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92_HB2441
LRB9203211SMdvA
1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 3. The Department of Natural Resources
5 (Conservation) Law of the Civil Administrative Code of
6 Illinois is amended by adding Section 805-45 as follows:
7 (20 ILCS 805/805-45 new)
8 Sec. 805-45. Weatherization and heat conservation loans
9 and grants. Subject to appropriation, the Department shall
10 administer a program in which the Department provides loans
11 and grants in the amount of 90% of the costs of
12 weatherization and heat conservation projects. The other 10%
13 of the funding must come from local funding. Weatherization
14 and heat conservation projects eligible for the program
15 consist of the installation of fuel efficient furnaces, water
16 heaters, insulation, energy efficient windows, storm doors,
17 caulking, and renewable or alternative sources of energy.
18 Entities eligible for the loans and grants are
19 municipalities, public and parochial schools, hospitals,
20 churches, and other nonprofit organizations.
21 Section 5. The State Revenue Sharing Act is amended by
22 changing Section 1 as follows:
23 (30 ILCS 115/1) (from Ch. 85, par. 611)
24 Sec. 1. Local Government Distributive Fund. Through June
25 30, 1994, as soon as may be after the first day of each month
26 the Department of Revenue shall certify to the Treasurer an
27 amount equal to 1/12 of the net revenue realized from the tax
28 imposed by subsections (a) and (b) of Section 201 of the
29 Illinois Income Tax Act during the preceding month.
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1 Beginning July 1, 1994, and continuing through June 30, 1995,
2 as soon as may be after the first day of each month, the
3 Department of Revenue shall certify to the Treasurer an
4 amount equal to 1/11 of the net revenue realized from the tax
5 imposed by subsections (a) and (b) of Section 201 of the
6 Illinois Income Tax Act during the preceding month. Beginning
7 July 1, 1995, and continuing through June 30, 2001, as soon
8 as may be after the first day of each month, the Department
9 of Revenue shall certify to the Treasurer an amount equal to
10 1/10 of the net revenue realized from the tax imposed by
11 subsections (a) and (b) of Section 201 of the Illinois Income
12 Tax Act during the preceding month. Beginning July 1, 2001,
13 as soon as may be after the first day of each month, the
14 Department of Revenue shall certify to the Treasurer an
15 amount equal to 1/9 of the net revenue realized from the tax
16 imposed by subsections (a) and (b) of Section 201 of the
17 Illinois Income Tax Act during the preceding month. Net
18 revenue realized for a month shall be defined as the revenue
19 from the tax imposed by subsections (a) and (b) of Section
20 201 of the Illinois Income Tax Act which is deposited in the
21 General Revenue Fund, the Education Assistance Fund and the
22 Income Tax Surcharge Local Government Distributive Fund
23 during the month minus the amount paid out of the General
24 Revenue Fund in State warrants during that same month as
25 refunds to taxpayers for overpayment of liability under the
26 tax imposed by subsections (a) and (b) of Section 201 of the
27 Illinois Income Tax Act. Upon receipt of such certification,
28 the Treasurer shall transfer from the General Revenue Fund to
29 a special fund in the State treasury, to be known as the
30 "Local Government Distributive Fund", the amount shown on
31 such certification.
32 All amounts paid into the Local Government Distributive
33 Fund in accordance with this Section and allocated pursuant
34 to this Act are appropriated on a continuing basis.
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1 (Source: P.A. 88-89.)
2 Section 7. The Illinois Procurement Code is amended by
3 adding Section 45-70 as follows:
4 (30 ILCS 500/45-70 new)
5 Sec. 45-70. Energy-efficient design. All new State
6 facilities shall include, if practical, the most modern
7 energy-efficient design, including active and passive solar
8 heating, as those terms are defined by the Department of
9 Natural Resources.
10 Section 10. The Illinois Income Tax Act is amended by
11 changing Section 901 and adding Section 213 as follows:
12 (35 ILCS 5/213 new)
13 Sec. 213. Weatherization and heat conservation tax
14 credit. Beginning with taxable years ending on or after
15 December 31, 2001 and ending with taxable years ending on or
16 before December 30, 2006, each taxpayer is entitled to a
17 credit against the tax imposed by subsections (a) and (b) of
18 Section 201 in the amount of 10% of the amount spent by the
19 taxpayer in a taxable year for weatherization and heat
20 conservation measures, including the installation of
21 fuel-efficient furnaces, water heaters, insulation,
22 energy-efficient windows, storm doors, caulking, and
23 renewable or alternative sources of energy. The tax credit
24 may not reduce the taxpayer's liability to less than zero and
25 may not be carried forward to a subsequent taxable year.
26 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
27 Sec. 901. Collection Authority.
28 (a) In general.
29 The Department shall collect the taxes imposed by this
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1 Act. The Department shall collect certified past due child
2 support amounts under Section 2505-650 of the Department of
3 Revenue Law (20 ILCS 2505/2505-650). Except as provided in
4 subsections (c) and (e) of this Section, money collected
5 pursuant to subsections (a) and (b) of Section 201 of this
6 Act shall be paid into the General Revenue Fund in the State
7 treasury; money collected pursuant to subsections (c) and (d)
8 of Section 201 of this Act shall be paid into the Personal
9 Property Tax Replacement Fund, a special fund in the State
10 Treasury; and money collected under Section 2505-650 of the
11 Department of Revenue Law (20 ILCS 2505/2505-650) shall be
12 paid into the Child Support Enforcement Trust Fund, a special
13 fund outside the State Treasury, or to the State Disbursement
14 Unit established under Section 10-26 of the Illinois Public
15 Aid Code, as directed by the Department of Public Aid.
16 (b) Local Governmental Distributive Fund.
17 Beginning August 1, 1969, and continuing through June 30,
18 1994, the Treasurer shall transfer each month from the
19 General Revenue Fund to a special fund in the State treasury,
20 to be known as the "Local Government Distributive Fund", an
21 amount equal to 1/12 of the net revenue realized from the tax
22 imposed by subsections (a) and (b) of Section 201 of this Act
23 during the preceding month. Beginning July 1, 1994, and
24 continuing through June 30, 1995, the Treasurer shall
25 transfer each month from the General Revenue Fund to the
26 Local Government Distributive Fund an amount equal to 1/11 of
27 the net revenue realized from the tax imposed by subsections
28 (a) and (b) of Section 201 of this Act during the preceding
29 month. Beginning July 1, 1995, and continuing through June
30 30, 2001, the Treasurer shall transfer each month from the
31 General Revenue Fund to the Local Government Distributive
32 Fund an amount equal to 1/10 of the net revenue realized from
33 the tax imposed by subsections (a) and (b) of Section 201 of
34 the Illinois Income Tax Act during the preceding month.
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1 Beginning July 1, 2001, the Treasurer shall transfer each
2 month from the General Revenue Fund to the Local Government
3 Distributive Fund an amount equal to 1/9 of the net revenue
4 realized from the tax imposed by subsections (a) and (b) of
5 Section 201 of this Act during the preceding month. Net
6 revenue realized for a month shall be defined as the revenue
7 from the tax imposed by subsections (a) and (b) of Section
8 201 of this Act which is deposited in the General Revenue
9 Fund, the Educational Assistance Fund and the Income Tax
10 Surcharge Local Government Distributive Fund during the month
11 minus the amount paid out of the General Revenue Fund in
12 State warrants during that same month as refunds to taxpayers
13 for overpayment of liability under the tax imposed by
14 subsections (a) and (b) of Section 201 of this Act.
15 (c) Deposits Into Income Tax Refund Fund.
16 (1) Beginning on January 1, 1989 and thereafter,
17 the Department shall deposit a percentage of the amounts
18 collected pursuant to subsections (a) and (b)(1), (2),
19 and (3), of Section 201 of this Act into a fund in the
20 State treasury known as the Income Tax Refund Fund. The
21 Department shall deposit 6% of such amounts during the
22 period beginning January 1, 1989 and ending on June 30,
23 1989. Beginning with State fiscal year 1990 and for each
24 fiscal year thereafter, the percentage deposited into the
25 Income Tax Refund Fund during a fiscal year shall be the
26 Annual Percentage. For fiscal years 1999 through 2001,
27 the Annual Percentage shall be 7.1%. For all other
28 fiscal years, the Annual Percentage shall be calculated
29 as a fraction, the numerator of which shall be the amount
30 of refunds approved for payment by the Department during
31 the preceding fiscal year as a result of overpayment of
32 tax liability under subsections (a) and (b)(1), (2), and
33 (3) of Section 201 of this Act plus the amount of such
34 refunds remaining approved but unpaid at the end of the
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1 preceding fiscal year, the denominator of which shall be
2 the amounts which will be collected pursuant to
3 subsections (a) and (b)(1), (2), and (3) of Section 201
4 of this Act during the preceding fiscal year. The
5 Director of Revenue shall certify the Annual Percentage
6 to the Comptroller on the last business day of the fiscal
7 year immediately preceding the fiscal year for which it
8 is to be effective.
9 (2) Beginning on January 1, 1989 and thereafter,
10 the Department shall deposit a percentage of the amounts
11 collected pursuant to subsections (a) and (b)(6), (7),
12 and (8), (c) and (d) of Section 201 of this Act into a
13 fund in the State treasury known as the Income Tax Refund
14 Fund. The Department shall deposit 18% of such amounts
15 during the period beginning January 1, 1989 and ending on
16 June 30, 1989. Beginning with State fiscal year 1990 and
17 for each fiscal year thereafter, the percentage deposited
18 into the Income Tax Refund Fund during a fiscal year
19 shall be the Annual Percentage. For fiscal years 1999,
20 2000, and 2001, the Annual Percentage shall be 19%. For
21 all other fiscal years, the Annual Percentage shall be
22 calculated as a fraction, the numerator of which shall be
23 the amount of refunds approved for payment by the
24 Department during the preceding fiscal year as a result
25 of overpayment of tax liability under subsections (a) and
26 (b)(6), (7), and (8), (c) and (d) of Section 201 of this
27 Act plus the amount of such refunds remaining approved
28 but unpaid at the end of the preceding fiscal year, the
29 denominator of which shall be the amounts which will be
30 collected pursuant to subsections (a) and (b)(6), (7),
31 and (8), (c) and (d) of Section 201 of this Act during
32 the preceding fiscal year. The Director of Revenue shall
33 certify the Annual Percentage to the Comptroller on the
34 last business day of the fiscal year immediately
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1 preceding the fiscal year for which it is to be
2 effective.
3 (3) The Comptroller shall order transferred and the
4 Treasurer shall transfer from the Tobacco Settlement
5 Recovery Fund to the Income Tax Refund Fund (i)
6 $35,000,000 in January, 2001, (ii) $35,000,000 in
7 January, 2002, and (iii) $35,000,000 in January, 2003.
8 (d) Expenditures from Income Tax Refund Fund.
9 (1) Beginning January 1, 1989, money in the Income
10 Tax Refund Fund shall be expended exclusively for the
11 purpose of paying refunds resulting from overpayment of
12 tax liability under Section 201 of this Act, for paying
13 rebates under Section 208.1 in the event that the amounts
14 in the Homeowners' Tax Relief Fund are insufficient for
15 that purpose, and for making transfers pursuant to this
16 subsection (d).
17 (2) The Director shall order payment of refunds
18 resulting from overpayment of tax liability under Section
19 201 of this Act from the Income Tax Refund Fund only to
20 the extent that amounts collected pursuant to Section 201
21 of this Act and transfers pursuant to this subsection (d)
22 and item (3) of subsection (c) have been deposited and
23 retained in the Fund.
24 (3) As soon as possible after the end of each
25 fiscal year, the Director shall order transferred and the
26 State Treasurer and State Comptroller shall transfer from
27 the Income Tax Refund Fund to the Personal Property Tax
28 Replacement Fund an amount, certified by the Director to
29 the Comptroller, equal to the excess of the amount
30 collected pursuant to subsections (c) and (d) of Section
31 201 of this Act deposited into the Income Tax Refund Fund
32 during the fiscal year over the amount of refunds
33 resulting from overpayment of tax liability under
34 subsections (c) and (d) of Section 201 of this Act paid
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1 from the Income Tax Refund Fund during the fiscal year.
2 (4) As soon as possible after the end of each
3 fiscal year, the Director shall order transferred and the
4 State Treasurer and State Comptroller shall transfer from
5 the Personal Property Tax Replacement Fund to the Income
6 Tax Refund Fund an amount, certified by the Director to
7 the Comptroller, equal to the excess of the amount of
8 refunds resulting from overpayment of tax liability under
9 subsections (c) and (d) of Section 201 of this Act paid
10 from the Income Tax Refund Fund during the fiscal year
11 over the amount collected pursuant to subsections (c) and
12 (d) of Section 201 of this Act deposited into the Income
13 Tax Refund Fund during the fiscal year.
14 (4.5) As soon as possible after the end of fiscal
15 year 1999 and of each fiscal year thereafter, the
16 Director shall order transferred and the State Treasurer
17 and State Comptroller shall transfer from the Income Tax
18 Refund Fund to the General Revenue Fund any surplus
19 remaining in the Income Tax Refund Fund as of the end of
20 such fiscal year; excluding for fiscal years 2000, 2001,
21 and 2002 amounts attributable to transfers under item (3)
22 of subsection (c) less refunds resulting from the earned
23 income tax credit.
24 (5) This Act shall constitute an irrevocable and
25 continuing appropriation from the Income Tax Refund Fund
26 for the purpose of paying refunds upon the order of the
27 Director in accordance with the provisions of this
28 Section.
29 (e) Deposits into the Education Assistance Fund and the
30 Income Tax Surcharge Local Government Distributive Fund.
31 On July 1, 1991, and thereafter, of the amounts collected
32 pursuant to subsections (a) and (b) of Section 201 of this
33 Act, minus deposits into the Income Tax Refund Fund, the
34 Department shall deposit 7.3% into the Education Assistance
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1 Fund in the State Treasury. Beginning July 1, 1991, and
2 continuing through January 31, 1993, of the amounts collected
3 pursuant to subsections (a) and (b) of Section 201 of the
4 Illinois Income Tax Act, minus deposits into the Income Tax
5 Refund Fund, the Department shall deposit 3.0% into the
6 Income Tax Surcharge Local Government Distributive Fund in
7 the State Treasury. Beginning February 1, 1993 and
8 continuing through June 30, 1993, of the amounts collected
9 pursuant to subsections (a) and (b) of Section 201 of the
10 Illinois Income Tax Act, minus deposits into the Income Tax
11 Refund Fund, the Department shall deposit 4.4% into the
12 Income Tax Surcharge Local Government Distributive Fund in
13 the State Treasury. Beginning July 1, 1993, and continuing
14 through June 30, 1994, of the amounts collected under
15 subsections (a) and (b) of Section 201 of this Act, minus
16 deposits into the Income Tax Refund Fund, the Department
17 shall deposit 1.475% into the Income Tax Surcharge Local
18 Government Distributive Fund in the State Treasury.
19 (Source: P.A. 90-613, eff. 7-9-98; 90-655, eff. 7-30-98;
20 91-212, eff. 7-20-99; 91-239, eff. 1-1-00; 91-700, eff.
21 5-11-00; 91-704, eff. 7-1-00; 91-712, eff. 7-1-00; revised
22 6-28-00.)
23 Section 15. The Use Tax Act is amended by changing
24 Section 3-5 as follows:
25 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
26 Sec. 3-5. Exemptions. Use of the following tangible
27 personal property is exempt from the tax imposed by this Act:
28 (1) Personal property purchased from a corporation,
29 society, association, foundation, institution, or
30 organization, other than a limited liability company, that is
31 organized and operated as a not-for-profit service enterprise
32 for the benefit of persons 65 years of age or older if the
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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 not-for-profit
4 Illinois county fair association for use in conducting,
5 operating, or 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) Personal property purchased by a governmental body,
18 by a corporation, society, association, foundation, or
19 institution organized and operated exclusively for
20 charitable, religious, or educational purposes, or by a
21 not-for-profit corporation, society, association, foundation,
22 institution, or organization that has no compensated officers
23 or employees and that is organized and operated primarily for
24 the recreation of persons 55 years of age or older. A limited
25 liability company may qualify for the exemption under this
26 paragraph only if the limited liability company is organized
27 and operated exclusively for educational purposes. On and
28 after July 1, 1987, however, no entity otherwise eligible for
29 this exemption shall make tax-free purchases unless it has an
30 active exemption identification number issued by the
31 Department.
32 (5) A passenger car that is a replacement vehicle to the
33 extent that the purchase price of the car is subject to the
34 Replacement Vehicle Tax.
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1 (6) Graphic arts machinery and equipment, including
2 repair and replacement parts, both new and used, and
3 including that manufactured on special order, certified by
4 the purchaser to be used primarily for graphic arts
5 production, and including machinery and equipment purchased
6 for lease.
7 (7) Farm chemicals.
8 (8) Legal tender, currency, medallions, or gold or
9 silver coinage issued by the State of Illinois, the
10 government of the United States of America, or the government
11 of any foreign country, and bullion.
12 (9) Personal property purchased from a teacher-sponsored
13 student organization affiliated with an elementary or
14 secondary school located in Illinois.
15 (10) A motor vehicle of the first division, a motor
16 vehicle of the second division that is a self-contained motor
17 vehicle designed or permanently converted to provide living
18 quarters for recreational, camping, or travel use, with
19 direct walk through to the living quarters from the driver's
20 seat, or a motor vehicle of the second division that is of
21 the van configuration designed for the transportation of not
22 less than 7 nor more than 16 passengers, as defined in
23 Section 1-146 of the Illinois Vehicle Code, that is used for
24 automobile renting, as defined in the Automobile Renting
25 Occupation and Use Tax Act.
26 (11) Farm machinery and equipment, both new and used,
27 including that manufactured on special order, certified by
28 the purchaser to be used primarily for production agriculture
29 or State or federal agricultural programs, including
30 individual replacement parts for the machinery and equipment,
31 including machinery and equipment purchased for lease, and
32 including implements of husbandry defined in Section 1-130 of
33 the Illinois Vehicle Code, farm machinery and agricultural
34 chemical and fertilizer spreaders, and nurse wagons required
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1 to be registered under Section 3-809 of the Illinois Vehicle
2 Code, but excluding other motor vehicles required to be
3 registered under the Illinois Vehicle Code. Horticultural
4 polyhouses or hoop houses used for propagating, growing, or
5 overwintering plants shall be considered farm machinery and
6 equipment under this item (11). Agricultural chemical tender
7 tanks and dry boxes shall include units sold separately from
8 a motor vehicle required to be licensed and units sold
9 mounted on a motor vehicle required to be licensed if the
10 selling price of the tender is separately stated.
11 Farm machinery and equipment shall include precision
12 farming equipment that is installed or purchased to be
13 installed on farm machinery and equipment including, but not
14 limited to, tractors, harvesters, sprayers, planters,
15 seeders, or spreaders. Precision farming equipment includes,
16 but is not limited to, soil testing sensors, computers,
17 monitors, software, global positioning and mapping systems,
18 and other such equipment.
19 Farm machinery and equipment also includes computers,
20 sensors, software, and related equipment used primarily in
21 the computer-assisted operation of production agriculture
22 facilities, equipment, and activities such as, but not
23 limited to, the collection, monitoring, and correlation of
24 animal and crop data for the purpose of formulating animal
25 diets and agricultural chemicals. This item (11) is exempt
26 from the provisions of Section 3-90.
27 (12) Fuel and petroleum products sold to or used by an
28 air common carrier, certified by the carrier to be used for
29 consumption, shipment, or storage in the conduct of its
30 business as an air common carrier, for a flight destined for
31 or returning from a location or locations outside the United
32 States without regard to previous or subsequent domestic
33 stopovers.
34 (13) Proceeds of mandatory service charges separately
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1 stated on customers' bills for the purchase and consumption
2 of food and beverages purchased at retail from a retailer, to
3 the extent that the proceeds of the service charge are in
4 fact turned over as tips or as a substitute for tips to the
5 employees who participate directly in preparing, serving,
6 hosting or cleaning up the food or beverage function with
7 respect to which the service charge is imposed.
8 (14) Oil field exploration, drilling, and production
9 equipment, including (i) rigs and parts of rigs, rotary rigs,
10 cable tool rigs, and workover rigs, (ii) pipe and tubular
11 goods, including casing and drill strings, (iii) pumps and
12 pump-jack units, (iv) storage tanks and flow lines, (v) any
13 individual replacement part for oil field exploration,
14 drilling, and production equipment, and (vi) machinery and
15 equipment purchased for lease; but excluding motor vehicles
16 required to be registered under the Illinois Vehicle Code.
17 (15) Photoprocessing machinery and equipment, including
18 repair and replacement parts, both new and used, including
19 that manufactured on special order, certified by the
20 purchaser to be used primarily for photoprocessing, and
21 including photoprocessing machinery and equipment purchased
22 for lease.
23 (16) Coal exploration, mining, offhighway hauling,
24 processing, maintenance, and reclamation equipment, including
25 replacement parts and equipment, and including equipment
26 purchased for lease, but excluding motor vehicles required to
27 be registered under the Illinois Vehicle Code.
28 (17) Distillation machinery and equipment, sold as a
29 unit or kit, assembled or installed by the retailer,
30 certified by the user to be used only for the production of
31 ethyl alcohol that will be used for consumption as motor fuel
32 or as a component of motor fuel for the personal use of the
33 user, and not subject to sale or resale.
34 (18) Manufacturing and assembling machinery and
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1 equipment used primarily in the process of manufacturing or
2 assembling tangible personal property for wholesale or retail
3 sale or lease, whether that sale or lease is made directly by
4 the manufacturer or by some other person, whether the
5 materials used in the process are owned by the manufacturer
6 or some other person, or whether that sale or lease is made
7 apart from or as an incident to the seller's engaging in the
8 service occupation of producing machines, tools, dies, jigs,
9 patterns, gauges, or other similar items of no commercial
10 value on special order for a particular purchaser.
11 (19) Personal property delivered to a purchaser or
12 purchaser's donee inside Illinois when the purchase order for
13 that personal property was received by a florist located
14 outside Illinois who has a florist located inside Illinois
15 deliver the personal property.
16 (20) Semen used for artificial insemination of livestock
17 for direct agricultural production.
18 (21) Horses, or interests in horses, registered with and
19 meeting the requirements of any of the Arabian Horse Club
20 Registry of America, Appaloosa Horse Club, American Quarter
21 Horse Association, United States Trotting Association, or
22 Jockey Club, as appropriate, used for purposes of breeding or
23 racing for prizes.
24 (22) Computers and communications equipment utilized for
25 any hospital purpose and equipment used in the diagnosis,
26 analysis, or treatment of hospital patients purchased by a
27 lessor who leases the equipment, under a lease of one year or
28 longer executed or in effect at the time the lessor would
29 otherwise be subject to the tax imposed by this Act, to a
30 hospital that has been issued an active tax exemption
31 identification number by the Department under Section 1g of
32 the Retailers' Occupation Tax Act. If the equipment is
33 leased in a manner that does not qualify for this exemption
34 or is used in any other non-exempt manner, the lessor shall
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1 be liable for the tax imposed under this Act or the Service
2 Use Tax Act, as the case may be, based on the fair market
3 value of the property at the time the non-qualifying use
4 occurs. No lessor shall collect or attempt to collect an
5 amount (however designated) that purports to reimburse that
6 lessor for the tax imposed by this Act or the Service Use Tax
7 Act, as the case may be, if the tax has not been paid by the
8 lessor. If a lessor improperly collects any such amount from
9 the lessee, the lessee shall have a legal right to claim a
10 refund of that amount from the lessor. If, however, that
11 amount is not refunded to the lessee for any reason, the
12 lessor is liable to pay that amount to the Department.
13 (23) Personal property purchased by a lessor who leases
14 the property, under a lease of one year or longer executed
15 or in effect at the time the lessor would otherwise be
16 subject to the tax imposed by this Act, to a governmental
17 body that has been issued an active sales tax exemption
18 identification number by the Department under Section 1g of
19 the Retailers' Occupation Tax Act. If the property is leased
20 in a manner that does not qualify for this exemption or used
21 in any other non-exempt manner, the lessor shall be liable
22 for the tax imposed under this Act or the Service Use Tax
23 Act, as the case may be, based on the fair market value of
24 the property at the time the non-qualifying use occurs. No
25 lessor shall collect or attempt to collect an amount (however
26 designated) that purports to reimburse that lessor for the
27 tax imposed by this Act or the Service Use Tax Act, as the
28 case may be, if the tax has not been paid by the lessor. If
29 a lessor improperly collects any such amount from the lessee,
30 the lessee shall have a legal right to claim a refund of that
31 amount from the lessor. If, however, that amount is not
32 refunded to the lessee for any reason, the lessor is liable
33 to pay that amount to the Department.
34 (24) Beginning with taxable years ending on or after
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1 December 31, 1995 and ending with taxable years ending on or
2 before December 31, 2004, personal property that is donated
3 for disaster relief to be used in a State or federally
4 declared disaster area in Illinois or bordering Illinois by a
5 manufacturer or retailer that is registered in this State to
6 a corporation, society, association, foundation, or
7 institution that has been issued a sales tax exemption
8 identification number by the Department that assists victims
9 of the disaster who reside within the declared disaster area.
10 (25) Beginning with taxable years ending on or after
11 December 31, 1995 and ending with taxable years ending on or
12 before December 31, 2004, personal property that is used in
13 the performance of infrastructure repairs in this State,
14 including but not limited to municipal roads and streets,
15 access roads, bridges, sidewalks, waste disposal systems,
16 water and sewer line extensions, water distribution and
17 purification facilities, storm water drainage and retention
18 facilities, and sewage treatment facilities, resulting from a
19 State or federally declared disaster in Illinois or bordering
20 Illinois when such repairs are initiated on facilities
21 located in the declared disaster area within 6 months after
22 the disaster.
23 (26) Beginning July 1, 1999, game or game birds
24 purchased at a "game breeding and hunting preserve area" or
25 an "exotic game hunting area" as those terms are used in the
26 Wildlife Code or at a hunting enclosure approved through
27 rules adopted by the Department of Natural Resources. This
28 paragraph is exempt from the provisions of Section 3-90.
29 (27) A motor vehicle, as that term is defined in Section
30 1-146 of the Illinois Vehicle Code, that is donated to a
31 corporation, limited liability company, society, association,
32 foundation, or institution that is determined by the
33 Department to be organized and operated exclusively for
34 educational purposes. For purposes of this exemption, "a
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1 corporation, limited liability company, society, association,
2 foundation, or institution organized and operated exclusively
3 for educational purposes" means all tax-supported public
4 schools, private schools that offer systematic instruction in
5 useful branches of learning by methods common to public
6 schools and that compare favorably in their scope and
7 intensity with the course of study presented in tax-supported
8 schools, and vocational or technical schools or institutes
9 organized and operated exclusively to provide a course of
10 study of not less than 6 weeks duration and designed to
11 prepare individuals to follow a trade or to pursue a manual,
12 technical, mechanical, industrial, business, or commercial
13 occupation.
14 (28) Beginning January 1, 2000, personal property,
15 including food, purchased through fundraising events for the
16 benefit of a public or private elementary or secondary
17 school, a group of those schools, or one or more school
18 districts if the events are sponsored by an entity recognized
19 by the school district that consists primarily of volunteers
20 and includes parents and teachers of the school children.
21 This paragraph does not apply to fundraising events (i) for
22 the benefit of private home instruction or (ii) for which the
23 fundraising entity purchases the personal property sold at
24 the events from another individual or entity that sold the
25 property for the purpose of resale by the fundraising entity
26 and that profits from the sale to the fundraising entity.
27 This paragraph is exempt from the provisions of Section 3-90.
28 (29) Beginning January 1, 2000, new or used automatic
29 vending machines that prepare and serve hot food and
30 beverages, including coffee, soup, and other items, and
31 replacement parts for these machines. This paragraph is
32 exempt from the provisions of Section 3-90.
33 (30) Food for human consumption that is to be consumed
34 off the premises where it is sold (other than alcoholic
-18- LRB9203211SMdvA
1 beverages, soft drinks, and food that has been prepared for
2 immediate consumption) and prescription and nonprescription
3 medicines, drugs, medical appliances, and insulin, urine
4 testing materials, syringes, and needles used by diabetics,
5 for human use, when purchased for use by a person receiving
6 medical assistance under Article 5 of the Illinois Public Aid
7 Code who resides in a licensed long-term care facility, as
8 defined in the Nursing Home Care Act.
9 (31) Beginning in 2001, propane and home heating oil
10 sold to residential customers on or after December 1 and
11 continuing through March 31 of the next year. This paragraph
12 is exempt from the provisions of Section 3-90.
13 (32) Beginning in 2002, for bills issued on or after
14 January 1 and through April 30 each year, natural gas
15 distributed, supplied, furnished, or sold to residential
16 customers. This paragraph is exempt from the provisions of
17 Section 3-90.
18 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
19 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
20 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
21 eff. 8-20-99; 91-901, eff. 1-1-01.)
22 Section 20. 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
32 personal property was not purchased by the enterprise for the
-19- LRB9203211SMdvA
1 purpose of resale by the enterprise.
2 (2) Personal property purchased by a non-profit Illinois
3 county fair association for use in conducting, operating, or
4 promoting the county fair.
5 (3) Personal property purchased by a not-for-profit arts
6 or cultural organization that establishes, by proof required
7 by the Department by rule, that it has received an exemption
8 under Section 501(c)(3) of the Internal Revenue Code and that
9 is organized and operated for the presentation or support of
10 arts or cultural programming, activities, or services. These
11 organizations include, but are not limited to, music and
12 dramatic arts organizations such as symphony orchestras and
13 theatrical groups, arts and cultural service organizations,
14 local arts councils, visual arts organizations, and media
15 arts organizations.
16 (4) Legal tender, currency, medallions, or gold or
17 silver coinage issued by the State of Illinois, the
18 government of the United States of America, or the government
19 of any foreign country, and bullion.
20 (5) Graphic arts machinery and equipment, including
21 repair and replacement parts, both new and used, and
22 including that manufactured on special order or purchased for
23 lease, certified by the purchaser to be used primarily for
24 graphic arts production.
25 (6) Personal property purchased from a teacher-sponsored
26 student organization affiliated with an elementary or
27 secondary school located in Illinois.
28 (7) Farm machinery and equipment, both new and used,
29 including that manufactured on special order, certified by
30 the purchaser to be used primarily for production agriculture
31 or State or federal agricultural programs, including
32 individual replacement parts for the machinery and equipment,
33 including machinery and equipment purchased for lease, and
34 including implements of husbandry defined in Section 1-130 of
-20- LRB9203211SMdvA
1 the Illinois Vehicle Code, farm machinery and agricultural
2 chemical and fertilizer spreaders, and nurse wagons required
3 to be registered under Section 3-809 of the Illinois Vehicle
4 Code, but excluding other motor vehicles required to be
5 registered under the Illinois Vehicle Code. Horticultural
6 polyhouses or hoop houses used for propagating, growing, or
7 overwintering plants shall be considered farm machinery and
8 equipment under this item (7). Agricultural chemical tender
9 tanks and dry boxes shall include units sold separately from
10 a motor vehicle required to be licensed and units sold
11 mounted on a motor vehicle required to be licensed if the
12 selling price of the tender is separately stated.
13 Farm machinery and equipment shall include precision
14 farming equipment that is installed or purchased to be
15 installed on farm machinery and equipment including, but not
16 limited to, tractors, harvesters, sprayers, planters,
17 seeders, or spreaders. Precision farming equipment includes,
18 but is not limited to, soil testing sensors, computers,
19 monitors, software, global positioning and mapping systems,
20 and other such equipment.
21 Farm machinery and equipment also includes computers,
22 sensors, software, and related equipment used primarily in
23 the computer-assisted operation of production agriculture
24 facilities, equipment, and activities such as, but not
25 limited to, the collection, monitoring, and correlation of
26 animal and crop data for the purpose of formulating animal
27 diets and agricultural chemicals. This item (7) is exempt
28 from the provisions of Section 3-75.
29 (8) Fuel and petroleum products sold to or used by an
30 air common carrier, certified by the carrier to be used for
31 consumption, shipment, or storage in the conduct of its
32 business as an air common carrier, for a flight destined for
33 or returning from a location or locations outside the United
34 States without regard to previous or subsequent domestic
-21- LRB9203211SMdvA
1 stopovers.
2 (9) Proceeds of mandatory service charges separately
3 stated on customers' bills for the purchase and consumption
4 of food and beverages acquired as an incident to the purchase
5 of a service from a serviceman, to the extent that the
6 proceeds of the service charge are in fact turned over as
7 tips or as a substitute for tips to the employees who
8 participate directly in preparing, serving, hosting or
9 cleaning up the food or beverage function with respect to
10 which the service charge is imposed.
11 (10) Oil field exploration, drilling, and production
12 equipment, including (i) rigs and parts of rigs, rotary rigs,
13 cable tool rigs, and workover rigs, (ii) pipe and tubular
14 goods, including casing and drill strings, (iii) pumps and
15 pump-jack units, (iv) storage tanks and flow lines, (v) any
16 individual replacement part for oil field exploration,
17 drilling, and production equipment, and (vi) machinery and
18 equipment purchased for lease; but excluding motor vehicles
19 required to be registered under the Illinois Vehicle Code.
20 (11) Proceeds from the sale of photoprocessing machinery
21 and equipment, including repair and replacement parts, both
22 new and used, including that manufactured on special order,
23 certified by the purchaser to be used primarily for
24 photoprocessing, and including photoprocessing machinery and
25 equipment purchased for lease.
26 (12) Coal exploration, mining, offhighway hauling,
27 processing, maintenance, and reclamation equipment, including
28 replacement parts and equipment, and including equipment
29 purchased for lease, but excluding motor vehicles required to
30 be registered under the Illinois Vehicle Code.
31 (13) Semen used for artificial insemination of livestock
32 for direct agricultural production.
33 (14) Horses, or interests in horses, registered with and
34 meeting the requirements of any of the Arabian Horse Club
-22- LRB9203211SMdvA
1 Registry of America, Appaloosa Horse Club, American Quarter
2 Horse Association, United States Trotting Association, or
3 Jockey Club, as appropriate, used for purposes of breeding or
4 racing for prizes.
5 (15) Computers and communications equipment utilized for
6 any hospital purpose and equipment used in the diagnosis,
7 analysis, or treatment of hospital patients purchased by a
8 lessor who leases the equipment, under a lease of one year or
9 longer executed or in effect at the time the lessor would
10 otherwise be subject to the tax imposed by this Act, to a
11 hospital that has been issued an active tax exemption
12 identification number by the Department under Section 1g of
13 the Retailers' Occupation Tax Act. If the equipment is leased
14 in a manner that does not qualify for this exemption or is
15 used in any other non-exempt manner, the lessor shall be
16 liable for the tax imposed under this Act or the Use Tax Act,
17 as the case may be, based on the fair market value of the
18 property at the time the non-qualifying use occurs. No
19 lessor shall collect or attempt to collect an amount (however
20 designated) that purports to reimburse that lessor for the
21 tax imposed by this Act or the Use Tax Act, as the case may
22 be, if the tax has not been paid by the lessor. If a lessor
23 improperly collects any such amount from the lessee, the
24 lessee shall have a legal right to claim a refund of that
25 amount from the lessor. If, however, that amount is not
26 refunded to the lessee for any reason, the lessor is liable
27 to pay that amount to the Department.
28 (16) Personal property purchased by a lessor who leases
29 the property, under a lease of one year or longer executed or
30 in effect at the time the lessor would otherwise be subject
31 to the tax imposed by this Act, to a governmental body that
32 has been issued an active tax exemption identification number
33 by the Department under Section 1g of the Retailers'
34 Occupation Tax Act. If the property is leased in a manner
-23- LRB9203211SMdvA
1 that does not qualify for this exemption or is used in any
2 other non-exempt manner, the lessor shall be liable for the
3 tax imposed under this Act or the Use Tax Act, as the case
4 may be, based on the fair market value of the property at the
5 time the non-qualifying use occurs. No lessor shall collect
6 or attempt to collect an amount (however designated) that
7 purports to reimburse that lessor for the tax imposed by this
8 Act or the Use Tax Act, as the case may be, if the tax has
9 not been paid by the lessor. If a lessor improperly collects
10 any such amount from the lessee, the lessee shall have a
11 legal right to claim a refund of that amount from the lessor.
12 If, however, that amount is not refunded to the lessee for
13 any reason, the lessor is liable to pay that amount to the
14 Department.
15 (17) Beginning with taxable years ending on or after
16 December 31, 1995 and ending with taxable years ending on or
17 before December 31, 2004, personal property that is donated
18 for disaster relief to be used in a State or federally
19 declared disaster area in Illinois or bordering Illinois by a
20 manufacturer or retailer that is registered in this State to
21 a corporation, society, association, foundation, or
22 institution that has been issued a sales tax exemption
23 identification number by the Department that assists victims
24 of the disaster who reside within the declared disaster area.
25 (18) Beginning with taxable years ending on or after
26 December 31, 1995 and ending with taxable years ending on or
27 before December 31, 2004, personal property that is used in
28 the performance of infrastructure repairs in this State,
29 including but not limited to municipal roads and streets,
30 access roads, bridges, sidewalks, waste disposal systems,
31 water and sewer line extensions, water distribution and
32 purification facilities, storm water drainage and retention
33 facilities, and sewage treatment facilities, resulting from a
34 State or federally declared disaster in Illinois or bordering
-24- LRB9203211SMdvA
1 Illinois when such repairs are initiated on facilities
2 located in the declared disaster area within 6 months after
3 the disaster.
4 (19) Beginning July 1, 1999, game or game birds
5 purchased at a "game breeding and hunting preserve area" or
6 an "exotic game hunting area" as those terms are used in the
7 Wildlife Code or at a hunting enclosure approved through
8 rules adopted by the Department of Natural Resources. This
9 paragraph is exempt from the provisions of Section 3-75.
10 (20) (19) A motor vehicle, as that term is defined in
11 Section 1-146 of the Illinois Vehicle Code, that is donated
12 to a corporation, limited liability company, society,
13 association, foundation, or institution that is determined by
14 the Department to be organized and operated exclusively for
15 educational purposes. For purposes of this exemption, "a
16 corporation, limited liability company, society, association,
17 foundation, or institution organized and operated exclusively
18 for educational purposes" means all tax-supported public
19 schools, private schools that offer systematic instruction in
20 useful branches of learning by methods common to public
21 schools and that compare favorably in their scope and
22 intensity with the course of study presented in tax-supported
23 schools, and vocational or technical schools or institutes
24 organized and operated exclusively to provide a course of
25 study of not less than 6 weeks duration and designed to
26 prepare individuals to follow a trade or to pursue a manual,
27 technical, mechanical, industrial, business, or commercial
28 occupation.
29 (21) (20) Beginning January 1, 2000, personal property,
30 including food, purchased through fundraising events for the
31 benefit of a public or private elementary or secondary
32 school, a group of those schools, or one or more school
33 districts if the events are sponsored by an entity recognized
34 by the school district that consists primarily of volunteers
-25- LRB9203211SMdvA
1 and includes parents and teachers of the school children.
2 This paragraph does not apply to fundraising events (i) for
3 the benefit of private home instruction or (ii) for which the
4 fundraising entity purchases the personal property sold at
5 the events from another individual or entity that sold the
6 property for the purpose of resale by the fundraising entity
7 and that profits from the sale to the fundraising entity.
8 This paragraph is exempt from the provisions of Section 3-75.
9 (22) (19) Beginning January 1, 2000, new or used
10 automatic vending machines that prepare and serve hot food
11 and beverages, including coffee, soup, and other items, and
12 replacement parts for these machines. This paragraph is
13 exempt from the provisions of Section 3-75.
14 (23) Beginning in 2001, propane and home heating oil
15 sold to residential customers on or after December 1 and
16 continuing through March 31 of the next year. This paragraph
17 is exempt from the provisions of Section 3-75.
18 (24) Beginning in 2002, for bills issued on or after
19 January 1 and through April 30 each year, natural gas
20 distributed, supplied, furnished, or sold to residential
21 customers. This paragraph is exempt from the provisions of
22 Section 3-75.
23 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
24 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
25 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
26 eff. 8-20-99; revised 9-29-99.)
27 Section 25. The Service Occupation Tax Act is amended by
28 changing Section 3-5 as follows:
29 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
30 Sec. 3-5. Exemptions. The following tangible personal
31 property is exempt from the tax imposed by this Act:
32 (1) Personal property sold by a corporation, society,
-26- LRB9203211SMdvA
1 association, foundation, institution, or organization, other
2 than a limited liability company, that is organized and
3 operated as a not-for-profit service enterprise for the
4 benefit of persons 65 years of age or older if the personal
5 property was not purchased by the enterprise for the purpose
6 of resale by the enterprise.
7 (2) Personal property purchased by a not-for-profit
8 Illinois county fair association for use in conducting,
9 operating, or promoting the county fair.
10 (3) Personal property purchased by any not-for-profit
11 arts or cultural organization that establishes, by proof
12 required by the Department by rule, that it has received an
13 exemption under Section 501(c)(3) of the Internal Revenue
14 Code and that is organized and operated for the presentation
15 or support of arts or cultural programming, activities, or
16 services. These organizations include, but are not limited
17 to, music and dramatic arts organizations such as symphony
18 orchestras and theatrical groups, arts and cultural service
19 organizations, local arts councils, visual arts
20 organizations, and media arts organizations.
21 (4) Legal tender, currency, medallions, or gold or
22 silver coinage issued by the State of Illinois, the
23 government of the United States of America, or the government
24 of any foreign country, and bullion.
25 (5) Graphic arts machinery and equipment, including
26 repair and replacement parts, both new and used, and
27 including that manufactured on special order or purchased for
28 lease, certified by the purchaser to be used primarily for
29 graphic arts production.
30 (6) Personal property sold by a teacher-sponsored
31 student organization affiliated with an elementary or
32 secondary school located in Illinois.
33 (7) Farm machinery and equipment, both new and used,
34 including that manufactured on special order, certified by
-27- LRB9203211SMdvA
1 the purchaser to be used primarily for production agriculture
2 or State or federal agricultural programs, including
3 individual replacement parts for the machinery and equipment,
4 including machinery and equipment purchased for lease, and
5 including implements of husbandry defined in Section 1-130 of
6 the Illinois Vehicle Code, farm machinery and agricultural
7 chemical and fertilizer spreaders, and nurse wagons required
8 to be registered under Section 3-809 of the Illinois Vehicle
9 Code, but excluding other motor vehicles required to be
10 registered under the Illinois Vehicle Code. Horticultural
11 polyhouses or hoop houses used for propagating, growing, or
12 overwintering plants shall be considered farm machinery and
13 equipment under this item (7). Agricultural chemical tender
14 tanks and dry boxes shall include units sold separately from
15 a motor vehicle required to be licensed and units sold
16 mounted on a motor vehicle required to be licensed if the
17 selling price of the tender is separately stated.
18 Farm machinery and equipment shall include precision
19 farming equipment that is installed or purchased to be
20 installed on farm machinery and equipment including, but not
21 limited to, tractors, harvesters, sprayers, planters,
22 seeders, or spreaders. Precision farming equipment includes,
23 but is not limited to, soil testing sensors, computers,
24 monitors, software, global positioning and mapping systems,
25 and other such equipment.
26 Farm machinery and equipment also includes computers,
27 sensors, software, and related equipment used primarily in
28 the computer-assisted operation of production agriculture
29 facilities, equipment, and activities such as, but not
30 limited to, the collection, monitoring, and correlation of
31 animal and crop data for the purpose of formulating animal
32 diets and agricultural chemicals. This item (7) is exempt
33 from the provisions of Section 3-55.
34 (8) Fuel and petroleum products sold to or used by an
-28- LRB9203211SMdvA
1 air common carrier, certified by the carrier to be used for
2 consumption, shipment, or storage in the conduct of its
3 business as an air common carrier, for a flight destined for
4 or returning from a location or locations outside the United
5 States without regard to previous or subsequent domestic
6 stopovers.
7 (9) Proceeds of mandatory service charges separately
8 stated on customers' bills for the purchase and consumption
9 of food and beverages, to the extent that the proceeds of the
10 service charge are in fact turned over as tips or as a
11 substitute for tips to the employees who participate directly
12 in preparing, serving, hosting or cleaning up the food or
13 beverage function with respect to which the service charge is
14 imposed.
15 (10) Oil field exploration, drilling, and production
16 equipment, including (i) rigs and parts of rigs, rotary rigs,
17 cable tool rigs, and workover rigs, (ii) pipe and tubular
18 goods, including casing and drill strings, (iii) pumps and
19 pump-jack units, (iv) storage tanks and flow lines, (v) any
20 individual replacement part for oil field exploration,
21 drilling, and production equipment, and (vi) machinery and
22 equipment purchased for lease; but excluding motor vehicles
23 required to be registered under the Illinois Vehicle Code.
24 (11) Photoprocessing machinery and equipment, including
25 repair and replacement parts, both new and used, including
26 that manufactured on special order, certified by the
27 purchaser to be used primarily for photoprocessing, and
28 including photoprocessing machinery and equipment purchased
29 for lease.
30 (12) Coal exploration, mining, offhighway hauling,
31 processing, maintenance, and reclamation equipment, including
32 replacement parts and equipment, and including equipment
33 purchased for lease, but excluding motor vehicles required to
34 be registered under the Illinois Vehicle Code.
-29- LRB9203211SMdvA
1 (13) Food for human consumption that is to be consumed
2 off the premises where it is sold (other than alcoholic
3 beverages, soft drinks and food that has been prepared for
4 immediate consumption) and prescription and non-prescription
5 medicines, drugs, medical appliances, and insulin, urine
6 testing materials, syringes, and needles used by diabetics,
7 for human use, when purchased for use by a person receiving
8 medical assistance under Article 5 of the Illinois Public Aid
9 Code who resides in a licensed long-term care facility, as
10 defined in the Nursing Home Care Act.
11 (14) Semen used for artificial insemination of livestock
12 for direct agricultural production.
13 (15) Horses, or interests in horses, registered with and
14 meeting the requirements of any of the Arabian Horse Club
15 Registry of America, Appaloosa Horse Club, American Quarter
16 Horse Association, United States Trotting Association, or
17 Jockey Club, as appropriate, used for purposes of breeding or
18 racing for prizes.
19 (16) Computers and communications equipment utilized for
20 any hospital purpose and equipment used in the diagnosis,
21 analysis, or treatment of hospital patients sold to a lessor
22 who leases the equipment, under a lease of one year or longer
23 executed or in effect at the time of the purchase, to a
24 hospital that has been issued an active tax exemption
25 identification number by the Department under Section 1g of
26 the Retailers' Occupation Tax Act.
27 (17) Personal property sold to a lessor who leases the
28 property, under a lease of one year or longer executed or in
29 effect at the time of the purchase, to a governmental body
30 that has been issued an active tax exemption identification
31 number by the Department under Section 1g of the Retailers'
32 Occupation Tax Act.
33 (18) Beginning with taxable years ending on or after
34 December 31, 1995 and ending with taxable years ending on or
-30- LRB9203211SMdvA
1 before December 31, 2004, personal property that is donated
2 for disaster relief to be used in a State or federally
3 declared disaster area in Illinois or bordering Illinois by a
4 manufacturer or retailer that is registered in this State to
5 a corporation, society, association, foundation, or
6 institution that has been issued a sales tax exemption
7 identification number by the Department that assists victims
8 of the disaster who reside within the declared disaster area.
9 (19) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is used in
12 the performance of infrastructure repairs in this State,
13 including but not limited to municipal roads and streets,
14 access roads, bridges, sidewalks, waste disposal systems,
15 water and sewer line extensions, water distribution and
16 purification facilities, storm water drainage and retention
17 facilities, and sewage treatment facilities, resulting from a
18 State or federally declared disaster in Illinois or bordering
19 Illinois when such repairs are initiated on facilities
20 located in the declared disaster area within 6 months after
21 the disaster.
22 (20) Beginning July 1, 1999, game or game birds sold at
23 a "game breeding and hunting preserve area" or an "exotic
24 game hunting area" as those terms are used in the Wildlife
25 Code or at a hunting enclosure approved through rules adopted
26 by the Department of Natural Resources. This paragraph is
27 exempt from the provisions of Section 3-55.
28 (21) (20) A motor vehicle, as that term is defined in
29 Section 1-146 of the Illinois Vehicle Code, that is donated
30 to a corporation, limited liability company, society,
31 association, foundation, or institution that is determined by
32 the Department to be organized and operated exclusively for
33 educational purposes. For purposes of this exemption, "a
34 corporation, limited liability company, society, association,
-31- LRB9203211SMdvA
1 foundation, or institution organized and operated exclusively
2 for educational purposes" means all tax-supported public
3 schools, private schools that offer systematic instruction in
4 useful branches of learning by methods common to public
5 schools and that compare favorably in their scope and
6 intensity with the course of study presented in tax-supported
7 schools, and vocational or technical schools or institutes
8 organized and operated exclusively to provide a course of
9 study of not less than 6 weeks duration and designed to
10 prepare individuals to follow a trade or to pursue a manual,
11 technical, mechanical, industrial, business, or commercial
12 occupation.
13 (22) (21) Beginning January 1, 2000, personal property,
14 including food, purchased through fundraising events for the
15 benefit of a public or private elementary or secondary
16 school, a group of those schools, or one or more school
17 districts if the events are sponsored by an entity recognized
18 by the school district that consists primarily of volunteers
19 and includes parents and teachers of the school children.
20 This paragraph does not apply to fundraising events (i) for
21 the benefit of private home instruction or (ii) for which the
22 fundraising entity purchases the personal property sold at
23 the events from another individual or entity that sold the
24 property for the purpose of resale by the fundraising entity
25 and that profits from the sale to the fundraising entity.
26 This paragraph is exempt from the provisions of Section 3-55.
27 (23) (20) Beginning January 1, 2000, new or used
28 automatic vending machines that prepare and serve hot food
29 and beverages, including coffee, soup, and other items, and
30 replacement parts for these machines. This paragraph is
31 exempt from the provisions of Section 3-55.
32 (24) Beginning in 2001, propane and home heating oil
33 sold to residential customers on or after December 1 and
34 continuing through March 31 of the next year. This paragraph
-32- LRB9203211SMdvA
1 is exempt from the provisions of Section 3-55.
2 (25) Beginning in 2002, for bills issued on or after
3 January 1 and through April 30 each year, natural gas
4 distributed, supplied, furnished, or sold to residential
5 customers. This paragraph is exempt from the provisions of
6 Section 3-55.
7 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
8 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
9 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637,
10 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)
11 Section 30. The Retailers' Occupation Tax Act is amended
12 by changing Section 2-5 and by adding Section 2-6 as follows:
13 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
14 Sec. 2-5. Exemptions. Gross receipts from proceeds from
15 the sale of the following tangible personal property are
16 exempt from the tax imposed by this Act:
17 (1) Farm chemicals.
18 (2) Farm machinery and equipment, both new and used,
19 including that manufactured on special order, certified by
20 the purchaser to be used primarily for production agriculture
21 or State or federal agricultural programs, including
22 individual replacement parts for the machinery and equipment,
23 including machinery and equipment purchased for lease, and
24 including implements of husbandry defined in Section 1-130 of
25 the Illinois Vehicle Code, farm machinery and agricultural
26 chemical and fertilizer spreaders, and nurse wagons required
27 to be registered under Section 3-809 of the Illinois Vehicle
28 Code, but excluding other motor vehicles required to be
29 registered under the Illinois Vehicle Code. Horticultural
30 polyhouses or hoop houses used for propagating, growing, or
31 overwintering plants shall be considered farm machinery and
32 equipment under this item (2). Agricultural chemical tender
-33- LRB9203211SMdvA
1 tanks and dry boxes shall include units sold separately from
2 a motor vehicle required to be licensed and units sold
3 mounted on a motor vehicle required to be licensed, if the
4 selling price of the tender is separately stated.
5 Farm machinery and equipment shall include precision
6 farming equipment that is installed or purchased to be
7 installed on farm machinery and equipment including, but not
8 limited to, tractors, harvesters, sprayers, planters,
9 seeders, or spreaders. Precision farming equipment includes,
10 but is not limited to, soil testing sensors, computers,
11 monitors, software, global positioning and mapping systems,
12 and other such equipment.
13 Farm machinery and equipment also includes computers,
14 sensors, software, and related equipment used primarily in
15 the computer-assisted operation of production agriculture
16 facilities, equipment, and activities such as, but not
17 limited to, the collection, monitoring, and correlation of
18 animal and crop data for the purpose of formulating animal
19 diets and agricultural chemicals. This item (7) is exempt
20 from the provisions of Section 2-70.
21 (3) Distillation machinery and equipment, sold as a unit
22 or kit, assembled or installed by the retailer, certified by
23 the user to be used only for the production of ethyl alcohol
24 that will be used for consumption as motor fuel or as a
25 component of motor fuel for the personal use of the user, and
26 not subject to sale or resale.
27 (4) Graphic arts machinery and equipment, including
28 repair and replacement parts, both new and used, and
29 including that manufactured on special order or purchased for
30 lease, certified by the purchaser to be used primarily for
31 graphic arts production.
32 (5) A motor vehicle of the first division, a motor
33 vehicle of the second division that is a self-contained motor
34 vehicle designed or permanently converted to provide living
-34- LRB9203211SMdvA
1 quarters for recreational, camping, or travel use, with
2 direct walk through access to the living quarters from the
3 driver's seat, or a motor vehicle of the second division that
4 is of the van configuration designed for the transportation
5 of not less than 7 nor more than 16 passengers, as defined in
6 Section 1-146 of the Illinois Vehicle Code, that is used for
7 automobile renting, as defined in the Automobile Renting
8 Occupation and Use Tax Act.
9 (6) Personal property sold by a teacher-sponsored
10 student organization affiliated with an elementary or
11 secondary school located in Illinois.
12 (7) Proceeds of that portion of the selling price of a
13 passenger car the sale of which is subject to the Replacement
14 Vehicle Tax.
15 (8) Personal property sold to an Illinois county fair
16 association for use in conducting, operating, or promoting
17 the county fair.
18 (9) Personal property sold to a not-for-profit arts or
19 cultural organization that establishes, by proof required by
20 the Department by rule, that it has received an exemption
21 under Section 501(c)(3) of the Internal Revenue Code and that
22 is organized and operated for the presentation or support of
23 arts or cultural programming, activities, or services. These
24 organizations include, but are not limited to, music and
25 dramatic arts organizations such as symphony orchestras and
26 theatrical groups, arts and cultural service organizations,
27 local arts councils, visual arts organizations, and media
28 arts organizations.
29 (10) Personal property sold by a corporation, society,
30 association, foundation, institution, or organization, other
31 than a limited liability company, that is organized and
32 operated as a not-for-profit service enterprise for the
33 benefit of persons 65 years of age or older if the personal
34 property was not purchased by the enterprise for the purpose
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1 of resale by the enterprise.
2 (11) Personal property sold to a governmental body, to a
3 corporation, society, association, foundation, or institution
4 organized and operated exclusively for charitable, religious,
5 or educational purposes, or to a not-for-profit corporation,
6 society, association, foundation, institution, or
7 organization that has no compensated officers or employees
8 and that is organized and operated primarily for the
9 recreation of persons 55 years of age or older. A limited
10 liability company may qualify for the exemption under this
11 paragraph only if the limited liability company is organized
12 and operated exclusively for educational purposes. On and
13 after July 1, 1987, however, no entity otherwise eligible for
14 this exemption shall make tax-free purchases unless it has an
15 active identification number issued by the Department.
16 (12) Personal property sold to interstate carriers for
17 hire for use as rolling stock moving in interstate commerce
18 or to lessors under leases of one year or longer executed or
19 in effect at the time of purchase by interstate carriers for
20 hire for use as rolling stock moving in interstate commerce
21 and equipment operated by a telecommunications provider,
22 licensed as a common carrier by the Federal Communications
23 Commission, which is permanently installed in or affixed to
24 aircraft moving in interstate commerce.
25 (13) Proceeds from sales to owners, lessors, or shippers
26 of tangible personal property that is utilized by interstate
27 carriers for hire for use as rolling stock moving in
28 interstate commerce and equipment operated by a
29 telecommunications provider, licensed as a common carrier by
30 the Federal Communications Commission, which is permanently
31 installed in or affixed to aircraft moving in interstate
32 commerce.
33 (14) Machinery and equipment that will be used by the
34 purchaser, or a lessee of the purchaser, primarily in the
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1 process of manufacturing or assembling tangible personal
2 property for wholesale or retail sale or lease, whether the
3 sale or lease is made directly by the manufacturer or by some
4 other person, whether the materials used in the process are
5 owned by the manufacturer or some other person, or whether
6 the sale or lease is made apart from or as an incident to the
7 seller's engaging in the service occupation of producing
8 machines, tools, dies, jigs, patterns, gauges, or other
9 similar items of no commercial value on special order for a
10 particular purchaser.
11 (15) Proceeds of mandatory service charges separately
12 stated on customers' bills for purchase and consumption of
13 food and beverages, to the extent that the proceeds of the
14 service charge are in fact turned over as tips or as a
15 substitute for tips to the employees who participate directly
16 in preparing, serving, hosting or cleaning up the food or
17 beverage function with respect to which the service charge is
18 imposed.
19 (16) Petroleum products sold to a purchaser if the
20 seller is prohibited by federal law from charging tax to the
21 purchaser.
22 (17) Tangible personal property sold to a common carrier
23 by rail or motor that receives the physical possession of the
24 property in Illinois and that transports the property, or
25 shares with another common carrier in the transportation of
26 the property, out of Illinois on a standard uniform bill of
27 lading showing the seller of the property as the shipper or
28 consignor of the property to a destination outside Illinois,
29 for use outside Illinois.
30 (18) Legal tender, currency, medallions, or gold or
31 silver coinage issued by the State of Illinois, the
32 government of the United States of America, or the government
33 of any foreign country, and bullion.
34 (19) Oil field exploration, drilling, and production
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1 equipment, including (i) rigs and parts of rigs, rotary rigs,
2 cable tool rigs, and workover rigs, (ii) pipe and tubular
3 goods, including casing and drill strings, (iii) pumps and
4 pump-jack units, (iv) storage tanks and flow lines, (v) any
5 individual replacement part for oil field exploration,
6 drilling, and production equipment, and (vi) machinery and
7 equipment purchased for lease; but excluding motor vehicles
8 required to be registered under the Illinois Vehicle Code.
9 (20) Photoprocessing machinery and equipment, including
10 repair and replacement parts, both new and used, including
11 that manufactured on special order, certified by the
12 purchaser to be used primarily for photoprocessing, and
13 including photoprocessing machinery and equipment purchased
14 for lease.
15 (21) Coal exploration, mining, offhighway hauling,
16 processing, maintenance, and reclamation equipment, including
17 replacement parts and equipment, and including equipment
18 purchased for lease, but excluding motor vehicles required to
19 be registered under the Illinois Vehicle Code.
20 (22) Fuel and petroleum products sold to or used by an
21 air carrier, certified by the carrier to be used for
22 consumption, shipment, or storage in the conduct of its
23 business as an air common carrier, for a flight destined for
24 or returning from a location or locations outside the United
25 States without regard to previous or subsequent domestic
26 stopovers.
27 (23) A transaction in which the purchase order is
28 received by a florist who is located outside Illinois, but
29 who has a florist located in Illinois deliver the property to
30 the purchaser or the purchaser's donee in Illinois.
31 (24) Fuel consumed or used in the operation of ships,
32 barges, or vessels that are used primarily in or for the
33 transportation of property or the conveyance of persons for
34 hire on rivers bordering on this State if the fuel is
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1 delivered by the seller to the purchaser's barge, ship, or
2 vessel while it is afloat upon that bordering river.
3 (25) A motor vehicle sold in this State to a nonresident
4 even though the motor vehicle is delivered to the nonresident
5 in this State, if the motor vehicle is not to be titled in
6 this State, and if a driveaway decal permit is issued to the
7 motor vehicle as provided in Section 3-603 of the Illinois
8 Vehicle Code or if the nonresident purchaser has vehicle
9 registration plates to transfer to the motor vehicle upon
10 returning to his or her home state. The issuance of the
11 driveaway decal permit or having the out-of-state
12 registration plates to be transferred is prima facie evidence
13 that the motor vehicle will not be titled in this State.
14 (26) Semen used for artificial insemination of livestock
15 for direct agricultural production.
16 (27) Horses, or interests in horses, registered with and
17 meeting the requirements of any of the Arabian Horse Club
18 Registry of America, Appaloosa Horse Club, American Quarter
19 Horse Association, United States Trotting Association, or
20 Jockey Club, as appropriate, used for purposes of breeding or
21 racing for prizes.
22 (28) Computers and communications equipment utilized for
23 any hospital purpose and equipment used in the diagnosis,
24 analysis, or treatment of hospital patients sold to a lessor
25 who leases the equipment, under a lease of one year or longer
26 executed or in effect at the time of the purchase, to a
27 hospital that has been issued an active tax exemption
28 identification number by the Department under Section 1g of
29 this Act.
30 (29) Personal property sold to a lessor who leases the
31 property, under a lease of one year or longer executed or in
32 effect at the time of the purchase, to a governmental body
33 that has been issued an active tax exemption identification
34 number by the Department under Section 1g of this Act.
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1 (30) Beginning with taxable years ending on or after
2 December 31, 1995 and ending with taxable years ending on or
3 before December 31, 2004, personal property that is donated
4 for disaster relief to be used in a State or federally
5 declared disaster area in Illinois or bordering Illinois by a
6 manufacturer or retailer that is registered in this State to
7 a corporation, society, association, foundation, or
8 institution that has been issued a sales tax exemption
9 identification number by the Department that assists victims
10 of the disaster who reside within the declared disaster area.
11 (31) Beginning with taxable years ending on or after
12 December 31, 1995 and ending with taxable years ending on or
13 before December 31, 2004, personal property that is used in
14 the performance of infrastructure repairs in this State,
15 including but not limited to municipal roads and streets,
16 access roads, bridges, sidewalks, waste disposal systems,
17 water and sewer line extensions, water distribution and
18 purification facilities, storm water drainage and retention
19 facilities, and sewage treatment facilities, resulting from a
20 State or federally declared disaster in Illinois or bordering
21 Illinois when such repairs are initiated on facilities
22 located in the declared disaster area within 6 months after
23 the disaster.
24 (32) Beginning July 1, 1999, game or game birds sold at
25 a "game breeding and hunting preserve area" or an "exotic
26 game hunting area" as those terms are used in the Wildlife
27 Code or at a hunting enclosure approved through rules adopted
28 by the Department of Natural Resources. This paragraph is
29 exempt from the provisions of Section 2-70.
30 (33) (32) A motor vehicle, as that term is defined in
31 Section 1-146 of the Illinois Vehicle Code, that is donated
32 to a corporation, limited liability company, society,
33 association, foundation, or institution that is determined by
34 the Department to be organized and operated exclusively for
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1 educational purposes. For purposes of this exemption, "a
2 corporation, limited liability company, society, association,
3 foundation, or institution organized and operated exclusively
4 for educational purposes" means all tax-supported public
5 schools, private schools that offer systematic instruction in
6 useful branches of learning by methods common to public
7 schools and that compare favorably in their scope and
8 intensity with the course of study presented in tax-supported
9 schools, and vocational or technical schools or institutes
10 organized and operated exclusively to provide a course of
11 study of not less than 6 weeks duration and designed to
12 prepare individuals to follow a trade or to pursue a manual,
13 technical, mechanical, industrial, business, or commercial
14 occupation.
15 (34) (33) Beginning January 1, 2000, personal property,
16 including food, purchased through fundraising events for the
17 benefit of a public or private elementary or secondary
18 school, a group of those schools, or one or more school
19 districts if the events are sponsored by an entity recognized
20 by the school district that consists primarily of volunteers
21 and includes parents and teachers of the school children.
22 This paragraph does not apply to fundraising events (i) for
23 the benefit of private home instruction or (ii) for which the
24 fundraising entity purchases the personal property sold at
25 the events from another individual or entity that sold the
26 property for the purpose of resale by the fundraising entity
27 and that profits from the sale to the fundraising entity.
28 This paragraph is exempt from the provisions of Section 2-70.
29 (35) (32) Beginning January 1, 2000, new or used
30 automatic vending machines that prepare and serve hot food
31 and beverages, including coffee, soup, and other items, and
32 replacement parts for these machines. This paragraph is
33 exempt from the provisions of Section 2-70.
34 (36) Beginning in 2001, propane and home heating oil
-41- LRB9203211SMdvA
1 sold to residential customers on or after December 1 and
2 continuing through March 31 of the next year. This paragraph
3 is exempt from the provisions of Section 2-70.
4 (37) Beginning in 2002, for bills issued on or after
5 January and through April 30 each year, natural gas
6 distributed, supplied, furnished, or sold to residential
7 customers. This paragraph is exempt from the provisions of
8 Section 2-70.
9 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98;
10 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff.
11 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533,
12 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99;
13 revised 9-28-99.)
14 Section 35. The Gas Revenue Tax Act is amended by adding
15 Section 2a.4 as follows:
16 (35 ILCS 615/2a.4 new)
17 Sec. 2a.4 Winter tax exemption for residential
18 customers. No tax is imposed under this Act on gas
19 distributed, supplied, furnished, or sold to residential
20 customers, for bills issued on or after January 1 and through
21 April 30 each year. This Section is exempt from the
22 provisions of Section 2a.3.
23 Section 40. The Counties Code is amended by changing
24 Sections 5-1006, 5-1006.5 and 5-1007 as follows:
25 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
26 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
27 Law. Any county that is a home rule unit may impose a tax
28 upon all persons engaged in the business of selling tangible
29 personal property, other than an item of tangible personal
30 property titled or registered with an agency of this State's
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1 government, at retail in the county on the gross receipts
2 from such sales made in the course of their business. If
3 imposed, this tax shall only be imposed in 1/4% increments.
4 On and after September 1, 1991, this additional tax may not
5 be imposed on the sales of food for human consumption which
6 is to be consumed off the premises where it is sold (other
7 than alcoholic beverages, soft drinks and food which has been
8 prepared for immediate consumption) and prescription and
9 nonprescription medicines, drugs, medical appliances and
10 insulin, urine testing materials, syringes and needles used
11 by diabetics. The tax imposed by a home rule county pursuant
12 to this Section and all civil penalties that may be assessed
13 as an incident thereof shall be collected and enforced by the
14 State Department of Revenue. The certificate of registration
15 that is issued by the Department to a retailer under the
16 Retailers' Occupation Tax Act shall permit the retailer to
17 engage in a business that is taxable under any ordinance or
18 resolution enacted pursuant to this Section without
19 registering separately with the Department under such
20 ordinance or resolution or under this Section. The
21 Department shall have full power to administer and enforce
22 this Section; to collect all taxes and penalties due
23 hereunder; to dispose of taxes and penalties so collected in
24 the manner hereinafter provided; and to determine all rights
25 to credit memoranda arising on account of the erroneous
26 payment of tax or penalty hereunder. In the administration
27 of, and compliance with, this Section, the Department and
28 persons who are subject to this Section shall have the same
29 rights, remedies, privileges, immunities, powers and duties,
30 and be subject to the same conditions, restrictions,
31 limitations, penalties and definitions of terms, and employ
32 the same modes of procedure, as are prescribed in Sections 1,
33 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
34 respect to all provisions therein other than the State rate
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1 of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
2 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
3 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
4 Penalty and Interest Act, as fully as if those provisions
5 were set forth herein.
6 No tax may be imposed by a home rule county pursuant to
7 this Section unless the county also imposes a tax at the same
8 rate pursuant to Section 5-1007.
9 Beginning in 2001, propane and home heating oil sold to
10 residential customers on or after December 1 and through
11 March 31 of each year are exempt from the tax imposed by this
12 Section or under the authority of any home rule power.
13 Beginning in 2002, for bills issued on or after January 1
14 and through April 30 each year, natural gas distributed,
15 supplied, furnished, or sold to residential customers is
16 exempt from the tax imposed by this Section or under the
17 authority of any home rule power.
18 This amendatory Act of the 92nd General Assembly is a
19 denial and limitation of home rule powers to tax under
20 subsection (g) of Section 6 of Article VII of the Illinois
21 Constitution.
22 Persons subject to any tax imposed pursuant to the
23 authority granted in this Section may reimburse themselves
24 for their seller's tax liability hereunder by separately
25 stating such tax as an additional charge, which charge may be
26 stated in combination, in a single amount, with State tax
27 which sellers are required to collect under the Use Tax Act,
28 pursuant to such bracket schedules as the Department may
29 prescribe.
30 Whenever the Department determines that a refund should
31 be made under this Section to a claimant instead of issuing a
32 credit memorandum, the Department shall notify the State
33 Comptroller, who shall cause the order to be drawn for the
34 amount specified and to the person named in the notification
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1 from the Department. The refund shall be paid by the State
2 Treasurer out of the home rule county retailers' occupation
3 tax fund.
4 The Department shall forthwith pay over to the State
5 Treasurer, ex officio, as trustee, all taxes and penalties
6 collected hereunder. On or before the 25th day of each
7 calendar month, the Department shall prepare and certify to
8 the Comptroller the disbursement of stated sums of money to
9 named counties, the counties to be those from which retailers
10 have paid taxes or penalties hereunder to the Department
11 during the second preceding calendar month. The amount to be
12 paid to each county shall be the amount (not including credit
13 memoranda) collected hereunder during the second preceding
14 calendar month by the Department plus an amount the
15 Department determines is necessary to offset any amounts that
16 were erroneously paid to a different taxing body, and not
17 including an amount equal to the amount of refunds made
18 during the second preceding calendar month by the Department
19 on behalf of such county, and not including any amount which
20 the Department determines is necessary to offset any amounts
21 which were payable to a different taxing body but were
22 erroneously paid to the county. Within 10 days after receipt,
23 by the Comptroller, of the disbursement certification to the
24 counties provided for in this Section to be given to the
25 Comptroller by the Department, the Comptroller shall cause
26 the orders to be drawn for the respective amounts in
27 accordance with the directions contained in the
28 certification.
29 In addition to the disbursement required by the preceding
30 paragraph, an allocation shall be made in March of each year
31 to each county that received more than $500,000 in
32 disbursements under the preceding paragraph in the preceding
33 calendar year. The allocation shall be in an amount equal to
34 the average monthly distribution made to each such county
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1 under the preceding paragraph during the preceding calendar
2 year (excluding the 2 months of highest receipts). The
3 distribution made in March of each year subsequent to the
4 year in which an allocation was made pursuant to this
5 paragraph and the preceding paragraph shall be reduced by the
6 amount allocated and disbursed under this paragraph in the
7 preceding calendar year. The Department shall prepare and
8 certify to the Comptroller for disbursement the allocations
9 made in accordance with this paragraph.
10 For the purpose of determining the local governmental
11 unit whose tax is applicable, a retail sale by a producer of
12 coal or other mineral mined in Illinois is a sale at retail
13 at the place where the coal or other mineral mined in
14 Illinois is extracted from the earth. This paragraph does
15 not apply to coal or other mineral when it is delivered or
16 shipped by the seller to the purchaser at a point outside
17 Illinois so that the sale is exempt under the United States
18 Constitution as a sale in interstate or foreign commerce.
19 Nothing in this Section shall be construed to authorize a
20 county to impose a tax upon the privilege of engaging in any
21 business which under the Constitution of the United States
22 may not be made the subject of taxation by this State.
23 An ordinance or resolution imposing or discontinuing a
24 tax hereunder or effecting a change in the rate thereof shall
25 be adopted and a certified copy thereof filed with the
26 Department on or before the first day of June, whereupon the
27 Department shall proceed to administer and enforce this
28 Section as of the first day of September next following such
29 adoption and filing. Beginning January 1, 1992, an ordinance
30 or resolution imposing or discontinuing the tax hereunder or
31 effecting a change in the rate thereof shall be adopted and a
32 certified copy thereof filed with the Department on or before
33 the first day of July, whereupon the Department shall proceed
34 to administer and enforce this Section as of the first day of
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1 October next following such adoption and filing. Beginning
2 January 1, 1993, an ordinance or resolution imposing or
3 discontinuing the tax hereunder or effecting a change in the
4 rate thereof shall be adopted and a certified copy thereof
5 filed with the Department on or before the first day of
6 October, whereupon the Department shall proceed to administer
7 and enforce this Section as of the first day of January next
8 following such adoption and filing. Beginning April 1, 1998,
9 an ordinance or resolution imposing or discontinuing the tax
10 hereunder or effecting a change in the rate thereof shall
11 either (i) be adopted and a certified copy thereof filed with
12 the Department on or before the first day of April, whereupon
13 the Department shall proceed to administer and enforce this
14 Section as of the first day of July next following the
15 adoption and filing; or (ii) be adopted and a certified copy
16 thereof filed with the Department on or before the first day
17 of October, whereupon the Department shall proceed to
18 administer and enforce this Section as of the first day of
19 January next following the adoption and filing.
20 When certifying the amount of a monthly disbursement to a
21 county under this Section, the Department shall increase or
22 decrease such amount by an amount necessary to offset any
23 misallocation of previous disbursements. The offset amount
24 shall be the amount erroneously disbursed within the previous
25 6 months from the time a misallocation is discovered.
26 This Section shall be known and may be cited as the Home
27 Rule County Retailers' Occupation Tax Law.
28 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
29 (55 ILCS 5/5-1006.5)
30 Sec. 5-1006.5. Special County Retailers' Occupation Tax
31 For Public Safety.
32 (a) The county board of any county may impose a tax upon
33 all persons engaged in the business of selling tangible
-47- LRB9203211SMdvA
1 personal property, other than personal property titled or
2 registered with an agency of this State's government, at
3 retail in the county on the gross receipts from the sales
4 made in the course of business to provide revenue to be used
5 exclusively for public safety purposes in that county, if a
6 proposition for the tax has been submitted to the electors of
7 that county and approved by a majority of those voting on the
8 question. If imposed, this tax shall be imposed only in
9 one-quarter percent increments. By resolution, the county
10 board may order the proposition to be submitted at any
11 election. The county clerk shall certify the question to the
12 proper election authority, who shall submit the proposition
13 at an election in accordance with the general election law.
14 The proposition shall be in substantially the following
15 form:
16 "Shall (name of county) be authorized to impose a
17 public safety tax at the rate of .... upon all persons
18 engaged in the business of selling tangible personal
19 property at retail in the county on gross receipts from
20 the sales made in the course of their business to be used
21 for crime prevention, detention, and other public safety
22 purposes?"
23 Votes shall be recorded as Yes or No. If a majority of the
24 electors voting on the proposition vote in favor of it, the
25 county may impose the tax.
26 This additional tax may not be imposed on the sales of
27 food for human consumption that is to be consumed off the
28 premises where it is sold (other than alcoholic beverages,
29 soft drinks, and food which has been prepared for immediate
30 consumption) and prescription and non-prescription medicines,
31 drugs, medical appliances and insulin, urine testing
32 materials, syringes, and needles used by diabetics. The tax
33 imposed by a county under this Section and all civil
34 penalties that may be assessed as an incident of the tax
-48- LRB9203211SMdvA
1 shall be collected and enforced by the Illinois Department of
2 Revenue. The certificate of registration that is issued by
3 the Department to a retailer under the Retailers' Occupation
4 Tax Act shall permit the retailer to engage in a business
5 that is taxable without registering separately with the
6 Department under an ordinance or resolution under this
7 Section. The Department has full power to administer and
8 enforce this Section, to collect all taxes and penalties due
9 under this Section, to dispose of taxes and penalties so
10 collected in the manner provided in this Section, and to
11 determine all rights to credit memoranda arising on account
12 of the erroneous payment of a tax or penalty under this
13 Section. In the administration of and compliance with this
14 Section, the Department and persons who are subject to this
15 Section shall (i) have the same rights, remedies, privileges,
16 immunities, powers, and duties, (ii) be subject to the same
17 conditions, restrictions, limitations, penalties, and
18 definitions of terms, and (iii) employ the same modes of
19 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
20 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
21 all provisions contained in those Sections other than the
22 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
23 provisions relating to transaction returns and quarter
24 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
25 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
26 of the Retailers' Occupation Tax Act and Section 3-7 of the
27 Uniform Penalty and Interest Act as if those provisions were
28 set forth in this Section.
29 Beginning in 2001, propane and home heating oil sold to
30 residential customers on or after December 1 and through
31 March 31 of each year are exempt from the tax imposed by this
32 subsection or under the authority of any home rule power.
33 Beginning in 2001, for bills issued on or after January 1
34 and through April 30 each year, natural gas distributed,
-49- LRB9203211SMdvA
1 supplied, furnished, or sold to residential customers is
2 exempt from the tax imposed by this subsection or under the
3 authority of any home rule power.
4 This amendatory Act of the 92nd General Assembly is a
5 denial and limitation of home rule powers to tax under
6 subsection (g) of Section 6 of Article VII of the Illinois
7 Constitution.
8 Persons subject to any tax imposed under the authority
9 granted in this Section may reimburse themselves for their
10 sellers' tax liability by separately stating the tax as an
11 additional charge, which charge may be stated in combination,
12 in a single amount, with State tax which sellers are required
13 to collect under the Use Tax Act, pursuant to such bracketed
14 schedules as the Department may prescribe.
15 Whenever the Department determines that a refund should
16 be made under this Section to a claimant instead of issuing a
17 credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the order to be drawn for the
19 amount specified and to the person named in the notification
20 from the Department. The refund shall be paid by the State
21 Treasurer out of the County Public Safety Retailers'
22 Occupation Tax Fund.
23 (b) If a tax has been imposed under subsection (a), a
24 service occupation tax shall also be imposed at the same rate
25 upon all persons engaged, in the county, in the business of
26 making sales of service, who, as an incident to making those
27 sales of service, transfer tangible personal property within
28 the county as an incident to a sale of service. This tax may
29 not be imposed on sales of food for human consumption that is
30 to be consumed off the premises where it is sold (other than
31 alcoholic beverages, soft drinks, and food prepared for
32 immediate consumption) and prescription and non-prescription
33 medicines, drugs, medical appliances and insulin, urine
34 testing materials, syringes, and needles used by diabetics.
-50- LRB9203211SMdvA
1 The tax imposed under this subsection and all civil penalties
2 that may be assessed as an incident thereof shall be
3 collected and enforced by the Department of Revenue. The
4 Department has full power to administer and enforce this
5 subsection; to collect all taxes and penalties due hereunder;
6 to dispose of taxes and penalties so collected in the manner
7 hereinafter provided; and to determine all rights to credit
8 memoranda arising on account of the erroneous payment of tax
9 or penalty hereunder. In the administration of, and
10 compliance with this subsection, the Department and persons
11 who are subject to this paragraph shall (i) have the same
12 rights, remedies, privileges, immunities, powers, and duties,
13 (ii) be subject to the same conditions, restrictions,
14 limitations, penalties, exclusions, exemptions, and
15 definitions of terms, and (iii) employ the same modes of
16 procedure as are prescribed in Sections 2 (except that the
17 reference to State in the definition of supplier maintaining
18 a place of business in this State shall mean the county), 2a,
19 2b, 2c, 3 through 3-50 (in respect to all provisions therein
20 other than the State rate of tax), 4 (except that the
21 reference to the State shall be to the county), 5, 7, 8
22 (except that the jurisdiction to which the tax shall be a
23 debt to the extent indicated in that Section 8 shall be the
24 county), 9 (except as to the disposition of taxes and
25 penalties collected), 10, 11, 12 (except the reference
26 therein to Section 2b of the Retailers' Occupation Tax Act),
27 13 (except that any reference to the State shall mean the
28 county), Section 15, 16, 17, 18, 19 and 20 of the Service
29 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
30 Interest Act, as fully as if those provisions were set forth
31 herein.
32 Beginning in 2001, propane and home heating oil sold to
33 residential customers on or after December 1 and through
34 March 31 of each year are exempt from the tax imposed by this
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1 subsection or under the authority of any home rule power.
2 Beginning in 2002, for bills issued on or after January 1
3 and through April 30 each year, natural gas distributed,
4 supplied, furnished, or sold to residential customers is
5 exempt from the tax imposed by this subsection or under the
6 authority of any home rule power.
7 This amendatory Act of the 92nd General Assembly is a
8 denial and limitation of home rule powers to tax under
9 subsection (g) of Section 6 of Article VII of the Illinois
10 Constitution.
11 Persons subject to any tax imposed under the authority
12 granted in this subsection may reimburse themselves for their
13 serviceman's tax liability by separately stating the tax as
14 an additional charge, which charge may be stated in
15 combination, in a single amount, with State tax that
16 servicemen are authorized to collect under the Service Use
17 Tax Act, in accordance with such bracket schedules as the
18 Department may prescribe.
19 Whenever the Department determines that a refund should
20 be made under this subsection to a claimant instead of
21 issuing a credit memorandum, the Department shall notify the
22 State Comptroller, who shall cause the warrant to be drawn
23 for the amount specified, and to the person named, in the
24 notification from the Department. The refund shall be paid
25 by the State Treasurer out of the County Public Safety
26 Retailers' Occupation Fund.
27 Nothing in this subsection shall be construed to
28 authorize the county to impose a tax upon the privilege of
29 engaging in any business which under the Constitution of the
30 United States may not be made the subject of taxation by the
31 State.
32 (c) The Department shall immediately pay over to the
33 State Treasurer, ex officio, as trustee, all taxes and
34 penalties collected under this Section to be deposited into
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1 the County Public Safety Retailers' Occupation Tax Fund,
2 which shall be an unappropriated trust fund held outside of
3 the State treasury. On or before the 25th day of each
4 calendar month, the Department shall prepare and certify to
5 the Comptroller the disbursement of stated sums of money to
6 the counties from which retailers have paid taxes or
7 penalties to the Department during the second preceding
8 calendar month. The amount to be paid to each county shall
9 be the amount (not including credit memoranda) collected
10 under this Section during the second preceding calendar month
11 by the Department plus an amount the Department determines is
12 necessary to offset any amounts that were erroneously paid to
13 a different taxing body, and not including (i) an amount
14 equal to the amount of refunds made during the second
15 preceding calendar month by the Department on behalf of the
16 county and (ii) any amount that the Department determines is
17 necessary to offset any amounts that were payable to a
18 different taxing body but were erroneously paid to the
19 county. Within 10 days after receipt by the Comptroller of
20 the disbursement certification to the counties provided for
21 in this Section to be given to the Comptroller by the
22 Department, the Comptroller shall cause the orders to be
23 drawn for the respective amounts in accordance with
24 directions contained in the certification.
25 In addition to the disbursement required by the preceding
26 paragraph, an allocation shall be made in March of each year
27 to each county that received more than $500,000 in
28 disbursements under the preceding paragraph in the preceding
29 calendar year. The allocation shall be in an amount equal to
30 the average monthly distribution made to each such county
31 under the preceding paragraph during the preceding calendar
32 year (excluding the 2 months of highest receipts). The
33 distribution made in March of each year subsequent to the
34 year in which an allocation was made pursuant to this
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1 paragraph and the preceding paragraph shall be reduced by the
2 amount allocated and disbursed under this paragraph in the
3 preceding calendar year. The Department shall prepare and
4 certify to the Comptroller for disbursement the allocations
5 made in accordance with this paragraph.
6 (d) For the purpose of determining the local
7 governmental unit whose tax is applicable, a retail sale by a
8 producer of coal or another mineral mined in Illinois is a
9 sale at retail at the place where the coal or other mineral
10 mined in Illinois is extracted from the earth. This
11 paragraph does not apply to coal or another mineral when it
12 is delivered or shipped by the seller to the purchaser at a
13 point outside Illinois so that the sale is exempt under the
14 United States Constitution as a sale in interstate or foreign
15 commerce.
16 (e) Nothing in this Section shall be construed to
17 authorize a county to impose a tax upon the privilege of
18 engaging in any business that under the Constitution of the
19 United States may not be made the subject of taxation by this
20 State.
21 (e-5) If a county imposes a tax under this Section, the
22 county board may, by ordinance, discontinue or lower the rate
23 of the tax. If the county board lowers the tax rate or
24 discontinues the tax, a referendum must be held in accordance
25 with subsection (a) of this Section in order to increase the
26 rate of the tax or to reimpose the discontinued tax.
27 (f) Beginning April 1, 1998, the results of any election
28 authorizing a proposition to impose a tax under this Section
29 or effecting a change in the rate of tax, or any ordinance
30 lowering the rate or discontinuing the tax, shall be
31 certified by the county clerk and filed with the Illinois
32 Department of Revenue either (i) on or before the first day
33 of April, whereupon the Department shall proceed to
34 administer and enforce the tax as of the first day of July
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1 next following the filing; or (ii) on or before the first day
2 of October, whereupon the Department shall proceed to
3 administer and enforce the tax as of the first day of January
4 next following the filing.
5 (g) When certifying the amount of a monthly disbursement
6 to a county under this Section, the Department shall increase
7 or decrease the amounts by an amount necessary to offset any
8 miscalculation of previous disbursements. The offset amount
9 shall be the amount erroneously disbursed within the previous
10 6 months from the time a miscalculation is discovered.
11 (h) This Section may be cited as the "Special County
12 Occupation Tax For Public Safety Law".
13 (i) For purposes of this Section, "public safety"
14 includes but is not limited to fire fighting, police,
15 medical, ambulance, or other emergency services.
16 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
17 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
18 12-12-97; 90-562, eff. 12-16-97; 90-655, eff. 7-30-98;
19 90-689, eff. 7-31-98.)
20 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
21 Sec. 5-1007. Home Rule County Service Occupation Tax
22 Law. The corporate authorities of a home rule county may
23 impose a tax upon all persons engaged, in such county, in the
24 business of making sales of service at the same rate of tax
25 imposed pursuant to Section 5-1006 of the selling price of
26 all tangible personal property transferred by such servicemen
27 either in the form of tangible personal property or in the
28 form of real estate as an incident to a sale of service. If
29 imposed, such tax shall only be imposed in 1/4% increments.
30 On and after September 1, 1991, this additional tax may not
31 be imposed on the sales of food for human consumption which
32 is to be consumed off the premises where it is sold (other
33 than alcoholic beverages, soft drinks and food which has been
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1 prepared for immediate consumption) and prescription and
2 nonprescription medicines, drugs, medical appliances and
3 insulin, urine testing materials, syringes and needles used
4 by diabetics. The tax imposed by a home rule county pursuant
5 to this Section and all civil penalties that may be assessed
6 as an incident thereof shall be collected and enforced by the
7 State Department of Revenue. The certificate of registration
8 which is issued by the Department to a retailer under the
9 Retailers' Occupation Tax Act or under the Service Occupation
10 Tax Act shall permit such registrant to engage in a business
11 which is taxable under any ordinance or resolution enacted
12 pursuant to this Section without registering separately with
13 the Department under such ordinance or resolution or under
14 this Section. The Department shall have full power to
15 administer and enforce this Section; to collect all taxes and
16 penalties due hereunder; to dispose of taxes and penalties so
17 collected in the manner hereinafter provided; and to
18 determine all rights to credit memoranda arising on account
19 of the erroneous payment of tax or penalty hereunder. In the
20 administration of, and compliance with, this Section the
21 Department and persons who are subject to this Section shall
22 have the same rights, remedies, privileges, immunities,
23 powers and duties, and be subject to the same conditions,
24 restrictions, limitations, penalties and definitions of
25 terms, and employ the same modes of procedure, as are
26 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
27 respect to all provisions therein other than the State rate
28 of tax), 4 (except that the reference to the State shall be
29 to the taxing county), 5, 7, 8 (except that the jurisdiction
30 to which the tax shall be a debt to the extent indicated in
31 that Section 8 shall be the taxing county), 9 (except as to
32 the disposition of taxes and penalties collected, and except
33 that the returned merchandise credit for this county tax may
34 not be taken against any State tax), 10, 11, 12 (except the
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