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91_SB1345
LRB9110214SMdv
1 AN ACT concerning taxation, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17 Illinois county fair association for use in conducting,
18 operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit arts
20 or cultural organization that establishes, by proof required
21 by the Department by rule, that it has received an exemption
22 under Section 501(c)(3) of the Internal Revenue Code and that
23 is organized and operated for the presentation or support of
24 arts or cultural programming, activities, or services. These
25 organizations include, but are not limited to, music and
26 dramatic arts organizations such as symphony orchestras and
27 theatrical groups, arts and cultural service organizations,
28 local arts councils, visual arts organizations, and media
29 arts organizations.
30 (4) Personal property purchased by a governmental body,
31 by a corporation, society, association, foundation, or
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1 institution organized and operated exclusively for
2 charitable, religious, or educational purposes, or by a
3 not-for-profit corporation, society, association, foundation,
4 institution, or organization that has no compensated officers
5 or employees and that is organized and operated primarily for
6 the recreation of persons 55 years of age or older. A limited
7 liability company may qualify for the exemption under this
8 paragraph only if the limited liability company is organized
9 and operated exclusively for educational purposes. On and
10 after July 1, 1987, however, no entity otherwise eligible for
11 this exemption shall make tax-free purchases unless it has an
12 active exemption identification number issued by the
13 Department.
14 (5) A passenger car that is a replacement vehicle to the
15 extent that the purchase price of the car is subject to the
16 Replacement Vehicle Tax.
17 (6) Graphic arts machinery and equipment, including
18 repair and replacement parts, both new and used, and
19 including that manufactured on special order, certified by
20 the purchaser to be used primarily for graphic arts
21 production, and including machinery and equipment purchased
22 for lease.
23 (7) Farm chemicals.
24 (8) Legal tender, currency, medallions, or gold or
25 silver coinage issued by the State of Illinois, the
26 government of the United States of America, or the government
27 of any foreign country, and bullion.
28 (9) Personal property purchased from a teacher-sponsored
29 student organization affiliated with an elementary or
30 secondary school located in Illinois.
31 (10) A motor vehicle of the first division, a motor
32 vehicle of the second division that is a self-contained motor
33 vehicle designed or permanently converted to provide living
34 quarters for recreational, camping, or travel use, with
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1 direct walk through to the living quarters from the driver's
2 seat, or a motor vehicle of the second division that is of
3 the van configuration designed for the transportation of not
4 less than 7 nor more than 16 passengers, as defined in
5 Section 1-146 of the Illinois Vehicle Code, that is used for
6 automobile renting, as defined in the Automobile Renting
7 Occupation and Use Tax Act.
8 (11) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (11). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
34 and other such equipment.
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1 Farm machinery and equipment also includes computers,
2 sensors, software, and related equipment used primarily in
3 the computer-assisted operation of production agriculture
4 facilities, equipment, and activities such as, but not
5 limited to, the collection, monitoring, and correlation of
6 animal and crop data for the purpose of formulating animal
7 diets and agricultural chemicals. This item (11) is exempt
8 from the provisions of Section 3-90.
9 (12) Fuel and petroleum products sold to or used by an
10 air common carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (13) Proceeds of mandatory service charges separately
17 stated on customers' bills for the purchase and consumption
18 of food and beverages purchased at retail from a retailer, to
19 the extent that the proceeds of the service charge are in
20 fact turned over as tips or as a substitute for tips to the
21 employees who participate directly in preparing, serving,
22 hosting or cleaning up the food or beverage function with
23 respect to which the service charge is imposed.
24 (14) Oil field exploration, drilling, and production
25 equipment, including (i) rigs and parts of rigs, rotary rigs,
26 cable tool rigs, and workover rigs, (ii) pipe and tubular
27 goods, including casing and drill strings, (iii) pumps and
28 pump-jack units, (iv) storage tanks and flow lines, (v) any
29 individual replacement part for oil field exploration,
30 drilling, and production equipment, and (vi) machinery and
31 equipment purchased for lease; but excluding motor vehicles
32 required to be registered under the Illinois Vehicle Code.
33 (15) Photoprocessing machinery and equipment, including
34 repair and replacement parts, both new and used, including
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1 that manufactured on special order, certified by the
2 purchaser to be used primarily for photoprocessing, and
3 including photoprocessing machinery and equipment purchased
4 for lease.
5 (16) Coal exploration, mining, offhighway hauling,
6 processing, maintenance, and reclamation equipment, including
7 replacement parts and equipment, and including equipment
8 purchased for lease, but excluding motor vehicles required to
9 be registered under the Illinois Vehicle Code.
10 (17) Distillation machinery and equipment, sold as a
11 unit or kit, assembled or installed by the retailer,
12 certified by the user to be used only for the production of
13 ethyl alcohol that will be used for consumption as motor fuel
14 or as a component of motor fuel for the personal use of the
15 user, and not subject to sale or resale.
16 (18) Manufacturing and assembling machinery and
17 equipment used primarily in the process of manufacturing or
18 assembling tangible personal property for wholesale or retail
19 sale or lease, whether that sale or lease is made directly by
20 the manufacturer or by some other person, whether the
21 materials used in the process are owned by the manufacturer
22 or some other person, or whether that sale or lease is made
23 apart from or as an incident to the seller's engaging in the
24 service occupation of producing machines, tools, dies, jigs,
25 patterns, gauges, or other similar items of no commercial
26 value on special order for a particular purchaser.
27 (19) Personal property delivered to a purchaser or
28 purchaser's donee inside Illinois when the purchase order for
29 that personal property was received by a florist located
30 outside Illinois who has a florist located inside Illinois
31 deliver the personal property.
32 (20) Semen used for artificial insemination of livestock
33 for direct agricultural production.
34 (21) Horses, or interests in horses, registered with and
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1 meeting the requirements of any of the Arabian Horse Club
2 Registry of America, Appaloosa Horse Club, American Quarter
3 Horse Association, United States Trotting Association, or
4 Jockey Club, as appropriate, used for purposes of breeding or
5 racing for prizes.
6 (22) Computers and communications equipment utilized for
7 any hospital purpose and equipment used in the diagnosis,
8 analysis, or treatment of hospital patients purchased by a
9 lessor who leases the equipment, under a lease of one year or
10 longer executed or in effect at the time the lessor would
11 otherwise be subject to the tax imposed by this Act, to a
12 hospital that has been issued an active tax exemption
13 identification number by the Department under Section 1g of
14 the Retailers' Occupation Tax Act. If the equipment is
15 leased in a manner that does not qualify for this exemption
16 or is used in any other non-exempt manner, the lessor shall
17 be liable for the tax imposed under this Act or the Service
18 Use Tax Act, as the case may be, based on the fair market
19 value of the property at the time the non-qualifying use
20 occurs. No lessor shall collect or attempt to collect an
21 amount (however designated) that purports to reimburse that
22 lessor for the tax imposed by this Act or the Service Use Tax
23 Act, as the case may be, if the tax has not been paid by the
24 lessor. If a lessor improperly collects any such amount from
25 the lessee, the lessee shall have a legal right to claim a
26 refund of that amount from the lessor. If, however, that
27 amount is not refunded to the lessee for any reason, the
28 lessor is liable to pay that amount to the Department.
29 (23) Personal property purchased by a lessor who leases
30 the property, under a lease of one year or longer executed
31 or in effect at the time the lessor would otherwise be
32 subject to the tax imposed by this Act, to a governmental
33 body that has been issued an active sales tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act. If the property is leased
2 in a manner that does not qualify for this exemption or used
3 in any other non-exempt manner, the lessor shall be liable
4 for the tax imposed under this Act or the Service Use Tax
5 Act, as the case may be, based on the fair market value of
6 the property at the time the non-qualifying use occurs. No
7 lessor shall collect or attempt to collect an amount (however
8 designated) that purports to reimburse that lessor for the
9 tax imposed by this Act or the Service Use Tax Act, as the
10 case may be, if the tax has not been paid by the lessor. If
11 a lessor improperly collects any such amount from the lessee,
12 the lessee shall have a legal right to claim a refund of that
13 amount from the lessor. If, however, that amount is not
14 refunded to the lessee for any reason, the lessor is liable
15 to pay that amount to the Department.
16 (24) Beginning with taxable years ending on or after
17 December 31, 1995 and ending with taxable years ending on or
18 before December 31, 2004, personal property that is donated
19 for disaster relief to be used in a State or federally
20 declared disaster area in Illinois or bordering Illinois by a
21 manufacturer or retailer that is registered in this State to
22 a corporation, society, association, foundation, or
23 institution that has been issued a sales tax exemption
24 identification number by the Department that assists victims
25 of the disaster who reside within the declared disaster area.
26 (25) Beginning with taxable years ending on or after
27 December 31, 1995 and ending with taxable years ending on or
28 before December 31, 2004, personal property that is used in
29 the performance of infrastructure repairs in this State,
30 including but not limited to municipal roads and streets,
31 access roads, bridges, sidewalks, waste disposal systems,
32 water and sewer line extensions, water distribution and
33 purification facilities, storm water drainage and retention
34 facilities, and sewage treatment facilities, resulting from a
-8- LRB9110214SMdv
1 State or federally declared disaster in Illinois or bordering
2 Illinois when such repairs are initiated on facilities
3 located in the declared disaster area within 6 months after
4 the disaster.
5 (26) Beginning July 1, 1999, game or game birds
6 purchased at a "game breeding and hunting preserve area" or
7 an "exotic game hunting area" as those terms are used in the
8 Wildlife Code or at a hunting enclosure approved through
9 rules adopted by the Department of Natural Resources. This
10 paragraph is exempt from the provisions of Section 3-90.
11 (27) (26) A motor vehicle, as that term is defined in
12 Section 1-146 of the Illinois Vehicle Code, that is donated
13 to a corporation, limited liability company, society,
14 association, foundation, or institution that is determined by
15 the Department to be organized and operated exclusively for
16 educational purposes. For purposes of this exemption, "a
17 corporation, limited liability company, society, association,
18 foundation, or institution organized and operated exclusively
19 for educational purposes" means all tax-supported public
20 schools, private schools that offer systematic instruction in
21 useful branches of learning by methods common to public
22 schools and that compare favorably in their scope and
23 intensity with the course of study presented in tax-supported
24 schools, and vocational or technical schools or institutes
25 organized and operated exclusively to provide a course of
26 study of not less than 6 weeks duration and designed to
27 prepare individuals to follow a trade or to pursue a manual,
28 technical, mechanical, industrial, business, or commercial
29 occupation.
30 (28) (27) Beginning January 1, 2000, personal property,
31 including food, purchased through fundraising events for the
32 benefit of a public or private elementary or secondary
33 school, a group of those schools, or one or more school
34 districts if the events are sponsored by an entity recognized
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1 by the school district that consists primarily of volunteers
2 and includes parents and teachers of the school children.
3 This paragraph does not apply to fundraising events (i) for
4 the benefit of private home instruction or (ii) for which the
5 fundraising entity purchases the personal property sold at
6 the events from another individual or entity that sold the
7 property for the purpose of resale by the fundraising entity
8 and that profits from the sale to the fundraising entity.
9 This paragraph is exempt from the provisions of Section 3-90.
10 (29) (26) Beginning January 1, 2000, new or used
11 automatic vending machines that prepare and serve hot food
12 and beverages, including coffee, soup, and other items, and
13 replacement parts for these machines. This paragraph is
14 exempt from the provisions of Section 3-90.
15 (30) Beginning January 1, 2001, any part, appliance,
16 accessory, or piece of equipment that is used by a new or
17 used motor vehicle dealer to complete a recall ordered by a
18 motor vehicle manufacturer, a state or the federal
19 government, or by a court when that part, appliance,
20 accessory, or piece of equipment is provided without charge
21 to the person whose motor vehicle is subject to the recall.
22 For the purpose of this paragraph, "recall" includes (i) any
23 recall ordered by the National Highway Transportation Safety
24 Administration or a manufacturer pursuant to required filings
25 with the National Highway Transportation Safety
26 Administration and (ii) any other declaration by a
27 manufacturer that a safety defect or noncompliance is present
28 in a motor vehicle and that a repair of the safety defect or
29 noncompliance is necessary to ensure the safety of the
30 public. This paragraph is exempt from the provisions of
31 Section 3-90.
32 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
33 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
34 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
-10- LRB9110214SMdv
1 eff. 8-20-99; revised 9-29-99.)
2 Section 10. The Service Use Tax Act is amended by
3 changing Section 3-5 as follows:
4 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
5 Sec. 3-5. Exemptions. Use of the following tangible
6 personal property is exempt from the tax imposed by this Act:
7 (1) Personal property purchased from a corporation,
8 society, association, foundation, institution, or
9 organization, other than a limited liability company, that is
10 organized and operated as a not-for-profit service enterprise
11 for the benefit of persons 65 years of age or older if the
12 personal property was not purchased by the enterprise for the
13 purpose of resale by the enterprise.
14 (2) Personal property purchased by a non-profit Illinois
15 county fair association for use in conducting, operating, or
16 promoting the county fair.
17 (3) Personal property purchased by a not-for-profit arts
18 or cultural organization that establishes, by proof required
19 by the Department by rule, that it has received an exemption
20 under Section 501(c)(3) of the Internal Revenue Code and that
21 is organized and operated for the presentation or support of
22 arts or cultural programming, activities, or services. These
23 organizations include, but are not limited to, music and
24 dramatic arts organizations such as symphony orchestras and
25 theatrical groups, arts and cultural service organizations,
26 local arts councils, visual arts organizations, and media
27 arts organizations.
28 (4) Legal tender, currency, medallions, or gold or
29 silver coinage issued by the State of Illinois, the
30 government of the United States of America, or the government
31 of any foreign country, and bullion.
32 (5) Graphic arts machinery and equipment, including
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1 repair and replacement parts, both new and used, and
2 including that manufactured on special order or purchased for
3 lease, certified by the purchaser to be used primarily for
4 graphic arts production.
5 (6) Personal property purchased from a teacher-sponsored
6 student organization affiliated with an elementary or
7 secondary school located in Illinois.
8 (7) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (7). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
34 and other such equipment.
-12- LRB9110214SMdv
1 Farm machinery and equipment also includes computers,
2 sensors, software, and related equipment used primarily in
3 the computer-assisted operation of production agriculture
4 facilities, equipment, and activities such as, but not
5 limited to, the collection, monitoring, and correlation of
6 animal and crop data for the purpose of formulating animal
7 diets and agricultural chemicals. This item (7) is exempt
8 from the provisions of Section 3-75.
9 (8) Fuel and petroleum products sold to or used by an
10 air common carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (9) Proceeds of mandatory service charges separately
17 stated on customers' bills for the purchase and consumption
18 of food and beverages acquired as an incident to the purchase
19 of a service from a serviceman, to the extent that the
20 proceeds of the service charge are in fact turned over as
21 tips or as a substitute for tips to the employees who
22 participate directly in preparing, serving, hosting or
23 cleaning up the food or beverage function with respect to
24 which the service charge is imposed.
25 (10) Oil field exploration, drilling, and production
26 equipment, including (i) rigs and parts of rigs, rotary rigs,
27 cable tool rigs, and workover rigs, (ii) pipe and tubular
28 goods, including casing and drill strings, (iii) pumps and
29 pump-jack units, (iv) storage tanks and flow lines, (v) any
30 individual replacement part for oil field exploration,
31 drilling, and production equipment, and (vi) machinery and
32 equipment purchased for lease; but excluding motor vehicles
33 required to be registered under the Illinois Vehicle Code.
34 (11) Proceeds from the sale of photoprocessing machinery
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1 and equipment, including repair and replacement parts, both
2 new and used, including that manufactured on special order,
3 certified by the purchaser to be used primarily for
4 photoprocessing, and including photoprocessing machinery and
5 equipment purchased for lease.
6 (12) Coal exploration, mining, offhighway hauling,
7 processing, maintenance, and reclamation equipment, including
8 replacement parts and equipment, and including equipment
9 purchased for lease, but excluding motor vehicles required to
10 be registered under the Illinois Vehicle Code.
11 (13) Semen used for artificial insemination of livestock
12 for direct agricultural production.
13 (14) 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 (15) 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 leased
28 in a manner that does not qualify for this exemption or is
29 used in any other non-exempt manner, the lessor shall be
30 liable for the tax imposed under this Act or the Use Tax Act,
31 as the case may be, based on the fair market value of the
32 property at the time the non-qualifying use occurs. No
33 lessor shall collect or attempt to collect an amount (however
34 designated) that purports to reimburse that lessor for the
-14- LRB9110214SMdv
1 tax imposed by this Act or the Use Tax Act, as the case may
2 be, if the tax has not been paid by the lessor. If a lessor
3 improperly collects any such amount from the lessee, the
4 lessee shall have a legal right to claim a refund of that
5 amount from the lessor. If, however, that amount is not
6 refunded to the lessee for any reason, the lessor is liable
7 to pay that amount to the Department.
8 (16) Personal property purchased by a lessor who leases
9 the property, under a lease of one year or longer executed or
10 in effect at the time the lessor would otherwise be subject
11 to the tax imposed by this Act, to a governmental body that
12 has been issued an active tax exemption identification number
13 by the Department under Section 1g of the Retailers'
14 Occupation Tax Act. If the property is leased in a manner
15 that does not qualify for this exemption or is used in any
16 other non-exempt manner, the lessor shall be liable for the
17 tax imposed under this Act or the Use Tax Act, as the case
18 may be, based on the fair market value of the property at the
19 time the non-qualifying use occurs. No lessor shall collect
20 or attempt to collect an amount (however designated) that
21 purports to reimburse that lessor for the tax imposed by this
22 Act or the Use Tax Act, as the case may be, if the tax has
23 not been paid by the lessor. If a lessor improperly collects
24 any such amount from the lessee, the lessee shall have a
25 legal right to claim a refund of that amount from the lessor.
26 If, however, that amount is not refunded to the lessee for
27 any reason, the lessor is liable to pay that amount to the
28 Department.
29 (17) 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
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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 (18) 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 (19) Beginning July 1, 1999, game or game birds
19 purchased at a "game breeding and hunting preserve area" or
20 an "exotic game hunting area" as those terms are used in the
21 Wildlife Code or at a hunting enclosure approved through
22 rules adopted by the Department of Natural Resources. This
23 paragraph is exempt from the provisions of Section 3-75.
24 (20) (19) A motor vehicle, as that term is defined in
25 Section 1-146 of the Illinois Vehicle Code, that is donated
26 to a corporation, limited liability company, society,
27 association, foundation, or institution that is determined by
28 the Department to be organized and operated exclusively for
29 educational purposes. For purposes of this exemption, "a
30 corporation, limited liability company, society, association,
31 foundation, or institution organized and operated exclusively
32 for educational purposes" means all tax-supported public
33 schools, private schools that offer systematic instruction in
34 useful branches of learning by methods common to public
-16- LRB9110214SMdv
1 schools and that compare favorably in their scope and
2 intensity with the course of study presented in tax-supported
3 schools, and vocational or technical schools or institutes
4 organized and operated exclusively to provide a course of
5 study of not less than 6 weeks duration and designed to
6 prepare individuals to follow a trade or to pursue a manual,
7 technical, mechanical, industrial, business, or commercial
8 occupation.
9 (21) (20) Beginning January 1, 2000, personal property,
10 including food, purchased through fundraising events for the
11 benefit of a public or private elementary or secondary
12 school, a group of those schools, or one or more school
13 districts if the events are sponsored by an entity recognized
14 by the school district that consists primarily of volunteers
15 and includes parents and teachers of the school children.
16 This paragraph does not apply to fundraising events (i) for
17 the benefit of private home instruction or (ii) for which the
18 fundraising entity purchases the personal property sold at
19 the events from another individual or entity that sold the
20 property for the purpose of resale by the fundraising entity
21 and that profits from the sale to the fundraising entity.
22 This paragraph is exempt from the provisions of Section 3-75.
23 (22) (19) Beginning January 1, 2000, new or used
24 automatic vending machines that prepare and serve hot food
25 and beverages, including coffee, soup, and other items, and
26 replacement parts for these machines. This paragraph is
27 exempt from the provisions of Section 3-75.
28 (23) Beginning January 1, 2001, any part, appliance,
29 accessory, or piece of equipment that is used by a new or
30 used motor vehicle dealer to complete a recall ordered by a
31 motor vehicle manufacturer, a state or the federal
32 government, or a court when that part, appliance, accessory,
33 or piece of equipment is provided without charge to the
34 person whose motor vehicle is subject to the recall. For the
-17- LRB9110214SMdv
1 purpose of this paragraph, "recall" includes (i) any recall
2 ordered by the National Highway Transportation Safety
3 Administration or a manufacturer pursuant to required filings
4 with the National Highway Transportation Safety
5 Administration and (ii) any other declaration by a
6 manufacturer that a safety defect or noncompliance is present
7 in a motor vehicle and that a repair of the safety defect or
8 noncompliance is necessary to ensure the safety of the
9 public. This paragraph is exempt from the provisions of
10 Section 3-75.
11 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
12 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
13 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
14 eff. 8-20-99; revised 9-29-99.)
15 Section 15. The Service Occupation Tax Act is amended by
16 changing Section 3-5 as follows:
17 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
18 Sec. 3-5. Exemptions. The following tangible personal
19 property is exempt from the tax imposed by this Act:
20 (1) Personal property sold by a corporation, society,
21 association, foundation, institution, or organization, other
22 than a limited liability company, that is organized and
23 operated as a not-for-profit service enterprise for the
24 benefit of persons 65 years of age or older if the personal
25 property was not purchased by the enterprise for the purpose
26 of resale by the enterprise.
27 (2) Personal property purchased by a not-for-profit
28 Illinois county fair association for use in conducting,
29 operating, or promoting the county fair.
30 (3) Personal property purchased by any not-for-profit
31 arts or cultural organization that establishes, by proof
32 required by the Department by rule, that it has received an
-18- LRB9110214SMdv
1 exemption under Section 501(c)(3) of the Internal Revenue
2 Code and that is organized and operated for the presentation
3 or support of arts or cultural programming, activities, or
4 services. These organizations include, but are not limited
5 to, music and dramatic arts organizations such as symphony
6 orchestras and theatrical groups, arts and cultural service
7 organizations, local arts councils, visual arts
8 organizations, and media arts organizations.
9 (4) Legal tender, currency, medallions, or gold or
10 silver coinage issued by the State of Illinois, the
11 government of the United States of America, or the government
12 of any foreign country, and bullion.
13 (5) 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 (6) Personal property sold by a teacher-sponsored
19 student organization affiliated with an elementary or
20 secondary school located in Illinois.
21 (7) 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
-19- LRB9110214SMdv
1 equipment under this item (7). 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 (7) is exempt
21 from the provisions of Section 3-55.
22 (8) 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 (9) Proceeds of mandatory service charges separately
30 stated on customers' bills for the purchase and consumption
31 of food and beverages, to the extent that the proceeds of the
32 service charge are in fact turned over as tips or as a
33 substitute for tips to the employees who participate directly
34 in preparing, serving, hosting or cleaning up the food or
-20- LRB9110214SMdv
1 beverage function with respect to which the service charge is
2 imposed.
3 (10) 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 (11) 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 (12) 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 (13) Food for human consumption that is to be consumed
24 off the premises where it is sold (other than alcoholic
25 beverages, soft drinks and food that has been prepared for
26 immediate consumption) and prescription and non-prescription
27 medicines, drugs, medical appliances, and insulin, urine
28 testing materials, syringes, and needles used by diabetics,
29 for human use, when purchased for use by a person receiving
30 medical assistance under Article 5 of the Illinois Public Aid
31 Code who resides in a licensed long-term care facility, as
32 defined in the Nursing Home Care Act.
33 (14) Semen used for artificial insemination of livestock
34 for direct agricultural production.
-21- LRB9110214SMdv
1 (15) Horses, or interests in horses, registered with and
2 meeting the requirements of any of the Arabian Horse Club
3 Registry of America, Appaloosa Horse Club, American Quarter
4 Horse Association, United States Trotting Association, or
5 Jockey Club, as appropriate, used for purposes of breeding or
6 racing for prizes.
7 (16) Computers and communications equipment utilized for
8 any hospital purpose and equipment used in the diagnosis,
9 analysis, or treatment of hospital patients sold to a lessor
10 who leases the equipment, under a lease of one year or longer
11 executed or in effect at the time of the purchase, to a
12 hospital that has been issued an active tax exemption
13 identification number by the Department under Section 1g of
14 the Retailers' Occupation Tax Act.
15 (17) Personal property sold to a lessor who leases the
16 property, under a lease of one year or longer executed or in
17 effect at the time of the purchase, to a governmental body
18 that has been issued an active tax exemption identification
19 number by the Department under Section 1g of the Retailers'
20 Occupation Tax Act.
21 (18) Beginning with taxable years ending on or after
22 December 31, 1995 and ending with taxable years ending on or
23 before December 31, 2004, personal property that is donated
24 for disaster relief to be used in a State or federally
25 declared disaster area in Illinois or bordering Illinois by a
26 manufacturer or retailer that is registered in this State to
27 a corporation, society, association, foundation, or
28 institution that has been issued a sales tax exemption
29 identification number by the Department that assists victims
30 of the disaster who reside within the declared disaster area.
31 (19) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is used in
34 the performance of infrastructure repairs in this State,
-22- LRB9110214SMdv
1 including but not limited to municipal roads and streets,
2 access roads, bridges, sidewalks, waste disposal systems,
3 water and sewer line extensions, water distribution and
4 purification facilities, storm water drainage and retention
5 facilities, and sewage treatment facilities, resulting from a
6 State or federally declared disaster in Illinois or bordering
7 Illinois when such repairs are initiated on facilities
8 located in the declared disaster area within 6 months after
9 the disaster.
10 (20) Beginning July 1, 1999, game or game birds sold at
11 a "game breeding and hunting preserve area" or an "exotic
12 game hunting area" as those terms are used in the Wildlife
13 Code or at a hunting enclosure approved through rules adopted
14 by the Department of Natural Resources. This paragraph is
15 exempt from the provisions of Section 3-55.
16 (21) (20) A motor vehicle, as that term is defined in
17 Section 1-146 of the Illinois Vehicle Code, that is donated
18 to a corporation, limited liability company, society,
19 association, foundation, or institution that is determined by
20 the Department to be organized and operated exclusively for
21 educational purposes. For purposes of this exemption, "a
22 corporation, limited liability company, society, association,
23 foundation, or institution organized and operated exclusively
24 for educational purposes" means all tax-supported public
25 schools, private schools that offer systematic instruction in
26 useful branches of learning by methods common to public
27 schools and that compare favorably in their scope and
28 intensity with the course of study presented in tax-supported
29 schools, and vocational or technical schools or institutes
30 organized and operated exclusively to provide a course of
31 study of not less than 6 weeks duration and designed to
32 prepare individuals to follow a trade or to pursue a manual,
33 technical, mechanical, industrial, business, or commercial
34 occupation.
-23- LRB9110214SMdv
1 (22) (21) Beginning January 1, 2000, personal property,
2 including food, purchased through fundraising events for the
3 benefit of a public or private elementary or secondary
4 school, a group of those schools, or one or more school
5 districts if the events are sponsored by an entity recognized
6 by the school district that consists primarily of volunteers
7 and includes parents and teachers of the school children.
8 This paragraph does not apply to fundraising events (i) for
9 the benefit of private home instruction or (ii) for which the
10 fundraising entity purchases the personal property sold at
11 the events from another individual or entity that sold the
12 property for the purpose of resale by the fundraising entity
13 and that profits from the sale to the fundraising entity.
14 This paragraph is exempt from the provisions of Section 3-55.
15 (23) (20) Beginning January 1, 2000, new or used
16 automatic vending machines that prepare and serve hot food
17 and beverages, including coffee, soup, and other items, and
18 replacement parts for these machines. This paragraph is
19 exempt from the provisions of Section 3-55.
20 (24) Beginning January 1, 2001, any part, appliance,
21 accessory, or piece of equipment that is used by a new or
22 used motor vehicle dealer to complete a recall ordered by a
23 motor vehicle manufacturer, a state or the federal
24 government, or a court when that part, appliance, accessory,
25 or piece of equipment is provided without charge to the
26 person whose motor vehicle is subject to the recall. For the
27 purpose of this paragraph, "recall" includes (i) any recall
28 ordered by the National Highway Transportation Safety
29 Administration or a manufacturer pursuant to required filings
30 with the National Highway Transportation Safety
31 Administration and (ii) any other declaration by a
32 manufacturer that a safety defect or noncompliance is present
33 in a motor vehicle and that a repair of the safety defect or
34 noncompliance is necessary to ensure the safety of the
-24- LRB9110214SMdv
1 public. This paragraph is exempt from the provisions of
2 Section 3-55.
3 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
4 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
5 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637,
6 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)
7 Section 20. The Retailers' Occupation Tax Act is amended
8 by changing Section 2-5 as follows:
9 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
10 Sec. 2-5. Exemptions. Gross receipts from proceeds from
11 the sale of the following tangible personal property are
12 exempt from the tax imposed by this Act:
13 (1) Farm chemicals.
14 (2) Farm machinery and equipment, both new and used,
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for production agriculture
17 or State or federal agricultural programs, including
18 individual replacement parts for the machinery and equipment,
19 including machinery and equipment purchased for lease, and
20 including implements of husbandry defined in Section 1-130 of
21 the Illinois Vehicle Code, farm machinery and agricultural
22 chemical and fertilizer spreaders, and nurse wagons required
23 to be registered under Section 3-809 of the Illinois Vehicle
24 Code, but excluding other motor vehicles required to be
25 registered under the Illinois Vehicle Code. Horticultural
26 polyhouses or hoop houses used for propagating, growing, or
27 overwintering plants shall be considered farm machinery and
28 equipment under this item (2). Agricultural chemical tender
29 tanks and dry boxes shall include units sold separately from
30 a motor vehicle required to be licensed and units sold
31 mounted on a motor vehicle required to be licensed, if the
32 selling price of the tender is separately stated.
-25- LRB9110214SMdv
1 Farm machinery and equipment shall include precision
2 farming equipment that is installed or purchased to be
3 installed on farm machinery and equipment including, but not
4 limited to, tractors, harvesters, sprayers, planters,
5 seeders, or spreaders. Precision farming equipment includes,
6 but is not limited to, soil testing sensors, computers,
7 monitors, software, global positioning and mapping systems,
8 and other such equipment.
9 Farm machinery and equipment also includes computers,
10 sensors, software, and related equipment used primarily in
11 the computer-assisted operation of production agriculture
12 facilities, equipment, and activities such as, but not
13 limited to, the collection, monitoring, and correlation of
14 animal and crop data for the purpose of formulating animal
15 diets and agricultural chemicals. This item (7) is exempt
16 from the provisions of Section 2-70.
17 (3) Distillation machinery and equipment, sold as a unit
18 or kit, assembled or installed by the retailer, certified by
19 the user to be used only for the production of ethyl alcohol
20 that will be used for consumption as motor fuel or as a
21 component of motor fuel for the personal use of the user, and
22 not subject to sale or resale.
23 (4) Graphic arts machinery and equipment, including
24 repair and replacement parts, both new and used, and
25 including that manufactured on special order or purchased for
26 lease, certified by the purchaser to be used primarily for
27 graphic arts production.
28 (5) A motor vehicle of the first division, a motor
29 vehicle of the second division that is a self-contained motor
30 vehicle designed or permanently converted to provide living
31 quarters for recreational, camping, or travel use, with
32 direct walk through access to the living quarters from the
33 driver's seat, or a motor vehicle of the second division that
34 is of the van configuration designed for the transportation
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1 of not less than 7 nor more than 16 passengers, as defined in
2 Section 1-146 of the Illinois Vehicle Code, that is used for
3 automobile renting, as defined in the Automobile Renting
4 Occupation and Use Tax Act.
5 (6) Personal property sold by a teacher-sponsored
6 student organization affiliated with an elementary or
7 secondary school located in Illinois.
8 (7) Proceeds of that portion of the selling price of a
9 passenger car the sale of which is subject to the Replacement
10 Vehicle Tax.
11 (8) Personal property sold to an Illinois county fair
12 association for use in conducting, operating, or promoting
13 the county fair.
14 (9) Personal property sold to a not-for-profit arts or
15 cultural organization that establishes, by proof required by
16 the Department by rule, that it has received an exemption
17 under Section 501(c)(3) of the Internal Revenue Code and that
18 is organized and operated for the presentation or support of
19 arts or cultural programming, activities, or services. These
20 organizations include, but are not limited to, music and
21 dramatic arts organizations such as symphony orchestras and
22 theatrical groups, arts and cultural service organizations,
23 local arts councils, visual arts organizations, and media
24 arts organizations.
25 (10) Personal property sold by a corporation, society,
26 association, foundation, institution, or organization, other
27 than a limited liability company, that is organized and
28 operated as a not-for-profit service enterprise for the
29 benefit of persons 65 years of age or older if the personal
30 property was not purchased by the enterprise for the purpose
31 of resale by the enterprise.
32 (11) Personal property sold to a governmental body, to a
33 corporation, society, association, foundation, or institution
34 organized and operated exclusively for charitable, religious,
-27- LRB9110214SMdv
1 or educational purposes, or to a not-for-profit corporation,
2 society, association, foundation, institution, or
3 organization that has no compensated officers or employees
4 and that is organized and operated primarily for the
5 recreation of persons 55 years of age or older. A limited
6 liability company may qualify for the exemption under this
7 paragraph only if the limited liability company is organized
8 and operated exclusively for educational purposes. On and
9 after July 1, 1987, however, no entity otherwise eligible for
10 this exemption shall make tax-free purchases unless it has an
11 active identification number issued by the Department.
12 (12) Personal property sold to interstate carriers for
13 hire for use as rolling stock moving in interstate commerce
14 or to lessors under leases of one year or longer executed or
15 in effect at the time of purchase by interstate carriers for
16 hire for use as rolling stock moving in interstate commerce
17 and equipment operated by a telecommunications provider,
18 licensed as a common carrier by the Federal Communications
19 Commission, which is permanently installed in or affixed to
20 aircraft moving in interstate commerce.
21 (13) Proceeds from sales to owners, lessors, or shippers
22 of tangible personal property that is utilized by interstate
23 carriers for hire for use as rolling stock moving in
24 interstate commerce and equipment operated by a
25 telecommunications provider, licensed as a common carrier by
26 the Federal Communications Commission, which is permanently
27 installed in or affixed to aircraft moving in interstate
28 commerce.
29 (14) Machinery and equipment that will be used by the
30 purchaser, or a lessee of the purchaser, primarily in the
31 process of manufacturing or assembling tangible personal
32 property for wholesale or retail sale or lease, whether the
33 sale or lease is made directly by the manufacturer or by some
34 other person, whether the materials used in the process are
-28- LRB9110214SMdv
1 owned by the manufacturer or some other person, or whether
2 the sale or lease is made apart from or as an incident to the
3 seller's engaging in the service occupation of producing
4 machines, tools, dies, jigs, patterns, gauges, or other
5 similar items of no commercial value on special order for a
6 particular purchaser.
7 (15) Proceeds of mandatory service charges separately
8 stated on customers' bills for purchase and consumption of
9 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 (16) Petroleum products sold to a purchaser if the
16 seller is prohibited by federal law from charging tax to the
17 purchaser.
18 (17) Tangible personal property sold to a common carrier
19 by rail or motor that receives the physical possession of the
20 property in Illinois and that transports the property, or
21 shares with another common carrier in the transportation of
22 the property, out of Illinois on a standard uniform bill of
23 lading showing the seller of the property as the shipper or
24 consignor of the property to a destination outside Illinois,
25 for use outside Illinois.
26 (18) Legal tender, currency, medallions, or gold or
27 silver coinage issued by the State of Illinois, the
28 government of the United States of America, or the government
29 of any foreign country, and bullion.
30 (19) Oil field exploration, drilling, and production
31 equipment, including (i) rigs and parts of rigs, rotary rigs,
32 cable tool rigs, and workover rigs, (ii) pipe and tubular
33 goods, including casing and drill strings, (iii) pumps and
34 pump-jack units, (iv) storage tanks and flow lines, (v) any
-29- LRB9110214SMdv
1 individual replacement part for oil field exploration,
2 drilling, and production equipment, and (vi) machinery and
3 equipment purchased for lease; but excluding motor vehicles
4 required to be registered under the Illinois Vehicle Code.
5 (20) Photoprocessing machinery and equipment, including
6 repair and replacement parts, both new and used, including
7 that manufactured on special order, certified by the
8 purchaser to be used primarily for photoprocessing, and
9 including photoprocessing machinery and equipment purchased
10 for lease.
11 (21) Coal exploration, mining, offhighway hauling,
12 processing, maintenance, and reclamation equipment, including
13 replacement parts and equipment, and including equipment
14 purchased for lease, but excluding motor vehicles required to
15 be registered under the Illinois Vehicle Code.
16 (22) Fuel and petroleum products sold to or used by an
17 air carrier, certified by the carrier to be used for
18 consumption, shipment, or storage in the conduct of its
19 business as an air common carrier, for a flight destined for
20 or returning from a location or locations outside the United
21 States without regard to previous or subsequent domestic
22 stopovers.
23 (23) A transaction in which the purchase order is
24 received by a florist who is located outside Illinois, but
25 who has a florist located in Illinois deliver the property to
26 the purchaser or the purchaser's donee in Illinois.
27 (24) Fuel consumed or used in the operation of ships,
28 barges, or vessels that are used primarily in or for the
29 transportation of property or the conveyance of persons for
30 hire on rivers bordering on this State if the fuel is
31 delivered by the seller to the purchaser's barge, ship, or
32 vessel while it is afloat upon that bordering river.
33 (25) A motor vehicle sold in this State to a nonresident
34 even though the motor vehicle is delivered to the nonresident
-30- LRB9110214SMdv
1 in this State, if the motor vehicle is not to be titled in
2 this State, and if a driveaway decal permit is issued to the
3 motor vehicle as provided in Section 3-603 of the Illinois
4 Vehicle Code or if the nonresident purchaser has vehicle
5 registration plates to transfer to the motor vehicle upon
6 returning to his or her home state. The issuance of the
7 driveaway decal permit or having the out-of-state
8 registration plates to be transferred is prima facie evidence
9 that the motor vehicle will not be titled in this State.
10 (26) Semen used for artificial insemination of livestock
11 for direct agricultural production.
12 (27) Horses, or interests in horses, registered with and
13 meeting the requirements of any of the Arabian Horse Club
14 Registry of America, Appaloosa Horse Club, American Quarter
15 Horse Association, United States Trotting Association, or
16 Jockey Club, as appropriate, used for purposes of breeding or
17 racing for prizes.
18 (28) Computers and communications equipment utilized for
19 any hospital purpose and equipment used in the diagnosis,
20 analysis, or treatment of hospital patients sold to a lessor
21 who leases the equipment, under a lease of one year or longer
22 executed or in effect at the time of the purchase, to a
23 hospital that has been issued an active tax exemption
24 identification number by the Department under Section 1g of
25 this Act.
26 (29) Personal property sold to a lessor who leases the
27 property, under a lease of one year or longer executed or in
28 effect at the time of the purchase, to a governmental body
29 that has been issued an active tax exemption identification
30 number by the Department under Section 1g of this Act.
31 (30) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is donated
34 for disaster relief to be used in a State or federally
-31- LRB9110214SMdv
1 declared disaster area in Illinois or bordering Illinois by a
2 manufacturer or retailer that is registered in this State to
3 a corporation, society, association, foundation, or
4 institution that has been issued a sales tax exemption
5 identification number by the Department that assists victims
6 of the disaster who reside within the declared disaster area.
7 (31) Beginning with taxable years ending on or after
8 December 31, 1995 and ending with taxable years ending on or
9 before December 31, 2004, personal property that is used in
10 the performance of infrastructure repairs in this State,
11 including but not limited to municipal roads and streets,
12 access roads, bridges, sidewalks, waste disposal systems,
13 water and sewer line extensions, water distribution and
14 purification facilities, storm water drainage and retention
15 facilities, and sewage treatment facilities, resulting from a
16 State or federally declared disaster in Illinois or bordering
17 Illinois when such repairs are initiated on facilities
18 located in the declared disaster area within 6 months after
19 the disaster.
20 (32) Beginning July 1, 1999, game or game birds sold at
21 a "game breeding and hunting preserve area" or an "exotic
22 game hunting area" as those terms are used in the Wildlife
23 Code or at a hunting enclosure approved through rules adopted
24 by the Department of Natural Resources. This paragraph is
25 exempt from the provisions of Section 2-70.
26 (33) (32) A motor vehicle, as that term is defined in
27 Section 1-146 of the Illinois Vehicle Code, that is donated
28 to a corporation, limited liability company, society,
29 association, foundation, or institution that is determined by
30 the Department to be organized and operated exclusively for
31 educational purposes. For purposes of this exemption, "a
32 corporation, limited liability company, society, association,
33 foundation, or institution organized and operated exclusively
34 for educational purposes" means all tax-supported public
-32- LRB9110214SMdv
1 schools, private schools that offer systematic instruction in
2 useful branches of learning by methods common to public
3 schools and that compare favorably in their scope and
4 intensity with the course of study presented in tax-supported
5 schools, and vocational or technical schools or institutes
6 organized and operated exclusively to provide a course of
7 study of not less than 6 weeks duration and designed to
8 prepare individuals to follow a trade or to pursue a manual,
9 technical, mechanical, industrial, business, or commercial
10 occupation.
11 (34) (33) Beginning January 1, 2000, personal property,
12 including food, purchased through fundraising events for the
13 benefit of a public or private elementary or secondary
14 school, a group of those schools, or one or more school
15 districts if the events are sponsored by an entity recognized
16 by the school district that consists primarily of volunteers
17 and includes parents and teachers of the school children.
18 This paragraph does not apply to fundraising events (i) for
19 the benefit of private home instruction or (ii) for which the
20 fundraising entity purchases the personal property sold at
21 the events from another individual or entity that sold the
22 property for the purpose of resale by the fundraising entity
23 and that profits from the sale to the fundraising entity.
24 This paragraph is exempt from the provisions of Section 2-70.
25 (35) (32) Beginning January 1, 2000, new or used
26 automatic vending machines that prepare and serve hot food
27 and beverages, including coffee, soup, and other items, and
28 replacement parts for these machines. This paragraph is
29 exempt from the provisions of Section 2-70.
30 (36) Beginning January 1, 2001, any part, appliance,
31 accessory, or piece of equipment that is used by a new or
32 used motor vehicle dealer to complete a recall ordered by a
33 motor vehicle manufacturer, a state or the federal
34 government, or a court when that part, appliance, accessory,
-33- LRB9110214SMdv
1 or piece of equipment is provided without charge to the
2 person whose motor vehicle is subject to the recall. For the
3 purpose of this paragraph, "recall" includes (i) any recall
4 ordered by the National Highway Transportation Safety
5 Administration or a manufacturer pursuant to required filings
6 with the National Highway Transportation Safety
7 Administration and (ii) any other declaration by a
8 manufacturer that a safety defect or noncompliance is present
9 in a motor vehicle and that a repair of the safety defect or
10 noncompliance is necessary to ensure the safety of the
11 public. This paragraph is exempt from the provisions of
12 Section 2-70.
13 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98;
14 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff.
15 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533,
16 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99;
17 revised 9-28-99.)
18 Section 90. The State Mandates Act is amended by adding
19 Section 8.24 as follows:
20 (30 ILCS 805/8.24 new)
21 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
22 and 8 of this Act, no reimbursement by the State is required
23 for the implementation of any mandate created by this
24 amendatory Act of the 91st General Assembly.
25 Section 99. Effective date. This Act takes effect upon
26 becoming law.