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HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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| AN ACT in relation to vehicles.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
|
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| Section 5. The Illinois Income Tax Act is amended by |
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| changing
Section 215 as follows:
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| (35 ILCS 5/215)
|
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| Sec. 215. Transportation Employee Credit.
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| (a) For each taxable year beginning on or after January 1, |
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| 2004 and on or before the effective date of this amendatory Act |
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| of the 93rd General Assembly , a qualified
employer shall be |
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| allowed a credit against the tax imposed by subsections (a)
and |
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| (b) of Section 201 of this Act in the amount of $50 for each |
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| eligible
employee
employed by the taxpayer as of the last day |
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| of the taxable year.
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| (a-5) A qualified employer who receives a refund of the |
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| commercial distribution fee paid under Section 3-815.1 of the |
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| Illinois Vehicle Code is not eligible for the tax credit under |
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| this Section. |
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| (b) For purposes of this Section, "qualified employer" |
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| means:
|
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| (1) any employer who pays a commercial distribution fee |
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| under Section
3-815.1 of the Illinois Vehicle Code during |
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| the taxable year; or
|
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| (2) any employer who, as of the end of the taxable |
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| year, has one or more
employees whose compensation is |
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| subject to tax only by the employee's state of
residence |
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| pursuant to 49 U.S.C 14503(a)(1).
|
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| (c) For purposes of this Section, "employee" includes an |
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| individual who is
treated as an employee of the taxpayer under |
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| Section 401(c) of the Internal
Revenue Code and whose actual |
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| assigned duties are such that, if the individual
were a |
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| common-law employee performing such duties in 2 or more states, |
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HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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|
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| the
individual's compensation would be subject to tax only by |
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| the individual's
state of residence pursuant to 49 U.S.C. |
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| 14503(a)(1).
|
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| (d) An employee is an "eligible employee" only if all of |
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| the following
criteria are met:
|
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| (1) The employee is an operator of a motor vehicle;
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| (2) The employee's compensation, pursuant to 49 U.S.C. |
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| 14503(a)(1), is
subject to tax only by the employee's state |
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| of residence, or would be subject
to tax only by the |
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| employee's state of residence if the employee's
actual |
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| duties were performed in 2 or more states;
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| (3) As of the end of the taxable year for which the |
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| credit is claimed, the
employee is a resident of this State |
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| for purposes of this Act and 49 U.S.C.
14503(a)(1); and
|
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| (4) The employee is a full-time employee working 30 or |
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| more hours per week
for 180 consecutive days; provided that |
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| such 180-day period may be completed
after the end of the |
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| taxable year for which the credit under this Section is
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| claimed.
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| (e) For partners, shareholders of subchapter S |
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| corporations, and owners of
limited liability companies, if the |
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| limited liability company is treated as a
partnership for |
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| purposes of federal and State income taxation, there shall be
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| allowed a credit under this Section to be determined in |
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| accordance with the
determination of income and distributive |
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| share of income under Sections 702 and
704 and subchapter S of |
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| the Internal Revenue Code.
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| (f) Any credit allowed under this Section which is unused |
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| in the year the
credit is earned may be carried forward to each |
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| of the 5 taxable years
following the year for which the credit |
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| is first computed until it is used.
This credit shall be |
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| applied first to the earliest year for which there is a
|
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| liability. If there is a credit under this Section from more |
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| than one tax year
that is available to offset a liability, the |
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| earliest credit arising under this
Section shall be applied |
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| first.
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HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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| (g) (Blank)
This Section is exempt from the provisions of |
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| Section 250
of this Act .
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| (h) The Department of Revenue shall promulgate such rules |
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| and regulations as
may be deemed necessary to carry out the |
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| purposes of this Section.
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| (Source: P.A. 93-23, eff. 6-20-03.)
|
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| Section 10. The Use Tax Act is amended by changing |
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| Sections 3-5 and 3-61 as
follows:
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| (35 ILCS 105/3-5)
(from Ch. 120, par. 439.3-5)
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| Sec. 3-5. Exemptions. Use of the following tangible |
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| personal property
is exempt from the tax imposed by this Act:
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| (1) Personal property purchased from a corporation, |
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| society, association,
foundation, institution, or |
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| organization, other than a limited liability
company, that is |
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| organized and operated as a not-for-profit service enterprise
|
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| for the benefit of persons 65 years of age or older if the |
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| personal property
was not purchased by the enterprise for the |
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| purpose of resale by the
enterprise.
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| (2) Personal property purchased by a not-for-profit |
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| Illinois county
fair association for use in conducting, |
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| operating, or promoting the
county fair.
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| (3) Personal property purchased by a not-for-profit
arts or |
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| cultural organization that establishes, by proof required by |
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| the
Department by
rule, that it has received an exemption under |
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| Section 501(c)(3) of the Internal
Revenue Code and that is |
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| organized and operated primarily for the
presentation
or |
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| support of arts or cultural programming, activities, or |
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| services. These
organizations include, but are not limited to, |
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| music and dramatic arts
organizations such as symphony |
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| orchestras and theatrical groups, arts and
cultural service |
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| organizations, local arts councils, visual arts organizations,
|
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| and media arts organizations.
On and after the effective date |
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| of this amendatory Act of the 92nd General
Assembly, however, |
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| an entity otherwise eligible for this exemption shall not
make |
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HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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| tax-free purchases unless it has an active identification |
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| number issued by
the Department.
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| (4) Personal property purchased by a governmental body, by |
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| a
corporation, society, association, foundation, or |
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| institution organized and
operated exclusively for charitable, |
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| religious, or educational purposes, or
by a not-for-profit |
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| corporation, society, association, foundation,
institution, or |
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| organization that has no compensated officers or employees
and |
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| that is organized and operated primarily for the recreation of |
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| persons
55 years of age or older. A limited liability company |
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| may qualify for the
exemption under this paragraph only if the |
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| limited liability company is
organized and operated |
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| exclusively for educational purposes. On and after July
1, |
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| 1987, however, no entity otherwise eligible for this exemption |
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| shall make
tax-free purchases unless it has an active exemption |
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| identification number
issued by the Department.
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| (5) Until July 1, 2003, a passenger car that is a |
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| replacement vehicle to
the extent that the
purchase price of |
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| the car is subject to the Replacement Vehicle Tax.
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| (6) Until July 1, 2003, graphic arts machinery and |
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| equipment, including
repair and replacement
parts, both new and |
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| used, and including that manufactured on special order,
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| certified by the purchaser to be used primarily for graphic |
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| arts production,
and including machinery and equipment |
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| purchased for lease.
Equipment includes chemicals or chemicals |
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| acting as catalysts but only if
the
chemicals or chemicals |
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| acting as catalysts effect a direct and immediate change
upon a |
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| graphic arts product.
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| (7) Farm chemicals.
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| (8) Legal tender, currency, medallions, or gold or silver |
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| coinage issued by
the State of Illinois, the government of the |
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| United States of America, or the
government of any foreign |
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| country, and bullion.
|
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| (9) Personal property purchased from a teacher-sponsored |
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| student
organization affiliated with an elementary or |
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| secondary school located in
Illinois.
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HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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| (10) A motor vehicle of the first division, a motor vehicle |
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| of the
second division that is a self-contained motor vehicle |
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| designed or
permanently converted to provide living quarters |
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| for recreational, camping,
or travel use, with direct walk |
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| through to the living quarters from the
driver's seat, or a |
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| motor vehicle of the second division that is of the
van |
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| configuration designed for the transportation of not less than |
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| 7 nor
more than 16 passengers, as defined in Section 1-146 of |
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| the Illinois
Vehicle Code, that is used for automobile renting, |
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| as defined in the
Automobile Renting Occupation and Use Tax |
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| Act.
|
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| (11) Farm machinery and equipment, both new and used,
|
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| including that manufactured on special order, certified by the |
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| purchaser
to be used primarily for production agriculture or |
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| State or federal
agricultural programs, including individual |
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| replacement parts for
the machinery and equipment, including |
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| machinery and equipment
purchased
for lease,
and including |
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| implements of husbandry defined in Section 1-130 of
the |
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| Illinois Vehicle Code, farm machinery and agricultural |
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| chemical and
fertilizer spreaders, and nurse wagons required to |
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| be registered
under Section 3-809 of the Illinois Vehicle Code,
|
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| but excluding other motor
vehicles required to be
registered |
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| under the Illinois Vehicle Code.
Horticultural polyhouses or |
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| hoop houses used for propagating, growing, or
overwintering |
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| plants shall be considered farm machinery and equipment under
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| this item (11).
Agricultural chemical tender tanks and dry |
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| boxes shall include units sold
separately from a motor vehicle |
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| required to be licensed and units sold mounted
on a motor |
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| vehicle required to be licensed if the selling price of the |
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| tender
is separately stated.
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| Farm machinery and equipment shall include precision |
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| farming equipment
that is
installed or purchased to be |
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| installed on farm machinery and equipment
including, but not |
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| limited to, tractors, harvesters, sprayers, planters,
seeders, |
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| or spreaders.
Precision farming equipment includes, but is not |
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| limited to, soil testing
sensors, computers, monitors, |
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HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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| software, global positioning
and mapping systems, and other |
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| such equipment.
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| Farm machinery and equipment also includes computers, |
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| sensors, software, and
related equipment used primarily in the
|
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| computer-assisted operation of production agriculture |
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| facilities, equipment,
and
activities such as, but not limited |
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| to,
the collection, monitoring, and correlation of
animal and |
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| crop data for the purpose of
formulating animal diets and |
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| agricultural chemicals. This item (11) is exempt
from the |
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| provisions of
Section 3-90.
|
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| (12) Fuel and petroleum products sold to or used by an air |
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| common
carrier, certified by the carrier to be used for |
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| consumption, shipment, or
storage in the conduct of its |
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| business as an air common carrier, for a
flight destined for or |
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| returning from a location or locations
outside the United |
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| States without regard to previous or subsequent domestic
|
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| stopovers.
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| (13) Proceeds of mandatory service charges separately
|
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| stated on customers' bills for the purchase and consumption of |
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| food and
beverages purchased at retail from a retailer, to the |
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| extent that the proceeds
of the service charge are in fact |
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| turned over as tips or as a substitute
for tips to the |
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| employees who participate directly in preparing, serving,
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| hosting or cleaning up the food or beverage function with |
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| respect to which
the service charge is imposed.
|
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| (14) Until July 1, 2003, oil field exploration, drilling, |
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| and production
equipment,
including (i) rigs and parts of rigs, |
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| rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and |
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| tubular goods,
including casing and drill strings, (iii) pumps |
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| and pump-jack units, (iv)
storage tanks and flow lines, (v) any |
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| individual replacement part for oil
field exploration, |
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| drilling, and production equipment, and (vi) machinery and
|
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| equipment purchased
for lease; but excluding motor vehicles |
34 |
| required to be registered under the
Illinois Vehicle Code.
|
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| (15) Photoprocessing machinery and equipment, including |
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| repair and
replacement parts, both new and used, including that
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LRB093 04932 LCB 04991 b |
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| manufactured on special order, certified by the purchaser to be |
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| used
primarily for photoprocessing, and including
|
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| photoprocessing machinery and equipment purchased for lease.
|
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| (16) Until July 1, 2003, coal exploration, mining, |
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| offhighway hauling,
processing, maintenance, and reclamation |
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| equipment,
including replacement parts and equipment, and
|
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| including equipment purchased for lease, but excluding motor
|
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| vehicles required to be registered under the Illinois Vehicle |
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| Code.
|
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| (17) Until July 1, 2003, distillation machinery and |
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| equipment, sold as a
unit or kit,
assembled or installed by the |
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| retailer, certified by the user to be used
only for the |
13 |
| production of ethyl alcohol that will be used for consumption
|
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| as motor fuel or as a component of motor fuel for the personal |
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| use of the
user, and not subject to sale or resale.
|
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| (18) Manufacturing and assembling machinery and equipment |
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| used
primarily in the process of manufacturing or assembling |
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| tangible
personal property for wholesale or retail sale or |
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| lease, whether that sale
or lease is made directly by the |
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| manufacturer or by some other person,
whether the materials |
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| used in the process are
owned by the manufacturer or some other |
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| person, or whether that sale or
lease is made apart from or as |
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| an incident to the seller's engaging in
the service occupation |
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| of producing machines, tools, dies, jigs,
patterns, gauges, or |
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| other similar items of no commercial value on
special order for |
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| a particular purchaser.
|
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| (19) Personal property delivered to a purchaser or |
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| purchaser's donee
inside Illinois when the purchase order for |
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| that personal property was
received by a florist located |
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| outside Illinois who has a florist located
inside Illinois |
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| deliver the personal property.
|
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| (20) Semen used for artificial insemination of livestock |
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| for direct
agricultural production.
|
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| (21) Horses, or interests in horses, registered with and |
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| meeting the
requirements of any of the
Arabian Horse Club |
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| Registry of America, Appaloosa Horse Club, American Quarter
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LRB093 04932 LCB 04991 b |
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| Horse Association, United States
Trotting Association, or |
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| Jockey Club, as appropriate, used for
purposes of breeding or |
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| racing for prizes.
|
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| (22) Computers and communications equipment utilized for |
5 |
| any
hospital
purpose
and equipment used in the diagnosis,
|
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| analysis, or treatment of hospital patients purchased by a |
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| lessor who leases
the
equipment, under a lease of one year or |
8 |
| longer executed or in effect at the
time the lessor would |
9 |
| otherwise be subject to the tax imposed by this Act, to a
|
10 |
| hospital
that has been issued an active tax exemption |
11 |
| identification number by
the
Department under Section 1g of the |
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| Retailers' Occupation Tax Act. If the
equipment is leased in a |
13 |
| manner that does not qualify for
this exemption or is used in |
14 |
| any other non-exempt manner, the lessor
shall be liable for the
|
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| tax imposed under this Act or the Service Use Tax Act, as the |
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| case may
be, based on the fair market value of the property at |
17 |
| the time the
non-qualifying use occurs. No lessor shall collect |
18 |
| or attempt to collect an
amount (however
designated) that |
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| purports to reimburse that lessor for the tax imposed by this
|
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| Act or the Service Use Tax Act, as the case may be, if the tax |
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| has not been
paid by the lessor. If a lessor improperly |
22 |
| collects any such amount from the
lessee, the lessee shall have |
23 |
| a legal right to claim a refund of that amount
from the lessor. |
24 |
| If, however, that amount is not refunded to the lessee for
any |
25 |
| reason, the lessor is liable to pay that amount to the |
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| Department.
|
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| (23) Personal property purchased by a lessor who leases the
|
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| property, under
a
lease of
one year or longer executed or in |
29 |
| effect at the time
the lessor would otherwise be subject to the |
30 |
| tax imposed by this Act,
to a governmental body
that has been |
31 |
| issued an active sales tax exemption identification number by |
32 |
| the
Department under Section 1g of the Retailers' Occupation |
33 |
| Tax Act.
If the
property is leased in a manner that does not |
34 |
| qualify for
this exemption
or used in any other non-exempt |
35 |
| manner, the lessor shall be liable for the
tax imposed under |
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| this Act or the Service Use Tax Act, as the case may
be, based |
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HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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| on the fair market value of the property at the time the
|
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| non-qualifying use occurs. No lessor shall collect or attempt |
3 |
| to collect an
amount (however
designated) that purports to |
4 |
| reimburse that lessor for the tax imposed by this
Act or the |
5 |
| Service Use Tax Act, as the case may be, if the tax has not been
|
6 |
| paid by the lessor. If a lessor improperly collects any such |
7 |
| amount from the
lessee, the lessee shall have a legal right to |
8 |
| claim a refund of that amount
from the lessor. If, however, |
9 |
| that amount is not refunded to the lessee for
any reason, the |
10 |
| lessor is liable to pay that amount to the Department.
|
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| (24) Beginning with taxable years ending on or after |
12 |
| December
31, 1995
and
ending with taxable years ending on or |
13 |
| before December 31, 2004,
personal property that is
donated for |
14 |
| disaster relief to be used in a State or federally declared
|
15 |
| disaster area in Illinois or bordering Illinois by a |
16 |
| manufacturer or retailer
that is registered in this State to a |
17 |
| corporation, society, association,
foundation, or institution |
18 |
| that has been issued a sales tax exemption
identification |
19 |
| number by the Department that assists victims of the disaster
|
20 |
| who reside within the declared disaster area.
|
21 |
| (25) Beginning with taxable years ending on or after |
22 |
| December
31, 1995 and
ending with taxable years ending on or |
23 |
| before December 31, 2004, personal
property that is used in the |
24 |
| performance of infrastructure repairs in this
State, including |
25 |
| but not limited to municipal roads and streets, access roads,
|
26 |
| bridges, sidewalks, waste disposal systems, water and sewer |
27 |
| line extensions,
water distribution and purification |
28 |
| facilities, storm water drainage and
retention facilities, and |
29 |
| sewage treatment facilities, resulting from a State
or |
30 |
| federally declared disaster in Illinois or bordering Illinois |
31 |
| when such
repairs are initiated on facilities located in the |
32 |
| declared disaster area
within 6 months after the disaster.
|
33 |
| (26) Beginning July 1, 1999, game or game birds purchased |
34 |
| at a "game
breeding
and hunting preserve area" or an "exotic |
35 |
| game hunting area" as those terms are
used in
the Wildlife Code |
36 |
| or at a hunting enclosure approved through rules adopted by
the
|
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|
HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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|
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| Department of Natural Resources. This paragraph is exempt from |
2 |
| the provisions
of
Section 3-90.
|
3 |
| (27) A motor vehicle, as that term is defined in Section |
4 |
| 1-146
of the
Illinois
Vehicle Code, that is donated to a |
5 |
| corporation, limited liability company,
society, association, |
6 |
| foundation, or institution that is determined by the
Department |
7 |
| to be organized and operated exclusively for educational |
8 |
| purposes.
For purposes of this exemption, "a corporation, |
9 |
| limited liability company,
society, association, foundation, |
10 |
| or institution organized and operated
exclusively for |
11 |
| educational purposes" means all tax-supported public schools,
|
12 |
| private schools that offer systematic instruction in useful |
13 |
| branches of
learning by methods common to public schools and |
14 |
| that compare favorably in
their scope and intensity with the |
15 |
| course of study presented in tax-supported
schools, and |
16 |
| vocational or technical schools or institutes organized and
|
17 |
| operated exclusively to provide a course of study of not less |
18 |
| than 6 weeks
duration and designed to prepare individuals to |
19 |
| follow a trade or to pursue a
manual, technical, mechanical, |
20 |
| industrial, business, or commercial
occupation.
|
21 |
| (28) Beginning January 1, 2000, personal property, |
22 |
| including
food,
purchased through fundraising
events for the |
23 |
| benefit of
a public or private elementary or
secondary school, |
24 |
| a group of those schools, or one or more school
districts if |
25 |
| the events are
sponsored by an entity recognized by the school |
26 |
| district that consists
primarily of volunteers and includes
|
27 |
| parents and teachers of the school children. This paragraph |
28 |
| does not apply
to fundraising
events (i) for the benefit of |
29 |
| private home instruction or (ii)
for which the fundraising |
30 |
| entity purchases the personal property sold at
the events from |
31 |
| another individual or entity that sold the property for the
|
32 |
| purpose of resale by the fundraising entity and that
profits |
33 |
| from the sale to the
fundraising entity. This paragraph is |
34 |
| exempt
from the provisions
of Section 3-90.
|
35 |
| (29) Beginning January 1, 2000 and through December 31, |
36 |
| 2001, new or
used automatic vending
machines that prepare and |
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|
|
HB0412 Engrossed |
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LRB093 04932 LCB 04991 b |
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|
1 |
| serve hot food and beverages, including coffee, soup,
and
other |
2 |
| items, and replacement parts for these machines.
Beginning |
3 |
| January 1,
2002 and through June 30, 2003, machines and parts |
4 |
| for machines used in
commercial, coin-operated amusement and |
5 |
| vending business if a use or occupation
tax is paid on the |
6 |
| gross receipts derived from the use of the commercial,
|
7 |
| coin-operated amusement and vending machines.
This
paragraph
|
8 |
| is exempt from the provisions of Section 3-90.
|
9 |
| (30) Food for human consumption that is to be consumed off |
10 |
| the premises
where it is sold (other than alcoholic beverages, |
11 |
| soft drinks, and food that
has been prepared for immediate |
12 |
| consumption) and prescription and
nonprescription medicines, |
13 |
| drugs, medical appliances, and insulin, urine
testing |
14 |
| materials, syringes, and needles used by diabetics, for human |
15 |
| use, when
purchased for use by a person receiving medical |
16 |
| assistance under Article 5 of
the Illinois Public Aid Code who |
17 |
| resides in a licensed long-term care facility,
as defined in |
18 |
| the Nursing Home Care Act.
|
19 |
| (31) Beginning on
the effective date of this amendatory Act |
20 |
| of the 92nd General Assembly,
computers and communications |
21 |
| equipment
utilized for any hospital purpose and equipment used |
22 |
| in the diagnosis,
analysis, or treatment of hospital patients |
23 |
| purchased by a lessor who leases
the equipment, under a lease |
24 |
| of one year or longer executed or in effect at the
time the |
25 |
| lessor would otherwise be subject to the tax imposed by this |
26 |
| Act, to a
hospital that has been issued an active tax exemption |
27 |
| identification number by
the Department under Section 1g of the |
28 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a |
29 |
| manner that does not qualify for this exemption or is
used in |
30 |
| any other nonexempt manner, the lessor shall be liable for the |
31 |
| tax
imposed under this Act or the Service Use Tax Act, as the |
32 |
| case may be, based on
the fair market value of the property at |
33 |
| the time the nonqualifying use
occurs. No lessor shall collect |
34 |
| or attempt to collect an amount (however
designated) that |
35 |
| purports to reimburse that lessor for the tax imposed by this
|
36 |
| Act or the Service Use Tax Act, as the case may be, if the tax |
|
|
|
HB0412 Engrossed |
- 12 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| has not been
paid by the lessor. If a lessor improperly |
2 |
| collects any such amount from the
lessee, the lessee shall have |
3 |
| a legal right to claim a refund of that amount
from the lessor. |
4 |
| If, however, that amount is not refunded to the lessee for
any |
5 |
| reason, the lessor is liable to pay that amount to the |
6 |
| Department.
This paragraph is exempt from the provisions of |
7 |
| Section 3-90.
|
8 |
| (32) Beginning on
the effective date of this amendatory Act |
9 |
| of the 92nd General Assembly,
personal property purchased by a |
10 |
| lessor who leases the property,
under a lease of one year or |
11 |
| longer executed or in effect at the time the
lessor would |
12 |
| otherwise be subject to the tax imposed by this Act, to a
|
13 |
| governmental body that has been issued an active sales tax |
14 |
| exemption
identification number by the Department under |
15 |
| Section 1g of the Retailers'
Occupation Tax Act. If the |
16 |
| property is leased in a manner that does not
qualify for this |
17 |
| exemption or used in any other nonexempt manner, the lessor
|
18 |
| shall be liable for the tax imposed under this Act or the |
19 |
| Service Use Tax Act,
as the case may be, based on the fair |
20 |
| market value of the property at the time
the nonqualifying use |
21 |
| occurs. No lessor shall collect or attempt to collect
an amount |
22 |
| (however designated) that purports to reimburse that lessor for |
23 |
| the
tax imposed by this Act or the Service Use Tax Act, as the |
24 |
| case may be, if the
tax has not been paid by the lessor. If a |
25 |
| lessor improperly collects any such
amount from the lessee, the |
26 |
| lessee shall have a legal right to claim a refund
of that |
27 |
| amount from the lessor. If, however, that amount is not |
28 |
| refunded to
the lessee for any reason, the lessor is liable to |
29 |
| pay that amount to the
Department. This paragraph is exempt |
30 |
| from the provisions of Section 3-90.
|
31 |
| (33) On and after July 1, 2003 and until the effective date |
32 |
| of this amendatory Act of the 93rd General Assembly , the use in
|
33 |
| this State of motor vehicles of
the second division with a |
34 |
| gross vehicle weight in excess of 8,000 pounds and
that are |
35 |
| subject to the commercial distribution fee imposed under |
36 |
| Section
3-815.1 of the Illinois Vehicle Code. This exemption |
|
|
|
HB0412 Engrossed |
- 13 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| applies to repair and
replacement parts added after the initial |
2 |
| purchase of such a motor vehicle if
that motor
vehicle is used |
3 |
| in a manner that would qualify for the rolling stock exemption
|
4 |
| otherwise provided for in this Act.
|
5 |
| (Source: P.A. 92-35, eff.
7-1-01; 92-227, eff. 8-2-01; 92-337, |
6 |
| eff. 8-10-01; 92-484, eff. 8-23-01;
92-651, eff. 7-11-02; |
7 |
| 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; revised
9-11-03.)
|
8 |
| (35 ILCS 105/3-61)
|
9 |
| Sec. 3-61. Motor vehicles; use as rolling stock definition. |
10 |
| Through
June 30, 2003 and beginning again on the effective date |
11 |
| of this amendatory Act of the 93rd General Assembly , "use
as
|
12 |
| rolling stock moving
in
interstate commerce" in subsections (b) |
13 |
| and (c) of Section 3-55 means for motor
vehicles, as defined in |
14 |
| Section 1-146 of the Illinois Vehicle Code, and
trailers, as |
15 |
| defined in Section 1-209 of the Illinois Vehicle Code, when on |
16 |
| 15
or more occasions in a 12-month period the motor vehicle and |
17 |
| trailer has
carried
persons or
property for hire in interstate |
18 |
| commerce, even just between points in Illinois,
if the motor |
19 |
| vehicle and trailer transports persons whose journeys or |
20 |
| property
whose shipments originate or terminate outside |
21 |
| Illinois. This definition
applies to all property purchased for |
22 |
| the purpose of being
attached to those motor vehicles or |
23 |
| trailers as a part thereof.
|
24 |
| On and after July 1, 2003 and until the effective date of |
25 |
| this amendatory Act of the 93rd General Assembly , "use as |
26 |
| rolling stock
moving in interstate
commerce" in
paragraphs (b) |
27 |
| and (c) of Section 3-55 occurs for motor vehicles, as defined |
28 |
| in
Section 1-146 of the Illinois Vehicle Code, when during a |
29 |
| 12-month period
the
rolling stock has carried persons or |
30 |
| property for hire in interstate commerce
for 51% of
its total |
31 |
| trips and transports persons whose journeys or property whose
|
32 |
| shipments
originate or terminate outside Illinois. On and after |
33 |
| July 1, 2003 and until the effective date of this amendatory |
34 |
| Act of the 93rd General Assembly, trips that are only between |
35 |
| points
in
Illinois shall
not be counted as interstate trips |
|
|
|
HB0412 Engrossed |
- 14 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| when calculating whether the tangible
personal property
|
2 |
| qualifies for the exemption but such trips shall be included in |
3 |
| total trips
taken.
|
4 |
| (Source: P.A. 93-23, eff. 6-20-03.)
|
5 |
| Section 15. The Service Use Tax Act is amended by changing |
6 |
| Sections 2 and
3-51 as follows:
|
7 |
| (35 ILCS 110/2)
(from Ch. 120, par. 439.32)
|
8 |
| Sec. 2. "Use" means the exercise by any person of any right |
9 |
| or power
over tangible personal property incident to the |
10 |
| ownership of that
property, but does not include the sale or |
11 |
| use for demonstration by him
of that property in any form as |
12 |
| tangible personal property in the
regular course of business.
|
13 |
| "Use" does not mean the interim
use of
tangible personal |
14 |
| property nor the physical incorporation of tangible
personal |
15 |
| property, as an ingredient or constituent, into other tangible
|
16 |
| personal property, (a) which is sold in the regular course of |
17 |
| business
or (b) which the person incorporating such ingredient |
18 |
| or constituent
therein has undertaken at the time of such |
19 |
| purchase to cause to be
transported in interstate commerce to |
20 |
| destinations outside the State of
Illinois.
|
21 |
| "Purchased from a serviceman" means the acquisition of the |
22 |
| ownership
of, or title to, tangible personal property through a |
23 |
| sale of service.
|
24 |
| "Purchaser" means any person who, through a sale of |
25 |
| service, acquires
the ownership of, or title to, any tangible |
26 |
| personal property.
|
27 |
| "Cost price" means the consideration paid by the serviceman |
28 |
| for a
purchase valued in money, whether paid in money or |
29 |
| otherwise, including
cash, credits and services, and shall be |
30 |
| determined without any
deduction on account of the supplier's |
31 |
| cost of the property sold or on
account of any other expense |
32 |
| incurred by the supplier. When a serviceman
contracts out part |
33 |
| or all of the services required in his sale of service,
it |
34 |
| shall be presumed that the cost price to the serviceman of the |
|
|
|
HB0412 Engrossed |
- 15 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| property
transferred to him or her by his or her subcontractor |
2 |
| is equal to 50% of
the subcontractor's charges to the |
3 |
| serviceman in the absence of proof of
the consideration paid by |
4 |
| the subcontractor for the purchase of such property.
|
5 |
| "Selling price" means the consideration for a sale valued |
6 |
| in money
whether received in money or otherwise, including |
7 |
| cash, credits and
service, and shall be determined without any |
8 |
| deduction on account of the
serviceman's cost of the property |
9 |
| sold, the cost of materials used,
labor or service cost or any |
10 |
| other expense whatsoever, but does not
include interest or |
11 |
| finance charges which appear as separate items on
the bill of |
12 |
| sale or sales contract nor charges that are added to prices
by |
13 |
| sellers on account of the seller's duty to collect, from the
|
14 |
| purchaser, the tax that is imposed by this Act.
|
15 |
| "Department" means the Department of Revenue.
|
16 |
| "Person" means any natural individual, firm, partnership,
|
17 |
| association, joint stock company, joint venture, public or |
18 |
| private
corporation, limited liability company, and any |
19 |
| receiver, executor, trustee,
guardian or other representative |
20 |
| appointed by order of any court.
|
21 |
| "Sale of service" means any transaction except:
|
22 |
| (1) a retail sale of tangible personal property taxable |
23 |
| under the
Retailers' Occupation Tax Act or under the Use |
24 |
| Tax Act.
|
25 |
| (2) a sale of tangible personal property for the |
26 |
| purpose of resale
made in compliance with Section 2c of the |
27 |
| Retailers' Occupation Tax Act.
|
28 |
| (3) except as hereinafter provided, a sale or transfer |
29 |
| of tangible
personal property as an incident to the |
30 |
| rendering of service for or by
any governmental body, or |
31 |
| for or by any corporation, society,
association, |
32 |
| foundation or institution organized and operated
|
33 |
| exclusively for charitable, religious or educational |
34 |
| purposes or any
not-for-profit corporation, society, |
35 |
| association, foundation,
institution or organization which |
36 |
| has no compensated officers or
employees and which is |
|
|
|
HB0412 Engrossed |
- 16 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| organized and operated primarily for the
recreation of |
2 |
| persons 55 years of age or older. A limited liability |
3 |
| company
may qualify for the exemption under this paragraph |
4 |
| only if the limited
liability company is organized and |
5 |
| operated exclusively for educational
purposes.
|
6 |
| (4) a sale or transfer of tangible personal
property as |
7 |
| an incident to the
rendering of service for interstate |
8 |
| carriers for hire for use as rolling stock
moving in |
9 |
| interstate commerce or by lessors under a lease of one year |
10 |
| or
longer, executed or in effect at the time of purchase of |
11 |
| personal property, to
interstate carriers for hire for use |
12 |
| as rolling stock moving in interstate
commerce so long as |
13 |
| so used by such interstate carriers for hire, and equipment
|
14 |
| operated by a telecommunications provider, licensed as a |
15 |
| common carrier by the
Federal Communications Commission, |
16 |
| which is permanently installed in or affixed
to aircraft |
17 |
| moving in interstate commerce.
|
18 |
| (4a) a sale or transfer of tangible personal
property |
19 |
| as an incident
to the rendering of service for owners, |
20 |
| lessors, or shippers of tangible
personal property which is |
21 |
| utilized by interstate carriers for hire for
use as rolling |
22 |
| stock moving in interstate commerce so long as so used by
|
23 |
| interstate carriers for hire, and equipment operated by a
|
24 |
| telecommunications provider, licensed as a common carrier |
25 |
| by the Federal
Communications Commission, which is |
26 |
| permanently installed in or affixed to
aircraft moving in |
27 |
| interstate commerce.
|
28 |
| (4a-5) on and after July 1, 2003 and until the |
29 |
| effective date of this amendatory Act of the 93rd General |
30 |
| Assembly , a sale or
transfer of a motor vehicle
of
the
|
31 |
| second division with a gross vehicle weight in excess of |
32 |
| 8,000 pounds as an
incident to the rendering of service if |
33 |
| that motor
vehicle is subject
to the commercial |
34 |
| distribution fee imposed under Section 3-815.1 of the
|
35 |
| Illinois Vehicle
Code. This exemption applies to repair and |
36 |
| replacement parts added after the
initial
purchase of such |
|
|
|
HB0412 Engrossed |
- 17 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| a motor vehicle if that motor vehicle is used in a manner |
2 |
| that
would
qualify for the rolling stock exemption |
3 |
| otherwise provided for in this Act.
|
4 |
| (5) a sale or transfer of machinery and equipment used |
5 |
| primarily in the
process of the manufacturing or |
6 |
| assembling, either in an existing, an expanded
or a new |
7 |
| manufacturing facility, of tangible personal property for |
8 |
| wholesale or
retail sale or lease, whether such sale or |
9 |
| lease is made directly by the
manufacturer or by some other |
10 |
| person, whether the materials used in the process
are owned |
11 |
| by the manufacturer or some other person, or whether such |
12 |
| sale or
lease is made apart from or as an incident to the |
13 |
| seller's engaging in a
service occupation and the |
14 |
| applicable tax is a Service Use Tax or Service
Occupation |
15 |
| Tax, rather than Use Tax or Retailers' Occupation Tax.
|
16 |
| (5a) the repairing, reconditioning or remodeling, for |
17 |
| a
common carrier by rail, of tangible personal property |
18 |
| which belongs to such
carrier for hire, and as to which |
19 |
| such carrier receives the physical possession
of the |
20 |
| repaired, reconditioned or remodeled item of tangible |
21 |
| personal property
in Illinois, and which such carrier |
22 |
| transports, or shares with another common
carrier in the |
23 |
| transportation of such property, out of Illinois on a |
24 |
| standard
uniform bill of lading showing the person who |
25 |
| repaired, reconditioned or
remodeled the property to a |
26 |
| destination outside Illinois, for use outside
Illinois.
|
27 |
| (5b) a sale or transfer of tangible personal property |
28 |
| which is produced by
the seller thereof on special order in |
29 |
| such a way as to have made the
applicable tax the Service |
30 |
| Occupation Tax or the Service Use Tax, rather than
the |
31 |
| Retailers' Occupation Tax or the Use Tax, for an interstate |
32 |
| carrier by rail
which receives the physical possession of |
33 |
| such property in Illinois, and which
transports such |
34 |
| property, or shares with another common carrier in the
|
35 |
| transportation of such property, out of Illinois on a |
36 |
| standard uniform bill of
lading showing the seller of the |
|
|
|
HB0412 Engrossed |
- 18 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| property as the shipper or consignor of such
property to a |
2 |
| destination outside Illinois, for use outside Illinois.
|
3 |
| (6) until July 1, 2003, a sale or transfer of |
4 |
| distillation machinery
and equipment, sold
as a unit or kit |
5 |
| and assembled or installed by the retailer, which
machinery |
6 |
| and equipment is certified by the user to be used only for |
7 |
| the
production of ethyl alcohol that will be used for |
8 |
| consumption as motor fuel
or as a component of motor fuel |
9 |
| for the personal use of such user and not
subject to sale |
10 |
| or resale.
|
11 |
| (7) at the election of any serviceman not required to |
12 |
| be
otherwise registered as a retailer under Section 2a of |
13 |
| the Retailers'
Occupation Tax Act, made for each fiscal |
14 |
| year sales
of service in which the aggregate annual cost |
15 |
| price of tangible
personal property transferred as an |
16 |
| incident to the sales of service is
less than 35%, or 75% |
17 |
| in the case of servicemen transferring prescription
drugs |
18 |
| or servicemen engaged in graphic arts production, of the |
19 |
| aggregate
annual total gross receipts from all sales of |
20 |
| service. The purchase of
such tangible personal property by |
21 |
| the serviceman shall be subject to tax
under the Retailers' |
22 |
| Occupation Tax Act and the Use Tax Act.
However, if a
|
23 |
| primary serviceman who has made the election described in |
24 |
| this paragraph
subcontracts service work to a secondary |
25 |
| serviceman who has also made the
election described in this |
26 |
| paragraph, the primary serviceman does not
incur a Use Tax |
27 |
| liability if the secondary serviceman (i) has paid or will |
28 |
| pay
Use
Tax on his or her cost price of any tangible |
29 |
| personal property transferred
to the primary serviceman |
30 |
| and (ii) certifies that fact in writing to the
primary
|
31 |
| serviceman.
|
32 |
| Tangible personal property transferred incident to the |
33 |
| completion of a
maintenance agreement is exempt from the tax |
34 |
| imposed pursuant to this Act.
|
35 |
| Exemption (5) also includes machinery and equipment used in |
36 |
| the general
maintenance or repair of such exempt machinery and |
|
|
|
HB0412 Engrossed |
- 19 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| equipment or for in-house
manufacture of exempt machinery and |
2 |
| equipment. For the purposes of exemption
(5), each of these |
3 |
| terms shall have the following meanings: (1) "manufacturing
|
4 |
| process" shall mean the production of any article of tangible |
5 |
| personal
property, whether such article is a finished product |
6 |
| or an article for use in
the process of manufacturing or |
7 |
| assembling a different article of tangible
personal property, |
8 |
| by procedures commonly regarded as manufacturing,
processing, |
9 |
| fabricating, or refining which changes some existing
material |
10 |
| or materials into a material with a different form, use or
|
11 |
| name. In relation to a recognized integrated business composed |
12 |
| of a
series of operations which collectively constitute |
13 |
| manufacturing, or
individually constitute manufacturing |
14 |
| operations, the manufacturing
process shall be deemed to |
15 |
| commence with the first operation or stage of
production in the |
16 |
| series, and shall not be deemed to end until the
completion of |
17 |
| the final product in the last operation or stage of
production |
18 |
| in the series; and further, for purposes of exemption (5),
|
19 |
| photoprocessing is deemed to be a manufacturing process of |
20 |
| tangible
personal property for wholesale or retail sale; (2) |
21 |
| "assembling process" shall
mean the production of any article |
22 |
| of tangible personal property, whether such
article is a |
23 |
| finished product or an article for use in the process of
|
24 |
| manufacturing or assembling a different article of tangible |
25 |
| personal
property, by the combination of existing materials in |
26 |
| a manner commonly
regarded as assembling which results in a |
27 |
| material of a different form,
use or name; (3) "machinery" |
28 |
| shall mean major mechanical machines or
major components of |
29 |
| such machines contributing to a manufacturing or
assembling |
30 |
| process; and (4) "equipment" shall include any independent
|
31 |
| device or tool separate from any machinery but essential to an
|
32 |
| integrated manufacturing or assembly process; including |
33 |
| computers
used primarily in a manufacturer's computer
assisted |
34 |
| design, computer assisted manufacturing (CAD/CAM) system;
or |
35 |
| any subunit or assembly comprising a component of any machinery |
36 |
| or
auxiliary, adjunct or attachment parts of machinery, such as |
|
|
|
HB0412 Engrossed |
- 20 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| tools, dies,
jigs, fixtures, patterns and molds; or any parts |
2 |
| which require periodic
replacement in the course of normal |
3 |
| operation; but shall not include hand
tools.
Equipment includes |
4 |
| chemicals or chemicals acting as catalysts but only if the
|
5 |
| chemicals or chemicals acting as catalysts effect a direct and |
6 |
| immediate change
upon a
product being manufactured or assembled |
7 |
| for wholesale or retail sale or
lease.
The purchaser of such |
8 |
| machinery and equipment who has an active
resale registration |
9 |
| number shall furnish such number to the seller at the
time of |
10 |
| purchase. The user of such machinery and equipment and tools
|
11 |
| without an active resale registration number shall prepare a |
12 |
| certificate of
exemption for each transaction stating facts |
13 |
| establishing the exemption for
that transaction, which |
14 |
| certificate shall be available to the Department
for inspection |
15 |
| or audit. The Department shall prescribe the form of the
|
16 |
| certificate.
|
17 |
| Any informal rulings, opinions or letters issued by the |
18 |
| Department in
response to an inquiry or request for any opinion |
19 |
| from any person
regarding the coverage and applicability of |
20 |
| exemption (5) to specific
devices shall be published, |
21 |
| maintained as a public record, and made
available for public |
22 |
| inspection and copying. If the informal ruling,
opinion or |
23 |
| letter contains trade secrets or other confidential
|
24 |
| information, where possible the Department shall delete such |
25 |
| information
prior to publication. Whenever such informal |
26 |
| rulings, opinions, or
letters contain any policy of general |
27 |
| applicability, the Department
shall formulate and adopt such |
28 |
| policy as a rule in accordance with the
provisions of the |
29 |
| Illinois Administrative Procedure Act.
|
30 |
| On and after July 1, 1987, no entity otherwise eligible |
31 |
| under exemption
(3) of this Section shall make tax free |
32 |
| purchases unless it has an active
exemption identification |
33 |
| number issued by the Department.
|
34 |
| The purchase, employment and transfer of such tangible |
35 |
| personal
property as newsprint and ink for the primary purpose |
36 |
| of conveying news
(with or without other information) is not a |
|
|
|
HB0412 Engrossed |
- 21 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| purchase, use or sale of
service or of tangible personal |
2 |
| property within the meaning of this Act.
|
3 |
| "Serviceman" means any person who is engaged in the |
4 |
| occupation of
making sales of service.
|
5 |
| "Sale at retail" means "sale at retail" as defined in the |
6 |
| Retailers'
Occupation Tax Act.
|
7 |
| "Supplier" means any person who makes sales of tangible |
8 |
| personal
property to servicemen for the purpose of resale as an |
9 |
| incident to a
sale of service.
|
10 |
| "Serviceman maintaining a place of business in this State", |
11 |
| or any
like term, means and includes any serviceman:
|
12 |
| 1. having or maintaining within this State, directly or |
13 |
| by a
subsidiary, an office, distribution house, sales |
14 |
| house, warehouse or
other place of business, or any agent |
15 |
| or other representative operating
within this State under |
16 |
| the authority of the serviceman or its
subsidiary, |
17 |
| irrespective of whether such place of business or agent or
|
18 |
| other representative is located here permanently or |
19 |
| temporarily, or
whether such serviceman or subsidiary is |
20 |
| licensed to do business in this
State;
|
21 |
| 2. soliciting orders for tangible personal property by |
22 |
| means of a
telecommunication or television shopping system |
23 |
| (which utilizes toll free
numbers) which is intended by the |
24 |
| retailer to be broadcast by cable
television or other means |
25 |
| of broadcasting, to consumers located in this State;
|
26 |
| 3. pursuant to a contract with a broadcaster or |
27 |
| publisher located in this
State, soliciting orders for |
28 |
| tangible personal property by means of advertising
which is |
29 |
| disseminated primarily to consumers located in this State |
30 |
| and only
secondarily to bordering jurisdictions;
|
31 |
| 4. soliciting orders for tangible personal property by |
32 |
| mail if the
solicitations are substantial and recurring and |
33 |
| if the retailer benefits
from any banking, financing, debt |
34 |
| collection, telecommunication, or
marketing activities |
35 |
| occurring in this State or benefits from the location
in |
36 |
| this State of authorized installation, servicing, or |
|
|
|
HB0412 Engrossed |
- 22 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| repair facilities;
|
2 |
| 5. being owned or controlled by the same interests |
3 |
| which own or
control any retailer engaging in business in |
4 |
| the same or similar line of
business in this State;
|
5 |
| 6. having a franchisee or licensee operating under its |
6 |
| trade name if
the franchisee or licensee is required to |
7 |
| collect the tax under this Section;
|
8 |
| 7. pursuant to a contract with a cable television |
9 |
| operator located in
this State, soliciting orders for |
10 |
| tangible personal property by means of
advertising which is |
11 |
| transmitted or distributed over a cable television
system |
12 |
| in this State; or
|
13 |
| 8. engaging in activities in Illinois, which |
14 |
| activities in the
state in which the supply business |
15 |
| engaging in such activities is located
would constitute |
16 |
| maintaining a place of business in that state.
|
17 |
| (Source: P.A. 92-484, eff. 8-23-01; 93-23, eff. 6-20-03; 93-24, |
18 |
| eff.
6-20-03; revised 8-21-03.)
|
19 |
| (35 ILCS 110/3-51)
|
20 |
| Sec. 3-51. Motor vehicles; use as rolling stock definition. |
21 |
| Through
June 30, 2003 and beginning again on the effective date |
22 |
| of this amendatory Act of the 93rd General Assembly , "use
as
|
23 |
| rolling stock moving
in
interstate commerce" in subsection (b) |
24 |
| of Section 3-45 means for motor
vehicles, as defined in Section |
25 |
| 1-46 of the Illinois Vehicle Code, and
trailers, as defined in |
26 |
| Section 1-209 of the Illinois Vehicle Code, when on 15
or more
|
27 |
| occasions in a 12-month period the motor vehicle and trailer |
28 |
| has carried
persons
or property
for hire in interstate |
29 |
| commerce, even just between points in Illinois, if the
motor |
30 |
| vehicle and trailer transports persons whose journeys or |
31 |
| property
whose shipments originate or terminate outside |
32 |
| Illinois. This definition
applies to all property purchased for |
33 |
| the purpose of being attached to those
motor
vehicles or |
34 |
| trailers as a part thereof.
|
35 |
| On and after July 1, 2003 and until the effective date of |
|
|
|
HB0412 Engrossed |
- 23 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| this amendatory Act of the 93rd General Assembly , "use as |
2 |
| rolling stock
moving in interstate
commerce" in
paragraphs (4) |
3 |
| and (4a) of the definition of "sale of service" in Section 2
|
4 |
| and subsection (b) of Section 3-45 occurs for motor vehicles, |
5 |
| as defined in
Section 1-146 of the Illinois Vehicle Code, when
|
6 |
| during a 12-month period the rolling stock has carried persons |
7 |
| or property for
hire in
interstate commerce for 51% of its |
8 |
| total trips and transports persons whose
journeys or
property |
9 |
| whose shipments originate or terminate outside Illinois. On and |
10 |
| after July 1, 2003 and until the effective date of this |
11 |
| amendatory Act of the 93rd General Assembly, trips that
are |
12 |
| only
between points in Illinois shall not be counted as |
13 |
| interstate trips when
calculating whether
the tangible |
14 |
| personal property qualifies for the exemption but such trips |
15 |
| shall
be included
in total trips taken.
|
16 |
| (Source: P.A. 93-23, eff. 6-20-03.)
|
17 |
| Section 20. The Service Occupation Tax Act is amended by |
18 |
| changing Sections 2
and 2d as follows:
|
19 |
| (35 ILCS 115/2)
(from Ch. 120, par. 439.102)
|
20 |
| Sec. 2. "Transfer" means any transfer of the title to |
21 |
| property or of
the ownership of property whether or not the |
22 |
| transferor retains title as
security for the payment of amounts |
23 |
| due him from the transferee.
|
24 |
| "Cost Price" means the consideration paid by the serviceman |
25 |
| for a
purchase valued in money, whether paid in money or |
26 |
| otherwise, including
cash, credits and services, and shall be |
27 |
| determined without any deduction
on account of the supplier's |
28 |
| cost of the property sold or on account of any
other expense |
29 |
| incurred by the supplier. When a serviceman contracts out
part |
30 |
| or all of the services required in his sale of service, it |
31 |
| shall be
presumed that the cost price to the serviceman of the |
32 |
| property
transferred to him by his or her subcontractor is |
33 |
| equal to 50% of the
subcontractor's charges to the serviceman |
34 |
| in the absence of proof of the
consideration paid by the |
|
|
|
HB0412 Engrossed |
- 24 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| subcontractor for the purchase of such
property.
|
2 |
| "Department" means the Department of Revenue.
|
3 |
| "Person" means any natural individual, firm, partnership, |
4 |
| association, joint
stock company, joint venture, public or |
5 |
| private corporation, limited liability
company, and any |
6 |
| receiver, executor, trustee, guardian or other representative
|
7 |
| appointed by order of any court.
|
8 |
| "Sale of Service" means any transaction except:
|
9 |
| (a) A retail sale of tangible personal property taxable |
10 |
| under the Retailers'
Occupation Tax Act or under the Use Tax |
11 |
| Act.
|
12 |
| (b) A sale of tangible personal property for the purpose of |
13 |
| resale made in
compliance with Section 2c of the Retailers' |
14 |
| Occupation Tax Act.
|
15 |
| (c) Except as hereinafter provided, a sale or transfer of |
16 |
| tangible personal
property as an incident to the rendering of |
17 |
| service for or by any governmental
body or for or by any |
18 |
| corporation, society, association, foundation or
institution |
19 |
| organized and operated exclusively for charitable, religious |
20 |
| or
educational purposes or any not-for-profit corporation, |
21 |
| society, association,
foundation, institution or organization |
22 |
| which has no compensated officers or
employees and which is |
23 |
| organized and operated primarily for the recreation of
persons |
24 |
| 55 years of age or older. A limited liability company may |
25 |
| qualify for
the exemption under this paragraph only if the |
26 |
| limited liability company is
organized and operated |
27 |
| exclusively for educational purposes.
|
28 |
| (d) A sale or transfer of tangible personal
property
as an |
29 |
| incident to the
rendering of service for interstate carriers |
30 |
| for hire for use as rolling stock
moving in interstate commerce |
31 |
| or lessors under leases of one year or longer,
executed or in |
32 |
| effect at the time of purchase, to interstate carriers for hire
|
33 |
| for use as rolling stock moving in interstate commerce, and |
34 |
| equipment operated
by a telecommunications provider, licensed |
35 |
| as a common
carrier by the Federal Communications Commission, |
36 |
| which is permanently
installed in or affixed to aircraft moving |
|
|
|
HB0412 Engrossed |
- 25 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| in interstate commerce.
|
2 |
| (d-1) A sale or transfer of tangible personal
property as |
3 |
| an incident to
the rendering of service for owners, lessors or |
4 |
| shippers of tangible personal
property which is utilized by |
5 |
| interstate carriers for hire for use as rolling
stock moving in |
6 |
| interstate commerce, and equipment operated
by a |
7 |
| telecommunications provider, licensed as a common carrier by |
8 |
| the
Federal Communications Commission, which is permanently |
9 |
| installed in or
affixed to aircraft moving in interstate |
10 |
| commerce.
|
11 |
| (d-1.1) On and after July 1, 2003 and until the effective |
12 |
| date of this amendatory Act of the 93rd General Assembly , a |
13 |
| sale or
transfer of a motor vehicle
of the
second division with |
14 |
| a gross vehicle weight in excess of 8,000 pounds as an
incident |
15 |
| to the rendering of service if that motor
vehicle is subject
to |
16 |
| the commercial distribution fee imposed under Section 3-815.1 |
17 |
| of the
Illinois Vehicle
Code. This exemption applies to repair |
18 |
| and replacement parts added after the
initial
purchase of such |
19 |
| a motor vehicle if that motor vehicle is used in a manner that
|
20 |
| would
qualify for the rolling stock exemption otherwise |
21 |
| provided for in this Act.
|
22 |
| (d-2) The repairing, reconditioning or remodeling, for a |
23 |
| common carrier by
rail, of tangible personal property which |
24 |
| belongs to such carrier for hire, and
as to which such carrier |
25 |
| receives the physical possession of the repaired,
|
26 |
| reconditioned or remodeled item of tangible personal property |
27 |
| in Illinois, and
which such carrier transports, or shares with |
28 |
| another common carrier in the
transportation of such property, |
29 |
| out of Illinois on a standard uniform bill of
lading showing |
30 |
| the person who repaired, reconditioned or remodeled the |
31 |
| property
as the shipper or consignor of such property to a |
32 |
| destination outside Illinois,
for use outside Illinois.
|
33 |
| (d-3) A sale or transfer of tangible personal property |
34 |
| which
is produced by the seller thereof on special order in |
35 |
| such a way as to have
made the applicable tax the Service |
36 |
| Occupation Tax or the Service Use Tax,
rather than the |
|
|
|
HB0412 Engrossed |
- 26 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| Retailers' Occupation Tax or the Use Tax, for an interstate
|
2 |
| carrier by rail which receives the physical possession of such |
3 |
| property in
Illinois, and which transports such property, or |
4 |
| shares with another common
carrier in the transportation of |
5 |
| such property, out of Illinois on a standard
uniform bill of |
6 |
| lading showing the seller of the property as the shipper or
|
7 |
| consignor of such property to a destination outside Illinois, |
8 |
| for use outside
Illinois.
|
9 |
| (d-4) Until January 1, 1997, a sale, by a registered |
10 |
| serviceman paying tax
under this Act to the Department, of |
11 |
| special order printed materials delivered
outside Illinois and |
12 |
| which are not returned to this State, if delivery is made
by |
13 |
| the seller or agent of the seller, including an agent who |
14 |
| causes the product
to be delivered outside Illinois by a common |
15 |
| carrier or the U.S.
postal service.
|
16 |
| (e) A sale or transfer of machinery and equipment used |
17 |
| primarily in
the process of the manufacturing or assembling, |
18 |
| either in an existing, an
expanded or a new manufacturing |
19 |
| facility, of tangible personal property for
wholesale or retail |
20 |
| sale or lease, whether such sale or lease is made directly
by |
21 |
| the manufacturer or by some other person, whether the materials |
22 |
| used in the
process are owned by the manufacturer or some other |
23 |
| person, or whether such
sale or lease is made apart from or as |
24 |
| an incident to the seller's engaging in
a service occupation |
25 |
| and the applicable tax is a Service Occupation Tax or
Service |
26 |
| Use Tax, rather than Retailers' Occupation Tax or Use Tax.
|
27 |
| (f) Until July 1, 2003, the sale or transfer of |
28 |
| distillation
machinery
and equipment, sold as a
unit or kit and |
29 |
| assembled or installed by the retailer, which machinery
and |
30 |
| equipment is certified by the user to be used only for the |
31 |
| production
of ethyl alcohol that will be used for consumption |
32 |
| as motor fuel or as a
component of motor fuel for the personal |
33 |
| use of such user and not subject
to sale or resale.
|
34 |
| (g) At the election of any serviceman not required to be |
35 |
| otherwise
registered as a retailer under Section 2a of the |
36 |
| Retailers' Occupation Tax Act,
made for each fiscal year sales |
|
|
|
HB0412 Engrossed |
- 27 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| of service in which the aggregate annual cost
price of tangible |
2 |
| personal property transferred as an incident to the sales of
|
3 |
| service is less than 35% (75% in the case of servicemen |
4 |
| transferring
prescription drugs or servicemen engaged in |
5 |
| graphic arts production) of the
aggregate annual total gross |
6 |
| receipts from all sales of service. The purchase
of such |
7 |
| tangible personal property by the serviceman shall be subject |
8 |
| to tax
under the Retailers' Occupation Tax Act and the Use Tax |
9 |
| Act.
However, if a
primary serviceman who has made the election |
10 |
| described in this paragraph
subcontracts service work to a |
11 |
| secondary serviceman who has also made the
election described |
12 |
| in this paragraph, the primary serviceman does not
incur a Use |
13 |
| Tax liability if the secondary serviceman (i) has paid or will |
14 |
| pay
Use
Tax on his or her cost price of any tangible personal |
15 |
| property transferred
to the primary serviceman and (ii) |
16 |
| certifies that fact in writing to the
primary serviceman.
|
17 |
| Tangible personal property transferred incident to the |
18 |
| completion of a
maintenance agreement is exempt from the tax |
19 |
| imposed pursuant to this Act.
|
20 |
| Exemption (e) also includes machinery and equipment used in |
21 |
| the
general maintenance or repair of such exempt machinery and |
22 |
| equipment or for
in-house manufacture of exempt machinery and |
23 |
| equipment.
For the purposes of exemption (e), each of these |
24 |
| terms shall have the following
meanings: (1) "manufacturing |
25 |
| process" shall mean the production of any
article of tangible |
26 |
| personal property, whether such article is a
finished product |
27 |
| or an article for use in the process of manufacturing
or |
28 |
| assembling a different article of tangible personal property, |
29 |
| by
procedures commonly regarded as manufacturing, processing, |
30 |
| fabricating,
or refining which changes some existing material |
31 |
| or materials into a
material with a different form, use or |
32 |
| name. In relation to a
recognized integrated business composed |
33 |
| of a series of operations which
collectively constitute |
34 |
| manufacturing, or individually constitute
manufacturing |
35 |
| operations, the manufacturing process shall be deemed to
|
36 |
| commence with the first operation or stage of production in the |
|
|
|
HB0412 Engrossed |
- 28 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| series,
and shall not be deemed to end until the completion of |
2 |
| the final product
in the last operation or stage of production |
3 |
| in the series; and further for
purposes of exemption (e), |
4 |
| photoprocessing is deemed to be a manufacturing
process of |
5 |
| tangible personal property for wholesale or retail sale;
(2) |
6 |
| "assembling process" shall mean the production of any article |
7 |
| of
tangible personal property, whether such article is a |
8 |
| finished product
or an article for use in the process of |
9 |
| manufacturing or assembling a
different article of tangible |
10 |
| personal property, by the combination of
existing materials in |
11 |
| a manner commonly regarded as assembling which
results in a |
12 |
| material of a different form, use or name; (3) "machinery"
|
13 |
| shall mean major mechanical machines or major components of |
14 |
| such machines
contributing to a manufacturing or assembling |
15 |
| process; and (4) "equipment"
shall include any independent |
16 |
| device or tool separate from any machinery but
essential to an |
17 |
| integrated manufacturing or assembly process; including
|
18 |
| computers used primarily in a manufacturer's computer
assisted |
19 |
| design, computer assisted manufacturing (CAD/CAM) system; or |
20 |
| any
subunit or assembly comprising a component of any machinery |
21 |
| or auxiliary,
adjunct or attachment parts of machinery, such as |
22 |
| tools, dies, jigs, fixtures,
patterns and molds; or any parts |
23 |
| which require periodic replacement in the
course of normal |
24 |
| operation; but shall not include hand tools. Equipment
includes |
25 |
| chemicals or chemicals acting as catalysts but only if the |
26 |
| chemicals
or chemicals acting as catalysts effect a direct and |
27 |
| immediate change upon a
product being manufactured or assembled |
28 |
| for wholesale or retail sale or lease.
The purchaser of such |
29 |
| machinery and equipment
who has an active resale registration |
30 |
| number shall furnish such number to
the seller at the time of |
31 |
| purchase. The purchaser of such machinery and
equipment and |
32 |
| tools without an active resale registration number shall |
33 |
| furnish
to the seller a certificate of exemption for each |
34 |
| transaction stating facts
establishing the exemption for that |
35 |
| transaction, which certificate shall
be available to the |
36 |
| Department for inspection or audit.
|
|
|
|
HB0412 Engrossed |
- 29 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| Except as provided in Section 2d of this Act, the rolling |
2 |
| stock exemption
applies to rolling
stock
used by an interstate
|
3 |
| carrier for hire, even just between points in Illinois, if such |
4 |
| rolling
stock transports, for hire, persons whose journeys or |
5 |
| property whose
shipments originate or terminate outside |
6 |
| Illinois.
|
7 |
| Any informal rulings, opinions or letters issued by the |
8 |
| Department in
response to an inquiry or request for any opinion |
9 |
| from any person
regarding the coverage and applicability of |
10 |
| exemption (e) to specific
devices shall be published, |
11 |
| maintained as a public record, and made
available for public |
12 |
| inspection and copying. If the informal ruling,
opinion or |
13 |
| letter contains trade secrets or other confidential
|
14 |
| information, where possible the Department shall delete such |
15 |
| information
prior to publication. Whenever such informal |
16 |
| rulings, opinions, or
letters contain any policy of general |
17 |
| applicability, the Department
shall formulate and adopt such |
18 |
| policy as a rule in accordance with the
provisions of the |
19 |
| Illinois Administrative Procedure Act.
|
20 |
| On and after July 1, 1987, no entity otherwise eligible |
21 |
| under exemption
(c) of this Section shall make tax free |
22 |
| purchases unless it has an active
exemption identification |
23 |
| number issued by the Department.
|
24 |
| "Serviceman" means any person who is engaged in the |
25 |
| occupation of
making sales of service.
|
26 |
| "Sale at Retail" means "sale at retail" as defined in the |
27 |
| Retailers'
Occupation Tax Act.
|
28 |
| "Supplier" means any person who makes sales of tangible |
29 |
| personal
property to servicemen for the purpose of resale as an |
30 |
| incident to a
sale of service.
|
31 |
| (Source: P.A. 92-484, eff. 8-23-01;
93-23, eff. 6-20-03; 93-24, |
32 |
| eff. 6-20-03; revised 8-21-03.)
|
33 |
| (35 ILCS 115/2d)
|
34 |
| Sec. 2d. Motor vehicles; use as rolling stock definition. |
35 |
| Through June
30, 2003 and beginning again on the effective date |
|
|
|
HB0412 Engrossed |
- 30 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| of this amendatory Act of the 93rd General Assembly , "use as
|
2 |
| rolling stock moving in
interstate commerce" in subsections (d) |
3 |
| and (d-1) of the definition of "sale of
service" in Section 2 |
4 |
| means for motor vehicles, as defined in Section 1-146 of
the |
5 |
| Illinois Vehicle Code, and trailers, as defined in Section |
6 |
| 1-209 of the
Illinois Vehicle Code, when on 15 or more |
7 |
| occasions in a 12-month period the
motor vehicle and trailer |
8 |
| has carried persons or property for hire in
interstate |
9 |
| commerce, even just between points in Illinois, if the motor |
10 |
| vehicle
and trailer transports persons whose journeys or |
11 |
| property whose shipments
originate or terminate outside |
12 |
| Illinois.
This definition applies to all property purchased for |
13 |
| the purpose of being
attached to those motor vehicles or |
14 |
| trailers as a part thereof.
|
15 |
| On and after July 1, 2003 and until the effective date of |
16 |
| this amendatory Act of the 93rd General Assembly , "use as |
17 |
| rolling stock
moving in interstate
commerce" in
paragraphs (d) |
18 |
| and (d-1) of the definition of "sale of service" in
Section 2 |
19 |
| occurs for motor vehicles, as defined in Section 1-146 of the
|
20 |
| Illinois Vehicle Code,
when during a 12-month period the |
21 |
| rolling stock has carried persons or property
for hire
in |
22 |
| interstate commerce for 51% of its total trips and transports |
23 |
| persons whose
journeys or
property whose shipments originate or |
24 |
| terminate outside Illinois. On and after July 1, 2003 and until |
25 |
| the effective date of this amendatory Act of the 93rd General |
26 |
| Assembly, trips that
are only
between points in Illinois will |
27 |
| not be counted as interstate trips when
calculating whether
the |
28 |
| tangible personal property qualifies for the exemption but such |
29 |
| trips will
be included
in total trips taken.
|
30 |
| (Source: P.A. 93-23, eff. 6-20-03.)
|
31 |
| Section 25. The Retailers' Occupation Tax Act is amended |
32 |
| by changing
Sections 2-5 and 2-51 as follows:
|
33 |
| (35 ILCS 120/2-5)
(from Ch. 120, par. 441-5)
|
34 |
| Sec. 2-5. Exemptions. Gross receipts from proceeds from the |
|
|
|
HB0412 Engrossed |
- 31 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| sale of
the following tangible personal property are exempt |
2 |
| from the tax imposed
by this Act:
|
3 |
| (1) Farm chemicals.
|
4 |
| (2) Farm machinery and equipment, both new and used, |
5 |
| including that
manufactured on special order, certified by the |
6 |
| purchaser to be used
primarily for production agriculture or |
7 |
| State or federal agricultural
programs, including individual |
8 |
| replacement parts for the machinery and
equipment, including |
9 |
| machinery and equipment purchased for lease,
and including |
10 |
| implements of husbandry defined in Section 1-130 of
the |
11 |
| Illinois Vehicle Code, farm machinery and agricultural |
12 |
| chemical and
fertilizer spreaders, and nurse wagons required to |
13 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
|
14 |
| but
excluding other motor vehicles required to be registered |
15 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or |
16 |
| hoop houses used for propagating, growing, or
overwintering |
17 |
| plants shall be considered farm machinery and equipment under
|
18 |
| this item (2).
Agricultural chemical tender tanks and dry boxes |
19 |
| shall include units sold
separately from a motor vehicle |
20 |
| required to be licensed and units sold mounted
on a motor |
21 |
| vehicle required to be licensed, if the selling price of the |
22 |
| tender
is separately stated.
|
23 |
| Farm machinery and equipment shall include precision |
24 |
| farming equipment
that is
installed or purchased to be |
25 |
| installed on farm machinery and equipment
including, but not |
26 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, |
27 |
| or spreaders.
Precision farming equipment includes, but is not |
28 |
| limited to,
soil testing sensors, computers, monitors, |
29 |
| software, global positioning
and mapping systems, and other |
30 |
| such equipment.
|
31 |
| Farm machinery and equipment also includes computers, |
32 |
| sensors, software, and
related equipment used primarily in the
|
33 |
| computer-assisted operation of production agriculture |
34 |
| facilities, equipment,
and activities such as, but
not limited |
35 |
| to,
the collection, monitoring, and correlation of
animal and |
36 |
| crop data for the purpose of
formulating animal diets and |
|
|
|
HB0412 Engrossed |
- 32 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| agricultural chemicals. This item (7) is exempt
from the |
2 |
| provisions of
Section 2-70.
|
3 |
| (3) Until July 1, 2003, distillation machinery and |
4 |
| equipment, sold as a
unit or kit,
assembled or installed by the |
5 |
| retailer, certified by the user to be used
only for the |
6 |
| production of ethyl alcohol that will be used for consumption
|
7 |
| as motor fuel or as a component of motor fuel for the personal |
8 |
| use of the
user, and not subject to sale or resale.
|
9 |
| (4) Until July 1, 2003, graphic arts machinery and |
10 |
| equipment, including
repair and
replacement parts, both new and |
11 |
| used, and including that manufactured on
special order or |
12 |
| purchased for lease, certified by the purchaser to be used
|
13 |
| primarily for graphic arts production.
Equipment includes |
14 |
| chemicals or
chemicals acting as catalysts but only if
the |
15 |
| chemicals or chemicals acting as catalysts effect a direct and |
16 |
| immediate
change upon a
graphic arts product.
|
17 |
| (5) A motor vehicle of the first division, a motor vehicle |
18 |
| of the second
division that is a self-contained motor vehicle |
19 |
| designed or permanently
converted to provide living quarters |
20 |
| for recreational, camping, or travel
use, with direct walk |
21 |
| through access to the living quarters from the
driver's seat, |
22 |
| or a motor vehicle of the second division that is of the van
|
23 |
| configuration designed for the transportation of not less than |
24 |
| 7 nor more
than 16 passengers, as defined in Section 1-146 of |
25 |
| the Illinois Vehicle
Code, that is used for automobile renting, |
26 |
| as defined in the Automobile
Renting Occupation and Use Tax |
27 |
| Act.
|
28 |
| (6) Personal property sold by a teacher-sponsored student |
29 |
| organization
affiliated with an elementary or secondary school |
30 |
| located in Illinois.
|
31 |
| (7) Until July 1, 2003, proceeds of that portion of the |
32 |
| selling price of
a passenger car the
sale of which is subject |
33 |
| to the Replacement Vehicle Tax.
|
34 |
| (8) Personal property sold to an Illinois county fair |
35 |
| association for
use in conducting, operating, or promoting the |
36 |
| county fair.
|
|
|
|
HB0412 Engrossed |
- 33 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| (9) Personal property sold to a not-for-profit arts
or |
2 |
| cultural organization that establishes, by proof required by |
3 |
| the Department
by
rule, that it has received an exemption under |
4 |
| Section 501(c)(3) of the
Internal Revenue Code and that is |
5 |
| organized and operated primarily for the
presentation
or |
6 |
| support of arts or cultural programming, activities, or |
7 |
| services. These
organizations include, but are not limited to, |
8 |
| music and dramatic arts
organizations such as symphony |
9 |
| orchestras and theatrical groups, arts and
cultural service |
10 |
| organizations, local arts councils, visual arts organizations,
|
11 |
| and media arts organizations.
On and after the effective date |
12 |
| of this amendatory Act of the 92nd General
Assembly, however, |
13 |
| an entity otherwise eligible for this exemption shall not
make |
14 |
| tax-free purchases unless it has an active identification |
15 |
| number issued by
the Department.
|
16 |
| (10) Personal property sold by a corporation, society, |
17 |
| association,
foundation, institution, or organization, other |
18 |
| than a limited liability
company, that is organized and |
19 |
| operated as a not-for-profit service enterprise
for the benefit |
20 |
| of persons 65 years of age or older if the personal property
|
21 |
| was not purchased by the enterprise for the purpose of resale |
22 |
| by the
enterprise.
|
23 |
| (11) Personal property sold to a governmental body, to a |
24 |
| corporation,
society, association, foundation, or institution |
25 |
| organized and operated
exclusively for charitable, religious, |
26 |
| or educational purposes, or to a
not-for-profit corporation, |
27 |
| society, association, foundation, institution,
or organization |
28 |
| that has no compensated officers or employees and that is
|
29 |
| organized and operated primarily for the recreation of persons |
30 |
| 55 years of
age or older. A limited liability company may |
31 |
| qualify for the exemption under
this paragraph only if the |
32 |
| limited liability company is organized and operated
|
33 |
| exclusively for educational purposes. On and after July 1, |
34 |
| 1987, however, no
entity otherwise eligible for this exemption |
35 |
| shall make tax-free purchases
unless it has an active |
36 |
| identification number issued by the Department.
|
|
|
|
HB0412 Engrossed |
- 34 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| (12) Tangible personal property sold to
interstate |
2 |
| carriers
for hire for use as
rolling stock moving in interstate |
3 |
| commerce or to lessors under leases of
one year or longer |
4 |
| executed or in effect at the time of purchase by
interstate |
5 |
| carriers for hire for use as rolling stock moving in interstate
|
6 |
| commerce and equipment operated by a telecommunications |
7 |
| provider, licensed as a
common carrier by the Federal |
8 |
| Communications Commission, which is permanently
installed in |
9 |
| or affixed to aircraft moving in interstate commerce.
|
10 |
| (12-5) On and after July 1, 2003 and until the effective |
11 |
| date of this amendatory Act of the 93rd General Assembly , motor
|
12 |
| vehicles of the second division
with a gross vehicle weight in |
13 |
| excess of 8,000 pounds
that
are
subject to the commercial |
14 |
| distribution fee imposed under Section 3-815.1 of
the Illinois
|
15 |
| Vehicle Code. This exemption applies to repair and replacement |
16 |
| parts added
after the
initial purchase of such a motor vehicle |
17 |
| if that motor vehicle is used in a
manner that
would qualify |
18 |
| for the rolling stock exemption otherwise provided for in this
|
19 |
| Act.
|
20 |
| (13) Proceeds from sales to owners, lessors, or
shippers of
|
21 |
| tangible personal property that is utilized by interstate |
22 |
| carriers for
hire for use as rolling stock moving in interstate |
23 |
| commerce
and equipment operated by a telecommunications |
24 |
| provider, licensed as a
common carrier by the Federal |
25 |
| Communications Commission, which is
permanently installed in |
26 |
| or affixed to aircraft moving in interstate commerce.
|
27 |
| (14) Machinery and equipment that will be used by the |
28 |
| purchaser, or a
lessee of the purchaser, primarily in the |
29 |
| process of manufacturing or
assembling tangible personal |
30 |
| property for wholesale or retail sale or
lease, whether the |
31 |
| sale or lease is made directly by the manufacturer or by
some |
32 |
| other person, whether the materials used in the process are |
33 |
| owned by
the manufacturer or some other person, or whether the |
34 |
| sale or lease is made
apart from or as an incident to the |
35 |
| seller's engaging in the service
occupation of producing |
36 |
| machines, tools, dies, jigs, patterns, gauges, or
other similar |
|
|
|
HB0412 Engrossed |
- 35 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| items of no commercial value on special order for a particular
|
2 |
| purchaser.
|
3 |
| (15) Proceeds of mandatory service charges separately |
4 |
| stated on
customers' bills for purchase and consumption of food |
5 |
| and beverages, to the
extent that the proceeds of the service |
6 |
| charge are in fact turned over as
tips or as a substitute for |
7 |
| tips to the employees who participate directly
in preparing, |
8 |
| serving, hosting or cleaning up the food or beverage function
|
9 |
| with respect to which the service charge is imposed.
|
10 |
| (16) Petroleum products sold to a purchaser if the seller
|
11 |
| is prohibited by federal law from charging tax to the |
12 |
| purchaser.
|
13 |
| (17) Tangible personal property sold to a common carrier by |
14 |
| rail or
motor that
receives the physical possession of the |
15 |
| property in Illinois and that
transports the property, or |
16 |
| shares with another common carrier in the
transportation of the |
17 |
| property, out of Illinois on a standard uniform bill
of lading |
18 |
| showing the seller of the property as the shipper or consignor |
19 |
| of
the property to a destination outside Illinois, for use |
20 |
| outside Illinois.
|
21 |
| (18) Legal tender, currency, medallions, or gold or silver |
22 |
| coinage
issued by the State of Illinois, the government of the |
23 |
| United States of
America, or the government of any foreign |
24 |
| country, and bullion.
|
25 |
| (19) Until July 1 2003, oil field exploration, drilling, |
26 |
| and production
equipment, including
(i) rigs and parts of rigs, |
27 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and |
28 |
| tubular goods, including casing and
drill strings, (iii) pumps |
29 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any |
30 |
| individual replacement part for oil field exploration,
|
31 |
| drilling, and production equipment, and (vi) machinery and |
32 |
| equipment purchased
for lease; but
excluding motor vehicles |
33 |
| required to be registered under the Illinois
Vehicle Code.
|
34 |
| (20) Photoprocessing machinery and equipment, including |
35 |
| repair and
replacement parts, both new and used, including that |
36 |
| manufactured on
special order, certified by the purchaser to be |
|
|
|
HB0412 Engrossed |
- 36 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| used primarily for
photoprocessing, and including |
2 |
| photoprocessing machinery and equipment
purchased for lease.
|
3 |
| (21) Until July 1, 2003, coal exploration, mining, |
4 |
| offhighway hauling,
processing,
maintenance, and reclamation |
5 |
| equipment, including
replacement parts and equipment, and |
6 |
| including
equipment purchased for lease, but excluding motor |
7 |
| vehicles required to be
registered under the Illinois Vehicle |
8 |
| Code.
|
9 |
| (22) Fuel and petroleum products sold to or used by an air |
10 |
| carrier,
certified by the carrier to be used for consumption, |
11 |
| shipment, or storage
in the conduct of its business as an air |
12 |
| common carrier, for a flight
destined for or returning from a |
13 |
| location or locations
outside the United States without regard |
14 |
| to previous or subsequent domestic
stopovers.
|
15 |
| (23) A transaction in which the purchase order is received |
16 |
| by a florist
who is located outside Illinois, but who has a |
17 |
| florist located in Illinois
deliver the property to the |
18 |
| purchaser or the purchaser's donee in Illinois.
|
19 |
| (24) Fuel consumed or used in the operation of ships, |
20 |
| barges, or vessels
that are used primarily in or for the |
21 |
| transportation of property or the
conveyance of persons for |
22 |
| hire on rivers bordering on this State if the
fuel is delivered |
23 |
| by the seller to the purchaser's barge, ship, or vessel
while |
24 |
| it is afloat upon that bordering river.
|
25 |
| (25) A motor vehicle sold in this State to a nonresident |
26 |
| even though the
motor vehicle is delivered to the nonresident |
27 |
| in this State, if the motor
vehicle is not to be titled in this |
28 |
| State, and if a drive-away permit
is issued to the motor |
29 |
| vehicle as provided in Section 3-603 of the Illinois
Vehicle |
30 |
| Code or if the nonresident purchaser has vehicle registration
|
31 |
| plates to transfer to the motor vehicle upon returning to his |
32 |
| or her home
state. The issuance of the drive-away permit or |
33 |
| having
the
out-of-state registration plates to be transferred |
34 |
| is prima facie evidence
that the motor vehicle will not be |
35 |
| titled in this State.
|
36 |
| (26) Semen used for artificial insemination of livestock |
|
|
|
HB0412 Engrossed |
- 37 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| for direct
agricultural production.
|
2 |
| (27) Horses, or interests in horses, registered with and |
3 |
| meeting the
requirements of any of the
Arabian Horse Club |
4 |
| Registry of America, Appaloosa Horse Club, American Quarter
|
5 |
| Horse Association, United States
Trotting Association, or |
6 |
| Jockey Club, as appropriate, used for
purposes of breeding or |
7 |
| racing for prizes.
|
8 |
| (28) Computers and communications equipment utilized for |
9 |
| any
hospital
purpose
and equipment used in the diagnosis,
|
10 |
| analysis, or treatment of hospital patients sold to a lessor |
11 |
| who leases the
equipment, under a lease of one year or longer |
12 |
| executed or in effect at the
time of the purchase, to a
|
13 |
| hospital
that has been issued an active tax exemption |
14 |
| identification number by the
Department under Section 1g of |
15 |
| this Act.
|
16 |
| (29) Personal property sold to a lessor who leases the
|
17 |
| property, under a
lease of one year or longer executed or in |
18 |
| effect at the time of the purchase,
to a governmental body
that |
19 |
| has been issued an active tax exemption identification number |
20 |
| by the
Department under Section 1g of this Act.
|
21 |
| (30) Beginning with taxable years ending on or after |
22 |
| December
31, 1995
and
ending with taxable years ending on or |
23 |
| before December 31, 2004,
personal property that is
donated for |
24 |
| disaster relief to be used in a State or federally declared
|
25 |
| disaster area in Illinois or bordering Illinois by a |
26 |
| manufacturer or retailer
that is registered in this State to a |
27 |
| corporation, society, association,
foundation, or institution |
28 |
| that has been issued a sales tax exemption
identification |
29 |
| number by the Department that assists victims of the disaster
|
30 |
| who reside within the declared disaster area.
|
31 |
| (31) Beginning with taxable years ending on or after |
32 |
| December
31, 1995 and
ending with taxable years ending on or |
33 |
| before December 31, 2004, personal
property that is used in the |
34 |
| performance of infrastructure repairs in this
State, including |
35 |
| but not limited to municipal roads and streets, access roads,
|
36 |
| bridges, sidewalks, waste disposal systems, water and sewer |
|
|
|
HB0412 Engrossed |
- 38 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| line extensions,
water distribution and purification |
2 |
| facilities, storm water drainage and
retention facilities, and |
3 |
| sewage treatment facilities, resulting from a State
or |
4 |
| federally declared disaster in Illinois or bordering Illinois |
5 |
| when such
repairs are initiated on facilities located in the |
6 |
| declared disaster area
within 6 months after the disaster.
|
7 |
| (32) Beginning July 1, 1999, game or game birds sold at a |
8 |
| "game breeding
and
hunting preserve area" or an "exotic game |
9 |
| hunting area" as those terms are used
in the
Wildlife Code or |
10 |
| at a hunting enclosure approved through rules adopted by the
|
11 |
| Department of Natural Resources. This paragraph is exempt from |
12 |
| the provisions
of
Section 2-70.
|
13 |
| (33) A motor vehicle, as that term is defined in Section |
14 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a |
15 |
| corporation, limited liability
company, society, association, |
16 |
| foundation, or institution that is determined by
the Department |
17 |
| to be organized and operated exclusively for educational
|
18 |
| purposes. For purposes of this exemption, "a corporation, |
19 |
| limited liability
company, society, association, foundation, |
20 |
| or institution organized and
operated
exclusively for |
21 |
| educational purposes" means all tax-supported public schools,
|
22 |
| private schools that offer systematic instruction in useful |
23 |
| branches of
learning by methods common to public schools and |
24 |
| that compare favorably in
their scope and intensity with the |
25 |
| course of study presented in tax-supported
schools, and |
26 |
| vocational or technical schools or institutes organized and
|
27 |
| operated exclusively to provide a course of study of not less |
28 |
| than 6 weeks
duration and designed to prepare individuals to |
29 |
| follow a trade or to pursue a
manual, technical, mechanical, |
30 |
| industrial, business, or commercial
occupation.
|
31 |
| (34) Beginning January 1, 2000, personal property, |
32 |
| including food, purchased
through fundraising events for the |
33 |
| benefit of a public or private elementary or
secondary school, |
34 |
| a group of those schools, or one or more school districts if
|
35 |
| the events are sponsored by an entity recognized by the school |
36 |
| district that
consists primarily of volunteers and includes |
|
|
|
HB0412 Engrossed |
- 39 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| parents and teachers of the
school children. This paragraph |
2 |
| does not apply to fundraising events (i) for
the benefit of |
3 |
| private home instruction or (ii) for which the fundraising
|
4 |
| entity purchases the personal property sold at the events from |
5 |
| another
individual or entity that sold the property for the |
6 |
| purpose of resale by the
fundraising entity and that profits |
7 |
| from the sale to the fundraising entity.
This paragraph is |
8 |
| exempt from the provisions of Section 2-70.
|
9 |
| (35) Beginning January 1, 2000 and through December 31, |
10 |
| 2001, new or used
automatic vending machines that prepare and |
11 |
| serve hot food and beverages,
including coffee, soup, and other |
12 |
| items, and replacement parts for these
machines. Beginning |
13 |
| January 1, 2002 and through June 30, 2003, machines
and parts |
14 |
| for machines used in
commercial, coin-operated amusement and |
15 |
| vending business if a use or occupation
tax is paid on the |
16 |
| gross receipts derived from the use of the commercial,
|
17 |
| coin-operated amusement and vending machines. This paragraph |
18 |
| is exempt from
the provisions of Section 2-70.
|
19 |
| (35-5) Food for human consumption that is to be consumed |
20 |
| off
the premises where it is sold (other than alcoholic |
21 |
| beverages, soft drinks,
and food that has been prepared for |
22 |
| immediate consumption) and prescription
and nonprescription |
23 |
| medicines, drugs, medical appliances, and insulin, urine
|
24 |
| testing materials, syringes, and needles used by diabetics, for |
25 |
| human use, when
purchased for use by a person receiving medical |
26 |
| assistance under Article 5 of
the Illinois Public Aid Code who |
27 |
| resides in a licensed long-term care facility,
as defined in |
28 |
| the Nursing Home Care Act.
|
29 |
| (36) Beginning August 2, 2001, computers and |
30 |
| communications equipment
utilized for any hospital purpose and |
31 |
| equipment used in the diagnosis,
analysis, or treatment of |
32 |
| hospital patients sold to a lessor who leases the
equipment, |
33 |
| under a lease of one year or longer executed or in effect at |
34 |
| the
time of the purchase, to a hospital that has been issued an |
35 |
| active tax
exemption identification number by the Department |
36 |
| under Section 1g of this Act.
This paragraph is exempt from the |
|
|
|
HB0412 Engrossed |
- 40 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| provisions of Section 2-70.
|
2 |
| (37) Beginning August 2, 2001, personal property sold to a |
3 |
| lessor who
leases the property, under a lease of one year or |
4 |
| longer executed or in effect
at the time of the purchase, to a |
5 |
| governmental body that has been issued an
active tax exemption |
6 |
| identification number by the Department under Section 1g
of |
7 |
| this Act. This paragraph is exempt from the provisions of |
8 |
| Section 2-70.
|
9 |
| (38) Beginning on January 1, 2002, tangible personal |
10 |
| property purchased
from an Illinois retailer by a taxpayer |
11 |
| engaged in centralized purchasing
activities in Illinois who |
12 |
| will, upon receipt of the property in Illinois,
temporarily |
13 |
| store the property in Illinois (i) for the purpose of |
14 |
| subsequently
transporting it outside this State for use or |
15 |
| consumption thereafter solely
outside this State or (ii) for |
16 |
| the purpose of being processed, fabricated, or
manufactured |
17 |
| into, attached to, or incorporated into other tangible personal
|
18 |
| property to be transported outside this State and thereafter |
19 |
| used or consumed
solely outside this State. The Director of |
20 |
| Revenue shall, pursuant to rules
adopted in accordance with the |
21 |
| Illinois Administrative Procedure Act, issue a
permit to any |
22 |
| taxpayer in good standing with the Department who is eligible |
23 |
| for
the exemption under this paragraph (38). The permit issued |
24 |
| under
this paragraph (38) shall authorize the holder, to the |
25 |
| extent and
in the manner specified in the rules adopted under |
26 |
| this Act, to purchase
tangible personal property from a |
27 |
| retailer exempt from the taxes imposed by
this Act. Taxpayers |
28 |
| shall maintain all necessary books and records to
substantiate |
29 |
| the use and consumption of all such tangible personal property
|
30 |
| outside of the State of Illinois.
|
31 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, |
32 |
| eff. 8-2-01;
92-337, eff.
8-10-01; 92-484, eff. 8-23-01; |
33 |
| 92-488, eff. 8-23-01; 92-651, eff. 7-11-02;
92-680, eff. |
34 |
| 7-16-02; 93-23, eff. 6-20-03; 93-24, eff.
6-20-03; revised |
35 |
| 9-11-03.)
|
|
|
|
HB0412 Engrossed |
- 41 - |
LRB093 04932 LCB 04991 b |
|
|
1 |
| (35 ILCS 120/2-51)
|
2 |
| Sec. 2-51. Motor vehicles; use as rolling stock definition. |
3 |
| Through
June 30, 2003 and beginning again on the effective date |
4 |
| of this amendatory Act of the 93rd General Assembly , "use
as
|
5 |
| rolling stock moving
in
interstate commerce" in
paragraphs (12) |
6 |
| and (13) of Section 2-5 means for motor vehicles, as defined in
|
7 |
| Section 1-146 of the Illinois Vehicle Code, and trailers, as |
8 |
| defined in Section
1-209 of the Illinois Vehicle Code, when on |
9 |
| 15 or more occasions in a
12-month period the motor vehicle and |
10 |
| trailer has carried persons or property
for
hire in
interstate |
11 |
| commerce, even just between points in Illinois, if the motor |
12 |
| vehicle
and trailer transports persons whose journeys or |
13 |
| property whose shipments
originate or terminate outside |
14 |
| Illinois. This
definition applies to all
property purchased for |
15 |
| the purpose of being attached to those motor vehicles or
|
16 |
| trailers as a part thereof.
|
17 |
| On and after July 1, 2003 and until the effective date of |
18 |
| this amendatory Act of the 93rd General Assembly , "use as |
19 |
| rolling stock
moving in interstate
commerce" in
paragraphs (12) |
20 |
| and (13) of Section 2-5 occurs for motor vehicles, as defined
|
21 |
| in Section 1-146 of the Illinois Vehicle Code, when during a |
22 |
| 12-month
period the
rolling stock has carried persons or |
23 |
| property for hire in interstate commerce
for 51% of
its total |
24 |
| trips and transports persons whose journeys or property whose
|
25 |
| shipments
originate or terminate outside Illinois. On and after |
26 |
| July 1, 2003 and until the effective date of this amendatory |
27 |
| Act of the 93rd General Assembly, trips that are only between |
28 |
| points
in
Illinois shall
not be counted as interstate trips |
29 |
| when calculating whether the tangible
personal property
|
30 |
| qualifies for the exemption but such trips shall be included in |
31 |
| total trips
taken.
|
32 |
| (Source: P.A. 93-23, eff. 6-20-03.)
|
33 |
| Section 30. The Illinois Vehicle Code is amended by |
34 |
| changing
Section 3-815.1 as follows:
|
|
|
|
HB0412 Engrossed |
- 42 - |
LRB093 04932 LCB 04991 b |
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| (625 ILCS 5/3-815.1)
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| Sec. 3-815.1. Commercial distribution fee. Beginning July |
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| 1, 2003 and ending on the effective date of this amendatory Act |
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| of the 93rd General Assembly , in
addition to any tax or fee |
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| imposed under this Code:
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| (a) Vehicles of the second division with a gross |
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| vehicle weight that
exceeds 8,000 pounds and that incur any |
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| tax or fee under subsection (a) of
Section 3-815 of this |
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| Code or subsection (a) of Section 3-818 of this Code, as
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| applicable, and shall pay to the Secretary of State a |
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| commercial
distribution fee, for each registration year, |
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| for the use of the public
highways, State infrastructure, |
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| and State services, in an amount equal to 36%
of the taxes |
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| and fees incurred under subsection (a) of Section 3-815 of |
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| this
Code, or subsection (a) of Section 3-818 of this Code, |
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| as applicable, rounded
up to the nearest whole dollar.
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| (b) Vehicles of the second division with a gross |
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| vehicle weight of 8,000
pounds or less and that incur any |
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| tax or fee under subsection (a) of Section
3-815 of this |
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| Code or subsection (a) of Section 3-818 of this Code, as
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| applicable, and have claimed the rolling stock exemption |
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| under the Retailers'
Occupation Tax Act, Use Tax Act, |
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| Service Occupation Tax Act, or Service Use Tax
Act shall |
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| pay to the Illinois Department of Revenue (or the Secretary |
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| of State
under an intergovernmental agreement) a |
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| commercial distribution fee, for each
registration year, |
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| for the use of the public highways, State infrastructure,
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| and State services, in an amount equal to 36% of the taxes |
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| and fees incurred
under subsection (a) of Section 3-815 of |
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| this Code or subsection (a) of Section
3-818 of this Code, |
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| as applicable, rounded up to the nearest whole dollar.
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| The fees paid under this Section shall be deposited by the |
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| Secretary of State
into the General Revenue Fund.
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| Any person who has paid the fee imposed under this Section |
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| is entitled to a refund of the amount paid. The Secretary of |
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| State shall establish a procedure by which a person who has |