State of Illinois
91st General Assembly
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[ Engrossed ][ House Amendment 001 ]

91_SB1929

                                               LRB9111995SMdv

 1        AN ACT in relation to taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Qualified Technological Equipment Leasing Occupation and  Use
 6    Tax Act.

 7        Section   5.  Definitions.  As  used  in  this  Act,  the
 8    following terms have the following meanings:
 9        "Access fees" means fees that  an  interexchange  carrier
10    pays  to  a  local  exchange carrier for the use of its local
11    network to originate or terminate communication services.
12        "Computer" means a programmable electronically  activated
13    device that:
14        (a)  is   capable   of  accepting  information,  applying
15    prescribed processes as to the information, and supplying the
16    results  of   these   processes   with   or   without   human
17    intervention, and
18        (b)  consists  of  a  central  processing unit containing
19    extensive   storage,   logic,   arithmetic,    and    control
20    capabilities.
21        "Computer or peripheral equipment" means:
22        (a)  any computer, and
23        (b)  any related peripheral equipment, however
24        (c)  the term "computer or peripheral equipment" does not
25    include:
26             (i)  any equipment that is an integral part of other
27        property that is not a computer,
28             (ii)  typewriters,     calculators,    adding    and
29        accounting machines, copiers, duplicating equipment,  and
30        similar equipment, and
31             (iii)  equipment   of  a  kind  used  primarily  for
 
                           -2-                 LRB9111995SMdv
 1        amusement or entertainment of the user.
 2        "Department" means the Department of Revenue.
 3        "High technology medical equipment" means any electronic,
 4    electromechanical,   or   computer-based   high    technology
 5    equipment  used  in  the  screening, monitoring, observation,
 6    diagnosis, or treatment of patients in a laboratory, medical,
 7    or hospital environment.
 8        "Person" means any natural individual, limited  liability
 9    company, firm, partnership, association, joint stock company,
10    joint  venture, public or private corporation, or a receiver,
11    executor,  trustee,  conservator,  or  other  representatives
12    appointed by order of any court.
13        "Leasing" means any transfer of the possession  or  right
14    to  possession of qualified technological equipment to a user
15    for valuable consideration, for the purpose of  use  and  not
16    for the purpose of re-lease or sublease.
17        "Lessor"  means  any  person  primarily  engaged  in  the
18    business  of leasing tangible personal property to users. For
19    this purpose,  the  objective  of  making  a  profit  is  not
20    necessary  to  make  the  leasing  activity  a  business. For
21    purposes of this definition, "primarily" means deriving  more
22    than  50%  of  gross  revenue  from  the  business of leasing
23    tangible personal property to users.  Gross revenue from  the
24    business  of leasing tangible personal property to users does
25    not include access fees.
26        "Lessee" means any user to whom the  possession,  or  the
27    right  to possession, of qualified technological equipment is
28    transferred for a valuable consideration that is paid by such
29    "lessee" or by someone else.
30        "Gross receipts" means the total leasing  price  for  the
31    lease  of  qualified  technological equipment. In the case of
32    lease transactions in which the consideration is paid to  the
33    lessor  on an installment basis, the amounts of such payments
34    shall be included by the lessor in gross receipts only as and
 
                           -3-                 LRB9111995SMdv
 1    when payments are received by the lessor.
 2        "Leasing  price"  means  the  consideration  for  leasing
 3    qualified technological equipment valued  in  money,  whether
 4    received  in  money  or  otherwise,  including cash, credits,
 5    property, and services, and shall be determined  without  any
 6    deduction  on account of the cost of the property leased, the
 7    cost of materials used, labor or service cost, or  any  other
 8    expense  whatsoever,  but  does  not include charges that are
 9    added by lessors on account of  the  lessor's  tax  liability
10    under  this  Act,  or  on  account  of  the  lessor's duty to
11    collect, from the lessee, the tax that is imposed by  Section
12    20 of this Act.
13        "Maintaining  a  place  of  business in this State" means
14    having or maintaining within this State,  directly  or  by  a
15    subsidiary, an office, repair facilities, distribution house,
16    sales  house,  warehouse,  or other place of business, or any
17    agent, or other representative, operating within this  State,
18    irrespective  of  whether  the  place of business or agent or
19    other  representative  is   located   here   permanently   or
20    temporarily.
21        "Qualified  technological equipment" for purposes of this
22    Act means the following:
23        (a) any computer or peripheral equipment; and
24        (b) any high technology medical equipment.
25        "Related  peripheral  equipment"  means   any   auxiliary
26    machine  (whether on-line or off-line) that is designed to be
27    placed under the control of the central processing unit of  a
28    computer.

29        Section  10. Imposition of occupation tax. Beginning with
30    leases for periods of one year or more entered  into  on  and
31    after  January 1, 2001, a tax is imposed upon lessors engaged
32    in  this  State  in  the  business   of   leasing   qualified
33    technological  equipment  in Illinois at the rate of 6.25% of
 
                           -4-                 LRB9111995SMdv
 1    the gross  receipts  received  from  the  business.  The  tax
 2    imposed by this Section does not apply to access fees.
 3        The  Department  shall  have full power to administer and
 4    enforce this Section, to collect all taxes and penalties  due
 5    hereunder,  to dispose of taxes and penalties so collected in
 6    the manner hereinafter provided, and to determine all  rights
 7    to  credit  memoranda,  arising  on  account of the erroneous
 8    payment of tax or penalty hereunder.  In  the  administration
 9    of,  and  compliance  with,  this Section, the Department and
10    persons who are subject to this Section shall have  the  same
11    rights,  remedies, privileges, immunities, powers and duties,
12    and  be  subject  to  the  same   conditions,   restrictions,
13    limitations,  penalties, and definitions of terms, and employ
14    the same modes of procedure, as are prescribed in Sections 1,
15    la, 2 through 2-65 (except as to the rate of  tax),  2a,  2b,
16    2c,  3 (except provisions relating to transaction returns and
17    quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,  5g,
18    5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
19    Retailers'  Occupation Tax Act that are not inconsistent with
20    this Act and all Sections of the Uniform Penalty and Interest
21    Act as fully as if those provisions were  set  forth  herein.
22    For purposes of this Section, references in such incorporated
23    Sections  of  the Retailers' Occupation Tax Act to retailers,
24    sellers, or  persons  engaged  in  the  business  of  selling
25    tangible  personal  property  means  persons  engaged  in the
26    leasing of qualified  technological  equipment  under  leases
27    subject to this Act.
28        Each  month  the  Department  shall  pay  into  the Local
29    Government Distributive Fund 20% of the net revenue  realized
30    for  the  preceding  month from the 6.25% tax imposed in this
31    Section. These amounts shall be  distributed  in  the  manner
32    provided  in  Section 2 of the State Revenue Sharing Act. The
33    remaining 80% of the revenue shall be paid as provided for in
34    Section 3 of the Retailers' Occupation Tax Act.
 
                           -5-                 LRB9111995SMdv
 1        Section 15. Registration. Every person  engaged  in  this
 2    State  in  the  business  of  leasing qualified technological
 3    equipment  shall  apply  to  the  Department  (upon  a   form
 4    prescribed and furnished by the Department) for a certificate
 5    of   registration   under   this   Act.  The  certificate  of
 6    registration that is issued by the Department to  a  retailer
 7    under  the  Retailers'  Occupation  Tax  Act shall permit the
 8    lessor to engage in a business that  is  taxable  under  this
 9    Section without registering separately with the Department.

10        Section  20. Imposition of use tax. Beginning with leases
11    for periods of one year or more entered  into  on  and  after
12    January 1, 2001, a tax is imposed upon the privilege of using
13    in  this  State  qualified  technological  equipment  that is
14    leased from a lessor. The tax is at the rate of 6.25% of  the
15    leasing  price  of the qualified technological equipment paid
16    to the lessor under any lease agreement.
17        It is presumed that a lessee has not leased from a lessor
18    if the lessor fails to show the tax imposed by this Act on an
19    invoice to the lessee.  The presumption shall  not,  however,
20    prevent the Department from proceeding against the lessor for
21    any  tax  due under the provisions of this Act or the Use Tax
22    Act, whichever applies.  The tax imposed by this Section does
23    not apply to access fees.
24        The Department shall have full power  to  administer  and
25    enforce  this  Section;  to collect all taxes, penalties, and
26    interest due hereunder; to dispose of taxes,  penalties,  and
27    interest so collected in the manner hereinafter provided; and
28    to  determine  all  rights  to  credit  memoranda  or refunds
29    arising on account of the erroneous payment of tax,  penalty,
30    or   interest   hereunder.  In  the  administration  of,  and
31    compliance with, this Section, the Department and persons who
32    are subject to this  Section  shall  have  the  same  rights,
33    remedies,  privileges, immunities, powers, and duties, and be
 
                           -6-                 LRB9111995SMdv
 1    subject to the same  conditions,  restrictions,  limitations,
 2    penalties,  and  definitions  of  terms,  and employ the same
 3    modes of procedure,  as  are  prescribed  in  Sections  2,  3
 4    through  3-80  (except  as to the rate of tax), 4, 6, 7, 8, 9
 5    (except  provisions  relating  to  transaction  returns   and
 6    quarter  monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
 7    19,  20,  21  and  22  of  the  Use  Tax  Act  that  are  not
 8    inconsistent with this Act as fully as  if  those  provisions
 9    were   set  forth  herein.  For  purposes  of  this  Section,
10    references in such incorporated Sections of the Use  Tax  Act
11    to   users   or   purchasers   means   lessees  of  qualified
12    technological equipment under leases subject to this Act.
13        Each month  the  Department  shall  pay  into  the  Local
14    Government  Distributive Fund 20% of the net revenue realized
15    for the preceding month from the 6.25% tax  imposed  in  this
16    Section.  These  amounts  shall  be distributed in the manner
17    provided in Section 2 of the State Revenue Sharing  Act.  The
18    remaining 80% of the revenue shall be paid as provided for in
19    Section 9 of the Use Tax Act.

20        Section  25.  Exemption  due to prior taxation. The taxes
21    imposed under Sections 10 and 20 of this Act do not apply  to
22    leases  of  qualified  technological  equipment as defined in
23    this Act if the lessor had properly paid, prior to January 1,
24    2001, Illinois use tax or service use tax to  a  retailer  or
25    directly  to  the  Department  on the purchase or use of such
26    leased property.

27        Section 30. Use tax collected. The  use  tax  imposed  by
28    Section 20 shall be collected from the lessee and remitted to
29    the Department by a lessor maintaining a place of business in
30    this State.
31        The  use  tax  imposed  by  Section  20 and not paid to a
32    lessor pursuant to the preceding paragraph  of  this  Section
 
                           -7-                 LRB9111995SMdv
 1    shall  be paid to the Department directly by any person using
 2    the leased  qualified  technological  equipment  within  this
 3    State.
 4        Lessors  shall collect the tax from lessees by adding the
 5    tax to the  leasing  price  of  the  qualified  technological
 6    equipment  in  the  manner  prescribed by the Department. The
 7    Department shall have  the  power  to  adopt  and  promulgate
 8    reasonable rules and regulations for the adding of the tax by
 9    lessors  to leasing prices by prescribing bracket systems for
10    the purpose of enabling the lessors to add  and  collect,  as
11    far as practicable, the amount of the tax.
12        The  tax  imposed  by  this Act shall, when collected, be
13    stated as a distinct item on the  customer's  bill,  separate
14    and   apart   from   the   leasing  price  of  the  qualified
15    technological equipment.

16        Section 35.  Exemption for manufacturer-lessors.  In  the
17    case  of  a  manufacturer  which  is  the lessor of qualified
18    technological equipment  which  the  manufacturer-lessor  has
19    manufactured,  the  tax  imposed  by this Act shall not apply
20    and, in lieu thereof, the manufacturer-lessor shall  pay  use
21    tax pursuant to the Use Tax Act and regulations thereunder.

22        Section   40.    Opt   out   for  lessees.   As  to  each
23    transaction, a qualified  lessee  shall  have  the  right  to
24    direct  the  lessor  not  to  pay  the State of Illinois, nor
25    collect from the qualified lessee, tax under this Act and, in
26    lieu  thereof,  to  pay  tax  pursuant  to   the   Retailers'
27    Occupation  Tax  Act or the Use Tax Act, whichever may apply.
28    For purposes of this Section, "transaction" means  a  leasing
29    contract  between  a  qualified lessee and a lessor.  Under a
30    blanket or  master  contract  which  is  implemented  by  the
31    lessee's  placing  of  a  lease schedule or similar document,
32    each lease schedule or similar document shall be considered a
 
                           -8-                 LRB9111995SMdv
 1    separate leasing contract.  For the purposes of this Section,
 2    "qualified lessee" means any lessee which has  its  corporate
 3    headquarters  in Illinois in a municipality with a population
 4    of 100,000 or more, has 3 or more manufacturing facilities in
 5    Illinois, has its common stock listed on the New  York  Stock
 6    Exchange,  has  annual sales of $10 billion per year or more,
 7    and manufactures at least 2 of  the  following  in  Illinois:
 8    heavy duty machines, construction machines, material handling
 9    machines,   or   diesel   engines.  The  definition  of  what
10    constitutes a heavy duty machine, a construction  machine,  a
11    material  handling  machine,  or a diesel engine shall be the
12    definition used by  the  qualified  lessee  in  the  ordinary
13    course of its business.

14        Section 45. Severability clause. If any clause, sentence,
15    Section,  provision,  or  part  thereof  of  this  Act or the
16    application thereof to any person or  circumstance  shall  be
17    adjudged to be unconstitutional, the remainder of this Act or
18    its  application to persons or circumstances other than those
19    to which it is held invalid, shall not be  affected  thereby.
20    In  particular,  if  any  provision  that  exempts or has the
21    effect of exempting some class of users or some kind  of  use
22    from the tax imposed by this Act should be held to constitute
23    or   to   result  in  an  invalid  classification  or  to  be
24    unconstitutional for some other reason, that provision  shall
25    be  deemed  to  be  severable, with the remainder of this Act
26    without the provision being held constitutional.

27        Section 105.  The State Revenue Sharing Act is amended by
28    changing Section 1 as follows:

29        (30 ILCS 115/1) (from Ch. 85, par. 611)
30        Sec. 1. Local Government Distributive Fund. Through  June
31    30, 1994, as soon as may be after the first day of each month
 
                           -9-                 LRB9111995SMdv
 1    the  Department  of Revenue shall certify to the Treasurer an
 2    amount equal to 1/12 of the net revenue realized from the tax
 3    imposed by subsections (a) and (b)  of  Section  201  of  the
 4    Illinois   Income   Tax   Act  during  the  preceding  month.
 5    Beginning July 1, 1994, and continuing through June 30, 1995,
 6    as soon as may be after the first  day  of  each  month,  the
 7    Department  of  Revenue  shall  certify  to  the Treasurer an
 8    amount equal to 1/11 of the net revenue realized from the tax
 9    imposed by subsections (a) and (b)  of  Section  201  of  the
10    Illinois Income Tax Act during the preceding month. Beginning
11    July  1,  1995, as soon as may be after the first day of each
12    month,  the  Department  of  Revenue  shall  certify  to  the
13    Treasurer an amount equal to 1/10 of the net revenue realized
14    from the tax imposed by subsections (a) and  (b)  of  Section
15    201  of  the  Illinois  Income  Tax  Act during the preceding
16    month. Net revenue realized for a month shall be  defined  as
17    the  revenue  from the tax imposed by subsections (a) and (b)
18    of Section 201 of  the  Illinois  Income  Tax  Act  which  is
19    deposited   in   the  General  Revenue  Fund,  the  Education
20    Assistance Fund and the Income Tax Surcharge Local Government
21    Distributive Fund during the month minus the amount paid  out
22    of  the  General  Revenue  Fund in State warrants during that
23    same  month  as  refunds  to  taxpayers  for  overpayment  of
24    liability under the tax imposed by subsections (a) and (b) of
25    Section 201 of the Illinois  Income  Tax  Act.  In  addition,
26    beginning  January 1, 2001, as soon as may be after the first
27    day of each  month,  the  Department  shall  certify  to  the
28    Treasurer  an amount equal to 1/5 of the net revenue realized
29    under   the   Qualified   Technological   Equipment   Leasing
30    Occupation  and  Use  Tax  Act.    Upon   receipt   of   such
31    certification,  the Treasurer shall transfer from the General
32    Revenue Fund to a special fund in the State treasury,  to  be
33    known as the "Local Government Distributive Fund", the amount
34    shown on such certification.
 
                           -10-                LRB9111995SMdv
 1        All  amounts  paid into the Local Government Distributive
 2    Fund in accordance with this Section and  allocated  pursuant
 3    to this Act are appropriated on a continuing basis.
 4    (Source: P.A. 88-89.)

 5        Section  110.   The  Use  Tax  Act is amended by changing
 6    Sections 3-5 and 9 and adding Section 9.5 as follows:

 7        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
 8        Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
 9    personal property is exempt from the tax imposed by this Act:
10        (1)  Personal  property  purchased  from  a  corporation,
11    society,    association,    foundation,    institution,    or
12    organization, other than a limited liability company, that is
13    organized and operated as a not-for-profit service enterprise
14    for  the  benefit  of persons 65 years of age or older if the
15    personal property was not purchased by the enterprise for the
16    purpose of resale by the enterprise.
17        (2)  Personal  property  purchased  by  a  not-for-profit
18    Illinois county  fair  association  for  use  in  conducting,
19    operating, or promoting the county fair.
20        (3)  Personal property purchased by a not-for-profit arts
21    or  cultural organization that establishes, by proof required
22    by the Department by rule, that it has received an  exemption
23    under Section 501(c)(3) of the Internal Revenue Code and that
24    is  organized and operated for the presentation or support of
25    arts or cultural programming, activities, or services.  These
26    organizations include, but are  not  limited  to,  music  and
27    dramatic  arts  organizations such as symphony orchestras and
28    theatrical groups, arts and cultural  service  organizations,
29    local  arts  councils,  visual  arts organizations, and media
30    arts organizations.
31        (4)  Personal property purchased by a governmental  body,
32    by   a  corporation,  society,  association,  foundation,  or
 
                           -11-                LRB9111995SMdv
 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
 
                           -12-                LRB9111995SMdv
 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.
 
                           -13-                LRB9111995SMdv
 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
 
                           -14-                LRB9111995SMdv
 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
 
                           -15-                LRB9111995SMdv
 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.  This
29    paragraph is exempt from the provisions of Section 3-90.
30        (23)  Personal  property purchased by a lessor who leases
31    the property, under a lease of  one year or  longer  executed
32    or  in  effect  at  the  time  the  lessor would otherwise be
33    subject to the tax imposed by this  Act,  to  a  governmental
34    body  that  has  been  issued  an  active sales tax exemption
 
                           -16-                LRB9111995SMdv
 1    identification number by the Department under Section  1g  of
 2    the  Retailers' Occupation Tax Act. If the property is leased
 3    in a manner that does not qualify for this exemption or  used
 4    in  any  other  non-exempt manner, the lessor shall be liable
 5    for the tax imposed under this Act or  the  Service  Use  Tax
 6    Act,  as  the  case may be, based on the fair market value of
 7    the property at the time the non-qualifying use  occurs.   No
 8    lessor shall collect or attempt to collect an amount (however
 9    designated)  that  purports  to reimburse that lessor for the
10    tax imposed by this Act or the Service Use Tax  Act,  as  the
11    case  may be, if the tax has not been paid by the lessor.  If
12    a lessor improperly collects any such amount from the lessee,
13    the lessee shall have a legal right to claim a refund of that
14    amount from the lessor.  If,  however,  that  amount  is  not
15    refunded  to  the lessee for any reason, the lessor is liable
16    to pay that amount  to  the  Department.  This  paragraph  is
17    exempt from the provisions of Section 3-90.
18        (24)  Beginning  with  taxable  years  ending on or after
19    December 31, 1995 and ending with taxable years ending on  or
20    before  December  31, 2004, personal property that is donated
21    for disaster relief to  be  used  in  a  State  or  federally
22    declared disaster area in Illinois or bordering Illinois by a
23    manufacturer  or retailer that is registered in this State to
24    a   corporation,   society,   association,   foundation,   or
25    institution that  has  been  issued  a  sales  tax  exemption
26    identification  number by the Department that assists victims
27    of the disaster who reside within the declared disaster area.
28        (25)  Beginning with taxable years  ending  on  or  after
29    December  31, 1995 and ending with taxable years ending on or
30    before December 31, 2004, personal property that is  used  in
31    the  performance  of  infrastructure  repairs  in this State,
32    including but not limited to  municipal  roads  and  streets,
33    access  roads,  bridges,  sidewalks,  waste disposal systems,
34    water and  sewer  line  extensions,  water  distribution  and
 
                           -17-                LRB9111995SMdv
 1    purification  facilities,  storm water drainage and retention
 2    facilities, and sewage treatment facilities, resulting from a
 3    State or federally declared disaster in Illinois or bordering
 4    Illinois  when  such  repairs  are  initiated  on  facilities
 5    located in the declared disaster area within 6  months  after
 6    the disaster.
 7        (26)  Beginning   July   1,  1999,  game  or  game  birds
 8    purchased at a "game breeding and hunting preserve  area"  or
 9    an  "exotic game hunting area" as those terms are used in the
10    Wildlife Code or at  a  hunting  enclosure  approved  through
11    rules  adopted  by the Department of Natural Resources.  This
12    paragraph is exempt from the provisions of Section 3-90.
13        (27) (26)  A motor vehicle, as that term  is  defined  in
14    Section  1-146  of the Illinois Vehicle Code, that is donated
15    to  a  corporation,  limited  liability   company,   society,
16    association, foundation, or institution that is determined by
17    the  Department  to be organized and operated exclusively for
18    educational purposes.  For purposes  of  this  exemption,  "a
19    corporation, limited liability company, society, association,
20    foundation, or institution organized and operated exclusively
21    for  educational  purposes"  means  all  tax-supported public
22    schools, private schools that offer systematic instruction in
23    useful branches of  learning  by  methods  common  to  public
24    schools  and  that  compare  favorably  in  their  scope  and
25    intensity with the course of study presented in tax-supported
26    schools,  and  vocational  or technical schools or institutes
27    organized and operated exclusively to  provide  a  course  of
28    study  of  not  less  than  6  weeks duration and designed to
29    prepare individuals to follow a trade or to pursue a  manual,
30    technical,  mechanical,  industrial,  business, or commercial
31    occupation.
32        (28) (27)  Beginning January 1, 2000,  personal property,
33    including food, purchased through fundraising events for  the
34    benefit  of  a  public  or  private  elementary  or secondary
 
                           -18-                LRB9111995SMdv
 1    school, a group of those  schools,  or  one  or  more  school
 2    districts if the events are sponsored by an entity recognized
 3    by  the school district that consists primarily of volunteers
 4    and includes parents and teachers  of  the  school  children.
 5    This  paragraph  does not apply to fundraising events (i) for
 6    the benefit of private home instruction or (ii) for which the
 7    fundraising entity purchases the personal  property  sold  at
 8    the  events  from  another individual or entity that sold the
 9    property for the purpose of resale by the fundraising  entity
10    and  that  profits  from  the sale to the fundraising entity.
11    This paragraph is exempt from the provisions of Section 3-90.
12        (29)  (26)  Beginning  January  1,  2000,  new  or   used
13    automatic  vending  machines  that prepare and serve hot food
14    and beverages, including coffee, soup, and other  items,  and
15    replacement  parts  for  these  machines.   This paragraph is
16    exempt from the provisions of Section 3-90.
17        (30)  Beginning January 1, 2001, qualified  technological
18    equipment purchased for lease by lessors under leases subject
19    to  the  Qualified Technological Equipment Leasing Occupation
20    and Use Tax Act. However, this exemption will  last  only  as
21    long  as  the  property continues to be leased by the lessor.
22    When the property  is  no  longer  used  for  lease  and  the
23    property  reverts  to  the lessor, the property is subject to
24    the tax imposed by this Act upon the fair market value of the
25    property on the date of the reversion.  The property will not
26    be considered to revert to the lessor as long as  the  lessor
27    holds the property in his or her lease inventory and does not
28    otherwise   use   the   property,  except  for  demonstration
29    purposes.  In addition, property held in the  lessor's  lease
30    inventory  that  is  subsequently leased for a period of less
31    than one year will not be considered to revert to the  lessor
32    if  the  property  is  returned  to  lease  inventory  at the
33    termination of the lease.  This paragraph is exempt from  the
34    provisions of Section 3-90.
 
                           -19-                LRB9111995SMdv
 1    (Source:  P.A.  90-14,  eff.  7-1-97;  90-552, eff. 12-12-97;
 2    90-605, eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200,  eff.
 3    7-20-99;  91-439,  eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
 4    eff. 8-20-99; revised 9-29-99.)

 5        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
 6        Sec.  9.  Except  as  to  motor   vehicles,   watercraft,
 7    aircraft,  and  trailers  that  are required to be registered
 8    with an agency of  this  State,  each  retailer  required  or
 9    authorized  to  collect the tax imposed by this Act shall pay
10    to the Department the amount of such tax (except as otherwise
11    provided) at the time when he is required to file his  return
12    for  the  period  during which such tax was collected, less a
13    discount of 2.1% prior to January 1, 1990, and 1.75%  on  and
14    after  January 1, 1990, or $5 per calendar year, whichever is
15    greater, which is  allowed  to  reimburse  the  retailer  for
16    expenses  incurred  in  collecting  the tax, keeping records,
17    preparing and filing returns, remitting the tax and supplying
18    data to the Department on request.  In the case of  retailers
19    who  report  and  pay the tax on a transaction by transaction
20    basis, as provided in this Section, such  discount  shall  be
21    taken  with  each  such  tax  remittance instead of when such
22    retailer files his periodic  return.   A  retailer  need  not
23    remit  that  part  of  any tax collected by him to the extent
24    that he is required to remit and does remit the  tax  imposed
25    by  the  Retailers'  Occupation  Tax Act, with respect to the
26    sale of the same property.
27        Where such tangible personal property  is  sold  under  a
28    conditional  sales  contract, or under any other form of sale
29    wherein the payment of the principal sum, or a part  thereof,
30    is  extended  beyond  the  close  of the period for which the
31    return is filed, the retailer, in collecting the tax  (except
32    as to motor vehicles, watercraft, aircraft, and trailers that
33    are  required to be registered with an agency of this State),
 
                           -20-                LRB9111995SMdv
 1    may  collect  for  each  tax  return  period,  only  the  tax
 2    applicable  to  that  part  of  the  selling  price  actually
 3    received during such tax return period.
 4        Except as provided in this  Section,  on  or  before  the
 5    twentieth  day  of  each  calendar month, such retailer shall
 6    file a return for the preceding calendar month.  Such  return
 7    shall  be  filed  on  forms  prescribed by the Department and
 8    shall  furnish  such  information  as  the   Department   may
 9    reasonably require.
10        The  Department  may  require  returns  to  be filed on a
11    quarterly basis.  If so required, a return for each  calendar
12    quarter  shall be filed on or before the twentieth day of the
13    calendar month following the end of  such  calendar  quarter.
14    The taxpayer shall also file a return with the Department for
15    each  of the first two months of each calendar quarter, on or
16    before the twentieth day of  the  following  calendar  month,
17    stating:
18             1.  The name of the seller;
19             2.  The  address  of the principal place of business
20        from which he engages in the business of selling tangible
21        personal property at retail in this State;
22             3.  The total amount of taxable receipts received by
23        him during the preceding calendar  month  from  sales  of
24        tangible  personal  property by him during such preceding
25        calendar month, including receipts from charge  and  time
26        sales, but less all deductions allowed by law;
27             4.  The  amount  of credit provided in Section 2d of
28        this Act;
29             5.  The amount of tax due;
30             5-5.  The signature of the taxpayer; and
31             6.  Such  other  reasonable   information   as   the
32        Department may require.
33        If a taxpayer fails to sign a return within 30 days after
34    the proper notice and demand for signature by the Department,
 
                           -21-                LRB9111995SMdv
 1    the  return shall be considered valid and any amount shown to
 2    be due on the return shall be deemed assessed.
 3        Beginning October 1, 1993, a taxpayer who has an  average
 4    monthly  tax  liability  of  $150,000  or more shall make all
 5    payments required by rules of the  Department  by  electronic
 6    funds transfer. Beginning October 1, 1994, a taxpayer who has
 7    an  average  monthly  tax liability of $100,000 or more shall
 8    make all payments required by  rules  of  the  Department  by
 9    electronic  funds  transfer.  Beginning  October  1,  1995, a
10    taxpayer who has an average monthly tax liability of  $50,000
11    or  more  shall  make  all  payments required by rules of the
12    Department by electronic funds transfer. Beginning October 1,
13    2000, a taxpayer who has an annual tax liability of  $200,000
14    or  more  shall  make  all  payments required by rules of the
15    Department by electronic funds transfer.   The  term  "annual
16    tax liability" shall be the sum of the taxpayer's liabilities
17    under   this  Act,  and  under  all  other  State  and  local
18    occupation and use tax laws administered by  the  Department,
19    for   the  immediately  preceding  calendar  year.  The  term
20    "average  monthly  tax  liability"  means  the  sum  of   the
21    taxpayer's  liabilities  under  this Act, and under all other
22    State and local occupation and use tax laws  administered  by
23    the  Department,  for the immediately preceding calendar year
24    divided by 12.
25        Before August 1 of  each  year  beginning  in  1993,  the
26    Department  shall  notify  all  taxpayers  required  to  make
27    payments by electronic funds transfer. All taxpayers required
28    to  make  payments  by  electronic  funds transfer shall make
29    those payments for a minimum of one year beginning on October
30    1.
31        Any taxpayer not required to make payments by  electronic
32    funds transfer may make payments by electronic funds transfer
33    with the permission of the Department.
34        All  taxpayers  required  to  make  payment by electronic
 
                           -22-                LRB9111995SMdv
 1    funds transfer and any taxpayers  authorized  to  voluntarily
 2    make  payments  by electronic funds transfer shall make those
 3    payments in the manner authorized by the Department.
 4        The Department shall adopt such rules as are necessary to
 5    effectuate a program of electronic  funds  transfer  and  the
 6    requirements of this Section.
 7        Before October 1, 2000, if the taxpayer's average monthly
 8    tax   liability   to  the  Department  under  this  Act,  the
 9    Retailers' Occupation Tax Act,  the  Service  Occupation  Tax
10    Act,  the  Service Use Tax Act was $10,000 or more during the
11    preceding 4 complete  calendar  quarters,  he  shall  file  a
12    return  with the Department each month by the 20th day of the
13    month  next  following  the  month  during  which  such   tax
14    liability   is  incurred  and  shall  make  payments  to  the
15    Department on or before the 7th, 15th, 22nd and last  day  of
16    the  month  during  which  such liability is incurred. On and
17    after October 1, 2000, if the taxpayer's average monthly  tax
18    liability  to  the  Department under this Act, the Retailers'
19    Occupation Tax Act, the Service Occupation Tax Act,  and  the
20    Service  Use Tax Act was $20,000 or more during the preceding
21    4 complete calendar quarters, he shall file a return with the
22    Department each month by the  20th  day  of  the  month  next
23    following  the  month  during  which  such  tax  liability is
24    incurred and shall make  payment  to  the  Department  on  or
25    before  the  7th,  15th,  22nd  and  last day of or the month
26    during which such liability is incurred. If the month  during
27    which  such  tax liability is incurred began prior to January
28    1, 1985, each payment shall be in an amount equal to  1/4  of
29    the  taxpayer's  actual  liability for the month or an amount
30    set by the Department  not  to  exceed  1/4  of  the  average
31    monthly  liability  of the taxpayer to the Department for the
32    preceding 4 complete calendar quarters (excluding  the  month
33    of  highest  liability  and  the month of lowest liability in
34    such 4 quarter period).  If the month during which  such  tax
 
                           -23-                LRB9111995SMdv
 1    liability is incurred begins on or after January 1, 1985, and
 2    prior  to January 1, 1987, each payment shall be in an amount
 3    equal to 22.5% of the taxpayer's  actual  liability  for  the
 4    month  or  27.5%  of  the  taxpayer's  liability for the same
 5    calendar month of the preceding year.  If  the  month  during
 6    which  such  tax  liability  is  incurred  begins on or after
 7    January 1, 1987, and prior to January 1, 1988,  each  payment
 8    shall be in an amount equal to 22.5% of the taxpayer's actual
 9    liability for the month or 26.25% of the taxpayer's liability
10    for  the  same  calendar month of the preceding year.  If the
11    month during which such tax liability is incurred  begins  on
12    or  after  January  1, 1988, and prior to January 1, 1989, or
13    begins on or after January 1, 1996, each payment shall be  in
14    an  amount  equal to 22.5% of the taxpayer's actual liability
15    for the month or 25% of the taxpayer's liability for the same
16    calendar month of the preceding year.  If  the  month  during
17    which  such  tax  liability  is  incurred  begins on or after
18    January 1, 1989, and prior to January 1, 1996,  each  payment
19    shall be in an amount equal to 22.5% of the taxpayer's actual
20    liability  for  the  month or 25% of the taxpayer's liability
21    for the same calendar month of the preceding year or 100%  of
22    the  taxpayer's  actual  liability  for  the  quarter monthly
23    reporting  period.   The  amount  of  such  quarter   monthly
24    payments shall be credited against the final tax liability of
25    the  taxpayer's  return  for  that  month.  Before October 1,
26    2000, once applicable,  the  requirement  of  the  making  of
27    quarter  monthly  payments  to  the Department shall continue
28    until  such  taxpayer's  average  monthly  liability  to  the
29    Department during the preceding 4 complete calendar  quarters
30    (excluding  the  month  of highest liability and the month of
31    lowest  liability)  is  less  than  $9,000,  or  until   such
32    taxpayer's  average  monthly  liability  to the Department as
33    computed  for  each  calendar  quarter  of  the  4  preceding
34    complete  calendar  quarter  period  is  less  than  $10,000.
 
                           -24-                LRB9111995SMdv
 1    However, if  a  taxpayer  can  show  the  Department  that  a
 2    substantial  change  in  the taxpayer's business has occurred
 3    which causes the taxpayer  to  anticipate  that  his  average
 4    monthly  tax  liability for the reasonably foreseeable future
 5    will fall below the $10,000 threshold stated above, then such
 6    taxpayer may petition  the  Department  for  change  in  such
 7    taxpayer's  reporting  status.  On and after October 1, 2000,
 8    once applicable, the requirement of  the  making  of  quarter
 9    monthly  payments to the Department shall continue until such
10    taxpayer's average monthly liability to the Department during
11    the preceding 4 complete  calendar  quarters  (excluding  the
12    month of highest liability and the month of lowest liability)
13    is less than $19,000 or until such taxpayer's average monthly
14    liability  to  the  Department  as computed for each calendar
15    quarter of the 4 preceding complete calendar  quarter  period
16    is  less  than  $20,000.  However, if a taxpayer can show the
17    Department  that  a  substantial  change  in  the  taxpayer's
18    business has occurred which causes the taxpayer to anticipate
19    that his average monthly tax  liability  for  the  reasonably
20    foreseeable  future  will  fall  below  the $20,000 threshold
21    stated above, then such taxpayer may petition the  Department
22    for  a  change  in  such  taxpayer's  reporting  status.  The
23    Department shall  change  such  taxpayer's  reporting  status
24    unless  it  finds  that such change is seasonal in nature and
25    not likely to be long  term.  If  any  such  quarter  monthly
26    payment  is not paid at the time or in the amount required by
27    this Section, then the taxpayer shall be liable for penalties
28    and interest on the difference between the minimum amount due
29    and the amount of such quarter monthly payment  actually  and
30    timely  paid,  except  insofar as the taxpayer has previously
31    made payments for that month to the Department in  excess  of
32    the  minimum  payments  previously  due  as  provided in this
33    Section.  The Department  shall  make  reasonable  rules  and
34    regulations  to govern the quarter monthly payment amount and
 
                           -25-                LRB9111995SMdv
 1    quarter monthly payment dates for taxpayers who file on other
 2    than a calendar monthly basis.
 3        If any such payment provided for in this Section  exceeds
 4    the  taxpayer's  liabilities  under  this Act, the Retailers'
 5    Occupation Tax Act, the Service Occupation Tax  Act  and  the
 6    Service  Use Tax Act, as shown by an original monthly return,
 7    the  Department  shall  issue  to  the  taxpayer   a   credit
 8    memorandum  no  later than 30 days after the date of payment,
 9    which memorandum may be submitted  by  the  taxpayer  to  the
10    Department  in  payment  of  tax liability subsequently to be
11    remitted by the taxpayer to the Department or be assigned  by
12    the  taxpayer  to  a  similar  taxpayer  under  this Act, the
13    Retailers' Occupation Tax Act, the Service Occupation Tax Act
14    or the Service Use Tax Act,  in  accordance  with  reasonable
15    rules  and  regulations  to  be prescribed by the Department,
16    except that if such excess payment is shown  on  an  original
17    monthly return and is made after December 31, 1986, no credit
18    memorandum shall be issued, unless requested by the taxpayer.
19    If  no  such  request  is  made, the taxpayer may credit such
20    excess payment  against  tax  liability  subsequently  to  be
21    remitted  by  the  taxpayer to the Department under this Act,
22    the Retailers' Occupation Tax Act, the Service Occupation Tax
23    Act or the Service Use Tax Act, in accordance with reasonable
24    rules and regulations prescribed by the Department.   If  the
25    Department  subsequently  determines  that all or any part of
26    the credit taken was not actually due to  the  taxpayer,  the
27    taxpayer's  2.1%  or 1.75% vendor's discount shall be reduced
28    by 2.1% or 1.75% of the difference between the  credit  taken
29    and  that  actually due, and the taxpayer shall be liable for
30    penalties and interest on such difference.
31        If the retailer is otherwise required to file  a  monthly
32    return and if the retailer's average monthly tax liability to
33    the  Department  does  not  exceed  $200,  the Department may
34    authorize his returns to be filed on a quarter annual  basis,
 
                           -26-                LRB9111995SMdv
 1    with  the  return for January, February, and March of a given
 2    year being due by April 20 of such year; with the return  for
 3    April,  May  and June of a given year being due by July 20 of
 4    such year; with the return for July, August and September  of
 5    a  given  year being due by October 20 of such year, and with
 6    the return for October, November and December of a given year
 7    being due by January 20 of the following year.
 8        If the retailer is otherwise required to file  a  monthly
 9    or quarterly return and if the retailer's average monthly tax
10    liability   to  the  Department  does  not  exceed  $50,  the
11    Department may authorize his returns to be filed on an annual
12    basis, with the return for a given year being due by  January
13    20 of the following year.
14        Such  quarter  annual  and annual returns, as to form and
15    substance, shall be  subject  to  the  same  requirements  as
16    monthly returns.
17        Notwithstanding   any   other   provision   in  this  Act
18    concerning the time within which  a  retailer  may  file  his
19    return, in the case of any retailer who ceases to engage in a
20    kind  of  business  which  makes  him  responsible for filing
21    returns under this Act, such  retailer  shall  file  a  final
22    return  under  this Act with the Department not more than one
23    month after discontinuing such business.
24        In addition, with respect to motor vehicles,  watercraft,
25    aircraft,  and  trailers  that  are required to be registered
26    with an agency of this State,  every  retailer  selling  this
27    kind  of  tangible  personal  property  shall  file, with the
28    Department, upon a form to be prescribed and supplied by  the
29    Department,  a separate return for each such item of tangible
30    personal property  which  the  retailer  sells,  except  that
31    where,  in  the  same  transaction,  a  retailer of aircraft,
32    watercraft, motor vehicles or trailers  transfers  more  than
33    one aircraft, watercraft, motor vehicle or trailer to another
34    aircraft,  watercraft,  motor vehicle or trailer retailer for
 
                           -27-                LRB9111995SMdv
 1    the purpose of resale, that seller for resale may report  the
 2    transfer  of  all the aircraft, watercraft, motor vehicles or
 3    trailers involved in that transaction to  the  Department  on
 4    the  same  uniform invoice-transaction reporting return form.
 5    For purposes of this Section, "watercraft" means a  Class  2,
 6    Class  3,  or Class 4 watercraft as defined in Section 3-2 of
 7    the Boat Registration and Safety Act, a personal  watercraft,
 8    or any boat equipped with an inboard motor.
 9        The  transaction  reporting  return  in the case of motor
10    vehicles or trailers that are required to be registered  with
11    an  agency  of  this State, shall be the same document as the
12    Uniform Invoice referred to in Section 5-402 of the  Illinois
13    Vehicle  Code  and  must  show  the  name  and address of the
14    seller; the name and address of the purchaser; the amount  of
15    the  selling  price  including  the  amount  allowed  by  the
16    retailer  for  traded-in property, if any; the amount allowed
17    by the retailer for the traded-in tangible personal property,
18    if any, to the extent to which Section 2 of this  Act  allows
19    an exemption for the value of traded-in property; the balance
20    payable  after  deducting  such  trade-in  allowance from the
21    total selling price; the amount of tax due from the  retailer
22    with respect to such transaction; the amount of tax collected
23    from  the  purchaser  by the retailer on such transaction (or
24    satisfactory evidence that  such  tax  is  not  due  in  that
25    particular  instance, if that is claimed to be the fact); the
26    place and date of the sale; a  sufficient  identification  of
27    the  property  sold; such other information as is required in
28    Section 5-402 of the Illinois Vehicle Code,  and  such  other
29    information as the Department may reasonably require.
30        The   transaction   reporting   return  in  the  case  of
31    watercraft and aircraft must show the name and address of the
32    seller; the name and address of the purchaser; the amount  of
33    the  selling  price  including  the  amount  allowed  by  the
34    retailer  for  traded-in property, if any; the amount allowed
 
                           -28-                LRB9111995SMdv
 1    by the retailer for the traded-in tangible personal property,
 2    if any, to the extent to which Section 2 of this  Act  allows
 3    an exemption for the value of traded-in property; the balance
 4    payable  after  deducting  such  trade-in  allowance from the
 5    total selling price; the amount of tax due from the  retailer
 6    with respect to such transaction; the amount of tax collected
 7    from  the  purchaser  by the retailer on such transaction (or
 8    satisfactory evidence that  such  tax  is  not  due  in  that
 9    particular  instance, if that is claimed to be the fact); the
10    place and date of the sale, a  sufficient  identification  of
11    the   property  sold,  and  such  other  information  as  the
12    Department may reasonably require.
13        Such transaction reporting  return  shall  be  filed  not
14    later  than  20  days  after the date of delivery of the item
15    that is being sold, but may be filed by the retailer  at  any
16    time   sooner  than  that  if  he  chooses  to  do  so.   The
17    transaction reporting return and tax remittance or  proof  of
18    exemption  from  the  tax  that is imposed by this Act may be
19    transmitted to the Department by way of the State agency with
20    which, or State officer  with  whom,  the  tangible  personal
21    property   must  be  titled  or  registered  (if  titling  or
22    registration is required) if the Department and  such  agency
23    or  State officer determine that this procedure will expedite
24    the processing of applications for title or registration.
25        With each such transaction reporting return, the retailer
26    shall remit the proper amount of tax  due  (or  shall  submit
27    satisfactory evidence that the sale is not taxable if that is
28    the  case),  to  the  Department or its agents, whereupon the
29    Department shall  issue,  in  the  purchaser's  name,  a  tax
30    receipt  (or  a certificate of exemption if the Department is
31    satisfied that the particular sale is tax exempt) which  such
32    purchaser  may  submit  to  the  agency  with which, or State
33    officer with whom, he must title  or  register  the  tangible
34    personal   property   that   is   involved   (if  titling  or
 
                           -29-                LRB9111995SMdv
 1    registration is required)  in  support  of  such  purchaser's
 2    application  for an Illinois certificate or other evidence of
 3    title or registration to such tangible personal property.
 4        No retailer's failure or refusal to remit tax under  this
 5    Act  precludes  a  user,  who  has paid the proper tax to the
 6    retailer, from obtaining his certificate of  title  or  other
 7    evidence of title or registration (if titling or registration
 8    is  required)  upon  satisfying the Department that such user
 9    has paid the proper tax (if tax is due) to the retailer.  The
10    Department shall adopt appropriate rules  to  carry  out  the
11    mandate of this paragraph.
12        If  the  user who would otherwise pay tax to the retailer
13    wants the transaction reporting return filed and the  payment
14    of  tax  or  proof of exemption made to the Department before
15    the retailer is willing to take these actions and  such  user
16    has  not  paid the tax to the retailer, such user may certify
17    to the fact of such delay by the retailer, and may (upon  the
18    Department   being   satisfied   of   the   truth   of   such
19    certification)  transmit  the  information  required  by  the
20    transaction  reporting  return  and the remittance for tax or
21    proof of exemption directly to the Department and obtain  his
22    tax  receipt  or  exemption determination, in which event the
23    transaction reporting return and tax  remittance  (if  a  tax
24    payment  was required) shall be credited by the Department to
25    the  proper  retailer's  account  with  the  Department,  but
26    without the 2.1% or  1.75%  discount  provided  for  in  this
27    Section  being  allowed.  When the user pays the tax directly
28    to the Department, he shall pay the tax in  the  same  amount
29    and in the same form in which it would be remitted if the tax
30    had been remitted to the Department by the retailer.
31        Where  a  retailer  collects  the tax with respect to the
32    selling price of tangible personal property  which  he  sells
33    and  the  purchaser thereafter returns such tangible personal
34    property and the retailer refunds the selling  price  thereof
 
                           -30-                LRB9111995SMdv
 1    to  the  purchaser,  such  retailer shall also refund, to the
 2    purchaser, the tax so  collected  from  the  purchaser.  When
 3    filing his return for the period in which he refunds such tax
 4    to  the  purchaser, the retailer may deduct the amount of the
 5    tax so refunded by him to the purchaser from  any  other  use
 6    tax  which  such  retailer may be required to pay or remit to
 7    the Department, as shown by such return, if the amount of the
 8    tax to be deducted was previously remitted to the  Department
 9    by  such  retailer.   If  the  retailer  has  not  previously
10    remitted  the  amount  of  such  tax to the Department, he is
11    entitled to no deduction under this Act upon  refunding  such
12    tax to the purchaser.
13        Any  retailer  filing  a  return under this Section shall
14    also include (for the purpose  of  paying  tax  thereon)  the
15    total  tax  covered  by such return upon the selling price of
16    tangible personal property purchased by him at retail from  a
17    retailer, but as to which the tax imposed by this Act was not
18    collected  from  the  retailer  filing  such return, and such
19    retailer shall remit the amount of such tax to the Department
20    when filing such return.
21        If experience indicates such action  to  be  practicable,
22    the  Department  may  prescribe  and furnish a combination or
23    joint return which will enable retailers, who are required to
24    file  returns  hereunder  and  also  under   the   Retailers'
25    Occupation  Tax  Act,  to  furnish all the return information
26    required by both Acts on the one form.
27        Where the retailer has more than one business  registered
28    with  the  Department  under separate registration under this
29    Act, such retailer may not file each return that is due as  a
30    single  return  covering  all such registered businesses, but
31    shall  file  separate  returns  for  each   such   registered
32    business.
33        Beginning  January  1,  1990,  each  month the Department
34    shall pay into the State and Local Sales Tax Reform  Fund,  a
 
                           -31-                LRB9111995SMdv
 1    special  fund  in the State Treasury which is hereby created,
 2    the net revenue realized for the preceding month from the  1%
 3    tax  on  sales  of  food for human consumption which is to be
 4    consumed off the  premises  where  it  is  sold  (other  than
 5    alcoholic  beverages,  soft  drinks  and  food which has been
 6    prepared for  immediate  consumption)  and  prescription  and
 7    nonprescription  medicines,  drugs,  medical  appliances  and
 8    insulin,  urine  testing materials, syringes and needles used
 9    by diabetics.
10        Beginning January 1,  1990,  each  month  the  Department
11    shall  pay  into the County and Mass Transit District Fund 4%
12    of the net revenue realized for the preceding month from  the
13    6.25%  general rate on the selling price of tangible personal
14    property which is purchased outside Illinois at retail from a
15    retailer and which is titled or registered by  an  agency  of
16    this State's government.
17        Beginning  January  1,  1990,  each  month the Department
18    shall pay into the State and Local Sales Tax Reform  Fund,  a
19    special  fund  in  the State Treasury, 20% of the net revenue
20    realized for the preceding month from the 6.25% general  rate
21    on  the  selling  price  of tangible personal property, other
22    than tangible personal property which  is  purchased  outside
23    Illinois  at  retail  from  a retailer and which is titled or
24    registered by an agency of this State's government.
25        Beginning January 1,  1990,  each  month  the  Department
26    shall  pay  into the Local Government Tax Fund 16% of the net
27    revenue realized for  the  preceding  month  from  the  6.25%
28    general  rate  on  the  selling  price  of  tangible personal
29    property which is purchased outside Illinois at retail from a
30    retailer and which is titled or registered by  an  agency  of
31    this State's government.
32        Of the remainder of the moneys received by the Department
33    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
34    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
 
                           -32-                LRB9111995SMdv
 1    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
 2    into the Build Illinois Fund; provided, however, that  if  in
 3    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 4    as  the case may be, of the moneys received by the Department
 5    and required to be paid into the Build Illinois Fund pursuant
 6    to Section 3 of the Retailers' Occupation Tax Act, Section  9
 7    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 8    Section  9 of the Service Occupation Tax Act, such Acts being
 9    hereinafter called the "Tax Acts" and such aggregate of  2.2%
10    or  3.8%,  as  the  case  may be, of moneys being hereinafter
11    called the "Tax Act Amount", and (2) the  amount  transferred
12    to the Build Illinois Fund from the State and Local Sales Tax
13    Reform  Fund  shall  be less than the Annual Specified Amount
14    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
15    Act),  an amount equal to the difference shall be immediately
16    paid into the Build Illinois Fund from other moneys  received
17    by  the  Department  pursuant  to  the  Tax Acts; and further
18    provided, that if on the last business day of any  month  the
19    sum  of  (1) the Tax Act Amount required to be deposited into
20    the Build Illinois Bond Account in the  Build  Illinois  Fund
21    during  such month and (2) the amount transferred during such
22    month to the Build Illinois Fund from  the  State  and  Local
23    Sales  Tax  Reform Fund shall have been less than 1/12 of the
24    Annual Specified Amount, an amount equal  to  the  difference
25    shall  be  immediately paid into the Build Illinois Fund from
26    other moneys received by the Department pursuant to  the  Tax
27    Acts;  and,  further  provided,  that  in  no event shall the
28    payments required  under  the  preceding  proviso  result  in
29    aggregate  payments  into the Build Illinois Fund pursuant to
30    this clause (b) for any fiscal year in excess of the  greater
31    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
32    for such fiscal year; and, further provided, that the amounts
33    payable  into  the  Build Illinois Fund under this clause (b)
34    shall be payable only until such time as the aggregate amount
 
                           -33-                LRB9111995SMdv
 1    on deposit under each trust indenture securing  Bonds  issued
 2    and  outstanding  pursuant  to the Build Illinois Bond Act is
 3    sufficient, taking into account any future investment income,
 4    to fully provide, in accordance with such indenture, for  the
 5    defeasance of or the payment of the principal of, premium, if
 6    any,  and interest on the Bonds secured by such indenture and
 7    on any Bonds expected to be issued thereafter  and  all  fees
 8    and  costs  payable with respect thereto, all as certified by
 9    the Director of the Bureau of the Budget.   If  on  the  last
10    business  day  of  any  month  in which Bonds are outstanding
11    pursuant to the Build Illinois Bond Act, the aggregate of the
12    moneys deposited in the Build Illinois Bond  Account  in  the
13    Build  Illinois  Fund  in  such  month shall be less than the
14    amount required to be transferred  in  such  month  from  the
15    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
16    Retirement and Interest Fund pursuant to Section  13  of  the
17    Build  Illinois  Bond Act, an amount equal to such deficiency
18    shall be immediately paid from other moneys received  by  the
19    Department  pursuant  to  the  Tax Acts to the Build Illinois
20    Fund; provided, however, that any amounts paid to  the  Build
21    Illinois  Fund  in  any fiscal year pursuant to this sentence
22    shall be deemed to constitute payments pursuant to clause (b)
23    of  the  preceding  sentence  and  shall  reduce  the  amount
24    otherwise payable for such fiscal year pursuant to clause (b)
25    of the  preceding  sentence.   The  moneys  received  by  the
26    Department  pursuant to this Act and required to be deposited
27    into the Build Illinois Fund are subject to the pledge, claim
28    and charge set forth in Section 12 of the Build Illinois Bond
29    Act.
30        Subject to payment of amounts  into  the  Build  Illinois
31    Fund  as  provided  in  the  preceding  paragraph  or  in any
32    amendment thereto hereafter enacted, the following  specified
33    monthly   installment   of   the   amount  requested  in  the
34    certificate of the Chairman  of  the  Metropolitan  Pier  and
 
                           -34-                LRB9111995SMdv
 1    Exposition  Authority  provided  under  Section  8.25f of the
 2    State Finance Act, but not in excess of the  sums  designated
 3    as  "Total Deposit", shall be deposited in the aggregate from
 4    collections under Section 9 of the Use Tax Act, Section 9  of
 5    the  Service Use Tax Act, Section 9 of the Service Occupation
 6    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
 7    into  the  McCormick  Place  Expansion  Project  Fund  in the
 8    specified fiscal years.
 9             Fiscal Year                   Total Deposit
10                 1993                            $0
11                 1994                        53,000,000
12                 1995                        58,000,000
13                 1996                        61,000,000
14                 1997                        64,000,000
15                 1998                        68,000,000
16                 1999                        71,000,000
17                 2000                        75,000,000
18                 2001                        80,000,000
19                 2002                        84,000,000
20                 2003                        89,000,000
21                 2004                        93,000,000
22                 2005                        97,000,000
23                 2006                       102,000,000
24                 2007                       108,000,000
25                 2008                       115,000,000
26                 2009                       120,000,000
27                 2010                       126,000,000
28                 2011                       132,000,000
29                 2012                       138,000,000
30                 2013 and                   145,000,000
31        each fiscal year
32        thereafter that bonds
33        are outstanding under
34        Section 13.2 of the
 
                           -35-                LRB9111995SMdv
 1        Metropolitan Pier and
 2        Exposition Authority
 3        Act, but not after fiscal year 2029.
 4        Beginning July 20, 1993 and in each month of each  fiscal
 5    year  thereafter,  one-eighth  of the amount requested in the
 6    certificate of the Chairman  of  the  Metropolitan  Pier  and
 7    Exposition  Authority  for  that fiscal year, less the amount
 8    deposited into the McCormick Place Expansion Project Fund  by
 9    the  State Treasurer in the respective month under subsection
10    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
11    Authority  Act,  plus cumulative deficiencies in the deposits
12    required under this Section for previous  months  and  years,
13    shall be deposited into the McCormick Place Expansion Project
14    Fund,  until  the  full amount requested for the fiscal year,
15    but not in excess of the amount  specified  above  as  "Total
16    Deposit", has been deposited.
17        Subject  to  payment  of  amounts into the Build Illinois
18    Fund and the McCormick Place Expansion Project Fund  pursuant
19    to  the  preceding  paragraphs  or  in  any amendment thereto
20    hereafter enacted, each month the Department shall  pay  into
21    the Local Government Distributive Fund .4% of the net revenue
22    realized for the preceding month from the 5% general rate, or
23    .4%  of  80%  of  the  net revenue realized for the preceding
24    month from the 6.25% general rate, as the case may be, on the
25    selling price of  tangible  personal  property  which  amount
26    shall,  subject  to appropriation, be distributed as provided
27    in Section 2 of the State Revenue Sharing Act. No payments or
28    distributions pursuant to this paragraph shall be made if the
29    tax imposed  by  this  Act  on  photoprocessing  products  is
30    declared  unconstitutional,  or if the proceeds from such tax
31    are unavailable for distribution because of litigation.
32        Subject to payment of amounts  into  the  Build  Illinois
33    Fund,  the  McCormick  Place  Expansion Project Fund, and the
34    Local Government Distributive Fund pursuant to the  preceding
 
                           -36-                LRB9111995SMdv
 1    paragraphs  or  in  any amendments thereto hereafter enacted,
 2    beginning July 1, 1993, the Department shall each  month  pay
 3    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
 4    revenue realized for  the  preceding  month  from  the  6.25%
 5    general  rate  on  the  selling  price  of  tangible personal
 6    property.
 7        Of the remainder of the moneys received by the Department
 8    pursuant  to  this  Act  and  the  moneys  received  by   the
 9    Department  from the 80% of the 6.25% rate of use tax imposed
10    in  Section  20  of  the  Qualified  Technological  Equipment
11    Leasing Occupation and Use Tax Act, 75% thereof shall be paid
12    into the State Treasury  and  25%  shall  be  reserved  in  a
13    special  account and used only for the transfer to the Common
14    School Fund as part of the monthly transfer from the  General
15    Revenue  Fund  in  accordance  with  Section  8a of the State
16    Finance Act.
17        As soon as possible after the first day  of  each  month,
18    upon   certification   of  the  Department  of  Revenue,  the
19    Comptroller shall order transferred and the  Treasurer  shall
20    transfer  from the General Revenue Fund to the Motor Fuel Tax
21    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
22    realized  under  this  Act  for  the  second preceding month.
23    Beginning April 1, 2000, this transfer is no longer  required
24    and shall not be made.
25        Net  revenue  realized  for  a month shall be the revenue
26    collected by the State pursuant to this Act, less the  amount
27    paid  out  during  that  month  as  refunds  to taxpayers for
28    overpayment of liability.
29        For greater simplicity of administration,  manufacturers,
30    importers  and  wholesalers whose products are sold at retail
31    in Illinois by numerous retailers, and who wish to do so, may
32    assume the responsibility for accounting and  paying  to  the
33    Department  all  tax  accruing under this Act with respect to
34    such sales, if the retailers who are  affected  do  not  make
 
                           -37-                LRB9111995SMdv
 1    written objection to the Department to this arrangement.
 2    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
 3    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
 4    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

 5        (35 ILCS 105/9.5 new)
 6        Sec. 9.5.  Refund; leaseback transaction.  A purchaser of
 7    qualified technological equipment, as defined in Section 5 of
 8    the Qualified Technological Equipment Leasing Occupation  and
 9    Use  Tax Act, may obtain a refund of all tax paid to a seller
10    under  this  Act  or  any  other  tax  administered  by   the
11    Department  if  the  purchaser sells the property to a rentor
12    under a bona fide sale and  leaseback  transaction  (to  such
13    purchaser)  within 90 days of the first functional use of the
14    property.  The purchaser shall request the  refund  from  the
15    seller  to whom he or she has paid the tax in the same manner
16    and  subject  to  the  same  requirements  as  other  refunds
17    provided in Section 9 of this  Act.   For  purposes  of  this
18    Section,  the  first  functional use of property shall be the
19    use for which the property is intended, which shall,  in  the
20    absence  of  other  evidence,  be  presumed to be the date of
21    delivery of the property.

22        Section 115.  The Service  Use  Tax  Act  is  amended  by
23    changing Section 3-5 as follows:

24        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
25        Sec.  3-5.   Exemptions.   Use  of the following tangible
26    personal property is exempt from the tax imposed by this Act:
27        (1)  Personal  property  purchased  from  a  corporation,
28    society,    association,    foundation,    institution,    or
29    organization, other than a limited liability company, that is
30    organized and operated as a not-for-profit service enterprise
31    for the benefit of persons 65 years of age or  older  if  the
 
                           -38-                LRB9111995SMdv
 1    personal property was not purchased by the enterprise for the
 2    purpose of resale by the enterprise.
 3        (2)  Personal property purchased by a non-profit Illinois
 4    county  fair association for use in conducting, operating, or
 5    promoting the county fair.
 6        (3)  Personal property purchased by a not-for-profit arts
 7    or cultural organization that establishes, by proof  required
 8    by  the Department by rule, that it has received an exemption
 9    under Section 501(c)(3) of the Internal Revenue Code and that
10    is organized and operated for the presentation or support  of
11    arts or cultural programming, activities, or services.  These
12    organizations  include,  but  are  not  limited to, music and
13    dramatic arts organizations such as symphony  orchestras  and
14    theatrical  groups,  arts and cultural service organizations,
15    local arts councils, visual  arts  organizations,  and  media
16    arts organizations.
17        (4)  Legal  tender,  currency,  medallions,  or  gold  or
18    silver   coinage   issued  by  the  State  of  Illinois,  the
19    government of the United States of America, or the government
20    of any foreign country, and bullion.
21        (5)  Graphic  arts  machinery  and  equipment,  including
22    repair  and  replacement  parts,  both  new  and  used,   and
23    including that manufactured on special order or purchased for
24    lease,  certified  by  the purchaser to be used primarily for
25    graphic arts production.
26        (6)  Personal property purchased from a teacher-sponsored
27    student  organization  affiliated  with  an   elementary   or
28    secondary school located in Illinois.
29        (7)  Farm  machinery  and  equipment,  both new and used,
30    including that manufactured on special  order,  certified  by
31    the purchaser to be used primarily for production agriculture
32    or   State   or   federal  agricultural  programs,  including
33    individual replacement parts for the machinery and equipment,
34    including machinery and equipment purchased  for  lease,  and
 
                           -39-                LRB9111995SMdv
 1    including implements of husbandry defined in Section 1-130 of
 2    the  Illinois  Vehicle  Code, farm machinery and agricultural
 3    chemical and fertilizer spreaders, and nurse wagons  required
 4    to  be registered under Section 3-809 of the Illinois Vehicle
 5    Code, but excluding  other  motor  vehicles  required  to  be
 6    registered  under  the  Illinois  Vehicle Code. Horticultural
 7    polyhouses or hoop houses used for propagating,  growing,  or
 8    overwintering  plants  shall be considered farm machinery and
 9    equipment under this item (7). Agricultural  chemical  tender
10    tanks  and dry boxes shall include units sold separately from
11    a motor vehicle  required  to  be  licensed  and  units  sold
12    mounted  on  a  motor  vehicle required to be licensed if the
13    selling price of the tender is separately stated.
14        Farm machinery  and  equipment  shall  include  precision
15    farming  equipment  that  is  installed  or  purchased  to be
16    installed on farm machinery and equipment including, but  not
17    limited   to,   tractors,   harvesters,  sprayers,  planters,
18    seeders, or spreaders. Precision farming equipment  includes,
19    but  is  not  limited  to,  soil  testing sensors, computers,
20    monitors, software, global positioning and  mapping  systems,
21    and other such equipment.
22        Farm  machinery  and  equipment  also includes computers,
23    sensors, software, and related equipment  used  primarily  in
24    the  computer-assisted  operation  of  production agriculture
25    facilities,  equipment,  and  activities  such  as,  but  not
26    limited to, the collection, monitoring,  and  correlation  of
27    animal  and  crop  data for the purpose of formulating animal
28    diets and agricultural chemicals.  This item  (7)  is  exempt
29    from the provisions of Section 3-75.
30        (8)  Fuel  and  petroleum  products sold to or used by an
31    air common carrier, certified by the carrier to be  used  for
32    consumption,  shipment,  or  storage  in  the  conduct of its
33    business as an air common carrier, for a flight destined  for
34    or  returning from a location or locations outside the United
 
                           -40-                LRB9111995SMdv
 1    States without regard  to  previous  or  subsequent  domestic
 2    stopovers.
 3        (9)  Proceeds  of  mandatory  service  charges separately
 4    stated on customers' bills for the purchase  and  consumption
 5    of food and beverages acquired as an incident to the purchase
 6    of  a  service  from  a  serviceman,  to  the extent that the
 7    proceeds of the service charge are in  fact  turned  over  as
 8    tips  or  as  a  substitute  for  tips  to  the employees who
 9    participate  directly  in  preparing,  serving,  hosting   or
10    cleaning  up  the  food  or beverage function with respect to
11    which the service charge is imposed.
12        (10)  Oil field  exploration,  drilling,  and  production
13    equipment, including (i) rigs and parts of rigs, rotary rigs,
14    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
15    goods, including casing and drill strings,  (iii)  pumps  and
16    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
17    individual  replacement  part  for  oil  field   exploration,
18    drilling,  and  production  equipment, and (vi) machinery and
19    equipment purchased for lease; but excluding  motor  vehicles
20    required to be registered under the Illinois Vehicle Code.
21        (11)  Proceeds from the sale of photoprocessing machinery
22    and  equipment,  including repair and replacement parts, both
23    new and used, including that manufactured on  special  order,
24    certified   by   the  purchaser  to  be  used  primarily  for
25    photoprocessing, and including photoprocessing machinery  and
26    equipment purchased for lease.
27        (12)  Coal   exploration,   mining,  offhighway  hauling,
28    processing, maintenance, and reclamation equipment, including
29    replacement parts  and  equipment,  and  including  equipment
30    purchased for lease, but excluding motor vehicles required to
31    be registered under the Illinois Vehicle Code.
32        (13)  Semen used for artificial insemination of livestock
33    for direct agricultural production.
34        (14)  Horses, or interests in horses, registered with and
 
                           -41-                LRB9111995SMdv
 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        (15)  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 leased
15    in  a  manner  that does not qualify for this exemption or is
16    used in any other non-exempt  manner,  the  lessor  shall  be
17    liable for the tax imposed under this Act or the Use Tax Act,
18    as  the  case  may  be, based on the fair market value of the
19    property at the  time  the  non-qualifying  use  occurs.   No
20    lessor shall collect or attempt to collect an amount (however
21    designated)  that  purports  to reimburse that lessor for the
22    tax imposed by this Act or the Use Tax Act, as the  case  may
23    be,  if the tax has not been paid by the lessor.  If a lessor
24    improperly collects any such  amount  from  the  lessee,  the
25    lessee  shall  have  a  legal right to claim a refund of that
26    amount from the lessor.  If,  however,  that  amount  is  not
27    refunded  to  the lessee for any reason, the lessor is liable
28    to pay that amount  to  the  Department.  This  paragraph  is
29    exempt from the provisions of Section 3-75.
30        (16)  Personal  property purchased by a lessor who leases
31    the property, under a lease of one year or longer executed or
32    in effect at the time the lessor would otherwise  be  subject
33    to  the  tax imposed by this Act, to a governmental body that
34    has been issued an active tax exemption identification number
 
                           -42-                LRB9111995SMdv
 1    by  the  Department  under  Section  1g  of  the   Retailers'
 2    Occupation  Tax  Act.   If the property is leased in a manner
 3    that does not qualify for this exemption or is  used  in  any
 4    other  non-exempt  manner, the lessor shall be liable for the
 5    tax imposed under this Act or the Use Tax Act,  as  the  case
 6    may be, based on the fair market value of the property at the
 7    time  the non-qualifying use occurs.  No lessor shall collect
 8    or attempt to collect an  amount  (however  designated)  that
 9    purports to reimburse that lessor for the tax imposed by this
10    Act  or  the  Use Tax Act, as the case may be, if the tax has
11    not been paid by the lessor.  If a lessor improperly collects
12    any such amount from the lessee,  the  lessee  shall  have  a
13    legal right to claim a refund of that amount from the lessor.
14    If,  however,  that  amount is not refunded to the lessee for
15    any reason, the lessor is liable to pay that  amount  to  the
16    Department.  This  paragraph is exempt from the provisions of
17    Section 3-75.
18        (17)  Beginning with taxable years  ending  on  or  after
19    December  31, 1995 and ending with taxable years ending on or
20    before December 31, 2004, personal property that  is  donated
21    for  disaster  relief  to  be  used  in  a State or federally
22    declared disaster area in Illinois or bordering Illinois by a
23    manufacturer or retailer that is registered in this State  to
24    a   corporation,   society,   association,   foundation,   or
25    institution  that  has  been  issued  a  sales  tax exemption
26    identification number by the Department that assists  victims
27    of the disaster who reside within the declared disaster area.
28        (18)  Beginning  with  taxable  years  ending on or after
29    December 31, 1995 and ending with taxable years ending on  or
30    before  December  31, 2004, personal property that is used in
31    the performance of  infrastructure  repairs  in  this  State,
32    including  but  not  limited  to municipal roads and streets,
33    access roads, bridges,  sidewalks,  waste  disposal  systems,
34    water  and  sewer  line  extensions,  water  distribution and
 
                           -43-                LRB9111995SMdv
 1    purification facilities, storm water drainage  and  retention
 2    facilities, and sewage treatment facilities, resulting from a
 3    State or federally declared disaster in Illinois or bordering
 4    Illinois  when  such  repairs  are  initiated  on  facilities
 5    located  in  the declared disaster area within 6 months after
 6    the disaster.
 7        (19)  Beginning  July  1,  1999,  game  or   game   birds
 8    purchased  at  a "game breeding and hunting preserve area" or
 9    an "exotic game hunting area" as those terms are used in  the
10    Wildlife  Code  or  at  a  hunting enclosure approved through
11    rules adopted by the Department of Natural  Resources.   This
12    paragraph is exempt from the provisions of Section 3-75.
13        (20)  (19)  A  motor  vehicle, as that term is defined in
14    Section 1-146 of the Illinois Vehicle Code, that  is  donated
15    to   a   corporation,  limited  liability  company,  society,
16    association, foundation, or institution that is determined by
17    the Department to be organized and operated  exclusively  for
18    educational  purposes.   For  purposes  of this exemption, "a
19    corporation, limited liability company, society, association,
20    foundation, or institution organized and operated exclusively
21    for educational  purposes"  means  all  tax-supported  public
22    schools, private schools that offer systematic instruction in
23    useful  branches  of  learning  by  methods  common to public
24    schools  and  that  compare  favorably  in  their  scope  and
25    intensity with the course of study presented in tax-supported
26    schools, and vocational or technical  schools  or  institutes
27    organized  and  operated  exclusively  to provide a course of
28    study of not less than  6  weeks  duration  and  designed  to
29    prepare  individuals to follow a trade or to pursue a manual,
30    technical, mechanical, industrial,  business,  or  commercial
31    occupation.
32        (21) (20)  Beginning January 1, 2000,  personal property,
33    including  food, purchased through fundraising events for the
34    benefit of  a  public  or  private  elementary  or  secondary
 
                           -44-                LRB9111995SMdv
 1    school,  a  group  of  those  schools,  or one or more school
 2    districts if the events are sponsored by an entity recognized
 3    by the school district that consists primarily of  volunteers
 4    and  includes  parents  and  teachers of the school children.
 5    This paragraph does not apply to fundraising events  (i)  for
 6    the benefit of private home instruction or (ii) for which the
 7    fundraising  entity  purchases  the personal property sold at
 8    the events from another individual or entity  that  sold  the
 9    property  for the purpose of resale by the fundraising entity
10    and that profits from the sale  to  the  fundraising  entity.
11    This paragraph is exempt from the provisions of Section 3-75.
12        (22)   (19)  Beginning  January  1,  2000,  new  or  used
13    automatic vending machines that prepare and  serve  hot  food
14    and  beverages,  including coffee, soup, and other items, and
15    replacement parts for these  machines.    This  paragraph  is
16    exempt from the provisions of Section 3-75.
17        (23)  Beginning  January 1, 2001, qualified technological
18    equipment purchased for lease by lessors under leases subject
19    to the Qualified Technological Equipment  Leasing  Occupation
20    and  Use  Tax Act.  However, this exemption will last only as
21    long as the property continues to be leased  by  the  lessor.
22    When  the  property  is  no  longer  used  for  lease and the
23    property reverts to the lessor, the property  is  subject  to
24    the tax imposed by this Act upon the fair market value of the
25    property on the date of the reversion.  The property will not
26    be  considered  to revert to the lessor as long as the lessor
27    holds the property in his or her lease inventory and does not
28    otherwise  use  the  property,   except   for   demonstration
29    purposes.   In  addition, property held in the lessor's lease
30    inventory that is subsequently leased for a  period  of  less
31    than  one year will not be considered to revert to the lessor
32    if the  property  is  returned  to  lease  inventory  at  the
33    termination  of the lease.  This paragraph is exempt from the
34    provisions of Section 3-75.
 
                           -45-                LRB9111995SMdv
 1    (Source: P.A. 90-14,  eff.  7-1-97;  90-552,  eff.  12-12-97;
 2    90-605,  eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200, eff.
 3    7-20-99; 91-439, eff. 8-6-99; 91-637, eff.  8-20-99;  91-644,
 4    eff. 8-20-99; revised 9-29-99.)

 5        Section  120.   The Service Occupation Tax Act is amended
 6    by changing Section 3-5 as follows:

 7        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
 8        Sec. 3-5.  Exemptions.  The following  tangible  personal
 9    property is exempt from the tax imposed by this Act:
10        (1)  Personal  property  sold  by a corporation, society,
11    association, foundation, institution, or organization,  other
12    than  a  limited  liability  company,  that  is organized and
13    operated as  a  not-for-profit  service  enterprise  for  the
14    benefit  of  persons 65 years of age or older if the personal
15    property was not purchased by the enterprise for the  purpose
16    of resale by the enterprise.
17        (2)  Personal  property  purchased  by  a  not-for-profit
18    Illinois  county  fair  association  for  use  in conducting,
19    operating, or promoting the county fair.
20        (3)  Personal property purchased  by  any  not-for-profit
21    arts  or  cultural  organization  that  establishes, by proof
22    required by the Department by rule, that it has  received  an
23    exemption   under  Section  501(c)(3) of the Internal Revenue
24    Code and that is organized and operated for the  presentation
25    or  support  of  arts or cultural programming, activities, or
26    services.  These organizations include, but are  not  limited
27    to,  music  and  dramatic arts organizations such as symphony
28    orchestras and theatrical groups, arts and  cultural  service
29    organizations,    local    arts    councils,    visual   arts
30    organizations, and media arts organizations.
31        (4)  Legal  tender,  currency,  medallions,  or  gold  or
32    silver  coinage  issued  by  the  State  of   Illinois,   the
 
                           -46-                LRB9111995SMdv
 1    government of the United States of America, or the government
 2    of any foreign country, and bullion.
 3        (5)  Graphic  arts  machinery  and  equipment,  including
 4    repair   and  replacement  parts,  both  new  and  used,  and
 5    including that manufactured on special order or purchased for
 6    lease, certified by the purchaser to be  used  primarily  for
 7    graphic arts production.
 8        (6)  Personal   property   sold  by  a  teacher-sponsored
 9    student  organization  affiliated  with  an   elementary   or
10    secondary school located in Illinois.
11        (7)  Farm  machinery  and  equipment,  both new and used,
12    including that manufactured on special  order,  certified  by
13    the purchaser to be used primarily for production agriculture
14    or   State   or   federal  agricultural  programs,  including
15    individual replacement parts for the machinery and equipment,
16    including machinery and equipment purchased  for  lease,  and
17    including implements of husbandry defined in Section 1-130 of
18    the  Illinois  Vehicle  Code, farm machinery and agricultural
19    chemical and fertilizer spreaders, and nurse wagons  required
20    to  be registered under Section 3-809 of the Illinois Vehicle
21    Code, but excluding  other  motor  vehicles  required  to  be
22    registered  under  the  Illinois  Vehicle Code. Horticultural
23    polyhouses or hoop houses used for propagating,  growing,  or
24    overwintering  plants  shall be considered farm machinery and
25    equipment under this item (7). Agricultural  chemical  tender
26    tanks  and dry boxes shall include units sold separately from
27    a motor vehicle  required  to  be  licensed  and  units  sold
28    mounted  on  a  motor  vehicle required to be licensed if the
29    selling price of the tender is separately stated.
30        Farm machinery  and  equipment  shall  include  precision
31    farming  equipment  that  is  installed  or  purchased  to be
32    installed on farm machinery and equipment including, but  not
33    limited   to,   tractors,   harvesters,  sprayers,  planters,
34    seeders, or spreaders. Precision farming equipment  includes,
 
                           -47-                LRB9111995SMdv
 1    but  is  not  limited  to,  soil  testing sensors, computers,
 2    monitors, software, global positioning and  mapping  systems,
 3    and other such equipment.
 4        Farm  machinery  and  equipment  also includes computers,
 5    sensors, software, and related equipment  used  primarily  in
 6    the  computer-assisted  operation  of  production agriculture
 7    facilities,  equipment,  and  activities  such  as,  but  not
 8    limited to, the collection, monitoring,  and  correlation  of
 9    animal  and  crop  data for the purpose of formulating animal
10    diets and agricultural chemicals.  This item  (7)  is  exempt
11    from the provisions of Section 3-55.
12        (8)  Fuel  and  petroleum  products sold to or used by an
13    air common carrier, certified by the carrier to be  used  for
14    consumption,  shipment,  or  storage  in  the  conduct of its
15    business as an air common carrier, for a flight destined  for
16    or  returning from a location or locations outside the United
17    States without regard  to  previous  or  subsequent  domestic
18    stopovers.
19        (9)  Proceeds  of  mandatory  service  charges separately
20    stated on customers' bills for the purchase  and  consumption
21    of food and beverages, to the extent that the proceeds of the
22    service  charge  are  in  fact  turned  over  as tips or as a
23    substitute for tips to the employees who participate directly
24    in preparing, serving, hosting or cleaning  up  the  food  or
25    beverage function with respect to which the service charge is
26    imposed.
27        (10)  Oil  field  exploration,  drilling,  and production
28    equipment, including (i) rigs and parts of rigs, rotary rigs,
29    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
30    goods,  including  casing  and drill strings, (iii) pumps and
31    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
32    individual   replacement  part  for  oil  field  exploration,
33    drilling, and production equipment, and  (vi)  machinery  and
34    equipment  purchased  for lease; but excluding motor vehicles
 
                           -48-                LRB9111995SMdv
 1    required to be registered under the Illinois Vehicle Code.
 2        (11)  Photoprocessing machinery and equipment,  including
 3    repair  and  replacement  parts, both new and used, including
 4    that  manufactured  on  special  order,  certified   by   the
 5    purchaser  to  be  used  primarily  for  photoprocessing, and
 6    including photoprocessing machinery and  equipment  purchased
 7    for lease.
 8        (12)  Coal   exploration,   mining,  offhighway  hauling,
 9    processing, maintenance, and reclamation equipment, including
10    replacement parts  and  equipment,  and  including  equipment
11    purchased for lease, but excluding motor vehicles required to
12    be registered under the Illinois Vehicle Code.
13        (13)  Food  for  human consumption that is to be consumed
14    off the premises where  it  is  sold  (other  than  alcoholic
15    beverages,  soft  drinks  and food that has been prepared for
16    immediate consumption) and prescription and  non-prescription
17    medicines,  drugs,  medical  appliances,  and  insulin, urine
18    testing materials, syringes, and needles used  by  diabetics,
19    for  human  use, when purchased for use by a person receiving
20    medical assistance under Article 5 of the Illinois Public Aid
21    Code who resides in a licensed long-term  care  facility,  as
22    defined in the Nursing Home Care Act.
23        (14)  Semen used for artificial insemination of livestock
24    for direct agricultural production.
25        (15)  Horses, or interests in horses, registered with and
26    meeting  the  requirements  of  any of the Arabian Horse Club
27    Registry of America, Appaloosa Horse Club,  American  Quarter
28    Horse  Association,  United  States  Trotting Association, or
29    Jockey Club, as appropriate, used for purposes of breeding or
30    racing for prizes.
31        (16)  Computers and communications equipment utilized for
32    any hospital purpose and equipment  used  in  the  diagnosis,
33    analysis,  or treatment of hospital patients sold to a lessor
34    who leases the equipment, under a lease of one year or longer
 
                           -49-                LRB9111995SMdv
 1    executed or in effect at the  time  of  the  purchase,  to  a
 2    hospital  that  has  been  issued  an  active  tax  exemption
 3    identification  number  by the Department under Section 1g of
 4    the Retailers' Occupation Tax Act. This paragraph  is  exempt
 5    from the provisions of Section 3-55.
 6        (17)  Personal  property  sold to a lessor who leases the
 7    property, under a lease of one year or longer executed or  in
 8    effect  at  the  time of the purchase, to a governmental body
 9    that has been issued an active tax  exemption  identification
10    number  by  the Department under Section 1g of the Retailers'
11    Occupation  Tax  Act.  This  paragraph  is  exempt  from  the
12    provisions of Section 3-55.
13        (18)  Beginning with taxable years  ending  on  or  after
14    December  31, 1995 and ending with taxable years ending on or
15    before December 31, 2004, personal property that  is  donated
16    for  disaster  relief  to  be  used  in  a State or federally
17    declared disaster area in Illinois or bordering Illinois by a
18    manufacturer or retailer that is registered in this State  to
19    a   corporation,   society,   association,   foundation,   or
20    institution  that  has  been  issued  a  sales  tax exemption
21    identification number by the Department that assists  victims
22    of the disaster who reside within the declared disaster area.
23        (19)  Beginning  with  taxable  years  ending on or after
24    December 31, 1995 and ending with taxable years ending on  or
25    before  December  31, 2004, personal property that is used in
26    the performance of  infrastructure  repairs  in  this  State,
27    including  but  not  limited  to municipal roads and streets,
28    access roads, bridges,  sidewalks,  waste  disposal  systems,
29    water  and  sewer  line  extensions,  water  distribution and
30    purification facilities, storm water drainage  and  retention
31    facilities, and sewage treatment facilities, resulting from a
32    State or federally declared disaster in Illinois or bordering
33    Illinois  when  such  repairs  are  initiated  on  facilities
34    located  in  the declared disaster area within 6 months after
 
                           -50-                LRB9111995SMdv
 1    the disaster.
 2        (20)  Beginning July 1, 1999, game or game birds sold  at
 3    a  "game  breeding  and  hunting preserve area" or an "exotic
 4    game hunting area" as those terms are used  in  the  Wildlife
 5    Code or at a hunting enclosure approved through rules adopted
 6    by  the  Department  of Natural Resources.  This paragraph is
 7    exempt from the provisions of Section 3-55.
 8        (21) (20)  A motor vehicle, as that term  is  defined  in
 9    Section  1-146  of the Illinois Vehicle Code, that is donated
10    to  a  corporation,  limited  liability   company,   society,
11    association, foundation, or institution that is determined by
12    the  Department  to be organized and operated exclusively for
13    educational purposes.  For purposes  of  this  exemption,  "a
14    corporation, limited liability company, society, association,
15    foundation, or institution organized and operated exclusively
16    for  educational  purposes"  means  all  tax-supported public
17    schools, private schools that offer systematic instruction in
18    useful branches of  learning  by  methods  common  to  public
19    schools  and  that  compare  favorably  in  their  scope  and
20    intensity with the course of study presented in tax-supported
21    schools,  and  vocational  or technical schools or institutes
22    organized and operated exclusively to  provide  a  course  of
23    study  of  not  less  than  6  weeks duration and designed to
24    prepare individuals to follow a trade or to pursue a  manual,
25    technical,  mechanical,  industrial,  business, or commercial
26    occupation.
27        (22) (21)  Beginning January 1, 2000,  personal property,
28    including food, purchased through fundraising events for  the
29    benefit  of  a  public  or  private  elementary  or secondary
30    school, a group of those  schools,  or  one  or  more  school
31    districts if the events are sponsored by an entity recognized
32    by  the school district that consists primarily of volunteers
33    and includes parents and teachers  of  the  school  children.
34    This  paragraph  does not apply to fundraising events (i) for
 
                           -51-                LRB9111995SMdv
 1    the benefit of private home instruction or (ii) for which the
 2    fundraising entity purchases the personal  property  sold  at
 3    the  events  from  another individual or entity that sold the
 4    property for the purpose of resale by the fundraising  entity
 5    and  that  profits  from  the sale to the fundraising entity.
 6    This paragraph is exempt from the provisions of Section 3-55.
 7        (23)  (20)  Beginning  January  1,  2000,  new  or   used
 8    automatic  vending  machines  that prepare and serve hot food
 9    and beverages, including coffee, soup, and other  items,  and
10    replacement  parts  for  these  machines.   This paragraph is
11    exempt from the provisions of Section 3-55.
12        (24)  Beginning January 1, 2001, qualified  technological
13    equipment  sold  to lessors for lease under leases subject to
14    the Qualified Technological Equipment Leasing Occupation  and
15    Use  Tax Act. This paragraph is exempt from the provisions of
16    Section 3-55.
17    (Source: P.A. 90-14,  eff.  7-1-97;  90-552,  eff.  12-12-97;
18    90-605,  eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200, eff.
19    7-20-99; 91-439, eff. 8-6-99; 91-533, eff.  8-13-99;  91-637,
20    eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)

21        Section  125.   The  Retailers'  Occupation  Tax  Act  is
22    amended   by  adding  Sections  1c-5  and  3.5  and  changing
23    Sections 2-5 and 3 as follows:

24        (35 ILCS 120/1c-5 new)
25        Sec.   1c-5.    Sale   of  used  qualified  technological
26    equipment by  lessors.   A  person  who  is  engaged  in  the
27    business  of  leasing qualified technological equipment under
28    leases  subject  to  the  Qualified  Technological  Equipment
29    Leasing Occupation and Use Tax Act  and  who,  in  connection
30    with that business, sells the property to a purchaser for his
31    or  her  use and not for the purpose of resale, is a retailer
32    engaged in the business of selling tangible personal property
 
                           -52-                LRB9111995SMdv
 1    at retail under this Act to the extent of the  value  of  the
 2    property sold.

 3        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
 4        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
 5    the  sale  of  the  following  tangible personal property are
 6    exempt from the tax imposed by this Act:
 7        (1)  Farm chemicals.
 8        (2)  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 (2). 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,
 
                           -53-                LRB9111995SMdv
 1    and other such equipment.
 2        Farm machinery and  equipment  also  includes  computers,
 3    sensors,  software,  and  related equipment used primarily in
 4    the computer-assisted  operation  of  production  agriculture
 5    facilities,  equipment,  and  activities  such  as,  but  not
 6    limited  to,  the  collection, monitoring, and correlation of
 7    animal and crop data for the purpose  of  formulating  animal
 8    diets  and  agricultural  chemicals.  This item (7) is exempt
 9    from the provisions of Section 2-70.
10        (3)  Distillation machinery and equipment, sold as a unit
11    or kit, assembled or installed by the retailer, certified  by
12    the  user to be used only for the production of ethyl alcohol
13    that will be used for consumption  as  motor  fuel  or  as  a
14    component of motor fuel for the personal use of the user, and
15    not subject to sale or resale.
16        (4)  Graphic  arts  machinery  and  equipment,  including
17    repair   and  replacement  parts,  both  new  and  used,  and
18    including that manufactured on special order or purchased for
19    lease, certified by the purchaser to be  used  primarily  for
20    graphic arts production.
21        (5)  A  motor  vehicle  of  the  first  division, a motor
22    vehicle of the second division that is a self-contained motor
23    vehicle designed or permanently converted to  provide  living
24    quarters  for  recreational,  camping,  or  travel  use, with
25    direct walk through access to the living  quarters  from  the
26    driver's seat, or a motor vehicle of the second division that
27    is  of  the van configuration designed for the transportation
28    of not less than 7 nor more than 16 passengers, as defined in
29    Section 1-146 of the Illinois Vehicle Code, that is used  for
30    automobile  renting,  as  defined  in  the Automobile Renting
31    Occupation and Use Tax Act.
32        (6)  Personal  property  sold  by   a   teacher-sponsored
33    student   organization   affiliated  with  an  elementary  or
34    secondary school located in Illinois.
 
                           -54-                LRB9111995SMdv
 1        (7)  Proceeds of that portion of the selling price  of  a
 2    passenger car the sale of which is subject to the Replacement
 3    Vehicle Tax.
 4        (8)  Personal  property  sold  to an Illinois county fair
 5    association for use in conducting,  operating,  or  promoting
 6    the county fair.
 7        (9)  Personal  property  sold to a not-for-profit arts or
 8    cultural organization that establishes, by proof required  by
 9    the  Department  by  rule,  that it has received an exemption
10    under Section 501(c)(3) of the Internal Revenue Code and that
11    is organized and operated for the presentation or support  of
12    arts or cultural programming, activities, or services.  These
13    organizations  include,  but  are  not  limited to, music and
14    dramatic arts organizations such as symphony  orchestras  and
15    theatrical  groups,  arts and cultural service organizations,
16    local arts councils, visual  arts  organizations,  and  media
17    arts organizations.
18        (10)  Personal  property  sold by a corporation, society,
19    association, foundation, institution, or organization,  other
20    than  a  limited  liability  company,  that  is organized and
21    operated as  a  not-for-profit  service  enterprise  for  the
22    benefit  of  persons 65 years of age or older if the personal
23    property was not purchased by the enterprise for the  purpose
24    of resale by the enterprise.
25        (11)  Personal property sold to a governmental body, to a
26    corporation, society, association, foundation, or institution
27    organized and operated exclusively for charitable, religious,
28    or  educational purposes, or to a not-for-profit corporation,
29    society,    association,    foundation,    institution,    or
30    organization that has no compensated  officers  or  employees
31    and   that  is  organized  and  operated  primarily  for  the
32    recreation of persons 55 years of age  or  older.  A  limited
33    liability  company  may  qualify for the exemption under this
34    paragraph only if the limited liability company is  organized
 
                           -55-                LRB9111995SMdv
 1    and  operated  exclusively  for  educational purposes. On and
 2    after July 1, 1987, however, no entity otherwise eligible for
 3    this exemption shall make tax-free purchases unless it has an
 4    active identification number issued by the Department.
 5        (12)  Personal property sold to interstate  carriers  for
 6    hire  for  use as rolling stock moving in interstate commerce
 7    or to lessors under leases of one year or longer executed  or
 8    in  effect at the time of purchase by interstate carriers for
 9    hire for use as rolling stock moving in  interstate  commerce
10    and  equipment  operated  by  a  telecommunications provider,
11    licensed as a common carrier by  the  Federal  Communications
12    Commission,  which  is permanently installed in or affixed to
13    aircraft moving in interstate commerce.
14        (13)  Proceeds from sales to owners, lessors, or shippers
15    of tangible personal property that is utilized by  interstate
16    carriers  for  hire  for  use  as  rolling  stock  moving  in
17    interstate    commerce    and   equipment   operated   by   a
18    telecommunications provider, licensed as a common carrier  by
19    the  Federal  Communications Commission, which is permanently
20    installed in or affixed  to  aircraft  moving  in  interstate
21    commerce.
22        (14)  Machinery  and  equipment  that will be used by the
23    purchaser, or a lessee of the  purchaser,  primarily  in  the
24    process  of  manufacturing  or  assembling  tangible personal
25    property for wholesale or retail sale or lease,  whether  the
26    sale or lease is made directly by the manufacturer or by some
27    other  person,  whether the materials used in the process are
28    owned by the manufacturer or some other  person,  or  whether
29    the sale or lease is made apart from or as an incident to the
30    seller's  engaging  in  the  service  occupation of producing
31    machines, tools,  dies,  jigs,  patterns,  gauges,  or  other
32    similar  items  of no commercial value on special order for a
33    particular purchaser.
34        (15)  Proceeds of mandatory  service  charges  separately
 
                           -56-                LRB9111995SMdv
 1    stated  on  customers'  bills for purchase and consumption of
 2    food and beverages, to the extent that the  proceeds  of  the
 3    service  charge  are  in  fact  turned  over  as tips or as a
 4    substitute for tips to the employees who participate directly
 5    in preparing, serving, hosting or cleaning  up  the  food  or
 6    beverage function with respect to which the service charge is
 7    imposed.
 8        (16)  Petroleum  products  sold  to  a  purchaser  if the
 9    seller is prohibited by federal law from charging tax to  the
10    purchaser.
11        (17)  Tangible personal property sold to a common carrier
12    by rail or motor that receives the physical possession of the
13    property  in  Illinois  and  that transports the property, or
14    shares with another common carrier in the  transportation  of
15    the  property,  out of Illinois on a standard uniform bill of
16    lading showing the seller of the property as the  shipper  or
17    consignor  of the property to a destination outside Illinois,
18    for use outside Illinois.
19        (18)  Legal tender,  currency,  medallions,  or  gold  or
20    silver   coinage   issued  by  the  State  of  Illinois,  the
21    government of the United States of America, or the government
22    of any foreign country, and bullion.
23        (19)  Oil field  exploration,  drilling,  and  production
24    equipment, including (i) rigs and parts of rigs, rotary rigs,
25    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
26    goods, including casing and drill strings,  (iii)  pumps  and
27    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
28    individual  replacement  part  for  oil  field   exploration,
29    drilling,  and  production  equipment, and (vi) machinery and
30    equipment purchased for lease; but excluding  motor  vehicles
31    required to be registered under the Illinois Vehicle Code.
32        (20)  Photoprocessing  machinery and equipment, including
33    repair and replacement parts, both new  and  used,  including
34    that   manufactured   on  special  order,  certified  by  the
 
                           -57-                LRB9111995SMdv
 1    purchaser to  be  used  primarily  for  photoprocessing,  and
 2    including  photoprocessing  machinery and equipment purchased
 3    for lease.
 4        (21)  Coal  exploration,  mining,   offhighway   hauling,
 5    processing, maintenance, and reclamation equipment, including
 6    replacement  parts  and  equipment,  and  including equipment
 7    purchased for lease, but excluding motor vehicles required to
 8    be registered under the Illinois Vehicle Code.
 9        (22)  Fuel and petroleum products sold to or used  by  an
10    air  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        (23)  A  transaction  in  which  the  purchase  order  is
17    received  by  a  florist who is located outside Illinois, but
18    who has a florist located in Illinois deliver the property to
19    the purchaser or the purchaser's donee in Illinois.
20        (24)  Fuel consumed or used in the  operation  of  ships,
21    barges,  or  vessels  that  are  used primarily in or for the
22    transportation of property or the conveyance of  persons  for
23    hire  on  rivers  bordering  on  this  State  if  the fuel is
24    delivered by the seller to the purchaser's  barge,  ship,  or
25    vessel while it is afloat upon that bordering river.
26        (25)  A motor vehicle sold in this State to a nonresident
27    even though the motor vehicle is delivered to the nonresident
28    in  this  State,  if the motor vehicle is not to be titled in
29    this State, and if a driveaway decal permit is issued to  the
30    motor  vehicle  as  provided in Section 3-603 of the Illinois
31    Vehicle Code or if  the  nonresident  purchaser  has  vehicle
32    registration  plates  to  transfer  to the motor vehicle upon
33    returning to his or her home  state.   The  issuance  of  the
34    driveaway   decal   permit   or   having   the   out-of-state
 
                           -58-                LRB9111995SMdv
 1    registration plates to be transferred is prima facie evidence
 2    that the motor vehicle will not be titled in this State.
 3        (26)  Semen used for artificial insemination of livestock
 4    for direct agricultural production.
 5        (27)  Horses, or interests in horses, registered with and
 6    meeting  the  requirements  of  any of the Arabian Horse Club
 7    Registry of America, Appaloosa Horse Club,  American  Quarter
 8    Horse  Association,  United  States  Trotting Association, or
 9    Jockey Club, as appropriate, used for purposes of breeding or
10    racing for prizes.
11        (28)  Computers and communications equipment utilized for
12    any hospital purpose and equipment  used  in  the  diagnosis,
13    analysis,  or treatment of hospital patients sold to a lessor
14    who leases the equipment, under a lease of one year or longer
15    executed or in effect at the  time  of  the  purchase,  to  a
16    hospital  that  has  been  issued  an  active  tax  exemption
17    identification  number  by the Department under Section 1g of
18    this Act. This paragraph is exempt  from  the  provisions  of
19    Section 2-70.
20        (29)  Personal  property  sold to a lessor who leases the
21    property, under a lease of one year or longer executed or  in
22    effect  at  the  time of the purchase, to a governmental body
23    that has been issued an active tax  exemption  identification
24    number  by  the Department under Section 1g of this Act. This
25    paragraph is exempt from the provisions of Section 2-70.
26        (30)  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  donated
29    for  disaster  relief  to  be  used  in  a State or federally
30    declared disaster area in Illinois or bordering Illinois by a
31    manufacturer or retailer that is registered in this State  to
32    a   corporation,   society,   association,   foundation,   or
33    institution  that  has  been  issued  a  sales  tax exemption
34    identification number by the Department that assists  victims
 
                           -59-                LRB9111995SMdv
 1    of the disaster who reside within the declared disaster area.
 2        (31)  Beginning  with  taxable  years  ending on or after
 3    December 31, 1995 and ending with taxable years ending on  or
 4    before  December  31, 2004, personal property that is used in
 5    the performance of  infrastructure  repairs  in  this  State,
 6    including  but  not  limited  to municipal roads and streets,
 7    access roads, bridges,  sidewalks,  waste  disposal  systems,
 8    water  and  sewer  line  extensions,  water  distribution and
 9    purification facilities, storm water drainage  and  retention
10    facilities, and sewage treatment facilities, resulting from a
11    State or federally declared disaster in Illinois or bordering
12    Illinois  when  such  repairs  are  initiated  on  facilities
13    located  in  the declared disaster area within 6 months after
14    the disaster.
15        (32)  Beginning July 1, 1999, game or game birds sold  at
16    a  "game  breeding  and  hunting preserve area" or an "exotic
17    game hunting area" as those terms are used  in  the  Wildlife
18    Code or at a hunting enclosure approved through rules adopted
19    by  the  Department  of Natural Resources.  This paragraph is
20    exempt from the provisions of Section 2-70.
21        (33) (32)  A motor vehicle, as that term  is  defined  in
22    Section  1-146  of the Illinois Vehicle Code, that is donated
23    to  a  corporation,  limited  liability   company,   society,
24    association, foundation, or institution that is determined by
25    the  Department  to be organized and operated exclusively for
26    educational purposes.  For purposes  of  this  exemption,  "a
27    corporation, limited liability company, society, association,
28    foundation, or institution organized and operated exclusively
29    for  educational  purposes"  means  all  tax-supported public
30    schools, private schools that offer systematic instruction in
31    useful branches of  learning  by  methods  common  to  public
32    schools  and  that  compare  favorably  in  their  scope  and
33    intensity with the course of study presented in tax-supported
34    schools,  and  vocational  or technical schools or institutes
 
                           -60-                LRB9111995SMdv
 1    organized and operated exclusively to  provide  a  course  of
 2    study  of  not  less  than  6  weeks duration and designed to
 3    prepare individuals to follow a trade or to pursue a  manual,
 4    technical,  mechanical,  industrial,  business, or commercial
 5    occupation.
 6        (34) (33)  Beginning January 1, 2000,  personal property,
 7    including food, purchased through fundraising events for  the
 8    benefit  of  a  public  or  private  elementary  or secondary
 9    school, a group of those  schools,  or  one  or  more  school
10    districts if the events are sponsored by an entity recognized
11    by  the school district that consists primarily of volunteers
12    and includes parents and teachers  of  the  school  children.
13    This  paragraph  does not apply to fundraising events (i) for
14    the benefit of private home instruction or (ii) for which the
15    fundraising entity purchases the personal  property  sold  at
16    the  events  from  another individual or entity that sold the
17    property for the purpose of resale by the fundraising  entity
18    and  that  profits  from  the sale to the fundraising entity.
19    This paragraph is exempt from the provisions of Section 2-70.
20        (35)  (32)  Beginning  January  1,  2000,  new  or   used
21    automatic  vending  machines  that prepare and serve hot food
22    and beverages, including coffee, soup, and other  items,  and
23    replacement  parts  for  these  machines.   This paragraph is
24    exempt from the provisions of Section 2-70.
25        (36)  Beginning January 1, 2001, qualified  technological
26    equipment  sold  to lessors for lease under leases subject to
27    the Qualified Technological Equipment Leasing Occupation  and
28    Use  Tax Act. This paragraph is exempt from the provisions of
29    Section 2-70.
30    (Source: P.A.  90-14,  eff.  7-1-97;  90-519,  eff.   6-1-98;
31    90-552,  eff.  12-12-97;  90-605,  eff.  6-30-98; 91-51, eff.
32    6-30-99; 91-200, eff. 7-20-99; 91-439, eff.  8-6-99;  91-533,
33    eff.  8-13-99;  91-637,  eff.  8-20-99; 91-644, eff. 8-20-99;
34    revised 9-28-99.)
 
                           -61-                LRB9111995SMdv
 1        (35 ILCS 120/3) (from Ch. 120, par. 442)
 2        Sec. 3.  Except as provided in this Section, on or before
 3    the twentieth  day  of  each  calendar  month,  every  person
 4    engaged in the business of selling tangible personal property
 5    at  retail  in this State during the preceding calendar month
 6    shall file a return with the Department, stating:
 7             1.  The name of the seller;
 8             2.  His residence address and  the  address  of  his
 9        principal  place  of  business  and  the  address  of the
10        principal place of  business  (if  that  is  a  different
11        address) from which he engages in the business of selling
12        tangible personal property at retail in this State;
13             3.  Total  amount of receipts received by him during
14        the preceding calendar month or quarter, as the case  may
15        be,  from  sales  of tangible personal property, and from
16        services furnished, by him during such preceding calendar
17        month or quarter;
18             4.  Total  amount  received  by   him   during   the
19        preceding  calendar  month  or quarter on charge and time
20        sales of tangible personal property,  and  from  services
21        furnished, by him prior to the month or quarter for which
22        the return is filed;
23             5.  Deductions allowed by law;
24             6.  Gross receipts which were received by him during
25        the  preceding  calendar  month  or  quarter and upon the
26        basis of which the tax is imposed;
27             7.  The amount of credit provided in Section  2d  of
28        this Act;
29             8.  The amount of tax due;
30             9.  The signature of the taxpayer; and
31             10.  Such   other   reasonable  information  as  the
32        Department may require.
33        If a taxpayer fails to sign a return within 30 days after
34    the proper notice and demand for signature by the Department,
 
                           -62-                LRB9111995SMdv
 1    the return shall be considered valid and any amount shown  to
 2    be due on the return shall be deemed assessed.
 3        Each  return  shall  be  accompanied  by the statement of
 4    prepaid tax issued pursuant to Section 2e for which credit is
 5    claimed.
 6        A retailer may accept a  Manufacturer's  Purchase  Credit
 7    certification  from a purchaser in satisfaction of Use Tax as
 8    provided in Section 3-85 of the Use Tax Act if the  purchaser
 9    provides the appropriate documentation as required by Section
10    3-85  of  the  Use Tax Act.  A Manufacturer's Purchase Credit
11    certification, accepted by a retailer as provided in  Section
12    3-85  of  the  Use  Tax  Act, may be used by that retailer to
13    satisfy Retailers' Occupation Tax  liability  in  the  amount
14    claimed  in  the  certification,  not  to exceed 6.25% of the
15    receipts subject to tax from a qualifying purchase.
16        The Department may require  returns  to  be  filed  on  a
17    quarterly  basis.  If so required, a return for each calendar
18    quarter shall be filed on or before the twentieth day of  the
19    calendar  month  following  the end of such calendar quarter.
20    The taxpayer shall also file a return with the Department for
21    each of the first two months of each calendar quarter, on  or
22    before  the  twentieth  day  of the following calendar month,
23    stating:
24             1.  The name of the seller;
25             2.  The address of the principal place  of  business
26        from which he engages in the business of selling tangible
27        personal property at retail in this State;
28             3.  The total amount of taxable receipts received by
29        him  during  the  preceding  calendar month from sales of
30        tangible personal property by him during  such  preceding
31        calendar  month,  including receipts from charge and time
32        sales, but less all deductions allowed by law;
33             4.  The amount of credit provided in Section  2d  of
34        this Act;
 
                           -63-                LRB9111995SMdv
 1             5.  The amount of tax due; and
 2             6.  Such   other   reasonable   information  as  the
 3        Department may require.
 4        If a total amount of less than $1 is payable,  refundable
 5    or creditable, such amount shall be disregarded if it is less
 6    than  50 cents and shall be increased to $1 if it is 50 cents
 7    or more.
 8        Beginning October 1, 1993, a taxpayer who has an  average
 9    monthly  tax  liability  of  $150,000  or more shall make all
10    payments required by rules of the  Department  by  electronic
11    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
12    has an average monthly tax  liability  of  $100,000  or  more
13    shall  make  all payments required by rules of the Department
14    by electronic funds transfer.  Beginning October 1,  1995,  a
15    taxpayer  who has an average monthly tax liability of $50,000
16    or more shall make all payments  required  by  rules  of  the
17    Department  by  electronic funds transfer.  Beginning October
18    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
19    $200,000 or more shall make all payments required by rules of
20    the  Department  by  electronic  funds  transfer.   The  term
21    "annual  tax  liability"  shall  be the sum of the taxpayer's
22    liabilities under this Act, and under  all  other  State  and
23    local  occupation  and  use  tax  laws  administered  by  the
24    Department,  for the immediately preceding calendar year. The
25    term "average monthly tax liability" shall be the sum of  the
26    taxpayer's  liabilities  under  this Act, and under all other
27    State and local occupation and use tax laws  administered  by
28    the  Department,  for the immediately preceding calendar year
29    divided by 12.
30        Before August 1 of  each  year  beginning  in  1993,  the
31    Department  shall  notify  all  taxpayers  required  to  make
32    payments   by   electronic  funds  transfer.   All  taxpayers
33    required to make payments by electronic funds transfer  shall
34    make  those  payments  for a minimum of one year beginning on
 
                           -64-                LRB9111995SMdv
 1    October 1.
 2        Any taxpayer not required to make payments by  electronic
 3    funds transfer may make payments by electronic funds transfer
 4    with the permission of the Department.
 5        All  taxpayers  required  to  make  payment by electronic
 6    funds transfer and any taxpayers  authorized  to  voluntarily
 7    make  payments  by electronic funds transfer shall make those
 8    payments in the manner authorized by the Department.
 9        The Department shall adopt such rules as are necessary to
10    effectuate a program of electronic  funds  transfer  and  the
11    requirements of this Section.
12        Any  amount  which is required to be shown or reported on
13    any return or other document under this Act  shall,  if  such
14    amount  is  not  a  whole-dollar  amount, be increased to the
15    nearest whole-dollar amount in any case where the  fractional
16    part  of  a  dollar is 50 cents or more, and decreased to the
17    nearest whole-dollar amount where the fractional  part  of  a
18    dollar is less than 50 cents.
19        If  the  retailer is otherwise required to file a monthly
20    return and if the retailer's average monthly tax liability to
21    the Department does  not  exceed  $200,  the  Department  may
22    authorize  his returns to be filed on a quarter annual basis,
23    with the return for January, February and March  of  a  given
24    year  being due by April 20 of such year; with the return for
25    April, May and June of a given year being due by July  20  of
26    such  year; with the return for July, August and September of
27    a given year being due by October 20 of such year,  and  with
28    the return for October, November and December of a given year
29    being due by January 20 of the following year.
30        If  the  retailer is otherwise required to file a monthly
31    or quarterly return and if the retailer's average monthly tax
32    liability with  the  Department  does  not  exceed  $50,  the
33    Department may authorize his returns to be filed on an annual
34    basis,  with the return for a given year being due by January
 
                           -65-                LRB9111995SMdv
 1    20 of the following year.
 2        Such quarter annual and annual returns, as  to  form  and
 3    substance,  shall  be  subject  to  the  same requirements as
 4    monthly returns.
 5        Notwithstanding  any  other   provision   in   this   Act
 6    concerning  the  time  within  which  a retailer may file his
 7    return, in the case of any retailer who ceases to engage in a
 8    kind of business  which  makes  him  responsible  for  filing
 9    returns  under  this  Act,  such  retailer shall file a final
10    return under this Act with the Department not more  than  one
11    month after discontinuing such business.
12        Where   the  same  person  has  more  than  one  business
13    registered with the Department under  separate  registrations
14    under  this Act, such person may not file each return that is
15    due  as  a  single  return  covering  all   such   registered
16    businesses,  but  shall  file  separate returns for each such
17    registered business.
18        In addition, with respect to motor vehicles,  watercraft,
19    aircraft,  and  trailers  that  are required to be registered
20    with an agency of this State,  every  retailer  selling  this
21    kind  of  tangible  personal  property  shall  file, with the
22    Department, upon a form to be prescribed and supplied by  the
23    Department,  a separate return for each such item of tangible
24    personal property  which  the  retailer  sells,  except  that
25    where,  in  the  same  transaction,  a  retailer of aircraft,
26    watercraft, motor vehicles or trailers  transfers  more  than
27    one aircraft, watercraft, motor vehicle or trailer to another
28    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
29    retailer  for  the  purpose of resale, that seller for resale
30    may report the transfer of all  aircraft,  watercraft,  motor
31    vehicles  or  trailers  involved  in  that transaction to the
32    Department on the same uniform invoice-transaction  reporting
33    return  form.   For  purposes  of  this Section, "watercraft"
34    means a Class 2, Class 3, or Class 4 watercraft as defined in
 
                           -66-                LRB9111995SMdv
 1    Section 3-2 of  the  Boat  Registration  and  Safety  Act,  a
 2    personal  watercraft,  or  any  boat equipped with an inboard
 3    motor.
 4        Any retailer who sells only motor  vehicles,  watercraft,
 5    aircraft, or trailers that are required to be registered with
 6    an  agency  of  this State, so that all retailers' occupation
 7    tax liability is required to be reported, and is reported, on
 8    such transaction reporting returns and who is  not  otherwise
 9    required  to file monthly or quarterly returns, need not file
10    monthly or quarterly returns.  However, those retailers shall
11    be required to file returns on an annual basis.
12        The transaction reporting return, in the  case  of  motor
13    vehicles  or trailers that are required to be registered with
14    an agency of this State, shall be the same  document  as  the
15    Uniform  Invoice referred to in Section 5-402 of The Illinois
16    Vehicle Code and must  show  the  name  and  address  of  the
17    seller;  the name and address of the purchaser; the amount of
18    the  selling  price  including  the  amount  allowed  by  the
19    retailer for traded-in property, if any; the  amount  allowed
20    by the retailer for the traded-in tangible personal property,
21    if  any,  to the extent to which Section 1 of this Act allows
22    an exemption for the value of traded-in property; the balance
23    payable after deducting  such  trade-in  allowance  from  the
24    total  selling price; the amount of tax due from the retailer
25    with respect to such transaction; the amount of tax collected
26    from the purchaser by the retailer on  such  transaction  (or
27    satisfactory  evidence  that  such  tax  is  not  due in that
28    particular instance, if that is claimed to be the fact);  the
29    place  and  date  of the sale; a sufficient identification of
30    the property sold; such other information as is  required  in
31    Section  5-402  of  The Illinois Vehicle Code, and such other
32    information as the Department may reasonably require.
33        The  transaction  reporting  return  in   the   case   of
34    watercraft  or aircraft must show the name and address of the
 
                           -67-                LRB9111995SMdv
 1    seller; the name and address of the purchaser; the amount  of
 2    the  selling  price  including  the  amount  allowed  by  the
 3    retailer  for  traded-in property, if any; the amount allowed
 4    by the retailer for the traded-in tangible personal property,
 5    if any, to the extent to which Section 1 of this  Act  allows
 6    an exemption for the value of traded-in property; the balance
 7    payable  after  deducting  such  trade-in  allowance from the
 8    total selling price; the amount of tax due from the  retailer
 9    with respect to such transaction; the amount of tax collected
10    from  the  purchaser  by the retailer on such transaction (or
11    satisfactory evidence that  such  tax  is  not  due  in  that
12    particular  instance, if that is claimed to be the fact); the
13    place and date of the sale, a  sufficient  identification  of
14    the   property  sold,  and  such  other  information  as  the
15    Department may reasonably require.
16        Such transaction reporting  return  shall  be  filed  not
17    later than 20 days after the day of delivery of the item that
18    is  being  sold, but may be filed by the retailer at any time
19    sooner than that if he chooses to  do  so.   The  transaction
20    reporting  return  and  tax  remittance or proof of exemption
21    from  the  Illinois  use  tax  may  be  transmitted  to   the
22    Department  by  way  of the State agency with which, or State
23    officer with whom the  tangible  personal  property  must  be
24    titled or registered (if titling or registration is required)
25    if  the Department and such agency or State officer determine
26    that  this  procedure  will  expedite   the   processing   of
27    applications for title or registration.
28        With each such transaction reporting return, the retailer
29    shall  remit  the  proper  amount of tax due (or shall submit
30    satisfactory evidence that the sale is not taxable if that is
31    the case), to the Department or  its  agents,  whereupon  the
32    Department  shall  issue,  in the purchaser's name, a use tax
33    receipt (or a certificate of exemption if the  Department  is
34    satisfied  that the particular sale is tax exempt) which such
 
                           -68-                LRB9111995SMdv
 1    purchaser may submit to  the  agency  with  which,  or  State
 2    officer  with  whom,  he  must title or register the tangible
 3    personal  property  that   is   involved   (if   titling   or
 4    registration  is  required)  in  support  of such purchaser's
 5    application for an Illinois certificate or other evidence  of
 6    title or registration to such tangible personal property.
 7        No  retailer's failure or refusal to remit tax under this
 8    Act precludes a user, who has paid  the  proper  tax  to  the
 9    retailer,  from  obtaining  his certificate of title or other
10    evidence of title or registration (if titling or registration
11    is required) upon satisfying the Department  that  such  user
12    has paid the proper tax (if tax is due) to the retailer.  The
13    Department  shall  adopt  appropriate  rules to carry out the
14    mandate of this paragraph.
15        If the user who would otherwise pay tax to  the  retailer
16    wants  the transaction reporting return filed and the payment
17    of the tax or proof  of  exemption  made  to  the  Department
18    before the retailer is willing to take these actions and such
19    user  has  not  paid  the  tax to the retailer, such user may
20    certify to the fact of such delay by  the  retailer  and  may
21    (upon  the  Department  being  satisfied of the truth of such
22    certification)  transmit  the  information  required  by  the
23    transaction reporting return and the remittance  for  tax  or
24    proof  of exemption directly to the Department and obtain his
25    tax receipt or exemption determination, in  which  event  the
26    transaction  reporting  return  and  tax remittance (if a tax
27    payment was required) shall be credited by the Department  to
28    the  proper  retailer's  account  with  the  Department,  but
29    without  the  2.1%  or  1.75%  discount  provided for in this
30    Section being allowed.  When the user pays the  tax  directly
31    to  the  Department,  he shall pay the tax in the same amount
32    and in the same form in which it would be remitted if the tax
33    had been remitted to the Department by the retailer.
34        Refunds made by the seller during  the  preceding  return
 
                           -69-                LRB9111995SMdv
 1    period   to  purchasers,  on  account  of  tangible  personal
 2    property returned to  the  seller,  shall  be  allowed  as  a
 3    deduction  under  subdivision  5  of his monthly or quarterly
 4    return,  as  the  case  may  be,  in  case  the  seller   had
 5    theretofore  included  the  receipts  from  the  sale of such
 6    tangible personal property in a return filed by him  and  had
 7    paid  the  tax  imposed  by  this  Act  with  respect to such
 8    receipts.
 9        Where the seller is a corporation, the  return  filed  on
10    behalf  of such corporation shall be signed by the president,
11    vice-president, secretary or treasurer  or  by  the  properly
12    accredited agent of such corporation.
13        Where  the  seller  is  a  limited liability company, the
14    return filed on behalf of the limited liability company shall
15    be signed by a manager, member, or properly accredited  agent
16    of the limited liability company.
17        Except  as  provided in this Section, the retailer filing
18    the return under this Section shall, at the  time  of  filing
19    such  return, pay to the Department the amount of tax imposed
20    by this Act less a discount of 2.1% prior to January 1,  1990
21    and  1.75%  on  and after January 1, 1990, or $5 per calendar
22    year, whichever is greater, which is allowed to reimburse the
23    retailer  for  the  expenses  incurred  in  keeping  records,
24    preparing and filing returns, remitting the tax and supplying
25    data to the  Department  on  request.   Any  prepayment  made
26    pursuant  to  Section 2d of this Act shall be included in the
27    amount on which such 2.1% or 1.75% discount is computed.   In
28    the  case  of  retailers  who  report  and  pay  the tax on a
29    transaction  by  transaction  basis,  as  provided  in   this
30    Section,  such  discount  shall  be  taken with each such tax
31    remittance instead of when such retailer files  his  periodic
32    return.
33        Before October 1, 2000, if the taxpayer's average monthly
34    tax  liability  to the Department under this Act, the Use Tax
 
                           -70-                LRB9111995SMdv
 1    Act, the Service Occupation Tax Act, and the Service Use  Tax
 2    Act,  excluding  any  liability  for  prepaid sales tax to be
 3    remitted in accordance with  Section  2d  of  this  Act,  was
 4    $10,000  or  more  during  the  preceding 4 complete calendar
 5    quarters, he shall file a return  with  the  Department  each
 6    month  by  the 20th day of the month next following the month
 7    during which such tax liability is incurred  and  shall  make
 8    payments  to  the Department on or before the 7th, 15th, 22nd
 9    and last day of the month  during  which  such  liability  is
10    incurred.  On  and  after  October 1, 2000, if the taxpayer's
11    average monthly tax liability to the  Department  under  this
12    Act, the Use Tax Act, the Service Occupation Tax Act, and the
13    Service  Use  Tax  Act,  excluding  any liability for prepaid
14    sales tax to be remitted in accordance  with  Section  2d  of
15    this Act, was $20,000 or more during the preceding 4 complete
16    calendar quarters, he shall file a return with the Department
17    each  month  by  the 20th day of the month next following the
18    month during which such tax liability is incurred  and  shall
19    make  payment  to  the Department on or before the 7th, 15th,
20    22nd and last day of the month during which such liability is
21    incurred.  If the month during which such  tax  liability  is
22    incurred  began  prior to January 1, 1985, each payment shall
23    be in an  amount  equal  to  1/4  of  the  taxpayer's  actual
24    liability  for  the  month or an amount set by the Department
25    not to exceed 1/4 of the average  monthly  liability  of  the
26    taxpayer  to  the  Department  for  the  preceding 4 complete
27    calendar quarters (excluding the month of  highest  liability
28    and  the month of lowest liability in such 4 quarter period).
29    If the month during which  such  tax  liability  is  incurred
30    begins  on  or  after January 1, 1985 and prior to January 1,
31    1987, each payment shall be in an amount equal  to  22.5%  of
32    the taxpayer's actual liability for the month or 27.5% of the
33    taxpayer's  liability  for  the  same  calendar  month of the
34    preceding year.  If the month during which such tax liability
 
                           -71-                LRB9111995SMdv
 1    is incurred begins on or after January 1, 1987 and  prior  to
 2    January  1, 1988, each payment shall be in an amount equal to
 3    22.5% of the taxpayer's actual liability  for  the  month  or
 4    26.25%  of  the  taxpayer's  liability  for the same calendar
 5    month of the preceding year.  If the month during which  such
 6    tax liability is incurred begins on or after January 1, 1988,
 7    and  prior  to January 1, 1989, or begins on or after January
 8    1, 1996, each payment shall be in an amount equal to 22.5% of
 9    the taxpayer's actual liability for the month or 25%  of  the
10    taxpayer's  liability  for  the  same  calendar  month of the
11    preceding year. If the month during which such tax  liability
12    is  incurred begins on or after January 1, 1989, and prior to
13    January 1, 1996, each payment shall be in an amount equal  to
14    22.5% of the taxpayer's actual liability for the month or 25%
15    of  the  taxpayer's  liability for the same calendar month of
16    the preceding year or 100% of the taxpayer's actual liability
17    for the quarter monthly reporting period.  The amount of such
18    quarter monthly payments shall be credited against the  final
19    tax  liability  of  the  taxpayer's  return  for  that month.
20    Before October 1, 2000, once applicable, the  requirement  of
21    the  making  of quarter monthly payments to the Department by
22    taxpayers having an average monthly tax liability of  $10,000
23    or  more  as  determined  in  the manner provided above shall
24    continue until such taxpayer's average monthly  liability  to
25    the  Department  during  the  preceding  4  complete calendar
26    quarters (excluding the month of highest  liability  and  the
27    month of lowest liability) is less than $9,000, or until such
28    taxpayer's  average  monthly  liability  to the Department as
29    computed  for  each  calendar  quarter  of  the  4  preceding
30    complete  calendar  quarter  period  is  less  than  $10,000.
31    However, if  a  taxpayer  can  show  the  Department  that  a
32    substantial  change  in  the taxpayer's business has occurred
33    which causes the taxpayer  to  anticipate  that  his  average
34    monthly  tax  liability for the reasonably foreseeable future
 
                           -72-                LRB9111995SMdv
 1    will fall below the $10,000 threshold stated above, then such
 2    taxpayer may petition the Department for  a  change  in  such
 3    taxpayer's  reporting  status.  On and after October 1, 2000,
 4    once applicable, the requirement of  the  making  of  quarter
 5    monthly  payments  to  the  Department by taxpayers having an
 6    average  monthly  tax  liability  of  $20,000  or   more   as
 7    determined  in the manner provided above shall continue until
 8    such taxpayer's average monthly liability to  the  Department
 9    during  the preceding 4 complete calendar quarters (excluding
10    the month of  highest  liability  and  the  month  of  lowest
11    liability)  is  less  than  $19,000  or until such taxpayer's
12    average monthly liability to the Department as  computed  for
13    each  calendar  quarter  of the 4 preceding complete calendar
14    quarter period is less than $20,000.  However, if a  taxpayer
15    can  show  the  Department  that  a substantial change in the
16    taxpayer's business has occurred which causes the taxpayer to
17    anticipate that his average monthly  tax  liability  for  the
18    reasonably  foreseeable  future  will  fall below the $20,000
19    threshold stated above, then such taxpayer may  petition  the
20    Department  for a change in such taxpayer's reporting status.
21    The Department shall change such taxpayer's reporting  status
22    unless  it  finds  that such change is seasonal in nature and
23    not likely to be long term.   If  any  such  quarter  monthly
24    payment  is not paid at the time or in the amount required by
25    this Section, then the taxpayer shall be liable for penalties
26    and interest on the difference between the minimum amount due
27    as a payment and the amount of such quarter  monthly  payment
28    actually  and timely paid, except insofar as the taxpayer has
29    previously made payments for that month to the Department  in
30    excess  of the minimum payments previously due as provided in
31    this Section. The Department shall make reasonable rules  and
32    regulations  to govern the quarter monthly payment amount and
33    quarter monthly payment dates for taxpayers who file on other
34    than a calendar monthly basis.
 
                           -73-                LRB9111995SMdv
 1        Without regard to whether a taxpayer is required to  make
 2    quarter monthly payments as specified above, any taxpayer who
 3    is  required  by  Section 2d of this Act to collect and remit
 4    prepaid taxes and has collected prepaid taxes  which  average
 5    in  excess  of  $25,000  per  month  during  the  preceding 2
 6    complete calendar quarters, shall  file  a  return  with  the
 7    Department  as required by Section 2f and shall make payments
 8    to the Department on or before the 7th, 15th, 22nd  and  last
 9    day of the month during which such liability is incurred.  If
10    the  month  during which such tax liability is incurred began
11    prior to the effective date of this amendatory Act  of  1985,
12    each payment shall be in an amount not less than 22.5% of the
13    taxpayer's  actual  liability under Section 2d.  If the month
14    during which such tax liability  is  incurred  begins  on  or
15    after  January  1,  1986,  each payment shall be in an amount
16    equal to 22.5% of the taxpayer's  actual  liability  for  the
17    month  or  27.5%  of  the  taxpayer's  liability for the same
18    calendar month of the preceding calendar year.  If the  month
19    during  which  such  tax  liability  is incurred begins on or
20    after January 1, 1987, each payment shall  be  in  an  amount
21    equal  to  22.5%  of  the taxpayer's actual liability for the
22    month or 26.25% of the  taxpayer's  liability  for  the  same
23    calendar  month  of  the  preceding year.  The amount of such
24    quarter monthly payments shall be credited against the  final
25    tax  liability  of the taxpayer's return for that month filed
26    under this Section or Section 2f, as the case may  be.   Once
27    applicable,  the requirement of the making of quarter monthly
28    payments to the Department pursuant to this  paragraph  shall
29    continue  until  such  taxpayer's average monthly prepaid tax
30    collections during the preceding 2 complete calendar quarters
31    is $25,000 or less.  If any such quarter monthly  payment  is
32    not  paid at the time or in the amount required, the taxpayer
33    shall  be  liable  for  penalties  and   interest   on   such
34    difference,  except  insofar  as  the taxpayer has previously
 
                           -74-                LRB9111995SMdv
 1    made payments  for  that  month  in  excess  of  the  minimum
 2    payments previously due.
 3        If  any  payment provided for in this Section exceeds the
 4    taxpayer's liabilities under this Act, the Use Tax  Act,  the
 5    Service  Occupation  Tax  Act and the Service Use Tax Act, as
 6    shown on an original monthly return, the Department shall, if
 7    requested by the taxpayer, issue to  the  taxpayer  a  credit
 8    memorandum  no  later than 30 days after the date of payment.
 9    The  credit  evidenced  by  such  credit  memorandum  may  be
10    assigned by the taxpayer to a  similar  taxpayer  under  this
11    Act,  the  Use Tax Act, the Service Occupation Tax Act or the
12    Service Use Tax Act, in accordance with reasonable rules  and
13    regulations  to  be prescribed by the Department.  If no such
14    request is made, the taxpayer may credit such excess  payment
15    against  tax  liability  subsequently  to  be remitted to the
16    Department under this Act,  the  Use  Tax  Act,  the  Service
17    Occupation  Tax Act or the Service Use Tax Act, in accordance
18    with reasonable  rules  and  regulations  prescribed  by  the
19    Department.   If  the Department subsequently determined that
20    all or any part of the credit taken was not actually  due  to
21    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
22    shall  be  reduced by 2.1% or 1.75% of the difference between
23    the credit taken and that actually  due,  and  that  taxpayer
24    shall   be   liable   for  penalties  and  interest  on  such
25    difference.
26        If a retailer of motor fuel is entitled to a credit under
27    Section 2d of this Act which exceeds the taxpayer's liability
28    to the Department under this Act  for  the  month  which  the
29    taxpayer  is  filing a return, the Department shall issue the
30    taxpayer a credit memorandum for the excess.
31        Beginning January 1,  1990,  each  month  the  Department
32    shall  pay into the Local Government Tax Fund, a special fund
33    in the State  treasury  which  is  hereby  created,  the  net
34    revenue  realized  for the preceding month from the 1% tax on
 
                           -75-                LRB9111995SMdv
 1    sales of food for human consumption which is to  be  consumed
 2    off  the  premises  where  it  is  sold (other than alcoholic
 3    beverages, soft drinks and food which has been  prepared  for
 4    immediate  consumption)  and prescription and nonprescription
 5    medicines,  drugs,  medical  appliances  and  insulin,  urine
 6    testing materials, syringes and needles used by diabetics.
 7        Beginning January 1,  1990,  each  month  the  Department
 8    shall  pay  into the County and Mass Transit District Fund, a
 9    special fund in the State treasury which is  hereby  created,
10    4%  of  the net revenue realized for the preceding month from
11    the 6.25% general rate.
12        Beginning January 1,  1990,  each  month  the  Department
13    shall  pay  into the Local Government Tax Fund 16% of the net
14    revenue realized for  the  preceding  month  from  the  6.25%
15    general  rate  on  the  selling  price  of  tangible personal
16    property.
17        Of the remainder of the moneys received by the Department
18    pursuant  to  this  Act  and  the  moneys  received  by   the
19    Department  from  the 80% of the 6.25% occupation tax imposed
20    in  Section  10  of  the  Qualified  Technological  Equipment
21    Leasing Occupation and Use Tax Act, (a) 1.75%  thereof  shall
22    be paid into the Build Illinois Fund and (b) prior to July 1,
23    1989,  2.2% and on and after July 1, 1989, 3.8% thereof shall
24    be paid into the Build Illinois Fund; provided, however, that
25    if in any fiscal year the sum of (1) the aggregate of 2.2% or
26    3.8%, as the case may be,  of  the  moneys  received  by  the
27    Department  and  required  to be paid into the Build Illinois
28    Fund pursuant to this Act, Section 9  of  the  Use  Tax  Act,
29    Section  9  of  the Service Use Tax Act, and Section 9 of the
30    Service Occupation  Tax  Act,  such  Acts  being  hereinafter
31    called  the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
32    the case may be, of moneys being hereinafter called the  "Tax
33    Act  Amount",  and  (2)  the  amount transferred to the Build
34    Illinois Fund from the State and Local Sales Tax Reform  Fund
 
                           -76-                LRB9111995SMdv
 1    shall   be   less   than  the  Annual  Specified  Amount  (as
 2    hereinafter defined), an amount equal to the difference shall
 3    be immediately paid into the Build Illinois Fund  from  other
 4    moneys  received  by the Department pursuant to the Tax Acts;
 5    the "Annual Specified Amount"  means  the  amounts  specified
 6    below for fiscal years 1986 through 1993:
 7             Fiscal Year              Annual Specified Amount
 8                 1986                       $54,800,000
 9                 1987                       $76,650,000
10                 1988                       $80,480,000
11                 1989                       $88,510,000
12                 1990                       $115,330,000
13                 1991                       $145,470,000
14                 1992                       $182,730,000
15                 1993                      $206,520,000;
16    and  means  the Certified Annual Debt Service Requirement (as
17    defined in Section 13 of the Build Illinois Bond Act) or  the
18    Tax  Act  Amount,  whichever is greater, for fiscal year 1994
19    and each fiscal year thereafter; and further  provided,  that
20    if  on  the last business day of any month the sum of (1) the
21    Tax Act Amount  required  to  be  deposited  into  the  Build
22    Illinois  Bond Account in the Build Illinois Fund during such
23    month and (2) the amount transferred to  the  Build  Illinois
24    Fund  from  the  State  and Local Sales Tax Reform Fund shall
25    have been less than 1/12 of the Annual Specified  Amount,  an
26    amount equal to the difference shall be immediately paid into
27    the  Build  Illinois  Fund  from other moneys received by the
28    Department pursuant to the Tax Acts; and,  further  provided,
29    that  in  no  event  shall  the  payments  required under the
30    preceding proviso result in aggregate payments into the Build
31    Illinois Fund pursuant to this clause (b) for any fiscal year
32    in excess of the greater of (i) the Tax Act  Amount  or  (ii)
33    the  Annual  Specified  Amount  for  such  fiscal  year.  The
34    amounts payable into the Build Illinois Fund under clause (b)
 
                           -77-                LRB9111995SMdv
 1    of the first sentence in this paragraph shall be payable only
 2    until such time as the aggregate amount on deposit under each
 3    trust  indenture  securing  Bonds  issued   and   outstanding
 4    pursuant to the Build Illinois Bond Act is sufficient, taking
 5    into  account any future investment income, to fully provide,
 6    in accordance with such indenture, for the defeasance  of  or
 7    the  payment  of  the  principal  of,  premium,  if  any, and
 8    interest on the Bonds secured by such indenture  and  on  any
 9    Bonds expected to be issued thereafter and all fees and costs
10    payable  with  respect  thereto,  all  as  certified  by  the
11    Director  of  the  Bureau  of  the  Budget.   If  on the last
12    business day of any month  in  which  Bonds  are  outstanding
13    pursuant  to  the  Build  Illinois Bond Act, the aggregate of
14    moneys deposited in the Build Illinois Bond  Account  in  the
15    Build  Illinois  Fund  in  such  month shall be less than the
16    amount required to be transferred  in  such  month  from  the
17    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
18    Retirement and Interest Fund pursuant to Section  13  of  the
19    Build  Illinois  Bond Act, an amount equal to such deficiency
20    shall be immediately paid from other moneys received  by  the
21    Department  pursuant  to  the  Tax Acts to the Build Illinois
22    Fund; provided, however, that any amounts paid to  the  Build
23    Illinois  Fund  in  any fiscal year pursuant to this sentence
24    shall be deemed to constitute payments pursuant to clause (b)
25    of the first sentence of this paragraph and shall reduce  the
26    amount  otherwise  payable  for  such fiscal year pursuant to
27    that clause (b).   The  moneys  received  by  the  Department
28    pursuant  to  this  Act and required to be deposited into the
29    Build Illinois Fund are subject  to  the  pledge,  claim  and
30    charge  set  forth  in  Section 12 of the Build Illinois Bond
31    Act.
32        Subject to payment of amounts  into  the  Build  Illinois
33    Fund  as  provided  in  the  preceding  paragraph  or  in any
34    amendment thereto hereafter enacted, the following  specified
 
                           -78-                LRB9111995SMdv
 1    monthly   installment   of   the   amount  requested  in  the
 2    certificate of the Chairman  of  the  Metropolitan  Pier  and
 3    Exposition  Authority  provided  under  Section  8.25f of the
 4    State Finance Act, but not in excess of  sums  designated  as
 5    "Total  Deposit",  shall  be  deposited in the aggregate from
 6    collections under Section 9 of the Use Tax Act, Section 9  of
 7    the  Service Use Tax Act, Section 9 of the Service Occupation
 8    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
 9    into  the  McCormick  Place  Expansion  Project  Fund  in the
10    specified fiscal years.
11             Fiscal Year                   Total Deposit
12                 1993                            $0
13                 1994                        53,000,000
14                 1995                        58,000,000
15                 1996                        61,000,000
16                 1997                        64,000,000
17                 1998                        68,000,000
18                 1999                        71,000,000
19                 2000                        75,000,000
20                 2001                        80,000,000
21                 2002                        84,000,000
22                 2003                        89,000,000
23                 2004                        93,000,000
24                 2005                        97,000,000
25                 2006                       102,000,000
26                 2007                       108,000,000
27                 2008                       115,000,000
28                 2009                       120,000,000
29                 2010                       126,000,000
30                 2011                       132,000,000
31                 2012                       138,000,000
32                 2013 and                   145,000,000
33        each fiscal year
34        thereafter that bonds
 
                           -79-                LRB9111995SMdv
 1        are outstanding under
 2        Section 13.2 of the
 3        Metropolitan Pier and
 4        Exposition Authority
 5        Act, but not after fiscal year 2029.
 6        Beginning July 20, 1993 and in each month of each  fiscal
 7    year  thereafter,  one-eighth  of the amount requested in the
 8    certificate of the Chairman  of  the  Metropolitan  Pier  and
 9    Exposition  Authority  for  that fiscal year, less the amount
10    deposited into the McCormick Place Expansion Project Fund  by
11    the  State Treasurer in the respective month under subsection
12    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
13    Authority  Act,  plus cumulative deficiencies in the deposits
14    required under this Section for previous  months  and  years,
15    shall be deposited into the McCormick Place Expansion Project
16    Fund,  until  the  full amount requested for the fiscal year,
17    but not in excess of the amount  specified  above  as  "Total
18    Deposit", has been deposited.
19        Subject  to  payment  of  amounts into the Build Illinois
20    Fund and the McCormick Place Expansion Project Fund  pursuant
21    to  the  preceding  paragraphs  or  in  any amendment thereto
22    hereafter enacted, each month the Department shall  pay  into
23    the  Local  Government  Distributive  Fund  0.4%  of  the net
24    revenue realized for the preceding month from the 5%  general
25    rate  or  0.4%  of  80%  of  the net revenue realized for the
26    preceding month from the 6.25% general rate, as the case  may
27    be,  on the selling price of tangible personal property which
28    amount shall, subject to  appropriation,  be  distributed  as
29    provided  in  Section 2 of the State Revenue Sharing Act.  No
30    payments or distributions pursuant to this paragraph shall be
31    made if the  tax  imposed  by  this  Act  on  photoprocessing
32    products  is  declared  unconstitutional,  or if the proceeds
33    from such tax are unavailable  for  distribution  because  of
34    litigation.
 
                           -80-                LRB9111995SMdv
 1        Subject  to  payment  of  amounts into the Build Illinois
 2    Fund, the McCormick Place Expansion Project to the  preceding
 3    paragraphs  or  in  any amendments thereto hereafter enacted,
 4    beginning July 1, 1993, the Department shall each  month  pay
 5    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
 6    revenue realized for  the  preceding  month  from  the  6.25%
 7    general  rate  on  the  selling  price  of  tangible personal
 8    property.
 9        Of the remainder of the moneys received by the Department
10    pursuant to this Act, 75% thereof  shall  be  paid  into  the
11    State Treasury and 25% shall be reserved in a special account
12    and  used  only for the transfer to the Common School Fund as
13    part of the monthly transfer from the General Revenue Fund in
14    accordance with Section 8a of the State Finance Act.
15        The Department may, upon separate  written  notice  to  a
16    taxpayer,  require  the taxpayer to prepare and file with the
17    Department on a form prescribed by the Department within  not
18    less  than  60  days  after  receipt  of the notice an annual
19    information return for the tax year specified in the  notice.
20    Such   annual  return  to  the  Department  shall  include  a
21    statement of gross receipts as shown by the  retailer's  last
22    Federal  income  tax  return.   If  the total receipts of the
23    business as reported in the Federal income tax return do  not
24    agree  with  the gross receipts reported to the Department of
25    Revenue for the same period, the retailer shall attach to his
26    annual return a schedule showing a reconciliation  of  the  2
27    amounts  and  the reasons for the difference.  The retailer's
28    annual return to the Department shall also disclose the  cost
29    of goods sold by the retailer during the year covered by such
30    return,  opening  and  closing  inventories of such goods for
31    such year, costs of goods used from stock or taken from stock
32    and given away by the  retailer  during  such  year,  payroll
33    information  of  the retailer's business during such year and
34    any additional reasonable information  which  the  Department
 
                           -81-                LRB9111995SMdv
 1    deems  would  be  helpful  in determining the accuracy of the
 2    monthly, quarterly or annual returns filed by  such  retailer
 3    as provided for in this Section.
 4        If the annual information return required by this Section
 5    is  not  filed  when  and  as required, the taxpayer shall be
 6    liable as follows:
 7             (i)  Until January 1, 1994, the  taxpayer  shall  be
 8        liable  for  a  penalty equal to 1/6 of 1% of the tax due
 9        from such taxpayer under this Act during the period to be
10        covered by the annual return for each month  or  fraction
11        of  a  month  until such return is filed as required, the
12        penalty to be assessed and collected in the  same  manner
13        as any other penalty provided for in this Act.
14             (ii)  On  and  after  January  1, 1994, the taxpayer
15        shall be liable for a penalty as described in Section 3-4
16        of the Uniform Penalty and Interest Act.
17        The chief executive officer, proprietor, owner or highest
18    ranking manager shall sign the annual return to  certify  the
19    accuracy  of  the information contained therein.   Any person
20    who willfully signs the annual  return  containing  false  or
21    inaccurate   information  shall  be  guilty  of  perjury  and
22    punished accordingly.  The annual return form  prescribed  by
23    the  Department  shall  include  a  warning  that  the person
24    signing the return may be liable for perjury.
25        The provisions of this Section concerning the  filing  of
26    an  annual  information return do not apply to a retailer who
27    is not required to file an income tax return with the  United
28    States Government.
29        As  soon  as  possible after the first day of each month,
30    upon  certification  of  the  Department  of   Revenue,   the
31    Comptroller  shall  order transferred and the Treasurer shall
32    transfer from the General Revenue Fund to the Motor Fuel  Tax
33    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
34    realized under this  Act  for  the  second  preceding  month.
 
                           -82-                LRB9111995SMdv
 1    Beginning  April 1, 2000, this transfer is no longer required
 2    and shall not be made.
 3        Net revenue realized for a month  shall  be  the  revenue
 4    collected  by the State pursuant to this Act, less the amount
 5    paid out during  that  month  as  refunds  to  taxpayers  for
 6    overpayment of liability.
 7        For  greater simplicity of administration, manufacturers,
 8    importers and wholesalers whose products are sold  at  retail
 9    in Illinois by numerous retailers, and who wish to do so, may
10    assume  the  responsibility  for accounting and paying to the
11    Department all tax accruing under this Act  with  respect  to
12    such  sales,  if  the  retailers who are affected do not make
13    written objection to the Department to this arrangement.
14        Any  person  who  promotes,  organizes,  provides  retail
15    selling space for concessionaires or other types  of  sellers
16    at the Illinois State Fair, DuQuoin State Fair, county fairs,
17    local  fairs, art shows, flea markets and similar exhibitions
18    or events, including any transient  merchant  as  defined  by
19    Section  2 of the Transient Merchant Act of 1987, is required
20    to file a report with the Department providing  the  name  of
21    the  merchant's  business,  the name of the person or persons
22    engaged in merchant's business,  the  permanent  address  and
23    Illinois  Retailers Occupation Tax Registration Number of the
24    merchant, the dates and  location  of  the  event  and  other
25    reasonable  information that the Department may require.  The
26    report must be filed not later than the 20th day of the month
27    next following the month during which the event  with  retail
28    sales  was  held.   Any  person  who  fails  to file a report
29    required by this Section commits a business  offense  and  is
30    subject to a fine not to exceed $250.
31        Any  person  engaged  in the business of selling tangible
32    personal property at retail as a concessionaire or other type
33    of seller at the  Illinois  State  Fair,  county  fairs,  art
34    shows, flea markets and similar exhibitions or events, or any
 
                           -83-                LRB9111995SMdv
 1    transient merchants, as defined by Section 2 of the Transient
 2    Merchant  Act of 1987, may be required to make a daily report
 3    of the amount of such sales to the Department and to  make  a
 4    daily  payment of the full amount of tax due.  The Department
 5    shall impose this requirement when it finds that there  is  a
 6    significant  risk  of loss of revenue to the State at such an
 7    exhibition or event.   Such  a  finding  shall  be  based  on
 8    evidence  that  a  substantial  number  of concessionaires or
 9    other sellers who are  not  residents  of  Illinois  will  be
10    engaging   in  the  business  of  selling  tangible  personal
11    property at retail at  the  exhibition  or  event,  or  other
12    evidence  of  a  significant  risk  of loss of revenue to the
13    State.  The Department shall notify concessionaires and other
14    sellers affected by the imposition of this  requirement.   In
15    the   absence   of   notification   by  the  Department,  the
16    concessionaires and other sellers shall file their returns as
17    otherwise required in this Section.
18    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
19    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
20    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

21        (35 ILCS 120/3.5 new)
22        Sec.  3.5. Refund; leaseback transaction.  A purchaser of
23    qualified technological equipment, as defined in Section 5 of
24    the Qualified Technological Equipment Leasing Occupation  and
25    Use  Tax Act, may obtain a refund of all tax paid to a seller
26    under  this  Act  or  any  other  tax  administered  by   the
27    Department  if  the  purchaser sells the property to a rentor
28    under a bona fide sale and  leaseback  transaction  (to  such
29    purchaser)  within 90 days of the first functional use of the
30    property.  The purchaser shall request the  refund  from  the
31    seller  to whom he or she has paid the tax in the same manner
32    and  subject  to  the  same  requirements  as  other  refunds
33    provided in Section 3 of this  Act.   For  purposes  of  this
 
                           -84-                LRB9111995SMdv
 1    Section,  the  first  functional use of property shall be the
 2    use for which the property is intended, which shall,  in  the
 3    absence  of  other  evidence,  be  presumed to be the date of
 4    delivery of the property.

 5        Section 999.  Effective  date.   This  Act  takes  effect
 6    January 1, 2001.
 
                           -85-                LRB9111995SMdv
 1                                INDEX
 2               Statutes amended in order of appearance
 3    30 ILCS 115/1             from Ch. 85, par. 611
 4    35 ILCS 105/3-5           from Ch. 120, par. 439.3-5
 5    35 ILCS 105/9             from Ch. 120, par. 439.9
 6    35 ILCS 105/9.5 new
 7    35 ILCS 110/3-5           from Ch. 120, par. 439.33-5
 8    35 ILCS 115/3-5           from Ch. 120, par. 439.103-5
 9    35 ILCS 120/1c-5 new
10    35 ILCS 120/2-5           from Ch. 120, par. 441-5
11    35 ILCS 120/3             from Ch. 120, par. 442
12    35 ILCS 120/3.5 new

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