Rep. Jim Sacia

Filed: 3/4/2011

 

 


 

 


 
09700HB0026ham001LRB097 02778 HLH 51875 a

1
AMENDMENT TO HOUSE BILL 26

2    AMENDMENT NO. ______. Amend House Bill 26 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit

 

 

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1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts or
4cultural organization that establishes, by proof required by
5the Department by rule, that it has received an exemption under
6Section 501(c)(3) of the Internal Revenue Code and that is
7organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after the effective date
14of this amendatory Act of the 92nd General Assembly, however,
15an entity otherwise eligible for this exemption shall not make
16tax-free purchases unless it has an active identification
17number issued by the Department.
18    (4) Personal property purchased by a governmental body, by
19a corporation, society, association, foundation, or
20institution organized and operated exclusively for charitable,
21religious, or educational purposes, or by a not-for-profit
22corporation, society, association, foundation, institution, or
23organization that has no compensated officers or employees and
24that is organized and operated primarily for the recreation of
25persons 55 years of age or older. A limited liability company
26may qualify for the exemption under this paragraph only if the

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active exemption
5identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon a
18graphic arts product.
19    (7) Farm chemicals.
20    (8) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (9) Personal property purchased from a teacher-sponsored
25student organization affiliated with an elementary or
26secondary school located in Illinois.

 

 

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1    (10) A motor vehicle of the first division, a motor vehicle
2of the second division that is a self-contained motor vehicle
3designed or permanently converted to provide living quarters
4for recreational, camping, or travel use, with direct walk
5through to the living quarters from the driver's seat, or a
6motor vehicle of the second division that is of the van
7configuration designed for the transportation of not less than
87 nor more than 16 passengers, as defined in Section 1-146 of
9the Illinois Vehicle Code, that is used for automobile renting,
10as defined in the Automobile Renting Occupation and Use Tax
11Act.
12    (11) Farm machinery and equipment, both new and used,
13including that manufactured on special order, certified by the
14purchaser to be used primarily for production agriculture or
15State or federal agricultural programs, including individual
16replacement parts for the machinery and equipment, including
17machinery and equipment purchased for lease, and including
18implements of husbandry defined in Section 1-130 of the
19Illinois Vehicle Code, farm machinery and agricultural
20chemical and fertilizer spreaders, and nurse wagons required to
21be registered under Section 3-809 of the Illinois Vehicle Code,
22but excluding other motor vehicles required to be registered
23under the Illinois Vehicle Code. Horticultural polyhouses or
24hoop houses used for propagating, growing, or overwintering
25plants shall be considered farm machinery and equipment under
26this item (11). Agricultural chemical tender tanks and dry

 

 

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1boxes shall include units sold separately from a motor vehicle
2required to be licensed and units sold mounted on a motor
3vehicle required to be licensed if the selling price of the
4tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals. This item (11) is exempt from the
20provisions of Section 3-90.
21    (12) Fuel and petroleum products sold to or used by an air
22common carrier, certified by the carrier to be used for
23consumption, shipment, or storage in the conduct of its
24business as an air common carrier, for a flight destined for or
25returning from a location or locations outside the United
26States without regard to previous or subsequent domestic

 

 

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

 

 

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1including equipment purchased for lease, but excluding motor
2vehicles required to be registered under the Illinois Vehicle
3Code.
4    (17) Until July 1, 2003, distillation machinery and
5equipment, sold as a unit or kit, assembled or installed by the
6retailer, certified by the user to be used only for the
7production of ethyl alcohol that will be used for consumption
8as motor fuel or as a component of motor fuel for the personal
9use of the user, and not subject to sale or resale.
10    (18) Manufacturing and assembling machinery and equipment
11used primarily in the process of manufacturing or assembling
12tangible personal property for wholesale or retail sale or
13lease, whether that sale or lease is made directly by the
14manufacturer or by some other person, whether the materials
15used in the process are owned by the manufacturer or some other
16person, or whether that sale or lease is made apart from or as
17an incident to the seller's engaging in the service occupation
18of producing machines, tools, dies, jigs, patterns, gauges, or
19other similar items of no commercial value on special order for
20a particular purchaser.
21    (19) Personal property delivered to a purchaser or
22purchaser's donee inside Illinois when the purchase order for
23that personal property was received by a florist located
24outside Illinois who has a florist located inside Illinois
25deliver the personal property.
26    (20) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (21) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (21) is exempt from the provisions
8of Section 3-90, and the exemption provided for under this item
9(21) applies for all periods beginning May 30, 1995, but no
10claim for credit or refund is allowed on or after January 1,
112008 for such taxes paid during the period beginning May 30,
122000 and ending on January 1, 2008.
13    (22) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of the
21Retailers' Occupation Tax Act. If the equipment is leased in a
22manner that does not qualify for this exemption or is used in
23any other non-exempt manner, the lessor shall be liable for the
24tax imposed under this Act or the Service Use Tax Act, as the
25case may be, based on the fair market value of the property at
26the time the non-qualifying use occurs. No lessor shall collect

 

 

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

 

 

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

 

 

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1at a "game breeding and hunting preserve area" or an "exotic
2game hunting area" as those terms are used in the Wildlife Code
3or at a hunting enclosure approved through rules adopted by the
4Department of Natural Resources. This paragraph is exempt from
5the provisions of Section 3-90.
6    (27) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the Department
10to be organized and operated exclusively for educational
11purposes. For purposes of this exemption, "a corporation,
12limited liability company, society, association, foundation,
13or institution organized and operated exclusively for
14educational purposes" means all tax-supported public schools,
15private schools that offer systematic instruction in useful
16branches of learning by methods common to public schools and
17that compare favorably in their scope and intensity with the
18course of study presented in tax-supported schools, and
19vocational or technical schools or institutes organized and
20operated exclusively to provide a course of study of not less
21than 6 weeks duration and designed to prepare individuals to
22follow a trade or to pursue a manual, technical, mechanical,
23industrial, business, or commercial occupation.
24    (28) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

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1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 3-90.
12    (29) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and other
15items, and replacement parts for these machines. Beginning
16January 1, 2002 and through June 30, 2003, machines and parts
17for machines used in commercial, coin-operated amusement and
18vending business if a use or occupation tax is paid on the
19gross receipts derived from the use of the commercial,
20coin-operated amusement and vending machines. This paragraph
21is exempt from the provisions of Section 3-90.
22    (30) Beginning January 1, 2001 and through June 30, 2011,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or in a licensed facility as defined
7in the MR/DD Community Care Act.
8    (31) Beginning on the effective date of this amendatory Act
9of the 92nd General Assembly, computers and communications
10equipment utilized for any hospital purpose and equipment used
11in the diagnosis, analysis, or treatment of hospital patients
12purchased by a lessor who leases the equipment, under a lease
13of one year or longer executed or in effect at the time the
14lessor would otherwise be subject to the tax imposed by this
15Act, to a hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. If the equipment is leased in a
18manner that does not qualify for this exemption or is used in
19any other nonexempt manner, the lessor shall be liable for the
20tax imposed under this Act or the Service Use Tax Act, as the
21case may be, based on the fair market value of the property at
22the time the nonqualifying use occurs. No lessor shall collect
23or attempt to collect an amount (however designated) that
24purports to reimburse that lessor for the tax imposed by this
25Act or the Service Use Tax Act, as the case may be, if the tax
26has not been paid by the lessor. If a lessor improperly

 

 

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

 

 

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1refunded to the lessee for any reason, the lessor is liable to
2pay that amount to the Department. This paragraph is exempt
3from the provisions of Section 3-90.
4    (33) On and after July 1, 2003 and through June 30, 2004,
5the use in this State of motor vehicles of the second division
6with a gross vehicle weight in excess of 8,000 pounds and that
7are subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
91, 2004 and through June 30, 2005, the use in this State of
10motor vehicles of the second division: (i) with a gross vehicle
11weight rating in excess of 8,000 pounds; (ii) that are subject
12to the commercial distribution fee imposed under Section
133-815.1 of the Illinois Vehicle Code; and (iii) that are
14primarily used for commercial purposes. Through June 30, 2005,
15this exemption applies to repair and replacement parts added
16after the initial purchase of such a motor vehicle if that
17motor vehicle is used in a manner that would qualify for the
18rolling stock exemption otherwise provided for in this Act. For
19purposes of this paragraph, the term "used for commercial
20purposes" means the transportation of persons or property in
21furtherance of any commercial or industrial enterprise,
22whether for-hire or not.
23    (34) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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1corporation that holds a valid water supply permit issued under
2Title IV of the Environmental Protection Act. This paragraph is
3exempt from the provisions of Section 3-90.
4    (35) Beginning January 1, 2010, materials, parts,
5equipment, components, and furnishings incorporated into or
6upon an aircraft as part of the modification, refurbishment,
7completion, replacement, repair, or maintenance of the
8aircraft. This exemption includes consumable supplies used in
9the modification, refurbishment, completion, replacement,
10repair, and maintenance of aircraft, but excludes any
11materials, parts, equipment, components, and consumable
12supplies used in the modification, replacement, repair, and
13maintenance of aircraft engines or power plants, whether such
14engines or power plants are installed or uninstalled upon any
15such aircraft. "Consumable supplies" include, but are not
16limited to, adhesive, tape, sandpaper, general purpose
17lubricants, cleaning solution, latex gloves, and protective
18films. This exemption applies only to those organizations that
19(i) hold an Air Agency Certificate and are empowered to operate
20an approved repair station by the Federal Aviation
21Administration, (ii) have a Class IV Rating, and (iii) conduct
22operations in accordance with Part 145 of the Federal Aviation
23Regulations. The exemption does not include aircraft operated
24by a commercial air carrier providing scheduled passenger air
25service pursuant to authority issued under Part 121 or Part 129
26of the Federal Aviation Regulations.

 

 

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1    (36) Tangible personal property purchased by a
2public-facilities corporation, as described in Section
311-65-10 of the Illinois Municipal Code, for purposes of
4constructing or furnishing a municipal convention hall, but
5only if the legal title to the municipal convention hall is
6transferred to the municipality without any further
7consideration by or on behalf of the municipality at the time
8of the completion of the municipal convention hall or upon the
9retirement or redemption of any bonds or other debt instruments
10issued by the public-facilities corporation in connection with
11the development of the municipal convention hall. This
12exemption includes existing public-facilities corporations as
13provided in Section 11-65-25 of the Illinois Municipal Code.
14This paragraph is exempt from the provisions of Section 3-90.
15    (37) Distributed wind energy devices, as defined in Section
1610-600 of the Property Tax Code.
17(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
18eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1996-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
207-2-10.)
 
21    Section 10. The Retailers' Occupation Tax Act is amended by
22changing Section 2-5 as follows:
 
23    (35 ILCS 120/2-5)
24    Sec. 2-5. Exemptions. Gross receipts from proceeds from the

 

 

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

 

 

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1or spreaders. Precision farming equipment includes, but is not
2limited to, soil testing sensors, computers, monitors,
3software, global positioning and mapping systems, and other
4such equipment.
5    Farm machinery and equipment also includes computers,
6sensors, software, and related equipment used primarily in the
7computer-assisted operation of production agriculture
8facilities, equipment, and activities such as, but not limited
9to, the collection, monitoring, and correlation of animal and
10crop data for the purpose of formulating animal diets and
11agricultural chemicals. This item (7) is exempt from the
12provisions of Section 2-70.
13    (3) Until July 1, 2003, distillation machinery and
14equipment, sold as a unit or kit, assembled or installed by the
15retailer, certified by the user to be used only for the
16production of ethyl alcohol that will be used for consumption
17as motor fuel or as a component of motor fuel for the personal
18use of the user, and not subject to sale or resale.
19    (4) Until July 1, 2003 and beginning again September 1,
202004 through August 30, 2014, graphic arts machinery and
21equipment, including repair and replacement parts, both new and
22used, and including that manufactured on special order or
23purchased for lease, certified by the purchaser to be used
24primarily for graphic arts production. Equipment includes
25chemicals or chemicals acting as catalysts but only if the
26chemicals or chemicals acting as catalysts effect a direct and

 

 

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1immediate change upon a graphic arts product.
2    (5) A motor vehicle of the first division, a motor vehicle
3of the second division that is a self contained motor vehicle
4designed or permanently converted to provide living quarters
5for recreational, camping, or travel use, with direct walk
6through access to the living quarters from the driver's seat,
7or a motor vehicle of the second division that is of the van
8configuration designed for the transportation of not less than
97 nor more than 16 passengers, as defined in Section 1-146 of
10the Illinois Vehicle Code, that is used for automobile renting,
11as defined in the Automobile Renting Occupation and Use Tax
12Act. This paragraph is exempt from the provisions of Section
132-70.
14    (6) Personal property sold by a teacher-sponsored student
15organization affiliated with an elementary or secondary school
16located in Illinois.
17    (7) Until July 1, 2003, proceeds of that portion of the
18selling price of a passenger car the sale of which is subject
19to the Replacement Vehicle Tax.
20    (8) Personal property sold to an Illinois county fair
21association for use in conducting, operating, or promoting the
22county fair.
23    (9) Personal property sold to a not-for-profit arts or
24cultural organization that establishes, by proof required by
25the Department by rule, that it has received an exemption under
26Section 501(c)(3) of the Internal Revenue Code and that is

 

 

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1organized and operated primarily for the presentation or
2support of arts or cultural programming, activities, or
3services. These organizations include, but are not limited to,
4music and dramatic arts organizations such as symphony
5orchestras and theatrical groups, arts and cultural service
6organizations, local arts councils, visual arts organizations,
7and media arts organizations. On and after the effective date
8of this amendatory Act of the 92nd General Assembly, however,
9an entity otherwise eligible for this exemption shall not make
10tax-free purchases unless it has an active identification
11number issued by the Department.
12    (10) Personal property sold by a corporation, society,
13association, foundation, institution, or organization, other
14than a limited liability company, that is organized and
15operated as a not-for-profit service enterprise for the benefit
16of persons 65 years of age or older if the personal property
17was not purchased by the enterprise for the purpose of resale
18by the enterprise.
19    (11) Personal property sold to a governmental body, to a
20corporation, society, association, foundation, or institution
21organized and operated exclusively for charitable, religious,
22or educational purposes, or to a not-for-profit corporation,
23society, association, foundation, institution, or organization
24that has no compensated officers or employees and that is
25organized and operated primarily for the recreation of persons
2655 years of age or older. A limited liability company may

 

 

09700HB0026ham001- 22 -LRB097 02778 HLH 51875 a

1qualify for the exemption under this paragraph only if the
2limited liability company is organized and operated
3exclusively for educational purposes. On and after July 1,
41987, however, no entity otherwise eligible for this exemption
5shall make tax-free purchases unless it has an active
6identification number issued by the Department.
7    (12) Tangible personal property sold to interstate
8carriers for hire for use as rolling stock moving in interstate
9commerce or to lessors under leases of one year or longer
10executed or in effect at the time of purchase by interstate
11carriers for hire for use as rolling stock moving in interstate
12commerce and equipment operated by a telecommunications
13provider, licensed as a common carrier by the Federal
14Communications Commission, which is permanently installed in
15or affixed to aircraft moving in interstate commerce.
16    (12-5) On and after July 1, 2003 and through June 30, 2004,
17motor vehicles of the second division with a gross vehicle
18weight in excess of 8,000 pounds that are subject to the
19commercial distribution fee imposed under Section 3-815.1 of
20the Illinois Vehicle Code. Beginning on July 1, 2004 and
21through June 30, 2005, the use in this State of motor vehicles
22of the second division: (i) with a gross vehicle weight rating
23in excess of 8,000 pounds; (ii) that are subject to the
24commercial distribution fee imposed under Section 3-815.1 of
25the Illinois Vehicle Code; and (iii) that are primarily used
26for commercial purposes. Through June 30, 2005, this exemption

 

 

09700HB0026ham001- 23 -LRB097 02778 HLH 51875 a

1applies to repair and replacement parts added after the initial
2purchase of such a motor vehicle if that motor vehicle is used
3in a manner that would qualify for the rolling stock exemption
4otherwise provided for in this Act. For purposes of this
5paragraph, "used for commercial purposes" means the
6transportation of persons or property in furtherance of any
7commercial or industrial enterprise whether for-hire or not.
8    (13) Proceeds from sales to owners, lessors, or shippers of
9tangible personal property that is utilized by interstate
10carriers for hire for use as rolling stock moving in interstate
11commerce and equipment operated by a telecommunications
12provider, licensed as a common carrier by the Federal
13Communications Commission, which is permanently installed in
14or affixed to aircraft moving in interstate commerce.
15    (14) Machinery and equipment that will be used by the
16purchaser, or a lessee of the purchaser, primarily in the
17process of manufacturing or assembling tangible personal
18property for wholesale or retail sale or lease, whether the
19sale or lease is made directly by the manufacturer or by some
20other person, whether the materials used in the process are
21owned by the manufacturer or some other person, or whether the
22sale or lease is made apart from or as an incident to the
23seller's engaging in the service occupation of producing
24machines, tools, dies, jigs, patterns, gauges, or other similar
25items of no commercial value on special order for a particular
26purchaser.

 

 

09700HB0026ham001- 24 -LRB097 02778 HLH 51875 a

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

 

 

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1and pump-jack units, (iv) storage tanks and flow lines, (v) any
2individual replacement part for oil field exploration,
3drilling, and production equipment, and (vi) machinery and
4equipment purchased for lease; but excluding motor vehicles
5required to be registered under the Illinois Vehicle Code.
6    (20) Photoprocessing machinery and equipment, including
7repair and replacement parts, both new and used, including that
8manufactured on special order, certified by the purchaser to be
9used primarily for photoprocessing, and including
10photoprocessing machinery and equipment purchased for lease.
11    (21) Until July 1, 2003, coal exploration, mining,
12offhighway hauling, processing, maintenance, and reclamation
13equipment, including replacement parts and equipment, and
14including equipment purchased for lease, but excluding motor
15vehicles required to be registered under the Illinois Vehicle
16Code.
17    (22) Fuel and petroleum products sold to or used by an air
18carrier, certified by the carrier to be used for consumption,
19shipment, or storage in the conduct of its business as an air
20common carrier, for a flight destined for or returning from a
21location or locations outside the United States without regard
22to previous or subsequent domestic stopovers.
23    (23) A transaction in which the purchase order is received
24by a florist who is located outside Illinois, but who has a
25florist located in Illinois deliver the property to the
26purchaser or the purchaser's donee in Illinois.

 

 

09700HB0026ham001- 26 -LRB097 02778 HLH 51875 a

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

 

 

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1which the purchaser is a resident, except that the tax shall
2not exceed the tax that would otherwise be imposed under this
3Act. At the time of the sale, the purchaser shall execute a
4statement, signed under penalty of perjury, of his or her
5intent to title the vehicle in the state in which the purchaser
6is a resident within 30 days after the sale and of the fact of
7the payment to the State of Illinois of tax in an amount
8equivalent to the state's rate of tax on taxable property in
9his or her state of residence and shall submit the statement to
10the appropriate tax collection agency in his or her state of
11residence. In addition, the retailer must retain a signed copy
12of the statement in his or her records. Nothing in this item
13shall be construed to require the removal of the vehicle from
14this state following the filing of an intent to title the
15vehicle in the purchaser's state of residence if the purchaser
16titles the vehicle in his or her state of residence within 30
17days after the date of sale. The tax collected under this Act
18in accordance with this item (25-5) shall be proportionately
19distributed as if the tax were collected at the 6.25% general
20rate imposed under this Act.
21    (25-7) Beginning on July 1, 2007, no tax is imposed under
22this Act on the sale of an aircraft, as defined in Section 3 of
23the Illinois Aeronautics Act, if all of the following
24conditions are met:
25        (1) the aircraft leaves this State within 15 days after
26    the later of either the issuance of the final billing for

 

 

09700HB0026ham001- 28 -LRB097 02778 HLH 51875 a

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

 

 

09700HB0026ham001- 29 -LRB097 02778 HLH 51875 a

1Section 2-70.
2    (26) Semen used for artificial insemination of livestock
3for direct agricultural production.
4    (27) Horses, or interests in horses, registered with and
5meeting the requirements of any of the Arabian Horse Club
6Registry of America, Appaloosa Horse Club, American Quarter
7Horse Association, United States Trotting Association, or
8Jockey Club, as appropriate, used for purposes of breeding or
9racing for prizes. This item (27) is exempt from the provisions
10of Section 2-70, and the exemption provided for under this item
11(27) applies for all periods beginning May 30, 1995, but no
12claim for credit or refund is allowed on or after January 1,
132008 (the effective date of Public Act 95-88) for such taxes
14paid during the period beginning May 30, 2000 and ending on
15January 1, 2008 (the effective date of Public Act 95-88).
16    (28) Computers and communications equipment utilized for
17any hospital purpose and equipment used in the diagnosis,
18analysis, or treatment of hospital patients sold to a lessor
19who leases the equipment, under a lease of one year or longer
20executed or in effect at the time of the purchase, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23this Act.
24    (29) Personal property sold to a lessor who leases the
25property, under a lease of one year or longer executed or in
26effect at the time of the purchase, to a governmental body that

 

 

09700HB0026ham001- 30 -LRB097 02778 HLH 51875 a

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

 

 

09700HB0026ham001- 31 -LRB097 02778 HLH 51875 a

1hunting area" as those terms are used in the Wildlife Code or
2at a hunting enclosure approved through rules adopted by the
3Department of Natural Resources. This paragraph is exempt from
4the provisions of Section 2-70.
5    (33) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the Department
9to be organized and operated exclusively for educational
10purposes. For purposes of this exemption, "a corporation,
11limited liability company, society, association, foundation,
12or institution organized and operated exclusively for
13educational purposes" means all tax-supported public schools,
14private schools that offer systematic instruction in useful
15branches of learning by methods common to public schools and
16that compare favorably in their scope and intensity with the
17course of study presented in tax-supported schools, and
18vocational or technical schools or institutes organized and
19operated exclusively to provide a course of study of not less
20than 6 weeks duration and designed to prepare individuals to
21follow a trade or to pursue a manual, technical, mechanical,
22industrial, business, or commercial occupation.
23    (34) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

 

 

09700HB0026ham001- 32 -LRB097 02778 HLH 51875 a

1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 2-70.
11    (35) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and other
14items, and replacement parts for these machines. Beginning
15January 1, 2002 and through June 30, 2003, machines and parts
16for machines used in commercial, coin-operated amusement and
17vending business if a use or occupation tax is paid on the
18gross receipts derived from the use of the commercial,
19coin-operated amusement and vending machines. This paragraph
20is exempt from the provisions of Section 2-70.
21    (35-5) Beginning August 23, 2001 and through June 30, 2011,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft
24drinks, and food that has been prepared for immediate
25consumption) and prescription and nonprescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

09700HB0026ham001- 33 -LRB097 02778 HLH 51875 a

1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or a licensed facility as defined in
6the MR/DD Community Care Act.
7    (36) Beginning August 2, 2001, computers and
8communications equipment utilized for any hospital purpose and
9equipment used in the diagnosis, analysis, or treatment of
10hospital patients sold to a lessor who leases the equipment,
11under a lease of one year or longer executed or in effect at
12the time of the purchase, to a hospital that has been issued an
13active tax exemption identification number by the Department
14under Section 1g of this Act. This paragraph is exempt from the
15provisions of Section 2-70.
16    (37) Beginning August 2, 2001, personal property sold to a
17lessor who leases the property, under a lease of one year or
18longer executed or in effect at the time of the purchase, to a
19governmental body that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21this Act. This paragraph is exempt from the provisions of
22Section 2-70.
23    (38) Beginning on January 1, 2002 and through June 30,
242011, tangible personal property purchased from an Illinois
25retailer by a taxpayer engaged in centralized purchasing
26activities in Illinois who will, upon receipt of the property

 

 

09700HB0026ham001- 34 -LRB097 02778 HLH 51875 a

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

 

 

09700HB0026ham001- 35 -LRB097 02778 HLH 51875 a

1    (40) Beginning January 1, 2010, materials, parts,
2equipment, components, and furnishings incorporated into or
3upon an aircraft as part of the modification, refurbishment,
4completion, replacement, repair, or maintenance of the
5aircraft. This exemption includes consumable supplies used in
6the modification, refurbishment, completion, replacement,
7repair, and maintenance of aircraft, but excludes any
8materials, parts, equipment, components, and consumable
9supplies used in the modification, replacement, repair, and
10maintenance of aircraft engines or power plants, whether such
11engines or power plants are installed or uninstalled upon any
12such aircraft. "Consumable supplies" include, but are not
13limited to, adhesive, tape, sandpaper, general purpose
14lubricants, cleaning solution, latex gloves, and protective
15films. This exemption applies only to those organizations that
16(i) hold an Air Agency Certificate and are empowered to operate
17an approved repair station by the Federal Aviation
18Administration, (ii) have a Class IV Rating, and (iii) conduct
19operations in accordance with Part 145 of the Federal Aviation
20Regulations. The exemption does not include aircraft operated
21by a commercial air carrier providing scheduled passenger air
22service pursuant to authority issued under Part 121 or Part 129
23of the Federal Aviation Regulations.
24    (41) Tangible personal property sold to a
25public-facilities corporation, as described in Section
2611-65-10 of the Illinois Municipal Code, for purposes of

 

 

09700HB0026ham001- 36 -LRB097 02778 HLH 51875 a

1constructing or furnishing a municipal convention hall, but
2only if the legal title to the municipal convention hall is
3transferred to the municipality without any further
4consideration by or on behalf of the municipality at the time
5of the completion of the municipal convention hall or upon the
6retirement or redemption of any bonds or other debt instruments
7issued by the public-facilities corporation in connection with
8the development of the municipal convention hall. This
9exemption includes existing public-facilities corporations as
10provided in Section 11-65-25 of the Illinois Municipal Code.
11This paragraph is exempt from the provisions of Section 2-70.
12    (42) Distributed wind energy devices, as defined in Section
1310-600 of the Property Tax Code.
14(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
15eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;
1695-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
177-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
18eff. 7-2-10.)
 
19    Section 15. The Property Tax Code is amended by changing
20Sections 10-600 and 10-610 as follows:
 
21    (35 ILCS 200/10-600)
22    Sec. 10-600. Definitions. For the purposes of this Division
2318:
24    "Wind energy device" means any device, with a nameplate

 

 

09700HB0026ham001- 37 -LRB097 02778 HLH 51875 a

1capacity of at least 0.5 megawatts, that is used in the process
2of converting kinetic energy from the wind to generate electric
3power for commercial sale.
4    "Distributed wind energy device" means any device
5generating electric power from wind energy with a nameplate
6capacity of less than 0.5 megawatts, as well as any tower,
7blade, support structure, base, guy wires, electronics, and any
8other equipment related to the generation of electricity from
9wind energy.
10    "2007 real property cost basis" excludes personal property
11but represents both the land and real property improvements of
12a wind energy device and means $360,000 per megawatt of
13nameplate capacity.
14    "Trending factor" means a number equal to the consumer
15price index (U.S. city average all items) published by the
16Bureau of Labor Statistics for the December immediately
17preceding the assessment date, divided by the consumer price
18index (U.S. city average all items) published by the Bureau of
19Labor Statistics for December 2006.
20    "Trended real property cost basis" means the 2007 real
21property cost basis multiplied by the trending factor.
22    "Allowance for physical depreciation" means (i) the actual
23age in years of the wind energy device on the assessment date
24divided by 25 years multiplied by (ii) the trended real
25property cost basis. The physical depreciation, however, may
26not reduce the value of the wind energy device to less than 30%

 

 

09700HB0026ham001- 38 -LRB097 02778 HLH 51875 a

1of the trended real property cost basis.
2(Source: P.A. 95-644, eff. 10-12-07.)
 
3    (35 ILCS 200/10-610)
4    Sec. 10-610. Applicability.
5    (a) The provisions of this Division apply for assessment
6years 2007 through 2016.
7    (b) The provisions of this Division do not apply to wind
8energy devices that are owned by any person or entity that is
9otherwise exempt from taxation under the Property Tax Code.
10    (c) The provisions of this Division do not apply to
11distributed wind energy devices as defined in Section 10-600.
12(Source: P.A. 95-644, eff. 10-12-07; 96-1036, eff. 1-1-11.)".