093_SB0842enr

 
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 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4                             ARTICLE 10

 5        Section 10-1. Short title. This Article may be  cited  as
 6    the Aircraft Use Tax Law.

 7        Section  10-10. Definition. For the purposes of this Law,
 8    "Department" means the Department of Revenue of the State  of
 9    Illinois.

10        Section  10-15.  Tax  imposed. A tax is hereby imposed on
11    the privilege of  using,  in  this  State,  any  aircraft  as
12    defined in Section 3 of the Illinois Aeronautics Act acquired
13    by  gift, transfer, or purchase after June 30, 2003. This tax
14    does not apply (i) if the use of the  aircraft  is  otherwise
15    taxed  under  the Use Tax Act; (ii) if the aircraft is bought
16    and used by a governmental agency or a society,  association,
17    foundation, or institution organized and operated exclusively
18    for  charitable, religious, or educational purposes; (iii) if
19    the use of the aircraft is not subject to the Use Tax Act  by
20    reason  of  subsection  (a), (b), (c), (d), or (e) of Section
21    3-55 of that Act dealing with the  prevention  of  actual  or
22    likely multistate taxation; or (iv) if the transfer is a gift
23    to  a  beneficiary in the administration of an estate and the
24    beneficiary is a surviving spouse. The rate of tax  shall  be
25    6.25% of the selling price for each purchase of aircraft that
26    qualifies under this Law. For purposes of calculating the tax
27    due  under  this  Law when an aircraft is acquired by gift or
28    transfer, the tax shall be imposed on the fair  market  value
29    of  the  aircraft on the date the aircraft is acquired or the
 
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 1    date the aircraft is brought into  the  State,  whichever  is
 2    later.  Tax  shall  be  imposed  on  the  selling price of an
 3    aircraft acquired  through  purchase.  However,  the  selling
 4    price  shall  not  be  less than the fair market value of the
 5    aircraft on the date the aircraft is purchased  or  the  date
 6    the aircraft is brought into the State, whichever is later.

 7        Section  10-20.  Returns.  The  purchaser, transferee, or
 8    donee  shall  file  a  return  signed   by   the   purchaser,
 9    transferee, or donee with the Department of Revenue on a form
10    prescribed  by  the  Department.  The  return  shall  contain
11    substantially   the   following   paragraph  and  such  other
12    information as the Department may reasonably require:

13                            VERIFICATION
14        I declare that I have examined this return  and,  to  the
15    best  of  my  knowledge, it is true, correct, and complete. I
16    understand that the penalty  for  willfully  filing  a  false
17    return  shall  be a fine not to exceed $1,000 or imprisonment
18    in a penal institution other than  the  penitentiary  not  to
19    exceed one year, or both a fine and imprisonment.
20              ...............      ......................
21              Date                 Signature of purchaser,
22                                   transferee, or donee
23        The return and payment from the purchaser, transferee, or
24    donee   shall  be  submitted to the Department within 30 days
25    after the date of purchase, donation, or  other  transfer  or
26    the date the aircraft is brought into the State, whichever is
27    later.  Payment  of  tax  shall  be  a  condition to securing
28    registration of the aircraft from the Division of Aeronautics
29    of the Department of Transportation.
30        When a purchaser,  transferee,  or  donee  pays  the  tax
31    imposed  by  Section  10-15 of this Law, the Department (upon
32    request therefor from the purchaser,  transferee,  or  donee)
33    shall   issue   an  appropriate  receipt  to  the  purchaser,
 
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 1    transferee, or donee showing that he or she has paid such tax
 2    to the Department. The receipt shall be sufficient to relieve
 3    the purchaser, transferee, or donee  from  further  liability
 4    for the tax to which the receipt may refer.

 5        Section  10-25.  Filing  false  or incomplete return. Any
 6    person required to file a return under this Law who willfully
 7    files a false or incomplete return is guilty  of  a  Class  A
 8    misdemeanor.

 9        Section 10-30. Determining selling price. For the purpose
10    of  assisting  in  determining  the  validity of the "selling
11    price" reported on returns filed  with  the  Department,  the
12    Department  may  furnish the following information to persons
13    with whom the Department has contracted for  service  related
14    to making that determination: the selling price stated on the
15    return;  the  aircraft  identification  number; the year, the
16    make, and the model name  or  number  of  the  aircraft;  the
17    purchase date; and the hours of operation.

18        Section 10-35. Powers of Department. The Department shall
19    have  full  power  to  administer  and  enforce  this Law; to
20    collect all taxes, penalties, and interest due hereunder;  to
21    dispose of taxes, penalties, and interest so collected in the
22    manner  hereinafter  provided, and to determine all rights to
23    credit  memoranda  or  refunds  arising  on  account  of  the
24    erroneous payment of tax, penalty, or interest hereunder.  In
25    the  administration  of,  and  compliance with, this Law, the
26    Department and persons who are subject to this Law shall have
27    the same rights, remedies,  privileges,  immunities,  powers,
28    and   duties,   and   be  subject  to  the  same  conditions,
29    restrictions,  limitations,  penalties,  and  definitions  of
30    terms, and  employ  the  same  modes  of  procedure,  as  are
31    prescribed  in  the  Use Tax Act, as now or hereafter amended
 
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 1    (except for the provisions of Section 3-70),  which  are  not
 2    inconsistent  with this Law, as fully as if the provisions of
 3    the Use Tax Act were set forth in this Law.  In  addition  to
 4    any  other  penalties imposed under law, any person convicted
 5    of violating the provisions of this Law, shall be assessed  a
 6    fine of $1,000.

 7        Section  10-40. Payments to Local Government Distributive
 8    Fund and General Revenue  Fund.  The  Department  of  Revenue
 9    shall  each  month,  upon collecting any taxes as provided in
10    this Law, pay the money collected from the 1.25%  portion  of
11    the 6.25% rate into the Local Government Distributive Fund, a
12    special  fund  in the State treasury.  The remainder shall be
13    paid into the General Revenue Fund.

14        Section 10-45.  Rules.  The  Department  shall  have  the
15    authority to adopt such rules as are reasonable and necessary
16    to implement the provisions of this Law.

17        Section  10-905.  The  Retailers'  Occupation  Tax Act is
18    amended by changing Section 1c as follows:

19        (35 ILCS 120/1c) (from Ch. 120, par. 440c)
20        Sec. 1c. A person who  is  engaged  in  the  business  of
21    leasing or renting motor vehicles or, beginning July 1, 2003,
22    aircraft  to others and who, in connection with such business
23    sells any used motor vehicle or aircraft to a  purchaser  for
24    his  use  and  not  for  the purpose of resale, is a retailer
25    engaged in the business of selling tangible personal property
26    at retail under this Act to the extent of the  value  of  the
27    vehicle  or  aircraft  sold.  For the purpose of this Section
28    "motor vehicle" has the meaning prescribed in  Section  1-157
29    of  the  Illinois  Vehicle Code, as now or hereafter amended.
30    For the purpose of this Section "aircraft"  has  the  meaning
 
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 1    prescribed  in  Section  3  of  the Illinois Aeronautics Act.
 2    (Nothing provided  herein  shall  affect  liability  incurred
 3    under  this  Act  because of the sale at retail of such motor
 4    vehicles or aircraft to a lessor.)
 5    (Source: P.A. 80-598.)

 6        Section 10-910.  The Illinois Aeronautics Act is  amended
 7    by changing Section 42 as follows:

 8        (620 ILCS 5/42) (from Ch. 15 1/2, par. 22.42)
 9        Sec. 42.  Regulation of aircraft, airmen, and airports.
10        (a)  The  general  public interest and safety, the safety
11    of persons operating, using, or traveling in,  aircraft,  and
12    of  persons  and  property on the ground, and the interest of
13    aeronautical progress require that aircraft  operated  within
14    this  State  should  be  airworthy,  that  airmen  should  be
15    properly qualified, and that air navigation facilities should
16    be  suitable  for  the  purposes for which they are designed.
17    The purposes of this Act require that the  Department  should
18    be   enabled   to  exercise  the  powers  of  regulation  and
19    supervision  herein  granted.   The  advantage   of   uniform
20    regulation  makes  it desirable that aircraft operated within
21    this  State  should   conform   with   respect   to   design,
22    construction,  and  airworthiness to the standards prescribed
23    by  the  United  States  Government  with  respect  to  civil
24    aircraft  subject  to  its  jurisdiction  and  that   persons
25    engaging  in  aeronautics  within  this State should have the
26    qualifications   necessary   for   obtaining   and    holding
27    appropriate  airman  certificates of the United States. It is
28    desirable and right that all applicable fees and taxes  shall
29    be paid with respect to aircraft operated within this State.
30        (b)  In  light  of  the  findings  in subsection (a), the
31    Department is authorized:
32             (1)  To require the registration, every 2 years,  of
 
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 1        federal   licenses,  certificates  or  permits  of  civil
 2        aircraft engaged in air navigation within this State, and
 3        of airmen engaged in aeronautics within this  State,  and
 4        to   issue   certificates  of  such  registration.  These
 5        certificates of registration constitute the authorization
 6        of such aircraft and airmen for  operations  within  this
 7        State  to  the  extent permitted by the federal licenses,
 8        certificates or permits so registered. It shall charge  a
 9        fee,  payable every 2 years, for the registration of each
10        federal license, certificate or permit of  $10  for  each
11        airman's   certificate   and   $20   for   each  aircraft
12        certificate. It may accept as evidence of the holding  of
13        a  federal  license,  certificate  or permit the verified
14        application of the airman or the owner of  the  aircraft,
15        which  application  shall contain such information as the
16        Department may by  rule,  ruling,  regulation,  order  or
17        decision   prescribe.   The   Department's  authority  to
18        register   aircraft   or   to   issue   certificates   of
19        registration is limited as follows:
20                  (i)  Except  as   to   any   aircraft   vehicle
21             purchased  before  March 8, 1963, the Department, in
22             the case of the first registration of  any  aircraft
23             vehicle  for  any  given  owner on or after March 8,
24             1963, may not issue a  certificate  of  registration
25             with respect to any aircraft vehicle until after the
26             Department  has been satisfied that no tax under the
27             Use Tax Act, the Aircraft Use Tax Law, the Municipal
28             Use Tax Act, or the Home Rule County Use Tax Law  is
29             owing  by  reason  of  the  use  of  the  vehicle in
30             Illinois or that any tax so imposed has been paid. A
31             receipt issued under those Acts by the Department of
32             Revenue constitutes proof of payment of the tax. For
33             the purpose of this  paragraph,  "aircraft  vehicle"
34             means a single aircraft.
 
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 1                  (ii)  If  the proof of payment of the tax or of
 2             nonliability therefor is, after the issuance of  the
 3             certificate  of  registration,  found to be invalid,
 4             the Department  shall  revoke  the  certificate  and
 5             require  that  the  certificate  be  returned to the
 6             Department.
 7             (2)  To classify and approve airports and restricted
 8        landing areas and any alterations or extensions  thereof.
 9        Certificates   of   approval   issued  pursuant  to  this
10        paragraph, or pursuant to any prior law, shall be  issued
11        in  the  name  of the applicant and shall be transferable
12        upon a change of ownership or control of the  airport  or
13        restricted  landing  area  only  after  approval  of  the
14        Department. No charge or fee shall be made or imposed for
15        any  kind  of  certificate  of  approval  or  a  transfer
16        thereof.
17             (3)  To  revoke,  temporarily  or  permanently,  any
18        certificate  of  registration  of  an  aircraft or airman
19        issued by it, or to refuse to issue any such  certificate
20        of  registration, when it shall reasonably determine that
21        any aircraft is not airworthy, or that any airman:
22                  (i)  is not qualified;
23                  (ii)  has willfully violated the laws  of  this
24             State   pertaining  to  aeronautics  or  any  rules,
25             rulings, regulations, orders,  or  decisions  issued
26             pursuant  thereto, or any Federal law or any rule or
27             regulation issued pursuant thereto;
28                  (iii)  is addicted to the use of  narcotics  or
29             other habit forming drug, or to the excessive use of
30             intoxicating liquor;
31                  (iv)  has  made  any  false  statement  in  any
32             application  for  registration of a federal license,
33             certificate or permit; or
34                  (v)  has been guilty of other conduct, acts, or
 
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 1             practices dangerous to  the  public  safety  or  the
 2             safety of those engaged in aeronautics.
 3        (c)  The  Department  may  refuse to issue or may suspend
 4    the certificate of any person who fails to file a return,  or
 5    to  pay the tax, penalty or interest shown in a filed return,
 6    or to pay any final assessment of tax, penalty  or  interest,
 7    as  required  by  any  tax  Act  administered by the Illinois
 8    Department of Revenue, until such time as the requirements of
 9    any such tax Act are satisfied.
10    (Source: P.A. 92-341, eff. 8-10-01.)

11                             ARTICLE 50

12        Section 50-22.  The Use Tax Act is  amended  by  changing
13    Sections 2a, 3-5, 3-7, and 3-85 as follows:

14        (35 ILCS 105/2a) (from Ch. 120, par. 439.2a)
15        Sec. 2a. "Pollution control facilities" means any system,
16    method, construction, device or appliance appurtenant thereto
17    sold   or  used  or  intended  for  the  primary  purpose  of
18    eliminating, preventing, or reducing air and water  pollution
19    as  the  term "air pollution" or "water pollution" is defined
20    in the "Environmental Protection Act", enacted  by  the  76th
21    General  Assembly,  or  for  the primary purpose of treating,
22    pretreating, modifying or disposing of any  potential  solid,
23    liquid  or  gaseous  pollutant which if released without such
24    treatment, pretreatment, modification or  disposal  might  be
25    harmful,  detrimental  or offensive to human, plant or animal
26    life, or to property.
27        Until July 1, 2003, the purchase, employment and transfer
28    of such  tangible  personal  property  as  pollution  control
29    facilities  is  not  a  purchase,  use  or  sale  of tangible
30    personal property.
31    (Source: P.A. 76-2447.)
 
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 1        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
 2        Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
 3    personal property is exempt from the tax imposed by this Act:
 4        (1)  Personal  property  purchased  from  a  corporation,
 5    society,    association,    foundation,    institution,    or
 6    organization, other than a limited liability company, that is
 7    organized and operated as a not-for-profit service enterprise
 8    for  the  benefit  of persons 65 years of age or older if the
 9    personal property was not purchased by the enterprise for the
10    purpose of resale by the enterprise.
11        (2)  Personal  property  purchased  by  a  not-for-profit
12    Illinois county  fair  association  for  use  in  conducting,
13    operating, or promoting the county fair.
14        (3)  Personal property purchased by a not-for-profit arts
15    or  cultural organization that establishes, by proof required
16    by the Department by rule, that it has received an  exemption
17    under Section 501(c)(3) of the Internal Revenue Code and that
18    is  organized  and operated primarily for the presentation or
19    support of  arts  or  cultural  programming,  activities,  or
20    services.   These  organizations include, but are not limited
21    to, music and dramatic arts organizations  such  as  symphony
22    orchestras  and  theatrical groups, arts and cultural service
23    organizations,   local    arts    councils,    visual    arts
24    organizations, and media arts organizations. On and after the
25    effective  date  of  this  amendatory Act of the 92nd General
26    Assembly, however, an  entity  otherwise  eligible  for  this
27    exemption  shall not make tax-free purchases unless it has an
28    active identification number issued by the Department.
29        (4)  Personal property purchased by a governmental  body,
30    by   a  corporation,  society,  association,  foundation,  or
31    institution   organized   and   operated   exclusively    for
32    charitable,  religious,  or  educational  purposes,  or  by a
33    not-for-profit corporation, society, association, foundation,
34    institution, or organization that has no compensated officers
 
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 1    or employees and that is organized and operated primarily for
 2    the recreation of persons 55 years of age or older. A limited
 3    liability company may qualify for the  exemption  under  this
 4    paragraph  only if the limited liability company is organized
 5    and operated exclusively for  educational  purposes.  On  and
 6    after July 1, 1987, however, no entity otherwise eligible for
 7    this exemption shall make tax-free purchases unless it has an
 8    active   exemption   identification   number  issued  by  the
 9    Department.
10        (5)  Until July 1,  2003,  a  passenger  car  that  is  a
11    replacement  vehicle to the extent that the purchase price of
12    the car is subject to the Replacement Vehicle Tax.
13        (6)  Until July  1,  2003,  graphic  arts  machinery  and
14    equipment,  including  repair and replacement parts, both new
15    and used, and including that manufactured on  special  order,
16    certified  by  the purchaser to be used primarily for graphic
17    arts  production,  and  including  machinery  and   equipment
18    purchased   for  lease.    Equipment  includes  chemicals  or
19    chemicals acting as catalysts but only if  the  chemicals  or
20    chemicals  acting  as catalysts effect a direct and immediate
21    change upon a graphic arts product.
22        (7)  Farm chemicals.
23        (8)  Legal  tender,  currency,  medallions,  or  gold  or
24    silver  coinage  issued  by  the  State  of   Illinois,   the
25    government of the United States of America, or the government
26    of any foreign country, and bullion.
27        (9)  Personal property purchased from a teacher-sponsored
28    student   organization   affiliated  with  an  elementary  or
29    secondary school located in Illinois.
30        (10)  A motor vehicle of  the  first  division,  a  motor
31    vehicle of the second division that is a self-contained motor
32    vehicle  designed  or permanently converted to provide living
33    quarters for  recreational,  camping,  or  travel  use,  with
34    direct  walk through to the living quarters from the driver's
 
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 1    seat, or a motor vehicle of the second division  that  is  of
 2    the  van configuration designed for the transportation of not
 3    less than 7 nor  more  than  16  passengers,  as  defined  in
 4    Section  1-146 of the Illinois Vehicle Code, that is used for
 5    automobile renting, as  defined  in  the  Automobile  Renting
 6    Occupation and Use Tax Act.
 7        (11)  Farm  machinery  and  equipment, both new and used,
 8    including that manufactured on special  order,  certified  by
 9    the purchaser to be used primarily for production agriculture
10    or   State   or   federal  agricultural  programs,  including
11    individual replacement parts for the machinery and equipment,
12    including machinery and equipment purchased  for  lease,  and
13    including implements of husbandry defined in Section 1-130 of
14    the  Illinois  Vehicle  Code, farm machinery and agricultural
15    chemical and fertilizer spreaders, and nurse wagons  required
16    to  be registered under Section 3-809 of the Illinois Vehicle
17    Code, but excluding  other  motor  vehicles  required  to  be
18    registered  under  the  Illinois  Vehicle Code. Horticultural
19    polyhouses or hoop houses used for propagating,  growing,  or
20    overwintering  plants  shall be considered farm machinery and
21    equipment under this item (11). Agricultural chemical  tender
22    tanks  and dry boxes shall include units sold separately from
23    a motor vehicle  required  to  be  licensed  and  units  sold
24    mounted  on  a  motor  vehicle required to be licensed if the
25    selling price of the tender is separately stated.
26        Farm machinery  and  equipment  shall  include  precision
27    farming  equipment  that  is  installed  or  purchased  to be
28    installed on farm machinery and equipment including, but  not
29    limited   to,   tractors,   harvesters,  sprayers,  planters,
30    seeders, or spreaders. Precision farming equipment  includes,
31    but  is  not  limited  to,  soil  testing sensors, computers,
32    monitors, software, global positioning and  mapping  systems,
33    and other such equipment.
34        Farm  machinery  and  equipment  also includes computers,
 
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 1    sensors, software, and related equipment  used  primarily  in
 2    the  computer-assisted  operation  of  production agriculture
 3    facilities,  equipment,  and  activities  such  as,  but  not
 4    limited to, the collection, monitoring,  and  correlation  of
 5    animal  and  crop  data for the purpose of formulating animal
 6    diets and agricultural chemicals.  This item (11)  is  exempt
 7    from the provisions of Section 3-90.
 8        (12)  Fuel  and  petroleum products sold to or used by an
 9    air common carrier, certified by the carrier to be  used  for
10    consumption,  shipment,  or  storage  in  the  conduct of its
11    business as an air common carrier, for a flight destined  for
12    or  returning from a location or locations outside the United
13    States without regard  to  previous  or  subsequent  domestic
14    stopovers.
15        (13)  Proceeds  of  mandatory  service charges separately
16    stated on customers' bills for the purchase  and  consumption
17    of food and beverages purchased at retail from a retailer, to
18    the  extent  that  the  proceeds of the service charge are in
19    fact turned over as tips or as a substitute for tips  to  the
20    employees  who  participate  directly  in preparing, serving,
21    hosting or cleaning up the food  or  beverage  function  with
22    respect to which the service charge is imposed.
23        (14)  Until   July   1,   2003,  oil  field  exploration,
24    drilling, and production equipment, including  (i)  rigs  and
25    parts  of  rigs,  rotary  rigs, cable tool rigs, and workover
26    rigs, (ii) pipe and tubular goods, including casing and drill
27    strings, (iii) pumps and pump-jack units, (iv) storage  tanks
28    and  flow  lines, (v) any individual replacement part for oil
29    field exploration, drilling, and  production  equipment,  and
30    (vi)   machinery  and  equipment  purchased  for  lease;  but
31    excluding motor vehicles required to be registered under  the
32    Illinois Vehicle Code.
33        (15)  Photoprocessing  machinery and equipment, including
34    repair and replacement parts, both new  and  used,  including
 
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 1    that   manufactured   on  special  order,  certified  by  the
 2    purchaser to  be  used  primarily  for  photoprocessing,  and
 3    including  photoprocessing  machinery and equipment purchased
 4    for lease.
 5        (16)  Until  July  1,  2003,  coal  exploration,  mining,
 6    offhighway hauling, processing, maintenance, and  reclamation
 7    equipment,  including  replacement  parts  and equipment, and
 8    including equipment purchased for lease, but excluding  motor
 9    vehicles required to be registered under the Illinois Vehicle
10    Code.
11        (17)  Until  July  1,  2003,  distillation  machinery and
12    equipment, sold as a unit or kit, assembled or  installed  by
13    the  retailer,  certified by the user to be used only for the
14    production of ethyl alcohol that will be used for consumption
15    as motor fuel or  as  a  component  of  motor  fuel  for  the
16    personal use of the user, and not subject to sale or resale.
17        (18)  Manufacturing    and   assembling   machinery   and
18    equipment used primarily in the process of  manufacturing  or
19    assembling tangible personal property for wholesale or retail
20    sale or lease, whether that sale or lease is made directly by
21    the  manufacturer  or  by  some  other  person,  whether  the
22    materials  used  in the process are owned by the manufacturer
23    or some other person, or whether that sale or lease  is  made
24    apart  from or as an incident to the seller's engaging in the
25    service occupation of producing machines, tools, dies,  jigs,
26    patterns,  gauges,  or  other  similar items of no commercial
27    value on special order for a particular purchaser.
28        (19)  Personal  property  delivered  to  a  purchaser  or
29    purchaser's donee inside Illinois when the purchase order for
30    that personal property was  received  by  a  florist  located
31    outside  Illinois  who  has a florist located inside Illinois
32    deliver the personal property.
33        (20)  Semen used for artificial insemination of livestock
34    for direct agricultural production.
 
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 1        (21)  Horses, or interests in horses, registered with and
 2    meeting the requirements of any of  the  Arabian  Horse  Club
 3    Registry  of  America, Appaloosa Horse Club, American Quarter
 4    Horse Association, United  States  Trotting  Association,  or
 5    Jockey Club, as appropriate, used for purposes of breeding or
 6    racing for prizes.
 7        (22)  Computers and communications equipment utilized for
 8    any  hospital  purpose  and  equipment used in the diagnosis,
 9    analysis, or treatment of hospital patients  purchased  by  a
10    lessor who leases the equipment, 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    hospital    that  has  been  issued  an  active tax exemption
14    identification number by the Department under Section  1g  of
15    the  Retailers'  Occupation  Tax  Act.   If  the equipment is
16    leased in a manner that does not qualify for  this  exemption
17    or  is  used in any other non-exempt manner, the lessor shall
18    be liable for the tax imposed under this Act or  the  Service
19    Use  Tax  Act,  as  the case may be, based on the fair market
20    value of the property at  the  time  the  non-qualifying  use
21    occurs.   No  lessor  shall  collect or attempt to collect an
22    amount (however designated) that purports to  reimburse  that
23    lessor for the tax imposed by this Act or the Service Use Tax
24    Act,  as the case may be, if the tax has not been paid by the
25    lessor.  If a lessor improperly collects any such amount from
26    the lessee, the lessee shall have a legal right  to  claim  a
27    refund  of  that  amount  from the lessor.  If, however, that
28    amount is not refunded to the  lessee  for  any  reason,  the
29    lessor is liable to pay that amount to the Department.
30        (23)  Personal  property purchased by a lessor who leases
31    the property, under a lease of  one year or  longer  executed
32    or  in  effect  at  the  time  the  lessor would otherwise be
33    subject to the tax imposed by this  Act,  to  a  governmental
34    body  that  has  been  issued  an  active sales tax exemption
 
SB842 Enrolled             -15-      LRB093 02890 SJM 02906 b
 1    identification number by the Department under Section  1g  of
 2    the  Retailers' Occupation Tax Act. If the property is leased
 3    in a manner that does not qualify for this exemption or  used
 4    in  any  other  non-exempt manner, the lessor shall be liable
 5    for the tax imposed under this Act or  the  Service  Use  Tax
 6    Act,  as  the  case may be, based on the fair market value of
 7    the property at the time the non-qualifying use  occurs.   No
 8    lessor shall collect or attempt to collect an amount (however
 9    designated)  that  purports  to reimburse that lessor for the
10    tax imposed by this Act or the Service Use Tax  Act,  as  the
11    case  may be, if the tax has not been paid by the lessor.  If
12    a lessor improperly collects any such amount from the lessee,
13    the lessee shall have a legal right to claim a refund of that
14    amount from the lessor.  If,  however,  that  amount  is  not
15    refunded  to  the lessee for any reason, the lessor is liable
16    to pay that amount to the Department.
17        (24)  Beginning with taxable years  ending  on  or  after
18    December  31, 1995 and ending with taxable years ending on or
19    before December 31, 2004, personal property that  is  donated
20    for  disaster  relief  to  be  used  in  a State or federally
21    declared disaster area in Illinois or bordering Illinois by a
22    manufacturer or retailer that is registered in this State  to
23    a   corporation,   society,   association,   foundation,   or
24    institution  that  has  been  issued  a  sales  tax exemption
25    identification number by the Department that assists  victims
26    of the disaster who reside within the declared disaster area.
27        (25)  Beginning  with  taxable  years  ending on or after
28    December 31, 1995 and ending with taxable years ending on  or
29    before  December  31, 2004, personal property that is used in
30    the performance of  infrastructure  repairs  in  this  State,
31    including  but  not  limited  to municipal roads and streets,
32    access roads, bridges,  sidewalks,  waste  disposal  systems,
33    water  and  sewer  line  extensions,  water  distribution and
34    purification facilities, storm water drainage  and  retention
 
SB842 Enrolled             -16-      LRB093 02890 SJM 02906 b
 1    facilities, and sewage treatment facilities, resulting from a
 2    State or federally declared disaster in Illinois or bordering
 3    Illinois  when  such  repairs  are  initiated  on  facilities
 4    located  in  the declared disaster area within 6 months after
 5    the disaster.
 6        (26)  Beginning  July  1,  1999,  game  or   game   birds
 7    purchased  at  a "game breeding and hunting preserve area" or
 8    an "exotic game hunting area" as those terms are used in  the
 9    Wildlife  Code  or  at  a  hunting enclosure approved through
10    rules adopted by the Department of Natural  Resources.   This
11    paragraph is exempt from the provisions of Section 3-90.
12        (27)  A motor vehicle, as that term is defined in Section
13    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
14    corporation, limited liability company, society, association,
15    foundation,  or  institution  that  is  determined   by   the
16    Department  to  be  organized  and  operated  exclusively for
17    educational purposes.  For purposes  of  this  exemption,  "a
18    corporation, limited liability company, society, association,
19    foundation, or institution organized and operated exclusively
20    for  educational  purposes"  means  all  tax-supported public
21    schools, private schools that offer systematic instruction in
22    useful branches of  learning  by  methods  common  to  public
23    schools  and  that  compare  favorably  in  their  scope  and
24    intensity with the course of study presented in tax-supported
25    schools,  and  vocational  or technical schools or institutes
26    organized and operated exclusively to  provide  a  course  of
27    study  of  not  less  than  6  weeks duration and designed to
28    prepare individuals to follow a trade or to pursue a  manual,
29    technical,  mechanical,  industrial,  business, or commercial
30    occupation.
31        (28)  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
34    school, a group of those  schools,  or  one  or  more  school
 
SB842 Enrolled             -17-      LRB093 02890 SJM 02906 b
 1    districts if the events are sponsored by an entity recognized
 2    by  the school district that consists primarily of volunteers
 3    and includes parents and teachers  of  the  school  children.
 4    This  paragraph  does not apply to fundraising events (i) for
 5    the benefit of private home instruction or (ii) for which the
 6    fundraising entity purchases the personal  property  sold  at
 7    the  events  from  another individual or entity that sold the
 8    property for the purpose of resale by the fundraising  entity
 9    and  that  profits  from  the sale to the fundraising entity.
10    This paragraph is exempt from the provisions of Section 3-90.
11        (29)  Beginning January 1, 2000 and through December  31,
12    2001, new or used automatic vending machines that prepare and
13    serve  hot  food  and  beverages, including coffee, soup, and
14    other  items,  and  replacement  parts  for  these  machines.
15    Beginning January 1, 2002 and through June 30, 2003, machines
16    and parts for  machines  used  in  commercial,  coin-operated
17    amusement  and vending business if a use or occupation tax is
18    paid on the gross  receipts  derived  from  the  use  of  the
19    commercial,  coin-operated  amusement  and  vending machines.
20    This paragraph is exempt from the provisions of Section 3-90.
21        (30)  Food for human consumption that is to  be  consumed
22    off  the  premises  where  it  is  sold (other than alcoholic
23    beverages, soft drinks, and food that has been  prepared  for
24    immediate  consumption)  and prescription and nonprescription
25    medicines, drugs,  medical  appliances,  and  insulin,  urine
26    testing  materials,  syringes, and needles used by diabetics,
27    for human use, when purchased for use by a  person  receiving
28    medical assistance under Article 5 of the Illinois Public Aid
29    Code  who  resides  in a licensed long-term care facility, as
30    defined in the Nursing Home Care Act.
31        (31)  Beginning on the effective date of this  amendatory
32    Act   of   the   92nd   General   Assembly,   computers   and
33    communications  equipment  utilized  for any hospital purpose
34    and equipment used in the diagnosis, analysis,  or  treatment
 
SB842 Enrolled             -18-      LRB093 02890 SJM 02906 b
 1    of  hospital  patients  purchased  by a lessor who leases the
 2    equipment, under a lease of one year or longer executed or in
 3    effect at the time the lessor would otherwise be  subject  to
 4    the  tax  imposed  by  this  Act, to a hospital that has been
 5    issued an active tax exemption identification number  by  the
 6    Department  under Section 1g of the Retailers' Occupation Tax
 7    Act.  If the equipment is leased in a manner  that  does  not
 8    qualify  for this exemption or is used in any other nonexempt
 9    manner, the lessor shall be liable for the tax imposed  under
10    this  Act  or  the  Service  Use Tax Act, as the case may be,
11    based on the fair market value of the property  at  the  time
12    the  nonqualifying  use  occurs.   No lessor shall collect or
13    attempt  to  collect  an  amount  (however  designated)  that
14    purports to reimburse that lessor for the tax imposed by this
15    Act or the Service Use Tax Act, as the case may  be,  if  the
16    tax  has not been paid by the lessor.  If a lessor improperly
17    collects any such amount from the lessee,  the  lessee  shall
18    have  a legal right to claim a refund of that amount from the
19    lessor.  If, however, that amount  is  not  refunded  to  the
20    lessee  for  any  reason,  the  lessor  is liable to pay that
21    amount to the Department. This paragraph is exempt  from  the
22    provisions of Section 3-90.
23        (32)  Beginning  on the effective date of this amendatory
24    Act of the 92nd General Assembly, personal property purchased
25    by a lessor who leases the property, under  a  lease  of  one
26    year  or  longer executed or in effect at the time the lessor
27    would otherwise be subject to the tax imposed by this Act, to
28    a governmental body that has been issued an active sales  tax
29    exemption  identification  number  by  the  Department  under
30    Section  1g  of  the  Retailers'  Occupation Tax Act.  If the
31    property is leased in a manner that does not qualify for this
32    exemption or used in any other nonexempt manner,  the  lessor
33    shall  be  liable  for  the tax imposed under this Act or the
34    Service Use Tax Act, as the case may be, based  on  the  fair
 
SB842 Enrolled             -19-      LRB093 02890 SJM 02906 b
 1    market  value  of  the property at the time the nonqualifying
 2    use occurs.  No lessor shall collect or attempt to collect an
 3    amount (however designated) that purports to  reimburse  that
 4    lessor for the tax imposed by this Act or the Service Use Tax
 5    Act,  as the case may be, if the tax has not been paid by the
 6    lessor.  If a lessor improperly collects any such amount from
 7    the lessee, the lessee shall have a legal right  to  claim  a
 8    refund  of  that  amount  from the lessor.  If, however, that
 9    amount is not refunded to the  lessee  for  any  reason,  the
10    lessor  is liable to pay that amount to the Department.  This
11    paragraph is exempt from the provisions of Section 3-90.
12    (Source: P.A. 91-51,  eff.  6-30-99;  91-200,  eff.  7-20-99;
13    91-439,  eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644, eff.
14    8-20-99; 91-901, eff. 1-1-01;  92-35,  eff.  7-1-01;  92-227,
15    eff.  8-2-01;  92-337,  eff.  8-10-01;  92-484, eff. 8-23-01;
16    92-651, eff. 7-11-02.)

17        (35 ILCS 105/3-7)
18        Sec.  3-7.  Aggregate  manufacturing  exemption.  Through
19    June 30,  2003  December  31,  2007,  the  use  of  aggregate
20    exploration,    mining,   offhighway   hauling,   processing,
21    maintenance, and reclamation equipment, including replacement
22    parts and equipment, and including  equipment  purchased  for
23    lease, but excluding motor vehicles required to be registered
24    under  the  Illinois  Vehicle  Code,  is  exempt from the tax
25    imposed by this Act.
26    (Source: P.A. 92-603, eff. 6-28-02.)

27        (35 ILCS 105/3-85)
28        Sec. 3-85. Manufacturer's Purchase Credit. For  purchases
29    of  machinery and equipment made on and after January 1, 1995
30    and through June  30,  2003,  a  purchaser  of  manufacturing
31    machinery  and  equipment  that  qualifies  for the exemption
32    provided by paragraph (18) of Section 3-5 of this Act earns a
 
SB842 Enrolled             -20-      LRB093 02890 SJM 02906 b
 1    credit in an amount equal to a fixed percentage  of  the  tax
 2    which  would  have  been  incurred  under  this  Act on those
 3    purchases.  For  purchases  of  graphic  arts  machinery  and
 4    equipment made on or after July 1, 1996 and through June  30,
 5    2003,  a  purchaser  of  graphic arts machinery and equipment
 6    that qualifies for the exemption provided by paragraph (6) of
 7    Section 3-5 of this Act earns a credit in an amount equal  to
 8    a  fixed  percentage of the tax that would have been incurred
 9    under this Act on those  purchases.  The  credit  earned  for
10    purchases of manufacturing machinery and equipment or graphic
11    arts  machinery  and  equipment  shall  be referred to as the
12    Manufacturer's Purchase Credit. A graphic arts producer is  a
13    person  engaged  in  graphic  arts  production  as defined in
14    Section 2-30 of the Retailers' Occupation Tax Act.  Beginning
15    July 1, 1996, all references in this Section to manufacturers
16    or manufacturing shall also be deemed  to  refer  to  graphic
17    arts producers or graphic arts production.
18        The  amount  of  credit  shall be a percentage of the tax
19    that  would  have  been   incurred   on   the   purchase   of
20    manufacturing   machinery   and  equipment  or  graphic  arts
21    machinery  and  equipment  if  the  exemptions  provided   by
22    paragraph  (6)  or  paragraph (18) of Section 3-5 of this Act
23    had not been applicable. The percentage shall be as follows:
24             (1)  15% for purchases made on or  before  June  30,
25        1995.
26             (2)  25% for purchases made after June 30, 1995, and
27        on or before June 30, 1996.
28             (3)  40% for purchases made after June 30, 1996, and
29        on or before June 30, 1997.
30             (4)  50%  for  purchases  made  on  or after July 1,
31        1997.
32        A  purchaser  of  production  related  tangible  personal
33    property desiring to use the Manufacturer's  Purchase  Credit
34    shall certify to the seller prior to October 1, 2003 that the
 
SB842 Enrolled             -21-      LRB093 02890 SJM 02906 b
 1    purchaser  is  satisfying  all or part of the liability under
 2    the Use Tax Act or the Service Use Tax Act that is due on the
 3    purchase of the production related tangible personal property
 4    by use of Manufacturer's Purchase Credit. The  Manufacturer's
 5    Purchase Credit certification must be dated and shall include
 6    the  name  and  address  of  the  purchaser,  the purchaser's
 7    registration number, if registered, the credit being applied,
 8    and a statement that the State Use Tax  or  Service  Use  Tax
 9    liability  is  being  satisfied  with  the  manufacturer's or
10    graphic  arts   producer's   accumulated   purchase   credit.
11    Certification  may be incorporated into the manufacturer's or
12    graphic  arts  producer's  purchase   order.   Manufacturer's
13    Purchase Credit certification provided by the manufacturer or
14    graphic arts producer prior to October 1, 2003 may be used to
15    satisfy  the  retailer's  or serviceman's liability under the
16    Retailers' Occupation Tax Act or Service Occupation  Tax  Act
17    for  the  credit claimed, not to exceed 6.25% of the receipts
18    subject to tax from a qualifying purchase, but  only  if  the
19    retailer  or  serviceman  reports the Manufacturer's Purchase
20    Credit  claimed   as   required   by   the   Department.    A
21    Manufacturer's  Purchase  Credit  reported on any original or
22    amended return filed under this Act after  October  20,  2003
23    shall  be  disallowed.   The  Manufacturer's  Purchase Credit
24    earned by purchase  of  exempt  manufacturing  machinery  and
25    equipment  or  graphic  arts  machinery  and  equipment  is a
26    non-transferable  credit.  A  manufacturer  or  graphic  arts
27    producer  that  enters  into   a   contract   involving   the
28    installation  of  tangible personal property into real estate
29    within a manufacturing or graphic  arts  production  facility
30    may,  prior  to  October  1,  2003,  authorize a construction
31    contractor to utilize credit accumulated by the  manufacturer
32    or  graphic  arts  producer to purchase the tangible personal
33    property. A manufacturer or graphic arts  producer  intending
34    to  use accumulated credit to purchase such tangible personal
 
SB842 Enrolled             -22-      LRB093 02890 SJM 02906 b
 1    property shall execute a  written  contract  authorizing  the
 2    contractor  to  utilize  a specified dollar amount of credit.
 3    The contractor shall furnish, prior to October 1,  2003,  the
 4    supplier  with  the manufacturer's or graphic arts producer's
 5    name, registration or resale number, and a statement  that  a
 6    specific  amount of the Use Tax or Service Use Tax liability,
 7    not to exceed 6.25% of the selling price, is being  satisfied
 8    with  the  credit.  The manufacturer or graphic arts producer
 9    shall remain liable to timely report all information required
10    by the annual Report of Manufacturer's Purchase  Credit  Used
11    for all credit utilized by a construction contractor.
12        The Manufacturer's Purchase Credit may be used to satisfy
13    liability  under  the  Use Tax Act or the Service Use Tax Act
14    due on the purchase of production related  tangible  personal
15    property (including purchases by a manufacturer, by a graphic
16    arts  producer, or by a lessor who rents or leases the use of
17    the property to a manufacturer or graphic arts producer) that
18    does not otherwise qualify for  the  manufacturing  machinery
19    and  equipment  exemption  or  the graphic arts machinery and
20    equipment exemption. "Production  related  tangible  personal
21    property"  means  (i)  all tangible personal property used or
22    consumed by the purchaser  in  a  manufacturing  facility  in
23    which  a  manufacturing  process described in Section 2-45 of
24    the Retailers' Occupation  Tax  Act  takes  place,  including
25    tangible  personal  property purchased for incorporation into
26    real estate within a manufacturing  facility  and  including,
27    but  not  limited  to,  tangible  personal  property  used or
28    consumed  in  activities  such  as   preproduction   material
29    handling,  receiving,  quality  control,  inventory  control,
30    storage,    staging,   and   packaging   for   shipping   and
31    transportation purposes; (ii) all tangible personal  property
32    used  or consumed by the purchaser in a graphic arts facility
33    in which graphic arts production as described in Section 2-30
34    of the Retailers' Occupation Tax Act takes  place,  including
 
SB842 Enrolled             -23-      LRB093 02890 SJM 02906 b
 1    tangible  personal  property purchased for incorporation into
 2    real estate within a graphic arts facility and including, but
 3    not limited  to,  all  tangible  personal  property  used  or
 4    consumed  in  activities  such as graphic arts preliminary or
 5    pre-press  production,  pre-production   material   handling,
 6    receiving,   quality  control,  inventory  control,  storage,
 7    staging, sorting, labeling,  mailing,  tying,  wrapping,  and
 8    packaging;  and (iii)  all tangible personal property used or
 9    consumed by  the  purchaser  for  research  and  development.
10    "Production  related  tangible  personal  property"  does not
11    include  (i)  tangible  personal  property  used,  within  or
12    without  a  manufacturing  facility,  in  sales,  purchasing,
13    accounting,   fiscal   management,    marketing,    personnel
14    recruitment  or  selection,  or  landscaping or (ii) tangible
15    personal property required to be titled or registered with  a
16    department,  agency,  or  unit  of  federal,  state, or local
17    government.  The Manufacturer's Purchase Credit may be  used,
18    prior  to  October 1, 2003, to satisfy the tax arising either
19    from the purchase of machinery  and  equipment  on  or  after
20    January 1, 1995 for which the exemption provided by paragraph
21    (18)  of  Section 3-5 of this Act was erroneously claimed, or
22    the purchase of machinery and equipment on or after  July  1,
23    1996  for  which  the  exemption provided by paragraph (6) of
24    Section 3-5 of this Act was erroneously claimed, but  not  in
25    satisfaction  of penalty, if any, and interest for failure to
26    pay the tax when  due.  A  purchaser  of  production  related
27    tangible  personal  property  who is required to pay Illinois
28    Use Tax or Service Use Tax on the purchase  directly  to  the
29    Department  may,  prior  to  October  1,  2003,  utilize  the
30    Manufacturer's  Purchase  Credit  in  satisfaction of the tax
31    arising from  that  purchase,  but  not  in  satisfaction  of
32    penalty and interest. A purchaser who uses the Manufacturer's
33    Purchase   Credit   to   purchase  property  which  is  later
34    determined not to be  production  related  tangible  personal
 
SB842 Enrolled             -24-      LRB093 02890 SJM 02906 b
 1    property  may be liable for tax, penalty, and interest on the
 2    purchase of that property as of  the  date  of  purchase  but
 3    shall  be  entitled  to  use  the  disallowed  Manufacturer's
 4    Purchase  Credit,  so  long as it has not expired and is used
 5    prior  to  October  1,  2003,  on  qualifying  purchases   of
 6    production  related tangible personal property not previously
 7    subject to credit usage. The Manufacturer's  Purchase  Credit
 8    earned by a manufacturer or graphic arts producer expires the
 9    last  day  of the second calendar year following the calendar
10    year in which the credit arose.  No  Manufacturer's  Purchase
11    Credit  may  be  used  after September 30, 2003 regardless of
12    when that credit was earned.
13        A purchaser earning Manufacturer's Purchase Credit  shall
14    sign  and  file  an  annual Report of Manufacturer's Purchase
15    Credit Earned for each calendar year no later than  the  last
16    day of the sixth month following the calendar year in which a
17    Manufacturer's  Purchase  Credit  is  earned.   A  Report  of
18    Manufacturer's Purchase Credit Earned shall be filed on forms
19    as  prescribed or approved by the Department and shall state,
20    for each month of the calendar year: (i) the  total  purchase
21    price  of  all  purchases  of exempt manufacturing or graphic
22    arts machinery on which the credit was earned; (ii) the total
23    State Use Tax or Service Use Tax which would have been due on
24    those items; (iii)  the  percentage  used  to  calculate  the
25    amount  of  credit  earned; (iv) the amount of credit earned;
26    and  (v)  such  other  information  as  the  Department   may
27    reasonably   require.   A  purchaser  earning  Manufacturer's
28    Purchase Credit shall maintain records which identify, as  to
29    each  purchase of manufacturing or graphic arts machinery and
30    equipment  on  which  the  purchaser  earned   Manufacturer's
31    Purchase Credit, the vendor (including, if applicable, either
32    the   vendor's   registration   number  or  Federal  Employer
33    Identification Number), the purchase price, and the amount of
34    Manufacturer's Purchase Credit earned on each purchase.
 
SB842 Enrolled             -25-      LRB093 02890 SJM 02906 b
 1        A purchaser using Manufacturer's  Purchase  Credit  shall
 2    sign  and  file  an  annual Report of Manufacturer's Purchase
 3    Credit Used for each calendar year no later than the last day
 4    of the sixth month following the calendar  year  in  which  a
 5    Manufacturer's   Purchase   Credit   is  used.  A  Report  of
 6    Manufacturer's Purchase Credit Used shall be filed  on  forms
 7    as  prescribed or approved by the Department and shall state,
 8    for each month of the calendar year:  (i) the total  purchase
 9    price   of  production  related  tangible  personal  property
10    purchased from Illinois suppliers; (ii)  the  total  purchase
11    price   of  production  related  tangible  personal  property
12    purchased from out-of-state suppliers; (iii) the total amount
13    of credit  used  during  such  month;  and  (iv)  such  other
14    information  as  the  Department  may  reasonably require.  A
15    purchaser using Manufacturer's Purchase Credit shall maintain
16    records that identify, as  to  each  purchase  of  production
17    related  tangible  personal  property  on which the purchaser
18    used Manufacturer's Purchase Credit, the  vendor  (including,
19    if  applicable,  either  the  vendor's registration number or
20    Federal Employer Identification Number), the purchase  price,
21    and the amount of Manufacturer's Purchase Credit used on each
22    purchase.
23        No  annual  report  shall  be filed before May 1, 1996 or
24    after June 30, 2004. A purchaser that fails to file an annual
25    Report of Manufacturer's Purchase Credit Earned or an  annual
26    Report of Manufacturer's Purchase Credit Used by the last day
27    of  the  sixth  month  following the end of the calendar year
28    shall forfeit all Manufacturer's  Purchase  Credit  for  that
29    calendar  year unless it establishes that its failure to file
30    was due to reasonable cause. Manufacturer's  Purchase  Credit
31    reports  may  be  amended  to  report  and  claim  credit  on
32    qualifying  purchases  not  previously  reported  at any time
33    before  the  credit  would  have  expired,  unless  both  the
34    Department and the purchaser have agreed to an  extension  of
 
SB842 Enrolled             -26-      LRB093 02890 SJM 02906 b
 1    the  statute  of  limitations for the issuance of a notice of
 2    tax liability as provided in  Section  4  of  the  Retailers'
 3    Occupation  Tax Act. If the time for assessment or refund has
 4    been extended, then amended reports for a calendar  year  may
 5    be  filed  at any time prior to the date to which the statute
 6    of limitations for the calendar year or portion  thereof  has
 7    been extended. No Manufacturer's Purchase Credit report filed
 8    with  the  Department  for  periods  prior to January 1, 1995
 9    shall be approved. Manufacturer's Purchase Credit claimed  on
10    an  amended  report  may  be  used, until October 1, 2003, to
11    satisfy tax liability under the Use Tax Act  or  the  Service
12    Use Tax Act (i) on qualifying purchases of production related
13    tangible  personal  property  made after the date the amended
14    report is  filed  or  (ii)  assessed  by  the  Department  on
15    qualifying  purchases of production related tangible personal
16    property made in the case  of  manufacturers    on  or  after
17    January  1, 1995, or in the case of graphic arts producers on
18    or after July 1, 1996.
19        If the purchaser is not the  manufacturer  or  a  graphic
20    arts producer, but rents or leases the use of the property to
21    a  manufacturer  or  graphic arts producer, the purchaser may
22    earn, report, and use Manufacturer's Purchase Credit  in  the
23    same manner as a manufacturer or graphic arts producer.
24        A  purchaser  shall not be entitled to any Manufacturer's
25    Purchase Credit  for  a  purchase  that  is  required  to  be
26    reported  and  is  not  timely  reported  as provided in this
27    Section.  A purchaser remains liable for (i) any tax that was
28    satisfied by use of a Manufacturer's Purchase Credit,  as  of
29    the  date  of purchase, if that use is not timely reported as
30    required  in  this  Section  and  (ii)  for  any   applicable
31    penalties  and  interest for failing to pay the tax when due.
32    No Manufacturer's Purchase Credit may be used after September
33    30, 2003 to satisfy any tax liability imposed under this Act,
34    including any audit liability.
 
SB842 Enrolled             -27-      LRB093 02890 SJM 02906 b
 1    (Source: P.A. 88-547,  eff.  6-30-94;  89-89,  eff.  6-30-95;
 2    89-235, eff. 8-4-95; 89-531, eff. 7-19-96.)

 3        Section  50-23.  The  Service  Use  Tax Act is amended by
 4    changing Sections 2, 2a, 3-5, 3-7, and 3-70 as follows:

 5        (35 ILCS 110/2) (from Ch. 120, par. 439.32)
 6        Sec. 2. "Use" means the exercise by  any  person  of  any
 7    right  or  power  over tangible personal property incident to
 8    the ownership of that property, but does not include the sale
 9    or use for demonstration by him of that property in any  form
10    as  tangible  personal  property  in  the  regular  course of
11    business. "Use" does not mean the  interim  use  of  tangible
12    personal  property nor the physical incorporation of tangible
13    personal property, as  an  ingredient  or  constituent,  into
14    other  tangible  personal  property, (a) which is sold in the
15    regular  course  of  business  or  (b)   which   the   person
16    incorporating  such  ingredient  or  constituent  therein has
17    undertaken at the time  of  such  purchase  to  cause  to  be
18    transported  in  interstate  commerce to destinations outside
19    the State of Illinois.
20        "Purchased from a serviceman" means  the  acquisition  of
21    the  ownership  of,  or  title to, tangible personal property
22    through a sale of service.
23        "Purchaser" means any  person  who,  through  a  sale  of
24    service, acquires the ownership of, or title to, any tangible
25    personal property.
26        "Cost   price"   means  the  consideration  paid  by  the
27    serviceman for a purchase valued in money,  whether  paid  in
28    money or otherwise, including cash, credits and services, and
29    shall  be  determined without any deduction on account of the
30    supplier's cost of the property sold or  on  account  of  any
31    other  expense  incurred  by  the supplier. When a serviceman
32    contracts out part or all of the  services  required  in  his
 
SB842 Enrolled             -28-      LRB093 02890 SJM 02906 b
 1    sale  of service, it shall be presumed that the cost price to
 2    the serviceman of the property transferred to him or  her  by
 3    his   or   her   subcontractor   is   equal  to  50%  of  the
 4    subcontractor's charges to the serviceman in the  absence  of
 5    proof  of the consideration paid by the subcontractor for the
 6    purchase of such property.
 7        "Selling price" means the consideration for a sale valued
 8    in money whether received in money  or  otherwise,  including
 9    cash,  credits  and  service, and shall be determined without
10    any deduction on account of  the  serviceman's  cost  of  the
11    property  sold,  the cost of materials used, labor or service
12    cost or any other expense whatsoever, but  does  not  include
13    interest or finance charges which appear as separate items on
14    the bill of sale or sales contract nor charges that are added
15    to  prices  by  sellers  on  account  of the seller's duty to
16    collect, from the purchaser, the tax that is imposed by  this
17    Act.
18        "Department" means the Department of Revenue.
19        "Person" means any natural individual, firm, partnership,
20    association,  joint  stock  company, joint venture, public or
21    private  corporation,  limited  liability  company,  and  any
22    receiver, executor, trustee, guardian or other representative
23    appointed by order of any court.
24        "Sale of service" means any transaction except:
25             (1)  a retail sale  of  tangible  personal  property
26        taxable  under the Retailers' Occupation Tax Act or under
27        the Use Tax Act.
28             (2)  a sale of tangible personal  property  for  the
29        purpose  of  resale made in compliance with Section 2c of
30        the Retailers' Occupation Tax Act.
31             (3)  except  as  hereinafter  provided,  a  sale  or
32        transfer of tangible personal property as an incident  to
33        the rendering of service for or by any governmental body,
34        or  for  or  by  any  corporation,  society, association,
 
SB842 Enrolled             -29-      LRB093 02890 SJM 02906 b
 1        foundation  or   institution   organized   and   operated
 2        exclusively  for  charitable,  religious  or  educational
 3        purposes  or  any  not-for-profit  corporation,  society,
 4        association,   foundation,  institution  or  organization
 5        which has no compensated officers or employees and  which
 6        is organized and operated primarily for the recreation of
 7        persons  55  years  of  age or older. A limited liability
 8        company  may  qualify  for  the  exemption   under   this
 9        paragraph  only  if  the  limited  liability  company  is
10        organized   and   operated  exclusively  for  educational
11        purposes.
12             (4)  a  sale  or  transfer  of   tangible   personal
13        property  as  an incident to the rendering of service for
14        interstate carriers for hire for  use  as  rolling  stock
15        moving in interstate commerce or by lessors under a lease
16        of  one year or longer, executed or in effect at the time
17        of purchase of personal property, to interstate  carriers
18        for  hire  for  use as rolling stock moving in interstate
19        commerce so long as so used by such  interstate  carriers
20        for  hire, and equipment operated by a telecommunications
21        provider, licensed as a common  carrier  by  the  Federal
22        Communications Commission, which is permanently installed
23        in or affixed to aircraft moving in interstate commerce.
24             (4a)  a   sale  or  transfer  of  tangible  personal
25        property as an incident to the rendering of  service  for
26        owners,   lessors,   or  shippers  of  tangible  personal
27        property which is utilized  by  interstate  carriers  for
28        hire  for  use  as  rolling  stock  moving  in interstate
29        commerce so long as so used by  interstate  carriers  for
30        hire,  and  equipment  operated  by  a telecommunications
31        provider, licensed as a common  carrier  by  the  Federal
32        Communications Commission, which is permanently installed
33        in or affixed to aircraft moving in interstate commerce.
34             (5)  a  sale  or transfer of machinery and equipment
 
SB842 Enrolled             -30-      LRB093 02890 SJM 02906 b
 1        used primarily in the process  of  the  manufacturing  or
 2        assembling,  either  in an existing, an expanded or a new
 3        manufacturing facility, of tangible personal property for
 4        wholesale or retail sale or lease, whether such  sale  or
 5        lease  is  made  directly  by the manufacturer or by some
 6        other person, whether the materials used in  the  process
 7        are  owned  by  the manufacturer or some other person, or
 8        whether such sale or lease is made apart from  or  as  an
 9        incident to the seller's engaging in a service occupation
10        and  the  applicable  tax is a Service Use Tax or Service
11        Occupation  Tax,  rather  than  Use  Tax  or   Retailers'
12        Occupation Tax.
13             (5a)  the  repairing,  reconditioning or remodeling,
14        for a  common  carrier  by  rail,  of  tangible  personal
15        property  which  belongs to such carrier for hire, and as
16        to which such carrier receives the physical possession of
17        the repaired, reconditioned or remodeled item of tangible
18        personal property in Illinois,  and  which  such  carrier
19        transports,  or shares with another common carrier in the
20        transportation of such property, out  of  Illinois  on  a
21        standard  uniform  bill  of lading showing the person who
22        repaired, reconditioned or remodeled the  property  to  a
23        destination outside Illinois, for use outside Illinois.
24             (5b)  a   sale  or  transfer  of  tangible  personal
25        property which is  produced  by  the  seller  thereof  on
26        special  order  in  such  a  way  as  to  have  made  the
27        applicable  tax the Service Occupation Tax or the Service
28        Use Tax, rather than the Retailers' Occupation Tax or the
29        Use Tax, for an interstate carrier by rail which receives
30        the physical possession of such property in Illinois, and
31        which transports such property, or  shares  with  another
32        common  carrier  in  the transportation of such property,
33        out of Illinois on a  standard  uniform  bill  of  lading
34        showing  the  seller  of  the  property as the shipper or
 
SB842 Enrolled             -31-      LRB093 02890 SJM 02906 b
 1        consignor of  such  property  to  a  destination  outside
 2        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
 5        kit  and  assembled  or  installed by the retailer, which
 6        machinery and equipment is certified by the  user  to  be
 7        used  only  for the production of ethyl alcohol that will
 8        be used for consumption as motor fuel or as  a  component
 9        of  motor  fuel for the personal use of such user and not
10        subject to sale or resale.
11             (7)  at the election of any serviceman not  required
12        to be otherwise registered as a retailer under Section 2a
13        of  the  Retailers'  Occupation  Tax  Act,  made for each
14        fiscal year sales  of  service  in  which  the  aggregate
15        annual   cost   price   of   tangible  personal  property
16        transferred as an incident to the  sales  of  service  is
17        less   than  35%,  or  75%  in  the  case  of  servicemen
18        transferring prescription drugs or servicemen engaged  in
19        graphic  arts  production,  of the aggregate annual total
20        gross receipts from all sales of service. The purchase of
21        such tangible personal property by the  serviceman  shall
22        be subject to tax under the Retailers' Occupation Tax Act
23        and the Use Tax Act. However, if a primary serviceman who
24        has   made  the  election  described  in  this  paragraph
25        subcontracts service work to a secondary  serviceman  who
26        has  also  made the election described in this paragraph,
27        the primary serviceman does not incur a Use Tax liability
28        if the secondary serviceman (i) has paid or will pay  Use
29        Tax  on  his  or  her cost price of any tangible personal
30        property transferred to the primary serviceman  and  (ii)
31        certifies that fact in writing to the primary 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.
 
SB842 Enrolled             -32-      LRB093 02890 SJM 02906 b
 1        Exemption  (5) also includes machinery and equipment used
 2    in the general maintenance or repair of such exempt machinery
 3    and equipment or for in-house manufacture of exempt machinery
 4    and equipment. For the purposes of  exemption  (5),  each  of
 5    these   terms   shall   have  the  following  meanings:   (1)
 6    "manufacturing process" shall  mean  the  production  of  any
 7    article  of  tangible personal property, whether such article
 8    is a finished product or an article for use in the process of
 9    manufacturing or assembling a different article  of  tangible
10    personal   property,   by  procedures  commonly  regarded  as
11    manufacturing, processing,  fabricating,  or  refining  which
12    changes  some  existing material or materials into a material
13    with a different  form,  use  or  name.   In  relation  to  a
14    recognized  integrated  business  composed  of  a  series  of
15    operations  which  collectively  constitute manufacturing, or
16    individually   constitute   manufacturing   operations,   the
17    manufacturing process shall be deemed to  commence  with  the
18    first  operation  or  stage  of production in the series, and
19    shall not be deemed to end until the completion of the  final
20    product  in  the last operation or stage of production in the
21    series;  and  further,  for  purposes   of   exemption   (5),
22    photoprocessing  is  deemed  to be a manufacturing process of
23    tangible personal property for wholesale or retail sale;  (2)
24    "assembling process" shall mean the production of any article
25    of  tangible  personal  property,  whether  such article is a
26    finished product or an article for  use  in  the  process  of
27    manufacturing  or  assembling a different article of tangible
28    personal property, by the combination of  existing  materials
29    in  a manner commonly regarded as assembling which results in
30    a material of a different form, use or name; (3)  "machinery"
31    shall  mean  major mechanical machines or major components of
32    such machines contributing to a manufacturing  or  assembling
33    process;  and  (4)  "equipment" shall include any independent
34    device or tool separate from any machinery but  essential  to
 
SB842 Enrolled             -33-      LRB093 02890 SJM 02906 b
 1    an  integrated  manufacturing  or assembly process; including
 2    computers  used  primarily  in  a   manufacturer's   computer
 3    assisted  design,  computer  assisted manufacturing (CAD/CAM)
 4    system; or any subunit or assembly comprising a component  of
 5    any  machinery  or  auxiliary, adjunct or attachment parts of
 6    machinery, such as tools, dies, jigs, fixtures, patterns  and
 7    molds; or any parts which require periodic replacement in the
 8    course of normal operation; but shall not include hand tools.
 9    Equipment includes chemicals or chemicals acting as catalysts
10    but  only  if  the chemicals or chemicals acting as catalysts
11    effect a direct and immediate change  upon  a  product  being
12    manufactured  or  assembled  for  wholesale or retail sale or
13    lease. The purchaser of such machinery and equipment who  has
14    an  active  resale  registration  number  shall  furnish such
15    number to the seller at the time of  purchase.  The  user  of
16    such  machinery  and  equipment  and  tools without an active
17    resale registration number shall  prepare  a  certificate  of
18    exemption for each transaction stating facts establishing the
19    exemption  for  that  transaction, which certificate shall be
20    available to the Department for  inspection  or  audit.   The
21    Department shall prescribe the form of the certificate.
22        Any  informal  rulings, opinions or letters issued by the
23    Department in response to  an  inquiry  or  request  for  any
24    opinion   from   any   person   regarding  the  coverage  and
25    applicability of exemption (5) to specific devices  shall  be
26    published,  maintained as a public record, and made available
27    for public inspection and copying.  If the  informal  ruling,
28    opinion   or   letter   contains   trade   secrets  or  other
29    confidential information, where possible the Department shall
30    delete such information prior to publication.  Whenever  such
31    informal  rulings, opinions, or letters contain any policy of
32    general applicability, the  Department  shall  formulate  and
33    adopt such policy as a rule in accordance with the provisions
34    of the Illinois Administrative Procedure Act.
 
SB842 Enrolled             -34-      LRB093 02890 SJM 02906 b
 1        On  and  after July 1, 1987, no entity otherwise eligible
 2    under exemption (3) of  this  Section  shall  make  tax  free
 3    purchases  unless  it  has an active exemption identification
 4    number issued by the Department.
 5        The purchase, employment and transfer  of  such  tangible
 6    personal  property  as  newsprint  and  ink  for  the primary
 7    purpose of conveying news (with or without other information)
 8    is not a purchase, use or sale  of  service  or  of  tangible
 9    personal property within the meaning of this Act.
10        "Serviceman"  means  any  person  who  is  engaged in the
11    occupation of making sales of service.
12        "Sale at retail" means "sale at retail" as defined in the
13    Retailers' Occupation Tax Act.
14        "Supplier" means any person who makes sales  of  tangible
15    personal  property to servicemen for the purpose of resale as
16    an incident to a sale of service.
17        "Serviceman maintaining  a  place  of  business  in  this
18    State", or any like term, means and includes any serviceman:
19             1.  having   or   maintaining   within  this  State,
20        directly or by  a  subsidiary,  an  office,  distribution
21        house, sales house, warehouse or other place of business,
22        or  any  agent  or  other representative operating within
23        this State under the authority of the serviceman  or  its
24        subsidiary,   irrespective   of  whether  such  place  of
25        business or agent or other representative is located here
26        permanently or temporarily, or whether such serviceman or
27        subsidiary is licensed to do business in this State;
28             2.  soliciting orders for tangible personal property
29        by means of a telecommunication  or  television  shopping
30        system  (which  utilizes  toll  free  numbers)  which  is
31        intended  by  the  retailer  to  be  broadcast  by  cable
32        television  or  other means of broadcasting, to consumers
33        located in this State;
34             3.  pursuant to a contract  with  a  broadcaster  or
 
SB842 Enrolled             -35-      LRB093 02890 SJM 02906 b
 1        publisher  located  in  this State, soliciting orders for
 2        tangible personal property by means of advertising  which
 3        is  disseminated  primarily  to consumers located in this
 4        State and only secondarily to bordering jurisdictions;
 5             4.  soliciting orders for tangible personal property
 6        by  mail  if  the  solicitations  are   substantial   and
 7        recurring  and if the retailer benefits from any banking,
 8        financing,   debt   collection,   telecommunication,   or
 9        marketing activities occurring in this State or  benefits
10        from   the   location   in   this   State  of  authorized
11        installation, servicing, or repair facilities;
12             5.  being owned or controlled by the same  interests
13        which own or control any retailer engaging in business in
14        the same or similar line of business in this State;
15             6.  having  a franchisee or licensee operating under
16        its trade name if the franchisee or licensee is  required
17        to collect the tax under this Section;
18             7.  pursuant  to  a contract with a cable television
19        operator located in this  State,  soliciting  orders  for
20        tangible  personal property by means of advertising which
21        is transmitted or distributed  over  a  cable  television
22        system in this State; or
23             8.  engaging   in   activities  in  Illinois,  which
24        activities in the state  in  which  the  supply  business
25        engaging  in  such activities is located would constitute
26        maintaining a place of business in that state.
27    (Source: P.A. 91-51, eff. 6-30-99; 92-484, eff. 8-23-01.)

28        (35 ILCS 110/2a) (from Ch. 120, par. 439.32a)
29        Sec. 2a. "Pollution control facilities" means any system,
30    method, construction, device or appliance appurtenant thereto
31    used in this State acquired as an incident to the purchase of
32    a service from  a  serviceman  for  the  primary  purpose  of
33    eliminating,  preventing, or reducing air and water pollution
 
SB842 Enrolled             -36-      LRB093 02890 SJM 02906 b
 1    as the term "air pollution" or "water pollution"  is  defined
 2    in  the  "Environmental  Protection Act", enacted by the 76th
 3    General Assembly, or for the  primary  purpose  of  treating,
 4    pretreating,  modifying  or disposing of any potential solid,
 5    liquid or gaseous pollutant which if  released  without  such
 6    treatment,  pretreatment,  modification  or disposal might be
 7    harmful, detrimental or offensive to human, plant  or  animal
 8    life, or to property.
 9        Until  July 1, 2003, the purchase, employment or transfer
10    of such  tangible  personal  property  as  pollution  control
11    facilities  is  not  a purchase, use or sale of service or of
12    tangible personal property within the meaning of this Act.
13    (Source: P.A. 76-2248.)

14        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
15        Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
16    personal property is exempt from the tax imposed by this Act:
17        (1)  Personal  property  purchased  from  a  corporation,
18    society,    association,    foundation,    institution,    or
19    organization, other than a limited liability company, that is
20    organized and operated as a not-for-profit service enterprise
21    for  the  benefit  of persons 65 years of age or older if the
22    personal property was not purchased by the enterprise for the
23    purpose of resale by the enterprise.
24        (2)  Personal property purchased by a non-profit Illinois
25    county fair association for use in conducting, operating,  or
26    promoting the county fair.
27        (3)  Personal property purchased by a not-for-profit arts
28    or  cultural organization that establishes, by proof required
29    by the Department by rule, that it has received an  exemption
30    under Section 501(c)(3) of the Internal Revenue Code and that
31    is  organized  and operated primarily for the presentation or
32    support of  arts  or  cultural  programming,  activities,  or
33    services.   These  organizations include, but are not limited
 
SB842 Enrolled             -37-      LRB093 02890 SJM 02906 b
 1    to, music and dramatic arts organizations  such  as  symphony
 2    orchestras  and  theatrical groups, arts and cultural service
 3    organizations,   local    arts    councils,    visual    arts
 4    organizations, and media arts organizations. On and after the
 5    effective  date  of  this  amendatory Act of the 92nd General
 6    Assembly, however, an  entity  otherwise  eligible  for  this
 7    exemption  shall not make tax-free purchases unless it has an
 8    active identification number issued by the Department.
 9        (4)  Legal  tender,  currency,  medallions,  or  gold  or
10    silver  coinage  issued  by  the  State  of   Illinois,   the
11    government of the United States of America, or the government
12    of any foreign country, and bullion.
13        (5)  Until  July  1,  2003,  graphic  arts  machinery and
14    equipment, including repair and replacement parts,  both  new
15    and used, and including that manufactured on special order or
16    purchased  for  lease,  certified by the purchaser to be used
17    primarily for graphic  arts  production.  Equipment  includes
18    chemicals  or  chemicals  acting as catalysts but only if the
19    chemicals or chemicals acting as catalysts  effect  a  direct
20    and immediate change upon a graphic arts product.
21        (6)  Personal property purchased from a teacher-sponsored
22    student   organization   affiliated  with  an  elementary  or
23    secondary school located in Illinois.
24        (7)  Farm machinery and equipment,  both  new  and  used,
25    including  that  manufactured  on special order, certified by
26    the purchaser to be used primarily for production agriculture
27    or  State  or  federal   agricultural   programs,   including
28    individual replacement parts for the machinery and equipment,
29    including  machinery  and  equipment purchased for lease, and
30    including implements of husbandry defined in Section 1-130 of
31    the Illinois Vehicle Code, farm  machinery  and  agricultural
32    chemical  and fertilizer spreaders, and nurse wagons required
33    to be registered under Section 3-809 of the Illinois  Vehicle
34    Code,  but  excluding  other  motor  vehicles  required to be
 
SB842 Enrolled             -38-      LRB093 02890 SJM 02906 b
 1    registered under the  Illinois  Vehicle  Code.  Horticultural
 2    polyhouses  or  hoop houses used for propagating, growing, or
 3    overwintering plants shall be considered farm  machinery  and
 4    equipment  under  this item (7). Agricultural chemical tender
 5    tanks and dry boxes shall include units sold separately  from
 6    a  motor  vehicle  required  to  be  licensed  and units sold
 7    mounted on a motor vehicle required to  be  licensed  if  the
 8    selling price of the tender is separately stated.
 9        Farm  machinery  and  equipment  shall  include precision
10    farming equipment  that  is  installed  or  purchased  to  be
11    installed  on farm machinery and equipment including, but not
12    limited  to,  tractors,   harvesters,   sprayers,   planters,
13    seeders,  or spreaders. Precision farming equipment includes,
14    but is not  limited  to,  soil  testing  sensors,  computers,
15    monitors,  software,  global positioning and mapping systems,
16    and other such equipment.
17        Farm machinery and  equipment  also  includes  computers,
18    sensors,  software,  and  related equipment used primarily in
19    the computer-assisted  operation  of  production  agriculture
20    facilities,  equipment,  and  activities  such  as,  but  not
21    limited  to,  the  collection, monitoring, and correlation of
22    animal and crop data for the purpose  of  formulating  animal
23    diets  and  agricultural  chemicals.  This item (7) is exempt
24    from the provisions of Section 3-75.
25        (8)  Fuel and petroleum products sold to or  used  by  an
26    air  common  carrier, certified by the carrier to be used for
27    consumption, shipment, or  storage  in  the  conduct  of  its
28    business  as an air common carrier, for a flight destined for
29    or returning from a location or locations outside the  United
30    States  without  regard  to  previous  or subsequent domestic
31    stopovers.
32        (9)  Proceeds of  mandatory  service  charges  separately
33    stated  on  customers' bills for the purchase and consumption
34    of food and beverages acquired as an incident to the purchase
 
SB842 Enrolled             -39-      LRB093 02890 SJM 02906 b
 1    of a service from  a  serviceman,  to  the  extent  that  the
 2    proceeds  of  the  service  charge are in fact turned over as
 3    tips or as  a  substitute  for  tips  to  the  employees  who
 4    participate   directly  in  preparing,  serving,  hosting  or
 5    cleaning up the food or beverage  function  with  respect  to
 6    which the service charge is imposed.
 7        (10)  Until   July   1,   2003,  oil  field  exploration,
 8    drilling, and production equipment, including  (i)  rigs  and
 9    parts  of  rigs,  rotary  rigs, cable tool rigs, and workover
10    rigs, (ii) pipe and tubular goods, including casing and drill
11    strings, (iii) pumps and pump-jack units, (iv) storage  tanks
12    and  flow  lines, (v) any individual replacement part for oil
13    field exploration, drilling, and  production  equipment,  and
14    (vi)   machinery  and  equipment  purchased  for  lease;  but
15    excluding motor vehicles required to be registered under  the
16    Illinois Vehicle Code.
17        (11)  Proceeds from the sale of photoprocessing machinery
18    and  equipment,  including repair and replacement parts, both
19    new and used, including that manufactured on  special  order,
20    certified   by   the  purchaser  to  be  used  primarily  for
21    photoprocessing, and including photoprocessing machinery  and
22    equipment purchased for lease.
23        (12)  Until  July  1,  2003,  coal  exploration,  mining,
24    offhighway  hauling, processing, maintenance, and reclamation
25    equipment, including replacement  parts  and  equipment,  and
26    including  equipment purchased for lease, but excluding motor
27    vehicles required to be registered under the Illinois Vehicle
28    Code.
29        (13)  Semen used for artificial insemination of livestock
30    for direct agricultural production.
31        (14)  Horses, or interests in horses, registered with and
32    meeting the requirements of any of  the  Arabian  Horse  Club
33    Registry  of  America, Appaloosa Horse Club, American Quarter
34    Horse Association, United  States  Trotting  Association,  or
 
SB842 Enrolled             -40-      LRB093 02890 SJM 02906 b
 1    Jockey Club, as appropriate, used for purposes of breeding or
 2    racing for prizes.
 3        (15)  Computers and communications equipment utilized for
 4    any  hospital  purpose  and  equipment used in the diagnosis,
 5    analysis, or treatment of hospital patients  purchased  by  a
 6    lessor who leases the equipment, under a lease of one year or
 7    longer  executed  or  in  effect at the time the lessor would
 8    otherwise be subject to the tax imposed by  this  Act,  to  a
 9    hospital  that  has  been  issued  an  active  tax  exemption
10    identification  number  by the Department under Section 1g of
11    the Retailers' Occupation Tax Act. If the equipment is leased
12    in a manner that does not qualify for this  exemption  or  is
13    used  in  any  other  non-exempt  manner, the lessor shall be
14    liable for the tax imposed under this Act or the Use Tax Act,
15    as the case may be, based on the fair  market  value  of  the
16    property  at  the  time  the  non-qualifying  use occurs.  No
17    lessor shall collect or attempt to collect an amount (however
18    designated) that purports to reimburse that  lessor  for  the
19    tax  imposed  by this Act or the Use Tax Act, as the case may
20    be, if the tax has not been paid by the lessor.  If a  lessor
21    improperly  collects  any  such  amount  from the lessee, the
22    lessee shall have a legal right to claim  a  refund  of  that
23    amount  from  the  lessor.   If,  however, that amount is not
24    refunded to the lessee for any reason, the lessor  is  liable
25    to pay that amount to the Department.
26        (16)  Personal  property purchased by a lessor who leases
27    the property, under a lease of one year or longer executed or
28    in effect at the time the lessor would otherwise  be  subject
29    to  the  tax imposed by this Act, to a governmental body that
30    has been issued an active tax exemption identification number
31    by  the  Department  under  Section  1g  of  the   Retailers'
32    Occupation  Tax  Act.   If the property is leased in a manner
33    that does not qualify for this exemption or is  used  in  any
34    other  non-exempt  manner, the lessor shall be liable for the
 
SB842 Enrolled             -41-      LRB093 02890 SJM 02906 b
 1    tax imposed under this Act or the Use Tax Act,  as  the  case
 2    may be, based on the fair market value of the property at the
 3    time  the non-qualifying use occurs.  No lessor shall collect
 4    or attempt to collect an  amount  (however  designated)  that
 5    purports to reimburse that lessor for the tax imposed by this
 6    Act  or  the  Use Tax Act, as the case may be, if the tax has
 7    not been paid by the lessor.  If a lessor improperly collects
 8    any such amount from the lessee,  the  lessee  shall  have  a
 9    legal right to claim a refund of that amount from the lessor.
10    If,  however,  that  amount is not refunded to the lessee for
11    any reason, the lessor is liable to pay that  amount  to  the
12    Department.
13        (17)  Beginning  with  taxable  years  ending on or after
14    December 31, 1995 and ending with taxable years ending on  or
15    before  December  31, 2004, personal property that is donated
16    for disaster relief to  be  used  in  a  State  or  federally
17    declared disaster area in Illinois or bordering Illinois by a
18    manufacturer  or retailer that is registered in this State to
19    a   corporation,   society,   association,   foundation,   or
20    institution that  has  been  issued  a  sales  tax  exemption
21    identification  number by the Department that assists victims
22    of the disaster who reside within the declared disaster area.
23        (18)  Beginning with taxable years  ending  on  or  after
24    December  31, 1995 and ending with taxable years ending on or
25    before December 31, 2004, personal property that is  used  in
26    the  performance  of  infrastructure  repairs  in this State,
27    including but not limited to  municipal  roads  and  streets,
28    access  roads,  bridges,  sidewalks,  waste disposal systems,
29    water and  sewer  line  extensions,  water  distribution  and
30    purification  facilities,  storm water drainage and retention
31    facilities, and sewage treatment facilities, resulting from a
32    State or federally declared disaster in Illinois or bordering
33    Illinois  when  such  repairs  are  initiated  on  facilities
34    located in the declared disaster area within 6  months  after
 
SB842 Enrolled             -42-      LRB093 02890 SJM 02906 b
 1    the disaster.
 2        (19)  Beginning   July   1,  1999,  game  or  game  birds
 3    purchased at a "game breeding and hunting preserve  area"  or
 4    an  "exotic game hunting area" as those terms are used in the
 5    Wildlife Code or at  a  hunting  enclosure  approved  through
 6    rules  adopted  by the Department of Natural Resources.  This
 7    paragraph is exempt from the provisions of Section 3-75.
 8        (20)  A motor vehicle, as that term is defined in Section
 9    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
10    corporation, limited liability company, society, association,
11    foundation,   or   institution  that  is  determined  by  the
12    Department to  be  organized  and  operated  exclusively  for
13    educational  purposes.   For  purposes  of this exemption, "a
14    corporation, limited liability company, society, association,
15    foundation, or institution organized and operated exclusively
16    for educational  purposes"  means  all  tax-supported  public
17    schools, private schools that offer systematic instruction in
18    useful  branches  of  learning  by  methods  common to public
19    schools  and  that  compare  favorably  in  their  scope  and
20    intensity with the course of study presented in tax-supported
21    schools, and vocational or technical  schools  or  institutes
22    organized  and  operated  exclusively  to provide a course of
23    study of not less than  6  weeks  duration  and  designed  to
24    prepare  individuals to follow a trade or to pursue a manual,
25    technical, mechanical, industrial,  business,  or  commercial
26    occupation.
27        (21)  Beginning  January  1,  2000,   personal  property,
28    including  food, purchased through fundraising events for the
29    benefit of  a  public  or  private  elementary  or  secondary
30    school,  a  group  of  those  schools,  or one or more school
31    districts if the events are sponsored by an entity recognized
32    by the school district that consists primarily of  volunteers
33    and  includes  parents  and  teachers of the school children.
34    This paragraph does not apply to fundraising events  (i)  for
 
SB842 Enrolled             -43-      LRB093 02890 SJM 02906 b
 1    the benefit of private home instruction or (ii) for which the
 2    fundraising  entity  purchases  the personal property sold at
 3    the events from another individual or entity  that  sold  the
 4    property  for the purpose of resale by the fundraising entity
 5    and that profits from the sale  to  the  fundraising  entity.
 6    This paragraph is exempt from the provisions of Section 3-75.
 7        (22)  Beginning  January 1, 2000 and through December 31,
 8    2001, new or used automatic vending machines that prepare and
 9    serve hot food and beverages,  including  coffee,  soup,  and
10    other  items,  and  replacement  parts  for  these  machines.
11    Beginning January 1, 2002 and through June 30, 2003, machines
12    and  parts  for  machines  used  in commercial, coin-operated
13    amusement and vending business if a use or occupation tax  is
14    paid  on  the  gross  receipts  derived  from  the use of the
15    commercial, coin-operated  amusement  and  vending  machines.
16    This paragraph is exempt from the provisions of Section 3-75.
17        (23)  Food  for  human consumption that is to be consumed
18    off the premises where  it  is  sold  (other  than  alcoholic
19    beverages,  soft  drinks, and food that has been prepared for
20    immediate consumption) and prescription  and  nonprescription
21    medicines,  drugs,  medical  appliances,  and  insulin, urine
22    testing materials, syringes, and needles used  by  diabetics,
23    for  human  use, when purchased for use by a person receiving
24    medical assistance under Article 5 of the Illinois Public Aid
25    Code who resides in a licensed long-term  care  facility,  as
26    defined in the Nursing Home Care Act.
27        (24)    Beginning   on   the   effective   date  of  this
28    amendatory Act of the 92nd General  Assembly,  computers  and
29    communications  equipment  utilized  for any hospital purpose
30    and equipment used in the diagnosis, analysis,  or  treatment
31    of  hospital  patients  purchased  by a lessor who leases the
32    equipment, under a lease of one year or longer executed or in
33    effect at the time the lessor would otherwise be  subject  to
34    the  tax  imposed  by  this  Act, to a hospital that has been
 
SB842 Enrolled             -44-      LRB093 02890 SJM 02906 b
 1    issued an active tax exemption identification number  by  the
 2    Department  under Section 1g of the Retailers' Occupation Tax
 3    Act.  If the equipment is leased in a manner  that  does  not
 4    qualify  for this exemption or is used in any other nonexempt
 5    manner, the lessor shall be liable for the tax imposed  under
 6    this Act or the Use Tax Act, as the case may be, based on the
 7    fair   market   value   of  the  property  at  the  time  the
 8    nonqualifying use occurs. No lessor shall collect or  attempt
 9    to  collect  an  amount (however designated) that purports to
10    reimburse that lessor for the tax imposed by this Act or  the
11    Use Tax Act, as the case may be, if the tax has not been paid
12    by  the  lessor.   If  a  lessor improperly collects any such
13    amount from the lessee, the lessee shall have a  legal  right
14    to  claim  a  refund  of  that  amount  from the lessor.  If,
15    however, that amount is not refunded to the  lessee  for  any
16    reason,  the  lessor  is  liable  to  pay  that amount to the
17    Department. This paragraph is exempt from the  provisions  of
18    Section 3-75.
19        (25)  Beginning  on the effective date of this amendatory
20    Act of the 92nd General Assembly, personal property purchased
21    by a lessor who leases the property, under  a  lease  of  one
22    year  or  longer executed or in effect at the time the lessor
23    would otherwise be subject to the tax imposed by this Act, to
24    a governmental body  that  has  been  issued  an  active  tax
25    exemption  identification  number  by  the  Department  under
26    Section  1g  of  the  Retailers'  Occupation Tax Act.  If the
27    property is leased in a manner that does not qualify for this
28    exemption or is used  in  any  other  nonexempt  manner,  the
29    lessor  shall be liable for the tax imposed under this Act or
30    the Use Tax Act, as the case may be, based on the fair market
31    value of the property  at  the  time  the  nonqualifying  use
32    occurs.   No  lessor  shall  collect or attempt to collect an
33    amount (however designated) that purports to  reimburse  that
34    lessor for the tax imposed by this Act or the Use Tax Act, as
 
SB842 Enrolled             -45-      LRB093 02890 SJM 02906 b
 1    the  case may be, if the tax has not been paid by the lessor.
 2    If a lessor improperly collects  any  such  amount  from  the
 3    lessee, the lessee shall have a legal right to claim a refund
 4    of  that amount from the lessor.  If, however, that amount is
 5    not refunded to the lessee for  any  reason,  the  lessor  is
 6    liable  to  pay that amount to the Department. This paragraph
 7    is exempt from the provisions of Section 3-75.
 8    (Source: P.A. 91-51,  eff.  6-30-99;  91-200,  eff.  7-20-99;
 9    91-439,  eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644, eff.
10    8-20-99; 92-16, eff. 6-28-01;  92-35,  eff.  7-1-01;  92-227,
11    eff.  8-2-01;  92-337,  eff.  8-10-01;  92-484, eff. 8-23-01;
12    92-651, eff. 7-11-02.)

13        (35 ILCS 110/3-7)
14        Sec.  3-7.  Aggregate  manufacturing  exemption.  Through
15    June 30,  2003  December  31,  2007,  the  use  of  aggregate
16    exploration,    mining,   offhighway   hauling,   processing,
17    maintenance, and reclamation equipment, including replacement
18    parts and equipment, and including equipment  purchased   for
19    lease, but excluding motor vehicles required to be registered
20    under  the  Illinois  Vehicle  Code,  is  exempt from the tax
21    imposed by this Act.
22    (Source: P.A. 92-603, eff. 6-28-02.)

23        (35 ILCS 110/3-70)
24        Sec. 3-70.  Manufacturer's Purchase Credit. For purchases
25    of machinery and equipment made on and after January 1,  1995
26    and  through  June  30,  2003,  a  purchaser of manufacturing
27    machinery and equipment  that  qualifies  for  the  exemption
28    provided by Section 2 of this Act earns a credit in an amount
29    equal  to a fixed percentage of the tax which would have been
30    incurred under this Act on those purchases. For purchases  of
31    graphic arts machinery and equipment made on or after July 1,
32    1996  and  through  June 30, 2003, a purchase of graphic arts
 
SB842 Enrolled             -46-      LRB093 02890 SJM 02906 b
 1    machinery and equipment  that  qualifies  for  the  exemption
 2    provided  by paragraph (5) of Section 3-5 of this Act earns a
 3    credit in an amount equal to a fixed percentage  of  the  tax
 4    that  would  have  been  incurred  under  this  Act  on those
 5    purchases.  The   credit   earned   for   the   purchase   of
 6    manufacturing   machinery  and  equipment  and  graphic  arts
 7    machinery  and  equipment  shall  be  referred  to   as   the
 8    Manufacturer's  Purchase Credit. A graphic arts producer is a
 9    person engaged in  graphic  arts  production  as  defined  in
10    Section  3-30  of  the Service Occupation Tax Act.  Beginning
11    July 1, 1996, all references in this Section to manufacturers
12    or manufacturing shall also refer to graphic  arts  producers
13    or graphic arts production.
14        The  amount  of  credit  shall be a percentage of the tax
15    that  would  have  been  incurred  on  the  purchase  of  the
16    manufacturing  machinery  and  equipment  or   graphic   arts
17    machinery and equipment if the exemptions provided by Section
18    2  or  paragraph  (5) of Section 3-5 of this Act had not been
19    applicable.
20        All purchases prior to October 1, 2003  of  manufacturing
21    machinery  and  equipment  and  graphic  arts  machinery  and
22    equipment   that  qualify  for  the  exemptions  provided  by
23    paragraph (5) of Section 2 or paragraph (5) of Section 3-5 of
24    this Act qualify for the credit without regard to whether the
25    serviceman elected, or could have  elected,  under  paragraph
26    (7)  of Section 2 of this Act to exclude the transaction from
27    this  Act.   If  the  serviceman's  billing  to  the  service
28    customer separately states a selling  price  for  the  exempt
29    manufacturing  machinery  or  equipment or the exempt graphic
30    arts machinery and equipment, the credit shall be calculated,
31    as otherwise provided herein, based on  that  selling  price.
32    If  the  serviceman's  billing  does  not  separately state a
33    selling price for  the  exempt  manufacturing  machinery  and
34    equipment or the exempt graphic arts machinery and equipment,
 
SB842 Enrolled             -47-      LRB093 02890 SJM 02906 b
 1    the credit shall be calculated, as otherwise provided herein,
 2    based  on  50%  of  the  entire  billing.   If the serviceman
 3    contracts to  design,  develop,  and  produce  special  order
 4    manufacturing   machinery  and  equipment  or  special  order
 5    graphic arts machinery and equipment, and  the  billing  does
 6    not  separately  state a selling price for such special order
 7    machinery and equipment, the credit shall be  calculated,  as
 8    otherwise  provided  herein,  based  on  50%  of  the  entire
 9    billing.   The provisions of this paragraph are effective for
10    purchases made on or after January 1, 1995.
11        The percentage shall be as follows:
12             (1)  15% for purchases made on or  before  June  30,
13        1995.
14             (2)  25% for purchases made after June 30, 1995, and
15        on or before June 30, 1996.
16             (3)  40% for purchases made after June 30, 1996, and
17        on or before June 30, 1997.
18             (4)  50%  for  purchases  made  on  or after July 1,
19        1997.
20        A  purchaser  of  production  related  tangible  personal
21    property desiring to use the Manufacturer's  Purchase  Credit
22    shall certify to the seller prior to October 1, 2003 that the
23    purchaser  is  satisfying  all or part of the liability under
24    the Use Tax Act or the Service Use Tax Act that is due on the
25    purchase of the production related tangible personal property
26    by   use   of   a   Manufacturer's   Purchase   Credit.   The
27    Manufacturer's Purchase Credit certification  must  be  dated
28    and  shall include the name and address of the purchaser, the
29    purchaser's registration number, if  registered,  the  credit
30    being  applied,  and  a  statement  that the State Use Tax or
31    Service  Use  Tax  liability  is  being  satisfied  with  the
32    manufacturer's  or  graphic   arts   producer's   accumulated
33    purchase  credit.  Certification may be incorporated into the
34    manufacturer's or graphic  arts  producer's  purchase  order.
 
SB842 Enrolled             -48-      LRB093 02890 SJM 02906 b
 1    Manufacturer's  Purchase Credit certification provided by the
 2    manufacturer or graphic arts producer  prior  to  October  1,
 3    2003  may  be  used to satisfy the retailer's or serviceman's
 4    liability under the Retailers' Occupation Tax Act or  Service
 5    Occupation  Tax  Act  for  the  credit claimed, not to exceed
 6    6.25% of the  receipts  subject  to  tax  from  a  qualifying
 7    purchase,  but only if the retailer or serviceman reports the
 8    Manufacturer's Purchase Credit claimed  as  required  by  the
 9    Department.  A Manufacturer's Purchase Credit reported on any
10    original or amended return filed under this Act after October
11    20,  2003  shall  be disallowed.  The Manufacturer's Purchase
12    Credit earned by purchase of exempt  manufacturing  machinery
13    and  equipment  or  graphic arts machinery and equipment is a
14    non-transferable credit.   A  manufacturer  or  graphic  arts
15    producer   that   enters   into   a  contract  involving  the
16    installation of tangible personal property into  real  estate
17    within  a  manufacturing or graphic arts production facility,
18    prior to  October  1,  2003,  may  authorize  a  construction
19    contractor  to utilize credit accumulated by the manufacturer
20    or graphic arts producer to purchase  the  tangible  personal
21    property.   A manufacturer or graphic arts producer intending
22    to use accumulated credit to purchase such tangible  personal
23    property  shall  execute  a  written contract authorizing the
24    contractor to utilize a specified dollar  amount  of  credit.
25    The  contractor  shall furnish, prior to October 1, 2003, the
26    supplier with the manufacturer's or graphic  arts  producer's
27    name,  registration  or resale number, and a statement that a
28    specific amount of the Use Tax or Service Use Tax  liability,
29    not  to exceed 6.25% of the selling price, is being satisfied
30    with the credit. The manufacturer or  graphic  arts  producer
31    shall remain liable to timely report all information required
32    by  the  annual Report of Manufacturer's Purchase Credit Used
33    for credit utilized by a construction contractor.
34        The Manufacturer's Purchase Credit may be used to satisfy
 
SB842 Enrolled             -49-      LRB093 02890 SJM 02906 b
 1    liability under the Use Tax Act or the Service  Use  Tax  Act
 2    due  on  the purchase of production related tangible personal
 3    property (including purchases by a manufacturer, by a graphic
 4    arts producer, or a lessor who rents or leases the use of the
 5    property to a manufacturer or  graphic  arts  producer)  that
 6    does  not  otherwise  qualify for the manufacturing machinery
 7    and equipment exemption or the  graphic  arts  machinery  and
 8    equipment  exemption.   "Production related tangible personal
 9    property" means (i) all tangible personal  property  used  or
10    consumed  by  the  purchaser  in  a manufacturing facility in
11    which a manufacturing process described in  Section  2-45  of
12    the  Retailers'  Occupation  Tax  Act  takes place, including
13    tangible personal property purchased for  incorporation  into
14    real  estate  within  a manufacturing facility and including,
15    but not  limited  to,  tangible  personal  property  used  or
16    consumed   in  activities  such  as  pre-production  material
17    handling,  receiving,  quality  control,  inventory  control,
18    storage,   staging,   and   packaging   for   shipping    and
19    transportation  purposes; (ii) all tangible personal property
20    used or consumed by the purchaser in a graphic arts  facility
21    in which graphic arts production as described in Section 2-30
22    of  the  Retailers' Occupation Tax Act takes place, including
23    tangible personal property purchased for  incorporation  into
24    real estate within a graphic arts facility and including, but
25    not  limited  to,  all  tangible  personal  property  used or
26    consumed in activities such as graphic  arts  preliminary  or
27    pre-press   production,   pre-production  material  handling,
28    receiving,  quality  control,  inventory  control,   storage,
29    staging,  sorting,  labeling,  mailing,  tying, wrapping, and
30    packaging; and (iii) all tangible personal property  used  or
31    consumed  by  the  purchaser  for  research  and development.
32    "Production related  tangible  personal  property"  does  not
33    include  (i)  tangible  personal  property  used,  within  or
34    without  a  manufacturing or graphic arts facility, in sales,
 
SB842 Enrolled             -50-      LRB093 02890 SJM 02906 b
 1    purchasing,   accounting,   fiscal   management,   marketing,
 2    personnel recruitment or selection, or  landscaping  or  (ii)
 3    tangible   personal   property   required  to  be  titled  or
 4    registered with a department, agency,  or  unit  of  federal,
 5    state,  or  local  government.   The  Manufacturer's Purchase
 6    Credit may be used, prior to October 1, 2003, to satisfy  the
 7    tax  arising  either  from  the  purchase  of  machinery  and
 8    equipment   on  or  after  January  1,  1995  for  which  the
 9    manufacturing machinery and equipment exemption  provided  by
10    Section  2   of  this  Act  was  erroneously  claimed, or the
11    purchase of machinery and equipment on or after July 1,  1996
12    for  which the exemption provided by paragraph (5) of Section
13    3-5  of  this  Act  was  erroneously  claimed,  but  not   in
14    satisfaction  of penalty, if any, and interest for failure to
15    pay the tax when due.   A  purchaser  of  production  related
16    tangible  personal  property  who is required to pay Illinois
17    Use Tax or Service Use Tax on the purchase  directly  to  the
18    Department  may,  prior  to  October  1,  2003,  utilize  the
19    Manufacturer's  Purchase  Credit  in  satisfaction of the tax
20    arising from  that  purchase,  but  not  in  satisfaction  of
21    penalty and interest. A purchaser who uses the Manufacturer's
22    Purchase   Credit   to   purchase  property  which  is  later
23    determined not to be  production  related  tangible  personal
24    property  may be liable for tax, penalty, and interest on the
25    purchase of that property as of  the  date  of  purchase  but
26    shall  be  entitled  to  use  the  disallowed  Manufacturer's
27    Purchase  Credit,  so  long as it has not expired and is used
28    prior  to  October  1,  2003,  on  qualifying  purchases   of
29    production  related tangible personal property not previously
30    subject to credit usage. The Manufacturer's  Purchase  Credit
31    earned by a manufacturer or graphic arts producer expires the
32    last  day  of the second calendar year following the calendar
33    year in which the credit arose.  No  Manufacturer's  Purchase
34    Credit  may  be  used  after September 30, 2003 regardless of
 
SB842 Enrolled             -51-      LRB093 02890 SJM 02906 b
 1    when that credit was earned.
 2        A purchaser earning Manufacturer's Purchase Credit  shall
 3    sign  and  file  an  annual Report of Manufacturer's Purchase
 4    Credit Earned for each calendar year no later than  the  last
 5    day of the sixth month following the calendar year in which a
 6    Manufacturer's  Purchase  Credit  is  earned.   A  Report  of
 7    Manufacturer's Purchase Credit Earned shall be filed on forms
 8    as  prescribed or approved by the Department and shall state,
 9    for each month of the calendar year: (i) the  total  purchase
10    price  of  all  purchases  of exempt manufacturing or graphic
11    arts machinery on which the credit was earned; (ii) the total
12    State Use Tax or Service Use Tax which would have been due on
13    those items; (iii)  the  percentage  used  to  calculate  the
14    amount  of  credit  earned; (iv) the amount of credit earned;
15    and  (v)  such  other  information  as  the  Department   may
16    reasonably   require.   A  purchaser  earning  Manufacturer's
17    Purchase Credit shall maintain records which identify, as  to
18    each  purchase of manufacturing or graphic arts machinery and
19    equipment  on  which  the  purchaser  earned   Manufacturer's
20    Purchase Credit, the vendor (including, if applicable, either
21    the   vendor's   registration   number  or  Federal  Employer
22    Identification Number), the purchase price, and the amount of
23    Manufacturer's Purchase Credit earned on each purchase.
24        A purchaser using Manufacturer's  Purchase  Credit  shall
25    sign  and  file  an  annual Report of Manufacturer's Purchase
26    Credit Used for each calendar year no later than the last day
27    of the sixth month following the calendar  year  in  which  a
28    Manufacturer's   Purchase   Credit   is  used.  A  Report  of
29    Manufacturer's Purchase Credit Used shall be filed  on  forms
30    as  prescribed or approved by the Department and shall state,
31    for each month of the calendar year:  (i) the total  purchase
32    price   of  production  related  tangible  personal  property
33    purchased from Illinois suppliers; (ii)  the  total  purchase
34    price   of  production  related  tangible  personal  property
 
SB842 Enrolled             -52-      LRB093 02890 SJM 02906 b
 1    purchased from out-of-state suppliers; (iii) the total amount
 2    of credit  used  during  such  month;  and  (iv)  such  other
 3    information  as  the  Department  may  reasonably require.  A
 4    purchaser using Manufacturer's Purchase Credit shall maintain
 5    records that identify, as  to  each  purchase  of  production
 6    related  tangible  personal  property  on which the purchaser
 7    used Manufacturer's Purchase Credit, the  vendor  (including,
 8    if  applicable,  either  the  vendor's registration number or
 9    Federal Employer Identification Number), the purchase  price,
10    and the amount of Manufacturer's Purchase Credit used on each
11    purchase.
12        No  annual  report  shall  be filed before May 1, 1996 or
13    after June 30, 2004. A purchaser that fails to file an annual
14    Report of Manufacturer's Purchase Credit Earned or an  annual
15    Report of Manufacturer's Purchase Credit Used by the last day
16    of  the  sixth  month  following the end of the calendar year
17    shall forfeit all Manufacturer's  Purchase  Credit  for  that
18    calendar  year unless it establishes that its failure to file
19    was due to reasonable cause. Manufacturer's  Purchase  Credit
20    reports  may  be  amended  to  report  and  claim  credit  on
21    qualifying  purchases  not  previously  reported  at any time
22    before  the  credit  would  have  expired,  unless  both  the
23    Department and the purchaser have agreed to an  extension  of
24    the  statute  of  limitations for the issuance of a notice of
25    tax liability as provided in  Section  4  of  the  Retailers'
26    Occupation  Tax Act. If the time for assessment or refund has
27    been extended, then amended reports for a calendar  year  may
28    be  filed  at any time prior to the date to which the statute
29    of limitations for the calendar year or portion  thereof  has
30    been extended. No Manufacturer's Purchase Credit report filed
31    with  the  Department  for  periods  prior to January 1, 1995
32    shall be approved. Manufacturer's Purchase Credit claimed  on
33    an  amended  report may be used, prior to October 1, 2003, to
34    satisfy tax liability under the Use Tax Act  or  the  Service
 
SB842 Enrolled             -53-      LRB093 02890 SJM 02906 b
 1    Use Tax Act (i) on qualifying purchases of production related
 2    tangible  personal  property  made after the date the amended
 3    report is  filed  or  (ii)  assessed  by  the  Department  on
 4    qualifying  purchases of production related tangible personal
 5    property made in  the  case  of  manufacturers  on  or  after
 6    January  1, 1995, or in the case of graphic arts producers on
 7    or after July 1, 1996.
 8        If the purchaser is not the  manufacturer  or  a  graphic
 9    arts producer, but rents or leases the use of the property to
10    a  manufacturer or a graphic arts producer, the purchaser may
11    earn, report, and use Manufacturer's Purchase Credit  in  the
12    same manner as a manufacturer or graphic arts producer.
13        A  purchaser  shall not be entitled to any Manufacturer's
14    Purchase Credit  for  a  purchase  that  is  required  to  be
15    reported  and  is  not  timely  reported  as provided in this
16    Section.  A purchaser remains liable for (i) any tax that was
17    satisfied by use of a Manufacturer's Purchase Credit,  as  of
18    the  date  of purchase, if that use is not timely reported as
19    required  in  this  Section  and  (ii)  for  any   applicable
20    penalties  and  interest for failing to pay the tax when due.
21    No Manufacturer's Purchase Credit may be used after September
22    30, 2003 to satisfy any tax liability imposed under this Act,
23    including any audit liability.
24    (Source: P.A.  89-89,  eff.  6-30-95;  89-235,  eff.  8-4-95;
25    89-531, eff. 7-19-96; 90-166, eff. 7-23-97.)

26        Section 50-24.  The Service Occupation Tax Act is amended
27    by changing Sections 2, 2a, 3-5, 3-7, and 9 as follows:

28        (35 ILCS 115/2) (from Ch. 120, par. 439.102)
29        Sec.  2.  "Transfer"  means  any transfer of the title to
30    property or of the ownership of property whether or  not  the
31    transferor  retains  title  as  security  for  the payment of
32    amounts due him from the transferee.
 
SB842 Enrolled             -54-      LRB093 02890 SJM 02906 b
 1        "Cost  Price"  means  the  consideration  paid   by   the
 2    serviceman  for  a  purchase valued in money, whether paid in
 3    money or otherwise, including cash, credits and services, and
 4    shall be determined without any deduction on account  of  the
 5    supplier's  cost  of  the  property sold or on account of any
 6    other expense incurred by the  supplier.  When  a  serviceman
 7    contracts  out  part  or  all of the services required in his
 8    sale of service, it shall be presumed that the cost price  to
 9    the  serviceman  of the property transferred to him by his or
10    her subcontractor is equal  to  50%  of  the  subcontractor's
11    charges  to  the  serviceman  in  the absence of proof of the
12    consideration paid by the subcontractor for the  purchase  of
13    such property.
14        "Department" means the Department of Revenue.
15        "Person" means any natural individual, firm, partnership,
16    association,  joint  stock  company, joint venture, public or
17    private  corporation,  limited  liability  company,  and  any
18    receiver, executor, trustee, guardian or other representative
19    appointed by order of any court.
20        "Sale of Service" means any transaction except:
21        (a)  A retail sale of tangible personal property  taxable
22    under  the Retailers' Occupation Tax Act or under the Use Tax
23    Act.
24        (b)  A sale of tangible personal property for the purpose
25    of  resale  made  in  compliance  with  Section  2c  of   the
26    Retailers' Occupation Tax Act.
27        (c)  Except  as  hereinafter provided, a sale or transfer
28    of tangible personal property as an incident to the rendering
29    of service for or by any governmental body or for or  by  any
30    corporation,  society, association, foundation or institution
31    organized and operated exclusively for charitable,  religious
32    or  educational  purposes  or any not-for-profit corporation,
33    society, association, foundation, institution or organization
34    which has no compensated officers or employees and  which  is
 
SB842 Enrolled             -55-      LRB093 02890 SJM 02906 b
 1    organized  and  operated  primarily  for  the  recreation  of
 2    persons 55 years of age or older. A limited liability company
 3    may  qualify  for  the exemption under this paragraph only if
 4    the limited  liability  company  is  organized  and  operated
 5    exclusively for educational purposes.
 6        (d)  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  lessors under leases of one year or
10    longer, executed or in effect at the  time  of  purchase,  to
11    interstate  carriers for hire for use as rolling stock moving
12    in  interstate  commerce,  and  equipment   operated   by   a
13    telecommunications  provider, licensed as a common carrier by
14    the Federal Communications Commission, which  is  permanently
15    installed  in  or  affixed  to  aircraft moving in interstate
16    commerce.
17        (d-1)  A sale or transfer of tangible  personal  property
18    as  an  incident  to  the  rendering  of  service for owners,
19    lessors or shippers of tangible personal  property  which  is
20    utilized  by  interstate carriers for hire for use as rolling
21    stock moving in interstate commerce, and  equipment  operated
22    by  a  telecommunications  provider,  licensed  as  a  common
23    carrier  by  the  Federal Communications Commission, which is
24    permanently installed in or affixed  to  aircraft  moving  in
25    interstate commerce.
26        (d-2)  The repairing, reconditioning or remodeling, for a
27    common  carrier  by rail, of tangible personal property which
28    belongs to such carrier  for  hire,  and  as  to  which  such
29    carrier  receives  the  physical  possession of the repaired,
30    reconditioned or remodeled item of tangible personal property
31    in Illinois, and which such  carrier  transports,  or  shares
32    with  another  common  carrier  in the transportation of such
33    property, out of Illinois  on  a  standard  uniform  bill  of
34    lading  showing  the  person  who  repaired, reconditioned or
 
SB842 Enrolled             -56-      LRB093 02890 SJM 02906 b
 1    remodeled the property as the shipper or  consignor  of  such
 2    property  to  a destination outside Illinois, for use outside
 3    Illinois.
 4        (d-3)  A sale or transfer of tangible  personal  property
 5    which  is  produced by the seller thereof on special order in
 6    such a way as to have made the  applicable  tax  the  Service
 7    Occupation  Tax  or  the  Service  Use  Tax,  rather than the
 8    Retailers' Occupation Tax or the Use Tax, for  an  interstate
 9    carrier  by  rail  which  receives the physical possession of
10    such  property  in  Illinois,  and  which   transports   such
11    property,  or  shares  with  another  common  carrier  in the
12    transportation  of  such  property,  out  of  Illinois  on  a
13    standard uniform bill of lading showing  the  seller  of  the
14    property  as  the  shipper or consignor of such property to a
15    destination outside Illinois, for use outside Illinois.
16        (d-4)  Until January 1, 1997, a  sale,  by  a  registered
17    serviceman  paying  tax  under this Act to the Department, of
18    special order printed materials  delivered  outside  Illinois
19    and which are not returned to this State, if delivery is made
20    by  the seller or agent of the seller, including an agent who
21    causes the product to be  delivered  outside  Illinois  by  a
22    common carrier or the U.S. postal service.
23        (e)  A  sale  or transfer of machinery and equipment used
24    primarily in the process of the manufacturing or  assembling,
25    either  in  an  existing,  an expanded or a new manufacturing
26    facility, of tangible  personal  property  for  wholesale  or
27    retail  sale  or  lease,  whether  such sale or lease is made
28    directly by the manufacturer or by some other person, whether
29    the  materials  used  in  the  process  are  owned   by   the
30    manufacturer  or  some  other person, or whether such sale or
31    lease is made apart from or as an incident  to  the  seller's
32    engaging  in a service occupation and the applicable tax is a
33    Service Occupation  Tax  or  Service  Use  Tax,  rather  than
34    Retailers' Occupation Tax or Use Tax.
 
SB842 Enrolled             -57-      LRB093 02890 SJM 02906 b
 1        (f)  Until   July  1,  2003,  the  sale  or  transfer  of
 2    distillation machinery and equipment, sold as a unit  or  kit
 3    and  assembled  or installed by the retailer, which machinery
 4    and equipment is certified by the user to be  used  only  for
 5    the  production  of  ethyl  alcohol  that  will  be  used for
 6    consumption as motor fuel or as a component of motor fuel for
 7    the personal use of such user and  not  subject  to  sale  or
 8    resale.
 9        (g)  At the election of any serviceman not required to be
10    otherwise  registered  as  a retailer under Section 2a of the
11    Retailers' Occupation Tax Act,  made  for  each  fiscal  year
12    sales  of service in which the aggregate annual cost price of
13    tangible personal property transferred as an incident to  the
14    sales  of  service  is  less  than  35%  (75%  in the case of
15    servicemen  transferring  prescription  drugs  or  servicemen
16    engaged in graphic arts production) of the  aggregate  annual
17    total  gross receipts from all sales of service. The purchase
18    of such tangible personal property by the serviceman shall be
19    subject to tax under the Retailers' Occupation  Tax  Act  and
20    the  Use  Tax  Act.  However, if a primary serviceman who has
21    made the election described in  this  paragraph  subcontracts
22    service  work to a secondary serviceman who has also made the
23    election described in this paragraph, the primary  serviceman
24    does   not  incur  a  Use  Tax  liability  if  the  secondary
25    serviceman (i) has paid or will pay Use Tax  on  his  or  her
26    cost  price  of any tangible personal property transferred to
27    the primary  serviceman  and  (ii)  certifies  that  fact  in
28    writing to the primary serviceman.
29        Tangible  personal  property  transferred incident to the
30    completion of a maintenance agreement is exempt from the  tax
31    imposed pursuant to this Act.
32        Exemption  (e) also includes machinery and equipment used
33    in the general maintenance or repair of such exempt machinery
34    and equipment or for in-house manufacture of exempt machinery
 
SB842 Enrolled             -58-      LRB093 02890 SJM 02906 b
 1    and equipment.  For the purposes of exemption  (e),  each  of
 2    these   terms   shall   have  the  following  meanings:   (1)
 3    "manufacturing process" shall  mean  the  production  of  any
 4    article  of  tangible personal property, whether such article
 5    is a finished product or an article for use in the process of
 6    manufacturing or assembling a different article  of  tangible
 7    personal   property,   by  procedures  commonly  regarded  as
 8    manufacturing, processing,  fabricating,  or  refining  which
 9    changes  some  existing material or materials into a material
10    with a different  form,  use  or  name.   In  relation  to  a
11    recognized  integrated  business  composed  of  a  series  of
12    operations  which  collectively  constitute manufacturing, or
13    individually   constitute   manufacturing   operations,   the
14    manufacturing process shall be deemed to  commence  with  the
15    first  operation  or  stage  of production in the series, and
16    shall not be deemed to end until the completion of the  final
17    product  in  the last operation or stage of production in the
18    series;  and  further  for   purposes   of   exemption   (e),
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
26    in  a manner commonly regarded as assembling which results in
27    a 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
32    an  integrated  manufacturing  or assembly process; including
33    computers used primarily in a manufacturer's  manufacuturer's
34    computer  assisted  design,  computer  assisted manufacturing
 
SB842 Enrolled             -59-      LRB093 02890 SJM 02906 b
 1    (CAD/CAM) system; or any subunit  or  assembly  comprising  a
 2    component   of   any   machinery  or  auxiliary,  adjunct  or
 3    attachment parts of machinery, such  as  tools,  dies,  jigs,
 4    fixtures,  patterns  and  molds;  or  any parts which require
 5    periodic replacement in the course of normal  operation;  but
 6    shall  not  include hand tools.  Equipment includes chemicals
 7    or chemicals acting as catalysts but only if the chemicals or
 8    chemicals acting as catalysts effect a direct  and  immediate
 9    change  upon  a  product  being manufactured or assembled for
10    wholesale or retail sale or lease.   The  purchaser  of  such
11    machinery and equipment who has an active resale registration
12    number shall furnish such number to the seller at the time of
13    purchase.   The purchaser of such machinery and equipment and
14    tools without an  active  resale  registration  number  shall
15    furnish  to  the  seller  a certificate of exemption for each
16    transaction stating facts establishing the exemption for that
17    transaction, which certificate  shall  be  available  to  the
18    Department for inspection or audit.
19        The rolling stock exemption applies to rolling stock used
20    by  an  interstate carrier for hire, even just between points
21    in Illinois, if such  rolling  stock  transports,  for  hire,
22    persons  whose journeys or property whose shipments originate
23    or terminate outside Illinois.
24        Any informal rulings, opinions or letters issued  by  the
25    Department  in  response  to  an  inquiry  or request for any
26    opinion  from  any  person   regarding   the   coverage   and
27    applicability  of  exemption (e) to specific devices shall be
28    published, maintained as a public record, and made  available
29    for  public  inspection and copying.  If the informal ruling,
30    opinion  or  letter   contains   trade   secrets   or   other
31    confidential information, where possible the Department shall
32    delete  such information prior to publication.  Whenever such
33    informal rulings, opinions, or letters contain any policy  of
34    general  applicability,  the  Department  shall formulate and
 
SB842 Enrolled             -60-      LRB093 02890 SJM 02906 b
 1    adopt such policy as a rule in accordance with the provisions
 2    of the Illinois Administrative Procedure Act.
 3        On and after July 1, 1987, no entity  otherwise  eligible
 4    under  exemption  (c)  of  this  Section  shall make tax free
 5    purchases unless it has an  active  exemption  identification
 6    number issued by the Department.
 7        "Serviceman"  means  any  person  who  is  engaged in the
 8    occupation of making sales of service.
 9        "Sale at Retail" means "sale at retail" as defined in the
10    Retailers' Occupation Tax Act.
11        "Supplier" means any person who makes sales  of  tangible
12    personal  property to servicemen for the purpose of resale as
13    an incident to a sale of service.
14    (Source: P.A. 91-51,  eff.  6-30-99;  92-484,  eff.  8-23-01;
15    revised 11-22-02.)

16        (35 ILCS 115/2a) (from Ch. 120, par. 439.102a)
17        Sec. 2a. "Pollution control facilities" means any system,
18    method, construction, device or appliance appurtenant thereto
19    transferred  by  a  serviceman  for  the  primary  purpose of
20    eliminating, preventing, or reducing air and water  pollution
21    as  the  term "air pollution" or "water pollution" is defined
22    in the "Environmental Protection Act", enacted  by  the  76th
23    General  Assembly,  or  for  the primary purpose of treating,
24    pretreating, modifying or disposing of any  potential  solid,
25    liquid  or  gaseous  pollutant which if released without such
26    treatment, pretreatment, modification or  disposal  might  be
27    harmful,  detrimental  or offensive to human, plant or animal
28    life, or to property.
29        Until July 1, 2003, the purchase, employment and transfer
30    of such  tangible  personal  property  as  pollution  control
31    facilities  shall not be deemed to be a purchase, use or sale
32    of service or of tangible personal  property,  but  shall  be
33    deemed to be intangible personal property.
 
SB842 Enrolled             -61-      LRB093 02890 SJM 02906 b
 1    (Source: P.A. 76-2449.)

 2        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
 3        Sec.  3-5.  Exemptions.   The following tangible personal
 4    property is exempt from the tax imposed by this Act:
 5        (1)  Personal property sold by  a  corporation,  society,
 6    association,  foundation, institution, or organization, other
 7    than a limited  liability  company,  that  is  organized  and
 8    operated  as  a  not-for-profit  service  enterprise  for the
 9    benefit of persons 65 years of age or older if  the  personal
10    property  was not purchased by the enterprise for the purpose
11    of resale by the enterprise.
12        (2)  Personal  property  purchased  by  a  not-for-profit
13    Illinois county  fair  association  for  use  in  conducting,
14    operating, or promoting the county fair.
15        (3)  Personal  property  purchased  by any not-for-profit
16    arts or cultural  organization  that  establishes,  by  proof
17    required  by  the Department by rule, that it has received an
18    exemption  under Section 501(c)(3) of  the  Internal  Revenue
19    Code  and  that  is  organized and operated primarily for the
20    presentation or support  of  arts  or  cultural  programming,
21    activities,  or  services.   These organizations include, but
22    are not limited to, music  and  dramatic  arts  organizations
23    such  as  symphony orchestras and theatrical groups, arts and
24    cultural service organizations, local arts  councils,  visual
25    arts  organizations,  and  media  arts  organizations. On and
26    after the effective date of this amendatory Act of  the  92nd
27    General  Assembly,  however, an entity otherwise eligible for
28    this exemption shall not make tax-free  purchases  unless  it
29    has an active identification number issued by the Department.
30        (4)  Legal  tender,  currency,  medallions,  or  gold  or
31    silver   coinage   issued  by  the  State  of  Illinois,  the
32    government of the United States of America, or the government
33    of any foreign country, and bullion.
 
SB842 Enrolled             -62-      LRB093 02890 SJM 02906 b
 1        (5)  Until July  1,  2003,  graphic  arts  machinery  and
 2    equipment,  including  repair and replacement parts, both new
 3    and used, and including that manufactured on special order or
 4    purchased for lease, certified by the purchaser  to  be  used
 5    primarily  for  graphic  arts  production. Equipment includes
 6    chemicals or chemicals acting as catalysts but  only  if  the
 7    chemicals  or  chemicals  acting as catalysts effect a direct
 8    and immediate change upon a graphic arts product.
 9        (6)  Personal  property  sold  by   a   teacher-sponsored
10    student   organization   affiliated  with  an  elementary  or
11    secondary school located in Illinois.
12        (7)  Farm machinery and equipment,  both  new  and  used,
13    including  that  manufactured  on special order, certified by
14    the purchaser to be used primarily for production agriculture
15    or  State  or  federal   agricultural   programs,   including
16    individual replacement parts for the machinery and equipment,
17    including  machinery  and  equipment purchased for lease, and
18    including implements of husbandry defined in Section 1-130 of
19    the Illinois Vehicle Code, farm  machinery  and  agricultural
20    chemical  and fertilizer spreaders, and nurse wagons required
21    to be registered under Section 3-809 of the Illinois  Vehicle
22    Code,  but  excluding  other  motor  vehicles  required to be
23    registered under the  Illinois  Vehicle  Code.  Horticultural
24    polyhouses  or  hoop houses used for propagating, growing, or
25    overwintering plants shall be considered farm  machinery  and
26    equipment  under  this item (7). Agricultural chemical tender
27    tanks and dry boxes shall include units sold separately  from
28    a  motor  vehicle  required  to  be  licensed  and units sold
29    mounted on a motor vehicle required to  be  licensed  if  the
30    selling price of the tender is separately stated.
31        Farm  machinery  and  equipment  shall  include precision
32    farming equipment  that  is  installed  or  purchased  to  be
33    installed  on farm machinery and equipment including, but not
34    limited  to,  tractors,   harvesters,   sprayers,   planters,
 
SB842 Enrolled             -63-      LRB093 02890 SJM 02906 b
 1    seeders,  or spreaders. Precision farming equipment includes,
 2    but is not  limited  to,  soil  testing  sensors,  computers,
 3    monitors,  software,  global positioning and mapping systems,
 4    and other such equipment.
 5        Farm machinery and  equipment  also  includes  computers,
 6    sensors,  software,  and  related equipment used primarily in
 7    the computer-assisted  operation  of  production  agriculture
 8    facilities,  equipment,  and  activities  such  as,  but  not
 9    limited  to,  the  collection, monitoring, and correlation of
10    animal and crop data for the purpose  of  formulating  animal
11    diets  and  agricultural  chemicals.  This item (7) is exempt
12    from the provisions of Section 3-55.
13        (8)  Fuel and petroleum products sold to or  used  by  an
14    air  common  carrier, certified by the carrier to be used for
15    consumption, shipment, or  storage  in  the  conduct  of  its
16    business  as an air common carrier, for a flight destined for
17    or returning from a location or locations outside the  United
18    States  without  regard  to  previous  or subsequent domestic
19    stopovers.
20        (9)  Proceeds of  mandatory  service  charges  separately
21    stated  on  customers' bills for the purchase and consumption
22    of food and beverages, to the extent that the proceeds of the
23    service charge are in fact  turned  over  as  tips  or  as  a
24    substitute for tips to the employees who participate directly
25    in  preparing,  serving,  hosting  or cleaning up the food or
26    beverage function with respect to which the service charge is
27    imposed.
28        (10)  Until  July  1,  2003,   oil   field   exploration,
29    drilling,  and  production  equipment, including (i) rigs and
30    parts of rigs, rotary rigs, cable  tool  rigs,  and  workover
31    rigs, (ii) pipe and tubular goods, including casing and drill
32    strings,  (iii) pumps and pump-jack units, (iv) storage tanks
33    and flow lines, (v) any individual replacement part  for  oil
34    field  exploration,  drilling,  and production equipment, and
 
SB842 Enrolled             -64-      LRB093 02890 SJM 02906 b
 1    (vi)  machinery  and  equipment  purchased  for  lease;   but
 2    excluding  motor vehicles required to be registered under the
 3    Illinois Vehicle Code.
 4        (11)  Photoprocessing machinery and equipment,  including
 5    repair  and  replacement  parts, both new and used, including
 6    that  manufactured  on  special  order,  certified   by   the
 7    purchaser  to  be  used  primarily  for  photoprocessing, and
 8    including photoprocessing machinery and  equipment  purchased
 9    for lease.
10        (12)  Until  July  1,  2003,  coal  exploration,  mining,
11    offhighway  hauling, processing, maintenance, and reclamation
12    equipment, including replacement  parts  and  equipment,  and
13    including  equipment purchased for lease, but excluding motor
14    vehicles required to be registered under the Illinois Vehicle
15    Code.
16        (13)  Food for human consumption that is to  be  consumed
17    off  the  premises  where  it  is  sold (other than alcoholic
18    beverages, soft drinks and food that has  been  prepared  for
19    immediate  consumption) and prescription and non-prescription
20    medicines, drugs,  medical  appliances,  and  insulin,  urine
21    testing  materials,  syringes, and needles used by diabetics,
22    for human use, when purchased for use by a  person  receiving
23    medical assistance under Article 5 of the Illinois Public Aid
24    Code  who  resides  in a licensed long-term care facility, as
25    defined in the Nursing Home Care Act.
26        (14)  Semen used for artificial insemination of livestock
27    for direct agricultural production.
28        (15)  Horses, or interests in horses, registered with and
29    meeting the requirements of any of  the  Arabian  Horse  Club
30    Registry  of  America, Appaloosa Horse Club, American Quarter
31    Horse Association, United  States  Trotting  Association,  or
32    Jockey Club, as appropriate, used for purposes of breeding or
33    racing for prizes.
34        (16)  Computers and communications equipment utilized for
 
SB842 Enrolled             -65-      LRB093 02890 SJM 02906 b
 1    any  hospital  purpose  and  equipment used in the diagnosis,
 2    analysis, or treatment of hospital patients sold to a  lessor
 3    who leases the equipment, under a lease of one year or longer
 4    executed  or  in  effect  at  the  time of the purchase, to a
 5    hospital  that  has  been  issued  an  active  tax  exemption
 6    identification number by the Department under Section  1g  of
 7    the Retailers' Occupation Tax Act.
 8        (17)  Personal  property  sold to a lessor who leases the
 9    property, under a lease of one year or longer executed or  in
10    effect  at  the  time of the purchase, to a governmental body
11    that has been issued an active tax  exemption  identification
12    number  by  the Department under Section 1g of the Retailers'
13    Occupation Tax Act.
14        (18)  Beginning with taxable years  ending  on  or  after
15    December  31, 1995 and ending with taxable years ending on or
16    before December 31, 2004, personal property that  is  donated
17    for  disaster  relief  to  be  used  in  a State or federally
18    declared disaster area in Illinois or bordering Illinois by a
19    manufacturer or retailer that is registered in this State  to
20    a   corporation,   society,   association,   foundation,   or
21    institution  that  has  been  issued  a  sales  tax exemption
22    identification number by the Department that assists  victims
23    of the disaster who reside within the declared disaster area.
24        (19)  Beginning  with  taxable  years  ending on or after
25    December 31, 1995 and ending with taxable years ending on  or
26    before  December  31, 2004, personal property that is used in
27    the performance of  infrastructure  repairs  in  this  State,
28    including  but  not  limited  to municipal roads and streets,
29    access roads, bridges,  sidewalks,  waste  disposal  systems,
30    water  and  sewer  line  extensions,  water  distribution and
31    purification facilities, storm water drainage  and  retention
32    facilities, and sewage treatment facilities, resulting from a
33    State or federally declared disaster in Illinois or bordering
34    Illinois  when  such  repairs  are  initiated  on  facilities
 
SB842 Enrolled             -66-      LRB093 02890 SJM 02906 b
 1    located  in  the declared disaster area within 6 months after
 2    the disaster.
 3        (20)  Beginning July 1, 1999, game or game birds sold  at
 4    a  "game  breeding  and  hunting preserve area" or an "exotic
 5    game hunting area" as those terms are used  in  the  Wildlife
 6    Code or at a hunting enclosure approved through rules adopted
 7    by  the  Department  of Natural Resources.  This paragraph is
 8    exempt from the provisions of Section 3-55.
 9        (21)  A motor vehicle, as that term is defined in Section
10    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
11    corporation, limited liability company, society, association,
12    foundation,   or   institution  that  is  determined  by  the
13    Department to  be  organized  and  operated  exclusively  for
14    educational  purposes.   For  purposes  of this exemption, "a
15    corporation, limited liability company, society, association,
16    foundation, or institution organized and operated exclusively
17    for educational  purposes"  means  all  tax-supported  public
18    schools, private schools that offer systematic instruction in
19    useful  branches  of  learning  by  methods  common to public
20    schools  and  that  compare  favorably  in  their  scope  and
21    intensity with the course of study presented in tax-supported
22    schools, and vocational or technical  schools  or  institutes
23    organized  and  operated  exclusively  to provide a course of
24    study of not less than  6  weeks  duration  and  designed  to
25    prepare  individuals to follow a trade or to pursue a manual,
26    technical, mechanical, industrial,  business,  or  commercial
27    occupation.
28        (22)  Beginning  January  1,  2000,   personal  property,
29    including  food, purchased through fundraising events for the
30    benefit of  a  public  or  private  elementary  or  secondary
31    school,  a  group  of  those  schools,  or one or more school
32    districts if the events are sponsored by an entity recognized
33    by the school district that consists primarily of  volunteers
34    and  includes  parents  and  teachers of the school children.
 
SB842 Enrolled             -67-      LRB093 02890 SJM 02906 b
 1    This paragraph does not apply to fundraising events  (i)  for
 2    the benefit of private home instruction or (ii) for which the
 3    fundraising  entity  purchases  the personal property sold at
 4    the events from another individual or entity  that  sold  the
 5    property  for the purpose of resale by the fundraising entity
 6    and that profits from the sale  to  the  fundraising  entity.
 7    This paragraph is exempt from the provisions of Section 3-55.
 8        (23)  Beginning  January 1, 2000 and through December 31,
 9    2001, new or used automatic vending machines that prepare and
10    serve hot food and beverages,  including  coffee,  soup,  and
11    other  items,  and  replacement  parts  for  these  machines.
12    Beginning January 1, 2002 and through June 30, 2003, machines
13    and  parts  for  machines  used  in commercial, coin-operated
14    amusement and vending business if a use or occupation tax  is
15    paid  on  the  gross  receipts  derived  from  the use of the
16    commercial, coin-operated  amusement  and  vending  machines.
17    This paragraph is exempt from the provisions of Section 3-55.
18        (24)  Beginning  on the effective date of this amendatory
19    Act   of   the   92nd   General   Assembly,   computers   and
20    communications equipment utilized for  any  hospital  purpose
21    and  equipment  used in the diagnosis, analysis, or treatment
22    of  hospital  patients  sold  to  a  lessor  who  leases  the
23    equipment, under a lease of one year or longer executed or in
24    effect at the time of the purchase, to a  hospital  that  has
25    been  issued an active tax exemption identification number by
26    the Department under Section 1g of the Retailers'  Occupation
27    Tax  Act.   This  paragraph  is exempt from the provisions of
28    Section 3-55.
29        (25)  Beginning on the effective date of this  amendatory
30    Act of the 92nd General Assembly, personal property sold to a
31    lessor  who leases the property, under a lease of one year or
32    longer executed or in effect at the time of the purchase,  to
33    a  governmental  body  that  has  been  issued  an active tax
34    exemption  identification  number  by  the  Department  under
 
SB842 Enrolled             -68-      LRB093 02890 SJM 02906 b
 1    Section 1g  of  the  Retailers'  Occupation  Tax  Act.   This
 2    paragraph is exempt from the provisions of Section 3-55.
 3        (26)  Beginning  on  January  1,  2002, tangible personal
 4    property purchased from an Illinois retailer  by  a  taxpayer
 5    engaged  in centralized purchasing activities in Illinois who
 6    will, upon receipt of the property in  Illinois,  temporarily
 7    store  the  property  in  Illinois  (i)  for  the  purpose of
 8    subsequently transporting it outside this State  for  use  or
 9    consumption  thereafter solely outside this State or (ii) for
10    the purpose of being processed, fabricated,  or  manufactured
11    into,  attached  to,  or  incorporated  into  other  tangible
12    personal  property  to  be transported outside this State and
13    thereafter used or consumed solely outside this  State.   The
14    Director  of  Revenue  shall,  pursuant  to  rules adopted in
15    accordance with the Illinois  Administrative  Procedure  Act,
16    issue  a  permit  to  any  taxpayer in good standing with the
17    Department who is  eligible  for  the  exemption  under  this
18    paragraph  (26).  The permit issued under this paragraph (26)
19    shall authorize the holder, to the extent and in  the  manner
20    specified  in  the  rules adopted under this Act, to purchase
21    tangible personal property from a retailer  exempt  from  the
22    taxes  imposed  by  this  Act.   Taxpayers shall maintain all
23    necessary books and  records  to  substantiate  the  use  and
24    consumption of all such tangible personal property outside of
25    the State of Illinois.
26    (Source: P.A.  91-51,  eff.  6-30-99;  91-200,  eff. 7-20-99;
27    91-439, eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637,  eff.
28    8-20-99;  91-644,  eff.  8-20-99; 92-16, eff. 6-28-01; 92-35,
29    eff. 7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff.  8-10-01;
30    92-484,  eff.  8-23-01;  92-488,  eff.  8-23-01; 92-651, eff.
31    7-11-02.)

32        (35 ILCS 115/3-7)
33        Sec.  3-7.  Aggregate  manufacturing  exemption.  Through
 
SB842 Enrolled             -69-      LRB093 02890 SJM 02906 b
 1    June 30,  2003  December  31,  2007,  aggregate  exploration,
 2    mining,  offhighway  hauling,  processing,  maintenance,  and
 3    reclamation   equipment,   including  replacement  parts  and
 4    equipment, and including equipment purchased for  lease,  but
 5    excluding  motor vehicles required to be registered under the
 6    Illinois Vehicle Code, is exempt from the tax imposed by this
 7    Act.
 8    (Source: P.A. 92-603, eff. 6-28-02.)

 9        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
10        Sec.  9.   Each  serviceman  required  or  authorized  to
11    collect the tax herein imposed shall pay  to  the  Department
12    the  amount  of  such  tax at the time when he is required to
13    file his return for the period  during  which  such  tax  was
14    collectible,  less  a  discount  of  2.1% prior to January 1,
15    1990, and 1.75% on and after  January  1,  1990,  or  $5  per
16    calendar  year,  whichever  is  greater,  which is allowed to
17    reimburse the serviceman for expenses incurred in  collecting
18    the  tax,  keeping  records,  preparing  and  filing returns,
19    remitting the tax and supplying data  to  the  Department  on
20    request.
21        Where  such  tangible  personal  property is sold under a
22    conditional sales contract, or under any other form  of  sale
23    wherein  the payment of the principal sum, or a part thereof,
24    is extended beyond the close of  the  period  for  which  the
25    return  is  filed,  the serviceman, in collecting the tax may
26    collect, for each tax return period, only the tax  applicable
27    to  the  part  of  the selling price actually received during
28    such tax return period.
29        Except as provided hereinafter in  this  Section,  on  or
30    before  the  twentieth  day  of  each  calendar  month,  such
31    serviceman  shall  file  a  return for the preceding calendar
32    month in accordance with reasonable rules and regulations  to
33    be  promulgated  by  the  Department of Revenue.  Such return
 
SB842 Enrolled             -70-      LRB093 02890 SJM 02906 b
 1    shall be filed on a form prescribed  by  the  Department  and
 2    shall   contain   such  information  as  the  Department  may
 3    reasonably require.
 4        The Department may require  returns  to  be  filed  on  a
 5    quarterly  basis.  If so required, a return for each calendar
 6    quarter shall be filed on or before the twentieth day of  the
 7    calendar  month  following  the end of such calendar quarter.
 8    The taxpayer shall also file a return with the Department for
 9    each of the first two months of each calendar quarter, on  or
10    before  the  twentieth  day  of the following calendar month,
11    stating:
12             1.  The name of the seller;
13             2.  The address of the principal place  of  business
14        from which he engages in business as a serviceman in this
15        State;
16             3.  The total amount of taxable receipts received by
17        him   during  the  preceding  calendar  month,  including
18        receipts  from  charge  and  time  sales,  but  less  all
19        deductions allowed by law;
20             4.  The amount of credit provided in Section  2d  of
21        this Act;
22             5.  The amount of tax due;
23             5-5.  The signature of the taxpayer; and
24             6.  Such   other   reasonable   information  as  the
25        Department may require.
26        If a taxpayer fails to sign a return within 30 days after
27    the proper notice and demand for signature by the Department,
28    the return shall be considered valid and any amount shown  to
29    be due on the return shall be deemed assessed.
30        Prior  to  October  1,  2003,  a  serviceman may accept a
31    Manufacturer's Purchase Credit certification from a purchaser
32    in satisfaction of Service Use Tax  as  provided  in  Section
33    3-70 of the Service Use Tax Act if the purchaser provides the
34    appropriate  documentation as required by Section 3-70 of the
 
SB842 Enrolled             -71-      LRB093 02890 SJM 02906 b
 1    Service Use  Tax  Act.    A  Manufacturer's  Purchase  Credit
 2    certification,  accepted  prior  to  October  1,  2003  by  a
 3    serviceman as provided in Section 3-70 of the Service Use Tax
 4    Act,  may  be  used  by  that  serviceman  to satisfy Service
 5    Occupation  Tax  liability  in  the  amount  claimed  in  the
 6    certification, not to exceed 6.25% of the receipts subject to
 7    tax from a qualifying purchase.   A  Manufacturer's  Purchase
 8    Credit reported on any original or amended return filed under
 9    this  Act  after  October  20,  2003 shall be disallowed.  No
10    Manufacturer's Purchase Credit may be  used  after  September
11    30, 2003 to satisfy any tax liability imposed under this Act,
12    including any audit liability.
13        If  the serviceman's average monthly tax liability to the
14    Department does not exceed $200, the Department may authorize
15    his returns to be filed on a quarter annual basis,  with  the
16    return  for January, February and March of a given year being
17    due by April 20 of such year; with the return for April,  May
18    and  June  of a given year being due by July 20 of such year;
19    with the return for July, August and  September  of  a  given
20    year  being  due  by  October  20  of such year, and with the
21    return for October, November and December  of  a  given  year
22    being due by January 20 of the following year.
23        If  the serviceman's average monthly tax liability to the
24    Department does not exceed $50, the Department may  authorize
25    his  returns  to be filed on an annual basis, with the return
26    for a given year being due by January  20  of  the  following
27    year.
28        Such  quarter  annual  and annual returns, as to form and
29    substance, shall be  subject  to  the  same  requirements  as
30    monthly returns.
31        Notwithstanding   any   other   provision   in  this  Act
32    concerning the time within which a serviceman  may  file  his
33    return, in the case of any serviceman who ceases to engage in
34    a  kind  of  business  which makes him responsible for filing
 
SB842 Enrolled             -72-      LRB093 02890 SJM 02906 b
 1    returns under this Act, such serviceman shall  file  a  final
 2    return  under  this  Act  with the Department not more than 1
 3    month after discontinuing such business.
 4        Beginning October 1, 1993, a taxpayer who has an  average
 5    monthly  tax  liability  of  $150,000  or more shall make all
 6    payments required by rules of the  Department  by  electronic
 7    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
 8    has an average monthly tax  liability  of  $100,000  or  more
 9    shall  make  all payments required by rules of the Department
10    by electronic funds transfer.  Beginning October 1,  1995,  a
11    taxpayer  who has an average monthly tax liability of $50,000
12    or more shall make all payments  required  by  rules  of  the
13    Department  by  electronic funds transfer.  Beginning October
14    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
15    $200,000 or more shall make all payments required by rules of
16    the  Department  by  electronic  funds  transfer.   The  term
17    "annual  tax  liability"  shall  be the sum of the taxpayer's
18    liabilities under this Act, and under  all  other  State  and
19    local  occupation  and  use  tax  laws  administered  by  the
20    Department,  for the immediately preceding calendar year. The
21    term "average monthly tax liability" means  the  sum  of  the
22    taxpayer's  liabilities  under  this Act, and under all other
23    State and local occupation and use tax laws  administered  by
24    the  Department,  for the immediately preceding calendar year
25    divided by 12. Beginning on October 1, 2002, a  taxpayer  who
26    has a tax liability in the amount set forth in subsection (b)
27    of  Section  2505-210  of the Department of Revenue Law shall
28    make all payments required by  rules  of  the  Department  by
29    electronic funds transfer.
30        Before  August  1  of  each  year  beginning in 1993, the
31    Department  shall  notify  all  taxpayers  required  to  make
32    payments  by  electronic  funds  transfer.    All   taxpayers
33    required  to make payments by electronic funds transfer shall
34    make those payments for a minimum of one  year  beginning  on
 
SB842 Enrolled             -73-      LRB093 02890 SJM 02906 b
 1    October 1.
 2        Any  taxpayer not required to make payments by electronic
 3    funds transfer may make payments by electronic funds transfer
 4    with the permission of the Department.
 5        All taxpayers required  to  make  payment  by  electronic
 6    funds  transfer  and  any taxpayers authorized to voluntarily
 7    make payments by electronic funds transfer shall  make  those
 8    payments in the manner authorized by the Department.
 9        The Department shall adopt such rules as are necessary to
10    effectuate  a  program  of  electronic funds transfer and the
11    requirements of this Section.
12        Where a serviceman collects the tax with respect  to  the
13    selling  price  of  tangible personal property which he sells
14    and the purchaser thereafter returns such  tangible  personal
15    property and the serviceman refunds the selling price thereof
16    to  the  purchaser, such serviceman shall also refund, to the
17    purchaser, the tax so collected  from  the  purchaser.   When
18    filing his return for the period in which he refunds such tax
19    to the purchaser, the serviceman may deduct the amount of the
20    tax  so  refunded  by  him  to  the  purchaser from any other
21    Service  Occupation  Tax,   Service   Use   Tax,   Retailers'
22    Occupation  Tax  or  Use  Tax  which  such  serviceman may be
23    required to pay or remit to the Department, as shown by  such
24    return,  provided  that  the amount of the tax to be deducted
25    shall previously have been remitted to the Department by such
26    serviceman.  If the  serviceman  shall  not  previously  have
27    remitted  the  amount of such tax to the Department, he shall
28    be entitled to no deduction hereunder upon refunding such tax
29    to the purchaser.
30        If experience indicates such action  to  be  practicable,
31    the  Department  may  prescribe  and furnish a combination or
32    joint return which will enable servicemen, who  are  required
33    to  file  returns  hereunder  and  also  under the Retailers'
34    Occupation Tax Act, the Use Tax Act or the  Service  Use  Tax
 
SB842 Enrolled             -74-      LRB093 02890 SJM 02906 b
 1    Act,  to  furnish  all the return information required by all
 2    said Acts on the one form.
 3        Where  the  serviceman  has  more   than   one   business
 4    registered  with  the Department under separate registrations
 5    hereunder, such serviceman shall file  separate  returns  for
 6    each registered business.
 7        Beginning  January  1,  1990,  each  month the Department
 8    shall pay into the Local  Government  Tax  Fund  the  revenue
 9    realized  for the preceding month from the 1% tax on sales of
10    food for human consumption which is to be  consumed  off  the
11    premises  where  it  is sold (other than alcoholic beverages,
12    soft drinks and food which has been  prepared  for  immediate
13    consumption)  and prescription and nonprescription medicines,
14    drugs,  medical  appliances  and   insulin,   urine   testing
15    materials, syringes and needles used by diabetics.
16        Beginning  January  1,  1990,  each  month the Department
17    shall pay into the County and Mass Transit District  Fund  4%
18    of  the  revenue  realized  for  the preceding month from the
19    6.25% general rate.
20        Beginning August 1, 2000, each month the Department shall
21    pay into the County and Mass Transit District Fund 20% of the
22    net revenue realized for the preceding month from  the  1.25%
23    rate on the selling price of motor fuel and gasohol.
24        Beginning  January  1,  1990,  each  month the Department
25    shall pay into the Local  Government  Tax  Fund  16%  of  the
26    revenue  realized  for  the  preceding  month  from the 6.25%
27    general rate on transfers of tangible personal property.
28        Beginning August 1, 2000, each month the Department shall
29    pay into the Local Government Tax Fund 80% of the net revenue
30    realized for the preceding month from the 1.25% rate  on  the
31    selling price of motor fuel and gasohol.
32        Of the remainder of the moneys received by the Department
33    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
34    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
 
SB842 Enrolled             -75-      LRB093 02890 SJM 02906 b
 1    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
 2    into the Build Illinois Fund; provided, however, that  if  in
 3    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 4    as  the case may be, of the moneys received by the Department
 5    and required to be paid into the Build Illinois Fund pursuant
 6    to Section 3 of the Retailers' Occupation Tax Act, Section  9
 7    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 8    Section  9 of the Service Occupation Tax Act, such Acts being
 9    hereinafter called the "Tax Acts" and such aggregate of  2.2%
10    or  3.8%,  as  the  case  may be, of moneys being hereinafter
11    called the "Tax Act Amount", and (2) the  amount  transferred
12    to the Build Illinois Fund from the State and Local Sales Tax
13    Reform  Fund  shall  be less than the Annual Specified Amount
14    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
15    Act),  an amount equal to the difference shall be immediately
16    paid into the Build Illinois Fund from other moneys  received
17    by  the  Department  pursuant  to  the  Tax Acts; and further
18    provided, that if on the last business day of any  month  the
19    sum  of  (1) the Tax Act Amount required to be deposited into
20    the Build Illinois Account in the Build Illinois Fund  during
21    such  month  and (2) the amount transferred during such month
22    to the Build Illinois Fund from the State and Local Sales Tax
23    Reform Fund shall have been less  than  1/12  of  the  Annual
24    Specified  Amount, an amount equal to the difference shall be
25    immediately paid into the  Build  Illinois  Fund  from  other
26    moneys  received  by the Department pursuant to the Tax Acts;
27    and, further provided, that in no event  shall  the  payments
28    required  under  the  preceding  proviso  result in aggregate
29    payments into the Build Illinois Fund pursuant to this clause
30    (b) for any fiscal year in excess of the greater of  (i)  the
31    Tax  Act  Amount or (ii) the Annual Specified Amount for such
32    fiscal year; and, further provided, that the amounts  payable
33    into  the  Build Illinois Fund under this clause (b) shall be
34    payable only until such  time  as  the  aggregate  amount  on
 
SB842 Enrolled             -76-      LRB093 02890 SJM 02906 b
 1    deposit  under each trust indenture securing Bonds issued and
 2    outstanding pursuant  to  the  Build  Illinois  Bond  Act  is
 3    sufficient, taking into account any future investment income,
 4    to  fully provide, in accordance with such indenture, for the
 5    defeasance of or the payment of the principal of, premium, if
 6    any, and interest on the Bonds secured by such indenture  and
 7    on  any  Bonds  expected to be issued thereafter and all fees
 8    and costs payable with respect thereto, all as  certified  by
 9    the  Director  of  the  Bureau of the Budget.  If on the last
10    business day of any month  in  which  Bonds  are  outstanding
11    pursuant to the Build Illinois Bond Act, the aggregate of the
12    moneys  deposited  in  the Build Illinois Bond Account in the
13    Build Illinois Fund in such month  shall  be  less  than  the
14    amount  required  to  be  transferred  in such month from the
15    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
16    Retirement  and  Interest  Fund pursuant to Section 13 of the
17    Build Illinois Bond Act, an amount equal to  such  deficiency
18    shall  be  immediately paid from other moneys received by the
19    Department pursuant to the Tax Acts  to  the  Build  Illinois
20    Fund;  provided,  however, that any amounts paid to the Build
21    Illinois Fund in any fiscal year pursuant  to  this  sentence
22    shall be deemed to constitute payments pursuant to clause (b)
23    of  the  preceding  sentence  and  shall  reduce  the  amount
24    otherwise payable for such fiscal year pursuant to clause (b)
25    of  the  preceding  sentence.   The  moneys  received  by the
26    Department pursuant to this Act and required to be  deposited
27    into the Build Illinois Fund are subject to the pledge, claim
28    and charge set forth in Section 12 of the Build Illinois Bond
29    Act.
30        Subject  to  payment  of  amounts into the Build Illinois
31    Fund as  provided  in  the  preceding  paragraph  or  in  any
32    amendment  thereto hereafter enacted, the following specified
33    monthly  installment  of  the   amount   requested   in   the
34    certificate  of  the  Chairman  of  the Metropolitan Pier and
 
SB842 Enrolled             -77-      LRB093 02890 SJM 02906 b
 1    Exposition Authority provided  under  Section  8.25f  of  the
 2    State  Finance  Act, but not in excess of the sums designated
 3    as "Total Deposit", shall be deposited in the aggregate  from
 4    collections  under Section 9 of the Use Tax Act, Section 9 of
 5    the Service Use Tax Act, Section 9 of the Service  Occupation
 6    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
 7    into the  McCormick  Place  Expansion  Project  Fund  in  the
 8    specified fiscal years.
 9               Fiscal Year                           Total Deposit
10                   1993                                        $0
11                   1994                                53,000,000
12                   1995                                58,000,000
13                   1996                                61,000,000
14                   1997                                64,000,000
15                   1998                                68,000,000
16                   1999                                71,000,000
17                   2000                                75,000,000
18                   2001                                80,000,000
19                   2002                                93,000,000
20                   2003                                99,000,000
21                   2004                               103,000,000
22                   2005                               108,000,000
23                   2006                               113,000,000
24                   2007                               119,000,000
25                   2008                               126,000,000
26                   2009                               132,000,000
27                   2010                               139,000,000
28                   2011                               146,000,000
29                   2012                               153,000,000
30                   2013                               161,000,000
31                   2014                               170,000,000
32                   2015                               179,000,000
33                   2016                               189,000,000
34                   2017                               199,000,000
 
SB842 Enrolled             -78-      LRB093 02890 SJM 02906 b
 1                   2018                               210,000,000
 2                   2019                               221,000,000
 3                   2020                               233,000,000
 4                   2021                               246,000,000
 5                   2022                               260,000,000
 6                 2023 and                             275,000,000
 7    each fiscal year
 8    thereafter that bonds
 9    are outstanding under
10    Section 13.2 of the
11    Metropolitan Pier and
12    Exposition Authority
13    Act, but not after fiscal year 2042.
14        Beginning  July 20, 1993 and in each month of each fiscal
15    year thereafter, one-eighth of the amount  requested  in  the
16    certificate  of  the  Chairman  of  the Metropolitan Pier and
17    Exposition Authority for that fiscal year,  less  the  amount
18    deposited  into the McCormick Place Expansion Project Fund by
19    the State Treasurer in the respective month under  subsection
20    (g)  of  Section  13  of the Metropolitan Pier and Exposition
21    Authority Act, plus cumulative deficiencies in  the  deposits
22    required  under  this  Section for previous months and years,
23    shall be deposited into the McCormick Place Expansion Project
24    Fund, until the full amount requested for  the  fiscal  year,
25    but  not  in  excess  of the amount specified above as "Total
26    Deposit", has been deposited.
27        Subject to payment of amounts  into  the  Build  Illinois
28    Fund  and the McCormick Place Expansion Project Fund pursuant
29    to the preceding paragraphs  or  in  any  amendments  thereto
30    hereafter  enacted,  beginning  July  1, 1993, the Department
31    shall each month pay into the  Illinois  Tax  Increment  Fund
32    0.27%  of  80%  of the net revenue realized for the preceding
33    month from the 6.25% general rate on  the  selling  price  of
34    tangible personal property.
 
SB842 Enrolled             -79-      LRB093 02890 SJM 02906 b
 1        Subject  to  payment  of  amounts into the Build Illinois
 2    Fund and the McCormick Place Expansion Project Fund  pursuant
 3    to  the  preceding  paragraphs  or  in any amendments thereto
 4    hereafter enacted, beginning with the receipt  of  the  first
 5    report  of  taxes paid by an eligible business and continuing
 6    for a 25-year period, the Department  shall  each  month  pay
 7    into  the  Energy  Infrastructure Fund 80% of the net revenue
 8    realized from the 6.25% general rate on the selling price  of
 9    Illinois-mined  coal  that  was sold to an eligible business.
10    For purposes of this paragraph, the term "eligible  business"
11    means  a  new electric generating facility certified pursuant
12    to  Section  605-332  of  the  Department  of  Commerce   and
13    Community  Affairs  Law  of  the Civil Administrative Code of
14    Illinois.
15        Remaining moneys received by the Department  pursuant  to
16    this  Act  shall be paid into the General Revenue Fund of the
17    State Treasury.
18        The Department may, upon separate  written  notice  to  a
19    taxpayer,  require  the taxpayer to prepare and file with the
20    Department on a form prescribed by the Department within  not
21    less  than  60  days  after  receipt  of the notice an annual
22    information return for the tax year specified in the  notice.
23    Such   annual  return  to  the  Department  shall  include  a
24    statement of gross receipts as shown by the  taxpayer's  last
25    Federal  income  tax  return.   If  the total receipts of the
26    business as reported in the Federal income tax return do  not
27    agree  with  the gross receipts reported to the Department of
28    Revenue for the same period, the taxpayer shall attach to his
29    annual return a schedule showing a reconciliation  of  the  2
30    amounts  and  the reasons for the difference.  The taxpayer's
31    annual return to the Department shall also disclose the  cost
32    of goods sold by the taxpayer during the year covered by such
33    return,  opening  and  closing  inventories of such goods for
34    such year, cost of goods used from stock or taken from  stock
 
SB842 Enrolled             -80-      LRB093 02890 SJM 02906 b
 1    and  given  away  by  the taxpayer during such year, pay roll
 2    information of the taxpayer's business during such  year  and
 3    any  additional  reasonable  information which the Department
 4    deems would be helpful in determining  the  accuracy  of  the
 5    monthly,  quarterly  or annual returns filed by such taxpayer
 6    as hereinbefore provided for in this Section.
 7        If the annual information return required by this Section
 8    is not filed when and as  required,  the  taxpayer  shall  be
 9    liable as follows:
10             (i)  Until  January  1,  1994, the taxpayer shall be
11        liable for a penalty equal to 1/6 of 1% of  the  tax  due
12        from such taxpayer under this Act during the period to be
13        covered  by  the annual return for each month or fraction
14        of a month until such return is filed  as  required,  the
15        penalty  to  be assessed and collected in the same manner
16        as any other penalty provided for in this Act.
17             (ii)  On and after January  1,  1994,  the  taxpayer
18        shall be liable for a penalty as described in Section 3-4
19        of the Uniform Penalty and Interest Act.
20        The chief executive officer, proprietor, owner or highest
21    ranking  manager  shall sign the annual return to certify the
22    accuracy of the information contained  therein.   Any  person
23    who  willfully  signs  the  annual return containing false or
24    inaccurate  information  shall  be  guilty  of  perjury   and
25    punished  accordingly.   The annual return form prescribed by
26    the Department  shall  include  a  warning  that  the  person
27    signing the return may be liable for perjury.
28        The  foregoing  portion  of  this  Section concerning the
29    filing of an annual information return shall not apply  to  a
30    serviceman  who  is not required to file an income tax return
31    with the United States Government.
32        As soon as possible after the first day  of  each  month,
33    upon   certification   of  the  Department  of  Revenue,  the
34    Comptroller shall order transferred and the  Treasurer  shall
 
SB842 Enrolled             -81-      LRB093 02890 SJM 02906 b
 1    transfer  from the General Revenue Fund to the Motor Fuel Tax
 2    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
 3    realized  under  this  Act  for  the  second preceding month.
 4    Beginning April 1, 2000, this transfer is no longer  required
 5    and shall not be made.
 6        Net  revenue  realized  for  a month shall be the revenue
 7    collected by the State pursuant to this Act, less the  amount
 8    paid  out  during  that  month  as  refunds  to taxpayers for
 9    overpayment of liability.
10        For greater simplicity of  administration,  it  shall  be
11    permissible  for  manufacturers,  importers  and  wholesalers
12    whose  products  are sold by numerous servicemen in Illinois,
13    and who wish to do  so,  to  assume  the  responsibility  for
14    accounting  and  paying  to  the  Department all tax accruing
15    under this Act with respect to such sales, if the  servicemen
16    who  are  affected  do  not  make  written  objection  to the
17    Department to this arrangement.
18    (Source: P.A.  91-37,  eff.  7-1-99;  91-51,  eff.   6-30-99;
19    91-101,  eff.  7-12-99;  91-541,  eff.  8-13-99; 91-872, eff.
20    7-1-00; 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, eff.
21    1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02.)

22        Section 50-25.  The  Retailers'  Occupation  Tax  Act  is
23    amended by changing Sections 1a, 2-5, 2-7, and 3 as follows:

24        (35 ILCS 120/1a) (from Ch. 120, par. 440a)
25        Sec. 1a. "Pollution control facilities" means any system,
26    method, construction, device or appliance appurtenant thereto
27    sold   or  used  or  intended  for  the  primary  purpose  of
28    eliminating, preventing, or reducing air and water  pollution
29    as  the  term "air pollution" or "water pollution" is defined
30    in the "Environmental Protection Act", enacted  by  the  76th
31    General  Assembly,  or  for  the primary purpose of treating,
32    pretreating, modifying or disposing of any  potential  solid,
 
SB842 Enrolled             -82-      LRB093 02890 SJM 02906 b
 1    liquid  or  gaseous  pollutant which if released without such
 2    treatment, pretreatment, modification or  disposal  might  be
 3    harmful,  detrimental  or offensive to human, plant or animal
 4    life, or to property.
 5        Until July 1, 2003, the purchase, employment and transfer
 6    of such  tangible  personal  property  as  pollution  control
 7    facilities  is  not  a  purchase,  use  or  sale  of tangible
 8    personal property.
 9    (Source: P.A. 76-2450.)

10        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
11        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
12    the sale of the  following  tangible  personal  property  are
13    exempt from the tax imposed by this Act:
14        (1)  Farm chemicals.
15        (2)  Farm  machinery  and  equipment,  both new and used,
16    including that manufactured on special  order,  certified  by
17    the purchaser to be used primarily for production agriculture
18    or   State   or   federal  agricultural  programs,  including
19    individual replacement parts for the machinery and equipment,
20    including machinery and equipment purchased  for  lease,  and
21    including implements of husbandry defined in Section 1-130 of
22    the  Illinois  Vehicle  Code, farm machinery and agricultural
23    chemical and fertilizer spreaders, and nurse wagons  required
24    to  be registered under Section 3-809 of the Illinois Vehicle
25    Code, but excluding  other  motor  vehicles  required  to  be
26    registered  under  the  Illinois  Vehicle Code. Horticultural
27    polyhouses or hoop houses used for propagating,  growing,  or
28    overwintering  plants  shall be considered farm machinery and
29    equipment under this item (2). Agricultural  chemical  tender
30    tanks  and dry boxes shall include units sold separately from
31    a motor vehicle  required  to  be  licensed  and  units  sold
32    mounted  on  a  motor vehicle required to be licensed, if the
33    selling price of the tender is separately stated.
 
SB842 Enrolled             -83-      LRB093 02890 SJM 02906 b
 1        Farm machinery  and  equipment  shall  include  precision
 2    farming  equipment  that  is  installed  or  purchased  to be
 3    installed on farm machinery and equipment including, but  not
 4    limited   to,   tractors,   harvesters,  sprayers,  planters,
 5    seeders, or spreaders. Precision farming equipment  includes,
 6    but  is  not  limited  to,  soil  testing sensors, computers,
 7    monitors, software, global positioning and  mapping  systems,
 8    and other such equipment.
 9        Farm  machinery  and  equipment  also includes computers,
10    sensors, software, and related equipment  used  primarily  in
11    the  computer-assisted  operation  of  production agriculture
12    facilities,  equipment,  and  activities  such  as,  but  not
13    limited to, the collection, monitoring,  and  correlation  of
14    animal  and  crop  data for the purpose of formulating animal
15    diets and agricultural chemicals.  This item  (7)  is  exempt
16    from the provisions of Section 2-70.
17        (3)  Until  July  1,  2003,  distillation  machinery  and
18    equipment,  sold  as a unit or kit, assembled or installed by
19    the retailer, certified by the user to be used only  for  the
20    production of ethyl alcohol that will be used for consumption
21    as  motor  fuel  or  as  a  component  of  motor fuel for the
22    personal use of the user, and not subject to sale or resale.
23        (4)  Until July  1,  2003,  graphic  arts  machinery  and
24    equipment,  including  repair and replacement parts, both new
25    and used, and including that manufactured on special order or
26    purchased for lease, certified by the purchaser  to  be  used
27    primarily  for  graphic  arts  production. Equipment includes
28    chemicals or chemicals acting as catalysts but  only  if  the
29    chemicals  or  chemicals  acting as catalysts effect a direct
30    and immediate change upon a graphic arts product.
31        (5)  A motor vehicle  of  the  first  division,  a  motor
32    vehicle of the second division that is a self-contained motor
33    vehicle  designed  or permanently converted to provide living
34    quarters for  recreational,  camping,  or  travel  use,  with
 
SB842 Enrolled             -84-      LRB093 02890 SJM 02906 b
 1    direct  walk  through  access to the living quarters from the
 2    driver's seat, or a motor vehicle of the second division that
 3    is of the van configuration designed for  the  transportation
 4    of not less than 7 nor more than 16 passengers, as defined in
 5    Section  1-146 of the Illinois Vehicle Code, that is used for
 6    automobile renting, as  defined  in  the  Automobile  Renting
 7    Occupation and Use Tax Act.
 8        (6)  Personal   property   sold  by  a  teacher-sponsored
 9    student  organization  affiliated  with  an   elementary   or
10    secondary school located in Illinois.
11        (7)  Until  July 1, 2003, proceeds of that portion of the
12    selling price of a passenger car the sale of which is subject
13    to the Replacement Vehicle Tax.
14        (8)  Personal property sold to an  Illinois  county  fair
15    association  for  use  in conducting, operating, or promoting
16    the county fair.
17        (9)  Personal property sold to a not-for-profit  arts  or
18    cultural  organization that establishes, by proof required by
19    the Department by rule, that it  has  received  an  exemption
20    under Section 501(c)(3) of the Internal Revenue Code and that
21    is  organized  and operated primarily for the presentation or
22    support of  arts  or  cultural  programming,  activities,  or
23    services.   These  organizations include, but are not limited
24    to, music and dramatic arts organizations  such  as  symphony
25    orchestras  and  theatrical groups, arts and cultural service
26    organizations,   local    arts    councils,    visual    arts
27    organizations, and media arts organizations. On and after the
28    effective  date  of  this  amendatory Act of the 92nd General
29    Assembly, however, an  entity  otherwise  eligible  for  this
30    exemption  shall not make tax-free purchases unless it has an
31    active identification number issued by the Department.
32        (10)  Personal property sold by a  corporation,  society,
33    association,  foundation, institution, or organization, other
34    than a limited  liability  company,  that  is  organized  and
 
SB842 Enrolled             -85-      LRB093 02890 SJM 02906 b
 1    operated  as  a  not-for-profit  service  enterprise  for the
 2    benefit of persons 65 years of age or older if  the  personal
 3    property  was not purchased by the enterprise for the purpose
 4    of resale by the enterprise.
 5        (11)  Personal property sold to a governmental body, to a
 6    corporation, society, association, foundation, or institution
 7    organized and operated exclusively for charitable, religious,
 8    or educational purposes, or to a not-for-profit  corporation,
 9    society,    association,    foundation,    institution,    or
10    organization  that  has  no compensated officers or employees
11    and  that  is  organized  and  operated  primarily  for   the
12    recreation  of  persons  55  years of age or older. A limited
13    liability company may qualify for the  exemption  under  this
14    paragraph  only if the limited liability company is organized
15    and operated exclusively for  educational  purposes.  On  and
16    after July 1, 1987, however, no entity otherwise eligible for
17    this exemption shall make tax-free purchases unless it has an
18    active identification number issued by the Department.
19        (12)  Personal  property  sold to interstate carriers for
20    hire for use as rolling stock moving in  interstate  commerce
21    or  to lessors under leases of one year or longer executed or
22    in effect at the time of purchase by interstate carriers  for
23    hire  for  use as rolling stock moving in interstate commerce
24    and equipment  operated  by  a  telecommunications  provider,
25    licensed  as  a  common carrier by the Federal Communications
26    Commission, which is permanently installed in or  affixed  to
27    aircraft moving in interstate commerce.
28        (13)  Proceeds from sales to owners, lessors, or shippers
29    of  tangible personal property that is utilized by interstate
30    carriers  for  hire  for  use  as  rolling  stock  moving  in
31    interstate   commerce   and   equipment   operated    by    a
32    telecommunications  provider, licensed as a common carrier by
33    the Federal Communications Commission, which  is  permanently
34    installed  in  or  affixed  to  aircraft moving in interstate
 
SB842 Enrolled             -86-      LRB093 02890 SJM 02906 b
 1    commerce.
 2        (14)  Machinery and equipment that will be  used  by  the
 3    purchaser,  or  a  lessee  of the purchaser, primarily in the
 4    process of  manufacturing  or  assembling  tangible  personal
 5    property  for  wholesale or retail sale or lease, whether the
 6    sale or lease is made directly by the manufacturer or by some
 7    other person, whether the materials used in the  process  are
 8    owned  by  the  manufacturer or some other person, or whether
 9    the sale or lease is made apart from or as an incident to the
10    seller's engaging in  the  service  occupation  of  producing
11    machines,  tools,  dies,  jigs,  patterns,  gauges,  or other
12    similar items of no commercial value on special order  for  a
13    particular purchaser.
14        (15)  Proceeds  of  mandatory  service charges separately
15    stated on customers' bills for purchase  and  consumption  of
16    food  and  beverages,  to the extent that the proceeds of the
17    service charge are in fact  turned  over  as  tips  or  as  a
18    substitute for tips to the employees who participate directly
19    in  preparing,  serving,  hosting  or cleaning up the food or
20    beverage function with respect to which the service charge is
21    imposed.
22        (16)  Petroleum products  sold  to  a  purchaser  if  the
23    seller  is prohibited by federal law from charging tax to the
24    purchaser.
25        (17)  Tangible personal property sold to a common carrier
26    by rail or motor that receives the physical possession of the
27    property in Illinois and that  transports  the  property,  or
28    shares  with  another common carrier in the transportation of
29    the property, out of Illinois on a standard uniform  bill  of
30    lading  showing  the seller of the property as the shipper or
31    consignor of the property to a destination outside  Illinois,
32    for use outside Illinois.
33        (18)  Legal  tender,  currency,  medallions,  or  gold or
34    silver  coinage  issued  by  the  State  of   Illinois,   the
 
SB842 Enrolled             -87-      LRB093 02890 SJM 02906 b
 1    government of the United States of America, or the government
 2    of any foreign country, and bullion.
 3        (19)  Until   July   1,   2003,  oil  field  exploration,
 4    drilling, and production equipment, including  (i)  rigs  and
 5    parts  of  rigs,  rotary  rigs, cable tool rigs, and workover
 6    rigs, (ii) pipe and tubular goods, including casing and drill
 7    strings, (iii) pumps and pump-jack units, (iv) storage  tanks
 8    and  flow  lines, (v) any individual replacement part for oil
 9    field exploration, drilling, and  production  equipment,  and
10    (vi)   machinery  and  equipment  purchased  for  lease;  but
11    excluding motor vehicles required to be registered under  the
12    Illinois Vehicle Code.
13        (20)  Photoprocessing  machinery and equipment, including
14    repair and replacement parts, both new  and  used,  including
15    that   manufactured   on  special  order,  certified  by  the
16    purchaser to  be  used  primarily  for  photoprocessing,  and
17    including  photoprocessing  machinery and equipment purchased
18    for lease.
19        (21)  Until  July  1,  2003,  coal  exploration,  mining,
20    offhighway hauling, processing, maintenance, and  reclamation
21    equipment,  including  replacement  parts  and equipment, and
22    including equipment purchased for lease, but excluding  motor
23    vehicles required to be registered under the Illinois Vehicle
24    Code.
25        (22)  Fuel  and  petroleum products sold to or used by an
26    air  carrier,  certified  by  the  carrier  to  be  used  for
27    consumption, shipment, or  storage  in  the  conduct  of  its
28    business  as an air common carrier, for a flight destined for
29    or returning from a location or locations outside the  United
30    States  without  regard  to  previous  or subsequent domestic
31    stopovers.
32        (23)  A  transaction  in  which  the  purchase  order  is
33    received by a florist who is located  outside  Illinois,  but
34    who has a florist located in Illinois deliver the property to
 
SB842 Enrolled             -88-      LRB093 02890 SJM 02906 b
 1    the purchaser or the purchaser's donee in Illinois.
 2        (24)  Fuel  consumed  or  used in the operation of ships,
 3    barges, or vessels that are used  primarily  in  or  for  the
 4    transportation  of  property or the conveyance of persons for
 5    hire on rivers  bordering  on  this  State  if  the  fuel  is
 6    delivered  by  the  seller to the purchaser's barge, ship, or
 7    vessel while it is afloat upon that bordering river.
 8        (25)  A motor vehicle sold in this State to a nonresident
 9    even though the motor vehicle is delivered to the nonresident
10    in this State, if the motor vehicle is not to  be  titled  in
11    this State, and if a drive-away permit is issued to the motor
12    vehicle  as provided in Section 3-603 of the Illinois Vehicle
13    Code or if the nonresident purchaser has vehicle registration
14    plates to transfer to the motor vehicle upon returning to his
15    or her home state.  The issuance of the drive-away permit  or
16    having the out-of-state registration plates to be transferred
17    is  prima  facie  evidence that the motor vehicle will not be
18    titled in this State.
19        (26)  Semen used for artificial insemination of livestock
20    for direct agricultural production.
21        (27)  Horses, or interests in horses, registered with and
22    meeting the requirements of any of  the  Arabian  Horse  Club
23    Registry  of  America, Appaloosa Horse Club, American Quarter
24    Horse Association, United  States  Trotting  Association,  or
25    Jockey Club, as appropriate, used for purposes of breeding or
26    racing for prizes.
27        (28)  Computers and communications equipment utilized for
28    any  hospital  purpose  and  equipment used in the diagnosis,
29    analysis, or treatment of hospital patients sold to a  lessor
30    who leases the equipment, under a lease of one year or longer
31    executed  or  in  effect  at  the  time of the purchase, to a
32    hospital  that  has  been  issued  an  active  tax  exemption
33    identification number by the Department under Section  1g  of
34    this Act.
 
SB842 Enrolled             -89-      LRB093 02890 SJM 02906 b
 1        (29)  Personal  property  sold to a lessor who leases the
 2    property, under a lease of one year or longer executed or  in
 3    effect  at  the  time of the purchase, to a governmental body
 4    that has been issued an active tax  exemption  identification
 5    number by the Department under Section 1g of this Act.
 6        (30)  Beginning  with  taxable  years  ending on or after
 7    December 31, 1995 and ending with taxable years ending on  or
 8    before  December  31, 2004, personal property that is donated
 9    for disaster relief to  be  used  in  a  State  or  federally
10    declared disaster area in Illinois or bordering Illinois by a
11    manufacturer  or retailer that is registered in this State to
12    a   corporation,   society,   association,   foundation,   or
13    institution that  has  been  issued  a  sales  tax  exemption
14    identification  number by the Department that assists victims
15    of the disaster who reside within the declared disaster area.
16        (31)  Beginning with taxable years  ending  on  or  after
17    December  31, 1995 and ending with taxable years ending on or
18    before December 31, 2004, personal property that is  used  in
19    the  performance  of  infrastructure  repairs  in this State,
20    including but not limited to  municipal  roads  and  streets,
21    access  roads,  bridges,  sidewalks,  waste disposal systems,
22    water and  sewer  line  extensions,  water  distribution  and
23    purification  facilities,  storm water drainage and retention
24    facilities, and sewage treatment facilities, resulting from a
25    State or federally declared disaster in Illinois or bordering
26    Illinois  when  such  repairs  are  initiated  on  facilities
27    located in the declared disaster area within 6  months  after
28    the disaster.
29        (32)  Beginning  July 1, 1999, game or game birds sold at
30    a "game breeding and hunting preserve  area"  or  an  "exotic
31    game  hunting  area"  as those terms are used in the Wildlife
32    Code or at a hunting enclosure approved through rules adopted
33    by the Department of Natural Resources.   This  paragraph  is
34    exempt from the provisions of Section 2-70.
 
SB842 Enrolled             -90-      LRB093 02890 SJM 02906 b
 1        (33)  A motor vehicle, as that term is defined in Section
 2    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
 3    corporation, limited liability company, society, association,
 4    foundation,  or  institution  that  is  determined   by   the
 5    Department  to  be  organized  and  operated  exclusively for
 6    educational purposes.  For purposes  of  this  exemption,  "a
 7    corporation, limited liability company, society, association,
 8    foundation, or institution organized and operated exclusively
 9    for  educational  purposes"  means  all  tax-supported public
10    schools, private schools that offer systematic instruction in
11    useful branches of  learning  by  methods  common  to  public
12    schools  and  that  compare  favorably  in  their  scope  and
13    intensity with the course of study presented in tax-supported
14    schools,  and  vocational  or technical schools or institutes
15    organized and operated exclusively to  provide  a  course  of
16    study  of  not  less  than  6  weeks duration and designed to
17    prepare individuals to follow a trade or to pursue a  manual,
18    technical,  mechanical,  industrial,  business, or commercial
19    occupation.
20        (34)  Beginning  January  1,  2000,  personal   property,
21    including  food, purchased through fundraising events for the
22    benefit of  a  public  or  private  elementary  or  secondary
23    school,  a  group  of  those  schools,  or one or more school
24    districts if the events are sponsored by an entity recognized
25    by the school district that consists primarily of  volunteers
26    and  includes  parents  and  teachers of the school children.
27    This paragraph does not apply to fundraising events  (i)  for
28    the benefit of private home instruction or (ii) for which the
29    fundraising  entity  purchases  the personal property sold at
30    the events from another individual or entity  that  sold  the
31    property  for the purpose of resale by the fundraising entity
32    and that profits from the sale  to  the  fundraising  entity.
33    This paragraph is exempt from the provisions of Section 2-70.
34        (35)  Beginning  January 1, 2000 and through December 31,
 
SB842 Enrolled             -91-      LRB093 02890 SJM 02906 b
 1    2001, new or used automatic vending machines that prepare and
 2    serve hot food and beverages,  including  coffee,  soup,  and
 3    other  items,  and  replacement  parts  for  these  machines.
 4    Beginning January 1, 2002 and through June 30, 2003, machines
 5    and  parts  for  machines  used  in commercial, coin-operated
 6    amusement and vending business if a use or occupation tax  is
 7    paid  on  the  gross  receipts  derived  from  the use of the
 8    commercial, coin-operated  amusement  and  vending  machines.
 9    This paragraph is exempt from the provisions of Section 2-70.
10        (35-5)  (36)  Food  for  human  consumption that is to be
11    consumed off the  premises  where  it  is  sold  (other  than
12    alcoholic  beverages,  soft  drinks,  and  food that has been
13    prepared for  immediate  consumption)  and  prescription  and
14    nonprescription  medicines,  drugs,  medical  appliances, and
15    insulin, urine testing materials, syringes, and needles  used
16    by  diabetics,  for  human  use,  when purchased for use by a
17    person receiving medical assistance under Article  5  of  the
18    Illinois  Public Aid Code who resides in a licensed long-term
19    care facility, as defined in the Nursing Home Care Act.
20        (36)  Beginning August 2, 2001 on the effective  date  of
21    this  amendatory  Act of the 92nd General Assembly, computers
22    and  communications  equipment  utilized  for  any   hospital
23    purpose  and  equipment  used  in the diagnosis, analysis, or
24    treatment of hospital patients sold to a  lessor  who  leases
25    the  equipment,  under a lease of one year or longer executed
26    or in effect at the time of the purchase, to a hospital  that
27    has been issued an active tax exemption identification number
28    by  the  Department  under  Section  1g  of  this  Act.  This
29    paragraph is exempt from the provisions of Section 2-70.
30        (37)  Beginning August 2, 2001 on the effective  date  of
31    this  amendatory  Act  of the 92nd General Assembly, personal
32    property sold to a lessor who leases the  property,  under  a
33    lease of one year or longer executed or in effect at the time
34    of  the purchase, to a governmental body that has been issued
 
SB842 Enrolled             -92-      LRB093 02890 SJM 02906 b
 1    an  active  tax  exemption  identification  number   by   the
 2    Department  under  Section 1g of this Act.  This paragraph is
 3    exempt from the provisions of Section 2-70.
 4        (38)  Beginning on January  1,  2002,  tangible  personal
 5    property  purchased  from  an Illinois retailer by a taxpayer
 6    engaged in centralized purchasing activities in Illinois  who
 7    will,  upon  receipt of the property in Illinois, temporarily
 8    store the  property  in  Illinois  (i)  for  the  purpose  of
 9    subsequently  transporting  it  outside this State for use or
10    consumption thereafter solely outside this State or (ii)  for
11    the  purpose  of being processed, fabricated, or manufactured
12    into,  attached  to,  or  incorporated  into  other  tangible
13    personal property to be transported outside  this  State  and
14    thereafter  used  or consumed solely outside this State.  The
15    Director of Revenue  shall,  pursuant  to  rules  adopted  in
16    accordance  with  the  Illinois Administrative Procedure Act,
17    issue a permit to any taxpayer  in  good  standing  with  the
18    Department  who  is  eligible  for  the  exemption under this
19    paragraph (38).  The permit issued under this paragraph  (38)
20    shall  authorize  the holder, to the extent and in the manner
21    specified in the rules adopted under this  Act,  to  purchase
22    tangible  personal  property  from a retailer exempt from the
23    taxes imposed by this  Act.   Taxpayers  shall  maintain  all
24    necessary  books  and  records  to  substantiate  the use and
25    consumption of all such tangible personal property outside of
26    the State of Illinois.
27    (Source: P.A. 91-51,  eff.  6-30-99;  91-200,  eff.  7-20-99;
28    91-439,  eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637, eff.
29    8-20-99; 91-644, eff. 8-20-99;  92-16, eff.  6-28-01;  92-35,
30    eff.  7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff. 8-10-01;
31    92-484, eff. 8-23-01;  92-488,  eff.  8-23-01;  92-651,  eff.
32    7-11-02; 92-680, eff. 7-16-02; revised 1-26-03.)

33        (35 ILCS 120/2-7)
 
SB842 Enrolled             -93-      LRB093 02890 SJM 02906 b
 1        Sec.  2-7.  Aggregate  manufacturing  exemption.  Through
 2    June 30, 2003 December 31, 2007, gross receipts from proceeds
 3    from  the  sale  of aggregate exploration, mining, offhighway
 4    hauling, processing, maintenance, and reclamation  equipment,
 5    including  replacement  parts  and  equipment,  and including
 6    equipment purchased for lease, but excluding  motor  vehicles
 7    required  to  be  registered under the Illinois Vehicle Code,
 8    are exempt from the tax imposed by this Act.
 9    (Source: P.A. 92-603, eff. 6-28-02.)

10        (35 ILCS 120/3) (from Ch. 120, par. 442)
11        Sec. 3.  Except as provided in this Section, on or before
12    the twentieth  day  of  each  calendar  month,  every  person
13    engaged in the business of selling tangible personal property
14    at  retail  in this State during the preceding calendar month
15    shall file a return with the Department, stating:
16             1.  The name of the seller;
17             2.  His residence address and  the  address  of  his
18        principal  place  of  business  and  the  address  of the
19        principal place of  business  (if  that  is  a  different
20        address) from which he engages in the business of selling
21        tangible personal property at retail in this State;
22             3.  Total  amount of receipts received by him during
23        the preceding calendar month or quarter, as the case  may
24        be,  from  sales  of tangible personal property, and from
25        services furnished, by him during such preceding calendar
26        month or quarter;
27             4.  Total  amount  received  by   him   during   the
28        preceding  calendar  month  or quarter on charge and time
29        sales of tangible personal property,  and  from  services
30        furnished, by him prior to the month or quarter for which
31        the return is filed;
32             5.  Deductions allowed by law;
33             6.  Gross receipts which were received by him during
 
SB842 Enrolled             -94-      LRB093 02890 SJM 02906 b
 1        the  preceding  calendar  month  or  quarter and upon the
 2        basis of which the tax is imposed;
 3             7.  The amount of credit provided in Section  2d  of
 4        this Act;
 5             8.  The amount of tax due;
 6             9.  The signature of the taxpayer; and
 7             10.  Such   other   reasonable  information  as  the
 8        Department may require.
 9        If a taxpayer fails to sign a return within 30 days after
10    the proper notice and demand for signature by the Department,
11    the return shall be considered valid and any amount shown  to
12    be due on the return shall be deemed assessed.
13        Each  return  shall  be  accompanied  by the statement of
14    prepaid tax issued pursuant to Section 2e for which credit is
15    claimed.
16        Prior to  October  1,  2003,  a  retailer  may  accept  a
17    Manufacturer's Purchase Credit certification from a purchaser
18    in satisfaction of Use Tax as provided in Section 3-85 of the
19    Use  Tax  Act  if  the  purchaser  provides  the  appropriate
20    documentation as required by Section 3-85 of the Use Tax Act.
21    A Manufacturer's Purchase Credit certification, accepted by a
22    retailer prior to October 1, 2003 as provided in Section 3-85
23    of  the  Use Tax Act, may be used by that retailer to satisfy
24    Retailers' Occupation Tax liability in the amount claimed  in
25    the  certification,  not  to  exceed  6.25%  of  the receipts
26    subject to tax from a qualifying purchase.  A  Manufacturer's
27    Purchase  Credit  reported  on any original or amended return
28    filed  under  this  Act  after  October  20,  2003  shall  be
29    disallowed.  No Manufacturer's Purchase Credit  may  be  used
30    after September 30, 2003 to satisfy any tax liability imposed
31    under this Act, including any audit liability.
32        The  Department  may  require  returns  to  be filed on a
33    quarterly basis.  If so required, a return for each  calendar
34    quarter  shall be filed on or before the twentieth day of the
 
SB842 Enrolled             -95-      LRB093 02890 SJM 02906 b
 1    calendar month following the end of  such  calendar  quarter.
 2    The taxpayer shall also file a return with the Department for
 3    each  of the first two months of each calendar quarter, on or
 4    before the twentieth day of  the  following  calendar  month,
 5    stating:
 6             1.  The name of the seller;
 7             2.  The  address  of the principal place of business
 8        from which he engages in the business of selling tangible
 9        personal property at retail in this State;
10             3.  The total amount of taxable receipts received by
11        him during the preceding calendar  month  from  sales  of
12        tangible  personal  property by him during such preceding
13        calendar month, including receipts from charge  and  time
14        sales, but less all deductions allowed by law;
15             4.  The  amount  of credit provided in Section 2d of
16        this Act;
17             5.  The amount of tax due; and
18             6.  Such  other  reasonable   information   as   the
19        Department may require.
20        If  a total amount of less than $1 is payable, refundable
21    or creditable, such amount shall be disregarded if it is less
22    than 50 cents and shall be increased to $1 if it is 50  cents
23    or more.
24        Beginning  October 1, 1993, a taxpayer who has an average
25    monthly tax liability of $150,000  or  more  shall  make  all
26    payments  required  by  rules of the Department by electronic
27    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
28    has  an  average  monthly  tax  liability of $100,000 or more
29    shall make all payments required by rules of  the  Department
30    by  electronic  funds transfer.  Beginning October 1, 1995, a
31    taxpayer who has an average monthly tax liability of  $50,000
32    or  more  shall  make  all  payments required by rules of the
33    Department by electronic funds transfer.   Beginning  October
34    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
 
SB842 Enrolled             -96-      LRB093 02890 SJM 02906 b
 1    $200,000 or more shall make all payments required by rules of
 2    the  Department  by  electronic  funds  transfer.   The  term
 3    "annual tax liability" shall be the  sum  of  the  taxpayer's
 4    liabilities  under  this  Act,  and under all other State and
 5    local  occupation  and  use  tax  laws  administered  by  the
 6    Department, for the immediately preceding calendar year.  The
 7    term  "average monthly tax liability" shall be the sum of the
 8    taxpayer's liabilities under this Act, and  under  all  other
 9    State  and  local occupation and use tax laws administered by
10    the Department, for the immediately preceding  calendar  year
11    divided  by  12. Beginning on October 1, 2002, a taxpayer who
12    has a tax liability in the amount set forth in subsection (b)
13    of Section 2505-210 of the Department of  Revenue  Law  shall
14    make  all  payments  required  by  rules of the Department by
15    electronic funds transfer.
16        Before August 1 of  each  year  beginning  in  1993,  the
17    Department  shall  notify  all  taxpayers  required  to  make
18    payments   by   electronic  funds  transfer.   All  taxpayers
19    required to make payments by electronic funds transfer  shall
20    make  those  payments  for a minimum of one year beginning on
21    October 1.
22        Any taxpayer not required to make payments by  electronic
23    funds transfer may make payments by electronic funds transfer
24    with the permission of the Department.
25        All  taxpayers  required  to  make  payment by electronic
26    funds transfer and any taxpayers  authorized  to  voluntarily
27    make  payments  by electronic funds transfer shall make those
28    payments in the manner authorized by the Department.
29        The Department shall adopt such rules as are necessary to
30    effectuate a program of electronic  funds  transfer  and  the
31    requirements of this Section.
32        Any  amount  which is required to be shown or reported on
33    any return or other document under this Act  shall,  if  such
34    amount  is  not  a  whole-dollar  amount, be increased to the
 
SB842 Enrolled             -97-      LRB093 02890 SJM 02906 b
 1    nearest whole-dollar amount in any case where the  fractional
 2    part  of  a  dollar is 50 cents or more, and decreased to the
 3    nearest whole-dollar amount where the fractional  part  of  a
 4    dollar is less than 50 cents.
 5        If  the  retailer is otherwise required to file a monthly
 6    return and if the retailer's average monthly tax liability to
 7    the Department does  not  exceed  $200,  the  Department  may
 8    authorize  his returns to be filed on a quarter annual basis,
 9    with the return for January, February and March  of  a  given
10    year  being due by April 20 of such year; with the return for
11    April, May and June of a given year being due by July  20  of
12    such  year; with the return for July, August and September of
13    a given year being due by October 20 of such year,  and  with
14    the return for October, November and December of a given year
15    being due by January 20 of the following year.
16        If  the  retailer is otherwise required to file a monthly
17    or quarterly return and if the retailer's average monthly tax
18    liability with  the  Department  does  not  exceed  $50,  the
19    Department may authorize his returns to be filed on an annual
20    basis,  with the return for a given year being due by January
21    20 of the following year.
22        Such quarter annual and annual returns, as  to  form  and
23    substance,  shall  be  subject  to  the  same requirements as
24    monthly returns.
25        Notwithstanding  any  other   provision   in   this   Act
26    concerning  the  time  within  which  a retailer may file his
27    return, in the case of any retailer who ceases to engage in a
28    kind of business  which  makes  him  responsible  for  filing
29    returns  under  this  Act,  such  retailer shall file a final
30    return under this Act with the Department not more  than  one
31    month after discontinuing such business.
32        Where   the  same  person  has  more  than  one  business
33    registered with the Department under  separate  registrations
34    under  this Act, such person may not file each return that is
 
SB842 Enrolled             -98-      LRB093 02890 SJM 02906 b
 1    due  as  a  single  return  covering  all   such   registered
 2    businesses,  but  shall  file  separate returns for each such
 3    registered business.
 4        In addition, with respect to motor vehicles,  watercraft,
 5    aircraft,  and  trailers  that  are required to be registered
 6    with an agency of this State,  every  retailer  selling  this
 7    kind  of  tangible  personal  property  shall  file, with the
 8    Department, upon a form to be prescribed and supplied by  the
 9    Department,  a separate return for each such item of tangible
10    personal property which the retailer sells, except  that  if,
11    in   the  same  transaction,  (i)  a  retailer  of  aircraft,
12    watercraft, motor vehicles or trailers  transfers  more  than
13    one aircraft, watercraft, motor vehicle or trailer to another
14    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
15    retailer  for  the  purpose  of  resale or (ii) a retailer of
16    aircraft, watercraft, motor vehicles, or  trailers  transfers
17    more than one aircraft, watercraft, motor vehicle, or trailer
18    to  a  purchaser  for  use  as  a qualifying rolling stock as
19    provided in Section 2-5 of this Act,  then  that  seller  may
20    report  the  transfer  of  all  aircraft,  watercraft,  motor
21    vehicles  or  trailers  involved  in  that transaction to the
22    Department on the same uniform invoice-transaction  reporting
23    return  form.   For  purposes  of  this Section, "watercraft"
24    means a Class 2, Class 3, or Class 4 watercraft as defined in
25    Section 3-2 of  the  Boat  Registration  and  Safety  Act,  a
26    personal  watercraft,  or  any  boat equipped with an inboard
27    motor.
28        Any retailer who sells only motor  vehicles,  watercraft,
29    aircraft, or trailers that are required to be registered with
30    an  agency  of  this State, so that all retailers' occupation
31    tax liability is required to be reported, and is reported, on
32    such transaction reporting returns and who is  not  otherwise
33    required  to file monthly or quarterly returns, need not file
34    monthly or quarterly returns.  However, those retailers shall
 
SB842 Enrolled             -99-      LRB093 02890 SJM 02906 b
 1    be required to file returns on an annual basis.
 2        The transaction reporting return, in the  case  of  motor
 3    vehicles  or trailers that are required to be registered with
 4    an agency of this State, shall be the same  document  as  the
 5    Uniform  Invoice referred to in Section 5-402 of The Illinois
 6    Vehicle Code and must  show  the  name  and  address  of  the
 7    seller;  the name and address of the purchaser; the amount of
 8    the  selling  price  including  the  amount  allowed  by  the
 9    retailer for traded-in property, if any; the  amount  allowed
10    by the retailer for the traded-in tangible personal property,
11    if  any,  to the extent to which Section 1 of this Act allows
12    an exemption for the value of traded-in property; the balance
13    payable after deducting  such  trade-in  allowance  from  the
14    total  selling price; the amount of tax due from the retailer
15    with respect to such transaction; the amount of tax collected
16    from the purchaser by the retailer on  such  transaction  (or
17    satisfactory  evidence  that  such  tax  is  not  due in that
18    particular instance, if that is claimed to be the fact);  the
19    place  and  date  of the sale; a sufficient identification of
20    the property sold; such other information as is  required  in
21    Section  5-402  of  The Illinois Vehicle Code, and such other
22    information as the Department may reasonably require.
23        The  transaction  reporting  return  in   the   case   of
24    watercraft  or aircraft must show the name and address of the
25    seller; the name and address of the purchaser; the amount  of
26    the  selling  price  including  the  amount  allowed  by  the
27    retailer  for  traded-in property, if any; the amount allowed
28    by the retailer for the traded-in tangible personal property,
29    if any, to the extent to which Section 1 of this  Act  allows
30    an exemption for the value of traded-in property; the balance
31    payable  after  deducting  such  trade-in  allowance from the
32    total selling price; the amount of tax due from the  retailer
33    with respect to such transaction; the amount of tax collected
34    from  the  purchaser  by the retailer on such transaction (or
 
SB842 Enrolled             -100-     LRB093 02890 SJM 02906 b
 1    satisfactory evidence that  such  tax  is  not  due  in  that
 2    particular  instance, if that is claimed to be the fact); the
 3    place and date of the sale, a  sufficient  identification  of
 4    the   property  sold,  and  such  other  information  as  the
 5    Department may reasonably require.
 6        Such transaction reporting  return  shall  be  filed  not
 7    later than 20 days after the day of delivery of the item that
 8    is  being  sold, but may be filed by the retailer at any time
 9    sooner than that if he chooses to  do  so.   The  transaction
10    reporting  return  and  tax  remittance or proof of exemption
11    from  the  Illinois  use  tax  may  be  transmitted  to   the
12    Department  by  way  of the State agency with which, or State
13    officer with whom the  tangible  personal  property  must  be
14    titled or registered (if titling or registration is required)
15    if  the Department and such agency or State officer determine
16    that  this  procedure  will  expedite   the   processing   of
17    applications for title or registration.
18        With each such transaction reporting return, the retailer
19    shall  remit  the  proper  amount of tax due (or shall submit
20    satisfactory evidence that the sale is not taxable if that is
21    the case), to the Department or  its  agents,  whereupon  the
22    Department  shall  issue,  in the purchaser's name, a use tax
23    receipt (or a certificate of exemption if the  Department  is
24    satisfied  that the particular sale is tax exempt) which such
25    purchaser may submit to  the  agency  with  which,  or  State
26    officer  with  whom,  he  must title or register the tangible
27    personal  property  that   is   involved   (if   titling   or
28    registration  is  required)  in  support  of such purchaser's
29    application for an Illinois certificate or other evidence  of
30    title or registration to such tangible personal property.
31        No  retailer's failure or refusal to remit tax under this
32    Act precludes a user, who has paid  the  proper  tax  to  the
33    retailer,  from  obtaining  his certificate of title or other
34    evidence of title or registration (if titling or registration
 
SB842 Enrolled             -101-     LRB093 02890 SJM 02906 b
 1    is required) upon satisfying the Department  that  such  user
 2    has paid the proper tax (if tax is due) to the retailer.  The
 3    Department  shall  adopt  appropriate  rules to carry out the
 4    mandate of this paragraph.
 5        If the user who would otherwise pay tax to  the  retailer
 6    wants  the transaction reporting return filed and the payment
 7    of the tax or proof  of  exemption  made  to  the  Department
 8    before the retailer is willing to take these actions and such
 9    user  has  not  paid  the  tax to the retailer, such user may
10    certify to the fact of such delay by  the  retailer  and  may
11    (upon  the  Department  being  satisfied of the truth of such
12    certification)  transmit  the  information  required  by  the
13    transaction reporting return and the remittance  for  tax  or
14    proof  of exemption directly to the Department and obtain his
15    tax receipt or exemption determination, in  which  event  the
16    transaction  reporting  return  and  tax remittance (if a tax
17    payment was required) shall be credited by the Department  to
18    the  proper  retailer's  account  with  the  Department,  but
19    without  the  2.1%  or  1.75%  discount  provided for in this
20    Section being allowed.  When the user pays the  tax  directly
21    to  the  Department,  he shall pay the tax in the same amount
22    and in the same form in which it would be remitted if the tax
23    had been remitted to the Department by the retailer.
24        Refunds made by the seller during  the  preceding  return
25    period   to  purchasers,  on  account  of  tangible  personal
26    property returned to  the  seller,  shall  be  allowed  as  a
27    deduction  under  subdivision  5  of his monthly or quarterly
28    return,  as  the  case  may  be,  in  case  the  seller   had
29    theretofore  included  the  receipts  from  the  sale of such
30    tangible personal property in a return filed by him  and  had
31    paid  the  tax  imposed  by  this  Act  with  respect to such
32    receipts.
33        Where the seller is a corporation, the  return  filed  on
34    behalf  of such corporation shall be signed by the president,
 
SB842 Enrolled             -102-     LRB093 02890 SJM 02906 b
 1    vice-president, secretary or treasurer  or  by  the  properly
 2    accredited agent of such corporation.
 3        Where  the  seller  is  a  limited liability company, the
 4    return filed on behalf of the limited liability company shall
 5    be signed by a manager, member, or properly accredited  agent
 6    of the limited liability company.
 7        Except  as  provided in this Section, the retailer filing
 8    the return under this Section shall, at the  time  of  filing
 9    such  return, pay to the Department the amount of tax imposed
10    by this Act less a discount of 2.1% prior to January 1,  1990
11    and  1.75%  on  and after January 1, 1990, or $5 per calendar
12    year, whichever is greater, which is allowed to reimburse the
13    retailer  for  the  expenses  incurred  in  keeping  records,
14    preparing and filing returns, remitting the tax and supplying
15    data to the  Department  on  request.   Any  prepayment  made
16    pursuant  to  Section 2d of this Act shall be included in the
17    amount on which such 2.1% or 1.75% discount is computed.   In
18    the  case  of  retailers  who  report  and  pay  the tax on a
19    transaction  by  transaction  basis,  as  provided  in   this
20    Section,  such  discount  shall  be  taken with each such tax
21    remittance instead of when such retailer files  his  periodic
22    return.
23        Before October 1, 2000, if the taxpayer's average monthly
24    tax  liability  to the Department under this Act, the Use Tax
25    Act, the Service Occupation Tax Act, and the Service Use  Tax
26    Act,  excluding  any  liability  for  prepaid sales tax to be
27    remitted in accordance with  Section  2d  of  this  Act,  was
28    $10,000  or  more  during  the  preceding 4 complete calendar
29    quarters, he shall file a return  with  the  Department  each
30    month  by  the 20th day of the month next following the month
31    during which such tax liability is incurred  and  shall  make
32    payments  to  the Department on or before the 7th, 15th, 22nd
33    and last day of the month  during  which  such  liability  is
34    incurred.  On  and  after  October 1, 2000, if the taxpayer's
 
SB842 Enrolled             -103-     LRB093 02890 SJM 02906 b
 1    average monthly tax liability to the  Department  under  this
 2    Act, the Use Tax Act, the Service Occupation Tax Act, and the
 3    Service  Use  Tax  Act,  excluding  any liability for prepaid
 4    sales tax to be remitted in accordance  with  Section  2d  of
 5    this Act, was $20,000 or more during the preceding 4 complete
 6    calendar quarters, he shall file a return with the Department
 7    each  month  by  the 20th day of the month next following the
 8    month during which such tax liability is incurred  and  shall
 9    make  payment  to  the Department on or before the 7th, 15th,
10    22nd and last day of the month during which such liability is
11    incurred.  If the month during which such  tax  liability  is
12    incurred  began  prior to January 1, 1985, each payment shall
13    be in an  amount  equal  to  1/4  of  the  taxpayer's  actual
14    liability  for  the  month or an amount set by the Department
15    not to exceed 1/4 of the average  monthly  liability  of  the
16    taxpayer  to  the  Department  for  the  preceding 4 complete
17    calendar quarters (excluding the month of  highest  liability
18    and  the month of lowest liability in such 4 quarter period).
19    If the month during which  such  tax  liability  is  incurred
20    begins  on  or  after January 1, 1985 and prior to January 1,
21    1987, each payment shall be in an amount equal  to  22.5%  of
22    the taxpayer's actual liability for the month or 27.5% of the
23    taxpayer's  liability  for  the  same  calendar  month of the
24    preceding year.  If the month during which such tax liability
25    is incurred begins on or after January 1, 1987 and  prior  to
26    January  1, 1988, each payment shall be in an amount equal to
27    22.5% of the taxpayer's actual liability  for  the  month  or
28    26.25%  of  the  taxpayer's  liability  for the same calendar
29    month of the preceding year.  If the month during which  such
30    tax liability is incurred begins on or after January 1, 1988,
31    and  prior  to January 1, 1989, or begins on or after January
32    1, 1996, each payment shall be in an amount equal to 22.5% of
33    the taxpayer's actual liability for the month or 25%  of  the
34    taxpayer's  liability  for  the  same  calendar  month of the
 
SB842 Enrolled             -104-     LRB093 02890 SJM 02906 b
 1    preceding year. If the month during which such tax  liability
 2    is  incurred begins on or after January 1, 1989, and prior to
 3    January 1, 1996, each payment shall be in an amount equal  to
 4    22.5% of the taxpayer's actual liability for the month or 25%
 5    of  the  taxpayer's  liability for the same calendar month of
 6    the preceding year or 100% of the taxpayer's actual liability
 7    for the quarter monthly reporting period.  The amount of such
 8    quarter monthly payments shall be credited against the  final
 9    tax  liability  of  the  taxpayer's  return  for  that month.
10    Before October 1, 2000, once applicable, the  requirement  of
11    the  making  of quarter monthly payments to the Department by
12    taxpayers having an average monthly tax liability of  $10,000
13    or  more  as  determined  in  the manner provided above shall
14    continue until such taxpayer's average monthly  liability  to
15    the  Department  during  the  preceding  4  complete calendar
16    quarters (excluding the month of highest  liability  and  the
17    month of lowest liability) is less than $9,000, or until such
18    taxpayer's  average  monthly  liability  to the Department as
19    computed  for  each  calendar  quarter  of  the  4  preceding
20    complete  calendar  quarter  period  is  less  than  $10,000.
21    However, if  a  taxpayer  can  show  the  Department  that  a
22    substantial  change  in  the taxpayer's business has occurred
23    which causes the taxpayer  to  anticipate  that  his  average
24    monthly  tax  liability for the reasonably foreseeable future
25    will fall below the $10,000 threshold stated above, then such
26    taxpayer may petition the Department for  a  change  in  such
27    taxpayer's  reporting  status.  On and after October 1, 2000,
28    once applicable, the requirement of  the  making  of  quarter
29    monthly  payments  to  the  Department by taxpayers having an
30    average  monthly  tax  liability  of  $20,000  or   more   as
31    determined  in the manner provided above shall continue until
32    such taxpayer's average monthly liability to  the  Department
33    during  the preceding 4 complete calendar quarters (excluding
34    the month of  highest  liability  and  the  month  of  lowest
 
SB842 Enrolled             -105-     LRB093 02890 SJM 02906 b
 1    liability)  is  less  than  $19,000  or until such taxpayer's
 2    average monthly liability to the Department as  computed  for
 3    each  calendar  quarter  of the 4 preceding complete calendar
 4    quarter period is less than $20,000.  However, if a  taxpayer
 5    can  show  the  Department  that  a substantial change in the
 6    taxpayer's business has occurred which causes the taxpayer to
 7    anticipate that his average monthly  tax  liability  for  the
 8    reasonably  foreseeable  future  will  fall below the $20,000
 9    threshold stated above, then such taxpayer may  petition  the
10    Department  for a change in such taxpayer's reporting status.
11    The Department shall change such taxpayer's reporting  status
12    unless  it  finds  that such change is seasonal in nature and
13    not likely to be long term.   If  any  such  quarter  monthly
14    payment  is not paid at the time or in the amount required by
15    this Section, then the taxpayer shall be liable for penalties
16    and interest on the difference between the minimum amount due
17    as a payment and the amount of such quarter  monthly  payment
18    actually  and timely paid, except insofar as the taxpayer has
19    previously made payments for that month to the Department  in
20    excess  of the minimum payments previously due as provided in
21    this Section. The Department shall make reasonable rules  and
22    regulations  to govern the quarter monthly payment amount and
23    quarter monthly payment dates for taxpayers who file on other
24    than a calendar monthly basis.
25        The provisions of this paragraph apply before October  1,
26    2001.  Without  regard  to  whether a taxpayer is required to
27    make  quarter  monthly  payments  as  specified  above,   any
28    taxpayer who is required by Section 2d of this Act to collect
29    and remit prepaid taxes and has collected prepaid taxes which
30    average in excess of $25,000 per month during the preceding 2
31    complete  calendar  quarters,  shall  file  a return with the
32    Department as required by Section 2f and shall make  payments
33    to  the  Department on or before the 7th, 15th, 22nd and last
34    day of the month during which such liability is incurred.  If
 
SB842 Enrolled             -106-     LRB093 02890 SJM 02906 b
 1    the month during which such tax liability is  incurred  began
 2    prior  to  the effective date of this amendatory Act of 1985,
 3    each payment shall be in an amount not less than 22.5% of the
 4    taxpayer's actual liability under Section 2d.  If  the  month
 5    during  which  such  tax  liability  is incurred begins on or
 6    after January 1, 1986, each payment shall  be  in  an  amount
 7    equal  to  22.5%  of  the taxpayer's actual liability for the
 8    month or 27.5% of  the  taxpayer's  liability  for  the  same
 9    calendar  month of the preceding calendar year.  If the month
10    during which such tax liability  is  incurred  begins  on  or
11    after  January  1,  1987,  each payment shall be in an amount
12    equal to 22.5% of the taxpayer's  actual  liability  for  the
13    month  or  26.25%  of  the  taxpayer's liability for the same
14    calendar month of the preceding year.   The  amount  of  such
15    quarter  monthly payments shall be credited against the final
16    tax liability of the taxpayer's return for that  month  filed
17    under  this  Section or Section 2f, as the case may be.  Once
18    applicable, the requirement of the making of quarter  monthly
19    payments  to  the Department pursuant to this paragraph shall
20    continue until such taxpayer's average  monthly  prepaid  tax
21    collections during the preceding 2 complete calendar quarters
22    is  $25,000  or less.  If any such quarter monthly payment is
23    not paid at the time or in the amount required, the  taxpayer
24    shall   be   liable   for  penalties  and  interest  on  such
25    difference, except insofar as  the  taxpayer  has  previously
26    made  payments  for  that  month  in  excess  of  the minimum
27    payments previously due.
28        The provisions of  this  paragraph  apply  on  and  after
29    October  1,  2001.    Without regard to whether a taxpayer is
30    required to make quarter monthly payments as specified above,
31    any taxpayer who is required by Section 2d  of  this  Act  to
32    collect  and  remit  prepaid  taxes and has collected prepaid
33    taxes that average in excess of $20,000 per month during  the
34    preceding  4  complete  calendar quarters shall file a return
 
SB842 Enrolled             -107-     LRB093 02890 SJM 02906 b
 1    with the Department as required by Section 2f and shall  make
 2    payments  to  the Department on or before the 7th, 15th, 22nd
 3    and last day of the  month  during  which  the  liability  is
 4    incurred.   Each payment shall be in an amount equal to 22.5%
 5    of the taxpayer's actual liability for the month  or  25%  of
 6    the  taxpayer's  liability for the same calendar month of the
 7    preceding year.  The amount of the quarter  monthly  payments
 8    shall  be  credited  against  the  final tax liability of the
 9    taxpayer's return for that month filed under this Section  or
10    Section  2f,  as  the  case  may  be.   Once  applicable, the
11    requirement of the making of quarter monthly payments to  the
12    Department  pursuant  to  this paragraph shall continue until
13    the taxpayer's average monthly prepaid tax collections during
14    the preceding 4 complete  calendar  quarters  (excluding  the
15    month of highest liability and the month of lowest liability)
16    is less than $19,000 or until such taxpayer's average monthly
17    liability  to  the  Department  as computed for each calendar
18    quarter of the 4 preceding complete calendar quarters is less
19    than $20,000.  If any such quarter  monthly  payment  is  not
20    paid  at  the  time  or  in the amount required, the taxpayer
21    shall  be  liable  for  penalties  and   interest   on   such
22    difference,  except  insofar  as  the taxpayer has previously
23    made payments  for  that  month  in  excess  of  the  minimum
24    payments previously due.
25        If  any  payment provided for in this Section exceeds the
26    taxpayer's liabilities under this Act, the Use Tax  Act,  the
27    Service  Occupation  Tax  Act and the Service Use Tax Act, as
28    shown on an original monthly return, the Department shall, if
29    requested by the taxpayer, issue to  the  taxpayer  a  credit
30    memorandum  no  later than 30 days after the date of payment.
31    The  credit  evidenced  by  such  credit  memorandum  may  be
32    assigned by the taxpayer to a  similar  taxpayer  under  this
33    Act,  the  Use Tax Act, the Service Occupation Tax Act or the
34    Service Use Tax Act, in accordance with reasonable rules  and
 
SB842 Enrolled             -108-     LRB093 02890 SJM 02906 b
 1    regulations  to  be prescribed by the Department.  If no such
 2    request is made, the taxpayer may credit such excess  payment
 3    against  tax  liability  subsequently  to  be remitted to the
 4    Department under this Act,  the  Use  Tax  Act,  the  Service
 5    Occupation  Tax Act or the Service Use Tax Act, in accordance
 6    with reasonable  rules  and  regulations  prescribed  by  the
 7    Department.   If  the Department subsequently determined that
 8    all or any part of the credit taken was not actually  due  to
 9    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
10    shall  be  reduced by 2.1% or 1.75% of the difference between
11    the credit taken and that actually  due,  and  that  taxpayer
12    shall   be   liable   for  penalties  and  interest  on  such
13    difference.
14        If a retailer of motor fuel is entitled to a credit under
15    Section 2d of this Act which exceeds the taxpayer's liability
16    to the Department under this Act  for  the  month  which  the
17    taxpayer  is  filing a return, the Department shall issue the
18    taxpayer a credit memorandum for the excess.
19        Beginning January 1,  1990,  each  month  the  Department
20    shall  pay into the Local Government Tax Fund, a special fund
21    in the State  treasury  which  is  hereby  created,  the  net
22    revenue  realized  for the preceding month from the 1% tax on
23    sales of food for human consumption which is to  be  consumed
24    off  the  premises  where  it  is  sold (other than alcoholic
25    beverages, soft drinks and food which has been  prepared  for
26    immediate  consumption)  and prescription and nonprescription
27    medicines,  drugs,  medical  appliances  and  insulin,  urine
28    testing materials, syringes and needles used by diabetics.
29        Beginning January 1,  1990,  each  month  the  Department
30    shall  pay  into the County and Mass Transit District Fund, a
31    special fund in the State treasury which is  hereby  created,
32    4%  of  the net revenue realized for the preceding month from
33    the 6.25% general rate.
34        Beginning August 1, 2000, each month the Department shall
 
SB842 Enrolled             -109-     LRB093 02890 SJM 02906 b
 1    pay into the County and Mass Transit District Fund 20% of the
 2    net revenue realized for the preceding month from  the  1.25%
 3    rate on the selling price of motor fuel and gasohol.
 4        Beginning  January  1,  1990,  each  month the Department
 5    shall pay into the Local Government Tax Fund 16% of  the  net
 6    revenue  realized  for  the  preceding  month  from the 6.25%
 7    general rate  on  the  selling  price  of  tangible  personal
 8    property.
 9        Beginning August 1, 2000, each month the Department shall
10    pay into the Local Government Tax Fund 80% of the net revenue
11    realized  for  the preceding month from the 1.25% rate on the
12    selling price of motor fuel and gasohol.
13        Of the remainder of the moneys received by the Department
14    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
15    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
16    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
17    into  the  Build Illinois Fund; provided, however, that if in
18    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
19    as the case may be, of the moneys received by the  Department
20    and required to be paid into the Build Illinois Fund pursuant
21    to  this  Act, Section 9 of the Use Tax Act, Section 9 of the
22    Service Use Tax Act, and Section 9 of the Service  Occupation
23    Tax  Act,  such  Acts being hereinafter called the "Tax Acts"
24    and such aggregate of 2.2% or 3.8%, as the case  may  be,  of
25    moneys being hereinafter called the "Tax Act Amount", and (2)
26    the  amount  transferred  to the Build Illinois Fund from the
27    State and Local Sales Tax Reform Fund shall be less than  the
28    Annual  Specified  Amount (as hereinafter defined), an amount
29    equal to the difference shall be immediately  paid  into  the
30    Build  Illinois  Fund  from  other  moneys  received  by  the
31    Department  pursuant  to  the Tax Acts; the "Annual Specified
32    Amount" means the amounts specified below  for  fiscal  years
33    1986 through 1993:
34             Fiscal Year              Annual Specified Amount
 
SB842 Enrolled             -110-     LRB093 02890 SJM 02906 b
 1                 1986                       $54,800,000
 2                 1987                       $76,650,000
 3                 1988                       $80,480,000
 4                 1989                       $88,510,000
 5                 1990                       $115,330,000
 6                 1991                       $145,470,000
 7                 1992                       $182,730,000
 8                 1993                      $206,520,000;
 9    and  means  the Certified Annual Debt Service Requirement (as
10    defined in Section 13 of the Build Illinois Bond Act) or  the
11    Tax  Act  Amount,  whichever is greater, for fiscal year 1994
12    and each fiscal year thereafter; and further  provided,  that
13    if  on  the last business day of any month the sum of (1) the
14    Tax Act Amount  required  to  be  deposited  into  the  Build
15    Illinois  Bond Account in the Build Illinois Fund during such
16    month and (2) the amount transferred to  the  Build  Illinois
17    Fund  from  the  State  and Local Sales Tax Reform Fund shall
18    have been less than 1/12 of the Annual Specified  Amount,  an
19    amount equal to the difference shall be immediately paid into
20    the  Build  Illinois  Fund  from other moneys received by the
21    Department pursuant to the Tax Acts; and,  further  provided,
22    that  in  no  event  shall  the  payments  required under the
23    preceding proviso result in aggregate payments into the Build
24    Illinois Fund pursuant to this clause (b) for any fiscal year
25    in excess of the greater of (i) the Tax Act  Amount  or  (ii)
26    the  Annual  Specified  Amount  for  such  fiscal  year.  The
27    amounts payable into the Build Illinois Fund under clause (b)
28    of the first sentence in this paragraph shall be payable only
29    until such time as the aggregate amount on deposit under each
30    trust  indenture  securing  Bonds  issued   and   outstanding
31    pursuant to the Build Illinois Bond Act is sufficient, taking
32    into  account any future investment income, to fully provide,
33    in accordance with such indenture, for the defeasance  of  or
34    the  payment  of  the  principal  of,  premium,  if  any, and
 
SB842 Enrolled             -111-     LRB093 02890 SJM 02906 b
 1    interest on the Bonds secured by such indenture  and  on  any
 2    Bonds expected to be issued thereafter and all fees and costs
 3    payable  with  respect  thereto,  all  as  certified  by  the
 4    Director  of  the  Bureau  of  the  Budget.   If  on the last
 5    business day of any month  in  which  Bonds  are  outstanding
 6    pursuant  to  the  Build  Illinois Bond Act, the aggregate of
 7    moneys deposited in the Build Illinois Bond  Account  in  the
 8    Build  Illinois  Fund  in  such  month shall be less than the
 9    amount required to be transferred  in  such  month  from  the
10    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
11    Retirement and Interest Fund pursuant to Section  13  of  the
12    Build  Illinois  Bond Act, an amount equal to such deficiency
13    shall be immediately paid from other moneys received  by  the
14    Department  pursuant  to  the  Tax Acts to the Build Illinois
15    Fund; provided, however, that any amounts paid to  the  Build
16    Illinois  Fund  in  any fiscal year pursuant to this sentence
17    shall be deemed to constitute payments pursuant to clause (b)
18    of the first sentence of this paragraph and shall reduce  the
19    amount  otherwise  payable  for  such fiscal year pursuant to
20    that clause (b).   The  moneys  received  by  the  Department
21    pursuant  to  this  Act and required to be deposited into the
22    Build Illinois Fund are subject  to  the  pledge,  claim  and
23    charge  set  forth  in  Section 12 of the Build Illinois Bond
24    Act.
25        Subject to payment of amounts  into  the  Build  Illinois
26    Fund  as  provided  in  the  preceding  paragraph  or  in any
27    amendment thereto hereafter enacted, the following  specified
28    monthly   installment   of   the   amount  requested  in  the
29    certificate of the Chairman  of  the  Metropolitan  Pier  and
30    Exposition  Authority  provided  under  Section  8.25f of the
31    State Finance Act, but not in excess of  sums  designated  as
32    "Total  Deposit",  shall  be  deposited in the aggregate from
33    collections under Section 9 of the Use Tax Act, Section 9  of
34    the  Service Use Tax Act, Section 9 of the Service Occupation
 
SB842 Enrolled             -112-     LRB093 02890 SJM 02906 b
 1    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
 2    into  the  McCormick  Place  Expansion  Project  Fund  in the
 3    specified fiscal years.
 4               Fiscal Year                           Total Deposit
 5                   1993                                        $0
 6                   1994                                53,000,000
 7                   1995                                58,000,000
 8                   1996                                61,000,000
 9                   1997                                64,000,000
10                   1998                                68,000,000
11                   1999                                71,000,000
12                   2000                                75,000,000
13                   2001                                80,000,000
14                   2002                                93,000,000
15                   2003                                99,000,000
16                   2004                               103,000,000
17                   2005                               108,000,000
18                   2006                               113,000,000
19                   2007                               119,000,000
20                   2008                               126,000,000
21                   2009                               132,000,000
22                   2010                               139,000,000
23                   2011                               146,000,000
24                   2012                               153,000,000
25                   2013                               161,000,000
26                   2014                               170,000,000
27                   2015                               179,000,000
28                   2016                               189,000,000
29                   2017                               199,000,000
30                   2018                               210,000,000
31                   2019                               221,000,000
32                   2020                               233,000,000
33                   2021                               246,000,000
34                   2022                               260,000,000
 
SB842 Enrolled             -113-     LRB093 02890 SJM 02906 b
 1                 2023 and                             275,000,000
 2    each fiscal year
 3    thereafter that bonds
 4    are outstanding under
 5    Section 13.2 of the
 6    Metropolitan Pier and
 7    Exposition Authority
 8    Act, but not after fiscal year 2042.
 9        Beginning July 20, 1993 and in each month of each  fiscal
10    year  thereafter,  one-eighth  of the amount requested in the
11    certificate of the Chairman  of  the  Metropolitan  Pier  and
12    Exposition  Authority  for  that fiscal year, less the amount
13    deposited into the McCormick Place Expansion Project Fund  by
14    the  State Treasurer in the respective month under subsection
15    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
16    Authority  Act,  plus cumulative deficiencies in the deposits
17    required under this Section for previous  months  and  years,
18    shall be deposited into the McCormick Place Expansion Project
19    Fund,  until  the  full amount requested for the fiscal year,
20    but not in excess of the amount  specified  above  as  "Total
21    Deposit", has been deposited.
22        Subject  to  payment  of  amounts into the Build Illinois
23    Fund and the McCormick Place Expansion Project Fund  pursuant
24    to  the  preceding  paragraphs  or  in any amendments thereto
25    hereafter enacted, beginning July  1,  1993,  the  Department
26    shall  each  month  pay  into the Illinois Tax Increment Fund
27    0.27% of 80% of the net revenue realized  for  the  preceding
28    month  from  the  6.25%  general rate on the selling price of
29    tangible personal property.
30        Subject to payment of amounts  into  the  Build  Illinois
31    Fund  and the McCormick Place Expansion Project Fund pursuant
32    to the preceding paragraphs  or  in  any  amendments  thereto
33    hereafter  enacted,  beginning  with the receipt of the first
34    report of taxes paid by an eligible business  and  continuing
 
SB842 Enrolled             -114-     LRB093 02890 SJM 02906 b
 1    for  a  25-year  period,  the Department shall each month pay
 2    into the Energy Infrastructure Fund 80% of  the  net  revenue
 3    realized  from the 6.25% general rate on the selling price of
 4    Illinois-mined coal that was sold to  an  eligible  business.
 5    For  purposes of this paragraph, the term "eligible business"
 6    means a new electric generating facility  certified  pursuant
 7    to   Section  605-332  of  the  Department  of  Commerce  and
 8    Community Affairs Law of the  Civil  Administrative  Code  of
 9    Illinois.
10        Of the remainder of the moneys received by the Department
11    pursuant  to  this  Act,  75%  thereof shall be paid into the
12    State Treasury and 25% shall be reserved in a special account
13    and used only for the transfer to the Common School  Fund  as
14    part of the monthly transfer from the General Revenue Fund in
15    accordance with Section 8a of the State Finance Act.
16        The  Department  may,  upon  separate written notice to a
17    taxpayer, require the taxpayer to prepare and file  with  the
18    Department  on a form prescribed by the Department within not
19    less than 60 days after  receipt  of  the  notice  an  annual
20    information  return for the tax year specified in the notice.
21    Such  annual  return  to  the  Department  shall  include   a
22    statement  of  gross receipts as shown by the retailer's last
23    Federal income tax return.  If  the  total  receipts  of  the
24    business  as reported in the Federal income tax return do not
25    agree with the gross receipts reported to the  Department  of
26    Revenue for the same period, the retailer shall attach to his
27    annual  return  a  schedule showing a reconciliation of the 2
28    amounts and the reasons for the difference.   The  retailer's
29    annual  return to the Department shall also disclose the cost
30    of goods sold by the retailer during the year covered by such
31    return, opening and closing inventories  of  such  goods  for
32    such year, costs of goods used from stock or taken from stock
33    and  given  away  by  the  retailer during such year, payroll
34    information of the retailer's business during such  year  and
 
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 1    any  additional  reasonable  information which the Department
 2    deems would be helpful in determining  the  accuracy  of  the
 3    monthly,  quarterly  or annual returns filed by such retailer
 4    as provided for in this Section.
 5        If the annual information return required by this Section
 6    is not filed when and as  required,  the  taxpayer  shall  be
 7    liable as follows:
 8             (i)  Until  January  1,  1994, the taxpayer shall be
 9        liable for a penalty equal to 1/6 of 1% of  the  tax  due
10        from such taxpayer under this Act during the period to be
11        covered  by  the annual return for each month or fraction
12        of a month until such return is filed  as  required,  the
13        penalty  to  be assessed and collected in the same manner
14        as any other penalty provided for in this Act.
15             (ii)  On and after January  1,  1994,  the  taxpayer
16        shall be liable for a penalty as described in Section 3-4
17        of the Uniform Penalty and Interest Act.
18        The chief executive officer, proprietor, owner or highest
19    ranking  manager  shall sign the annual return to certify the
20    accuracy of the information contained therein.    Any  person
21    who  willfully  signs  the  annual return containing false or
22    inaccurate  information  shall  be  guilty  of  perjury   and
23    punished  accordingly.   The annual return form prescribed by
24    the Department  shall  include  a  warning  that  the  person
25    signing the return may be liable for perjury.
26        The  provisions  of this Section concerning the filing of
27    an annual information return do not apply to a  retailer  who
28    is  not required to file an income tax return with the United
29    States Government.
30        As soon as possible after the first day  of  each  month,
31    upon   certification   of  the  Department  of  Revenue,  the
32    Comptroller shall order transferred and the  Treasurer  shall
33    transfer  from the General Revenue Fund to the Motor Fuel Tax
34    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
 
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 1    realized  under  this  Act  for  the  second preceding month.
 2    Beginning April 1, 2000, this transfer is no longer  required
 3    and shall not be made.
 4        Net  revenue  realized  for  a month shall be the revenue
 5    collected by the State pursuant to this Act, less the  amount
 6    paid  out  during  that  month  as  refunds  to taxpayers for
 7    overpayment of liability.
 8        For greater simplicity of administration,  manufacturers,
 9    importers  and  wholesalers whose products are sold at retail
10    in Illinois by numerous retailers, and who wish to do so, may
11    assume the responsibility for accounting and  paying  to  the
12    Department  all  tax  accruing under this Act with respect to
13    such sales, if the retailers who are  affected  do  not  make
14    written objection to the Department to this arrangement.
15        Any  person  who  promotes,  organizes,  provides  retail
16    selling  space  for concessionaires or other types of sellers
17    at the Illinois State Fair, DuQuoin State Fair, county fairs,
18    local fairs, art shows, flea markets and similar  exhibitions
19    or  events,  including  any  transient merchant as defined by
20    Section 2 of the Transient Merchant Act of 1987, is  required
21    to  file  a  report with the Department providing the name of
22    the merchant's business, the name of the  person  or  persons
23    engaged  in  merchant's  business,  the permanent address and
24    Illinois Retailers Occupation Tax Registration Number of  the
25    merchant,  the  dates  and  location  of  the event and other
26    reasonable information that the Department may require.   The
27    report must be filed not later than the 20th day of the month
28    next  following  the month during which the event with retail
29    sales was held.  Any  person  who  fails  to  file  a  report
30    required  by  this  Section commits a business offense and is
31    subject to a fine not to exceed $250.
32        Any person engaged in the business  of  selling  tangible
33    personal property at retail as a concessionaire or other type
34    of  seller  at  the  Illinois  State  Fair, county fairs, art
 
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 1    shows, flea markets and similar exhibitions or events, or any
 2    transient merchants, as defined by Section 2 of the Transient
 3    Merchant Act of 1987, may be required to make a daily  report
 4    of  the  amount of such sales to the Department and to make a
 5    daily payment of the full amount of tax due.  The  Department
 6    shall  impose  this requirement when it finds that there is a
 7    significant risk of loss of revenue to the State at  such  an
 8    exhibition  or  event.   Such  a  finding  shall  be based on
 9    evidence that a  substantial  number  of  concessionaires  or
10    other  sellers  who  are  not  residents  of Illinois will be
11    engaging  in  the  business  of  selling  tangible   personal
12    property  at  retail  at  the  exhibition  or event, or other
13    evidence of a significant risk of  loss  of  revenue  to  the
14    State.  The Department shall notify concessionaires and other
15    sellers  affected  by the imposition of this requirement.  In
16    the  absence  of  notification   by   the   Department,   the
17    concessionaires and other sellers shall file their returns as
18    otherwise required in this Section.
19    (Source: P.A.   91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;
20    91-101, eff. 7-12-99;  91-541,  eff.  8-13-99;  91-872,  eff.
21    7-1-00;  91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff.
22    6-28-01; 92-208, eff. 8-2-01; 92-484, eff.  8-23-01;  92-492,
23    eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02.)

24        Section  50-30.  The  Illinois Vehicle Code is amended by
25    changing Section 3-2001 as follows:

26        (625 ILCS 5/3-2001) (from Ch. 95 1/2, par. 3-2001)
27        Sec. 3-2001.  Until July 1, 2003, a tax of $200 is hereby
28    imposed on the purchase of any passenger car  as  defined  in
29    Section  1-157  of  this Code, purchased in Illinois by or on
30    behalf of an insurance company to replace a passenger car  of
31    an  insured  person  in settlement of a total loss claim. The
32    tax imposed by this Section shall apply only to that  portion
 
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 1    of  the purchase price of the replacement vehicle paid by the
 2    insurance company in settlement of the total loss claim,  but
 3    not  including  any  portion  of such insurance payment which
 4    exceeds the market value of the total loss vehicle.
 5    (Source: P.A. 83-1353.)

 6                             ARTICLE 99

 7        Section 99-99.  Effective date.  This  Act  takes  effect
 8    upon becoming law.