101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3523

 

Introduced , by Rep. Michael D. Unes

 

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

    Amends the Use Tax Act and the Retailers' Occupation Tax Act. Creates an exemption for a motor vehicle purchased by a veteran with a disability that is designed to accommodate a wheelchair or any other special need of the veteran.


LRB101 07883 HLH 55926 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3523LRB101 07883 HLH 55926 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

 

 

HB3523- 2 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 3 -LRB101 07883 HLH 55926 b

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,

 

 

HB3523- 4 -LRB101 07883 HLH 55926 b

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.

 

 

HB3523- 5 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 6 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 7 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 8 -LRB101 07883 HLH 55926 b

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,

 

 

HB3523- 9 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 10 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 11 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 12 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 13 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 14 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 15 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 16 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 17 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 18 -LRB101 07883 HLH 55926 b

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) A motor vehicle purchased by a veteran with a
20disability that is designed to accommodate a wheelchair or any
21other special need of a veteran with a disability. As used in
22this subsection "veteran with a disability" means an Illinois
23resident who has served as a member of the United States Armed
24Forces on active duty or State active duty, a member of the
25Illinois National Guard, or a member of the United States
26Reserve Forces, who has received an honorable discharge, and

 

 

HB3523- 19 -LRB101 07883 HLH 55926 b

1who has a service-connected disability of 30% or more, as
2certified by the United States Department of Veterans Affairs.
3This paragraph is exempt from the provisions of Section 3-90.
4(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
5100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.
66-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised
71-8-19.)
 
8    Section 10. The Retailers' Occupation Tax Act is amended by
9changing Section 2-5 as follows:
 
10    (35 ILCS 120/2-5)
11    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
12sale of the following tangible personal property are exempt
13from the tax imposed by this Act:
14        (1) Farm chemicals.
15        (2) Farm machinery and equipment, both new and used,
16    including that manufactured on special order, certified by
17    the purchaser to be used primarily for production
18    agriculture or State or federal agricultural programs,
19    including individual replacement parts for the machinery
20    and equipment, including machinery and equipment purchased
21    for lease, and including implements of husbandry defined in
22    Section 1-130 of the Illinois Vehicle Code, farm machinery
23    and agricultural chemical and fertilizer spreaders, and
24    nurse wagons required to be registered under Section 3-809

 

 

HB3523- 20 -LRB101 07883 HLH 55926 b

1    of the Illinois Vehicle Code, but excluding other motor
2    vehicles required to be registered under the Illinois
3    Vehicle Code. Horticultural polyhouses or hoop houses used
4    for propagating, growing, or overwintering plants shall be
5    considered farm machinery and equipment under this item
6    (2). Agricultural chemical tender tanks and dry boxes shall
7    include units sold separately from a motor vehicle required
8    to be licensed and units sold mounted on a motor vehicle
9    required to be licensed, if the selling price of the tender
10    is separately stated.
11        Farm machinery and equipment shall include precision
12    farming equipment that is installed or purchased to be
13    installed on farm machinery and equipment including, but
14    not limited to, tractors, harvesters, sprayers, planters,
15    seeders, or spreaders. Precision farming equipment
16    includes, but is not limited to, soil testing sensors,
17    computers, monitors, software, global positioning and
18    mapping systems, and other such equipment.
19        Farm machinery and equipment also includes computers,
20    sensors, software, and related equipment used primarily in
21    the computer-assisted operation of production agriculture
22    facilities, equipment, and activities such as, but not
23    limited to, the collection, monitoring, and correlation of
24    animal and crop data for the purpose of formulating animal
25    diets and agricultural chemicals. This item (2) is exempt
26    from the provisions of Section 2-70.

 

 

HB3523- 21 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 22 -LRB101 07883 HLH 55926 b

1    secondary school located in Illinois.
2        (7) Until July 1, 2003, proceeds of that portion of the
3    selling price of a passenger car the sale of which is
4    subject to the Replacement Vehicle Tax.
5        (8) Personal property sold to an Illinois county fair
6    association for use in conducting, operating, or promoting
7    the county fair.
8        (9) Personal property sold to a not-for-profit arts or
9    cultural organization that establishes, by proof required
10    by the Department by rule, that it has received an
11    exemption under Section 501(c)(3) of the Internal Revenue
12    Code and that is organized and operated primarily for the
13    presentation or support of arts or cultural programming,
14    activities, or services. These organizations include, but
15    are not limited to, music and dramatic arts organizations
16    such as symphony orchestras and theatrical groups, arts and
17    cultural service organizations, local arts councils,
18    visual arts organizations, and media arts organizations.
19    On and after July 1, 2001 (the effective date of Public Act
20    92-35), however, an entity otherwise eligible for this
21    exemption shall not make tax-free purchases unless it has
22    an active identification number issued by the Department.
23        (10) Personal property sold by a corporation, society,
24    association, foundation, institution, or organization,
25    other than a limited liability company, that is organized
26    and operated as a not-for-profit service enterprise for the

 

 

HB3523- 23 -LRB101 07883 HLH 55926 b

1    benefit of persons 65 years of age or older if the personal
2    property was not purchased by the enterprise for the
3    purpose of resale by the enterprise.
4        (11) Personal property sold to a governmental body, to
5    a corporation, society, association, foundation, or
6    institution organized and operated exclusively for
7    charitable, religious, or educational purposes, or to a
8    not-for-profit corporation, society, association,
9    foundation, institution, or organization that has no
10    compensated officers or employees and that is organized and
11    operated primarily for the recreation of persons 55 years
12    of age or older. A limited liability company may qualify
13    for the exemption under this paragraph only if the limited
14    liability company is organized and operated exclusively
15    for educational purposes. On and after July 1, 1987,
16    however, no entity otherwise eligible for this exemption
17    shall make tax-free purchases unless it has an active
18    identification number issued by the Department.
19        (12) (Blank).
20        (12-5) On and after July 1, 2003 and through June 30,
21    2004, motor vehicles of the second division with a gross
22    vehicle weight in excess of 8,000 pounds that are subject
23    to the commercial distribution fee imposed under Section
24    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
25    2004 and through June 30, 2005, the use in this State of
26    motor vehicles of the second division: (i) with a gross

 

 

HB3523- 24 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 25 -LRB101 07883 HLH 55926 b

1    some other person, whether the materials used in the
2    process are owned by the manufacturer or some other person,
3    or whether the sale or lease is made apart from or as an
4    incident to the seller's engaging in the service occupation
5    of producing machines, tools, dies, jigs, patterns,
6    gauges, or other similar items of no commercial value on
7    special order for a particular purchaser. The exemption
8    provided by this paragraph (14) does not include machinery
9    and equipment used in (i) the generation of electricity for
10    wholesale or retail sale; (ii) the generation or treatment
11    of natural or artificial gas for wholesale or retail sale
12    that is delivered to customers through pipes, pipelines, or
13    mains; or (iii) the treatment of water for wholesale or
14    retail sale that is delivered to customers through pipes,
15    pipelines, or mains. The provisions of Public Act 98-583
16    are declaratory of existing law as to the meaning and scope
17    of this exemption. Beginning on July 1, 2017, the exemption
18    provided by this paragraph (14) includes, but is not
19    limited to, graphic arts machinery and equipment, as
20    defined in paragraph (4) of this Section.
21        (15) Proceeds of mandatory service charges separately
22    stated on customers' bills for purchase and consumption of
23    food and beverages, to the extent that the proceeds of the
24    service charge are in fact turned over as tips or as a
25    substitute for tips to the employees who participate
26    directly in preparing, serving, hosting or cleaning up the

 

 

HB3523- 26 -LRB101 07883 HLH 55926 b

1    food or beverage function with respect to which the service
2    charge is imposed.
3        (16) Tangible personal property sold to a purchaser if
4    the purchaser is exempt from use tax by operation of
5    federal law. This paragraph is exempt from the provisions
6    of Section 2-70.
7        (17) Tangible personal property sold to a common
8    carrier by rail or motor that receives the physical
9    possession of the property in Illinois and that transports
10    the property, or shares with another common carrier in the
11    transportation of the property, out of Illinois on a
12    standard uniform bill of lading showing the seller of the
13    property as the shipper or consignor of the property to a
14    destination outside Illinois, for use outside Illinois.
15        (18) Legal tender, currency, medallions, or gold or
16    silver coinage issued by the State of Illinois, the
17    government of the United States of America, or the
18    government of any foreign country, and bullion.
19        (19) Until July 1, 2003, oil field exploration,
20    drilling, and production equipment, including (i) rigs and
21    parts of rigs, rotary rigs, cable tool rigs, and workover
22    rigs, (ii) pipe and tubular goods, including casing and
23    drill strings, (iii) pumps and pump-jack units, (iv)
24    storage tanks and flow lines, (v) any individual
25    replacement part for oil field exploration, drilling, and
26    production equipment, and (vi) machinery and equipment

 

 

HB3523- 27 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 28 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 29 -LRB101 07883 HLH 55926 b

1    motor vehicle as provided in Section 3-603 of the Illinois
2    Vehicle Code or if the nonresident purchaser has vehicle
3    registration plates to transfer to the motor vehicle upon
4    returning to his or her home state. The issuance of the
5    drive-away permit or having the out-of-state registration
6    plates to be transferred is prima facie evidence that the
7    motor vehicle will not be titled in this State.
8        (25-5) The exemption under item (25) does not apply if
9    the state in which the motor vehicle will be titled does
10    not allow a reciprocal exemption for a motor vehicle sold
11    and delivered in that state to an Illinois resident but
12    titled in Illinois. The tax collected under this Act on the
13    sale of a motor vehicle in this State to a resident of
14    another state that does not allow a reciprocal exemption
15    shall be imposed at a rate equal to the state's rate of tax
16    on taxable property in the state in which the purchaser is
17    a resident, except that the tax shall not exceed the tax
18    that would otherwise be imposed under this Act. At the time
19    of the sale, the purchaser shall execute a statement,
20    signed under penalty of perjury, of his or her intent to
21    title the vehicle in the state in which the purchaser is a
22    resident within 30 days after the sale and of the fact of
23    the payment to the State of Illinois of tax in an amount
24    equivalent to the state's rate of tax on taxable property
25    in his or her state of residence and shall submit the
26    statement to the appropriate tax collection agency in his

 

 

HB3523- 30 -LRB101 07883 HLH 55926 b

1    or her state of residence. In addition, the retailer must
2    retain a signed copy of the statement in his or her
3    records. Nothing in this item shall be construed to require
4    the removal of the vehicle from this state following the
5    filing of an intent to title the vehicle in the purchaser's
6    state of residence if the purchaser titles the vehicle in
7    his or her state of residence within 30 days after the date
8    of sale. The tax collected under this Act in accordance
9    with this item (25-5) shall be proportionately distributed
10    as if the tax were collected at the 6.25% general rate
11    imposed under this Act.
12        (25-7) Beginning on July 1, 2007, no tax is imposed
13    under this Act on the sale of an aircraft, as defined in
14    Section 3 of the Illinois Aeronautics Act, if all of the
15    following conditions are met:
16            (1) the aircraft leaves this State within 15 days
17        after the later of either the issuance of the final
18        billing for the sale of the aircraft, or the authorized
19        approval for return to service, completion of the
20        maintenance record entry, and completion of the test
21        flight and ground test for inspection, as required by
22        14 C.F.R. 91.407;
23            (2) the aircraft is not based or registered in this
24        State after the sale of the aircraft; and
25            (3) the seller retains in his or her books and
26        records and provides to the Department a signed and

 

 

HB3523- 31 -LRB101 07883 HLH 55926 b

1        dated certification from the purchaser, on a form
2        prescribed by the Department, certifying that the
3        requirements of this item (25-7) are met. The
4        certificate must also include the name and address of
5        the purchaser, the address of the location where the
6        aircraft is to be titled or registered, the address of
7        the primary physical location of the aircraft, and
8        other information that the Department may reasonably
9        require.
10        For purposes of this item (25-7):
11        "Based in this State" means hangared, stored, or
12    otherwise used, excluding post-sale customizations as
13    defined in this Section, for 10 or more days in each
14    12-month period immediately following the date of the sale
15    of the aircraft.
16        "Registered in this State" means an aircraft
17    registered with the Department of Transportation,
18    Aeronautics Division, or titled or registered with the
19    Federal Aviation Administration to an address located in
20    this State.
21        This paragraph (25-7) is exempt from the provisions of
22    Section 2-70.
23        (26) Semen used for artificial insemination of
24    livestock for direct agricultural production.
25        (27) Horses, or interests in horses, registered with
26    and meeting the requirements of any of the Arabian Horse

 

 

HB3523- 32 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 33 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 34 -LRB101 07883 HLH 55926 b

1    the provisions of Section 2-70.
2        (33) A motor vehicle, as that term is defined in
3    Section 1-146 of the Illinois Vehicle Code, that is donated
4    to a corporation, limited liability company, society,
5    association, foundation, or institution that is determined
6    by the Department to be organized and operated exclusively
7    for educational purposes. For purposes of this exemption,
8    "a corporation, limited liability company, society,
9    association, foundation, or institution organized and
10    operated exclusively for educational purposes" means all
11    tax-supported public schools, private schools that offer
12    systematic instruction in useful branches of learning by
13    methods common to public schools and that compare favorably
14    in their scope and intensity with the course of study
15    presented in tax-supported schools, and vocational or
16    technical schools or institutes organized and operated
17    exclusively to provide a course of study of not less than 6
18    weeks duration and designed to prepare individuals to
19    follow a trade or to pursue a manual, technical,
20    mechanical, industrial, business, or commercial
21    occupation.
22        (34) Beginning January 1, 2000, personal property,
23    including food, purchased through fundraising events for
24    the benefit of a public or private elementary or secondary
25    school, a group of those schools, or one or more school
26    districts if the events are sponsored by an entity

 

 

HB3523- 35 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 36 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 37 -LRB101 07883 HLH 55926 b

1    2016, tangible personal property purchased from an
2    Illinois retailer by a taxpayer engaged in centralized
3    purchasing activities in Illinois who will, upon receipt of
4    the property in Illinois, temporarily store the property in
5    Illinois (i) for the purpose of subsequently transporting
6    it outside this State for use or consumption thereafter
7    solely outside this State or (ii) for the purpose of being
8    processed, fabricated, or manufactured into, attached to,
9    or incorporated into other tangible personal property to be
10    transported outside this State and thereafter used or
11    consumed solely outside this State. The Director of Revenue
12    shall, pursuant to rules adopted in accordance with the
13    Illinois Administrative Procedure Act, issue a permit to
14    any taxpayer in good standing with the Department who is
15    eligible for the exemption under this paragraph (38). The
16    permit issued under this paragraph (38) shall authorize the
17    holder, to the extent and in the manner specified in the
18    rules adopted under this Act, to purchase tangible personal
19    property from a retailer exempt from the taxes imposed by
20    this Act. Taxpayers shall maintain all necessary books and
21    records to substantiate the use and consumption of all such
22    tangible personal property outside of the State of
23    Illinois.
24        (39) Beginning January 1, 2008, tangible personal
25    property used in the construction or maintenance of a
26    community water supply, as defined under Section 3.145 of

 

 

HB3523- 38 -LRB101 07883 HLH 55926 b

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

 

 

HB3523- 39 -LRB101 07883 HLH 55926 b

1    Rating, and (iii) conduct operations in accordance with
2    Part 145 of the Federal Aviation Regulations. The exemption
3    does not include aircraft operated by a commercial air
4    carrier providing scheduled passenger air service pursuant
5    to authority issued under Part 121 or Part 129 of the
6    Federal Aviation Regulations. The changes made to this
7    paragraph (40) by Public Act 98-534 are declarative of
8    existing law.
9        (41) Tangible personal property sold to a
10    public-facilities corporation, as described in Section
11    11-65-10 of the Illinois Municipal Code, for purposes of
12    constructing or furnishing a municipal convention hall,
13    but only if the legal title to the municipal convention
14    hall is transferred to the municipality without any further
15    consideration by or on behalf of the municipality at the
16    time of the completion of the municipal convention hall or
17    upon the retirement or redemption of any bonds or other
18    debt instruments issued by the public-facilities
19    corporation in connection with the development of the
20    municipal convention hall. This exemption includes
21    existing public-facilities corporations as provided in
22    Section 11-65-25 of the Illinois Municipal Code. This
23    paragraph is exempt from the provisions of Section 2-70.
24        (42) Beginning January 1, 2017, menstrual pads,
25    tampons, and menstrual cups.
26        (43) Merchandise that is subject to the Rental Purchase

 

 

HB3523- 40 -LRB101 07883 HLH 55926 b

1    Agreement Occupation and Use Tax. The purchaser must
2    certify that the item is purchased to be rented subject to
3    a rental purchase agreement, as defined in the Rental
4    Purchase Agreement Act, and provide proof of registration
5    under the Rental Purchase Agreement Occupation and Use Tax
6    Act. This paragraph is exempt from the provisions of
7    Section 2-70.
8        (44) A motor vehicle purchased by a veteran with a
9    disability that is designed to accommodate a wheelchair or
10    any other special need of a veteran with a disability. As
11    used in this subsection "veteran with a disability" means
12    an Illinois resident who has served as a member of the
13    United States Armed Forces on active duty or State active
14    duty, a member of the Illinois National Guard, or a member
15    of the United States Reserve Forces, who has received an
16    honorable discharge, and who has a service-connected
17    disability of 30% or more, as certified by the United
18    States Department of Veterans Affairs. This paragraph is
19    exempt from the provisions of Section 2-70.
20(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
21100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
221-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;
23100-1171, eff. 1-4-19; revised 1-8-19.)