9101598PTpk 1 be distributed to each municipality, based upon the sales 2 which occurred in that municipality. The remainder shall be 3 distributed to each county, based upon the sales which 4 occurred in the unincorporated area of such county. 5 For the purpose of determining allocation to the local 6 government unit, a retail sale by a producer of coal or other 7 mineral mined in Illinois is a sale at retail at the place 8 where the coal or other mineral mined in Illinois is 9 extracted from the earth. This paragraph does not apply to 10 coal or other mineral when it is delivered or shipped by the 11 seller to the purchaser at a point outside Illinois so that 12 the sale is exempt under the United States Constitution as a 13 sale in interstate or foreign commerce. 14 Whenever the Department determines that a refund of money 15 paid into the Local Government Tax Fund should be made to a 16 claimant instead of issuing a credit memorandum, the 17 Department shall notify the State Comptroller, who shall 18 cause the order to be drawn for the amount specified, and to 19 the person named, in such notification from the Department. 20 Such refund shall be paid by the State Treasurer out of the 21 Local Government Tax Fund. 22 On or before the 25th day of each calendar month, the 23 Department shall prepare and certify to the Comptroller the 24 disbursement of stated sums of money to named municipalities 25 and counties, the municipalities and counties to be those 26 entitled to distribution of taxes or penalties paid to the 27 Department during the second preceding calendar month. The 28 amount to be paid to each municipality or county shall be the 29 amount (not including credit memoranda) collected during the 30 second preceding calendar month by the Department and paid 31 into the Local Government Tax Fund, plus an amount the 32 Department determines is necessary to offset any amounts 33 which were erroneously paid to a different taxing body, and 34 not including an amount equal to the amount of refunds made SB144 Enrolled -12- LRB9101598PTpk 1 during the second preceding calendar month by the Department, 2 and not including any amount which the Department determines 3 is necessary to offset any amounts which are payable to a 4 different taxing body but were erroneously paid to the 5 municipality or county. Within 10 days after receipt, by the 6 Comptroller, of the disbursement certification to the 7 municipalities and counties, provided for in this Section to 8 be given to the Comptroller by the Department, the 9 Comptroller shall cause the orders to be drawn for the 10 respective amounts in accordance with the directions 11 contained in such certification. 12 When certifying the amount of monthly disbursement to a 13 municipality or county under this Section, the Department 14 shall increase or decrease that amount by an amount necessary 15 to offset any misallocation of previous disbursements. The 16 offset amount shall be the amount erroneously disbursed 17 within the 6 months preceding the time a misallocation is 18 discovered. 19 The provisions directing the distributions from the 20 special fund in the State Treasury provided for in this 21 Section shall constitute an irrevocable and continuing 22 appropriation of all amounts as provided herein. The State 23 Treasurer and State Comptroller are hereby authorized to make 24 distributions as provided in this Section. 25 In construing any development, redevelopment, annexation, 26 preannexation or other lawful agreement in effect prior to 27 September 1, 1990, which describes or refers to receipts from 28 a county or municipal retailers' occupation tax, use tax or 29 service occupation tax which now cannot be imposed, such 30 description or reference shall be deemed to include the 31 replacement revenue for such abolished taxes, distributed 32 from the Local Government Tax Fund. 33 (Source: P.A. 90-491, eff. 1-1-98.) SB144 Enrolled -13- LRB9101598PTpk 1 Section 110. The State Revenue Sharing Act is amended by 2 re-enacting Sections 0.1 and 2 as follows: 3 (30 ILCS 115/0.1) (from Ch. 85, par. 610) 4 Sec. 0.1. This Act shall be known and may be cited as 5 the State Revenue Sharing Act. 6 (Source: P.A. 85-1440.) 7 (30 ILCS 115/2) (from Ch. 85, par. 612) 8 Sec. 2. Allocation and Disbursement. As soon as may be 9 after the first day of each month, the Department of Revenue 10 shall allocate among the several municipalities and counties 11 of this State the amount available in the Local Government 12 Distributive Fund and in the Income Tax Surcharge Local 13 Government Distributive Fund, determined as provided in 14 Sections 1 and 1a above. Except as provided in Sections 13 15 and 13.1 of this Act, the Department shall then certify such 16 allocations to the State Comptroller, who shall pay over to 17 the several municipalities and counties the respective 18 amounts allocated to them. The amount of such Funds 19 allocable to each such municipality and county shall be in 20 proportion to the number of individual residents of such 21 municipality or county to the total population of the State, 22 determined in each case on the basis of the latest census of 23 the State, municipality or county conducted by the Federal 24 government and certified by the Secretary of State and for 25 annexations to municipalities, the latest Federal, State or 26 municipal census of the annexed area which has been certified 27 by the Department of Revenue. For the purpose of this 28 Section, the number of individual residents of a county shall 29 be reduced by the number of individuals residing therein in 30 municipalities, but the number of individual residents of the 31 State, county and municipality shall reflect the latest 32 census of any of them. The amounts transferred into the Local SB144 Enrolled -14- LRB9101598PTpk 1 Government Distributive Fund pursuant to Section 9 of the Use 2 Tax Act, Section 9 of the Service Use Tax Act, Section 9 of 3 the Service Occupation Tax Act, and Section 3 of the 4 Retailers' Occupation Tax Act, each as now or hereafter 5 amended, pursuant to the amendments of such Sections by 6 Public Act 85-1135, shall be distributed as provided in said 7 Sections. 8 (Source: P.A. 86-18.) 9 Section 115. The Use Tax Act is amended by re-enacting 10 Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 11 3-45, 3-50, 3-55, 3-60, 3-65, 3-70, 3-75, 3-80, and 9 as 12 follows: 13 (35 ILCS 105/3) (from Ch. 120, par. 439.3) 14 Sec. 3. Tax imposed. A tax is imposed upon the privilege 15 of using in this State tangible personal property purchased 16 at retail from a retailer, including computer software, and 17 including photographs, negatives, and positives that are the 18 product of photoprocessing, but not including products of 19 photoprocessing produced for use in motion pictures for 20 commercial exhibition. 21 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 22 86-953; 86-1394; 86-1475; 87-876.) 23 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 24 Sec. 3-5. Exemptions. Use of the following tangible 25 personal property is exempt from the tax imposed by this Act: 26 (1) Personal property purchased from a corporation, 27 society, association, foundation, institution, or 28 organization, other than a limited liability company, that is 29 organized and operated as a not-for-profit service enterprise 30 for the benefit of persons 65 years of age or older if the 31 personal property was not purchased by the enterprise for the SB144 Enrolled -15- LRB9101598PTpk 1 purpose of resale by the enterprise. 2 (2) Personal property purchased by a not-for-profit 3 Illinois county fair association for use in conducting, 4 operating, or promoting the county fair. 5 (3) Personal property purchased by a not-for-profit 6 music or dramatic arts organization that establishes, by 7 proof required by the Department by rule, that it has 8 received an exemption under Section 501(c)(3) of the Internal 9 Revenue Code and that is organized and operated for the 10 presentation of live public performances of musical or 11 theatrical works on a regular basis. 12 (4) Personal property purchased by a governmental body, 13 by a corporation, society, association, foundation, or 14 institution organized and operated exclusively for 15 charitable, religious, or educational purposes, or by a 16 not-for-profit corporation, society, association, foundation, 17 institution, or organization that has no compensated officers 18 or employees and that is organized and operated primarily for 19 the recreation of persons 55 years of age or older. A limited 20 liability company may qualify for the exemption under this 21 paragraph only if the limited liability company is organized 22 and operated exclusively for educational purposes. On and 23 after July 1, 1987, however, no entity otherwise eligible for 24 this exemption shall make tax-free purchases unless it has an 25 active exemption identification number issued by the 26 Department. 27 (5) A passenger car that is a replacement vehicle to the 28 extent that the purchase price of the car is subject to the 29 Replacement Vehicle Tax. 30 (6) Graphic arts machinery and equipment, including 31 repair and replacement parts, both new and used, and 32 including that manufactured on special order, certified by 33 the purchaser to be used primarily for graphic arts 34 production, and including machinery and equipment purchased SB144 Enrolled -16- LRB9101598PTpk 1 for lease. 2 (7) Farm chemicals. 3 (8) Legal tender, currency, medallions, or gold or 4 silver coinage issued by the State of Illinois, the 5 government of the United States of America, or the government 6 of any foreign country, and bullion. 7 (9) Personal property purchased from a teacher-sponsored 8 student organization affiliated with an elementary or 9 secondary school located in Illinois. 10 (10) A motor vehicle of the first division, a motor 11 vehicle of the second division that is a self-contained motor 12 vehicle designed or permanently converted to provide living 13 quarters for recreational, camping, or travel use, with 14 direct walk through to the living quarters from the driver's 15 seat, or a motor vehicle of the second division that is of 16 the van configuration designed for the transportation of not 17 less than 7 nor more than 16 passengers, as defined in 18 Section 1-146 of the Illinois Vehicle Code, that is used for 19 automobile renting, as defined in the Automobile Renting 20 Occupation and Use Tax Act. 21 (11) Farm machinery and equipment, both new and used, 22 including that manufactured on special order, certified by 23 the purchaser to be used primarily for production agriculture 24 or State or federal agricultural programs, including 25 individual replacement parts for the machinery and equipment, 26 including machinery and equipment purchased for lease, and 27 including implements of husbandry defined in Section 1-130 of 28 the Illinois Vehicle Code, farm machinery and agricultural 29 chemical and fertilizer spreaders, and nurse wagons required 30 to be registered under Section 3-809 of the Illinois Vehicle 31 Code, but excluding other motor vehicles required to be 32 registered under the Illinois Vehicle Code. Horticultural 33 polyhouses or hoop houses used for propagating, growing, or 34 overwintering plants shall be considered farm machinery and SB144 Enrolled -17- LRB9101598PTpk 1 equipment under this item (11). Agricultural chemical tender 2 tanks and dry boxes shall include units sold separately from 3 a motor vehicle required to be licensed and units sold 4 mounted on a motor vehicle required to be licensed if the 5 selling price of the tender is separately stated. 6 Farm machinery and equipment shall include precision 7 farming equipment that is installed or purchased to be 8 installed on farm machinery and equipment including, but not 9 limited to, tractors, harvesters, sprayers, planters, 10 seeders, or spreaders. Precision farming equipment includes, 11 but is not limited to, soil testing sensors, computers, 12 monitors, software, global positioning and mapping systems, 13 and other such equipment. 14 Farm machinery and equipment also includes computers, 15 sensors, software, and related equipment used primarily in 16 the computer-assisted operation of production agriculture 17 facilities, equipment, and activities such as, but not 18 limited to, the collection, monitoring, and correlation of 19 animal and crop data for the purpose of formulating animal 20 diets and agricultural chemicals. This item (11) is exempt 21 from the provisions of Section 3-90. 22 (12) Fuel and petroleum products sold to or used by an 23 air common 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 (13) Proceeds of mandatory service charges separately 30 stated on customers' bills for the purchase and consumption 31 of food and beverages purchased at retail from a retailer, to 32 the extent that the proceeds of the service charge are in 33 fact turned over as tips or as a substitute for tips to the 34 employees who participate directly in preparing, serving, SB144 Enrolled -18- LRB9101598PTpk 1 hosting or cleaning up the food or beverage function with 2 respect to which the service charge is imposed. 3 (14) Oil field exploration, drilling, and production 4 equipment, including (i) rigs and parts of rigs, rotary rigs, 5 cable tool rigs, and workover rigs, (ii) pipe and tubular 6 goods, including casing and drill strings, (iii) pumps and 7 pump-jack units, (iv) storage tanks and flow lines, (v) any 8 individual replacement part for oil field exploration, 9 drilling, and production equipment, and (vi) machinery and 10 equipment purchased for lease; but excluding motor vehicles 11 required to be registered under the Illinois Vehicle Code. 12 (15) Photoprocessing machinery and equipment, including 13 repair and replacement parts, both new and used, including 14 that manufactured on special order, certified by the 15 purchaser to be used primarily for photoprocessing, and 16 including photoprocessing machinery and equipment purchased 17 for lease. 18 (16) Coal exploration, mining, offhighway hauling, 19 processing, maintenance, and reclamation equipment, including 20 replacement parts and equipment, and including equipment 21 purchased for lease, but excluding motor vehicles required to 22 be registered under the Illinois Vehicle Code. 23 (17) Distillation machinery and equipment, sold as a 24 unit or kit, assembled or installed by the retailer, 25 certified by the user to be used only for the production of 26 ethyl alcohol that will be used for consumption as motor fuel 27 or as a component of motor fuel for the personal use of the 28 user, and not subject to sale or resale. 29 (18) Manufacturing and assembling machinery and 30 equipment used primarily in the process of manufacturing or 31 assembling tangible personal property for wholesale or retail 32 sale or lease, whether that sale or lease is made directly by 33 the manufacturer or by some other person, whether the 34 materials used in the process are owned by the manufacturer SB144 Enrolled -19- LRB9101598PTpk 1 or some other person, or whether that sale or lease is made 2 apart from or as an incident to the seller's engaging in the 3 service occupation of producing machines, tools, dies, jigs, 4 patterns, gauges, or other similar items of no commercial 5 value on special order for a particular purchaser. 6 (19) Personal property delivered to a purchaser or 7 purchaser's donee inside Illinois when the purchase order for 8 that personal property was received by a florist located 9 outside Illinois who has a florist located inside Illinois 10 deliver the personal property. 11 (20) Semen used for artificial insemination of livestock 12 for direct agricultural production. 13 (21) Horses, or interests in horses, registered with and 14 meeting the requirements of any of the Arabian Horse Club 15 Registry of America, Appaloosa Horse Club, American Quarter 16 Horse Association, United States Trotting Association, or 17 Jockey Club, as appropriate, used for purposes of breeding or 18 racing for prizes. 19 (22) Computers and communications equipment utilized for 20 any hospital purpose and equipment used in the diagnosis, 21 analysis, or treatment of hospital patients purchased by a 22 lessor who leases the equipment, under a lease of one year or 23 longer executed or in effect at the time the lessor would 24 otherwise be subject to the tax imposed by this Act, to a 25 hospital that has been issued an active tax exemption 26 identification number by the Department under Section 1g of 27 the Retailers' Occupation Tax Act. If the equipment is 28 leased in a manner that does not qualify for this exemption 29 or is used in any other non-exempt manner, the lessor shall 30 be liable for the tax imposed under this Act or the Service 31 Use Tax Act, as the case may be, based on the fair market 32 value of the property at the time the non-qualifying use 33 occurs. No lessor shall collect or attempt to collect an 34 amount (however designated) that purports to reimburse that SB144 Enrolled -20- LRB9101598PTpk 1 lessor for the tax imposed by this Act or the Service Use Tax 2 Act, as the case may be, if the tax has not been paid by the 3 lessor. If a lessor improperly collects any such amount from 4 the lessee, the lessee shall have a legal right to claim a 5 refund of that amount from the lessor. If, however, that 6 amount is not refunded to the lessee for any reason, the 7 lessor is liable to pay that amount to the Department. 8 (23) Personal property purchased by a lessor who leases 9 the property, under a lease of one year or longer executed 10 or in effect at the time the lessor would otherwise be 11 subject to the tax imposed by this Act, to a governmental 12 body that has been issued an active sales tax exemption 13 identification number by the Department under Section 1g of 14 the Retailers' Occupation Tax Act. If the property is leased 15 in a manner that does not qualify for this exemption or used 16 in any other non-exempt manner, the lessor shall be liable 17 for the tax imposed under this Act or the Service Use Tax 18 Act, as the case may be, based on the fair market value of 19 the property at the time the non-qualifying use occurs. No 20 lessor shall collect or attempt to collect an amount (however 21 designated) that purports to reimburse that lessor for the 22 tax imposed by this Act or the Service Use Tax Act, as the 23 case may be, if the tax has not been paid by the lessor. If 24 a lessor improperly collects any such amount from the lessee, 25 the lessee shall have a legal right to claim a refund of that 26 amount from the lessor. If, however, that amount is not 27 refunded to the lessee for any reason, the lessor is liable 28 to pay that amount to the Department. 29 (24) Beginning with taxable years ending on or after 30 December 31, 1995 and ending with taxable years ending on or 31 before December 31, 2004, personal property that is donated 32 for disaster relief to be used in a State or federally 33 declared disaster area in Illinois or bordering Illinois by a 34 manufacturer or retailer that is registered in this State to SB144 Enrolled -21- LRB9101598PTpk 1 a corporation, society, association, foundation, or 2 institution that has been issued a sales tax exemption 3 identification number by the Department that assists victims 4 of the disaster who reside within the declared disaster area. 5 (25) Beginning with taxable years ending on or after 6 December 31, 1995 and ending with taxable years ending on or 7 before December 31, 2004, personal property that is used in 8 the performance of infrastructure repairs in this State, 9 including but not limited to municipal roads and streets, 10 access roads, bridges, sidewalks, waste disposal systems, 11 water and sewer line extensions, water distribution and 12 purification facilities, storm water drainage and retention 13 facilities, and sewage treatment facilities, resulting from a 14 State or federally declared disaster in Illinois or bordering 15 Illinois when such repairs are initiated on facilities 16 located in the declared disaster area within 6 months after 17 the disaster. 18 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 19 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 20 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 21 eff. 12-12-97; 90-605, eff. 6-30-98.) 22 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 23 Sec. 3-10. Rate of tax. Unless otherwise provided in 24 this Section, the tax imposed by this Act is at the rate of 25 6.25% of either the selling price or the fair market value, 26 if any, of the tangible personal property. In all cases 27 where property functionally used or consumed is the same as 28 the property that was purchased at retail, then the tax is 29 imposed on the selling price of the property. In all cases 30 where property functionally used or consumed is a by-product 31 or waste product that has been refined, manufactured, or 32 produced from property purchased at retail, then the tax is 33 imposed on the lower of the fair market value, if any, of the SB144 Enrolled -22- LRB9101598PTpk 1 specific property so used in this State or on the selling 2 price of the property purchased at retail. For purposes of 3 this Section "fair market value" means the price at which 4 property would change hands between a willing buyer and a 5 willing seller, neither being under any compulsion to buy or 6 sell and both having reasonable knowledge of the relevant 7 facts. The fair market value shall be established by Illinois 8 sales by the taxpayer of the same property as that 9 functionally used or consumed, or if there are no such sales 10 by the taxpayer, then comparable sales or purchases of 11 property of like kind and character in Illinois. 12 With respect to gasohol, the tax imposed by this Act 13 applies to 70% of the proceeds of sales made on or after 14 January 1, 1990, and before July 1, 2003, and to 100% of the 15 proceeds of sales made thereafter. 16 With respect to food for human consumption that is to be 17 consumed off the premises where it is sold (other than 18 alcoholic beverages, soft drinks, and food that has been 19 prepared for immediate consumption) and prescription and 20 nonprescription medicines, drugs, medical appliances, 21 modifications to a motor vehicle for the purpose of rendering 22 it usable by a disabled person, and insulin, urine testing 23 materials, syringes, and needles used by diabetics, for human 24 use, the tax is imposed at the rate of 1%. For the purposes 25 of this Section, the term "soft drinks" means any complete, 26 finished, ready-to-use, non-alcoholic drink, whether 27 carbonated or not, including but not limited to soda water, 28 cola, fruit juice, vegetable juice, carbonated water, and all 29 other preparations commonly known as soft drinks of whatever 30 kind or description that are contained in any closed or 31 sealed bottle, can, carton, or container, regardless of size. 32 "Soft drinks" does not include coffee, tea, non-carbonated 33 water, infant formula, milk or milk products as defined in 34 the Grade A Pasteurized Milk and Milk Products Act, or drinks SB144 Enrolled -23- LRB9101598PTpk 1 containing 50% or more natural fruit or vegetable juice. 2 Notwithstanding any other provisions of this Act, "food 3 for human consumption that is to be consumed off the premises 4 where it is sold" includes all food sold through a vending 5 machine, except soft drinks and food products that are 6 dispensed hot from a vending machine, regardless of the 7 location of the vending machine. 8 If the property that is purchased at retail from a 9 retailer is acquired outside Illinois and used outside 10 Illinois before being brought to Illinois for use here and is 11 taxable under this Act, the "selling price" on which the tax 12 is computed shall be reduced by an amount that represents a 13 reasonable allowance for depreciation for the period of prior 14 out-of-state use. 15 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96; 16 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff. 17 6-30-98; 90-606, eff. 6-30-98.) 18 (35 ILCS 105/3-15) (from Ch. 120, par. 439.3-15) 19 Sec. 3-15. Photoprocessing. For purposes of the tax 20 imposed on photographs, negatives, and positives by this Act, 21 "photoprocessing" includes, but is not limited to, developing 22 films, positives, negatives, and transparencies, and tinting, 23 coloring, making, and enlarging prints. Photoprocessing does 24 not include color separation, typesetting, and platemaking by 25 photographic means in the graphic arts industry and does not 26 include any procedure, process, or activity connected with 27 the creation of the images on the film from which the 28 negatives, positives, or photographs are derived. The charge 29 for in-house photoprocessing may not be less than the 30 photoprocessor's cost price of materials. In transactions in 31 which products of photoprocessing are sold in conjunction 32 with other services, if a charge for the photoprocessing 33 component is not separately stated, tax is imposed on 50% of SB144 Enrolled -24- LRB9101598PTpk 1 the entire selling price unless the sale is made by a 2 professional photographer, in which case tax is imposed on 3 10% of the entire selling price. 4 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 5 86-953; 86-1394; 86-1475.) 6 (35 ILCS 105/3-20) (from Ch. 120, par. 439.3-20) 7 Sec. 3-20. Bullion. For purposes of the exemption 8 pertaining to bullion, "bullion" means gold, silver, or 9 platinum in a bulk state with a purity of not less than 980 10 parts per 1,000. 11 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 12 86-953; 86-1394; 86-1475.) 13 (35 ILCS 105/3-25) (from Ch. 120, par. 439.3-25) 14 Sec. 3-25. Computer software. For the purposes of this 15 Act, "computer software" means a set of statements, data, or 16 instructions to be used directly or indirectly in a computer 17 in order to bring about a certain result in any form in which 18 those statements, data, or instructions may be embodied, 19 transmitted, or fixed, by any method now known or hereafter 20 developed, regardless of whether the statements, data, or 21 instructions are capable of being perceived by or 22 communicated to humans, and includes prewritten or canned 23 software that is held for repeated sale or lease, and all 24 associated documentation and materials, if any, whether 25 contained on magnetic tapes, discs, cards, or other devices 26 or media, but does not include software that is adapted to 27 specific individualized requirements of a purchaser, 28 custom-made and modified software designed for a particular 29 or limited use by a purchaser, or software used to operate 30 exempt machinery and equipment used in the process of 31 manufacturing or assembling tangible personal property for 32 wholesale or retail sale or lease. SB144 Enrolled -25- LRB9101598PTpk 1 For the purposes of this Act, computer software shall be 2 considered to be tangible personal property. 3 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 4 86-953; 86-1394; 86-1475.) 5 (35 ILCS 105/3-30) (from Ch. 120, par. 439.3-30) 6 Sec. 3-30. Graphic arts production. For the purposes of 7 this Act, "graphic arts production" means printing by one or 8 more of the common processes or graphic arts production 9 services as those processes and services are defined in Major 10 Group 27 of the U. S. Standard Industrial Classification 11 Manual. 12 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 13 86-953; 86-1394; 86-1475.) 14 (35 ILCS 105/3-35) (from Ch. 120, par. 439.3-35) 15 Sec. 3-35. Production agriculture. For purposes of this 16 Act, "production agriculture" means the raising of or the 17 propagation of livestock; crops for sale for human 18 consumption; crops for livestock consumption; and production 19 seed stock grown for the propagation of feed grains and the 20 husbandry of animals or for the purpose of providing a food 21 product, including the husbandry of blood stock as a main 22 source of providing a food product. "Production agriculture" 23 also means animal husbandry, floriculture, aquaculture, 24 horticulture, and viticulture. 25 (Source: P.A. 89-220, eff. 1-1-96.) 26 (35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40) 27 Sec. 3-40. Gasohol. As used in this Act, "gasohol" 28 means motor fuel that is no more than 90% gasoline and at 29 least 10% denatured ethanol that contains no more than 1.25% 30 water by weight. Any person who knowingly sells or represents 31 as gasohol any fuel that does not qualify as gasohol under SB144 Enrolled -26- LRB9101598PTpk 1 this Act is guilty of a business offense and shall be fined 2 not more than $100 for each day that the sale or 3 representation takes place after notification from the 4 Department of Agriculture that the fuel in question does not 5 qualify as gasohol. 6 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 7 86-953; 86-1394; 86-1475.) 8 (35 ILCS 105/3-45) (from Ch. 120, par. 439.3-45) 9 Sec. 3-45. Collection. The tax imposed by this Act 10 shall be collected from the purchaser by a retailer 11 maintaining a place of business in this State or a retailer 12 authorized by the Department under Section 6 of this Act, and 13 shall be remitted to the Department as provided in Section 9 14 of this Act. 15 The tax imposed by this Act that is not paid to a 16 retailer under this Section shall be paid to the Department 17 directly by any person using the property within this State 18 as provided in Section 10 of this Act. 19 Retailers shall collect the tax from users by adding the 20 tax to the selling price of tangible personal property, when 21 sold for use, in the manner prescribed by the Department. 22 The Department may adopt and promulgate reasonable rules and 23 regulations for the adding of the tax by retailers to selling 24 prices by prescribing bracket systems for the purpose of 25 enabling the retailers to add and collect, as far as 26 practicable, the amount of the tax. 27 If a seller collects use tax measured by receipts that 28 are not subject to use tax, or if a seller, in collecting use 29 tax measured by receipts that are subject to tax under this 30 Act, collects more from the purchaser than the required 31 amount of the use tax on the transaction, the purchaser shall 32 have a legal right to claim a refund of that amount from the 33 seller. If, however, that amount is not refunded to the SB144 Enrolled -27- LRB9101598PTpk 1 purchaser for any reason, the seller is liable to pay that 2 amount to the Department. This paragraph does not apply to 3 an amount collected by the seller as use tax on receipts that 4 are subject to tax under this Act as long as the collection 5 is made in compliance with the tax collection brackets 6 prescribed by the Department in its rules and regulations. 7 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 8 86-953; 86-1394; 86-1475.) 9 (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50) 10 Sec. 3-50. Manufacturing and assembly exemption. The 11 manufacturing and assembling machinery and equipment 12 exemption includes machinery and equipment that replaces 13 machinery and equipment in an existing manufacturing facility 14 as well as machinery and equipment that are for use in an 15 expanded or new manufacturing facility. The machinery and 16 equipment exemption also includes machinery and equipment 17 used in the general maintenance or repair of exempt machinery 18 and equipment or for in-house manufacture of exempt machinery 19 and equipment. For the purposes of this exemption, terms have 20 the following meanings: 21 (1) "Manufacturing process" means the production of 22 an article of tangible personal property, whether the 23 article is a finished product or an article for use in 24 the process of manufacturing or assembling a different 25 article of tangible personal property, by a procedure 26 commonly regarded as manufacturing, processing, 27 fabricating, or refining that changes some existing 28 material into a material with a different form, use, or 29 name. In relation to a recognized integrated business 30 composed of a series of operations that collectively 31 constitute manufacturing, or individually constitute 32 manufacturing operations, the manufacturing process 33 commences with the first operation or stage of production SB144 Enrolled -28- LRB9101598PTpk 1 in the series and does not end until the completion of 2 the final product in the last operation or stage of 3 production in the series. For purposes of this 4 exemption, photoprocessing is a manufacturing process of 5 tangible personal property for wholesale or retail sale. 6 (2) "Assembling process" means the production of an 7 article of tangible personal property, whether the 8 article is a finished product or an article for use in 9 the process of manufacturing or assembling a different 10 article of tangible personal property, by the combination 11 of existing materials in a manner commonly regarded as 12 assembling that results in an article or material of a 13 different form, use, or name. 14 (3) "Machinery" means major mechanical machines or 15 major components of those machines contributing to a 16 manufacturing or assembling process. 17 (4) "Equipment" includes an independent device or 18 tool separate from machinery but essential to an 19 integrated manufacturing or assembly process; including 20 computers used primarily in operating exempt machinery 21 and equipment in a computer assisted design, computer 22 assisted manufacturing (CAD/CAM) system; any subunit or 23 assembly comprising a component of any machinery or 24 auxiliary, adjunct, or attachment parts of machinery, 25 such as tools, dies, jigs, fixtures, patterns, and molds; 26 and any parts that require periodic replacement in the 27 course of normal operation; but does not include hand 28 tools. 29 The manufacturing and assembling machinery and equipment 30 exemption includes the sale of materials to a purchaser who 31 produces exempted types of machinery, equipment, or tools and 32 who rents or leases that machinery, equipment, or tools to a 33 manufacturer of tangible personal property. This exemption 34 also includes the sale of materials to a purchaser who SB144 Enrolled -29- LRB9101598PTpk 1 manufactures those materials into an exempted type of 2 machinery, equipment, or tools that the purchaser uses 3 himself or herself in the manufacturing of tangible personal 4 property. This exemption includes the sale of exempted types 5 of machinery or equipment to a purchaser who is not the 6 manufacturer, but who rents or leases the use of the property 7 to a manufacturer. The purchaser of the machinery and 8 equipment who has an active resale registration number shall 9 furnish that number to the seller at the time of purchase. A 10 user of the machinery, equipment, or tools without an active 11 resale registration number shall prepare a certificate of 12 exemption for each transaction stating facts establishing the 13 exemption for that transaction, and that certificate shall be 14 available to the Department for inspection or audit. The 15 Department shall prescribe the form of the certificate. 16 Informal rulings, opinions, or letters issued by the 17 Department in response to an inquiry or request for an 18 opinion from any person regarding the coverage and 19 applicability of this exemption to specific devices shall be 20 published, maintained as a public record, and made available 21 for public inspection and copying. If the informal ruling, 22 opinion, or letter contains trade secrets or other 23 confidential information, where possible, the Department 24 shall delete that information before publication. Whenever 25 informal rulings, opinions, or letters contain a policy of 26 general applicability, the Department shall formulate and 27 adopt that policy as a rule in accordance with the Illinois 28 Administrative Procedure Act. 29 (Source: P.A. 88-505; 88-547.) 30 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55) 31 Sec. 3-55. Multistate exemption. To prevent actual or 32 likely multistate taxation, the tax imposed by this Act does 33 not apply to the use of tangible personal property in this SB144 Enrolled -30- LRB9101598PTpk 1 State under the following circumstances: 2 (a) The use, in this State, of tangible personal 3 property acquired outside this State by a nonresident 4 individual and brought into this State by the individual for 5 his or her own use while temporarily within this State or 6 while passing through this State. 7 (b) The use, in this State, of tangible personal 8 property by an interstate carrier for hire as rolling stock 9 moving in interstate commerce or by lessors under a lease of 10 one year or longer executed or in effect at the time of 11 purchase of tangible personal property by interstate carriers 12 for-hire for use as rolling stock moving in interstate 13 commerce as long as so used by the interstate carriers 14 for-hire, and equipment operated by a telecommunications 15 provider, licensed as a common carrier by the Federal 16 Communications Commission, which is permanently installed in 17 or affixed to aircraft moving in interstate commerce. 18 (c) The use, in this State, by owners, lessors, or 19 shippers of tangible personal property that is utilized by 20 interstate carriers for hire for use as rolling stock moving 21 in interstate commerce as long as so used by the interstate 22 carriers for hire, and equipment operated by a 23 telecommunications provider, licensed as a common carrier by 24 the Federal Communications Commission, which is permanently 25 installed in or affixed to aircraft moving in interstate 26 commerce. 27 (d) The use, in this State, of tangible personal 28 property that is acquired outside this State and caused to be 29 brought into this State by a person who has already paid a 30 tax in another State in respect to the sale, purchase, or use 31 of that property, to the extent of the amount of the tax 32 properly due and paid in the other State. 33 (e) The temporary storage, in this State, of tangible 34 personal property that is acquired outside this State and SB144 Enrolled -31- LRB9101598PTpk 1 that, after being brought into this State and stored here 2 temporarily, is used solely outside this State or is 3 physically attached to or incorporated into other tangible 4 personal property that is used solely outside this State, or 5 is altered by converting, fabricating, manufacturing, 6 printing, processing, or shaping, and, as altered, is used 7 solely outside this State. 8 (f) The temporary storage in this State of building 9 materials and fixtures that are acquired either in this State 10 or outside this State by an Illinois registered combination 11 retailer and construction contractor, and that the purchaser 12 thereafter uses outside this State by incorporating that 13 property into real estate located outside this State. 14 (g) The use or purchase of tangible personal property by 15 a common carrier by rail or motor that receives the physical 16 possession of the property in Illinois, and that transports 17 the property, or shares with another common carrier in the 18 transportation of the property, out of Illinois on a standard 19 uniform bill of lading showing the seller of the property as 20 the shipper or consignor of the property to a destination 21 outside Illinois, for use outside Illinois. 22 (h) The use, in this State, of a motor vehicle that was 23 sold in this State to a nonresident, even though the motor 24 vehicle is delivered to the nonresident in this State, if the 25 motor vehicle is not to be titled in this State, and if a 26 driveaway decal permit is issued to the motor vehicle as 27 provided in Section 3-603 of the Illinois Vehicle Code or if 28 the nonresident purchaser has vehicle registration plates to 29 transfer to the motor vehicle upon returning to his or her 30 home state. The issuance of the driveaway decal permit or 31 having the out-of-state registration plates to be transferred 32 shall be prima facie evidence that the motor vehicle will not 33 be titled in this State. 34 (Source: P.A. 90-519, eff. 6-1-98; 90-552, eff. 12-12-97.) SB144 Enrolled -32- LRB9101598PTpk 1 (35 ILCS 105/3-60) (from Ch. 120, par. 439.3-60) 2 Sec. 3-60. Rolling stock exemption. The rolling stock 3 exemption applies to rolling stock used by an interstate 4 carrier for hire, even just between points in Illinois, if 5 the rolling stock transports, for hire, persons whose 6 journeys or property whose shipments originate or terminate 7 outside Illinois. 8 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 9 86-953; 86-1394; 86-1475.) 10 (35 ILCS 105/3-65) (from Ch. 120, par. 439.3-65) 11 Sec. 3-65. R.O.T. nontaxability. If the seller of 12 tangible personal property for use would not be taxable under 13 the Retailers' Occupation Tax Act despite all elements of the 14 sale occurring in Illinois, then the tax imposed by this Act 15 does not apply to the use of the tangible personal property 16 in this State. 17 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 18 86-953; 86-1394; 86-1475.) 19 (35 ILCS 105/3-70) (from Ch. 120, par. 439.3-70) 20 Sec. 3-70. Property acquired by nonresident. The tax 21 imposed by this Act does not apply to the use, in this State, 22 of tangible personal property that is acquired outside this 23 State by a nonresident individual who then brings the 24 property to this State for use here and who has used the 25 property outside this State for at least 3 months before 26 bringing the property to this State. 27 Where a business that is not operated in Illinois, but is 28 operated in another State, is moved to Illinois or opens an 29 office, plant, or other business facility in Illinois, that 30 business shall not be taxed on its use, in Illinois, of used 31 tangible personal property, other than items of tangible 32 personal property that must be titled or registered with the SB144 Enrolled -33- LRB9101598PTpk 1 State of Illinois or whose registration with the United 2 States Government must be filed with the State of Illinois, 3 that the business bought outside Illinois and used outside 4 Illinois in the operation of the business for at least 3 5 months before moving the used property to Illinois for use in 6 this State. 7 "Acquired outside this State", whenever used in this Act, 8 in addition to its usual and popular meaning, also means the 9 delivery, outside Illinois, of tangible personal property 10 that is purchased in this State and delivered from a point in 11 this State to a point of delivery outside this State. 12 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 13 86-953; 86-1394; 86-1475; 87-876.) 14 (35 ILCS 105/3-75) (from Ch. 120, par. 439.3-75) 15 Sec. 3-75. Serviceman transfer. Tangible personal 16 property purchased by a serviceman, as defined in Section 2 17 of the Service Occupation Tax Act, is subject to the tax 18 imposed by this Act when purchased for transfer by the 19 serviceman incidental to completion of a maintenance 20 agreement. 21 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 22 86-953; 86-1394; 86-1475.) 23 (35 ILCS 105/3-80) (from Ch. 120, par. 439.3-80) 24 Sec. 3-80. Liability because of amendatory Act. 25 Revisions in Section 3 (now Sections 3 through 3-80) by 26 Public Act 85-1135 do not affect tax liability that arose 27 before January 1, 1990. 28 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928; 29 86-953; 86-1394; 86-1475.) 30 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 31 Sec. 9. Except as to motor vehicles, watercraft, SB144 Enrolled -34- LRB9101598PTpk 1 aircraft, and trailers that are required to be registered 2 with an agency of this State, each retailer required or 3 authorized to collect the tax imposed by this Act shall pay 4 to the Department the amount of such tax (except as otherwise 5 provided) at the time when he is required to file his return 6 for the period during which such tax was collected, less a 7 discount of 2.1% prior to January 1, 1990, and 1.75% on and 8 after January 1, 1990, or $5 per calendar year, whichever is 9 greater, which is allowed to reimburse the retailer for 10 expenses incurred in collecting the tax, keeping records, 11 preparing and filing returns, remitting the tax and supplying 12 data to the Department on request. In the case of retailers 13 who report and pay the tax on a transaction by transaction 14 basis, as provided in this Section, such discount shall be 15 taken with each such tax remittance instead of when such 16 retailer files his periodic return. A retailer need not 17 remit that part of any tax collected by him to the extent 18 that he is required to remit and does remit the tax imposed 19 by the Retailers' Occupation Tax Act, with respect to the 20 sale of the same property. 21 Where such tangible personal property is sold under a 22 conditional sales contract, or under any other form of sale 23 wherein the payment of the principal sum, or a part thereof, 24 is extended beyond the close of the period for which the 25 return is filed, the retailer, in collecting the tax (except 26 as to motor vehicles, watercraft, aircraft, and trailers that 27 are required to be registered with an agency of this State), 28 may collect for each tax return period, only the tax 29 applicable to that part of the selling price actually 30 received during such tax return period. 31 Except as provided in this Section, on or before the 32 twentieth day of each calendar month, such retailer shall 33 file a return for the preceding calendar month. Such return 34 shall be filed on forms prescribed by the Department and SB144 Enrolled -35- LRB9101598PTpk 1 shall furnish such information as the Department may 2 reasonably require. 3 The Department may require returns to be filed on a 4 quarterly basis. If so required, a return for each calendar 5 quarter shall be filed on or before the twentieth day of the 6 calendar month following the end of such calendar quarter. 7 The taxpayer shall also file a return with the Department for 8 each of the first two months of each calendar quarter, on or 9 before the twentieth day of the following calendar month, 10 stating: 11 1. The name of the seller; 12 2. The address of the principal place of business 13 from which he engages in the business of selling tangible 14 personal property at retail in this State; 15 3. The total amount of taxable receipts received by 16 him during the preceding calendar month from sales of 17 tangible personal property by him during such preceding 18 calendar month, including receipts from charge and time 19 sales, but less all deductions allowed by law; 20 4. The amount of credit provided in Section 2d of 21 this Act; 22 5. The amount of tax due; 23 5-5. The signature of the taxpayer; and 24 6. Such other reasonable information as the 25 Department may require. 26 If a taxpayer fails to sign a return within 30 days after 27 the proper notice and demand for signature by the Department, 28 the return shall be considered valid and any amount shown to 29 be due on the return shall be deemed assessed. 30 Beginning October 1, 1993, a taxpayer who has an average 31 monthly tax liability of $150,000 or more shall make all 32 payments required by rules of the Department by electronic 33 funds transfer. Beginning October 1, 1994, a taxpayer who has 34 an average monthly tax liability of $100,000 or more shall SB144 Enrolled -36- LRB9101598PTpk 1 make all payments required by rules of the Department by 2 electronic funds transfer. Beginning October 1, 1995, a 3 taxpayer who has an average monthly tax liability of $50,000 4 or more shall make all payments required by rules of the 5 Department by electronic funds transfer. The term "average 6 monthly tax liability" means the sum of the taxpayer's 7 liabilities under this Act, and under all other State and 8 local occupation and use tax laws administered by the 9 Department, for the immediately preceding calendar year 10 divided by 12. 11 Before August 1 of each year beginning in 1993, the 12 Department shall notify all taxpayers required to make 13 payments by electronic funds transfer. All taxpayers required 14 to make payments by electronic funds transfer shall make 15 those payments for a minimum of one year beginning on October 16 1. 17 Any taxpayer not required to make payments by electronic 18 funds transfer may make payments by electronic funds transfer 19 with the permission of the Department. 20 All taxpayers required to make payment by electronic 21 funds transfer and any taxpayers authorized to voluntarily 22 make payments by electronic funds transfer shall make those 23 payments in the manner authorized by the Department. 24 The Department shall adopt such rules as are necessary to 25 effectuate a program of electronic funds transfer and the 26 requirements of this Section. 27 If the taxpayer's average monthly tax liability to the 28 Department under this Act, the Retailers' Occupation Tax Act, 29 the Service Occupation Tax Act, the Service Use Tax Act was 30 $10,000 or more during the preceding 4 complete calendar 31 quarters, he shall file a return with the Department each 32 month by the 20th day of the month next following the month 33 during which such tax liability is incurred and shall make 34 payments to the Department on or before the 7th, 15th, 22nd SB144 Enrolled -37- LRB9101598PTpk 1 and last day of the month during which such liability is 2 incurred. If the month during which such tax liability is 3 incurred began prior to January 1, 1985, each payment shall 4 be in an amount equal to 1/4 of the taxpayer's actual 5 liability for the month or an amount set by the Department 6 not to exceed 1/4 of the average monthly liability of the 7 taxpayer to the Department for the preceding 4 complete 8 calendar quarters (excluding the month of highest liability 9 and the month of lowest liability in such 4 quarter period). 10 If the month during which such tax liability is incurred 11 begins on or after January 1, 1985, and prior to January 1, 12 1987, each payment shall be in an amount equal to 22.5% of 13 the taxpayer's actual liability for the month or 27.5% of the 14 taxpayer's liability for the same calendar month of the 15 preceding year. If the month during which such tax liability 16 is incurred begins on or after January 1, 1987, and prior to 17 January 1, 1988, each payment shall be in an amount equal to 18 22.5% of the taxpayer's actual liability for the month or 19 26.25% of the taxpayer's liability for the same calendar 20 month of the preceding year. If the month during which such 21 tax liability is incurred begins on or after January 1, 1988, 22 and prior to January 1, 1989, or begins on or after January 23 1, 1996, each payment shall be in an amount equal to 22.5% of 24 the taxpayer's actual liability for the month or 25% of the 25 taxpayer's liability for the same calendar month of the 26 preceding year. If the month during which such tax liability 27 is incurred begins on or after January 1, 1989, and prior to 28 January 1, 1996, each payment shall be in an amount equal to 29 22.5% of the taxpayer's actual liability for the month or 25% 30 of the taxpayer's liability for the same calendar month of 31 the preceding year or 100% of the taxpayer's actual liability 32 for the quarter monthly reporting period. The amount of such 33 quarter monthly payments shall be credited against the final 34 tax liability of the taxpayer's return for that month. Once SB144 Enrolled -38- LRB9101598PTpk 1 applicable, the requirement of the making of quarter monthly 2 payments to the Department shall continue until such 3 taxpayer's average monthly liability to the Department during 4 the preceding 4 complete calendar quarters (excluding the 5 month of highest liability and the month of lowest liability) 6 is less than $9,000, or until such taxpayer's average monthly 7 liability to the Department as computed for each calendar 8 quarter of the 4 preceding complete calendar quarter period 9 is less than $10,000. However, if a taxpayer can show the 10 Department that a substantial change in the taxpayer's 11 business has occurred which causes the taxpayer to anticipate 12 that his average monthly tax liability for the reasonably 13 foreseeable future will fall below $10,000, then such 14 taxpayer may petition the Department for change in such 15 taxpayer's reporting status. The Department shall change 16 such taxpayer's reporting status unless it finds that such 17 change is seasonal in nature and not likely to be long term. 18 If any such quarter monthly payment is not paid at the time 19 or in the amount required by this Section, then the taxpayer 20 shall be liable for penalties and interest on the difference 21 between the minimum amount due and the amount of such quarter 22 monthly payment actually and timely paid, except insofar as 23 the taxpayer has previously made payments for that month to 24 the Department in excess of the minimum payments previously 25 due as provided in this Section. The Department shall make 26 reasonable rules and regulations to govern the quarter 27 monthly payment amount and quarter monthly payment dates for 28 taxpayers who file on other than a calendar monthly basis. 29 If any such payment provided for in this Section exceeds 30 the taxpayer's liabilities under this Act, the Retailers' 31 Occupation Tax Act, the Service Occupation Tax Act and the 32 Service Use Tax Act, as shown by an original monthly return, 33 the Department shall issue to the taxpayer a credit 34 memorandum no later than 30 days after the date of payment, SB144 Enrolled -39- LRB9101598PTpk 1 which memorandum may be submitted by the taxpayer to the 2 Department in payment of tax liability subsequently to be 3 remitted by the taxpayer to the Department or be assigned by 4 the taxpayer to a similar taxpayer under this Act, the 5 Retailers' Occupation Tax Act, the Service Occupation Tax Act 6 or the Service Use Tax Act, in accordance with reasonable 7 rules and regulations to be prescribed by the Department, 8 except that if such excess payment is shown on an original 9 monthly return and is made after December 31, 1986, no credit 10 memorandum shall be issued, unless requested by the taxpayer. 11 If no such request is made, the taxpayer may credit such 12 excess payment against tax liability subsequently to be 13 remitted by the taxpayer to the Department under this Act, 14 the Retailers' Occupation Tax Act, the Service Occupation Tax 15 Act or the Service Use Tax Act, in accordance with reasonable 16 rules and regulations prescribed by the Department. If the 17 Department subsequently determines that all or any part of 18 the credit taken was not actually due to the taxpayer, the 19 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 20 by 2.1% or 1.75% of the difference between the credit taken 21 and that actually due, and the taxpayer shall be liable for 22 penalties and interest on such difference. 23 If the retailer is otherwise required to file a monthly 24 return and if the retailer's average monthly tax liability to 25 the Department does not exceed $200, the Department may 26 authorize his returns to be filed on a quarter annual basis, 27 with the return for January, February, and March of a given 28 year being due by April 20 of such year; with the return for 29 April, May and June of a given year being due by July 20 of 30 such year; with the return for July, August and September of 31 a given year being due by October 20 of such year, and with 32 the return for October, November and December of a given year 33 being due by January 20 of the following year. 34 If the retailer is otherwise required to file a monthly SB144 Enrolled -40- LRB9101598PTpk 1 or quarterly return and if the retailer's average monthly tax 2 liability to the Department does not exceed $50, the 3 Department may authorize his returns to be filed on an annual 4 basis, with the return for a given year being due by January 5 20 of the following year. 6 Such quarter annual and annual returns, as to form and 7 substance, shall be subject to the same requirements as 8 monthly returns. 9 Notwithstanding any other provision in this Act 10 concerning the time within which a retailer may file his 11 return, in the case of any retailer who ceases to engage in a 12 kind of business which makes him responsible for filing 13 returns under this Act, such retailer shall file a final 14 return under this Act with the Department not more than one 15 month after discontinuing such business. 16 In addition, with respect to motor vehicles, watercraft, 17 aircraft, and trailers that are required to be registered 18 with an agency of this State, every retailer selling this 19 kind of tangible personal property shall file, with the 20 Department, upon a form to be prescribed and supplied by the 21 Department, a separate return for each such item of tangible 22 personal property which the retailer sells, except that 23 where, in the same transaction, a retailer of aircraft, 24 watercraft, motor vehicles or trailers transfers more than 25 one aircraft, watercraft, motor vehicle or trailer to another 26 aircraft, watercraft, motor vehicle or trailer retailer for 27 the purpose of resale, that seller for resale may report the 28 transfer of all the aircraft, watercraft, motor vehicles or 29 trailers involved in that transaction to the Department on 30 the same uniform invoice-transaction reporting return form. 31 For purposes of this Section, "watercraft" means a Class 2, 32 Class 3, or Class 4 watercraft as defined in Section 3-2 of 33 the Boat Registration and Safety Act, a personal watercraft, 34 or any boat equipped with an inboard motor. SB144 Enrolled -41- LRB9101598PTpk 1 The transaction reporting return in the case of motor 2 vehicles or trailers that are required to be registered with 3 an agency of this State, shall be the same document as the 4 Uniform Invoice referred to in Section 5-402 of the Illinois 5 Vehicle Code and must show the name and address of the 6 seller; the name and address of the purchaser; the amount of 7 the selling price including the amount allowed by the 8 retailer for traded-in property, if any; the amount allowed 9 by the retailer for the traded-in tangible personal property, 10 if any, to the extent to which Section 2 of this Act allows 11 an exemption for the value of traded-in property; the balance 12 payable after deducting such trade-in allowance from the 13 total selling price; the amount of tax due from the retailer 14 with respect to such transaction; the amount of tax collected 15 from the purchaser by the retailer on such transaction (or 16 satisfactory evidence that such tax is not due in that 17 particular instance, if that is claimed to be the fact); the 18 place and date of the sale; a sufficient identification of 19 the property sold; such other information as is required in 20 Section 5-402 of the Illinois Vehicle Code, and such other 21 information as the Department may reasonably require. 22 The transaction reporting return in the case of 23 watercraft and aircraft must show the name and address of the 24 seller; the name and address of the purchaser; the amount of 25 the selling price including the amount allowed by the 26 retailer for traded-in property, if any; the amount allowed 27 by the retailer for the traded-in tangible personal property, 28 if any, to the extent to which Section 2 of this Act allows 29 an exemption for the value of traded-in property; the balance 30 payable after deducting such trade-in allowance from the 31 total selling price; the amount of tax due from the retailer 32 with respect to such transaction; the amount of tax collected 33 from the purchaser by the retailer on such transaction (or 34 satisfactory evidence that such tax is not due in that SB144 Enrolled -42- LRB9101598PTpk 1 particular instance, if that is claimed to be the fact); the 2 place and date of the sale, a sufficient identification of 3 the property sold, and such other information as the 4 Department may reasonably require. 5 Such transaction reporting return shall be filed not 6 later than 20 days after the date of delivery of the item 7 that is being sold, but may be filed by the retailer at any 8 time sooner than that if he chooses to do so. The 9 transaction reporting return and tax remittance or proof of 10 exemption from the tax that is imposed by this Act may be 11 transmitted to the Department by way of the State agency with 12 which, or State officer with whom, the tangible personal 13 property must be titled or registered (if titling or 14 registration is required) if the Department and such agency 15 or State officer determine that this procedure will expedite 16 the processing of applications for title or registration. 17 With each such transaction reporting return, the retailer 18 shall remit the proper amount of tax due (or shall submit 19 satisfactory evidence that the sale is not taxable if that is 20 the case), to the Department or its agents, whereupon the 21 Department shall issue, in the purchaser's name, a tax 22 receipt (or a certificate of exemption if the Department is 23 satisfied that the particular sale is tax exempt) which such 24 purchaser may submit to the agency with which, or State 25 officer with whom, he must title or register the tangible 26 personal property that is involved (if titling or 27 registration is required) in support of such purchaser's 28 application for an Illinois certificate or other evidence of 29 title or registration to such tangible personal property. 30 No retailer's failure or refusal to remit tax under this 31 Act precludes a user, who has paid the proper tax to the 32 retailer, from obtaining his certificate of title or other 33 evidence of title or registration (if titling or registration 34 is required) upon satisfying the Department that such user SB144 Enrolled -43- LRB9101598PTpk 1 has paid the proper tax (if tax is due) to the retailer. The 2 Department shall adopt appropriate rules to carry out the 3 mandate of this paragraph. 4 If the user who would otherwise pay tax to the retailer 5 wants the transaction reporting return filed and the payment 6 of tax or proof of exemption made to the Department before 7 the retailer is willing to take these actions and such user 8 has not paid the tax to the retailer, such user may certify 9 to the fact of such delay by the retailer, and may (upon the 10 Department being satisfied of the truth of such 11 certification) transmit the information required by the 12 transaction reporting return and the remittance for tax or 13 proof of exemption directly to the Department and obtain his 14 tax receipt or exemption determination, in which event the 15 transaction reporting return and tax remittance (if a tax 16 payment was required) shall be credited by the Department to 17 the proper retailer's account with the Department, but 18 without the 2.1% or 1.75% discount provided for in this 19 Section being allowed. When the user pays the tax directly 20 to the Department, he shall pay the tax in the same amount 21 and in the same form in which it would be remitted if the tax 22 had been remitted to the Department by the retailer. 23 Where a retailer collects the tax with respect to the 24 selling price of tangible personal property which he sells 25 and the purchaser thereafter returns such tangible personal 26 property and the retailer refunds the selling price thereof 27 to the purchaser, such retailer shall also refund, to the 28 purchaser, the tax so collected from the purchaser. When 29 filing his return for the period in which he refunds such tax 30 to the purchaser, the retailer may deduct the amount of the 31 tax so refunded by him to the purchaser from any other use 32 tax which such retailer may be required to pay or remit to 33 the Department, as shown by such return, if the amount of the 34 tax to be deducted was previously remitted to the Department SB144 Enrolled -44- LRB9101598PTpk 1 by such retailer. If the retailer has not previously 2 remitted the amount of such tax to the Department, he is 3 entitled to no deduction under this Act upon refunding such 4 tax to the purchaser. 5 Any retailer filing a return under this Section shall 6 also include (for the purpose of paying tax thereon) the 7 total tax covered by such return upon the selling price of 8 tangible personal property purchased by him at retail from a 9 retailer, but as to which the tax imposed by this Act was not 10 collected from the retailer filing such return, and such 11 retailer shall remit the amount of such tax to the Department 12 when filing such return. 13 If experience indicates such action to be practicable, 14 the Department may prescribe and furnish a combination or 15 joint return which will enable retailers, who are required to 16 file returns hereunder and also under the Retailers' 17 Occupation Tax Act, to furnish all the return information 18 required by both Acts on the one form. 19 Where the retailer has more than one business registered 20 with the Department under separate registration under this 21 Act, such retailer may not file each return that is due as a 22 single return covering all such registered businesses, but 23 shall file separate returns for each such registered 24 business. 25 Beginning January 1, 1990, each month the Department 26 shall pay into the State and Local Sales Tax Reform Fund, a 27 special fund in the State Treasury which is hereby created, 28 the net revenue realized for the preceding month from the 1% 29 tax on sales of food for human consumption which is to be 30 consumed off the premises where it is sold (other than 31 alcoholic beverages, soft drinks and food which has been 32 prepared for immediate consumption) and prescription and 33 nonprescription medicines, drugs, medical appliances and 34 insulin, urine testing materials, syringes and needles used SB144 Enrolled -45- LRB9101598PTpk 1 by diabetics. 2 Beginning January 1, 1990, each month the Department 3 shall pay into the County and Mass Transit District Fund 4% 4 of the net revenue realized for the preceding month from the 5 6.25% general rate on the selling price of tangible personal 6 property which is purchased outside Illinois at retail from a 7 retailer and which is titled or registered by an agency of 8 this State's government. 9 Beginning January 1, 1990, each month the Department 10 shall pay into the State and Local Sales Tax Reform Fund, a 11 special fund in the State Treasury, 20% of the net revenue 12 realized for the preceding month from the 6.25% general rate 13 on the selling price of tangible personal property, other 14 than tangible personal property which is purchased outside 15 Illinois at retail from a retailer and which is titled or 16 registered by an agency of this State's government. 17 Beginning January 1, 1990, each month the Department 18 shall pay into the Local Government Tax Fund 16% of the net 19 revenue realized for the preceding month from the 6.25% 20 general rate on the selling price of tangible personal 21 property which is purchased outside Illinois at retail from a 22 retailer and which is titled or registered by an agency of 23 this State's government. 24 Of the remainder of the moneys received by the Department 25 pursuant to this Act, (a) 1.75% thereof shall be paid into 26 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 27 and on and after July 1, 1989, 3.8% thereof shall be paid 28 into the Build Illinois Fund; provided, however, that if in 29 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 30 as the case may be, of the moneys received by the Department 31 and required to be paid into the Build Illinois Fund pursuant 32 to Section 3 of the Retailers' Occupation Tax Act, Section 9 33 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 34 Section 9 of the Service Occupation Tax Act, such Acts being SB144 Enrolled -46- LRB9101598PTpk 1 hereinafter called the "Tax Acts" and such aggregate of 2.2% 2 or 3.8%, as the case may be, of moneys being hereinafter 3 called the "Tax Act Amount", and (2) the amount transferred 4 to the Build Illinois Fund from the State and Local Sales Tax 5 Reform Fund shall be less than the Annual Specified Amount 6 (as defined in Section 3 of the Retailers' Occupation Tax 7 Act), an amount equal to the difference shall be immediately 8 paid into the Build Illinois Fund from other moneys received 9 by the Department pursuant to the Tax Acts; and further 10 provided, that if on the last business day of any month the 11 sum of (1) the Tax Act Amount required to be deposited into 12 the Build Illinois Bond Account in the Build Illinois Fund 13 during such month and (2) the amount transferred during such 14 month to the Build Illinois Fund from the State and Local 15 Sales Tax Reform Fund shall have been less than 1/12 of the 16 Annual Specified Amount, an amount equal to the difference 17 shall be immediately paid into the Build Illinois Fund from 18 other moneys received by the Department pursuant to the Tax 19 Acts; and, further provided, that in no event shall the 20 payments required under the preceding proviso result in 21 aggregate payments into the Build Illinois Fund pursuant to 22 this clause (b) for any fiscal year in excess of the greater 23 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 24 for such fiscal year; and, further provided, that the amounts 25 payable into the Build Illinois Fund under this clause (b) 26 shall be payable only until such time as the aggregate amount 27 on deposit under each trust indenture securing Bonds issued 28 and outstanding pursuant to the Build Illinois Bond Act is 29 sufficient, taking into account any future investment income, 30 to fully provide, in accordance with such indenture, for the 31 defeasance of or the payment of the principal of, premium, if 32 any, and interest on the Bonds secured by such indenture and 33 on any Bonds expected to be issued thereafter and all fees 34 and costs payable with respect thereto, all as certified by SB144 Enrolled -47- LRB9101598PTpk 1 the Director of the Bureau of the Budget. If on the last 2 business day of any month in which Bonds are outstanding 3 pursuant to the Build Illinois Bond Act, the aggregate of the 4 moneys deposited in the Build Illinois Bond Account in the 5 Build Illinois Fund in such month shall be less than the 6 amount required to be transferred in such month from the 7 Build Illinois Bond Account to the Build Illinois Bond 8 Retirement and Interest Fund pursuant to Section 13 of the 9 Build Illinois Bond Act, an amount equal to such deficiency 10 shall be immediately paid from other moneys received by the 11 Department pursuant to the Tax Acts to the Build Illinois 12 Fund; provided, however, that any amounts paid to the Build 13 Illinois Fund in any fiscal year pursuant to this sentence 14 shall be deemed to constitute payments pursuant to clause (b) 15 of the preceding sentence and shall reduce the amount 16 otherwise payable for such fiscal year pursuant to clause (b) 17 of the preceding sentence. The moneys received by the 18 Department pursuant to this Act and required to be deposited 19 into the Build Illinois Fund are subject to the pledge, claim 20 and charge set forth in Section 12 of the Build Illinois Bond 21 Act. 22 Subject to payment of amounts into the Build Illinois 23 Fund as provided in the preceding paragraph or in any 24 amendment thereto hereafter enacted, the following specified 25 monthly installment of the amount requested in the 26 certificate of the Chairman of the Metropolitan Pier and 27 Exposition Authority provided under Section 8.25f of the 28 State Finance Act, but not in excess of the sums designated 29 as "Total Deposit", shall be deposited in the aggregate from 30 collections under Section 9 of the Use Tax Act, Section 9 of 31 the Service Use Tax Act, Section 9 of the Service Occupation 32 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 33 into the McCormick Place Expansion Project Fund in the 34 specified fiscal years. SB144 Enrolled -48- LRB9101598PTpk 1 Fiscal Year Total Deposit 2 1993 $0 3 1994 53,000,000 4 1995 58,000,000 5 1996 61,000,000 6 1997 64,000,000 7 1998 68,000,000 8 1999 71,000,000 9 2000 75,000,000 10 2001 80,000,000 11 2002 84,000,000 12 2003 89,000,000 13 2004 93,000,000 14 2005 97,000,000 15 2006 102,000,000 16 2007 and 106,000,000 17 each fiscal year 18 thereafter that bonds 19 are outstanding under 20 Section 13.2 of the 21 Metropolitan Pier and 22 Exposition Authority 23 Act, but not after fiscal year 2029. 24 Beginning July 20, 1993 and in each month of each fiscal 25 year thereafter, one-eighth of the amount requested in the 26 certificate of the Chairman of the Metropolitan Pier and 27 Exposition Authority for that fiscal year, less the amount 28 deposited into the McCormick Place Expansion Project Fund by 29 the State Treasurer in the respective month under subsection 30 (g) of Section 13 of the Metropolitan Pier and Exposition 31 Authority Act, plus cumulative deficiencies in the deposits 32 required under this Section for previous months and years, 33 shall be deposited into the McCormick Place Expansion Project 34 Fund, until the full amount requested for the fiscal year, SB144 Enrolled -49- LRB9101598PTpk 1 but not in excess of the amount specified above as "Total 2 Deposit", has been deposited. 3 Subject to payment of amounts into the Build Illinois 4 Fund and the McCormick Place Expansion Project Fund pursuant 5 to the preceding paragraphs or in any amendment thereto 6 hereafter enacted, each month the Department shall pay into 7 the Local Government Distributive Fund .4% of the net revenue 8 realized for the preceding month from the 5% general rate, or 9 .4% of 80% of the net revenue realized for the preceding 10 month from the 6.25% general rate, as the case may be, on the 11 selling price of tangible personal property which amount 12 shall, subject to appropriation, be distributed as provided 13 in Section 2 of the State Revenue Sharing Act. No payments or 14 distributions pursuant to this paragraph shall be made if the 15 tax imposed by this Act on photoprocessing products is 16 declared unconstitutional, or if the proceeds from such tax 17 are unavailable for distribution because of litigation. 18 Subject to payment of amounts into the Build Illinois 19 Fund, the McCormick Place Expansion Project Fund, and the 20 Local Government Distributive Fund pursuant to the preceding 21 paragraphs or in any amendments thereto hereafter enacted, 22 beginning July 1, 1993, the Department shall each month pay 23 into the Illinois Tax Increment Fund 0.27% of 80% of the net 24 revenue realized for the preceding month from the 6.25% 25 general rate on the selling price of tangible personal 26 property. 27 Of the remainder of the moneys received by the Department 28 pursuant to this Act, 75% thereof shall be paid into the 29 State Treasury and 25% shall be reserved in a special account 30 and used only for the transfer to the Common School Fund as 31 part of the monthly transfer from the General Revenue Fund in 32 accordance with Section 8a of the State Finance Act. 33 As soon as possible after the first day of each month, 34 upon certification of the Department of Revenue, the SB144 Enrolled -50- LRB9101598PTpk 1 Comptroller shall order transferred and the Treasurer shall 2 transfer from the General Revenue Fund to the Motor Fuel Tax 3 Fund an amount equal to 1.7% of 80% of the net revenue 4 realized under this Act for the second preceding month; 5 except that this transfer shall not be made for the months 6 February through June of 1992. 7 Net revenue realized for a month shall be the revenue 8 collected by the State pursuant to this Act, less the amount 9 paid out during that month as refunds to taxpayers for 10 overpayment of liability. 11 For greater simplicity of administration, manufacturers, 12 importers and wholesalers whose products are sold at retail 13 in Illinois by numerous retailers, and who wish to do so, may 14 assume the responsibility for accounting and paying to the 15 Department all tax accruing under this Act with respect to 16 such sales, if the retailers who are affected do not make 17 written objection to the Department to this arrangement. 18 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 19 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.) 20 Section 120. The Service Use Tax Act is amended by 21 re-enacting Sections 2, 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 22 3-35, 3-40, 3-45, 3-50, 3-55, 3-60, 3-65, 3d, 7a, 9, 10, and 23 15 as follows: 24 (35 ILCS 110/2) (from Ch. 120, par. 439.32) 25 Sec. 2. "Use" means the exercise by any person of any 26 right or power over tangible personal property incident to 27 the ownership of that property, but does not include the sale 28 or use for demonstration by him of that property in any form 29 as tangible personal property in the regular course of 30 business. "Use" does not mean the interim use of tangible 31 personal property nor the physical incorporation of tangible 32 personal property, as an ingredient or constituent, into SB144 Enrolled -51- LRB9101598PTpk 1 other tangible personal property, (a) which is sold in the 2 regular course of business or (b) which the person 3 incorporating such ingredient or constituent therein has 4 undertaken at the time of such purchase to cause to be 5 transported in interstate commerce to destinations outside 6 the State of Illinois. 7 "Purchased from a serviceman" means the acquisition of 8 the ownership of, or title to, tangible personal property 9 through a sale of service. 10 "Purchaser" means any person who, through a sale of 11 service, acquires the ownership of, or title to, any tangible 12 personal property. 13 "Cost price" means the consideration paid by the 14 serviceman for a purchase valued in money, whether paid in 15 money or otherwise, including cash, credits and services, and 16 shall be determined without any deduction on account of the 17 supplier's cost of the property sold or on account of any 18 other expense incurred by the supplier. When a serviceman 19 contracts out part or all of the services required in his 20 sale of service, it shall be presumed that the cost price to 21 the serviceman of the property transferred to him or her by 22 his or her subcontractor is equal to 50% of the 23 subcontractor's charges to the serviceman in the absence of 24 proof of the consideration paid by the subcontractor for the 25 purchase of such property. 26 "Selling price" means the consideration for a sale valued 27 in money whether received in money or otherwise, including 28 cash, credits and service, and shall be determined without 29 any deduction on account of the serviceman's cost of the 30 property sold, the cost of materials used, labor or service 31 cost or any other expense whatsoever, but does not include 32 interest or finance charges which appear as separate items on 33 the bill of sale or sales contract nor charges that are added 34 to prices by sellers on account of the seller's duty to SB144 Enrolled -52- LRB9101598PTpk 1 collect, from the purchaser, the tax that is imposed by this 2 Act. 3 "Department" means the Department of Revenue. 4 "Person" means any natural individual, firm, partnership, 5 association, joint stock company, joint venture, public or 6 private corporation, limited liability company, and any 7 receiver, executor, trustee, guardian or other representative 8 appointed by order of any court. 9 "Sale of service" means any transaction except: 10 (1) a retail sale of tangible personal property 11 taxable under the Retailers' Occupation Tax Act or under 12 the Use Tax Act. 13 (2) a sale of tangible personal property for the 14 purpose of resale made in compliance with Section 2c of 15 the Retailers' Occupation Tax Act. 16 (3) except as hereinafter provided, a sale or 17 transfer of tangible personal property as an incident to 18 the rendering of service for or by any governmental body, 19 or for or by any corporation, society, association, 20 foundation or institution organized and operated 21 exclusively for charitable, religious or educational 22 purposes or any not-for-profit corporation, society, 23 association, foundation, institution or organization 24 which has no compensated officers or employees and which 25 is organized and operated primarily for the recreation of 26 persons 55 years of age or older. A limited liability 27 company may qualify for the exemption under this 28 paragraph only if the limited liability company is 29 organized and operated exclusively for educational 30 purposes. 31 (4) a sale or transfer of tangible personal 32 property as an incident to the rendering of service for 33 interstate carriers for hire for use as rolling stock 34 moving in interstate commerce or by lessors under a lease SB144 Enrolled -53- LRB9101598PTpk 1 of one year or longer, executed or in effect at the time 2 of purchase of personal property, to interstate carriers 3 for hire for use as rolling stock moving in interstate 4 commerce so long as so used by such interstate carriers 5 for hire, and equipment operated by a telecommunications 6 provider, licensed as a common carrier by the Federal 7 Communications Commission, which is permanently installed 8 in or affixed to aircraft moving in interstate commerce. 9 (4a) a sale or transfer of tangible personal 10 property as an incident to the rendering of service for 11 owners, lessors, or shippers of tangible personal 12 property which is utilized by interstate carriers for 13 hire for use as rolling stock moving in interstate 14 commerce so long as so used by interstate carriers for 15 hire, and equipment operated by a telecommunications 16 provider, licensed as a common carrier by the Federal 17 Communications Commission, which is permanently installed 18 in or affixed to aircraft moving in interstate commerce. 19 (5) a sale or transfer of machinery and equipment 20 used primarily in the process of the manufacturing or 21 assembling, either in an existing, an expanded or a new 22 manufacturing facility, of tangible personal property for 23 wholesale or retail sale or lease, whether such sale or 24 lease is made directly by the manufacturer or by some 25 other person, whether the materials used in the process 26 are owned by the manufacturer or some other person, or 27 whether such sale or lease is made apart from or as an 28 incident to the seller's engaging in a service occupation 29 and the applicable tax is a Service Use Tax or Service 30 Occupation Tax, rather than Use Tax or Retailers' 31 Occupation Tax. 32 (5a) the repairing, reconditioning or remodeling, 33 for a common carrier by rail, of tangible personal 34 property which belongs to such carrier for hire, and as SB144 Enrolled -54- LRB9101598PTpk 1 to which such carrier receives the physical possession of 2 the repaired, reconditioned or remodeled item of tangible 3 personal property in Illinois, and which such carrier 4 transports, or shares with another common carrier in the 5 transportation of such property, out of Illinois on a 6 standard uniform bill of lading showing the person who 7 repaired, reconditioned or remodeled the property to a 8 destination outside Illinois, for use outside Illinois. 9 (5b) a sale or transfer of tangible personal 10 property which is produced by the seller thereof on 11 special order in such a way as to have made the 12 applicable tax the Service Occupation Tax or the Service 13 Use Tax, rather than the Retailers' Occupation Tax or the 14 Use Tax, for an interstate carrier by rail which receives 15 the physical possession of such property in Illinois, and 16 which transports such property, or shares with another 17 common carrier in the transportation of such property, 18 out of Illinois on a standard uniform bill of lading 19 showing the seller of the property as the shipper or 20 consignor of such property to a destination outside 21 Illinois, for use outside Illinois. 22 (6) a sale or transfer of distillation machinery 23 and equipment, sold as a unit or kit and assembled or 24 installed by the retailer, which machinery and equipment 25 is certified by the user to be used only for the 26 production of ethyl alcohol that will be used for 27 consumption as motor fuel or as a component of motor fuel 28 for the personal use of such user and not subject to sale 29 or resale. 30 (7) at the election of any serviceman not required 31 to be otherwise registered as a retailer under Section 2a 32 of the Retailers' Occupation Tax Act, made for each 33 fiscal year sales of service in which the aggregate 34 annual cost price of tangible personal property SB144 Enrolled -55- LRB9101598PTpk 1 transferred as an incident to the sales of service is 2 less than 35%, or 75% in the case of servicemen 3 transferring prescription drugs or servicemen engaged in 4 graphic arts production, of the aggregate annual total 5 gross receipts from all sales of service. The purchase of 6 such tangible personal property by the serviceman shall 7 be subject to tax under the Retailers' Occupation Tax Act 8 and the Use Tax Act. However, if a primary serviceman 9 who has made the election described in this paragraph 10 subcontracts service work to a secondary serviceman who 11 has also made the election described in this paragraph, 12 the primary serviceman does not incur a Use Tax liability 13 if the secondary serviceman (i) has paid or will pay Use 14 Tax on his or her cost price of any tangible personal 15 property transferred to the primary serviceman and (ii) 16 certifies that fact in writing to the primary serviceman. 17 Tangible personal property transferred incident to the 18 completion of a maintenance agreement is exempt from the tax 19 imposed pursuant to this Act. 20 Exemption (5) also includes machinery and equipment used 21 in the general maintenance or repair of such exempt machinery 22 and equipment or for in-house manufacture of exempt machinery 23 and equipment. For the purposes of exemption (5), each of 24 these terms shall have the following meanings: (1) 25 "manufacturing process" shall mean the production of any 26 article of tangible personal property, whether such article 27 is a finished product or an article for use in the process of 28 manufacturing or assembling a different article of tangible 29 personal property, by procedures commonly regarded as 30 manufacturing, processing, fabricating, or refining which 31 changes some existing material or materials into a material 32 with a different form, use or name. In relation to a 33 recognized integrated business composed of a series of 34 operations which collectively constitute manufacturing, or SB144 Enrolled -56- LRB9101598PTpk 1 individually constitute manufacturing operations, the 2 manufacturing process shall be deemed to commence with the 3 first operation or stage of production in the series, and 4 shall not be deemed to end until the completion of the final 5 product in the last operation or stage of production in the 6 series; and further, for purposes of exemption (5), 7 photoprocessing is deemed to be a manufacturing process of 8 tangible personal property for wholesale or retail sale; (2) 9 "assembling process" shall mean the production of any article 10 of tangible personal property, whether such article is a 11 finished product or an article for use in the process of 12 manufacturing or assembling a different article of tangible 13 personal property, by the combination of existing materials 14 in a manner commonly regarded as assembling which results in 15 a material of a different form, use or name; (3) "machinery" 16 shall mean major mechanical machines or major components of 17 such machines contributing to a manufacturing or assembling 18 process; and (4) "equipment" shall include any independent 19 device or tool separate from any machinery but essential to 20 an integrated manufacturing or assembly process; including 21 computers used primarily in operating exempt machinery and 22 equipment in a computer assisted design, computer assisted 23 manufacturing (CAD/CAM) system; or any subunit or assembly 24 comprising a component of any machinery or auxiliary, adjunct 25 or attachment parts of machinery, such as tools, dies, jigs, 26 fixtures, patterns and molds; or any parts which require 27 periodic replacement in the course of normal operation; but 28 shall not include hand tools. The purchaser of such machinery 29 and equipment who has an active resale registration number 30 shall furnish such number to the seller at the time of 31 purchase. The user of such machinery and equipment and tools 32 without an active resale registration number shall prepare a 33 certificate of exemption for each transaction stating facts 34 establishing the exemption for that transaction, which SB144 Enrolled -57- LRB9101598PTpk 1 certificate shall be available to the Department for 2 inspection or audit. The Department shall prescribe the form 3 of the certificate. 4 Any informal rulings, opinions or letters issued by the 5 Department in response to an inquiry or request for any 6 opinion from any person regarding the coverage and 7 applicability of exemption (5) to specific devices shall be 8 published, maintained as a public record, and made available 9 for public inspection and copying. If the informal ruling, 10 opinion or letter contains trade secrets or other 11 confidential information, where possible the Department shall 12 delete such information prior to publication. Whenever such 13 informal rulings, opinions, or letters contain any policy of 14 general applicability, the Department shall formulate and 15 adopt such policy as a rule in accordance with the provisions 16 of the Illinois Administrative Procedure Act. 17 On and after July 1, 1987, no entity otherwise eligible 18 under exemption (3) of this Section shall make tax free 19 purchases unless it has an active exemption identification 20 number issued by the Department. 21 The purchase, employment and transfer of such tangible 22 personal property as newsprint and ink for the primary 23 purpose of conveying news (with or without other information) 24 is not a purchase, use or sale of service or of tangible 25 personal property within the meaning of this Act. 26 "Serviceman" means any person who is engaged in the 27 occupation of making sales of service. 28 "Sale at retail" means "sale at retail" as defined in the 29 Retailers' Occupation Tax Act. 30 "Supplier" means any person who makes sales of tangible 31 personal property to servicemen for the purpose of resale as 32 an incident to a sale of service. 33 "Serviceman maintaining a place of business in this 34 State", or any like term, means and includes any serviceman: SB144 Enrolled -58- LRB9101598PTpk 1 1. having or maintaining within this State, 2 directly or by a subsidiary, an office, distribution 3 house, sales house, warehouse or other place of business, 4 or any agent or other representative operating within 5 this State under the authority of the serviceman or its 6 subsidiary, irrespective of whether such place of 7 business or agent or other representative is located here 8 permanently or temporarily, or whether such serviceman or 9 subsidiary is licensed to do business in this State; 10 2. soliciting orders for tangible personal property 11 by means of a telecommunication or television shopping 12 system (which utilizes toll free numbers) which is 13 intended by the retailer to be broadcast by cable 14 television or other means of broadcasting, to consumers 15 located in this State; 16 3. pursuant to a contract with a broadcaster or 17 publisher located in this State, soliciting orders for 18 tangible personal property by means of advertising which 19 is disseminated primarily to consumers located in this 20 State and only secondarily to bordering jurisdictions; 21 4. soliciting orders for tangible personal property 22 by mail if the solicitations are substantial and 23 recurring and if the retailer benefits from any banking, 24 financing, debt collection, telecommunication, or 25 marketing activities occurring in this State or benefits 26 from the location in this State of authorized 27 installation,