100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0505

 

Introduced , by Rep. Norine K. Hammond

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that repair and replacement parts transferred as part of a goodwill repair of exempt farm machinery and equipment are also exempt from the taxes imposed under the Acts.


LRB100 05315 HLH 15326 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0505LRB100 05315 HLH 15326 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23    (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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1replacement parts for the machinery and equipment, including
2machinery and equipment purchased for lease, and including
3implements of husbandry defined in Section 1-130 of the
4Illinois Vehicle Code, farm machinery and agricultural
5chemical and fertilizer spreaders, and nurse wagons required to
6be registered under Section 3-809 of the Illinois Vehicle Code,
7but excluding other motor vehicles required to be registered
8under the Illinois Vehicle Code. Horticultural polyhouses or
9hoop houses used for propagating, growing, or overwintering
10plants shall be considered farm machinery and equipment under
11this item (11). Agricultural chemical tender tanks and dry
12boxes shall include units sold separately from a motor vehicle
13required to be licensed and units sold mounted on a motor
14vehicle required to be licensed if the selling price of the
15tender is separately stated.
16    Farm machinery and equipment shall include precision
17farming equipment that is installed or purchased to be
18installed on farm machinery and equipment including, but not
19limited to, tractors, harvesters, sprayers, planters, seeders,
20or spreaders. Precision farming equipment includes, but is not
21limited to, soil testing sensors, computers, monitors,
22software, global positioning and mapping systems, and other
23such equipment.
24    Farm machinery and equipment also includes computers,
25sensors, software, and related equipment used primarily in the
26computer-assisted operation of production agriculture

 

 

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6    Repair and replacement parts transferred as part of a
7goodwill repair of exempt farm machinery and equipment shall
8also be exempt from the tax imposed by this Act. For purposes
9of this item (11), "goodwill repair" means a repair made by a
10seller for no charge that a seller is not obligated to make.
11    (12) Until June 30, 2013, fuel and petroleum products sold
12to or used by an air common carrier, certified by the carrier
13to be used for consumption, shipment, or storage in the conduct
14of its business as an air common carrier, for a flight destined
15for or returning from a location or locations outside the
16United States without regard to previous or subsequent domestic
17stopovers.
18    Beginning July 1, 2013, fuel and petroleum products sold to
19or used by an air carrier, certified by the carrier to be used
20for consumption, shipment, or storage in the conduct of its
21business as an air common carrier, for a flight that (i) is
22engaged in foreign trade or is engaged in trade between the
23United States and any of its possessions and (ii) transports at
24least one individual or package for hire from the city of
25origination to the city of final destination on the same
26aircraft, without regard to a change in the flight number of

 

 

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1that aircraft.
2    (13) Proceeds of mandatory service charges separately
3stated on customers' bills for the purchase and consumption of
4food and beverages purchased at retail from a retailer, to the
5extent that the proceeds of the service charge are in fact
6turned over as tips or as a substitute for tips to the
7employees who participate directly in preparing, serving,
8hosting or cleaning up the food or beverage function with
9respect to which the service charge is imposed.
10    (14) Until July 1, 2003, oil field exploration, drilling,
11and production equipment, including (i) rigs and parts of rigs,
12rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
13tubular goods, including casing and drill strings, (iii) pumps
14and pump-jack units, (iv) storage tanks and flow lines, (v) any
15individual replacement part for oil field exploration,
16drilling, and production equipment, and (vi) machinery and
17equipment purchased for lease; but excluding motor vehicles
18required to be registered under the Illinois Vehicle Code.
19    (15) Photoprocessing machinery and equipment, including
20repair and replacement parts, both new and used, including that
21manufactured on special order, certified by the purchaser to be
22used primarily for photoprocessing, and including
23photoprocessing machinery and equipment purchased for lease.
24    (16) Coal and aggregate exploration, mining, off-highway
25hauling, processing, maintenance, and reclamation equipment,
26including replacement parts and equipment, and including

 

 

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1equipment purchased for lease, but excluding motor vehicles
2required to be registered under the Illinois Vehicle Code. The
3changes made to this Section by Public Act 97-767 apply on and
4after July 1, 2003, but no claim for credit or refund is
5allowed on or after August 16, 2013 (the effective date of
6Public Act 98-456) for such taxes paid during the period
7beginning July 1, 2003 and ending on August 16, 2013 (the
8effective date of Public Act 98-456).
9    (17) Until July 1, 2003, distillation machinery and
10equipment, sold as a unit or kit, assembled or installed by the
11retailer, certified by the user to be used only for the
12production of ethyl alcohol that will be used for consumption
13as motor fuel or as a component of motor fuel for the personal
14use of the user, and not subject to sale or resale.
15    (18) Manufacturing and assembling machinery and equipment
16used primarily in the process of manufacturing or assembling
17tangible personal property for wholesale or retail sale or
18lease, whether that sale or lease is made directly by the
19manufacturer or by some other person, whether the materials
20used in the process are owned by the manufacturer or some other
21person, or whether that sale or lease is made apart from or as
22an incident to the seller's engaging in the service occupation
23of producing machines, tools, dies, jigs, patterns, gauges, or
24other similar items of no commercial value on special order for
25a particular purchaser. The exemption provided by this
26paragraph (18) does not include machinery and equipment used in

 

 

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1(i) the generation of electricity for wholesale or retail sale;
2(ii) the generation or treatment of natural or artificial gas
3for wholesale or retail sale that is delivered to customers
4through pipes, pipelines, or mains; or (iii) the treatment of
5water for wholesale or retail sale that is delivered to
6customers through pipes, pipelines, or mains. The provisions of
7Public Act 98-583 are declaratory of existing law as to the
8meaning and scope of this exemption.
9    (19) Personal property delivered to a purchaser or
10purchaser's donee inside Illinois when the purchase order for
11that personal property was received by a florist located
12outside Illinois who has a florist located inside Illinois
13deliver the personal property.
14    (20) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (21) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (21) is exempt from the provisions
22of Section 3-90, and the exemption provided for under this item
23(21) applies for all periods beginning May 30, 1995, but no
24claim for credit or refund is allowed on or after January 1,
252008 for such taxes paid during the period beginning May 30,
262000 and ending on January 1, 2008.

 

 

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1    (22) Computers and communications equipment utilized for
2any hospital purpose and equipment used in the diagnosis,
3analysis, or treatment of hospital patients purchased by a
4lessor who leases the equipment, under a lease of one year or
5longer executed or in effect at the time the lessor would
6otherwise be subject to the tax imposed by this Act, to a
7hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of the
9Retailers' Occupation Tax Act. If the equipment is leased in a
10manner that does not qualify for this exemption or is used in
11any other non-exempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Service Use Tax Act, as the
13case may be, based on the fair market value of the property at
14the time the non-qualifying use occurs. No lessor shall collect
15or attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall have
20a legal right to claim a refund of that amount from the lessor.
21If, however, that amount is not refunded to the lessee for any
22reason, the lessor is liable to pay that amount to the
23Department.
24    (23) Personal property purchased by a lessor who leases the
25property, under a lease of one year or longer executed or in
26effect at the time the lessor would otherwise be subject to the

 

 

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1tax imposed by this Act, to a governmental body that has been
2issued an active sales tax exemption identification number by
3the Department under Section 1g of the Retailers' Occupation
4Tax Act. If the property is leased in a manner that does not
5qualify for this exemption or used in any other non-exempt
6manner, the lessor shall be liable for the tax imposed under
7this Act or the Service Use Tax Act, as the case may be, based
8on the fair market value of the property at the time the
9non-qualifying use occurs. No lessor shall collect or attempt
10to collect an amount (however designated) that purports to
11reimburse that lessor for the tax imposed by this Act or the
12Service Use Tax Act, as the case may be, if the tax has not been
13paid by the lessor. If a lessor improperly collects any such
14amount from the lessee, the lessee shall have a legal right to
15claim a refund of that amount from the lessor. If, however,
16that amount is not refunded to the lessee for any reason, the
17lessor is liable to pay that amount to the Department.
18    (24) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is donated for
21disaster relief to be used in a State or federally declared
22disaster area in Illinois or bordering Illinois by a
23manufacturer or retailer that is registered in this State to a
24corporation, society, association, foundation, or institution
25that has been issued a sales tax exemption identification
26number by the Department that assists victims of the disaster

 

 

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1who reside within the declared disaster area.
2    (25) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is used in the
5performance of infrastructure repairs in this State, including
6but not limited to municipal roads and streets, access roads,
7bridges, sidewalks, waste disposal systems, water and sewer
8line extensions, water distribution and purification
9facilities, storm water drainage and retention facilities, and
10sewage treatment facilities, resulting from a State or
11federally declared disaster in Illinois or bordering Illinois
12when such repairs are initiated on facilities located in the
13declared disaster area within 6 months after the disaster.
14    (26) Beginning July 1, 1999, game or game birds purchased
15at a "game breeding and hunting preserve area" as that term is
16used in the Wildlife Code. This paragraph is exempt from the
17provisions of Section 3-90.
18    (27) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the Department
22to be organized and operated exclusively for educational
23purposes. For purposes of this exemption, "a corporation,
24limited liability company, society, association, foundation,
25or institution organized and operated exclusively for
26educational purposes" means all tax-supported public schools,

 

 

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1private schools that offer systematic instruction in useful
2branches of learning by methods common to public schools and
3that compare favorably in their scope and intensity with the
4course of study presented in tax-supported schools, and
5vocational or technical schools or institutes organized and
6operated exclusively to provide a course of study of not less
7than 6 weeks duration and designed to prepare individuals to
8follow a trade or to pursue a manual, technical, mechanical,
9industrial, business, or commercial occupation.
10    (28) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-90.
24    (29) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and other

 

 

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1items, and replacement parts for these machines. Beginning
2January 1, 2002 and through June 30, 2003, machines and parts
3for machines used in commercial, coin-operated amusement and
4vending business if a use or occupation tax is paid on the
5gross receipts derived from the use of the commercial,
6coin-operated amusement and vending machines. This paragraph
7is exempt from the provisions of Section 3-90.
8    (30) Beginning January 1, 2001 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages, soft
11drinks, and food that has been prepared for immediate
12consumption) and prescription and nonprescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (31) Beginning on the effective date of this amendatory Act
22of the 92nd General Assembly, computers and communications
23equipment utilized for any hospital purpose and equipment used
24in the diagnosis, analysis, or treatment of hospital patients
25purchased by a lessor who leases the equipment, under a lease
26of one year or longer executed or in effect at the time the

 

 

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1lessor would otherwise be subject to the tax imposed by this
2Act, to a hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of the
4Retailers' Occupation Tax Act. If the equipment is leased in a
5manner that does not qualify for this exemption or is used in
6any other nonexempt manner, the lessor shall be liable for the
7tax imposed under this Act or the Service Use Tax Act, as the
8case may be, based on the fair market value of the property at
9the time the nonqualifying use occurs. No lessor shall collect
10or attempt to collect an amount (however designated) that
11purports to reimburse that lessor for the tax imposed by this
12Act or the Service Use Tax Act, as the case may be, if the tax
13has not been paid by the lessor. If a lessor improperly
14collects any such amount from the lessee, the lessee shall have
15a legal right to claim a refund of that amount from the lessor.
16If, however, that amount is not refunded to the lessee for any
17reason, the lessor is liable to pay that amount to the
18Department. This paragraph is exempt from the provisions of
19Section 3-90.
20    (32) Beginning on the effective date of this amendatory Act
21of the 92nd General Assembly, personal property purchased by a
22lessor who leases the property, under a lease of one year or
23longer executed or in effect at the time the lessor would
24otherwise be subject to the tax imposed by this Act, to a
25governmental body that has been issued an active sales tax
26exemption identification number by the Department under

 

 

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1Section 1g of the Retailers' Occupation Tax Act. If the
2property is leased in a manner that does not qualify for this
3exemption or used in any other nonexempt manner, the lessor
4shall be liable for the tax imposed under this Act or the
5Service Use Tax Act, as the case may be, based on the fair
6market value of the property at the time the nonqualifying use
7occurs. No lessor shall collect or attempt to collect an amount
8(however designated) that purports to reimburse that lessor for
9the tax imposed by this Act or the Service Use Tax Act, as the
10case may be, if the tax has not been paid by the lessor. If a
11lessor improperly collects any such amount from the lessee, the
12lessee shall have a legal right to claim a refund of that
13amount from the lessor. If, however, that amount is not
14refunded to the lessee for any reason, the lessor is liable to
15pay that amount to the Department. This paragraph is exempt
16from the provisions of Section 3-90.
17    (33) On and after July 1, 2003 and through June 30, 2004,
18the use in this State of motor vehicles of the second division
19with a gross vehicle weight in excess of 8,000 pounds and that
20are subject to the commercial distribution fee imposed under
21Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
221, 2004 and through June 30, 2005, the use in this State of
23motor vehicles of the second division: (i) with a gross vehicle
24weight rating in excess of 8,000 pounds; (ii) that are subject
25to the commercial distribution fee imposed under Section
263-815.1 of the Illinois Vehicle Code; and (iii) that are

 

 

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1primarily used for commercial purposes. Through June 30, 2005,
2this exemption applies to repair and replacement parts added
3after the initial purchase of such a motor vehicle if that
4motor vehicle is used in a manner that would qualify for the
5rolling stock exemption otherwise provided for in this Act. For
6purposes of this paragraph, the term "used for commercial
7purposes" means the transportation of persons or property in
8furtherance of any commercial or industrial enterprise,
9whether for-hire or not.
10    (34) Beginning January 1, 2008, tangible personal property
11used in the construction or maintenance of a community water
12supply, as defined under Section 3.145 of the Environmental
13Protection Act, that is operated by a not-for-profit
14corporation that holds a valid water supply permit issued under
15Title IV of the Environmental Protection Act. This paragraph is
16exempt from the provisions of Section 3-90.
17    (35) Beginning January 1, 2010, materials, parts,
18equipment, components, and furnishings incorporated into or
19upon an aircraft as part of the modification, refurbishment,
20completion, replacement, repair, or maintenance of the
21aircraft. This exemption includes consumable supplies used in
22the modification, refurbishment, completion, replacement,
23repair, and maintenance of aircraft, but excludes any
24materials, parts, equipment, components, and consumable
25supplies used in the modification, replacement, repair, and
26maintenance of aircraft engines or power plants, whether such

 

 

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1engines or power plants are installed or uninstalled upon any
2such aircraft. "Consumable supplies" include, but are not
3limited to, adhesive, tape, sandpaper, general purpose
4lubricants, cleaning solution, latex gloves, and protective
5films. This exemption applies only to the use of qualifying
6tangible personal property by persons who modify, refurbish,
7complete, repair, replace, or maintain aircraft and who (i)
8hold an Air Agency Certificate and are empowered to operate an
9approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations. The exemption does not include aircraft operated
13by a commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part 129
15of the Federal Aviation Regulations. The changes made to this
16paragraph (35) by Public Act 98-534 are declarative of existing
17law.
18    (36) Tangible personal property purchased by a
19public-facilities corporation, as described in Section
2011-65-10 of the Illinois Municipal Code, for purposes of
21constructing or furnishing a municipal convention hall, but
22only if the legal title to the municipal convention hall is
23transferred to the municipality without any further
24consideration by or on behalf of the municipality at the time
25of the completion of the municipal convention hall or upon the
26retirement or redemption of any bonds or other debt instruments

 

 

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1issued by the public-facilities corporation in connection with
2the development of the municipal convention hall. This
3exemption includes existing public-facilities corporations as
4provided in Section 11-65-25 of the Illinois Municipal Code.
5This paragraph is exempt from the provisions of Section 3-90.
6    (37) Beginning January 1, 2017, menstrual pads, tampons,
7and menstrual cups.
8(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
998-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
101-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
117-29-15; 99-855, eff. 8-19-16.)
 
12    Section 10. The Service Use Tax Act is amended by changing
13Section 3-5 as follows:
 
14    (35 ILCS 110/3-5)
15    Sec. 3-5. Exemptions. Use of the following tangible
16personal property is exempt from the tax imposed by this Act:
17    (1) Personal property purchased from a corporation,
18society, association, foundation, institution, or
19organization, other than a limited liability company, that is
20organized and operated as a not-for-profit service enterprise
21for the benefit of persons 65 years of age or older if the
22personal property was not purchased by the enterprise for the
23purpose of resale by the enterprise.
24    (2) Personal property purchased by a non-profit Illinois

 

 

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1county fair association for use in conducting, operating, or
2promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts or
4cultural organization that establishes, by proof required by
5the Department by rule, that it has received an exemption under
6Section 501(c)(3) of the Internal Revenue Code and that is
7organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after the effective date
14of this amendatory Act of the 92nd General Assembly, however,
15an entity otherwise eligible for this exemption shall not make
16tax-free purchases unless it has an active identification
17number issued by the Department.
18    (4) Legal tender, currency, medallions, or gold or silver
19coinage issued by the State of Illinois, the government of the
20United States of America, or the government of any foreign
21country, and bullion.
22    (5) Until July 1, 2003 and beginning again on September 1,
232004 through August 30, 2014, graphic arts machinery and
24equipment, including repair and replacement parts, both new and
25used, and including that manufactured on special order or
26purchased for lease, certified by the purchaser to be used

 

 

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1primarily for graphic arts production. Equipment includes
2chemicals or chemicals acting as catalysts but only if the
3chemicals or chemicals acting as catalysts effect a direct and
4immediate change upon a graphic arts product.
5    (6) Personal property purchased from a teacher-sponsored
6student organization affiliated with an elementary or
7secondary school located in Illinois.
8    (7) Farm machinery and equipment, both new and used,
9including that manufactured on special order, certified by the
10purchaser to be used primarily for production agriculture or
11State or federal agricultural programs, including individual
12replacement parts for the machinery and equipment, including
13machinery and equipment purchased for lease, and including
14implements of husbandry defined in Section 1-130 of the
15Illinois Vehicle Code, farm machinery and agricultural
16chemical and fertilizer spreaders, and nurse wagons required to
17be registered under Section 3-809 of the Illinois Vehicle Code,
18but excluding other motor vehicles required to be registered
19under the Illinois Vehicle Code. Horticultural polyhouses or
20hoop houses used for propagating, growing, or overwintering
21plants shall be considered farm machinery and equipment under
22this item (7). Agricultural chemical tender tanks and dry boxes
23shall include units sold separately from a motor vehicle
24required to be licensed and units sold mounted on a motor
25vehicle required to be licensed if the selling price of the
26tender is separately stated.

 

 

HB0505- 21 -LRB100 05315 HLH 15326 b

1    Farm machinery and equipment shall include precision
2farming equipment that is installed or purchased to be
3installed on farm machinery and equipment including, but not
4limited to, tractors, harvesters, sprayers, planters, seeders,
5or spreaders. Precision farming equipment includes, but is not
6limited to, soil testing sensors, computers, monitors,
7software, global positioning and mapping systems, and other
8such equipment.
9    Farm machinery and equipment also includes computers,
10sensors, software, and related equipment used primarily in the
11computer-assisted operation of production agriculture
12facilities, equipment, and activities such as, but not limited
13to, the collection, monitoring, and correlation of animal and
14crop data for the purpose of formulating animal diets and
15agricultural chemicals. This item (7) is exempt from the
16provisions of Section 3-75.
17    Repair and replacement parts transferred as part of a
18goodwill repair of exempt farm machinery and equipment shall
19also be exempt from the tax imposed by this Act. For purposes
20of this item (7), "goodwill repair" means a repair made by a
21seller for no charge that a seller is not obligated to make.
22    (8) Until June 30, 2013, fuel and petroleum products sold
23to or used by an air common carrier, certified by the carrier
24to be used for consumption, shipment, or storage in the conduct
25of its business as an air common carrier, for a flight destined
26for or returning from a location or locations outside the

 

 

HB0505- 22 -LRB100 05315 HLH 15326 b

1United States without regard to previous or subsequent domestic
2stopovers.
3    Beginning July 1, 2013, fuel and petroleum products sold to
4or used by an air carrier, certified by the carrier to be used
5for consumption, shipment, or storage in the conduct of its
6business as an air common carrier, for a flight that (i) is
7engaged in foreign trade or is engaged in trade between the
8United States and any of its possessions and (ii) transports at
9least one individual or package for hire from the city of
10origination to the city of final destination on the same
11aircraft, without regard to a change in the flight number of
12that aircraft.
13    (9) Proceeds of mandatory service charges separately
14stated on customers' bills for the purchase and consumption of
15food and beverages acquired as an incident to the purchase of a
16service from a serviceman, to the extent that the proceeds of
17the service charge are in fact turned over as tips or as a
18substitute for tips to the employees who participate directly
19in preparing, serving, hosting or cleaning up the food or
20beverage function with respect to which the service charge is
21imposed.
22    (10) Until July 1, 2003, oil field exploration, drilling,
23and production equipment, including (i) rigs and parts of rigs,
24rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
25tubular goods, including casing and drill strings, (iii) pumps
26and pump-jack units, (iv) storage tanks and flow lines, (v) any

 

 

HB0505- 23 -LRB100 05315 HLH 15326 b

1individual replacement part for oil field exploration,
2drilling, and production equipment, and (vi) machinery and
3equipment purchased for lease; but excluding motor vehicles
4required to be registered under the Illinois Vehicle Code.
5    (11) Proceeds from the sale of photoprocessing machinery
6and equipment, including repair and replacement parts, both new
7and used, including that manufactured on special order,
8certified by the purchaser to be used primarily for
9photoprocessing, and including photoprocessing machinery and
10equipment purchased for lease.
11    (12) Coal and aggregate exploration, mining, off-highway
12hauling, processing, maintenance, and reclamation equipment,
13including replacement parts and equipment, and including
14equipment purchased for lease, but excluding motor vehicles
15required to be registered under the Illinois Vehicle Code. The
16changes made to this Section by Public Act 97-767 apply on and
17after July 1, 2003, but no claim for credit or refund is
18allowed on or after August 16, 2013 (the effective date of
19Public Act 98-456) for such taxes paid during the period
20beginning July 1, 2003 and ending on August 16, 2013 (the
21effective date of Public Act 98-456).
22    (13) Semen used for artificial insemination of livestock
23for direct agricultural production.
24    (14) Horses, or interests in horses, registered with and
25meeting the requirements of any of the Arabian Horse Club
26Registry of America, Appaloosa Horse Club, American Quarter

 

 

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1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (14) is exempt from the provisions
4of Section 3-75, and the exemption provided for under this item
5(14) applies for all periods beginning May 30, 1995, but no
6claim for credit or refund is allowed on or after the effective
7date of this amendatory Act of the 95th General Assembly for
8such taxes paid during the period beginning May 30, 2000 and
9ending on the effective date of this amendatory Act of the 95th
10General Assembly.
11    (15) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients purchased by a
14lessor who leases the equipment, under a lease of one year or
15longer executed or in effect at the time the lessor would
16otherwise be subject to the tax imposed by this Act, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of the
19Retailers' Occupation Tax Act. If the equipment is leased in a
20manner that does not qualify for this exemption or is used in
21any other non-exempt manner, the lessor shall be liable for the
22tax imposed under this Act or the Use Tax Act, as the case may
23be, based on the fair market value of the property at the time
24the non-qualifying use occurs. No lessor shall collect or
25attempt to collect an amount (however designated) that purports
26to reimburse that lessor for the tax imposed by this Act or the

 

 

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1Use Tax Act, as the case may be, if the tax has not been paid by
2the lessor. If a lessor improperly collects any such amount
3from the lessee, the lessee shall have a legal right to claim a
4refund of that amount from the lessor. If, however, that amount
5is not refunded to the lessee for any reason, the lessor is
6liable to pay that amount to the Department.
7    (16) Personal property purchased by a lessor who leases the
8property, under a lease of one year or longer executed or in
9effect at the time the lessor would otherwise be subject to the
10tax imposed by this Act, to a governmental body that has been
11issued an active tax exemption identification number by the
12Department under Section 1g of the Retailers' Occupation Tax
13Act. If the property is leased in a manner that does not
14qualify for this exemption or is used in any other non-exempt
15manner, the lessor shall be liable for the tax imposed under
16this Act or the Use Tax Act, as the case may be, based on the
17fair market value of the property at the time the
18non-qualifying use occurs. No lessor shall collect or attempt
19to collect an amount (however designated) that purports to
20reimburse that lessor for the tax imposed by this Act or the
21Use Tax Act, as the case may be, if the tax has not been paid by
22the lessor. If a lessor improperly collects any such amount
23from the lessee, the lessee shall have a legal right to claim a
24refund of that amount from the lessor. If, however, that amount
25is not refunded to the lessee for any reason, the lessor is
26liable to pay that amount to the Department.

 

 

HB0505- 26 -LRB100 05315 HLH 15326 b

1    (17) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is donated for
4disaster relief to be used in a State or federally declared
5disaster area in Illinois or bordering Illinois by a
6manufacturer or retailer that is registered in this State to a
7corporation, society, association, foundation, or institution
8that has been issued a sales tax exemption identification
9number by the Department that assists victims of the disaster
10who reside within the declared disaster area.
11    (18) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is used in the
14performance of infrastructure repairs in this State, including
15but not limited to municipal roads and streets, access roads,
16bridges, sidewalks, waste disposal systems, water and sewer
17line extensions, water distribution and purification
18facilities, storm water drainage and retention facilities, and
19sewage treatment facilities, resulting from a State or
20federally declared disaster in Illinois or bordering Illinois
21when such repairs are initiated on facilities located in the
22declared disaster area within 6 months after the disaster.
23    (19) Beginning July 1, 1999, game or game birds purchased
24at a "game breeding and hunting preserve area" as that term is
25used in the Wildlife Code. This paragraph is exempt from the
26provisions of Section 3-75.

 

 

HB0505- 27 -LRB100 05315 HLH 15326 b

1    (20) A motor vehicle, as that term is defined in Section
21-146 of the Illinois Vehicle Code, that is donated to a
3corporation, limited liability company, society, association,
4foundation, or institution that is determined by the Department
5to be organized and operated exclusively for educational
6purposes. For purposes of this exemption, "a corporation,
7limited liability company, society, association, foundation,
8or institution organized and operated exclusively for
9educational purposes" means all tax-supported public schools,
10private schools that offer systematic instruction in useful
11branches of learning by methods common to public schools and
12that compare favorably in their scope and intensity with the
13course of study presented in tax-supported schools, and
14vocational or technical schools or institutes organized and
15operated exclusively to provide a course of study of not less
16than 6 weeks duration and designed to prepare individuals to
17follow a trade or to pursue a manual, technical, mechanical,
18industrial, business, or commercial occupation.
19    (21) Beginning January 1, 2000, personal property,
20including food, purchased through fundraising events for the
21benefit of a public or private elementary or secondary school,
22a group of those schools, or one or more school districts if
23the events are sponsored by an entity recognized by the school
24district that consists primarily of volunteers and includes
25parents and teachers of the school children. This paragraph
26does not apply to fundraising events (i) for the benefit of

 

 

HB0505- 28 -LRB100 05315 HLH 15326 b

1private home instruction or (ii) for which the fundraising
2entity purchases the personal property sold at the events from
3another individual or entity that sold the property for the
4purpose of resale by the fundraising entity and that profits
5from the sale to the fundraising entity. This paragraph is
6exempt from the provisions of Section 3-75.
7    (22) Beginning January 1, 2000 and through December 31,
82001, new or used automatic vending machines that prepare and
9serve hot food and beverages, including coffee, soup, and other
10items, and replacement parts for these machines. Beginning
11January 1, 2002 and through June 30, 2003, machines and parts
12for machines used in commercial, coin-operated amusement and
13vending business if a use or occupation tax is paid on the
14gross receipts derived from the use of the commercial,
15coin-operated amusement and vending machines. This paragraph
16is exempt from the provisions of Section 3-75.
17    (23) Beginning August 23, 2001 and through June 30, 2016,
18food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages, soft
20drinks, and food that has been prepared for immediate
21consumption) and prescription and nonprescription medicines,
22drugs, medical appliances, and insulin, urine testing
23materials, syringes, and needles used by diabetics, for human
24use, when purchased for use by a person receiving medical
25assistance under Article V of the Illinois Public Aid Code who
26resides in a licensed long-term care facility, as defined in

 

 

HB0505- 29 -LRB100 05315 HLH 15326 b

1the Nursing Home Care Act, or in a licensed facility as defined
2in the ID/DD Community Care Act, the MC/DD Act, or the
3Specialized Mental Health Rehabilitation Act of 2013.
4    (24) Beginning on the effective date of this amendatory Act
5of the 92nd General Assembly, computers and communications
6equipment utilized for any hospital purpose and equipment used
7in the diagnosis, analysis, or treatment of hospital patients
8purchased by a lessor who leases the equipment, under a lease
9of one year or longer executed or in effect at the time the
10lessor would otherwise be subject to the tax imposed by this
11Act, to a hospital that has been issued an active tax exemption
12identification number by the Department under Section 1g of the
13Retailers' Occupation Tax Act. If the equipment is leased in a
14manner that does not qualify for this exemption or is used in
15any other nonexempt manner, the lessor shall be liable for the
16tax imposed under this Act or the Use Tax Act, as the case may
17be, based on the fair market value of the property at the time
18the nonqualifying use occurs. No lessor shall collect or
19attempt to collect an amount (however designated) that purports
20to reimburse that lessor for the tax imposed by this Act or the
21Use Tax Act, as the case may be, if the tax has not been paid by
22the lessor. If a lessor improperly collects any such amount
23from the lessee, the lessee shall have a legal right to claim a
24refund of that amount from the lessor. If, however, that amount
25is not refunded to the lessee for any reason, the lessor is
26liable to pay that amount to the Department. This paragraph is

 

 

HB0505- 30 -LRB100 05315 HLH 15326 b

1exempt from the provisions of Section 3-75.
2    (25) Beginning on the effective date of this amendatory Act
3of the 92nd General Assembly, personal property purchased by a
4lessor who leases the property, under a lease of one year or
5longer executed or in effect at the time the lessor would
6otherwise be subject to the tax imposed by this Act, to a
7governmental body that has been issued an active tax exemption
8identification number by the Department under Section 1g of the
9Retailers' Occupation Tax Act. If the property is leased in a
10manner that does not qualify for this exemption or is used in
11any other nonexempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Use Tax Act, as the case may
13be, based on the fair market value of the property at the time
14the nonqualifying use occurs. No lessor shall collect or
15attempt to collect an amount (however designated) that purports
16to reimburse that lessor for the tax imposed by this Act or the
17Use Tax Act, as the case may be, if the tax has not been paid by
18the lessor. If a lessor improperly collects any such amount
19from the lessee, the lessee shall have a legal right to claim a
20refund of that amount from the lessor. If, however, that amount
21is not refunded to the lessee for any reason, the lessor is
22liable to pay that amount to the Department. This paragraph is
23exempt from the provisions of Section 3-75.
24    (26) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

HB0505- 31 -LRB100 05315 HLH 15326 b

1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued under
3Title IV of the Environmental Protection Act. This paragraph is
4exempt from the provisions of Section 3-75.
5    (27) Beginning January 1, 2010, materials, parts,
6equipment, components, and furnishings incorporated into or
7upon an aircraft as part of the modification, refurbishment,
8completion, replacement, repair, or maintenance of the
9aircraft. This exemption includes consumable supplies used in
10the modification, refurbishment, completion, replacement,
11repair, and maintenance of aircraft, but excludes any
12materials, parts, equipment, components, and consumable
13supplies used in the modification, replacement, repair, and
14maintenance of aircraft engines or power plants, whether such
15engines or power plants are installed or uninstalled upon any
16such aircraft. "Consumable supplies" include, but are not
17limited to, adhesive, tape, sandpaper, general purpose
18lubricants, cleaning solution, latex gloves, and protective
19films. This exemption applies only to the use of qualifying
20tangible personal property transferred incident to the
21modification, refurbishment, completion, replacement, repair,
22or maintenance of aircraft by persons who (i) hold an Air
23Agency Certificate and are empowered to operate an approved
24repair station by the Federal Aviation Administration, (ii)
25have a Class IV Rating, and (iii) conduct operations in
26accordance with Part 145 of the Federal Aviation Regulations.

 

 

HB0505- 32 -LRB100 05315 HLH 15326 b

1The exemption does not include aircraft operated by a
2commercial air carrier providing scheduled passenger air
3service pursuant to authority issued under Part 121 or Part 129
4of the Federal Aviation Regulations. The changes made to this
5paragraph (27) by Public Act 98-534 are declarative of existing
6law.
7    (28) Tangible personal property purchased by a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt instruments
16issued by the public-facilities corporation in connection with
17the development of the municipal convention hall. This
18exemption includes existing public-facilities corporations as
19provided in Section 11-65-25 of the Illinois Municipal Code.
20This paragraph is exempt from the provisions of Section 3-75.
21    (29) Beginning January 1, 2017, menstrual pads, tampons,
22and menstrual cups.
23(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2498-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
257-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
 

 

 

HB0505- 33 -LRB100 05315 HLH 15326 b

1    Section 15. The Service Occupation Tax Act is amended by
2changing Section 3-5 as follows:
 
3    (35 ILCS 115/3-5)
4    Sec. 3-5. Exemptions. The following tangible personal
5property is exempt from the tax imposed by this Act:
6    (1) Personal property sold by a corporation, society,
7association, foundation, institution, or organization, other
8than a limited liability company, that is organized and
9operated as a not-for-profit service enterprise for the benefit
10of persons 65 years of age or older if the personal property
11was not purchased by the enterprise for the purpose of resale
12by the enterprise.
13    (2) Personal property purchased by a not-for-profit
14Illinois county fair association for use in conducting,
15operating, or promoting the county fair.
16    (3) Personal property purchased by any not-for-profit arts
17or cultural organization that establishes, by proof required by
18the Department by rule, that it has received an exemption under
19Section 501(c)(3) of the Internal Revenue Code and that is
20organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service
25organizations, local arts councils, visual arts organizations,

 

 

HB0505- 34 -LRB100 05315 HLH 15326 b

1and media arts organizations. On and after the effective date
2of this amendatory Act of the 92nd General Assembly, however,
3an entity otherwise eligible for this exemption shall not make
4tax-free purchases unless it has an active identification
5number issued by the Department.
6    (4) Legal tender, currency, medallions, or gold or silver
7coinage issued by the State of Illinois, the government of the
8United States of America, or the government of any foreign
9country, and bullion.
10    (5) Until July 1, 2003 and beginning again on September 1,
112004 through August 30, 2014, graphic arts machinery and
12equipment, including repair and replacement parts, both new and
13used, and including that manufactured on special order or
14purchased for lease, certified by the purchaser to be used
15primarily for graphic arts production. Equipment includes
16chemicals or chemicals acting as catalysts but only if the
17chemicals or chemicals acting as catalysts effect a direct and
18immediate change upon a graphic arts product.
19    (6) Personal property sold by a teacher-sponsored student
20organization affiliated with an elementary or secondary school
21located in Illinois.
22    (7) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or
25State or federal agricultural programs, including individual
26replacement parts for the machinery and equipment, including

 

 

HB0505- 35 -LRB100 05315 HLH 15326 b

1machinery and equipment purchased for lease, and including
2implements of husbandry defined in Section 1-130 of the
3Illinois Vehicle Code, farm machinery and agricultural
4chemical and fertilizer spreaders, and nurse wagons required to
5be registered under Section 3-809 of the Illinois Vehicle Code,
6but excluding other motor vehicles required to be registered
7under the Illinois Vehicle Code. Horticultural polyhouses or
8hoop houses used for propagating, growing, or overwintering
9plants shall be considered farm machinery and equipment under
10this item (7). Agricultural chemical tender tanks and dry boxes
11shall include units sold separately from a motor vehicle
12required to be licensed and units sold mounted on a motor
13vehicle required to be licensed if the selling price of the
14tender is separately stated.
15    Farm machinery and equipment shall include precision
16farming equipment that is installed or purchased to be
17installed on farm machinery and equipment including, but not
18limited to, tractors, harvesters, sprayers, planters, seeders,
19or spreaders. Precision farming equipment includes, but is not
20limited to, soil testing sensors, computers, monitors,
21software, global positioning and mapping systems, and other
22such equipment.
23    Farm machinery and equipment also includes computers,
24sensors, software, and related equipment used primarily in the
25computer-assisted operation of production agriculture
26facilities, equipment, and activities such as, but not limited

 

 

HB0505- 36 -LRB100 05315 HLH 15326 b

1to, the collection, monitoring, and correlation of animal and
2crop data for the purpose of formulating animal diets and
3agricultural chemicals. This item (7) is exempt from the
4provisions of Section 3-55.
5    Repair and replacement parts transferred as part of a
6goodwill repair of exempt farm machinery and equipment shall
7also be exempt from the tax imposed by this Act. For purposes
8of this item (7), "goodwill repair" means a repair made by a
9seller for no charge that a seller is not obligated to make.
10    (8) Until June 30, 2013, fuel and petroleum products sold
11to or used by an air common carrier, certified by the carrier
12to be used for consumption, shipment, or storage in the conduct
13of its business as an air common carrier, for a flight destined
14for or returning from a location or locations outside the
15United States without regard to previous or subsequent domestic
16stopovers.
17    Beginning July 1, 2013, fuel and petroleum products sold to
18or used by an air carrier, certified by the carrier to be used
19for consumption, shipment, or storage in the conduct of its
20business as an air common carrier, for a flight that (i) is
21engaged in foreign trade or is engaged in trade between the
22United States and any of its possessions and (ii) transports at
23least one individual or package for hire from the city of
24origination to the city of final destination on the same
25aircraft, without regard to a change in the flight number of
26that aircraft.

 

 

HB0505- 37 -LRB100 05315 HLH 15326 b

1    (9) Proceeds of mandatory service charges separately
2stated on customers' bills for the purchase and consumption of
3food and beverages, to the extent that the proceeds of the
4service charge are in fact turned over as tips or as a
5substitute for tips to the employees who participate directly
6in preparing, serving, hosting or cleaning up the food or
7beverage function with respect to which the service charge is
8imposed.
9    (10) Until July 1, 2003, oil field exploration, drilling,
10and production equipment, including (i) rigs and parts of rigs,
11rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
12tubular goods, including casing and drill strings, (iii) pumps
13and pump-jack units, (iv) storage tanks and flow lines, (v) any
14individual replacement part for oil field exploration,
15drilling, and production equipment, and (vi) machinery and
16equipment purchased for lease; but excluding motor vehicles
17required to be registered under the Illinois Vehicle Code.
18    (11) Photoprocessing machinery and equipment, including
19repair and replacement parts, both new and used, including that
20manufactured on special order, certified by the purchaser to be
21used primarily for photoprocessing, and including
22photoprocessing machinery and equipment purchased for lease.
23    (12) Coal and aggregate exploration, mining, off-highway
24hauling, processing, maintenance, and reclamation equipment,
25including replacement parts and equipment, and including
26equipment purchased for lease, but excluding motor vehicles

 

 

HB0505- 38 -LRB100 05315 HLH 15326 b

1required to be registered under the Illinois Vehicle Code. The
2changes made to this Section by Public Act 97-767 apply on and
3after July 1, 2003, but no claim for credit or refund is
4allowed on or after August 16, 2013 (the effective date of
5Public Act 98-456) for such taxes paid during the period
6beginning July 1, 2003 and ending on August 16, 2013 (the
7effective date of Public Act 98-456).
8    (13) Beginning January 1, 1992 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages, soft
11drinks and food that has been prepared for immediate
12consumption) and prescription and non-prescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (14) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (15) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

 

 

HB0505- 39 -LRB100 05315 HLH 15326 b

1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (15) is exempt from the provisions
3of Section 3-55, and the exemption provided for under this item
4(15) applies for all periods beginning May 30, 1995, but no
5claim for credit or refund is allowed on or after January 1,
62008 (the effective date of Public Act 95-88) for such taxes
7paid during the period beginning May 30, 2000 and ending on
8January 1, 2008 (the effective date of Public Act 95-88).
9    (16) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients sold to a lessor
12who leases the equipment, under a lease of one year or longer
13executed or in effect at the time of the purchase, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of the
16Retailers' Occupation Tax Act.
17    (17) Personal property sold to a lessor who leases the
18property, under a lease of one year or longer executed or in
19effect at the time of the purchase, to a governmental body that
20has been issued an active tax exemption identification number
21by the Department under Section 1g of the Retailers' Occupation
22Tax Act.
23    (18) Beginning with taxable years ending on or after
24December 31, 1995 and ending with taxable years ending on or
25before December 31, 2004, personal property that is donated for
26disaster relief to be used in a State or federally declared

 

 

HB0505- 40 -LRB100 05315 HLH 15326 b

1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (19) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in the
10performance of infrastructure repairs in this State, including
11but not limited to municipal roads and streets, access roads,
12bridges, sidewalks, waste disposal systems, water and sewer
13line extensions, water distribution and purification
14facilities, storm water drainage and retention facilities, and
15sewage treatment facilities, resulting from a State or
16federally declared disaster in Illinois or bordering Illinois
17when such repairs are initiated on facilities located in the
18declared disaster area within 6 months after the disaster.
19    (20) Beginning July 1, 1999, game or game birds sold at a
20"game breeding and hunting preserve area" as that term is used
21in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-55.
23    (21) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the Department

 

 

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1to be organized and operated exclusively for educational
2purposes. For purposes of this exemption, "a corporation,
3limited liability company, society, association, foundation,
4or institution organized and operated exclusively for
5educational purposes" means all tax-supported public schools,
6private schools that offer systematic instruction in useful
7branches of learning by methods common to public schools and
8that compare favorably in their scope and intensity with the
9course of study presented in tax-supported schools, and
10vocational or technical schools or institutes organized and
11operated exclusively to provide a course of study of not less
12than 6 weeks duration and designed to prepare individuals to
13follow a trade or to pursue a manual, technical, mechanical,
14industrial, business, or commercial occupation.
15    (22) Beginning January 1, 2000, personal property,
16including food, purchased through fundraising events for the
17benefit of a public or private elementary or secondary school,
18a group of those schools, or one or more school districts if
19the events are sponsored by an entity recognized by the school
20district that consists primarily of volunteers and includes
21parents and teachers of the school children. This paragraph
22does not apply to fundraising events (i) for the benefit of
23private home instruction or (ii) for which the fundraising
24entity purchases the personal property sold at the events from
25another individual or entity that sold the property for the
26purpose of resale by the fundraising entity and that profits

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-55.
3    (23) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and other
6items, and replacement parts for these machines. Beginning
7January 1, 2002 and through June 30, 2003, machines and parts
8for machines used in commercial, coin-operated amusement and
9vending business if a use or occupation tax is paid on the
10gross receipts derived from the use of the commercial,
11coin-operated amusement and vending machines. This paragraph
12is exempt from the provisions of Section 3-55.
13    (24) Beginning on the effective date of this amendatory Act
14of the 92nd General Assembly, computers and communications
15equipment utilized for any hospital purpose and equipment used
16in the diagnosis, analysis, or treatment of hospital patients
17sold to a lessor who leases the equipment, under a lease of one
18year or longer executed or in effect at the time of the
19purchase, to a hospital that has been issued an active tax
20exemption identification number by the Department under
21Section 1g of the Retailers' Occupation Tax Act. This paragraph
22is exempt from the provisions of Section 3-55.
23    (25) Beginning on the effective date of this amendatory Act
24of the 92nd General Assembly, personal property sold to a
25lessor who leases the property, under a lease of one year or
26longer executed or in effect at the time of the purchase, to a

 

 

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1governmental body that has been issued an active tax exemption
2identification number by the Department under Section 1g of the
3Retailers' Occupation Tax Act. This paragraph is exempt from
4the provisions of Section 3-55.
5    (26) Beginning on January 1, 2002 and through June 30,
62016, tangible personal property purchased from an Illinois
7retailer by a taxpayer engaged in centralized purchasing
8activities in Illinois who will, upon receipt of the property
9in Illinois, temporarily store the property in Illinois (i) for
10the purpose of subsequently transporting it outside this State
11for use or consumption thereafter solely outside this State or
12(ii) for the purpose of being processed, fabricated, or
13manufactured into, attached to, or incorporated into other
14tangible personal property to be transported outside this State
15and thereafter used or consumed solely outside this State. The
16Director of Revenue shall, pursuant to rules adopted in
17accordance with the Illinois Administrative Procedure Act,
18issue a permit to any taxpayer in good standing with the
19Department who is eligible for the exemption under this
20paragraph (26). The permit issued under this paragraph (26)
21shall authorize the holder, to the extent and in the manner
22specified in the rules adopted under this Act, to purchase
23tangible personal property from a retailer exempt from the
24taxes imposed by this Act. Taxpayers shall maintain all
25necessary books and records to substantiate the use and
26consumption of all such tangible personal property outside of

 

 

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1the State of Illinois.
2    (27) Beginning January 1, 2008, tangible personal property
3used in the construction or maintenance of a community water
4supply, as defined under Section 3.145 of the Environmental
5Protection Act, that is operated by a not-for-profit
6corporation that holds a valid water supply permit issued under
7Title IV of the Environmental Protection Act. This paragraph is
8exempt from the provisions of Section 3-55.
9    (28) Tangible personal property sold to a
10public-facilities corporation, as described in Section
1111-65-10 of the Illinois Municipal Code, for purposes of
12constructing or furnishing a municipal convention hall, but
13only if the legal title to the municipal convention hall is
14transferred to the municipality without any further
15consideration by or on behalf of the municipality at the time
16of the completion of the municipal convention hall or upon the
17retirement or redemption of any bonds or other debt instruments
18issued by the public-facilities corporation in connection with
19the development of the municipal convention hall. This
20exemption includes existing public-facilities corporations as
21provided in Section 11-65-25 of the Illinois Municipal Code.
22This paragraph is exempt from the provisions of Section 3-55.
23    (29) Beginning January 1, 2010, materials, parts,
24equipment, components, and furnishings incorporated into or
25upon an aircraft as part of the modification, refurbishment,
26completion, replacement, repair, or maintenance of the

 

 

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1aircraft. This exemption includes consumable supplies used in
2the modification, refurbishment, completion, replacement,
3repair, and maintenance of aircraft, but excludes any
4materials, parts, equipment, components, and consumable
5supplies used in the modification, replacement, repair, and
6maintenance of aircraft engines or power plants, whether such
7engines or power plants are installed or uninstalled upon any
8such aircraft. "Consumable supplies" include, but are not
9limited to, adhesive, tape, sandpaper, general purpose
10lubricants, cleaning solution, latex gloves, and protective
11films. This exemption applies only to the transfer of
12qualifying tangible personal property incident to the
13modification, refurbishment, completion, replacement, repair,
14or maintenance of an aircraft by persons who (i) hold an Air
15Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations. The changes made to this
23paragraph (29) by Public Act 98-534 are declarative of existing
24law.
25    (30) Beginning January 1, 2017, menstrual pads, tampons,
26and menstrual cups.

 

 

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1(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
298-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
37-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
 
4    Section 20. The Retailers' Occupation Tax Act is amended by
5changing Section 2-5 as follows:
 
6    (35 ILCS 120/2-5)
7    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
8sale of the following tangible personal property are exempt
9from the tax imposed by this Act:
10    (1) Farm chemicals.
11    (2) Farm machinery and equipment, both new and used,
12including that manufactured on special order, certified by the
13purchaser to be used primarily for production agriculture or
14State or federal agricultural programs, including individual
15replacement parts for the machinery and equipment, including
16machinery and equipment purchased for lease, and including
17implements of husbandry defined in Section 1-130 of the
18Illinois Vehicle Code, farm machinery and agricultural
19chemical and fertilizer spreaders, and nurse wagons required to
20be registered under Section 3-809 of the Illinois Vehicle Code,
21but excluding other motor vehicles required to be registered
22under the Illinois Vehicle Code. Horticultural polyhouses or
23hoop houses used for propagating, growing, or overwintering
24plants shall be considered farm machinery and equipment under

 

 

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1this item (2). Agricultural chemical tender tanks and dry boxes
2shall include units sold separately from a motor vehicle
3required to be licensed and units sold mounted on a motor
4vehicle required to be licensed, if the selling price of the
5tender is separately stated.
6    Farm machinery and equipment shall include precision
7farming equipment that is installed or purchased to be
8installed on farm machinery and equipment including, but not
9limited to, tractors, harvesters, sprayers, planters, seeders,
10or spreaders. Precision farming equipment includes, but is not
11limited to, soil testing sensors, computers, monitors,
12software, global positioning and mapping systems, and other
13such equipment.
14    Farm machinery and equipment also includes computers,
15sensors, software, and related equipment used primarily in the
16computer-assisted operation of production agriculture
17facilities, equipment, and activities such as, but not limited
18to, the collection, monitoring, and correlation of animal and
19crop data for the purpose of formulating animal diets and
20agricultural chemicals. This item (2) is exempt from the
21provisions of Section 2-70.
22    Repair and replacement parts transferred as part of a
23goodwill repair of exempt farm machinery and equipment shall
24also be exempt from the tax imposed by this Act. For purposes
25of this item (2), "goodwill repair" means a repair made by a
26seller for no charge that a seller is not obligated to make.

 

 

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1    (3) Until July 1, 2003, distillation machinery and
2equipment, sold as a unit or kit, assembled or installed by the
3retailer, certified by the user to be used only for the
4production of ethyl alcohol that will be used for consumption
5as motor fuel or as a component of motor fuel for the personal
6use of the user, and not subject to sale or resale.
7    (4) Until July 1, 2003 and beginning again September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new and
10used, and including that manufactured on special order or
11purchased for lease, certified by the purchaser to be used
12primarily for graphic arts production. Equipment includes
13chemicals or chemicals acting as catalysts but only if the
14chemicals or chemicals acting as catalysts effect a direct and
15immediate change upon a graphic arts product.
16    (5) A motor vehicle that is used for automobile renting, as
17defined in the Automobile Renting Occupation and Use Tax Act.
18This paragraph is exempt from the provisions of Section 2-70.
19    (6) Personal property sold by a teacher-sponsored student
20organization affiliated with an elementary or secondary school
21located in Illinois.
22    (7) Until July 1, 2003, proceeds of that portion of the
23selling price of a passenger car the sale of which is subject
24to the Replacement Vehicle Tax.
25    (8) Personal property sold to an Illinois county fair
26association for use in conducting, operating, or promoting the

 

 

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1county fair.
2    (9) Personal property sold to a not-for-profit arts or
3cultural organization that establishes, by proof required by
4the Department by rule, that it has received an exemption under
5Section 501(c)(3) of the Internal Revenue Code and that is
6organized and operated primarily for the presentation or
7support of arts or cultural programming, activities, or
8services. These organizations include, but are not limited to,
9music and dramatic arts organizations such as symphony
10orchestras and theatrical groups, arts and cultural service
11organizations, local arts councils, visual arts organizations,
12and media arts organizations. On and after the effective date
13of this amendatory Act of the 92nd General Assembly, however,
14an entity otherwise eligible for this exemption shall not make
15tax-free purchases unless it has an active identification
16number issued by the Department.
17    (10) Personal property sold by a corporation, society,
18association, foundation, institution, or organization, other
19than a limited liability company, that is organized and
20operated as a not-for-profit service enterprise for the benefit
21of persons 65 years of age or older if the personal property
22was not purchased by the enterprise for the purpose of resale
23by the enterprise.
24    (11) Personal property sold to a governmental body, to a
25corporation, society, association, foundation, or institution
26organized and operated exclusively for charitable, religious,

 

 

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1or educational purposes, or to a not-for-profit corporation,
2society, association, foundation, institution, or organization
3that has no compensated officers or employees and that is
4organized and operated primarily for the recreation of persons
555 years of age or older. A limited liability company may
6qualify for the exemption under this paragraph only if the
7limited liability company is organized and operated
8exclusively for educational purposes. On and after July 1,
91987, however, no entity otherwise eligible for this exemption
10shall make tax-free purchases unless it has an active
11identification number issued by the Department.
12    (12) Tangible personal property sold to interstate
13carriers for hire for use as rolling stock moving in interstate
14commerce or to lessors under leases of one year or longer
15executed or in effect at the time of purchase by interstate
16carriers for hire for use as rolling stock moving in interstate
17commerce and equipment operated by a telecommunications
18provider, licensed as a common carrier by the Federal
19Communications Commission, which is permanently installed in
20or affixed to aircraft moving in interstate commerce.
21    (12-5) On and after July 1, 2003 and through June 30, 2004,
22motor vehicles of the second division with a gross vehicle
23weight in excess of 8,000 pounds that are subject to the
24commercial distribution fee imposed under Section 3-815.1 of
25the Illinois Vehicle Code. Beginning on July 1, 2004 and
26through June 30, 2005, the use in this State of motor vehicles

 

 

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1of the second division: (i) with a gross vehicle weight rating
2in excess of 8,000 pounds; (ii) that are subject to the
3commercial distribution fee imposed under Section 3-815.1 of
4the Illinois Vehicle Code; and (iii) that are primarily used
5for commercial purposes. Through June 30, 2005, this exemption
6applies to repair and replacement parts added after the initial
7purchase of such a motor vehicle if that motor vehicle is used
8in a manner that would qualify for the rolling stock exemption
9otherwise provided for in this Act. For purposes of this
10paragraph, "used for commercial purposes" means the
11transportation of persons or property in furtherance of any
12commercial or industrial enterprise whether for-hire or not.
13    (13) Proceeds from sales to owners, lessors, or shippers of
14tangible personal property that is utilized by interstate
15carriers for hire for use as rolling stock moving in interstate
16commerce and equipment operated by a telecommunications
17provider, licensed as a common carrier by the Federal
18Communications Commission, which is permanently installed in
19or affixed to aircraft moving in interstate commerce.
20    (14) Machinery and equipment that will be used by the
21purchaser, or a lessee of the purchaser, primarily in the
22process of manufacturing or assembling tangible personal
23property for wholesale or retail sale or lease, whether the
24sale or lease is made directly by the manufacturer or by some
25other person, whether the materials used in the process are
26owned by the manufacturer or some other person, or whether the

 

 

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1sale or lease is made apart from or as an incident to the
2seller's engaging in the service occupation of producing
3machines, tools, dies, jigs, patterns, gauges, or other similar
4items of no commercial value on special order for a particular
5purchaser. The exemption provided by this paragraph (14) does
6not include machinery and equipment used in (i) the generation
7of electricity for wholesale or retail sale; (ii) the
8generation or treatment of natural or artificial gas for
9wholesale or retail sale that is delivered to customers through
10pipes, pipelines, or mains; or (iii) the treatment of water for
11wholesale or retail sale that is delivered to customers through
12pipes, pipelines, or mains. The provisions of Public Act 98-583
13are declaratory of existing law as to the meaning and scope of
14this exemption.
15    (15) Proceeds of mandatory service charges separately
16stated on customers' bills for purchase and consumption of food
17and beverages, to the extent that the proceeds of the service
18charge are in fact turned over as tips or as a substitute for
19tips to the employees who participate directly in preparing,
20serving, hosting or cleaning up the food or beverage function
21with respect to which the service charge is imposed.
22    (16) Petroleum products sold to a purchaser if the seller
23is prohibited by federal law from charging tax to the
24purchaser.
25    (17) Tangible personal property sold to a common carrier by
26rail or motor that receives the physical possession of the

 

 

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1property in Illinois and that transports the property, or
2shares with another common carrier in the transportation of the
3property, out of Illinois on a standard uniform bill of lading
4showing the seller of the property as the shipper or consignor
5of the property to a destination outside Illinois, for use
6outside Illinois.
7    (18) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (19) Until July 1 2003, oil field exploration, drilling,
12and production equipment, including (i) rigs and parts of rigs,
13rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
14tubular goods, including casing and drill strings, (iii) pumps
15and pump-jack units, (iv) storage tanks and flow lines, (v) any
16individual replacement part for oil field exploration,
17drilling, and production equipment, and (vi) machinery and
18equipment purchased for lease; but excluding motor vehicles
19required to be registered under the Illinois Vehicle Code.
20    (20) Photoprocessing machinery and equipment, including
21repair and replacement parts, both new and used, including that
22manufactured on special order, certified by the purchaser to be
23used primarily for photoprocessing, and including
24photoprocessing machinery and equipment purchased for lease.
25    (21) Coal and aggregate exploration, mining, off-highway
26hauling, processing, maintenance, and reclamation equipment,

 

 

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1including replacement parts and equipment, and including
2equipment purchased for lease, but excluding motor vehicles
3required to be registered under the Illinois Vehicle Code. The
4changes made to this Section by Public Act 97-767 apply on and
5after July 1, 2003, but no claim for credit or refund is
6allowed on or after August 16, 2013 (the effective date of
7Public Act 98-456) for such taxes paid during the period
8beginning July 1, 2003 and ending on August 16, 2013 (the
9effective date of Public Act 98-456).
10    (22) Until June 30, 2013, fuel and petroleum products sold
11to or used by an air carrier, certified by the carrier to be
12used for consumption, shipment, or storage in the conduct of
13its business as an air common carrier, for a flight destined
14for or returning from a location or locations outside the
15United States without regard to previous or subsequent domestic
16stopovers.
17    Beginning July 1, 2013, fuel and petroleum products sold to
18or used by an air carrier, certified by the carrier to be used
19for consumption, shipment, or storage in the conduct of its
20business as an air common carrier, for a flight that (i) is
21engaged in foreign trade or is engaged in trade between the
22United States and any of its possessions and (ii) transports at
23least one individual or package for hire from the city of
24origination to the city of final destination on the same
25aircraft, without regard to a change in the flight number of
26that aircraft.

 

 

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1    (23) A transaction in which the purchase order is received
2by a florist who is located outside Illinois, but who has a
3florist located in Illinois deliver the property to the
4purchaser or the purchaser's donee in Illinois.
5    (24) Fuel consumed or used in the operation of ships,
6barges, or vessels that are used primarily in or for the
7transportation of property or the conveyance of persons for
8hire on rivers bordering on this State if the fuel is delivered
9by the seller to the purchaser's barge, ship, or vessel while
10it is afloat upon that bordering river.
11    (25) Except as provided in item (25-5) of this Section, a
12motor vehicle sold in this State to a nonresident even though
13the motor vehicle is delivered to the nonresident in this
14State, if the motor vehicle is not to be titled in this State,
15and if a drive-away permit is issued to the motor vehicle as
16provided in Section 3-603 of the Illinois Vehicle Code or if
17the nonresident purchaser has vehicle registration plates to
18transfer to the motor vehicle upon returning to his or her home
19state. The issuance of the drive-away permit or having the
20out-of-state registration plates to be transferred is prima
21facie evidence that the motor vehicle will not be titled in
22this State.
23    (25-5) The exemption under item (25) does not apply if the
24state in which the motor vehicle will be titled does not allow
25a reciprocal exemption for a motor vehicle sold and delivered
26in that state to an Illinois resident but titled in Illinois.

 

 

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1The tax collected under this Act on the sale of a motor vehicle
2in this State to a resident of another state that does not
3allow a reciprocal exemption shall be imposed at a rate equal
4to the state's rate of tax on taxable property in the state in
5which the purchaser is a resident, except that the tax shall
6not exceed the tax that would otherwise be imposed under this
7Act. At the time of the sale, the purchaser shall execute a
8statement, signed under penalty of perjury, of his or her
9intent to title the vehicle in the state in which the purchaser
10is a resident within 30 days after the sale and of the fact of
11the payment to the State of Illinois of tax in an amount
12equivalent to the state's rate of tax on taxable property in
13his or her state of residence and shall submit the statement to
14the appropriate tax collection agency in his or her state of
15residence. In addition, the retailer must retain a signed copy
16of the statement in his or her records. Nothing in this item
17shall be construed to require the removal of the vehicle from
18this state following the filing of an intent to title the
19vehicle in the purchaser's state of residence if the purchaser
20titles the vehicle in his or her state of residence within 30
21days after the date of sale. The tax collected under this Act
22in accordance with this item (25-5) shall be proportionately
23distributed as if the tax were collected at the 6.25% general
24rate imposed under this Act.
25    (25-7) Beginning on July 1, 2007, no tax is imposed under
26this Act on the sale of an aircraft, as defined in Section 3 of

 

 

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1the Illinois Aeronautics Act, if all of the following
2conditions are met:
3        (1) the aircraft leaves this State within 15 days after
4    the later of either the issuance of the final billing for
5    the sale of the aircraft, or the authorized approval for
6    return to service, completion of the maintenance record
7    entry, and completion of the test flight and ground test
8    for inspection, as required by 14 C.F.R. 91.407;
9        (2) the aircraft is not based or registered in this
10    State after the sale of the aircraft; and
11        (3) the seller retains in his or her books and records
12    and provides to the Department a signed and dated
13    certification from the purchaser, on a form prescribed by
14    the Department, certifying that the requirements of this
15    item (25-7) are met. The certificate must also include the
16    name and address of the purchaser, the address of the
17    location where the aircraft is to be titled or registered,
18    the address of the primary physical location of the
19    aircraft, and other information that the Department may
20    reasonably require.
21    For purposes of this item (25-7):
22    "Based in this State" means hangared, stored, or otherwise
23used, excluding post-sale customizations as defined in this
24Section, for 10 or more days in each 12-month period
25immediately following the date of the sale of the aircraft.
26    "Registered in this State" means an aircraft registered

 

 

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1with the Department of Transportation, Aeronautics Division,
2or titled or registered with the Federal Aviation
3Administration to an address located in this State.
4    This paragraph (25-7) is exempt from the provisions of
5Section 2-70.
6    (26) Semen used for artificial insemination of livestock
7for direct agricultural production.
8    (27) Horses, or interests in horses, registered with and
9meeting the requirements of any of the Arabian Horse Club
10Registry of America, Appaloosa Horse Club, American Quarter
11Horse Association, United States Trotting Association, or
12Jockey Club, as appropriate, used for purposes of breeding or
13racing for prizes. This item (27) is exempt from the provisions
14of Section 2-70, and the exemption provided for under this item
15(27) applies for all periods beginning May 30, 1995, but no
16claim for credit or refund is allowed on or after January 1,
172008 (the effective date of Public Act 95-88) for such taxes
18paid during the period beginning May 30, 2000 and ending on
19January 1, 2008 (the effective date of Public Act 95-88).
20    (28) Computers and communications equipment utilized for
21any hospital purpose and equipment used in the diagnosis,
22analysis, or treatment of hospital patients sold to a lessor
23who leases the equipment, under a lease of one year or longer
24executed or in effect at the time of the purchase, to a
25hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

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1this Act.
2    (29) Personal property sold to a lessor who leases the
3property, under a lease of one year or longer executed or in
4effect at the time of the purchase, to a governmental body that
5has been issued an active tax exemption identification number
6by the Department under Section 1g of this Act.
7    (30) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is donated for
10disaster relief to be used in a State or federally declared
11disaster area in Illinois or bordering Illinois by a
12manufacturer or retailer that is registered in this State to a
13corporation, society, association, foundation, or institution
14that has been issued a sales tax exemption identification
15number by the Department that assists victims of the disaster
16who reside within the declared disaster area.
17    (31) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is used in the
20performance of infrastructure repairs in this State, including
21but not limited to municipal roads and streets, access roads,
22bridges, sidewalks, waste disposal systems, water and sewer
23line extensions, water distribution and purification
24facilities, storm water drainage and retention facilities, and
25sewage treatment facilities, resulting from a State or
26federally declared disaster in Illinois or bordering Illinois

 

 

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1when such repairs are initiated on facilities located in the
2declared disaster area within 6 months after the disaster.
3    (32) Beginning July 1, 1999, game or game birds sold at a
4"game breeding and hunting preserve area" as that term is used
5in the Wildlife Code. This paragraph is exempt from the
6provisions of Section 2-70.
7    (33) A motor vehicle, as that term is defined in Section
81-146 of the Illinois Vehicle Code, that is donated to a
9corporation, limited liability company, society, association,
10foundation, or institution that is determined by the Department
11to be organized and operated exclusively for educational
12purposes. For purposes of this exemption, "a corporation,
13limited liability company, society, association, foundation,
14or institution organized and operated exclusively for
15educational purposes" means all tax-supported public schools,
16private schools that offer systematic instruction in useful
17branches of learning by methods common to public schools and
18that compare favorably in their scope and intensity with the
19course of study presented in tax-supported schools, and
20vocational or technical schools or institutes organized and
21operated exclusively to provide a course of study of not less
22than 6 weeks duration and designed to prepare individuals to
23follow a trade or to pursue a manual, technical, mechanical,
24industrial, business, or commercial occupation.
25    (34) Beginning January 1, 2000, personal property,
26including food, purchased through fundraising events for the

 

 

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1benefit of a public or private elementary or secondary school,
2a group of those schools, or one or more school districts if
3the events are sponsored by an entity recognized by the school
4district that consists primarily of volunteers and includes
5parents and teachers of the school children. This paragraph
6does not apply to fundraising events (i) for the benefit of
7private home instruction or (ii) for which the fundraising
8entity purchases the personal property sold at the events from
9another individual or entity that sold the property for the
10purpose of resale by the fundraising entity and that profits
11from the sale to the fundraising entity. This paragraph is
12exempt from the provisions of Section 2-70.
13    (35) Beginning January 1, 2000 and through December 31,
142001, new or used automatic vending machines that prepare and
15serve hot food and beverages, including coffee, soup, and other
16items, and replacement parts for these machines. Beginning
17January 1, 2002 and through June 30, 2003, machines and parts
18for machines used in commercial, coin-operated amusement and
19vending business if a use or occupation tax is paid on the
20gross receipts derived from the use of the commercial,
21coin-operated amusement and vending machines. This paragraph
22is exempt from the provisions of Section 2-70.
23    (35-5) Beginning August 23, 2001 and through June 30, 2016,
24food for human consumption that is to be consumed off the
25premises where it is sold (other than alcoholic beverages, soft
26drinks, and food that has been prepared for immediate

 

 

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1consumption) and prescription and nonprescription medicines,
2drugs, medical appliances, and insulin, urine testing
3materials, syringes, and needles used by diabetics, for human
4use, when purchased for use by a person receiving medical
5assistance under Article V of the Illinois Public Aid Code who
6resides in a licensed long-term care facility, as defined in
7the Nursing Home Care Act, or a licensed facility as defined in
8the ID/DD Community Care Act, the MC/DD Act, or the Specialized
9Mental Health Rehabilitation Act of 2013.
10    (36) Beginning August 2, 2001, computers and
11communications equipment utilized for any hospital purpose and
12equipment used in the diagnosis, analysis, or treatment of
13hospital patients sold to a lessor who leases the equipment,
14under a lease of one year or longer executed or in effect at
15the time of the purchase, to a hospital that has been issued an
16active tax exemption identification number by the Department
17under Section 1g of this Act. This paragraph is exempt from the
18provisions of Section 2-70.
19    (37) Beginning August 2, 2001, personal property sold to a
20lessor who leases the property, under a lease of one year or
21longer executed or in effect at the time of the purchase, to a
22governmental body that has been issued an active tax exemption
23identification number by the Department under Section 1g of
24this Act. This paragraph is exempt from the provisions of
25Section 2-70.
26    (38) Beginning on January 1, 2002 and through June 30,

 

 

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12016, tangible personal property purchased from an Illinois
2retailer by a taxpayer engaged in centralized purchasing
3activities in Illinois who will, upon receipt of the property
4in Illinois, temporarily store the property in Illinois (i) for
5the purpose of subsequently transporting it outside this State
6for use or consumption thereafter solely outside this State or
7(ii) for the purpose of being processed, fabricated, or
8manufactured into, attached to, or incorporated into other
9tangible personal property to be transported outside this State
10and thereafter used or consumed solely outside this State. The
11Director of Revenue shall, pursuant to rules adopted in
12accordance with the Illinois Administrative Procedure Act,
13issue a permit to any taxpayer in good standing with the
14Department who is eligible for the exemption under this
15paragraph (38). The permit issued under this paragraph (38)
16shall authorize the holder, to the extent and in the manner
17specified in the rules adopted under this Act, to purchase
18tangible personal property from a retailer exempt from the
19taxes imposed by this Act. Taxpayers shall maintain all
20necessary books and records to substantiate the use and
21consumption of all such tangible personal property outside of
22the State of Illinois.
23    (39) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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1corporation that holds a valid water supply permit issued under
2Title IV of the Environmental Protection Act. This paragraph is
3exempt from the provisions of Section 2-70.
4    (40) Beginning January 1, 2010, materials, parts,
5equipment, components, and furnishings incorporated into or
6upon an aircraft as part of the modification, refurbishment,
7completion, replacement, repair, or maintenance of the
8aircraft. This exemption includes consumable supplies used in
9the modification, refurbishment, completion, replacement,
10repair, and maintenance of aircraft, but excludes any
11materials, parts, equipment, components, and consumable
12supplies used in the modification, replacement, repair, and
13maintenance of aircraft engines or power plants, whether such
14engines or power plants are installed or uninstalled upon any
15such aircraft. "Consumable supplies" include, but are not
16limited to, adhesive, tape, sandpaper, general purpose
17lubricants, cleaning solution, latex gloves, and protective
18films. This exemption applies only to the sale of qualifying
19tangible personal property to persons who modify, refurbish,
20complete, replace, or maintain an aircraft and who (i) hold an
21Air Agency Certificate and are empowered to operate an approved
22repair station by the Federal Aviation Administration, (ii)
23have a Class IV Rating, and (iii) conduct operations in
24accordance with Part 145 of the Federal Aviation Regulations.
25The exemption does not include aircraft operated by a
26commercial air carrier providing scheduled passenger air

 

 

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1service pursuant to authority issued under Part 121 or Part 129
2of the Federal Aviation Regulations. The changes made to this
3paragraph (40) by Public Act 98-534 are declarative of existing
4law.
5    (41) Tangible personal property sold to a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt instruments
14issued by the public-facilities corporation in connection with
15the development of the municipal convention hall. This
16exemption includes existing public-facilities corporations as
17provided in Section 11-65-25 of the Illinois Municipal Code.
18This paragraph is exempt from the provisions of Section 2-70.
19    (42) Beginning January 1, 2017, menstrual pads, tampons,
20and menstrual cups.
21(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2298-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
231-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
247-29-15; 99-855, eff. 8-19-16.)