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| [ Introduced ] | [ Senate Amendment 001 ] |
91_SB0417eng SB417 Engrossed LRB9102412PTcd 1 AN ACT concerning taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Use Tax Act is amended by changing 5 Section 3-5 as follows: 6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 7 Sec. 3-5. Exemptions. Use of the following tangible 8 personal property is exempt from the tax imposed by this Act: 9 (1) Personal property purchased from a corporation, 10 society, association, foundation, institution, or 11 organization, other than a limited liability company, that is 12 organized and operated as a not-for-profit service enterprise 13 for the benefit of persons 65 years of age or older if the 14 personal property was not purchased by the enterprise for the 15 purpose of resale by the enterprise. 16 (2) Personal property purchased by a not-for-profit 17 Illinois county fair association for use in conducting, 18 operating, or promoting the county fair. 19 (3) Personal property purchased by a not-for-profit 20 music or dramatic arts organization that establishes, by 21 proof required by the Department by rule, that it has 22 received an exemption under Section 501(c)(3) of the Internal 23 Revenue Code and that is organized and operated for the 24 presentation of live public performances of musical or 25 theatrical works on a regular basis. 26 (4) Personal property purchased by a governmental body, 27 by a corporation, society, association, foundation, or 28 institution organized and operated exclusively for 29 charitable, religious, or educational purposes, or by a 30 not-for-profit corporation, society, association, foundation, 31 institution, or organization that has no compensated officers SB417 Engrossed -2- LRB9102412PTcd 1 or employees and that is organized and operated primarily for 2 the recreation of persons 55 years of age or older. A limited 3 liability company may qualify for the exemption under this 4 paragraph only if the limited liability company is organized 5 and operated exclusively for educational purposes. On and 6 after July 1, 1987, however, no entity otherwise eligible for 7 this exemption shall make tax-free purchases unless it has an 8 active exemption identification number issued by the 9 Department. 10 (5) A passenger car that is a replacement vehicle to the 11 extent that the purchase price of the car is subject to the 12 Replacement Vehicle Tax. 13 (6) Graphic arts machinery and equipment, including 14 repair and replacement parts, both new and used, and 15 including that manufactured on special order, certified by 16 the purchaser to be used primarily for graphic arts 17 production, and including machinery and equipment purchased 18 for lease. 19 (7) Farm chemicals. 20 (8) Legal tender, currency, medallions, or gold or 21 silver coinage issued by the State of Illinois, the 22 government of the United States of America, or the government 23 of any foreign country, and bullion. 24 (9) Personal property purchased from a teacher-sponsored 25 student organization affiliated with an elementary or 26 secondary school located in Illinois. 27 (10) A motor vehicle of the first division, a motor 28 vehicle of the second division that is a self-contained motor 29 vehicle designed or permanently converted to provide living 30 quarters for recreational, camping, or travel use, with 31 direct walk through to the living quarters from the driver's 32 seat, or a motor vehicle of the second division that is of 33 the van configuration designed for the transportation of not 34 less than 7 nor more than 16 passengers, as defined in SB417 Engrossed -3- LRB9102412PTcd 1 Section 1-146 of the Illinois Vehicle Code, that is used for 2 automobile renting, as defined in the Automobile Renting 3 Occupation and Use Tax Act. 4 (11) Farm machinery and equipment, both new and used, 5 including that manufactured on special order, certified by 6 the purchaser to be used primarily for production agriculture 7 or State or federal agricultural programs, including 8 individual replacement parts for the machinery and equipment, 9 including machinery and equipment purchased for lease, and 10 including implements of husbandry defined in Section 1-130 of 11 the Illinois Vehicle Code, farm machinery and agricultural 12 chemical and fertilizer spreaders, and nurse wagons required 13 to be registered under Section 3-809 of the Illinois Vehicle 14 Code, but excluding other motor vehicles required to be 15 registered under the Illinois Vehicle Code. Horticultural 16 polyhouses or hoop houses used for propagating, growing, or 17 overwintering plants shall be considered farm machinery and 18 equipment under this item (11). Agricultural chemical tender 19 tanks and dry boxes shall include units sold separately from 20 a motor vehicle required to be licensed and units sold 21 mounted on a motor vehicle required to be licensed if the 22 selling price of the tender is separately stated. 23 Farm machinery and equipment shall include precision 24 farming equipment that is installed or purchased to be 25 installed on farm machinery and equipment including, but not 26 limited to, tractors, harvesters, sprayers, planters, 27 seeders, or spreaders. Precision farming equipment includes, 28 but is not limited to, soil testing sensors, computers, 29 monitors, software, global positioning and mapping systems, 30 and other such equipment. 31 Farm machinery and equipment also includes computers, 32 sensors, software, and related equipment used primarily in 33 the computer-assisted operation of production agriculture 34 facilities, equipment, and activities such as, but not SB417 Engrossed -4- LRB9102412PTcd 1 limited to, the collection, monitoring, and correlation of 2 animal and crop data for the purpose of formulating animal 3 diets and agricultural chemicals. This item (11) is exempt 4 from the provisions of Section 3-90. 5 (12) Fuel and petroleum products sold to or used by an 6 air common carrier, certified by the carrier to be used for 7 consumption, shipment, or storage in the conduct of its 8 business as an air common carrier, for a flight destined for 9 or returning from a location or locations outside the United 10 States without regard to previous or subsequent domestic 11 stopovers. 12 (13) Proceeds of mandatory service charges separately 13 stated on customers' bills for the purchase and consumption 14 of food and beverages purchased at retail from a retailer, to 15 the extent that the proceeds of the service charge are in 16 fact turned over as tips or as a substitute for tips to the 17 employees who participate directly in preparing, serving, 18 hosting or cleaning up the food or beverage function with 19 respect to which the service charge is imposed. 20 (14) Oil field exploration, drilling, and production 21 equipment, including (i) rigs and parts of rigs, rotary rigs, 22 cable tool rigs, and workover rigs, (ii) pipe and tubular 23 goods, including casing and drill strings, (iii) pumps and 24 pump-jack units, (iv) storage tanks and flow lines, (v) any 25 individual replacement part for oil field exploration, 26 drilling, and production equipment, and (vi) machinery and 27 equipment purchased for lease; but excluding motor vehicles 28 required to be registered under the Illinois Vehicle Code. 29 (15) Photoprocessing machinery and equipment, including 30 repair and replacement parts, both new and used, including 31 that manufactured on special order, certified by the 32 purchaser to be used primarily for photoprocessing, and 33 including photoprocessing machinery and equipment purchased 34 for lease. SB417 Engrossed -5- LRB9102412PTcd 1 (16) Coal exploration, mining, offhighway hauling, 2 processing, maintenance, and reclamation equipment, including 3 replacement parts and equipment, and including equipment 4 purchased for lease, but excluding motor vehicles required to 5 be registered under the Illinois Vehicle Code. 6 (17) Distillation machinery and equipment, sold as a 7 unit or kit, assembled or installed by the retailer, 8 certified by the user to be used only for the production of 9 ethyl alcohol that will be used for consumption as motor fuel 10 or as a component of motor fuel for the personal use of the 11 user, and not subject to sale or resale. 12 (18) Manufacturing and assembling machinery and 13 equipment used primarily in the process of manufacturing or 14 assembling tangible personal property for wholesale or retail 15 sale or lease, whether that sale or lease is made directly by 16 the manufacturer or by some other person, whether the 17 materials used in the process are owned by the manufacturer 18 or some other person, or whether that sale or lease is made 19 apart from or as an incident to the seller's engaging in the 20 service occupation of producing machines, tools, dies, jigs, 21 patterns, gauges, or other similar items of no commercial 22 value on special order for a particular purchaser. 23 (19) Personal property delivered to a purchaser or 24 purchaser's donee inside Illinois when the purchase order for 25 that personal property was received by a florist located 26 outside Illinois who has a florist located inside Illinois 27 deliver the personal property. 28 (20) Semen used for artificial insemination of livestock 29 for direct agricultural production. 30 (21) Horses, or interests in horses, registered with and 31 meeting the requirements of any of the Arabian Horse Club 32 Registry of America, Appaloosa Horse Club, American Quarter 33 Horse Association, United States Trotting Association, or 34 Jockey Club, as appropriate, used for purposes of breeding or SB417 Engrossed -6- LRB9102412PTcd 1 racing for prizes. 2 (22) Computers and communications equipment utilized for 3 any hospital purpose and equipment used in the diagnosis, 4 analysis, or treatment of hospital patients purchased by a 5 lessor who leases the equipment, under a lease of one year or 6 longer executed or in effect at the time the lessor would 7 otherwise be subject to the tax imposed by this Act, to a 8 hospital that has been issued an active tax exemption 9 identification number by the Department under Section 1g of 10 the Retailers' Occupation Tax Act. If the equipment is 11 leased in a manner that does not qualify for this exemption 12 or is used in any other non-exempt manner, the lessor shall 13 be liable for the tax imposed under this Act or the Service 14 Use Tax Act, as the case may be, based on the fair market 15 value of the property at the time the non-qualifying use 16 occurs. No lessor shall collect or attempt to collect an 17 amount (however designated) that purports to reimburse that 18 lessor for the tax imposed by this Act or the Service Use Tax 19 Act, as the case may be, if the tax has not been paid by the 20 lessor. If a lessor improperly collects any such amount from 21 the lessee, the lessee shall have a legal right to claim a 22 refund of that amount from the lessor. If, however, that 23 amount is not refunded to the lessee for any reason, the 24 lessor is liable to pay that amount to the Department. 25 (23) Personal property purchased by a lessor who leases 26 the property, under a lease of one year or longer executed 27 or in effect at the time the lessor would otherwise be 28 subject to the tax imposed by this Act, to a governmental 29 body that has been issued an active sales tax exemption 30 identification number by the Department under Section 1g of 31 the Retailers' Occupation Tax Act. If the property is leased 32 in a manner that does not qualify for this exemption or used 33 in any other non-exempt manner, the lessor shall be liable 34 for the tax imposed under this Act or the Service Use Tax SB417 Engrossed -7- LRB9102412PTcd 1 Act, as the case may be, based on the fair market value of 2 the property at the time the non-qualifying use occurs. No 3 lessor shall collect or attempt to collect an amount (however 4 designated) that purports to reimburse that lessor for the 5 tax imposed by this Act or the Service Use Tax Act, as the 6 case may be, if the tax has not been paid by the lessor. If 7 a lessor improperly collects any such amount from the lessee, 8 the lessee shall have a legal right to claim a refund of that 9 amount from the lessor. If, however, that amount is not 10 refunded to the lessee for any reason, the lessor is liable 11 to pay that amount to the Department. 12 (24) Beginning with taxable years ending on or after 13 December 31, 1995 and ending with taxable years ending on or 14 before December 31, 2004, personal property that is donated 15 for disaster relief to be used in a State or federally 16 declared disaster area in Illinois or bordering Illinois by a 17 manufacturer or retailer that is registered in this State to 18 a corporation, society, association, foundation, or 19 institution that has been issued a sales tax exemption 20 identification number by the Department that assists victims 21 of the disaster who reside within the declared disaster area. 22 (25) Beginning with taxable years ending on or after 23 December 31, 1995 and ending with taxable years ending on or 24 before December 31, 2004, personal property that is used in 25 the performance of infrastructure repairs in this State, 26 including but not limited to municipal roads and streets, 27 access roads, bridges, sidewalks, waste disposal systems, 28 water and sewer line extensions, water distribution and 29 purification facilities, storm water drainage and retention 30 facilities, and sewage treatment facilities, resulting from a 31 State or federally declared disaster in Illinois or bordering 32 Illinois when such repairs are initiated on facilities 33 located in the declared disaster area within 6 months after 34 the disaster. SB417 Engrossed -8- LRB9102412PTcd 1 (26) Beginning January 1, 2000, new or used automatic 2 vending machines that prepare and serve hot food and 3 beverages, including coffee, soup, and other items, and 4 replacement parts for these machines. This paragraph is 5 exempt from the provisions of Section 3-90. 6 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 7 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 8 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 9 eff. 12-12-97; 90-605, eff. 6-30-98.) 10 Section 10. The Service Use Tax Act is amended by 11 changing Section 3-5 as follows: 12 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 13 Sec. 3-5. Exemptions. Use of the following tangible 14 personal property is exempt from the tax imposed by this Act: 15 (1) Personal property purchased from a corporation, 16 society, association, foundation, institution, or 17 organization, other than a limited liability company, that is 18 organized and operated as a not-for-profit service enterprise 19 for the benefit of persons 65 years of age or older if the 20 personal property was not purchased by the enterprise for the 21 purpose of resale by the enterprise. 22 (2) Personal property purchased by a non-profit Illinois 23 county fair association for use in conducting, operating, or 24 promoting the county fair. 25 (3) Personal property purchased by a not-for-profit 26 music or dramatic arts organization that establishes, by 27 proof required by the Department by rule, that it has 28 received an exemption under Section 501(c)(3) of the Internal 29 Revenue Code and that is organized and operated for the 30 presentation of live public performances of musical or 31 theatrical works on a regular basis. 32 (4) Legal tender, currency, medallions, or gold or SB417 Engrossed -9- LRB9102412PTcd 1 silver coinage issued by the State of Illinois, the 2 government of the United States of America, or the government 3 of any foreign country, and bullion. 4 (5) Graphic arts machinery and equipment, including 5 repair and replacement parts, both new and used, and 6 including that manufactured on special order or purchased for 7 lease, certified by the purchaser to be used primarily for 8 graphic arts production. 9 (6) Personal property purchased from a teacher-sponsored 10 student organization affiliated with an elementary or 11 secondary school located in Illinois. 12 (7) Farm machinery and equipment, both new and used, 13 including that manufactured on special order, certified by 14 the purchaser to be used primarily for production agriculture 15 or State or federal agricultural programs, including 16 individual replacement parts for the machinery and equipment, 17 including machinery and equipment purchased for lease, and 18 including implements of husbandry defined in Section 1-130 of 19 the Illinois Vehicle Code, farm machinery and agricultural 20 chemical and fertilizer spreaders, and nurse wagons required 21 to be registered under Section 3-809 of the Illinois Vehicle 22 Code, but excluding other motor vehicles required to be 23 registered under the Illinois Vehicle Code. Horticultural 24 polyhouses or hoop houses used for propagating, growing, or 25 overwintering plants shall be considered farm machinery and 26 equipment under this item (7). Agricultural chemical tender 27 tanks and dry boxes shall include units sold separately from 28 a motor vehicle required to be licensed and units sold 29 mounted on a motor vehicle required to be licensed if the 30 selling price of the tender is separately stated. 31 Farm machinery and equipment shall include precision 32 farming equipment that is installed or purchased to be 33 installed on farm machinery and equipment including, but not 34 limited to, tractors, harvesters, sprayers, planters, SB417 Engrossed -10- LRB9102412PTcd 1 seeders, or spreaders. Precision farming equipment includes, 2 but is not limited to, soil testing sensors, computers, 3 monitors, software, global positioning and mapping systems, 4 and other such equipment. 5 Farm machinery and equipment also includes computers, 6 sensors, software, and related equipment used primarily in 7 the computer-assisted operation of production agriculture 8 facilities, equipment, and activities such as, but not 9 limited to, the collection, monitoring, and correlation of 10 animal and crop data for the purpose of formulating animal 11 diets and agricultural chemicals. This item (7) is exempt 12 from the provisions of Section 3-75. 13 (8) Fuel and petroleum products sold to or used by an 14 air common carrier, certified by the carrier to be used for 15 consumption, shipment, or storage in the conduct of its 16 business as an air common carrier, for a flight destined for 17 or returning from a location or locations outside the United 18 States without regard to previous or subsequent domestic 19 stopovers. 20 (9) Proceeds of mandatory service charges separately 21 stated on customers' bills for the purchase and consumption 22 of food and beverages acquired as an incident to the purchase 23 of a service from a serviceman, to the extent that the 24 proceeds of the service charge are in fact turned over as 25 tips or as a substitute for tips to the employees who 26 participate directly in preparing, serving, hosting or 27 cleaning up the food or beverage function with respect to 28 which the service charge is imposed. 29 (10) Oil field exploration, drilling, and production 30 equipment, including (i) rigs and parts of rigs, rotary rigs, 31 cable tool rigs, and workover rigs, (ii) pipe and tubular 32 goods, including casing and drill strings, (iii) pumps and 33 pump-jack units, (iv) storage tanks and flow lines, (v) any 34 individual replacement part for oil field exploration, SB417 Engrossed -11- LRB9102412PTcd 1 drilling, and production equipment, and (vi) machinery and 2 equipment purchased for lease; but excluding motor vehicles 3 required to be registered under the Illinois Vehicle Code. 4 (11) Proceeds from the sale of photoprocessing machinery 5 and equipment, including repair and replacement parts, both 6 new and used, including that manufactured on special order, 7 certified by the purchaser to be used primarily for 8 photoprocessing, and including photoprocessing machinery and 9 equipment purchased for lease. 10 (12) Coal exploration, mining, offhighway hauling, 11 processing, maintenance, and reclamation equipment, including 12 replacement parts and equipment, and including equipment 13 purchased for lease, but excluding motor vehicles required to 14 be registered under the Illinois Vehicle Code. 15 (13) Semen used for artificial insemination of livestock 16 for direct agricultural production. 17 (14) Horses, or interests in horses, registered with and 18 meeting the requirements of any of the Arabian Horse Club 19 Registry of America, Appaloosa Horse Club, American Quarter 20 Horse Association, United States Trotting Association, or 21 Jockey Club, as appropriate, used for purposes of breeding or 22 racing for prizes. 23 (15) Computers and communications equipment utilized for 24 any hospital purpose and equipment used in the diagnosis, 25 analysis, or treatment of hospital patients purchased by a 26 lessor who leases the equipment, under a lease of one year or 27 longer executed or in effect at the time the lessor would 28 otherwise be subject to the tax imposed by this Act, to a 29 hospital that has been issued an active tax exemption 30 identification number by the Department under Section 1g of 31 the Retailers' Occupation Tax Act. If the equipment is leased 32 in a manner that does not qualify for this exemption or is 33 used in any other non-exempt manner, the lessor shall be 34 liable for the tax imposed under this Act or the Use Tax Act, SB417 Engrossed -12- LRB9102412PTcd 1 as the case may be, based on the fair market value of the 2 property at the time the non-qualifying use occurs. No 3 lessor shall collect or attempt to collect an amount (however 4 designated) that purports to reimburse that lessor for the 5 tax imposed by this Act or the Use Tax Act, as the case may 6 be, if the tax has not been paid by the lessor. If a lessor 7 improperly collects any such amount from the lessee, the 8 lessee shall have a legal right to claim a refund of that 9 amount from the lessor. If, however, that amount is not 10 refunded to the lessee for any reason, the lessor is liable 11 to pay that amount to the Department. 12 (16) Personal property purchased by a lessor who leases 13 the property, under a lease of one year or longer executed or 14 in effect at the time the lessor would otherwise be subject 15 to the tax imposed by this Act, to a governmental body that 16 has been issued an active tax exemption identification number 17 by the Department under Section 1g of the Retailers' 18 Occupation Tax Act. If the property is leased in a manner 19 that does not qualify for this exemption or is used in any 20 other non-exempt manner, the lessor shall be liable for the 21 tax imposed under this Act or the Use Tax Act, as the case 22 may be, based on the fair market value of the property at the 23 time the non-qualifying use occurs. No lessor shall collect 24 or attempt to collect an amount (however designated) that 25 purports to reimburse that lessor for the tax imposed by this 26 Act or the Use Tax Act, as the case may be, if the tax has 27 not been paid by the lessor. If a lessor improperly collects 28 any such amount from the lessee, the lessee shall have a 29 legal right to claim a refund of that amount from the lessor. 30 If, however, that amount is not refunded to the lessee for 31 any reason, the lessor is liable to pay that amount to the 32 Department. 33 (17) Beginning with taxable years ending on or after 34 December 31, 1995 and ending with taxable years ending on or SB417 Engrossed -13- LRB9102412PTcd 1 before December 31, 2004, personal property that is donated 2 for disaster relief to be used in a State or federally 3 declared disaster area in Illinois or bordering Illinois by a 4 manufacturer or retailer that is registered in this State to 5 a corporation, society, association, foundation, or 6 institution that has been issued a sales tax exemption 7 identification number by the Department that assists victims 8 of the disaster who reside within the declared disaster area. 9 (18) Beginning with taxable years ending on or after 10 December 31, 1995 and ending with taxable years ending on or 11 before December 31, 2004, personal property that is used in 12 the performance of infrastructure repairs in this State, 13 including but not limited to municipal roads and streets, 14 access roads, bridges, sidewalks, waste disposal systems, 15 water and sewer line extensions, water distribution and 16 purification facilities, storm water drainage and retention 17 facilities, and sewage treatment facilities, resulting from a 18 State or federally declared disaster in Illinois or bordering 19 Illinois when such repairs are initiated on facilities 20 located in the declared disaster area within 6 months after 21 the disaster. 22 (19) Beginning January 1, 2000, new or used automatic 23 vending machines that prepare and serve hot food and 24 beverages, including coffee, soup, and other items, and 25 replacement parts for these machines. This paragraph is 26 exempt from the provisions of Section 3-75. 27 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 28 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 29 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 30 eff. 12-12-97; 90-605, eff. 6-30-98.) 31 Section 15. The Service Occupation Tax Act is amended by 32 changing Section 3-5 as follows: SB417 Engrossed -14- LRB9102412PTcd 1 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 2 Sec. 3-5. Exemptions. The following tangible personal 3 property is exempt from the tax imposed by this Act: 4 (1) Personal property sold by a corporation, society, 5 association, foundation, institution, or organization, other 6 than a limited liability company, that is organized and 7 operated as a not-for-profit service enterprise for the 8 benefit of persons 65 years of age or older if the personal 9 property was not purchased by the enterprise for the purpose 10 of resale by the enterprise. 11 (2) Personal property purchased by a not-for-profit 12 Illinois county fair association for use in conducting, 13 operating, or promoting the county fair. 14 (3) Personal property purchased by any not-for-profit 15 music or dramatic arts organization that establishes, by 16 proof required by the Department by rule, that it has 17 received an exemption under Section 501(c)(3) of the 18 Internal Revenue Code and that is organized and operated for 19 the presentation of live public performances of musical or 20 theatrical works on a regular basis. 21 (4) Legal tender, currency, medallions, or gold or 22 silver coinage issued by the State of Illinois, the 23 government of the United States of America, or the government 24 of any foreign country, and bullion. 25 (5) Graphic arts machinery and equipment, including 26 repair and replacement parts, both new and used, and 27 including that manufactured on special order or purchased for 28 lease, certified by the purchaser to be used primarily for 29 graphic arts production. 30 (6) Personal property sold by a teacher-sponsored 31 student organization affiliated with an elementary or 32 secondary school located in Illinois. 33 (7) Farm machinery and equipment, both new and used, 34 including that manufactured on special order, certified by SB417 Engrossed -15- LRB9102412PTcd 1 the purchaser to be used primarily for production agriculture 2 or State or federal agricultural programs, including 3 individual replacement parts for the machinery and equipment, 4 including machinery and equipment purchased for lease, and 5 including implements of husbandry defined in Section 1-130 of 6 the Illinois Vehicle Code, farm machinery and agricultural 7 chemical and fertilizer spreaders, and nurse wagons required 8 to be registered under Section 3-809 of the Illinois Vehicle 9 Code, but excluding other motor vehicles required to be 10 registered under the Illinois Vehicle Code. Horticultural 11 polyhouses or hoop houses used for propagating, growing, or 12 overwintering plants shall be considered farm machinery and 13 equipment under this item (7). Agricultural chemical tender 14 tanks and dry boxes shall include units sold separately from 15 a motor vehicle required to be licensed and units sold 16 mounted on a motor vehicle required to be licensed if the 17 selling price of the tender is separately stated. 18 Farm machinery and equipment shall include precision 19 farming equipment that is installed or purchased to be 20 installed on farm machinery and equipment including, but not 21 limited to, tractors, harvesters, sprayers, planters, 22 seeders, or spreaders. Precision farming equipment includes, 23 but is not limited to, soil testing sensors, computers, 24 monitors, software, global positioning and mapping systems, 25 and other such equipment. 26 Farm machinery and equipment also includes computers, 27 sensors, software, and related equipment used primarily in 28 the computer-assisted operation of production agriculture 29 facilities, equipment, and activities such as, but not 30 limited to, the collection, monitoring, and correlation of 31 animal and crop data for the purpose of formulating animal 32 diets and agricultural chemicals. This item (7) is exempt 33 from the provisions of Section 3-553-75. 34 (8) Fuel and petroleum products sold to or used by an SB417 Engrossed -16- LRB9102412PTcd 1 air common carrier, certified by the carrier to be used for 2 consumption, shipment, or storage in the conduct of its 3 business as an air common carrier, for a flight destined for 4 or returning from a location or locations outside the United 5 States without regard to previous or subsequent domestic 6 stopovers. 7 (9) Proceeds of mandatory service charges separately 8 stated on customers' bills for the purchase and consumption 9 of food and beverages, to the extent that the proceeds of the 10 service charge are in fact turned over as tips or as a 11 substitute for tips to the employees who participate directly 12 in preparing, serving, hosting or cleaning up the food or 13 beverage function with respect to which the service charge is 14 imposed. 15 (10) Oil field exploration, drilling, and production 16 equipment, including (i) rigs and parts of rigs, rotary rigs, 17 cable tool rigs, and workover rigs, (ii) pipe and tubular 18 goods, including casing and drill strings, (iii) pumps and 19 pump-jack units, (iv) storage tanks and flow lines, (v) any 20 individual replacement part for oil field exploration, 21 drilling, and production equipment, and (vi) machinery and 22 equipment purchased for lease; but excluding motor vehicles 23 required to be registered under the Illinois Vehicle Code. 24 (11) Photoprocessing machinery and equipment, including 25 repair and replacement parts, both new and used, including 26 that manufactured on special order, certified by the 27 purchaser to be used primarily for photoprocessing, and 28 including photoprocessing machinery and equipment purchased 29 for lease. 30 (12) Coal exploration, mining, offhighway hauling, 31 processing, maintenance, and reclamation equipment, including 32 replacement parts and equipment, and including equipment 33 purchased for lease, but excluding motor vehicles required to 34 be registered under the Illinois Vehicle Code. SB417 Engrossed -17- LRB9102412PTcd 1 (13) Food for human consumption that is to be consumed 2 off the premises where it is sold (other than alcoholic 3 beverages, soft drinks and food that has been prepared for 4 immediate consumption) and prescription and non-prescription 5 medicines, drugs, medical appliances, and insulin, urine 6 testing materials, syringes, and needles used by diabetics, 7 for human use, when purchased for use by a person receiving 8 medical assistance under Article 5 of the Illinois Public Aid 9 Code who resides in a licensed long-term care facility, as 10 defined in the Nursing Home Care Act. 11 (14) Semen used for artificial insemination of livestock 12 for direct agricultural production. 13 (15) 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 (16) Computers and communications equipment utilized for 20 any hospital purpose and equipment used in the diagnosis, 21 analysis, or treatment of hospital patients sold to a lessor 22 who leases the equipment, under a lease of one year or longer 23 executed or in effect at the time of the purchase, to a 24 hospital that has been issued an active tax exemption 25 identification number by the Department under Section 1g of 26 the Retailers' Occupation Tax Act. 27 (17) Personal property sold to a lessor who leases the 28 property, under a lease of one year or longer executed or in 29 effect at the time of the purchase, to a governmental body 30 that has been issued an active tax exemption identification 31 number by the Department under Section 1g of the Retailers' 32 Occupation Tax Act. 33 (18) Beginning with taxable years ending on or after 34 December 31, 1995 and ending with taxable years ending on or SB417 Engrossed -18- LRB9102412PTcd 1 before December 31, 2004, personal property that is donated 2 for disaster relief to be used in a State or federally 3 declared disaster area in Illinois or bordering Illinois by a 4 manufacturer or retailer that is registered in this State to 5 a corporation, society, association, foundation, or 6 institution that has been issued a sales tax exemption 7 identification number by the Department that assists victims 8 of the disaster who reside within the declared disaster area. 9 (19) Beginning with taxable years ending on or after 10 December 31, 1995 and ending with taxable years ending on or 11 before December 31, 2004, personal property that is used in 12 the performance of infrastructure repairs in this State, 13 including but not limited to municipal roads and streets, 14 access roads, bridges, sidewalks, waste disposal systems, 15 water and sewer line extensions, water distribution and 16 purification facilities, storm water drainage and retention 17 facilities, and sewage treatment facilities, resulting from a 18 State or federally declared disaster in Illinois or bordering 19 Illinois when such repairs are initiated on facilities 20 located in the declared disaster area within 6 months after 21 the disaster. 22 (20) Beginning January 1, 2000, new or used automatic 23 vending machines that prepare and serve hot food and 24 beverages, including coffee, soup, and other items, and 25 replacement parts for these machines. This paragraph is 26 exempt from the provisions of Section 3-55. 27 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 28 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 29 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 30 eff. 12-12-97; 90-605, eff. 6-30-98; revised 2-10-99.) 31 Section 20. The Retailers' Occupation Tax Act is amended 32 by changing Section 2-5 as follows: SB417 Engrossed -19- LRB9102412PTcd 1 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 2 Sec. 2-5. Exemptions. Gross receipts from proceeds from 3 the sale of the following tangible personal property are 4 exempt from the tax imposed by this Act: 5 (1) Farm chemicals. 6 (2) Farm machinery and equipment, both new and used, 7 including that manufactured on special order, certified by 8 the purchaser to be used primarily for production agriculture 9 or State or federal agricultural programs, including 10 individual replacement parts for the machinery and equipment, 11 including machinery and equipment purchased for lease, and 12 including implements of husbandry defined in Section 1-130 of 13 the Illinois Vehicle Code, farm machinery and agricultural 14 chemical and fertilizer spreaders, and nurse wagons required 15 to be registered under Section 3-809 of the Illinois Vehicle 16 Code, but excluding other motor vehicles required to be 17 registered under the Illinois Vehicle Code. Horticultural 18 polyhouses or hoop houses used for propagating, growing, or 19 overwintering plants shall be considered farm machinery and 20 equipment under this item (2). Agricultural chemical tender 21 tanks and dry boxes shall include units sold separately from 22 a motor vehicle required to be licensed and units sold 23 mounted on a motor vehicle required to be licensed, if the 24 selling price of the tender is separately stated. 25 Farm machinery and equipment shall include precision 26 farming equipment that is installed or purchased to be 27 installed on farm machinery and equipment including, but not 28 limited to, tractors, harvesters, sprayers, planters, 29 seeders, or spreaders. Precision farming equipment includes, 30 but is not limited to, soil testing sensors, computers, 31 monitors, software, global positioning and mapping systems, 32 and other such equipment. 33 Farm machinery and equipment also includes computers, 34 sensors, software, and related equipment used primarily in SB417 Engrossed -20- LRB9102412PTcd 1 the computer-assisted operation of production agriculture 2 facilities, equipment, and activities such as, but not 3 limited to, the collection, monitoring, and correlation of 4 animal and crop data for the purpose of formulating animal 5 diets and agricultural chemicals. This item (7) is exempt 6 from the provisions of Section 2-703-75. 7 (3) Distillation machinery and equipment, sold as a unit 8 or kit, assembled or installed by the retailer, certified by 9 the user to be used only for the production of ethyl alcohol 10 that will be used for consumption as motor fuel or as a 11 component of motor fuel for the personal use of the user, and 12 not subject to sale or resale. 13 (4) Graphic arts machinery and equipment, including 14 repair and replacement parts, both new and used, and 15 including that manufactured on special order or purchased for 16 lease, certified by the purchaser to be used primarily for 17 graphic arts production. 18 (5) A motor vehicle of the first division, a motor 19 vehicle of the second division that is a self-contained motor 20 vehicle designed or permanently converted to provide living 21 quarters for recreational, camping, or travel use, with 22 direct walk through access to the living quarters from the 23 driver's seat, or a motor vehicle of the second division that 24 is of the van configuration designed for the transportation 25 of not less than 7 nor more than 16 passengers, as defined in 26 Section 1-146 of the Illinois Vehicle Code, that is used for 27 automobile renting, as defined in the Automobile Renting 28 Occupation and Use Tax Act. 29 (6) Personal property sold by a teacher-sponsored 30 student organization affiliated with an elementary or 31 secondary school located in Illinois. 32 (7) Proceeds of that portion of the selling price of a 33 passenger car the sale of which is subject to the Replacement 34 Vehicle Tax. SB417 Engrossed -21- LRB9102412PTcd 1 (8) Personal property sold to an Illinois county fair 2 association for use in conducting, operating, or promoting 3 the county fair. 4 (9) Personal property sold to a not-for-profit music or 5 dramatic arts organization that establishes, by proof 6 required by the Department by rule, that it has received an 7 exemption under Section 501(c) (3) of the Internal Revenue 8 Code and that is organized and operated for the presentation 9 of live public performances of musical or theatrical works on 10 a regular basis. 11 (10) Personal property sold by a corporation, society, 12 association, foundation, institution, or organization, other 13 than a limited liability company, that is organized and 14 operated as a not-for-profit service enterprise for the 15 benefit of persons 65 years of age or older if the personal 16 property was not purchased by the enterprise for the purpose 17 of resale by the enterprise. 18 (11) Personal property sold to a governmental body, to a 19 corporation, society, association, foundation, or institution 20 organized and operated exclusively for charitable, religious, 21 or educational purposes, or to a not-for-profit corporation, 22 society, association, foundation, institution, or 23 organization that has no compensated officers or employees 24 and that is organized and operated primarily for the 25 recreation of persons 55 years of age or older. A limited 26 liability company may qualify for the exemption under this 27 paragraph only if the limited liability company is organized 28 and operated exclusively for educational purposes. On and 29 after July 1, 1987, however, no entity otherwise eligible for 30 this exemption shall make tax-free purchases unless it has an 31 active identification number issued by the Department. 32 (12) Personal property sold to interstate carriers for 33 hire for use as rolling stock moving in interstate commerce 34 or to lessors under leases of one year or longer executed or SB417 Engrossed -22- LRB9102412PTcd 1 in effect at the time of purchase by interstate carriers for 2 hire for use as rolling stock moving in interstate commerce 3 and equipment operated by a telecommunications provider, 4 licensed as a common carrier by the Federal Communications 5 Commission, which is permanently installed in or affixed to 6 aircraft moving in interstate commerce. 7 (13) Proceeds from sales to owners, lessors, or shippers 8 of tangible personal property that is utilized by interstate 9 carriers for hire for use as rolling stock moving in 10 interstate commerce and equipment operated by a 11 telecommunications provider, licensed as a common carrier by 12 the Federal Communications Commission, which is permanently 13 installed in or affixed to aircraft moving in interstate 14 commerce. 15 (14) Machinery and equipment that will be used by the 16 purchaser, or a lessee of the purchaser, primarily in the 17 process of manufacturing or assembling tangible personal 18 property for wholesale or retail sale or lease, whether the 19 sale or lease is made directly by the manufacturer or by some 20 other person, whether the materials used in the process are 21 owned by the manufacturer or some other person, or whether 22 the sale or lease is made apart from or as an incident to the 23 seller's engaging in the service occupation of producing 24 machines, tools, dies, jigs, patterns, gauges, or other 25 similar items of no commercial value on special order for a 26 particular purchaser. 27 (15) Proceeds of mandatory service charges separately 28 stated on customers' bills for purchase and consumption of 29 food and beverages, to the extent that the proceeds of the 30 service charge are in fact turned over as tips or as a 31 substitute for tips to the employees who participate directly 32 in preparing, serving, hosting or cleaning up the food or 33 beverage function with respect to which the service charge is 34 imposed. SB417 Engrossed -23- LRB9102412PTcd 1 (16) Petroleum products sold to a purchaser if the 2 seller is prohibited by federal law from charging tax to the 3 purchaser. 4 (17) Tangible personal property sold to a common carrier 5 by rail or motor that receives the physical possession of the 6 property in Illinois and that transports the property, or 7 shares with another common carrier in the transportation of 8 the property, out of Illinois on a standard uniform bill of 9 lading showing the seller of the property as the shipper or 10 consignor of the property to a destination outside Illinois, 11 for use outside Illinois. 12 (18) Legal tender, currency, medallions, or gold or 13 silver coinage issued by the State of Illinois, the 14 government of the United States of America, or the government 15 of any foreign country, and bullion. 16 (19) Oil field exploration, drilling, and production 17 equipment, including (i) rigs and parts of rigs, rotary rigs, 18 cable tool rigs, and workover rigs, (ii) pipe and tubular 19 goods, including casing and drill strings, (iii) pumps and 20 pump-jack units, (iv) storage tanks and flow lines, (v) any 21 individual replacement part for oil field exploration, 22 drilling, and production equipment, and (vi) machinery and 23 equipment purchased for lease; but excluding motor vehicles 24 required to be registered under the Illinois Vehicle Code. 25 (20) Photoprocessing machinery and equipment, including 26 repair and replacement parts, both new and used, including 27 that manufactured on special order, certified by the 28 purchaser to be used primarily for photoprocessing, and 29 including photoprocessing machinery and equipment purchased 30 for lease. 31 (21) Coal exploration, mining, offhighway hauling, 32 processing, maintenance, and reclamation equipment, including 33 replacement parts and equipment, and including equipment 34 purchased for lease, but excluding motor vehicles required to SB417 Engrossed -24- LRB9102412PTcd 1 be registered under the Illinois Vehicle Code. 2 (22) Fuel and petroleum products sold to or used by an 3 air carrier, certified by the carrier to be used for 4 consumption, shipment, or storage in the conduct of its 5 business as an air common carrier, for a flight destined for 6 or returning from a location or locations outside the United 7 States without regard to previous or subsequent domestic 8 stopovers. 9 (23) A transaction in which the purchase order is 10 received by a florist who is located outside Illinois, but 11 who has a florist located in Illinois deliver the property to 12 the purchaser or the purchaser's donee in Illinois. 13 (24) Fuel consumed or used in the operation of ships, 14 barges, or vessels that are used primarily in or for the 15 transportation of property or the conveyance of persons for 16 hire on rivers bordering on this State if the fuel is 17 delivered by the seller to the purchaser's barge, ship, or 18 vessel while it is afloat upon that bordering river. 19 (25) A motor vehicle sold in this State to a nonresident 20 even though the motor vehicle is delivered to the nonresident 21 in this State, if the motor vehicle is not to be titled in 22 this State, and if a driveaway decal permit is issued to the 23 motor vehicle as provided in Section 3-603 of the Illinois 24 Vehicle Code or if the nonresident purchaser has vehicle 25 registration plates to transfer to the motor vehicle upon 26 returning to his or her home state. The issuance of the 27 driveaway decal permit or having the out-of-state 28 registration plates to be transferred is prima facie evidence 29 that the motor vehicle will not be titled in this State. 30 (26) Semen used for artificial insemination of livestock 31 for direct agricultural production. 32 (27) Horses, or interests in horses, registered with and 33 meeting the requirements of any of the Arabian Horse Club 34 Registry of America, Appaloosa Horse Club, American Quarter SB417 Engrossed -25- LRB9102412PTcd 1 Horse Association, United States Trotting Association, or 2 Jockey Club, as appropriate, used for purposes of breeding or 3 racing for prizes. 4 (28) Computers and communications equipment utilized for 5 any hospital purpose and equipment used in the diagnosis, 6 analysis, or treatment of hospital patients sold to a lessor 7 who leases the equipment, under a lease of one year or longer 8 executed or in effect at the time of the purchase, to a 9 hospital that has been issued an active tax exemption 10 identification number by the Department under Section 1g of 11 this Act. 12 (29) Personal property sold to a lessor who leases the 13 property, under a lease of one year or longer executed or in 14 effect at the time of the purchase, to a governmental body 15 that has been issued an active tax exemption identification 16 number by the Department under Section 1g of this Act. 17 (30) Beginning with taxable years ending on or after 18 December 31, 1995 and ending with taxable years ending on or 19 before December 31, 2004, personal property that is donated 20 for disaster relief to be used in a State or federally 21 declared disaster area in Illinois or bordering Illinois by a 22 manufacturer or retailer that is registered in this State to 23 a corporation, society, association, foundation, or 24 institution that has been issued a sales tax exemption 25 identification number by the Department that assists victims 26 of the disaster who reside within the declared disaster area. 27 (31) Beginning with taxable years ending on or after 28 December 31, 1995 and ending with taxable years ending on or 29 before December 31, 2004, personal property that is used in 30 the performance of infrastructure repairs in this State, 31 including but not limited to municipal roads and streets, 32 access roads, bridges, sidewalks, waste disposal systems, 33 water and sewer line extensions, water distribution and 34 purification facilities, storm water drainage and retention SB417 Engrossed -26- LRB9102412PTcd 1 facilities, and sewage treatment facilities, resulting from a 2 State or federally declared disaster in Illinois or bordering 3 Illinois when such repairs are initiated on facilities 4 located in the declared disaster area within 6 months after 5 the disaster. 6 (32) Beginning January 1, 2000, new or used automatic 7 vending machines that prepare and serve hot food and 8 beverages, including coffee, soup, and other items, and 9 replacement parts for these machines. This paragraph is 10 exempt from the provisions of Section 2-70. 11 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 12 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 13 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519, 14 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 15 revised 2-10-99.) 16 Section 99. Effective date. This Act takes effect on 17 January 1, 2000.