101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3034

 

Introduced , by Rep. Sonya M. Harper

 

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 agricultural goods purchased at a farmer's market are exempt from the taxes imposed under the Acts.


LRB101 08896 HLH 53986 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3034LRB101 08896 HLH 53986 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 July 1, 2001 (the
7effective date of Public Act 92-35), however, an entity
8otherwise eligible for this exemption shall not make tax-free
9purchases unless it has an active identification number issued
10by 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. Beginning on July 1, 2017, graphic arts
12machinery and equipment is included in the manufacturing and
13assembling machinery and equipment exemption under paragraph
14(18).
15    (7) Farm chemicals.
16    (8) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (9) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23    (10) A motor vehicle that is used for automobile renting,
24as defined in the Automobile Renting Occupation and Use Tax
25Act.
26    (11) Farm machinery and equipment, both new and used,

 

 

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

 

 

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1    Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals. This item (11) is exempt from the
8provisions of Section 3-90.
9    (12) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the conduct
12of its business as an air common carrier, for a flight destined
13for or returning from a location or locations outside the
14United States without regard to previous or subsequent domestic
15stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold to
17or used by an air carrier, certified by the carrier to be used
18for consumption, shipment, or storage in the conduct of its
19business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports at
22least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (13) Proceeds of mandatory service charges separately

 

 

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1stated on customers' bills for the purchase and consumption of
2food and beverages purchased at retail from a retailer, to the
3extent that the proceeds of the service charge are in fact
4turned over as tips or as a substitute for tips to the
5employees who participate directly in preparing, serving,
6hosting or cleaning up the food or beverage function with
7respect to which the service charge is imposed.
8    (14) Until July 1, 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of rigs,
10rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
11tubular goods, including casing and drill strings, (iii) pumps
12and pump-jack units, (iv) storage tanks and flow lines, (v) any
13individual replacement part for oil field exploration,
14drilling, and production equipment, and (vi) machinery and
15equipment purchased for lease; but excluding motor vehicles
16required to be registered under the Illinois Vehicle Code.
17    (15) Photoprocessing machinery and equipment, including
18repair and replacement parts, both new and used, including that
19manufactured on special order, certified by the purchaser to be
20used primarily for photoprocessing, and including
21photoprocessing machinery and equipment purchased for lease.
22    (16) Until July 1, 2023, coal and aggregate exploration,
23mining, off-highway hauling, processing, maintenance, and
24reclamation equipment, including replacement parts and
25equipment, and including equipment purchased for lease, but
26excluding motor vehicles required to be registered under the

 

 

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1Illinois Vehicle Code. The changes made to this Section by
2Public Act 97-767 apply on and after July 1, 2003, but no claim
3for credit or refund is allowed on or after August 16, 2013
4(the effective date of Public Act 98-456) for such taxes paid
5during the period beginning July 1, 2003 and ending on August
616, 2013 (the effective date of Public Act 98-456).
7    (17) Until July 1, 2003, distillation machinery and
8equipment, sold as a unit or kit, assembled or installed by the
9retailer, certified by the user to be used only for the
10production of ethyl alcohol that will be used for consumption
11as motor fuel or as a component of motor fuel for the personal
12use of the user, and not subject to sale or resale.
13    (18) Manufacturing and assembling machinery and equipment
14used primarily in the process of manufacturing or assembling
15tangible personal property for wholesale or retail sale or
16lease, whether that sale or lease is made directly by the
17manufacturer or by some other person, whether the materials
18used in the process are owned by the manufacturer or some other
19person, or whether that sale or lease is made apart from or as
20an incident to the seller's engaging in the service occupation
21of producing machines, tools, dies, jigs, patterns, gauges, or
22other similar items of no commercial value on special order for
23a particular purchaser. The exemption provided by this
24paragraph (18) does not include machinery and equipment used in
25(i) the generation of electricity for wholesale or retail sale;
26(ii) the generation or treatment of natural or artificial gas

 

 

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1for wholesale or retail sale that is delivered to customers
2through pipes, pipelines, or mains; or (iii) the treatment of
3water for wholesale or retail sale that is delivered to
4customers through pipes, pipelines, or mains. The provisions of
5Public Act 98-583 are declaratory of existing law as to the
6meaning and scope of this exemption. Beginning on July 1, 2017,
7the exemption provided by this paragraph (18) includes, but is
8not limited to, graphic arts machinery and equipment, as
9defined in paragraph (6) of this Section.
10    (19) Personal property delivered to a purchaser or
11purchaser's donee inside Illinois when the purchase order for
12that personal property was received by a florist located
13outside Illinois who has a florist located inside Illinois
14deliver the personal property.
15    (20) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (21) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (21) is exempt from the provisions
23of Section 3-90, and the exemption provided for under this item
24(21) applies for all periods beginning May 30, 1995, but no
25claim for credit or refund is allowed on or after January 1,
262008 for such taxes paid during the period beginning May 30,

 

 

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12000 and ending on January 1, 2008.
2    (22) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients purchased by a
5lessor who leases the equipment, under a lease of one year or
6longer executed or in effect at the time the lessor would
7otherwise be subject to the tax imposed by this Act, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act. If the equipment is leased in a
11manner that does not qualify for this exemption or is used in
12any other non-exempt manner, the lessor shall be liable for the
13tax imposed under this Act or the Service Use Tax Act, as the
14case may be, based on the fair market value of the property at
15the time the non-qualifying use occurs. No lessor shall collect
16or attempt to collect an amount (however designated) that
17purports to reimburse that lessor for the tax imposed by this
18Act or the Service Use Tax Act, as the case may be, if the tax
19has not been paid by the lessor. If a lessor improperly
20collects any such amount from the lessee, the lessee shall have
21a legal right to claim a refund of that amount from the lessor.
22If, however, that amount is not refunded to the lessee for any
23reason, the lessor is liable to pay that amount to the
24Department.
25    (23) Personal property purchased by a lessor who leases the
26property, under a lease of one year or longer executed or in

 

 

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

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (25) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in the
6performance of infrastructure repairs in this State, including
7but not limited to municipal roads and streets, access roads,
8bridges, sidewalks, waste disposal systems, water and sewer
9line extensions, water distribution and purification
10facilities, storm water drainage and retention facilities, and
11sewage treatment facilities, resulting from a State or
12federally declared disaster in Illinois or bordering Illinois
13when such repairs are initiated on facilities located in the
14declared disaster area within 6 months after the disaster.
15    (26) Beginning July 1, 1999, game or game birds purchased
16at a "game breeding and hunting preserve area" as that term is
17used in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-90.
19    (27) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the Department
23to be organized and operated exclusively for educational
24purposes. For purposes of this exemption, "a corporation,
25limited liability company, society, association, foundation,
26or institution organized and operated exclusively for

 

 

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1educational purposes" means all tax-supported public schools,
2private schools that offer systematic instruction in useful
3branches of learning by methods common to public schools and
4that compare favorably in their scope and intensity with the
5course of study presented in tax-supported schools, and
6vocational or technical schools or institutes organized and
7operated exclusively to provide a course of study of not less
8than 6 weeks duration and designed to prepare individuals to
9follow a trade or to pursue a manual, technical, mechanical,
10industrial, business, or commercial occupation.
11    (28) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-90.
25    (29) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

 

 

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1serve hot food and beverages, including coffee, soup, and other
2items, and replacement parts for these machines. Beginning
3January 1, 2002 and through June 30, 2003, machines and parts
4for machines used in commercial, coin-operated amusement and
5vending business if a use or occupation tax is paid on the
6gross receipts derived from the use of the commercial,
7coin-operated amusement and vending machines. This paragraph
8is exempt from the provisions of Section 3-90.
9    (30) Beginning January 1, 2001 and through June 30, 2016,
10food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages, soft
12drinks, and food that has been prepared for immediate
13consumption) and prescription and nonprescription medicines,
14drugs, medical appliances, and insulin, urine testing
15materials, syringes, and needles used by diabetics, for human
16use, when purchased for use by a person receiving medical
17assistance under Article V of the Illinois Public Aid Code who
18resides in a licensed long-term care facility, as defined in
19the Nursing Home Care Act, or in a licensed facility as defined
20in the ID/DD Community Care Act, the MC/DD Act, or the
21Specialized Mental Health Rehabilitation Act of 2013.
22    (31) Beginning on August 2, 2001 (the effective date of
23Public Act 92-227), computers and communications equipment
24utilized for any hospital purpose and equipment used in the
25diagnosis, analysis, or treatment of hospital patients
26purchased by a lessor who leases the equipment, under a lease

 

 

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1of one year or longer executed or in effect at the time the
2lessor would otherwise be subject to the tax imposed by this
3Act, to a hospital that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. If the equipment is leased in a
6manner that does not qualify for this exemption or is used in
7any other nonexempt manner, the lessor shall be liable for the
8tax imposed under this Act or the Service Use Tax Act, as the
9case may be, based on the fair market value of the property at
10the time the nonqualifying use occurs. No lessor shall collect
11or attempt to collect an amount (however designated) that
12purports to reimburse that lessor for the tax imposed by this
13Act or the Service Use Tax Act, as the case may be, if the tax
14has not been paid by the lessor. If a lessor improperly
15collects any such amount from the lessee, the lessee shall have
16a legal right to claim a refund of that amount from the lessor.
17If, however, that amount is not refunded to the lessee for any
18reason, the lessor is liable to pay that amount to the
19Department. This paragraph is exempt from the provisions of
20Section 3-90.
21    (32) Beginning on August 2, 2001 (the effective date of
22Public Act 92-227), personal property purchased by a lessor who
23leases the property, under a lease of one year or longer
24executed or in effect at the time the lessor would otherwise be
25subject to the tax imposed by this Act, to a governmental body
26that has been issued an active sales tax exemption

 

 

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1identification number by the Department under Section 1g of the
2Retailers' Occupation Tax Act. If the property is leased in a
3manner that does not qualify for this exemption or used in any
4other nonexempt manner, the lessor shall be liable for the tax
5imposed under this Act or the Service Use Tax Act, as the case
6may be, based on the fair market value of the property at the
7time the nonqualifying use occurs. No lessor shall collect or
8attempt to collect an amount (however designated) that purports
9to reimburse that lessor for the tax imposed by this Act or the
10Service Use Tax Act, as the case may be, if the tax has not been
11paid by the lessor. If a lessor improperly collects any such
12amount from the lessee, the lessee shall have a legal right to
13claim a refund of that amount from the lessor. If, however,
14that amount is not refunded to the lessee for any reason, the
15lessor is liable to pay that amount to the Department. This
16paragraph is exempt from 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    (38) Merchandise that is subject to the Rental Purchase
9Agreement Occupation and Use Tax. The purchaser must certify
10that the item is purchased to be rented subject to a rental
11purchase agreement, as defined in the Rental Purchase Agreement
12Act, and provide proof of registration under the Rental
13Purchase Agreement Occupation and Use Tax Act. This paragraph
14is exempt from the provisions of Section 3-90.
15    (39) Tangible personal property purchased by a purchaser
16who is exempt from the tax imposed by this Act by operation of
17federal law. This paragraph is exempt from the provisions of
18Section 3-90.
19    (40) Agricultural goods purchased at a farmer's market.
20This paragraph is exempt from the provisions of Section 3-90.
21(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
22100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.
236-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised
241-8-19.)
 
25    Section 10. The Service Use Tax Act is amended by changing

 

 

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1Section 3-5 as follows:
 
2    (35 ILCS 110/3-5)
3    Sec. 3-5. Exemptions. Use of the following tangible
4personal property is exempt from the tax imposed by this Act:
5    (1) Personal property purchased from a corporation,
6society, association, foundation, institution, or
7organization, other than a limited liability company, that is
8organized and operated as a not-for-profit service enterprise
9for the benefit of persons 65 years of age or older if the
10personal property was not purchased by the enterprise for the
11purpose of resale by the enterprise.
12    (2) Personal property purchased by a non-profit Illinois
13county fair association for use in conducting, operating, or
14promoting the county fair.
15    (3) Personal property purchased by a not-for-profit arts or
16cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after July 1, 2001 (the

 

 

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1effective date of Public Act 92-35) this amendatory Act of the
292nd General Assembly, however, an entity otherwise eligible
3for this exemption shall not make tax-free purchases unless it
4has an active identification number issued by the Department.
5    (4) Legal tender, currency, medallions, or gold or silver
6coinage issued by the State of Illinois, the government of the
7United States of America, or the government of any foreign
8country, and bullion.
9    (5) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order or
13purchased for lease, certified by the purchaser to be used
14primarily for graphic arts production. Equipment includes
15chemicals or chemicals acting as catalysts but only if the
16chemicals or chemicals acting as catalysts effect a direct and
17immediate change upon a graphic arts product. Beginning on July
181, 2017, graphic arts machinery and equipment is included in
19the manufacturing and assembling machinery and equipment
20exemption under Section 2 of this Act.
21    (6) Personal property purchased from a teacher-sponsored
22student organization affiliated with an elementary or
23secondary school located in Illinois.
24    (7) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

 

 

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

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (7) is exempt from the
6provisions of Section 3-75.
7    (8) Until June 30, 2013, fuel and petroleum products sold
8to or used by an air common carrier, certified by the carrier
9to be used for consumption, shipment, or storage in the conduct
10of its business as an air common carrier, for a flight destined
11for or returning from a location or locations outside the
12United States without regard to previous or subsequent domestic
13stopovers.
14    Beginning July 1, 2013, fuel and petroleum products sold to
15or used by an air carrier, certified by the carrier to be used
16for consumption, shipment, or storage in the conduct of its
17business as an air common carrier, for a flight that (i) is
18engaged in foreign trade or is engaged in trade between the
19United States and any of its possessions and (ii) transports at
20least one individual or package for hire from the city of
21origination to the city of final destination on the same
22aircraft, without regard to a change in the flight number of
23that aircraft.
24    (9) Proceeds of mandatory service charges separately
25stated on customers' bills for the purchase and consumption of
26food and beverages acquired as an incident to the purchase of a

 

 

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1service from a serviceman, to the extent that the proceeds of
2the service charge are in fact turned over as tips or as a
3substitute for tips to the employees who participate directly
4in preparing, serving, hosting or cleaning up the food or
5beverage function with respect to which the service charge is
6imposed.
7    (10) Until July 1, 2003, oil field exploration, drilling,
8and production equipment, including (i) rigs and parts of rigs,
9rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
10tubular goods, including casing and drill strings, (iii) pumps
11and pump-jack units, (iv) storage tanks and flow lines, (v) any
12individual replacement part for oil field exploration,
13drilling, and production equipment, and (vi) machinery and
14equipment purchased for lease; but excluding motor vehicles
15required to be registered under the Illinois Vehicle Code.
16    (11) Proceeds from the sale of photoprocessing machinery
17and equipment, including repair and replacement parts, both new
18and used, including that manufactured on special order,
19certified by the purchaser to be used primarily for
20photoprocessing, and including photoprocessing machinery and
21equipment purchased for lease.
22    (12) Until July 1, 2023, coal and aggregate exploration,
23mining, off-highway hauling, processing, maintenance, and
24reclamation equipment, including replacement parts and
25equipment, and including equipment purchased for lease, but
26excluding motor vehicles required to be registered under the

 

 

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1Illinois Vehicle Code. The changes made to this Section by
2Public Act 97-767 apply on and after July 1, 2003, but no claim
3for credit or refund is allowed on or after August 16, 2013
4(the effective date of Public Act 98-456) for such taxes paid
5during the period beginning July 1, 2003 and ending on August
616, 2013 (the effective date of Public Act 98-456).
7    (13) Semen used for artificial insemination of livestock
8for direct agricultural production.
9    (14) Horses, or interests in horses, registered with and
10meeting the requirements of any of the Arabian Horse Club
11Registry of America, Appaloosa Horse Club, American Quarter
12Horse Association, United States Trotting Association, or
13Jockey Club, as appropriate, used for purposes of breeding or
14racing for prizes. This item (14) is exempt from the provisions
15of Section 3-75, and the exemption provided for under this item
16(14) applies for all periods beginning May 30, 1995, but no
17claim for credit or refund is allowed on or after January 1,
182008 (the effective date of Public Act 95-88) this amendatory
19Act of the 95th General Assembly for such taxes paid during the
20period beginning May 30, 2000 and ending on January 1, 2008
21(the effective date of Public Act 95-88) this amendatory Act of
22the 95th General Assembly.
23    (15) Computers and communications equipment utilized for
24any hospital purpose and equipment used in the diagnosis,
25analysis, or treatment of hospital patients purchased by a
26lessor who leases the equipment, under a lease of one year or

 

 

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

 

 

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

 

 

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1but not limited to municipal roads and streets, access roads,
2bridges, sidewalks, waste disposal systems, water and sewer
3line extensions, water distribution and purification
4facilities, storm water drainage and retention facilities, and
5sewage treatment facilities, resulting from a State or
6federally declared disaster in Illinois or bordering Illinois
7when such repairs are initiated on facilities located in the
8declared disaster area within 6 months after the disaster.
9    (19) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-75.
13    (20) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the Department
17to be organized and operated exclusively for educational
18purposes. For purposes of this exemption, "a corporation,
19limited liability company, society, association, foundation,
20or institution organized and operated exclusively for
21educational purposes" means all tax-supported public schools,
22private schools that offer systematic instruction in useful
23branches of learning by methods common to public schools and
24that compare favorably in their scope and intensity with the
25course of study presented in tax-supported schools, and
26vocational or technical schools or institutes organized and

 

 

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1operated exclusively to provide a course of study of not less
2than 6 weeks duration and designed to prepare individuals to
3follow a trade or to pursue a manual, technical, mechanical,
4industrial, business, or commercial occupation.
5    (21) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-75.
19    (22) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and other
22items, and replacement parts for these machines. Beginning
23January 1, 2002 and through June 30, 2003, machines and parts
24for machines used in commercial, coin-operated amusement and
25vending business if a use or occupation tax is paid on the
26gross receipts derived from the use of the commercial,

 

 

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1coin-operated amusement and vending machines. This paragraph
2is exempt from the provisions of Section 3-75.
3    (23) Beginning August 23, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16    (24) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227) this amendatory Act of the 92nd General
18Assembly, computers and communications equipment utilized for
19any hospital purpose and equipment used in the diagnosis,
20analysis, or treatment of hospital patients purchased by a
21lessor who leases the equipment, under a lease of one year or
22longer executed or in effect at the time the lessor would
23otherwise be subject to the tax imposed by this Act, to a
24hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of the
26Retailers' Occupation Tax Act. If the equipment is leased in a

 

 

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1manner that does not qualify for this exemption or is used in
2any other nonexempt manner, the lessor shall be liable for the
3tax imposed under this Act or the Use Tax Act, as the case may
4be, based on the fair market value of the property at the time
5the nonqualifying use occurs. No lessor shall collect or
6attempt to collect an amount (however designated) that purports
7to reimburse that lessor for the tax imposed by this Act or the
8Use Tax Act, as the case may be, if the tax has not been paid by
9the lessor. If a lessor improperly collects any such amount
10from the lessee, the lessee shall have a legal right to claim a
11refund of that amount from the lessor. If, however, that amount
12is not refunded to the lessee for any reason, the lessor is
13liable to pay that amount to the Department. This paragraph is
14exempt from the provisions of Section 3-75.
15    (25) Beginning on August 2, 2001 (the effective date of
16Public Act 92-227) this amendatory Act of the 92nd General
17Assembly, personal property purchased by a lessor who leases
18the property, under a lease of one year or longer executed or
19in effect at the time the lessor would otherwise be subject to
20the tax imposed by this Act, to a governmental body that has
21been issued an active tax exemption identification number by
22the Department under Section 1g of the Retailers' Occupation
23Tax Act. If the property is leased in a manner that does not
24qualify for this exemption or is used in any other nonexempt
25manner, the lessor shall be liable for the tax imposed under
26this Act or the Use Tax Act, as the case may be, based on the

 

 

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1fair market value of the property at the time the nonqualifying
2use occurs. No lessor shall collect or attempt to collect an
3amount (however designated) that purports to reimburse that
4lessor for the tax imposed by this Act or the Use Tax Act, as
5the case may be, if the tax has not been paid by the lessor. If
6a lessor improperly collects any such amount from the lessee,
7the lessee shall have a legal right to claim a refund of that
8amount from the lessor. If, however, that amount is not
9refunded to the lessee for any reason, the lessor is liable to
10pay that amount to the Department. This paragraph is exempt
11from the provisions of Section 3-75.
12    (26) Beginning January 1, 2008, tangible personal property
13used in the construction or maintenance of a community water
14supply, as defined under Section 3.145 of the Environmental
15Protection Act, that is operated by a not-for-profit
16corporation that holds a valid water supply permit issued under
17Title IV of the Environmental Protection Act. This paragraph is
18exempt from the provisions of Section 3-75.
19    (27) Beginning January 1, 2010, materials, parts,
20equipment, components, and furnishings incorporated into or
21upon an aircraft as part of the modification, refurbishment,
22completion, replacement, repair, or maintenance of the
23aircraft. This exemption includes consumable supplies used in
24the modification, refurbishment, completion, replacement,
25repair, and maintenance of aircraft, but excludes any
26materials, parts, equipment, components, and consumable

 

 

HB3034- 32 -LRB101 08896 HLH 53986 b

1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to the use of qualifying
8tangible personal property transferred incident to the
9modification, refurbishment, completion, replacement, repair,
10or maintenance of aircraft by persons who (i) hold an Air
11Agency Certificate and are empowered to operate an approved
12repair station by the Federal Aviation Administration, (ii)
13have a Class IV Rating, and (iii) conduct operations in
14accordance with Part 145 of the Federal Aviation Regulations.
15The exemption does not include aircraft operated by a
16commercial air carrier providing scheduled passenger air
17service pursuant to authority issued under Part 121 or Part 129
18of the Federal Aviation Regulations. The changes made to this
19paragraph (27) by Public Act 98-534 are declarative of existing
20law.
21    (28) Tangible personal property purchased by a
22public-facilities corporation, as described in Section
2311-65-10 of the Illinois Municipal Code, for purposes of
24constructing or furnishing a municipal convention hall, but
25only if the legal title to the municipal convention hall is
26transferred to the municipality without any further

 

 

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1consideration by or on behalf of the municipality at the time
2of the completion of the municipal convention hall or upon the
3retirement or redemption of any bonds or other debt instruments
4issued by the public-facilities corporation in connection with
5the development of the municipal convention hall. This
6exemption includes existing public-facilities corporations as
7provided in Section 11-65-25 of the Illinois Municipal Code.
8This paragraph is exempt from the provisions of Section 3-75.
9    (29) Beginning January 1, 2017, menstrual pads, tampons,
10and menstrual cups.
11    (30) Tangible personal property transferred to a purchaser
12who is exempt from the tax imposed by this Act by operation of
13federal law. This paragraph is exempt from the provisions of
14Section 3-75.
15    (31) Agricultural goods purchased at a farmer's market.
16This paragraph is exempt from the provisions of Section 3-75.
17(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
18100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
191-4-19; revised 1-8-19.)
 
20    Section 15. The Service Occupation Tax Act is amended by
21changing Section 3-5 as follows:
 
22    (35 ILCS 115/3-5)
23    Sec. 3-5. Exemptions. The following tangible personal
24property is exempt from the tax imposed by this Act:

 

 

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1    (1) Personal property sold by a corporation, society,
2association, foundation, institution, or organization, other
3than a limited liability company, that is organized and
4operated as a not-for-profit service enterprise for the benefit
5of persons 65 years of age or older if the personal property
6was not purchased by the enterprise for the purpose of resale
7by the enterprise.
8    (2) Personal property purchased by a not-for-profit
9Illinois county fair association for use in conducting,
10operating, or promoting the county fair.
11    (3) Personal property purchased by any not-for-profit arts
12or cultural organization that establishes, by proof required by
13the Department by rule, that it has received an exemption under
14Section 501(c)(3) of the Internal Revenue Code and that is
15organized and operated primarily for the presentation or
16support of arts or cultural programming, activities, or
17services. These organizations include, but are not limited to,
18music and dramatic arts organizations such as symphony
19orchestras and theatrical groups, arts and cultural service
20organizations, local arts councils, visual arts organizations,
21and media arts organizations. On and after July 1, 2001 (the
22effective date of Public Act 92-35) this amendatory Act of the
2392nd General Assembly, however, an entity otherwise eligible
24for this exemption shall not make tax-free purchases unless it
25has an active identification number issued by the Department.
26    (4) Legal tender, currency, medallions, or gold or silver

 

 

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1coinage issued by the State of Illinois, the government of the
2United States of America, or the government of any foreign
3country, and bullion.
4    (5) Until July 1, 2003 and beginning again on September 1,
52004 through August 30, 2014, graphic arts machinery and
6equipment, including repair and replacement parts, both new and
7used, and including that manufactured on special order or
8purchased for lease, certified by the purchaser to be used
9primarily for graphic arts production. Equipment includes
10chemicals or chemicals acting as catalysts but only if the
11chemicals or chemicals acting as catalysts effect a direct and
12immediate change upon a graphic arts product. Beginning on July
131, 2017, graphic arts machinery and equipment is included in
14the manufacturing and assembling machinery and equipment
15exemption under Section 2 of this Act.
16    (6) Personal property sold by a teacher-sponsored student
17organization affiliated with an elementary or secondary school
18located in Illinois.
19    (7) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

 

 

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

 

 

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1provisions of Section 3-55.
2    (8) Until June 30, 2013, fuel and petroleum products sold
3to or used by an air common carrier, certified by the carrier
4to be used for consumption, shipment, or storage in the conduct
5of its business as an air common carrier, for a flight destined
6for or returning from a location or locations outside the
7United States without regard to previous or subsequent domestic
8stopovers.
9    Beginning July 1, 2013, fuel and petroleum products sold to
10or used by an air carrier, certified by the carrier to be used
11for consumption, shipment, or storage in the conduct of its
12business as an air common carrier, for a flight that (i) is
13engaged in foreign trade or is engaged in trade between the
14United States and any of its possessions and (ii) transports at
15least one individual or package for hire from the city of
16origination to the city of final destination on the same
17aircraft, without regard to a change in the flight number of
18that aircraft.
19    (9) Proceeds of mandatory service charges separately
20stated on customers' bills for the purchase and consumption of
21food and beverages, to the extent that the proceeds of the
22service charge are in fact turned over as tips or as a
23substitute for tips to the employees who participate directly
24in preparing, serving, hosting or cleaning up the food or
25beverage function with respect to which the service charge is
26imposed.

 

 

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1    (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of rigs,
3rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
4tubular goods, including casing and drill strings, (iii) pumps
5and pump-jack units, (iv) storage tanks and flow lines, (v) any
6individual replacement part for oil field exploration,
7drilling, and production equipment, and (vi) machinery and
8equipment purchased for lease; but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code.
10    (11) Photoprocessing machinery and equipment, including
11repair and replacement parts, both new and used, including that
12manufactured on special order, certified by the purchaser to be
13used primarily for photoprocessing, and including
14photoprocessing machinery and equipment purchased for lease.
15    (12) Until July 1, 2023, coal and aggregate exploration,
16mining, off-highway hauling, processing, maintenance, and
17reclamation equipment, including replacement parts and
18equipment, and including equipment purchased for lease, but
19excluding motor vehicles required to be registered under the
20Illinois Vehicle Code. The changes made to this Section by
21Public Act 97-767 apply on and after July 1, 2003, but no claim
22for credit or refund is allowed on or after August 16, 2013
23(the effective date of Public Act 98-456) for such taxes paid
24during the period beginning July 1, 2003 and ending on August
2516, 2013 (the effective date of Public Act 98-456).
26    (13) Beginning January 1, 1992 and through June 30, 2016,

 

 

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1food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages, soft
3drinks and food that has been prepared for immediate
4consumption) and prescription and non-prescription medicines,
5drugs, medical appliances, and insulin, urine testing
6materials, syringes, and needles used by diabetics, for human
7use, when purchased for use by a person receiving medical
8assistance under Article V of the Illinois Public Aid Code who
9resides in a licensed long-term care facility, as defined in
10the Nursing Home Care Act, or in a licensed facility as defined
11in the ID/DD Community Care Act, the MC/DD Act, or the
12Specialized Mental Health Rehabilitation Act of 2013.
13    (14) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (15) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (15) is exempt from the provisions
21of Section 3-55, and the exemption provided for under this item
22(15) applies for all periods beginning May 30, 1995, but no
23claim for credit or refund is allowed on or after January 1,
242008 (the effective date of Public Act 95-88) for such taxes
25paid during the period beginning May 30, 2000 and ending on
26January 1, 2008 (the effective date of Public Act 95-88).

 

 

HB3034- 40 -LRB101 08896 HLH 53986 b

1    (16) Computers and communications equipment utilized for
2any hospital purpose and equipment used in the diagnosis,
3analysis, or treatment of hospital patients sold to a lessor
4who leases the equipment, under a lease of one year or longer
5executed or in effect at the time of the purchase, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of the
8Retailers' Occupation Tax Act.
9    (17) Personal property sold to a lessor who leases the
10property, under a lease of one year or longer executed or in
11effect at the time of the purchase, to a governmental body that
12has been issued an active tax exemption identification number
13by the Department under Section 1g of the Retailers' Occupation
14Tax Act.
15    (18) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is donated for
18disaster relief to be used in a State or federally declared
19disaster area in Illinois or bordering Illinois by a
20manufacturer or retailer that is registered in this State to a
21corporation, society, association, foundation, or institution
22that has been issued a sales tax exemption identification
23number by the Department that assists victims of the disaster
24who reside within the declared disaster area.
25    (19) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

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1before December 31, 2004, personal property that is used in the
2performance of infrastructure repairs in this State, including
3but not limited to municipal roads and streets, access roads,
4bridges, sidewalks, waste disposal systems, water and sewer
5line extensions, water distribution and purification
6facilities, storm water drainage and retention facilities, and
7sewage treatment facilities, resulting from a State or
8federally declared disaster in Illinois or bordering Illinois
9when such repairs are initiated on facilities located in the
10declared disaster area within 6 months after the disaster.
11    (20) Beginning July 1, 1999, game or game birds sold at a
12"game breeding and hunting preserve area" as that term is used
13in the Wildlife Code. This paragraph is exempt from the
14provisions of Section 3-55.
15    (21) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the Department
19to be organized and operated exclusively for educational
20purposes. For purposes of this exemption, "a corporation,
21limited liability company, society, association, foundation,
22or institution organized and operated exclusively for
23educational purposes" means all tax-supported public schools,
24private schools that offer systematic instruction in useful
25branches of learning by methods common to public schools and
26that compare favorably in their scope and intensity with the

 

 

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1course of study presented in tax-supported schools, and
2vocational or technical schools or institutes organized and
3operated exclusively to provide a course of study of not less
4than 6 weeks duration and designed to prepare individuals to
5follow a trade or to pursue a manual, technical, mechanical,
6industrial, business, or commercial occupation.
7    (22) Beginning January 1, 2000, personal property,
8including food, purchased through fundraising events for the
9benefit of a public or private elementary or secondary school,
10a group of those schools, or one or more school districts if
11the events are sponsored by an entity recognized by the school
12district that consists primarily of volunteers and includes
13parents and teachers of the school children. This paragraph
14does not apply to fundraising events (i) for the benefit of
15private home instruction or (ii) for which the fundraising
16entity purchases the personal property sold at the events from
17another individual or entity that sold the property for the
18purpose of resale by the fundraising entity and that profits
19from the sale to the fundraising entity. This paragraph is
20exempt from the provisions of Section 3-55.
21    (23) Beginning January 1, 2000 and through December 31,
222001, new or used automatic vending machines that prepare and
23serve hot food and beverages, including coffee, soup, and other
24items, and replacement parts for these machines. Beginning
25January 1, 2002 and through June 30, 2003, machines and parts
26for machines used in commercial, coin-operated amusement and

 

 

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1vending business if a use or occupation tax is paid on the
2gross receipts derived from the use of the commercial,
3coin-operated amusement and vending machines. This paragraph
4is exempt from the provisions of Section 3-55.
5    (24) Beginning on August 2, 2001 (the effective date of
6Public Act 92-227) this amendatory Act of the 92nd General
7Assembly, computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients sold to a lessor
10who leases the equipment, under a lease of one year or longer
11executed or in effect at the time of the purchase, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. This paragraph is exempt from
15the provisions of Section 3-55.
16    (25) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227) this amendatory Act of the 92nd General
18Assembly, personal property sold to a lessor who leases the
19property, under a lease of one year or longer executed or in
20effect at the time of the purchase, to a governmental body that
21has been issued an active tax exemption identification number
22by the Department under Section 1g of the Retailers' Occupation
23Tax Act. This paragraph is exempt from the provisions of
24Section 3-55.
25    (26) Beginning on January 1, 2002 and through June 30,
262016, tangible personal property purchased from an Illinois

 

 

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

 

 

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1Title IV of the Environmental Protection Act. This paragraph is
2exempt from the provisions of Section 3-55.
3    (28) Tangible personal property sold to a
4public-facilities corporation, as described in Section
511-65-10 of the Illinois Municipal Code, for purposes of
6constructing or furnishing a municipal convention hall, but
7only if the legal title to the municipal convention hall is
8transferred to the municipality without any further
9consideration by or on behalf of the municipality at the time
10of the completion of the municipal convention hall or upon the
11retirement or redemption of any bonds or other debt instruments
12issued by the public-facilities corporation in connection with
13the development of the municipal convention hall. This
14exemption includes existing public-facilities corporations as
15provided in Section 11-65-25 of the Illinois Municipal Code.
16This paragraph is exempt from the provisions of Section 3-55.
17    (29) 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 transfer of
6qualifying tangible personal property incident to the
7modification, refurbishment, completion, replacement, repair,
8or maintenance of an aircraft by persons who (i) hold an Air
9Agency Certificate and are empowered to operate an approved
10repair station by the Federal Aviation Administration, (ii)
11have a Class IV Rating, and (iii) conduct operations in
12accordance with Part 145 of the Federal Aviation Regulations.
13The exemption does not include aircraft operated by a
14commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part 129
16of the Federal Aviation Regulations. The changes made to this
17paragraph (29) by Public Act 98-534 are declarative of existing
18law.
19    (30) Beginning January 1, 2017, menstrual pads, tampons,
20and menstrual cups.
21    (31) Tangible personal property transferred to a purchaser
22who is exempt from tax by operation of federal law. This
23paragraph is exempt from the provisions of Section 3-55.
24    (32) Agricultural goods purchased at a farmer's market.
25This paragraph is exempt from the provisions of Section 3-55.
26(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;

 

 

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1100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
21-4-19; revised 1-8-19.)
 
3    Section 20. The Retailers' Occupation Tax Act is amended by
4changing Section 2-5 as follows:
 
5    (35 ILCS 120/2-5)
6    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
7sale of the following tangible personal property are exempt
8from the tax imposed by this Act:
9        (1) Farm chemicals.
10        (2) Farm machinery and equipment, both new and used,
11    including that manufactured on special order, certified by
12    the purchaser to be used primarily for production
13    agriculture or State or federal agricultural programs,
14    including individual replacement parts for the machinery
15    and equipment, including machinery and equipment purchased
16    for lease, and including implements of husbandry defined in
17    Section 1-130 of the Illinois Vehicle Code, farm machinery
18    and agricultural chemical and fertilizer spreaders, and
19    nurse wagons required to be registered under Section 3-809
20    of the Illinois Vehicle Code, but excluding other motor
21    vehicles required to be registered under the Illinois
22    Vehicle Code. Horticultural polyhouses or hoop houses used
23    for propagating, growing, or overwintering plants shall be
24    considered farm machinery and equipment under this item

 

 

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1    (2). Agricultural chemical tender tanks and dry boxes shall
2    include units sold separately from a motor vehicle required
3    to be licensed and units sold mounted on a motor vehicle
4    required to be licensed, if the selling price of the tender
5    is separately stated.
6        Farm machinery and equipment shall include precision
7    farming equipment that is installed or purchased to be
8    installed on farm machinery and equipment including, but
9    not limited to, tractors, harvesters, sprayers, planters,
10    seeders, or spreaders. Precision farming equipment
11    includes, but is not limited to, soil testing sensors,
12    computers, monitors, software, global positioning and
13    mapping systems, and other such equipment.
14        Farm machinery and equipment also includes computers,
15    sensors, software, and related equipment used primarily in
16    the computer-assisted operation of production agriculture
17    facilities, equipment, and activities such as, but not
18    limited to, the collection, monitoring, and correlation of
19    animal and crop data for the purpose of formulating animal
20    diets and agricultural chemicals. This item (2) is exempt
21    from the provisions of Section 2-70.
22        (3) Until July 1, 2003, distillation machinery and
23    equipment, sold as a unit or kit, assembled or installed by
24    the retailer, certified by the user to be used only for the
25    production of ethyl alcohol that will be used for
26    consumption as motor fuel or as a component of motor fuel

 

 

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1    for the personal use of the user, and not subject to sale
2    or resale.
3        (4) Until July 1, 2003 and beginning again September 1,
4    2004 through August 30, 2014, graphic arts machinery and
5    equipment, including repair and replacement parts, both
6    new and used, and including that manufactured on special
7    order or purchased for lease, certified by the purchaser to
8    be used primarily for graphic arts production. Equipment
9    includes chemicals or chemicals acting as catalysts but
10    only if the chemicals or chemicals acting as catalysts
11    effect a direct and immediate change upon a graphic arts
12    product. Beginning on July 1, 2017, graphic arts machinery
13    and equipment is included in the manufacturing and
14    assembling machinery and equipment exemption under
15    paragraph (14).
16        (5) A motor vehicle that is used for automobile
17    renting, as defined in the Automobile Renting Occupation
18    and Use Tax Act. This paragraph is exempt from the
19    provisions of Section 2-70.
20        (6) Personal property sold by a teacher-sponsored
21    student organization affiliated with an elementary or
22    secondary school located in Illinois.
23        (7) Until July 1, 2003, proceeds of that portion of the
24    selling price of a passenger car the sale of which is
25    subject to the Replacement Vehicle Tax.
26        (8) Personal property sold to an Illinois county fair

 

 

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1    association for use in conducting, operating, or promoting
2    the county fair.
3        (9) Personal property sold to a not-for-profit arts or
4    cultural organization that establishes, by proof required
5    by the Department by rule, that it has received an
6    exemption under Section 501(c)(3) of the Internal Revenue
7    Code and that is organized and operated primarily for the
8    presentation or support of arts or cultural programming,
9    activities, or services. These organizations include, but
10    are not limited to, music and dramatic arts organizations
11    such as symphony orchestras and theatrical groups, arts and
12    cultural service organizations, local arts councils,
13    visual arts organizations, and media arts organizations.
14    On and after July 1, 2001 (the effective date of Public Act
15    92-35), however, an entity otherwise eligible for this
16    exemption shall not make tax-free purchases unless it has
17    an active identification number issued by the Department.
18        (10) Personal property sold by a corporation, society,
19    association, foundation, institution, or organization,
20    other than a limited liability company, that is organized
21    and operated as a not-for-profit service enterprise for the
22    benefit of persons 65 years of age or older if the personal
23    property was not purchased by the enterprise for the
24    purpose of resale by the enterprise.
25        (11) Personal property sold to a governmental body, to
26    a corporation, society, association, foundation, or

 

 

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1    institution organized and operated exclusively for
2    charitable, religious, or educational purposes, or to a
3    not-for-profit corporation, society, association,
4    foundation, institution, or organization that has no
5    compensated officers or employees and that is organized and
6    operated primarily for the recreation of persons 55 years
7    of age or older. A limited liability company may qualify
8    for the exemption under this paragraph only if the limited
9    liability company is organized and operated exclusively
10    for educational purposes. On and after July 1, 1987,
11    however, no entity otherwise eligible for this exemption
12    shall make tax-free purchases unless it has an active
13    identification number issued by the Department.
14        (12) (Blank).
15        (12-5) On and after July 1, 2003 and through June 30,
16    2004, motor vehicles of the second division with a gross
17    vehicle weight in excess of 8,000 pounds that are subject
18    to the commercial distribution fee imposed under Section
19    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
20    2004 and through June 30, 2005, the use in this State of
21    motor vehicles of the second division: (i) with a gross
22    vehicle weight rating in excess of 8,000 pounds; (ii) that
23    are subject to the commercial distribution fee imposed
24    under Section 3-815.1 of the Illinois Vehicle Code; and
25    (iii) that are primarily used for commercial purposes.
26    Through June 30, 2005, this exemption applies to repair and

 

 

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1    replacement parts added after the initial purchase of such
2    a motor vehicle if that motor vehicle is used in a manner
3    that would qualify for the rolling stock exemption
4    otherwise provided for in this Act. For purposes of this
5    paragraph, "used for commercial purposes" means the
6    transportation of persons or property in furtherance of any
7    commercial or industrial enterprise whether for-hire or
8    not.
9        (13) Proceeds from sales to owners, lessors, or
10    shippers of tangible personal property that is utilized by
11    interstate carriers for hire for use as rolling stock
12    moving in interstate commerce and equipment operated by a
13    telecommunications provider, licensed as a common carrier
14    by the Federal Communications Commission, which is
15    permanently installed in or affixed to aircraft moving in
16    interstate commerce.
17        (14) Machinery and equipment that will be used by the
18    purchaser, or a lessee of the purchaser, primarily in the
19    process of manufacturing or assembling tangible personal
20    property for wholesale or retail sale or lease, whether the
21    sale or lease is made directly by the manufacturer or by
22    some other person, whether the materials used in the
23    process are owned by the manufacturer or some other person,
24    or whether the sale or lease is made apart from or as an
25    incident to the seller's engaging in the service occupation
26    of producing machines, tools, dies, jigs, patterns,

 

 

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1    gauges, or other similar items of no commercial value on
2    special order for a particular purchaser. The exemption
3    provided by this paragraph (14) does not include machinery
4    and equipment used in (i) the generation of electricity for
5    wholesale or retail sale; (ii) the generation or treatment
6    of natural or artificial gas for wholesale or retail sale
7    that is delivered to customers through pipes, pipelines, or
8    mains; or (iii) the treatment of water for wholesale or
9    retail sale that is delivered to customers through pipes,
10    pipelines, or mains. The provisions of Public Act 98-583
11    are declaratory of existing law as to the meaning and scope
12    of this exemption. Beginning on July 1, 2017, the exemption
13    provided by this paragraph (14) includes, but is not
14    limited to, graphic arts machinery and equipment, as
15    defined in paragraph (4) of this Section.
16        (15) Proceeds of mandatory service charges separately
17    stated on customers' bills for purchase and consumption of
18    food and beverages, to the extent that the proceeds of the
19    service charge are in fact turned over as tips or as a
20    substitute for tips to the employees who participate
21    directly in preparing, serving, hosting or cleaning up the
22    food or beverage function with respect to which the service
23    charge is imposed.
24        (16) Tangible personal property sold to a purchaser if
25    the purchaser is exempt from use tax by operation of
26    federal law. This paragraph is exempt from the provisions

 

 

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1    of Section 2-70.
2        (17) Tangible personal property sold to a common
3    carrier by rail or motor that receives the physical
4    possession of the property in Illinois and that transports
5    the property, or shares with another common carrier in the
6    transportation of the property, out of Illinois on a
7    standard uniform bill of lading showing the seller of the
8    property as the shipper or consignor of the property to a
9    destination outside Illinois, for use outside Illinois.
10        (18) Legal tender, currency, medallions, or gold or
11    silver coinage issued by the State of Illinois, the
12    government of the United States of America, or the
13    government of any foreign country, and bullion.
14        (19) Until July 1, 2003, oil field exploration,
15    drilling, and production equipment, including (i) rigs and
16    parts of rigs, rotary rigs, cable tool rigs, and workover
17    rigs, (ii) pipe and tubular goods, including casing and
18    drill strings, (iii) pumps and pump-jack units, (iv)
19    storage tanks and flow lines, (v) any individual
20    replacement part for oil field exploration, drilling, and
21    production equipment, and (vi) machinery and equipment
22    purchased for lease; but excluding motor vehicles required
23    to be registered under the Illinois Vehicle Code.
24        (20) Photoprocessing machinery and equipment,
25    including repair and replacement parts, both new and used,
26    including that manufactured on special order, certified by

 

 

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1    the purchaser to be used primarily for photoprocessing, and
2    including photoprocessing machinery and equipment
3    purchased for lease.
4        (21) Until July 1, 2023, coal and aggregate
5    exploration, mining, off-highway hauling, processing,
6    maintenance, and reclamation equipment, including
7    replacement parts and equipment, and including equipment
8    purchased for lease, but excluding motor vehicles required
9    to be registered under the Illinois Vehicle Code. The
10    changes made to this Section by Public Act 97-767 apply on
11    and after July 1, 2003, but no claim for credit or refund
12    is allowed on or after August 16, 2013 (the effective date
13    of Public Act 98-456) for such taxes paid during the period
14    beginning July 1, 2003 and ending on August 16, 2013 (the
15    effective date of Public Act 98-456).
16        (22) Until June 30, 2013, fuel and petroleum products
17    sold to or used by an air carrier, certified by the carrier
18    to be used for consumption, shipment, or storage in the
19    conduct of its business as an air common carrier, for a
20    flight destined for or returning from a location or
21    locations outside the United States without regard to
22    previous or subsequent domestic stopovers.
23        Beginning July 1, 2013, fuel and petroleum products
24    sold to or used by an air carrier, certified by the carrier
25    to be used for consumption, shipment, or storage in the
26    conduct of its business as an air common carrier, for a

 

 

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1    flight that (i) is engaged in foreign trade or is engaged
2    in trade between the United States and any of its
3    possessions and (ii) transports at least one individual or
4    package for hire from the city of origination to the city
5    of final destination on the same aircraft, without regard
6    to a change in the flight number of that aircraft.
7        (23) A transaction in which the purchase order is
8    received by a florist who is located outside Illinois, but
9    who has a florist located in Illinois deliver the property
10    to the purchaser or the purchaser's donee in Illinois.
11        (24) Fuel consumed or used in the operation of ships,
12    barges, or vessels that are used primarily in or for the
13    transportation of property or the conveyance of persons for
14    hire on rivers bordering on this State if the fuel is
15    delivered by the seller to the purchaser's barge, ship, or
16    vessel while it is afloat upon that bordering river.
17        (25) Except as provided in item (25-5) of this Section,
18    a motor vehicle sold in this State to a nonresident even
19    though the motor vehicle is delivered to the nonresident in
20    this State, if the motor vehicle is not to be titled in
21    this State, and if a drive-away permit is issued to the
22    motor vehicle as provided in Section 3-603 of the Illinois
23    Vehicle Code or if the nonresident purchaser has vehicle
24    registration plates to transfer to the motor vehicle upon
25    returning to his or her home state. The issuance of the
26    drive-away permit or having the out-of-state registration

 

 

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1    plates to be transferred is prima facie evidence that the
2    motor vehicle will not be titled in this State.
3        (25-5) The exemption under item (25) does not apply if
4    the state in which the motor vehicle will be titled does
5    not allow a reciprocal exemption for a motor vehicle sold
6    and delivered in that state to an Illinois resident but
7    titled in Illinois. The tax collected under this Act on the
8    sale of a motor vehicle in this State to a resident of
9    another state that does not allow a reciprocal exemption
10    shall be imposed at a rate equal to the state's rate of tax
11    on taxable property in the state in which the purchaser is
12    a resident, except that the tax shall not exceed the tax
13    that would otherwise be imposed under this Act. At the time
14    of the sale, the purchaser shall execute a statement,
15    signed under penalty of perjury, of his or her intent to
16    title the vehicle in the state in which the purchaser is a
17    resident within 30 days after the sale and of the fact of
18    the payment to the State of Illinois of tax in an amount
19    equivalent to the state's rate of tax on taxable property
20    in his or her state of residence and shall submit the
21    statement to the appropriate tax collection agency in his
22    or her state of residence. In addition, the retailer must
23    retain a signed copy of the statement in his or her
24    records. Nothing in this item shall be construed to require
25    the removal of the vehicle from this state following the
26    filing of an intent to title the vehicle in the purchaser's

 

 

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1    state of residence if the purchaser titles the vehicle in
2    his or her state of residence within 30 days after the date
3    of sale. The tax collected under this Act in accordance
4    with this item (25-5) shall be proportionately distributed
5    as if the tax were collected at the 6.25% general rate
6    imposed under this Act.
7        (25-7) Beginning on July 1, 2007, no tax is imposed
8    under this Act on the sale of an aircraft, as defined in
9    Section 3 of the Illinois Aeronautics Act, if all of the
10    following conditions are met:
11            (1) the aircraft leaves this State within 15 days
12        after the later of either the issuance of the final
13        billing for the sale of the aircraft, or the authorized
14        approval for return to service, completion of the
15        maintenance record entry, and completion of the test
16        flight and ground test for inspection, as required by
17        14 C.F.R. 91.407;
18            (2) the aircraft is not based or registered in this
19        State after the sale of the aircraft; and
20            (3) the seller retains in his or her books and
21        records and provides to the Department a signed and
22        dated certification from the purchaser, on a form
23        prescribed by the Department, certifying that the
24        requirements of this item (25-7) are met. The
25        certificate must also include the name and address of
26        the purchaser, the address of the location where the

 

 

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1        aircraft is to be titled or registered, the address of
2        the primary physical location of the aircraft, and
3        other information that the Department may reasonably
4        require.
5        For purposes of this item (25-7):
6        "Based in this State" means hangared, stored, or
7    otherwise used, excluding post-sale customizations as
8    defined in this Section, for 10 or more days in each
9    12-month period immediately following the date of the sale
10    of the aircraft.
11        "Registered in this State" means an aircraft
12    registered with the Department of Transportation,
13    Aeronautics Division, or titled or registered with the
14    Federal Aviation Administration to an address located in
15    this State.
16        This paragraph (25-7) is exempt from the provisions of
17    Section 2-70.
18        (26) Semen used for artificial insemination of
19    livestock for direct agricultural production.
20        (27) Horses, or interests in horses, registered with
21    and meeting the requirements of any of the Arabian Horse
22    Club Registry of America, Appaloosa Horse Club, American
23    Quarter Horse Association, United States Trotting
24    Association, or Jockey Club, as appropriate, used for
25    purposes of breeding or racing for prizes. This item (27)
26    is exempt from the provisions of Section 2-70, and the

 

 

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1    exemption provided for under this item (27) applies for all
2    periods beginning May 30, 1995, but no claim for credit or
3    refund is allowed on or after January 1, 2008 (the
4    effective date of Public Act 95-88) for such taxes paid
5    during the period beginning May 30, 2000 and ending on
6    January 1, 2008 (the effective date of Public Act 95-88).
7        (28) Computers and communications equipment utilized
8    for any hospital purpose and equipment used in the
9    diagnosis, analysis, or treatment of hospital patients
10    sold to a lessor who leases the equipment, under a lease of
11    one year or longer executed or in effect at the time of the
12    purchase, to a hospital that has been issued an active tax
13    exemption identification number by the Department under
14    Section 1g of this Act.
15        (29) Personal property sold to a lessor who leases the
16    property, under a lease of one year or longer executed or
17    in effect at the time of the purchase, to a governmental
18    body that has been issued an active tax exemption
19    identification number by the Department under Section 1g of
20    this Act.
21        (30) Beginning with taxable years ending on or after
22    December 31, 1995 and ending with taxable years ending on
23    or before December 31, 2004, personal property that is
24    donated for disaster relief to be used in a State or
25    federally declared disaster area in Illinois or bordering
26    Illinois by a manufacturer or retailer that is registered

 

 

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1    in this State to a corporation, society, association,
2    foundation, or institution that has been issued a sales tax
3    exemption identification number by the Department that
4    assists victims of the disaster who reside within the
5    declared disaster area.
6        (31) Beginning with taxable years ending on or after
7    December 31, 1995 and ending with taxable years ending on
8    or before December 31, 2004, personal property that is used
9    in the performance of infrastructure repairs in this State,
10    including but not limited to municipal roads and streets,
11    access roads, bridges, sidewalks, waste disposal systems,
12    water and sewer line extensions, water distribution and
13    purification facilities, storm water drainage and
14    retention facilities, and sewage treatment facilities,
15    resulting from a State or federally declared disaster in
16    Illinois or bordering Illinois when such repairs are
17    initiated on facilities located in the declared disaster
18    area within 6 months after the disaster.
19        (32) Beginning July 1, 1999, game or game birds sold at
20    a "game breeding and hunting preserve area" as that term is
21    used in the Wildlife Code. This paragraph is exempt from
22    the provisions of Section 2-70.
23        (33) A motor vehicle, as that term is defined in
24    Section 1-146 of the Illinois Vehicle Code, that is donated
25    to a corporation, limited liability company, society,
26    association, foundation, or institution that is determined

 

 

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

 

 

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1    purchases the personal property sold at the events from
2    another individual or entity that sold the property for the
3    purpose of resale by the fundraising entity and that
4    profits from the sale to the fundraising entity. This
5    paragraph is exempt from the provisions of Section 2-70.
6        (35) Beginning January 1, 2000 and through December 31,
7    2001, new or used automatic vending machines that prepare
8    and serve hot food and beverages, including coffee, soup,
9    and other items, and replacement parts for these machines.
10    Beginning January 1, 2002 and through June 30, 2003,
11    machines and parts for machines used in commercial,
12    coin-operated amusement and vending business if a use or
13    occupation tax is paid on the gross receipts derived from
14    the use of the commercial, coin-operated amusement and
15    vending machines. This paragraph is exempt from the
16    provisions of Section 2-70.
17        (35-5) Beginning August 23, 2001 and through June 30,
18    2016, food for human consumption that is to be consumed off
19    the premises where it is sold (other than alcoholic
20    beverages, soft drinks, and food that has been prepared for
21    immediate consumption) and prescription and
22    nonprescription medicines, drugs, medical appliances, and
23    insulin, urine testing materials, syringes, and needles
24    used by diabetics, for human use, when purchased for use by
25    a person receiving medical assistance under Article V of
26    the Illinois Public Aid Code who resides in a licensed

 

 

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1    long-term care facility, as defined in the Nursing Home
2    Care Act, or a licensed facility as defined in the ID/DD
3    Community Care Act, the MC/DD Act, or the Specialized
4    Mental Health Rehabilitation Act of 2013.
5        (36) Beginning August 2, 2001, computers and
6    communications equipment utilized for any hospital purpose
7    and equipment used in the diagnosis, analysis, or treatment
8    of hospital patients sold to a lessor who leases the
9    equipment, under a lease of one year or longer executed or
10    in effect at the time of the purchase, to a hospital that
11    has been issued an active tax exemption identification
12    number by the Department under Section 1g of this Act. This
13    paragraph is exempt from the provisions of Section 2-70.
14        (37) Beginning August 2, 2001, personal property sold
15    to a lessor who leases the property, under a lease of one
16    year or longer executed or in effect at the time of the
17    purchase, to a governmental body that has been issued an
18    active tax exemption identification number by the
19    Department under Section 1g of this Act. This paragraph is
20    exempt from the provisions of Section 2-70.
21        (38) Beginning on January 1, 2002 and through June 30,
22    2016, tangible personal property purchased from an
23    Illinois retailer by a taxpayer engaged in centralized
24    purchasing activities in Illinois who will, upon receipt of
25    the property in Illinois, temporarily store the property in
26    Illinois (i) for the purpose of subsequently transporting

 

 

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1    it outside this State for use or consumption thereafter
2    solely outside this State or (ii) for the purpose of being
3    processed, fabricated, or manufactured into, attached to,
4    or incorporated into other tangible personal property to be
5    transported outside this State and thereafter used or
6    consumed solely outside this State. The Director of Revenue
7    shall, pursuant to rules adopted in accordance with the
8    Illinois Administrative Procedure Act, issue a permit to
9    any taxpayer in good standing with the Department who is
10    eligible for the exemption under this paragraph (38). The
11    permit issued under this paragraph (38) shall authorize the
12    holder, to the extent and in the manner specified in the
13    rules adopted under this Act, to purchase tangible personal
14    property from a retailer exempt from the taxes imposed by
15    this Act. Taxpayers shall maintain all necessary books and
16    records to substantiate the use and consumption of all such
17    tangible personal property outside of the State of
18    Illinois.
19        (39) Beginning January 1, 2008, tangible personal
20    property used in the construction or maintenance of a
21    community water supply, as defined under Section 3.145 of
22    the Environmental Protection Act, that is operated by a
23    not-for-profit corporation that holds a valid water supply
24    permit issued under Title IV of the Environmental
25    Protection Act. This paragraph is exempt from the
26    provisions of Section 2-70.

 

 

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1        (40) Beginning January 1, 2010, materials, parts,
2    equipment, components, and furnishings incorporated into
3    or upon an aircraft as part of the modification,
4    refurbishment, completion, replacement, repair, or
5    maintenance of the aircraft. This exemption includes
6    consumable supplies used in the modification,
7    refurbishment, completion, replacement, repair, and
8    maintenance of aircraft, but excludes any materials,
9    parts, equipment, components, and consumable supplies used
10    in the modification, replacement, repair, and maintenance
11    of aircraft engines or power plants, whether such engines
12    or power plants are installed or uninstalled upon any such
13    aircraft. "Consumable supplies" include, but are not
14    limited to, adhesive, tape, sandpaper, general purpose
15    lubricants, cleaning solution, latex gloves, and
16    protective films. This exemption applies only to the sale
17    of qualifying tangible personal property to persons who
18    modify, refurbish, complete, replace, or maintain an
19    aircraft and who (i) hold an Air Agency Certificate and are
20    empowered to operate an approved repair station by the
21    Federal Aviation Administration, (ii) have a Class IV
22    Rating, and (iii) conduct operations in accordance with
23    Part 145 of the Federal Aviation Regulations. The exemption
24    does not include aircraft operated by a commercial air
25    carrier providing scheduled passenger air service pursuant
26    to authority issued under Part 121 or Part 129 of the

 

 

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1    Federal Aviation Regulations. The changes made to this
2    paragraph (40) by Public Act 98-534 are declarative of
3    existing law.
4        (41) Tangible personal property sold to a
5    public-facilities corporation, as described in Section
6    11-65-10 of the Illinois Municipal Code, for purposes of
7    constructing or furnishing a municipal convention hall,
8    but only if the legal title to the municipal convention
9    hall is transferred to the municipality without any further
10    consideration by or on behalf of the municipality at the
11    time of the completion of the municipal convention hall or
12    upon the retirement or redemption of any bonds or other
13    debt instruments issued by the public-facilities
14    corporation in connection with the development of the
15    municipal convention hall. This exemption includes
16    existing public-facilities corporations as provided in
17    Section 11-65-25 of the Illinois Municipal Code. This
18    paragraph is exempt from the provisions of Section 2-70.
19        (42) Beginning January 1, 2017, menstrual pads,
20    tampons, and menstrual cups.
21        (43) Merchandise that is subject to the Rental Purchase
22    Agreement Occupation and Use Tax. The purchaser must
23    certify that the item is purchased to be rented subject to
24    a rental purchase agreement, as defined in the Rental
25    Purchase Agreement Act, and provide proof of registration
26    under the Rental Purchase Agreement Occupation and Use Tax

 

 

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1    Act. This paragraph is exempt from the provisions of
2    Section 2-70.
3        (44) Agricultural goods purchased at a farmer's
4    market. This paragraph is exempt from the provisions of
5    Section 2-70.
6(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
7100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
81-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;
9100-1171, eff. 1-4-19; revised 1-8-19.)