101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3470

 

Introduced , by Rep. Monica Bristow

 

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, beginning on January 1, 2020, meals and food products for human consumption furnished or served to low-income elderly persons at or below cost by a nonprofit organization or governmental agency under a program funded by this State or the United States are exempt from taxation under the Acts. Provides that the exemption is exempt from the Acts' automatic sunset provisions. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3470LRB101 07072 HLH 52109 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) Beginning January 1, 2020, meals and food products for
20human consumption furnished or served to low-income elderly
21persons at or below cost by a nonprofit organization or
22governmental agency under a program funded by this State or the
23United States for such purposes. This paragraph is exempt from
24the provisions of Section 3-90.
25(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
26100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.

 

 

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16-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised
21-8-19.)
 
3    Section 10. The Service Use Tax Act is amended by changing
4Section 3-5 as follows:
 
5    (35 ILCS 110/3-5)
6    Sec. 3-5. Exemptions. Use of the following tangible
7personal property is exempt from the tax imposed by this Act:
8    (1) Personal property purchased from a corporation,
9society, association, foundation, institution, or
10organization, other than a limited liability company, that is
11organized and operated as a not-for-profit service enterprise
12for the benefit of persons 65 years of age or older if the
13personal property was not purchased by the enterprise for the
14purpose of resale by the enterprise.
15    (2) Personal property purchased by a non-profit Illinois
16county fair association for use in conducting, operating, or
17promoting the county fair.
18    (3) Personal property purchased by a not-for-profit arts or
19cultural organization that establishes, by proof required by
20the Department by rule, that it has received an exemption under
21Section 501(c)(3) of the Internal Revenue Code and that is
22organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,

 

 

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1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after July 1, 2001 (the
5effective date of Public Act 92-35) this amendatory Act of the
692nd General Assembly, however, an entity otherwise eligible
7for this exemption shall not make tax-free purchases unless it
8has an active identification number issued by the Department.
9    (4) Legal tender, currency, medallions, or gold or silver
10coinage issued by the State of Illinois, the government of the
11United States of America, or the government of any foreign
12country, and bullion.
13    (5) Until July 1, 2003 and beginning again on September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product. Beginning on July
221, 2017, graphic arts machinery and equipment is included in
23the manufacturing and assembling machinery and equipment
24exemption under Section 2 of this Act.
25    (6) Personal property purchased from a teacher-sponsored
26student organization affiliated with an elementary or

 

 

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

 

 

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

 

 

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

 

 

HB3470- 24 -LRB101 07072 HLH 52109 b

1mining, off-highway hauling, processing, maintenance, and
2reclamation equipment, including replacement parts and
3equipment, and including equipment purchased for lease, but
4excluding motor vehicles required to be registered under the
5Illinois Vehicle Code. The changes made to this Section by
6Public Act 97-767 apply on and after July 1, 2003, but no claim
7for credit or refund is allowed on or after August 16, 2013
8(the effective date of Public Act 98-456) for such taxes paid
9during the period beginning July 1, 2003 and ending on August
1016, 2013 (the effective date of Public Act 98-456).
11    (13) Semen used for artificial insemination of livestock
12for direct agricultural production.
13    (14) Horses, or interests in horses, registered with and
14meeting the requirements of any of the Arabian Horse Club
15Registry of America, Appaloosa Horse Club, American Quarter
16Horse Association, United States Trotting Association, or
17Jockey Club, as appropriate, used for purposes of breeding or
18racing for prizes. This item (14) is exempt from the provisions
19of Section 3-75, and the exemption provided for under this item
20(14) applies for all periods beginning May 30, 1995, but no
21claim for credit or refund is allowed on or after January 1,
222008 (the effective date of Public Act 95-88) this amendatory
23Act of the 95th General Assembly for such taxes paid during the
24period beginning May 30, 2000 and ending on January 1, 2008
25(the effective date of Public Act 95-88) this amendatory Act of
26the 95th General Assembly.

 

 

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

 

 

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

 

 

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1    (18) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (19) Beginning July 1, 1999, game or game birds purchased
14at a "game breeding and hunting preserve area" as that term is
15used in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-75.
17    (20) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

 

 

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1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9    (21) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-75.
23    (22) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

 

 

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1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 3-75.
7    (23) Beginning August 23, 2001 and through June 30, 2016,
8food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages, soft
10drinks, and food that has been prepared for immediate
11consumption) and prescription and nonprescription medicines,
12drugs, medical appliances, and insulin, urine testing
13materials, syringes, and needles used by diabetics, for human
14use, when purchased for use by a person receiving medical
15assistance under Article V of the Illinois Public Aid Code who
16resides in a licensed long-term care facility, as defined in
17the Nursing Home Care Act, or in a licensed facility as defined
18in the ID/DD Community Care Act, the MC/DD Act, or the
19Specialized Mental Health Rehabilitation Act of 2013.
20    (24) Beginning on August 2, 2001 (the effective date of
21Public Act 92-227) this amendatory Act of the 92nd General
22Assembly, computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients purchased by a
25lessor who leases the equipment, under a lease of one year or
26longer executed or in effect at the time the lessor would

 

 

HB3470- 30 -LRB101 07072 HLH 52109 b

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

 

 

HB3470- 31 -LRB101 07072 HLH 52109 b

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

 

 

HB3470- 32 -LRB101 07072 HLH 52109 b

1aircraft. This exemption includes consumable supplies used in
2the modification, refurbishment, completion, replacement,
3repair, and maintenance of aircraft, but excludes any
4materials, parts, equipment, components, and consumable
5supplies used in the modification, replacement, repair, and
6maintenance of aircraft engines or power plants, whether such
7engines or power plants are installed or uninstalled upon any
8such aircraft. "Consumable supplies" include, but are not
9limited to, adhesive, tape, sandpaper, general purpose
10lubricants, cleaning solution, latex gloves, and protective
11films. This exemption applies only to the use of qualifying
12tangible personal property transferred incident to the
13modification, refurbishment, completion, replacement, repair,
14or maintenance of aircraft by persons who (i) hold an Air
15Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations. The changes made to this
23paragraph (27) by Public Act 98-534 are declarative of existing
24law.
25    (28) Tangible personal property purchased by a
26public-facilities corporation, as described in Section

 

 

HB3470- 33 -LRB101 07072 HLH 52109 b

111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt instruments
8issued by the public-facilities corporation in connection with
9the development of the municipal convention hall. This
10exemption includes existing public-facilities corporations as
11provided in Section 11-65-25 of the Illinois Municipal Code.
12This paragraph is exempt from the provisions of Section 3-75.
13    (29) Beginning January 1, 2017, menstrual pads, tampons,
14and menstrual cups.
15    (30) Tangible personal property transferred to 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 3-75.
19    (30) Beginning January 1, 2020, meals and food products for
20human consumption furnished or served to low-income elderly
21persons at or below cost by a nonprofit organization or
22governmental agency under a program funded by this State or the
23United States for such purposes. This paragraph is exempt from
24the provisions of Section 3-75.
25(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
26100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.

 

 

HB3470- 34 -LRB101 07072 HLH 52109 b

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

 

 

HB3470- 35 -LRB101 07072 HLH 52109 b

1orchestras and theatrical groups, arts and cultural service
2organizations, local arts councils, visual arts organizations,
3and media arts organizations. On and after July 1, 2001 (the
4effective date of Public Act 92-35) this amendatory Act of the
592nd General Assembly, however, an entity otherwise eligible
6for this exemption shall not make tax-free purchases unless it
7has an active identification number issued by the Department.
8    (4) Legal tender, currency, medallions, or gold or silver
9coinage issued by the State of Illinois, the government of the
10United States of America, or the government of any foreign
11country, and bullion.
12    (5) Until July 1, 2003 and beginning again on September 1,
132004 through August 30, 2014, graphic arts machinery and
14equipment, including repair and replacement parts, both new and
15used, and including that manufactured on special order or
16purchased for lease, certified by the purchaser to be used
17primarily for graphic arts production. Equipment includes
18chemicals or chemicals acting as catalysts but only if the
19chemicals or chemicals acting as catalysts effect a direct and
20immediate change upon a graphic arts product. Beginning on July
211, 2017, graphic arts machinery and equipment is included in
22the manufacturing and assembling machinery and equipment
23exemption under Section 2 of this Act.
24    (6) Personal property sold by a teacher-sponsored student
25organization affiliated with an elementary or secondary school
26located in Illinois.

 

 

HB3470- 36 -LRB101 07072 HLH 52109 b

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

 

 

HB3470- 37 -LRB101 07072 HLH 52109 b

1such equipment.
2    Farm machinery and equipment also includes computers,
3sensors, software, and related equipment used primarily in the
4computer-assisted operation of production agriculture
5facilities, equipment, and activities such as, but not limited
6to, the collection, monitoring, and correlation of animal and
7crop data for the purpose of formulating animal diets and
8agricultural chemicals. This item (7) is exempt from the
9provisions of Section 3-55.
10    (8) Until June 30, 2013, fuel and petroleum products sold
11to or used by an air common carrier, certified by the carrier
12to be used for consumption, shipment, or storage in the conduct
13of its business as an air common carrier, for a flight destined
14for or returning from a location or locations outside the
15United States without regard to previous or subsequent domestic
16stopovers.
17    Beginning July 1, 2013, fuel and petroleum products sold to
18or used by an air carrier, certified by the carrier to be used
19for consumption, shipment, or storage in the conduct of its
20business as an air common carrier, for a flight that (i) is
21engaged in foreign trade or is engaged in trade between the
22United States and any of its possessions and (ii) transports at
23least one individual or package for hire from the city of
24origination to the city of final destination on the same
25aircraft, without regard to a change in the flight number of
26that aircraft.

 

 

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

 

 

HB3470- 39 -LRB101 07072 HLH 52109 b

1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8    (13) Beginning January 1, 1992 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages, soft
11drinks and food that has been prepared for immediate
12consumption) and prescription and non-prescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (14) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (15) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

 

 

HB3470- 40 -LRB101 07072 HLH 52109 b

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

 

 

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

 

 

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

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-55.
3    (23) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and other
6items, and replacement parts for these machines. Beginning
7January 1, 2002 and through June 30, 2003, machines and parts
8for machines used in commercial, coin-operated amusement and
9vending business if a use or occupation tax is paid on the
10gross receipts derived from the use of the commercial,
11coin-operated amusement and vending machines. This paragraph
12is exempt from the provisions of Section 3-55.
13    (24) Beginning on August 2, 2001 (the effective date of
14Public Act 92-227) this amendatory Act of the 92nd General
15Assembly, computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients sold to a lessor
18who leases the equipment, under a lease of one year or longer
19executed or in effect at the time of the purchase, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of the
22Retailers' Occupation Tax Act. This paragraph is exempt from
23the provisions of Section 3-55.
24    (25) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227) this amendatory Act of the 92nd General
26Assembly, personal property sold to a lessor who leases the

 

 

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1property, under a lease of one year or longer executed or in
2effect at the time of the purchase, to a governmental body that
3has been issued an active tax exemption identification number
4by the Department under Section 1g of the Retailers' Occupation
5Tax Act. This paragraph is exempt from the provisions of
6Section 3-55.
7    (26) Beginning on January 1, 2002 and through June 30,
82016, tangible personal property purchased from an Illinois
9retailer by a taxpayer engaged in centralized purchasing
10activities in Illinois who will, upon receipt of the property
11in Illinois, temporarily store the property in Illinois (i) for
12the purpose of subsequently transporting it outside this State
13for use or consumption thereafter solely outside this State or
14(ii) for the purpose of being processed, fabricated, or
15manufactured into, attached to, or incorporated into other
16tangible personal property to be transported outside this State
17and thereafter used or consumed solely outside this State. The
18Director of Revenue shall, pursuant to rules adopted in
19accordance with the Illinois Administrative Procedure Act,
20issue a permit to any taxpayer in good standing with the
21Department who is eligible for the exemption under this
22paragraph (26). The permit issued under this paragraph (26)
23shall authorize the holder, to the extent and in the manner
24specified in the rules adopted under this Act, to purchase
25tangible personal property from a retailer exempt from the
26taxes imposed by this Act. Taxpayers shall maintain all

 

 

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1necessary books and records to substantiate the use and
2consumption of all such tangible personal property outside of
3the State of Illinois.
4    (27) Beginning January 1, 2008, tangible personal property
5used in the construction or maintenance of a community water
6supply, as defined under Section 3.145 of the Environmental
7Protection Act, that is operated by a not-for-profit
8corporation that holds a valid water supply permit issued under
9Title IV of the Environmental Protection Act. This paragraph is
10exempt from the provisions of Section 3-55.
11    (28) Tangible personal property sold to a
12public-facilities corporation, as described in Section
1311-65-10 of the Illinois Municipal Code, for purposes of
14constructing or furnishing a municipal convention hall, but
15only if the legal title to the municipal convention hall is
16transferred to the municipality without any further
17consideration by or on behalf of the municipality at the time
18of the completion of the municipal convention hall or upon the
19retirement or redemption of any bonds or other debt instruments
20issued by the public-facilities corporation in connection with
21the development of the municipal convention hall. This
22exemption includes existing public-facilities corporations as
23provided in Section 11-65-25 of the Illinois Municipal Code.
24This paragraph is exempt from the provisions of Section 3-55.
25    (29) Beginning January 1, 2010, materials, parts,
26equipment, components, and furnishings incorporated into or

 

 

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

 

 

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1    (30) Beginning January 1, 2017, menstrual pads, tampons,
2and menstrual cups.
3    (31) Tangible personal property transferred to a purchaser
4who is exempt from tax by operation of federal law. This
5paragraph is exempt from the provisions of Section 3-55.
6    (32) Beginning January 1, 2020, meals and food products for
7human consumption furnished or served to low-income elderly
8persons at or below cost by a nonprofit organization or
9governmental agency under a program funded by this State or the
10United States for such purposes. This paragraph is exempt from
11the provisions of Section 3-55.
12(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
13100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
141-4-19; revised 1-8-19.)
 
15    Section 20. The Retailers' Occupation Tax Act is amended by
16changing Section 2-5 as follows:
 
17    (35 ILCS 120/2-5)
18    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
19sale of the following tangible personal property are exempt
20from the tax imposed by this Act:
21        (1) Farm chemicals.
22        (2) Farm machinery and equipment, both new and used,
23    including that manufactured on special order, certified by
24    the purchaser to be used primarily for production

 

 

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

 

 

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1    sensors, software, and related equipment used primarily in
2    the computer-assisted operation of production agriculture
3    facilities, equipment, and activities such as, but not
4    limited to, the collection, monitoring, and correlation of
5    animal and crop data for the purpose of formulating animal
6    diets and agricultural chemicals. This item (2) is exempt
7    from the provisions of Section 2-70.
8        (3) Until July 1, 2003, distillation machinery and
9    equipment, sold as a unit or kit, assembled or installed by
10    the retailer, certified by the user to be used only for the
11    production of ethyl alcohol that will be used for
12    consumption as motor fuel or as a component of motor fuel
13    for the personal use of the user, and not subject to sale
14    or resale.
15        (4) Until July 1, 2003 and beginning again September 1,
16    2004 through August 30, 2014, graphic arts machinery and
17    equipment, including repair and replacement parts, both
18    new and used, and including that manufactured on special
19    order or purchased for lease, certified by the purchaser to
20    be used primarily for graphic arts production. Equipment
21    includes chemicals or chemicals acting as catalysts but
22    only if the chemicals or chemicals acting as catalysts
23    effect a direct and immediate change upon a graphic arts
24    product. Beginning on July 1, 2017, graphic arts machinery
25    and equipment is included in the manufacturing and
26    assembling machinery and equipment exemption under

 

 

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1    paragraph (14).
2        (5) A motor vehicle that is used for automobile
3    renting, as defined in the Automobile Renting Occupation
4    and Use Tax Act. This paragraph is exempt from the
5    provisions of Section 2-70.
6        (6) Personal property sold by a teacher-sponsored
7    student organization affiliated with an elementary or
8    secondary school located in Illinois.
9        (7) Until July 1, 2003, proceeds of that portion of the
10    selling price of a passenger car the sale of which is
11    subject to the Replacement Vehicle Tax.
12        (8) Personal property sold to an Illinois county fair
13    association for use in conducting, operating, or promoting
14    the county fair.
15        (9) Personal property sold to a not-for-profit arts or
16    cultural organization that establishes, by proof required
17    by the Department by rule, that it has received an
18    exemption under Section 501(c)(3) of the Internal Revenue
19    Code and that is organized and operated primarily for the
20    presentation or support of arts or cultural programming,
21    activities, or services. These organizations include, but
22    are not limited to, music and dramatic arts organizations
23    such as symphony orchestras and theatrical groups, arts and
24    cultural service organizations, local arts councils,
25    visual arts organizations, and media arts organizations.
26    On and after July 1, 2001 (the effective date of Public Act

 

 

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1    92-35), however, an entity otherwise eligible for this
2    exemption shall not make tax-free purchases unless it has
3    an active identification number issued by the Department.
4        (10) Personal property sold by a corporation, society,
5    association, foundation, institution, or organization,
6    other than a limited liability company, that is organized
7    and operated as a not-for-profit service enterprise for the
8    benefit of persons 65 years of age or older if the personal
9    property was not purchased by the enterprise for the
10    purpose of resale by the enterprise.
11        (11) Personal property sold to a governmental body, to
12    a corporation, society, association, foundation, or
13    institution organized and operated exclusively for
14    charitable, religious, or educational purposes, or to a
15    not-for-profit corporation, society, association,
16    foundation, institution, or organization that has no
17    compensated officers or employees and that is organized and
18    operated primarily for the recreation of persons 55 years
19    of age or older. A limited liability company may qualify
20    for the exemption under this paragraph only if the limited
21    liability company is organized and operated exclusively
22    for educational purposes. On and after July 1, 1987,
23    however, no entity otherwise eligible for this exemption
24    shall make tax-free purchases unless it has an active
25    identification number issued by the Department.
26        (12) (Blank).

 

 

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1        (12-5) On and after July 1, 2003 and through June 30,
2    2004, motor vehicles of the second division with a gross
3    vehicle weight in excess of 8,000 pounds that are subject
4    to the commercial distribution fee imposed under Section
5    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
6    2004 and through June 30, 2005, the use in this State of
7    motor vehicles of the second division: (i) with a gross
8    vehicle weight rating in excess of 8,000 pounds; (ii) that
9    are subject to the commercial distribution fee imposed
10    under Section 3-815.1 of the Illinois Vehicle Code; and
11    (iii) that are primarily used for commercial purposes.
12    Through June 30, 2005, this exemption applies to repair and
13    replacement parts added after the initial purchase of such
14    a motor vehicle if that motor vehicle is used in a manner
15    that would qualify for the rolling stock exemption
16    otherwise provided for in this Act. For purposes of this
17    paragraph, "used for commercial purposes" means the
18    transportation of persons or property in furtherance of any
19    commercial or industrial enterprise whether for-hire or
20    not.
21        (13) Proceeds from sales to owners, lessors, or
22    shippers of tangible personal property that is utilized by
23    interstate carriers for hire for use as rolling stock
24    moving in interstate commerce and equipment operated by a
25    telecommunications provider, licensed as a common carrier
26    by the Federal Communications Commission, which is

 

 

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1    permanently installed in or affixed to aircraft moving in
2    interstate commerce.
3        (14) Machinery and equipment that will be used by the
4    purchaser, or a lessee of the purchaser, primarily in the
5    process of manufacturing or assembling tangible personal
6    property for wholesale or retail sale or lease, whether the
7    sale or lease is made directly by the manufacturer or by
8    some other person, whether the materials used in the
9    process are owned by the manufacturer or some other person,
10    or whether the sale or lease is made apart from or as an
11    incident to the seller's engaging in the service occupation
12    of producing machines, tools, dies, jigs, patterns,
13    gauges, or other similar items of no commercial value on
14    special order for a particular purchaser. The exemption
15    provided by this paragraph (14) does not include machinery
16    and equipment used in (i) the generation of electricity for
17    wholesale or retail sale; (ii) the generation or treatment
18    of natural or artificial gas for wholesale or retail sale
19    that is delivered to customers through pipes, pipelines, or
20    mains; or (iii) the treatment of water for wholesale or
21    retail sale that is delivered to customers through pipes,
22    pipelines, or mains. The provisions of Public Act 98-583
23    are declaratory of existing law as to the meaning and scope
24    of this exemption. Beginning on July 1, 2017, the exemption
25    provided by this paragraph (14) includes, but is not
26    limited to, graphic arts machinery and equipment, as

 

 

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1    defined in paragraph (4) of this Section.
2        (15) Proceeds of mandatory service charges separately
3    stated on customers' bills for purchase and consumption of
4    food and beverages, to the extent that the proceeds of the
5    service charge are in fact turned over as tips or as a
6    substitute for tips to the employees who participate
7    directly in preparing, serving, hosting or cleaning up the
8    food or beverage function with respect to which the service
9    charge is imposed.
10        (16) Tangible personal property sold to a purchaser if
11    the purchaser is exempt from use tax by operation of
12    federal law. This paragraph is exempt from the provisions
13    of Section 2-70.
14        (17) Tangible personal property sold to a common
15    carrier by rail or motor that receives the physical
16    possession of the property in Illinois and that transports
17    the property, or shares with another common carrier in the
18    transportation of the property, out of Illinois on a
19    standard uniform bill of lading showing the seller of the
20    property as the shipper or consignor of the property to a
21    destination outside Illinois, for use outside Illinois.
22        (18) Legal tender, currency, medallions, or gold or
23    silver coinage issued by the State of Illinois, the
24    government of the United States of America, or the
25    government of any foreign country, and bullion.
26        (19) Until July 1, 2003, oil field exploration,

 

 

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

 

 

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1    effective date of Public Act 98-456).
2        (22) Until June 30, 2013, fuel and petroleum products
3    sold to or used by an air carrier, certified by the carrier
4    to be used for consumption, shipment, or storage in the
5    conduct of its business as an air common carrier, for a
6    flight destined for or returning from a location or
7    locations outside the United States without regard to
8    previous or subsequent domestic stopovers.
9        Beginning July 1, 2013, fuel and petroleum products
10    sold to or used by an air carrier, certified by the carrier
11    to be used for consumption, shipment, or storage in the
12    conduct of its business as an air common carrier, for a
13    flight that (i) is engaged in foreign trade or is engaged
14    in trade between the United States and any of its
15    possessions and (ii) transports at least one individual or
16    package for hire from the city of origination to the city
17    of final destination on the same aircraft, without regard
18    to a change in the flight number of that aircraft.
19        (23) A transaction in which the purchase order is
20    received by a florist who is located outside Illinois, but
21    who has a florist located in Illinois deliver the property
22    to the purchaser or the purchaser's donee in Illinois.
23        (24) Fuel consumed or used in the operation of ships,
24    barges, or vessels that are used primarily in or for the
25    transportation of property or the conveyance of persons for
26    hire on rivers bordering on this State if the fuel is

 

 

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1    delivered by the seller to the purchaser's barge, ship, or
2    vessel while it is afloat upon that bordering river.
3        (25) Except as provided in item (25-5) of this Section,
4    a motor vehicle sold in this State to a nonresident even
5    though the motor vehicle is delivered to the nonresident in
6    this State, if the motor vehicle is not to be titled in
7    this State, and if a drive-away permit is issued to the
8    motor vehicle as provided in Section 3-603 of the Illinois
9    Vehicle Code or if the nonresident purchaser has vehicle
10    registration plates to transfer to the motor vehicle upon
11    returning to his or her home state. The issuance of the
12    drive-away permit or having the out-of-state registration
13    plates to be transferred is prima facie evidence that the
14    motor vehicle will not be titled in this State.
15        (25-5) The exemption under item (25) does not apply if
16    the state in which the motor vehicle will be titled does
17    not allow a reciprocal exemption for a motor vehicle sold
18    and delivered in that state to an Illinois resident but
19    titled in Illinois. The tax collected under this Act on the
20    sale of a motor vehicle in this State to a resident of
21    another state that does not allow a reciprocal exemption
22    shall be imposed at a rate equal to the state's rate of tax
23    on taxable property in the state in which the purchaser is
24    a resident, except that the tax shall not exceed the tax
25    that would otherwise be imposed under this Act. At the time
26    of the sale, the purchaser shall execute a statement,

 

 

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1    signed under penalty of perjury, of his or her intent to
2    title the vehicle in the state in which the purchaser is a
3    resident within 30 days after the sale and of the fact of
4    the payment to the State of Illinois of tax in an amount
5    equivalent to the state's rate of tax on taxable property
6    in his or her state of residence and shall submit the
7    statement to the appropriate tax collection agency in his
8    or her state of residence. In addition, the retailer must
9    retain a signed copy of the statement in his or her
10    records. Nothing in this item shall be construed to require
11    the removal of the vehicle from this state following the
12    filing of an intent to title the vehicle in the purchaser's
13    state of residence if the purchaser titles the vehicle in
14    his or her state of residence within 30 days after the date
15    of sale. The tax collected under this Act in accordance
16    with this item (25-5) shall be proportionately distributed
17    as if the tax were collected at the 6.25% general rate
18    imposed under this Act.
19        (25-7) Beginning on July 1, 2007, no tax is imposed
20    under this Act on the sale of an aircraft, as defined in
21    Section 3 of the Illinois Aeronautics Act, if all of the
22    following conditions are met:
23            (1) the aircraft leaves this State within 15 days
24        after the later of either the issuance of the final
25        billing for the sale of the aircraft, or the authorized
26        approval for return to service, completion of the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    vending machines. This paragraph is exempt from the
2    provisions of Section 2-70.
3        (35-5) Beginning August 23, 2001 and through June 30,
4    2016, food for human consumption that is to be consumed off
5    the premises where it is sold (other than alcoholic
6    beverages, soft drinks, and food that has been prepared for
7    immediate consumption) and prescription and
8    nonprescription medicines, drugs, medical appliances, and
9    insulin, urine testing materials, syringes, and needles
10    used by diabetics, for human use, when purchased for use by
11    a person receiving medical assistance under Article V of
12    the Illinois Public Aid Code who resides in a licensed
13    long-term care facility, as defined in the Nursing Home
14    Care Act, or a licensed facility as defined in the ID/DD
15    Community Care Act, the MC/DD Act, or the Specialized
16    Mental Health Rehabilitation Act of 2013.
17        (36) Beginning August 2, 2001, computers and
18    communications equipment utilized for any hospital purpose
19    and equipment used in the diagnosis, analysis, or treatment
20    of hospital patients sold to a lessor who leases the
21    equipment, under a lease of one year or longer executed or
22    in effect at the time of the purchase, to a hospital that
23    has been issued an active tax exemption identification
24    number by the Department under Section 1g of this Act. This
25    paragraph is exempt from the provisions of Section 2-70.
26        (37) Beginning August 2, 2001, personal property sold

 

 

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1    to a lessor who leases the property, under a lease of one
2    year or longer executed or in effect at the time of the
3    purchase, to a governmental body that has been issued an
4    active tax exemption identification number by the
5    Department under Section 1g of this Act. This paragraph is
6    exempt from the provisions of Section 2-70.
7        (38) Beginning on January 1, 2002 and through June 30,
8    2016, tangible personal property purchased from an
9    Illinois retailer by a taxpayer engaged in centralized
10    purchasing activities in Illinois who will, upon receipt of
11    the property in Illinois, temporarily store the property in
12    Illinois (i) for the purpose of subsequently transporting
13    it outside this State for use or consumption thereafter
14    solely outside this State or (ii) for the purpose of being
15    processed, fabricated, or manufactured into, attached to,
16    or incorporated into other tangible personal property to be
17    transported outside this State and thereafter used or
18    consumed solely outside this State. The Director of Revenue
19    shall, pursuant to rules adopted in accordance with the
20    Illinois Administrative Procedure Act, issue a permit to
21    any taxpayer in good standing with the Department who is
22    eligible for the exemption under this paragraph (38). The
23    permit issued under this paragraph (38) shall authorize the
24    holder, to the extent and in the manner specified in the
25    rules adopted under this Act, to purchase tangible personal
26    property from a retailer exempt from the taxes imposed by

 

 

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1    this Act. Taxpayers shall maintain all necessary books and
2    records to substantiate the use and consumption of all such
3    tangible personal property outside of the State of
4    Illinois.
5        (39) Beginning January 1, 2008, tangible personal
6    property used in the construction or maintenance of a
7    community water supply, as defined under Section 3.145 of
8    the Environmental Protection Act, that is operated by a
9    not-for-profit corporation that holds a valid water supply
10    permit issued under Title IV of the Environmental
11    Protection Act. This paragraph is exempt from the
12    provisions of Section 2-70.
13        (40) Beginning January 1, 2010, materials, parts,
14    equipment, components, and furnishings incorporated into
15    or upon an aircraft as part of the modification,
16    refurbishment, completion, replacement, repair, or
17    maintenance of the aircraft. This exemption includes
18    consumable supplies used in the modification,
19    refurbishment, completion, replacement, repair, and
20    maintenance of aircraft, but excludes any materials,
21    parts, equipment, components, and consumable supplies used
22    in the modification, replacement, repair, and maintenance
23    of aircraft engines or power plants, whether such engines
24    or power plants are installed or uninstalled upon any such
25    aircraft. "Consumable supplies" include, but are not
26    limited to, adhesive, tape, sandpaper, general purpose

 

 

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1    lubricants, cleaning solution, latex gloves, and
2    protective films. This exemption applies only to the sale
3    of qualifying tangible personal property to persons who
4    modify, refurbish, complete, replace, or maintain an
5    aircraft and who (i) hold an Air Agency Certificate and are
6    empowered to operate an approved repair station by the
7    Federal Aviation Administration, (ii) have a Class IV
8    Rating, and (iii) conduct operations in accordance with
9    Part 145 of the Federal Aviation Regulations. The exemption
10    does not include aircraft operated by a commercial air
11    carrier providing scheduled passenger air service pursuant
12    to authority issued under Part 121 or Part 129 of the
13    Federal Aviation Regulations. The changes made to this
14    paragraph (40) by Public Act 98-534 are declarative of
15    existing law.
16        (41) Tangible personal property sold to a
17    public-facilities corporation, as described in Section
18    11-65-10 of the Illinois Municipal Code, for purposes of
19    constructing or furnishing a municipal convention hall,
20    but only if the legal title to the municipal convention
21    hall is transferred to the municipality without any further
22    consideration by or on behalf of the municipality at the
23    time of the completion of the municipal convention hall or
24    upon the retirement or redemption of any bonds or other
25    debt instruments issued by the public-facilities
26    corporation in connection with the development of the

 

 

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1    municipal convention hall. This exemption includes
2    existing public-facilities corporations as provided in
3    Section 11-65-25 of the Illinois Municipal Code. This
4    paragraph is exempt from the provisions of Section 2-70.
5        (42) Beginning January 1, 2017, menstrual pads,
6    tampons, and menstrual cups.
7        (43) Merchandise that is subject to the Rental Purchase
8    Agreement Occupation and Use Tax. The purchaser must
9    certify that the item is purchased to be rented subject to
10    a rental purchase agreement, as defined in the Rental
11    Purchase Agreement Act, and provide proof of registration
12    under the Rental Purchase Agreement Occupation and Use Tax
13    Act. This paragraph is exempt from the provisions of
14    Section 2-70.
15        (44) Beginning January 1, 2020, meals and food products
16    for human consumption furnished or served to low-income
17    elderly persons at or below cost by a nonprofit
18    organization or governmental agency under a program funded
19    by this State or the United States for such purposes. This
20    paragraph is exempt from the provisions of Section 2-70.
21(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
22100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
231-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;
24100-1171, eff. 1-4-19; revised 1-8-19.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.