Rep. Jim Watson

Filed: 3/7/2011

 

 


 

 


 
09700HB2467ham001LRB097 07346 HLH 52140 a

1
AMENDMENT TO HOUSE BILL 2467

2    AMENDMENT NO. ______. Amend House Bill 2467 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, 2021
23June 30, 2011, food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, soft drinks, and food that has been
26prepared for immediate consumption) and prescription and

 

 

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1nonprescription medicines, drugs, medical appliances, and
2insulin, urine testing materials, syringes, and needles used by
3diabetics, for human use, when purchased for use by a person
4receiving medical assistance under Article V of the Illinois
5Public Aid Code who resides in a licensed long-term care
6facility, as defined in the Nursing Home Care Act, or in a
7licensed facility as defined in 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(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
16eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1796-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
187-2-10.)
 
19    Section 10. The Service Use Tax Act is amended by changing
20Section 3-5 as follows:
 
21    (35 ILCS 110/3-5)
22    Sec. 3-5. Exemptions. Use of the following tangible
23personal property is exempt from the tax imposed by this Act:
24    (1) Personal property purchased from a corporation,

 

 

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1society, association, foundation, institution, or
2organization, other than a limited liability company, that is
3organized and operated as a not-for-profit service enterprise
4for the benefit of persons 65 years of age or older if the
5personal property was not purchased by the enterprise for the
6purpose of resale by the enterprise.
7    (2) Personal property purchased by a non-profit Illinois
8county fair association for use in conducting, operating, or
9promoting the county fair.
10    (3) Personal property purchased by a not-for-profit arts or
11cultural organization that establishes, by proof required by
12the Department by rule, that it has received an exemption under
13Section 501(c)(3) of the Internal Revenue Code and that is
14organized and operated primarily for the presentation or
15support of arts or cultural programming, activities, or
16services. These organizations include, but are not limited to,
17music and dramatic arts organizations such as symphony
18orchestras and theatrical groups, arts and cultural service
19organizations, local arts councils, visual arts organizations,
20and media arts organizations. On and after the effective date
21of this amendatory Act of the 92nd General Assembly, however,
22an entity otherwise eligible for this exemption shall not make
23tax-free purchases unless it has an active identification
24number issued by the Department.
25    (4) Legal tender, currency, medallions, or gold or silver
26coinage issued by the State of Illinois, the government of the

 

 

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1United States of America, or the government of any foreign
2country, and bullion.
3    (5) Until July 1, 2003 and beginning again on September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new and
6used, and including that manufactured on special order or
7purchased for lease, certified by the purchaser to be used
8primarily for graphic arts production. Equipment includes
9chemicals or chemicals acting as catalysts but only if the
10chemicals or chemicals acting as catalysts effect a direct and
11immediate change upon a graphic arts product.
12    (6) Personal property purchased from a teacher-sponsored
13student organization affiliated with an elementary or
14secondary school located in Illinois.
15    (7) Farm machinery and equipment, both new and used,
16including that manufactured on special order, certified by the
17purchaser to be used primarily for production agriculture or
18State or federal agricultural programs, including individual
19replacement parts for the machinery and equipment, including
20machinery and equipment purchased for lease, and including
21implements of husbandry defined in Section 1-130 of the
22Illinois Vehicle Code, farm machinery and agricultural
23chemical and fertilizer spreaders, and nurse wagons required to
24be registered under Section 3-809 of the Illinois Vehicle Code,
25but excluding other motor vehicles required to be registered
26under the Illinois Vehicle Code. Horticultural polyhouses or

 

 

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1hoop houses used for propagating, growing, or overwintering
2plants shall be considered farm machinery and equipment under
3this item (7). Agricultural chemical tender tanks and dry boxes
4shall include units sold separately from a motor vehicle
5required to be licensed and units sold mounted on a motor
6vehicle required to be licensed if the selling price of the
7tender is separately stated.
8    Farm machinery and equipment shall include precision
9farming equipment that is installed or purchased to be
10installed on farm machinery and equipment including, but not
11limited to, tractors, harvesters, sprayers, planters, seeders,
12or spreaders. Precision farming equipment includes, but is not
13limited to, soil testing sensors, computers, monitors,
14software, global positioning and mapping systems, and other
15such equipment.
16    Farm machinery and equipment also includes computers,
17sensors, software, and related equipment used primarily in the
18computer-assisted operation of production agriculture
19facilities, equipment, and activities such as, but not limited
20to, the collection, monitoring, and correlation of animal and
21crop data for the purpose of formulating animal diets and
22agricultural chemicals. This item (7) is exempt from the
23provisions of Section 3-75.
24    (8) Fuel and petroleum products sold to or used by an air
25common carrier, certified by the carrier to be used for
26consumption, shipment, or storage in the conduct of its

 

 

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1business as an air common carrier, for a flight destined for or
2returning from a location or locations outside the United
3States without regard to previous or subsequent domestic
4stopovers.
5    (9) Proceeds of mandatory service charges separately
6stated on customers' bills for the purchase and consumption of
7food and beverages acquired as an incident to the purchase of a
8service from a serviceman, to the extent that the proceeds of
9the service charge are in fact turned over as tips or as a
10substitute for tips to the employees who participate directly
11in preparing, serving, hosting or cleaning up the food or
12beverage function with respect to which the service charge is
13imposed.
14    (10) Until July 1, 2003, oil field exploration, drilling,
15and production equipment, including (i) rigs and parts of rigs,
16rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
17tubular goods, including casing and drill strings, (iii) pumps
18and pump-jack units, (iv) storage tanks and flow lines, (v) any
19individual replacement part for oil field exploration,
20drilling, and production equipment, and (vi) machinery and
21equipment purchased for lease; but excluding motor vehicles
22required to be registered under the Illinois Vehicle Code.
23    (11) Proceeds from the sale of photoprocessing machinery
24and equipment, including repair and replacement parts, both new
25and used, including that manufactured on special order,
26certified by the purchaser to be used primarily for

 

 

09700HB2467ham001- 22 -LRB097 07346 HLH 52140 a

1photoprocessing, and including photoprocessing machinery and
2equipment purchased for lease.
3    (12) Until July 1, 2003, coal exploration, mining,
4offhighway hauling, processing, maintenance, and reclamation
5equipment, including replacement parts and equipment, and
6including equipment purchased for lease, but excluding motor
7vehicles required to be registered under the Illinois Vehicle
8Code.
9    (13) Semen used for artificial insemination of livestock
10for direct agricultural production.
11    (14) Horses, or interests in horses, registered with and
12meeting the requirements of any of the Arabian Horse Club
13Registry of America, Appaloosa Horse Club, American Quarter
14Horse Association, United States Trotting Association, or
15Jockey Club, as appropriate, used for purposes of breeding or
16racing for prizes. This item (14) is exempt from the provisions
17of Section 3-75, and the exemption provided for under this item
18(14) applies for all periods beginning May 30, 1995, but no
19claim for credit or refund is allowed on or after the effective
20date of this amendatory Act of the 95th General Assembly for
21such taxes paid during the period beginning May 30, 2000 and
22ending on the effective date of this amendatory Act of the 95th
23General Assembly.
24    (15) Computers and communications equipment utilized for
25any hospital purpose and equipment used in the diagnosis,
26analysis, or treatment of hospital patients purchased by a

 

 

09700HB2467ham001- 23 -LRB097 07346 HLH 52140 a

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

 

 

09700HB2467ham001- 24 -LRB097 07346 HLH 52140 a

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

 

 

09700HB2467ham001- 25 -LRB097 07346 HLH 52140 a

1performance of infrastructure repairs in this State, including
2but not limited to municipal roads and streets, access roads,
3bridges, sidewalks, waste disposal systems, water and sewer
4line extensions, water distribution and purification
5facilities, storm water drainage and retention facilities, and
6sewage treatment facilities, resulting from a State or
7federally declared disaster in Illinois or bordering Illinois
8when such repairs are initiated on facilities located in the
9declared disaster area within 6 months after the disaster.
10    (19) Beginning July 1, 1999, game or game birds purchased
11at a "game breeding and hunting preserve area" or an "exotic
12game hunting area" as those terms are used in the Wildlife Code
13or at a hunting enclosure approved through rules adopted by the
14Department of Natural Resources. This paragraph is exempt from
15the provisions of Section 3-75.
16    (20) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

09700HB2467ham001- 26 -LRB097 07346 HLH 52140 a

1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (21) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-75.
22    (22) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

09700HB2467ham001- 27 -LRB097 07346 HLH 52140 a

1for machines used in commercial, coin-operated amusement and
2vending business if a use or occupation tax is paid on the
3gross receipts derived from the use of the commercial,
4coin-operated amusement and vending machines. This paragraph
5is exempt from the provisions of Section 3-75.
6    (23) Beginning August 23, 2001 and through June 30, 2021
7June 30, 2011, food for human consumption that is to be
8consumed off the premises where it is sold (other than
9alcoholic beverages, soft drinks, and food that has been
10prepared for immediate consumption) and prescription and
11nonprescription medicines, drugs, medical appliances, and
12insulin, urine testing materials, syringes, and needles used by
13diabetics, for human use, when purchased for use by a person
14receiving medical assistance under Article V of the Illinois
15Public Aid Code who resides in a licensed long-term care
16facility, as defined in the Nursing Home Care Act, or in a
17licensed facility as defined in the MR/DD Community Care Act.
18    (24) Beginning on the effective date of this amendatory Act
19of the 92nd General Assembly, computers and communications
20equipment utilized for any hospital purpose and equipment used
21in the diagnosis, analysis, or treatment of hospital patients
22purchased by a lessor who leases the equipment, under a lease
23of one year or longer executed or in effect at the time the
24lessor would otherwise be subject to the tax imposed by this
25Act, to a hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of the

 

 

09700HB2467ham001- 28 -LRB097 07346 HLH 52140 a

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

 

 

09700HB2467ham001- 29 -LRB097 07346 HLH 52140 a

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

 

 

09700HB2467ham001- 30 -LRB097 07346 HLH 52140 a

1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to those organizations that
8(i) hold an Air Agency Certificate and are empowered to operate
9an approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations. The exemption does not include aircraft operated
13by a commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part 129
15of the Federal Aviation Regulations.
16    (28) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

09700HB2467ham001- 31 -LRB097 07346 HLH 52140 a

1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 3-75.
4(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
5eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
696-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
77-2-10.)
 
8    Section 15. The Service Occupation Tax Act is amended by
9changing Section 3-5 as follows:
 
10    (35 ILCS 115/3-5)
11    Sec. 3-5. Exemptions. The following tangible personal
12property is exempt from the tax imposed by this Act:
13    (1) Personal property sold by a corporation, society,
14association, foundation, institution, or organization, other
15than a limited liability company, that is organized and
16operated as a not-for-profit service enterprise for the benefit
17of persons 65 years of age or older if the personal property
18was not purchased by the enterprise for the purpose of resale
19by the enterprise.
20    (2) Personal property purchased by a not-for-profit
21Illinois county fair association for use in conducting,
22operating, or promoting the county fair.
23    (3) Personal property purchased by any not-for-profit arts
24or cultural organization that establishes, by proof required by

 

 

09700HB2467ham001- 32 -LRB097 07346 HLH 52140 a

1the Department by rule, that it has received an exemption under
2Section 501(c)(3) of the Internal Revenue Code and that is
3organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after the effective date
10of this amendatory Act of the 92nd General Assembly, however,
11an entity otherwise eligible for this exemption shall not make
12tax-free purchases unless it has an active identification
13number issued by the Department.
14    (4) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18    (5) Until July 1, 2003 and beginning again on September 1,
192004 through August 30, 2014, graphic arts machinery and
20equipment, including repair and replacement parts, both new and
21used, and including that manufactured on special order or
22purchased for lease, certified by the purchaser to be used
23primarily for graphic arts production. Equipment includes
24chemicals or chemicals acting as catalysts but only if the
25chemicals or chemicals acting as catalysts effect a direct and
26immediate change upon a graphic arts product.

 

 

09700HB2467ham001- 33 -LRB097 07346 HLH 52140 a

1    (6) Personal property sold by a teacher-sponsored student
2organization affiliated with an elementary or secondary school
3located in Illinois.
4    (7) 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 (7). 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,

 

 

09700HB2467ham001- 34 -LRB097 07346 HLH 52140 a

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 3-55.
13    (8) Fuel and petroleum products sold to or used by an air
14common carrier, certified by the carrier to be used for
15consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight destined for or
17returning from a location or locations outside the United
18States without regard to previous or subsequent domestic
19stopovers.
20    (9) Proceeds of mandatory service charges separately
21stated on customers' bills for the purchase and consumption of
22food and beverages, to the extent that the proceeds of the
23service charge are in fact turned over as tips or as a
24substitute for tips to the employees who participate directly
25in preparing, serving, hosting or cleaning up the food or
26beverage function with respect to which the service charge is

 

 

09700HB2467ham001- 35 -LRB097 07346 HLH 52140 a

1imposed.
2    (10) Until July 1, 2003, oil field exploration, drilling,
3and production equipment, including (i) rigs and parts of rigs,
4rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
5tubular goods, including casing and drill strings, (iii) pumps
6and pump-jack units, (iv) storage tanks and flow lines, (v) any
7individual replacement part for oil field exploration,
8drilling, and production equipment, and (vi) machinery and
9equipment purchased for lease; but excluding motor vehicles
10required to be registered under the Illinois Vehicle Code.
11    (11) Photoprocessing machinery and equipment, including
12repair and replacement parts, both new and used, including that
13manufactured on special order, certified by the purchaser to be
14used primarily for photoprocessing, and including
15photoprocessing machinery and equipment purchased for lease.
16    (12) Until July 1, 2003, coal exploration, mining,
17offhighway hauling, processing, maintenance, and reclamation
18equipment, including replacement parts and equipment, and
19including equipment purchased for lease, but excluding motor
20vehicles required to be registered under the Illinois Vehicle
21Code.
22    (13) Beginning January 1, 1992 and through June 30, 2021
23June 30, 2011, food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, soft drinks and food that has been
26prepared for immediate consumption) and prescription and

 

 

09700HB2467ham001- 36 -LRB097 07346 HLH 52140 a

1non-prescription medicines, drugs, medical appliances, and
2insulin, urine testing materials, syringes, and needles used by
3diabetics, for human use, when purchased for use by a person
4receiving medical assistance under Article V of the Illinois
5Public Aid Code who resides in a licensed long-term care
6facility, as defined in the Nursing Home Care Act, or in a
7licensed facility as defined in the MR/DD Community Care Act.
8    (14) Semen used for artificial insemination of livestock
9for direct agricultural production.
10    (15) Horses, or interests in horses, registered with and
11meeting the requirements of any of the Arabian Horse Club
12Registry of America, Appaloosa Horse Club, American Quarter
13Horse Association, United States Trotting Association, or
14Jockey Club, as appropriate, used for purposes of breeding or
15racing for prizes. This item (15) is exempt from the provisions
16of Section 3-55, and the exemption provided for under this item
17(15) applies for all periods beginning May 30, 1995, but no
18claim for credit or refund is allowed on or after January 1,
192008 (the effective date of Public Act 95-88) for such taxes
20paid during the period beginning May 30, 2000 and ending on
21January 1, 2008 (the effective date of Public Act 95-88).
22    (16) Computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients sold to a lessor
25who leases the equipment, under a lease of one year or longer
26executed or in effect at the time of the purchase, to a

 

 

09700HB2467ham001- 37 -LRB097 07346 HLH 52140 a

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

 

 

09700HB2467ham001- 38 -LRB097 07346 HLH 52140 a

1facilities, storm water drainage and retention facilities, and
2sewage treatment facilities, resulting from a State or
3federally declared disaster in Illinois or bordering Illinois
4when such repairs are initiated on facilities located in the
5declared disaster area within 6 months after the disaster.
6    (20) Beginning July 1, 1999, game or game birds sold at a
7"game breeding and hunting preserve area" or an "exotic game
8hunting area" as those terms are used in the Wildlife Code or
9at a hunting enclosure approved through rules adopted by the
10Department of Natural Resources. This paragraph is exempt from
11the provisions of Section 3-55.
12    (21) A motor vehicle, as that term is defined in Section
131-146 of the Illinois Vehicle Code, that is donated to a
14corporation, limited liability company, society, association,
15foundation, or institution that is determined by the Department
16to be organized and operated exclusively for educational
17purposes. For purposes of this exemption, "a corporation,
18limited liability company, society, association, foundation,
19or institution organized and operated exclusively for
20educational purposes" means all tax-supported public schools,
21private schools that offer systematic instruction in useful
22branches of learning by methods common to public schools and
23that compare favorably in their scope and intensity with the
24course of study presented in tax-supported schools, and
25vocational or technical schools or institutes organized and
26operated exclusively to provide a course of study of not less

 

 

09700HB2467ham001- 39 -LRB097 07346 HLH 52140 a

1than 6 weeks duration and designed to prepare individuals to
2follow a trade or to pursue a manual, technical, mechanical,
3industrial, business, or commercial occupation.
4    (22) Beginning January 1, 2000, personal property,
5including food, purchased through fundraising events for the
6benefit of a public or private elementary or secondary school,
7a group of those schools, or one or more school districts if
8the events are sponsored by an entity recognized by the school
9district that consists primarily of volunteers and includes
10parents and teachers of the school children. This paragraph
11does not apply to fundraising events (i) for the benefit of
12private home instruction or (ii) for which the fundraising
13entity purchases the personal property sold at the events from
14another individual or entity that sold the property for the
15purpose of resale by the fundraising entity and that profits
16from the sale to the fundraising entity. This paragraph is
17exempt from the provisions of Section 3-55.
18    (23) Beginning January 1, 2000 and through December 31,
192001, new or used automatic vending machines that prepare and
20serve hot food and beverages, including coffee, soup, and other
21items, and replacement parts for these machines. Beginning
22January 1, 2002 and through June 30, 2003, machines and parts
23for machines used in commercial, coin-operated amusement and
24vending business if a use or occupation tax is paid on the
25gross receipts derived from the use of the commercial,
26coin-operated amusement and vending machines. This paragraph

 

 

09700HB2467ham001- 40 -LRB097 07346 HLH 52140 a

1is exempt from the provisions of Section 3-55.
2    (24) Beginning on the effective date of this amendatory Act
3of the 92nd General Assembly, computers and communications
4equipment utilized for any hospital purpose and equipment used
5in the diagnosis, analysis, or treatment of hospital patients
6sold to a lessor who leases the equipment, under a lease of one
7year or longer executed or in effect at the time of the
8purchase, to a hospital that has been issued an active tax
9exemption identification number by the Department under
10Section 1g of the Retailers' Occupation Tax Act. This paragraph
11is exempt from the provisions of Section 3-55.
12    (25) Beginning on the effective date of this amendatory Act
13of the 92nd General Assembly, personal property sold to a
14lessor who leases the property, under a lease of one year or
15longer executed or in effect at the time of the purchase, to a
16governmental body that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act. This paragraph is exempt from
19the provisions of Section 3-55.
20    (26) Beginning on January 1, 2002 and through June 30,
212011, tangible personal property purchased from an Illinois
22retailer by a taxpayer engaged in centralized purchasing
23activities in Illinois who will, upon receipt of the property
24in Illinois, temporarily store the property in Illinois (i) for
25the purpose of subsequently transporting it outside this State
26for use or consumption thereafter solely outside this State or

 

 

09700HB2467ham001- 41 -LRB097 07346 HLH 52140 a

1(ii) for the purpose of being processed, fabricated, or
2manufactured into, attached to, or incorporated into other
3tangible personal property to be transported outside this State
4and thereafter used or consumed solely outside this State. The
5Director of Revenue shall, pursuant to rules adopted in
6accordance with the Illinois Administrative Procedure Act,
7issue a permit to any taxpayer in good standing with the
8Department who is eligible for the exemption under this
9paragraph (26). The permit issued under this paragraph (26)
10shall authorize the holder, to the extent and in the manner
11specified in the rules adopted under this Act, to purchase
12tangible personal property from a retailer exempt from the
13taxes imposed by this Act. Taxpayers shall maintain all
14necessary books and records to substantiate the use and
15consumption of all such tangible personal property outside of
16the State of Illinois.
17    (27) Beginning January 1, 2008, tangible personal property
18used in the construction or maintenance of a community water
19supply, as defined under Section 3.145 of the Environmental
20Protection Act, that is operated by a not-for-profit
21corporation that holds a valid water supply permit issued under
22Title IV of the Environmental Protection Act. This paragraph is
23exempt from the provisions of Section 3-55.
24    (28) Tangible personal property sold to a
25public-facilities corporation, as described in Section
2611-65-10 of the Illinois Municipal Code, for purposes of

 

 

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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 3-55.
12    (29) Beginning January 1, 2010, materials, parts,
13equipment, components, and furnishings incorporated into or
14upon an aircraft as part of the modification, refurbishment,
15completion, replacement, repair, or maintenance of the
16aircraft. This exemption includes consumable supplies used in
17the modification, refurbishment, completion, replacement,
18repair, and maintenance of aircraft, but excludes any
19materials, parts, equipment, components, and consumable
20supplies used in the modification, replacement, repair, and
21maintenance of aircraft engines or power plants, whether such
22engines or power plants are installed or uninstalled upon any
23such aircraft. "Consumable supplies" include, but are not
24limited to, adhesive, tape, sandpaper, general purpose
25lubricants, cleaning solution, latex gloves, and protective
26films. This exemption applies only to those organizations that

 

 

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1(i) hold an Air Agency Certificate and are empowered to operate
2an approved repair station by the Federal Aviation
3Administration, (ii) have a Class IV Rating, and (iii) conduct
4operations in accordance with Part 145 of the Federal Aviation
5Regulations. The exemption does not include aircraft operated
6by a commercial air carrier providing scheduled passenger air
7service pursuant to authority issued under Part 121 or Part 129
8of the Federal Aviation Regulations.
9(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
10eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1196-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
127-2-10.)
 
13    Section 20. The Retailers' Occupation Tax Act is amended by
14changing Section 2-5 as follows:
 
15    (35 ILCS 120/2-5)
16    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
17sale of the following tangible personal property are exempt
18from the tax imposed by this Act:
19    (1) Farm chemicals.
20    (2) Farm machinery and equipment, both new and used,
21including that manufactured on special order, certified by the
22purchaser to be used primarily for production agriculture or
23State or federal agricultural programs, including individual
24replacement parts for the machinery and equipment, including

 

 

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

 

 

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1to, the collection, monitoring, and correlation of animal and
2crop data for the purpose of formulating animal diets and
3agricultural chemicals. This item (7) is exempt from the
4provisions of Section 2-70.
5    (3) Until July 1, 2003, distillation machinery and
6equipment, sold as a unit or kit, assembled or installed by the
7retailer, certified by the user to be used only for the
8production of ethyl alcohol that will be used for consumption
9as motor fuel or as a component of motor fuel for the personal
10use of the user, and not subject to sale or resale.
11    (4) Until July 1, 2003 and beginning again September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new and
14used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product.
20    (5) A motor vehicle of the first division, a motor vehicle
21of the second division that is a self contained motor vehicle
22designed or permanently converted to provide living quarters
23for recreational, camping, or travel use, with direct walk
24through access to the living quarters from the driver's seat,
25or a motor vehicle of the second division that is of the van
26configuration designed for the transportation of not less than

 

 

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17 nor more than 16 passengers, as defined in Section 1-146 of
2the Illinois Vehicle Code, that is used for automobile renting,
3as defined in the Automobile Renting Occupation and Use Tax
4Act. This paragraph is exempt from the provisions of Section
52-70.
6    (6) Personal property sold by a teacher-sponsored student
7organization affiliated with an elementary or secondary school
8located in Illinois.
9    (7) Until July 1, 2003, proceeds of that portion of the
10selling price of a passenger car the sale of which is subject
11to the Replacement Vehicle Tax.
12    (8) Personal property sold to an Illinois county fair
13association for use in conducting, operating, or promoting the
14county fair.
15    (9) Personal property sold to a not-for-profit arts or
16cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after the effective date
26of this amendatory Act of the 92nd General Assembly, however,

 

 

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1an entity otherwise eligible for this exemption shall not make
2tax-free purchases unless it has an active identification
3number issued by the Department.
4    (10) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the benefit
8of persons 65 years of age or older if the personal property
9was not purchased by the enterprise for the purpose of resale
10by the enterprise.
11    (11) Personal property sold to a governmental body, to a
12corporation, society, association, foundation, or institution
13organized and operated exclusively for charitable, religious,
14or educational purposes, or to a not-for-profit corporation,
15society, association, foundation, institution, or organization
16that has no compensated officers or employees and that is
17organized and operated primarily for the recreation of persons
1855 years of age or older. A limited liability company may
19qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active
24identification number issued by the Department.
25    (12) Tangible personal property sold to interstate
26carriers for hire for use as rolling stock moving in interstate

 

 

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

 

 

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1tangible personal property that is utilized by interstate
2carriers for hire for use as rolling stock moving in interstate
3commerce and equipment operated by a telecommunications
4provider, licensed as a common carrier by the Federal
5Communications Commission, which is permanently installed in
6or affixed to aircraft moving in interstate commerce.
7    (14) Machinery and equipment that will be used by the
8purchaser, or a lessee of the purchaser, primarily in the
9process of manufacturing or assembling tangible personal
10property for wholesale or retail sale or lease, whether the
11sale or lease is made directly by the manufacturer or by some
12other person, whether the materials used in the process are
13owned by the manufacturer or some other person, or whether the
14sale or lease is made apart from or as an incident to the
15seller's engaging in the service occupation of producing
16machines, tools, dies, jigs, patterns, gauges, or other similar
17items of no commercial value on special order for a particular
18purchaser.
19    (15) Proceeds of mandatory service charges separately
20stated on customers' bills for purchase and consumption of food
21and beverages, to the extent that the proceeds of the service
22charge are in fact turned over as tips or as a substitute for
23tips to the employees who participate directly in preparing,
24serving, hosting or cleaning up the food or beverage function
25with respect to which the service charge is imposed.
26    (16) Petroleum products sold to a purchaser if the seller

 

 

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1is prohibited by federal law from charging tax to the
2purchaser.
3    (17) Tangible personal property sold to a common carrier by
4rail or motor that receives the physical possession of the
5property in Illinois and that transports the property, or
6shares with another common carrier in the transportation of the
7property, out of Illinois on a standard uniform bill of lading
8showing the seller of the property as the shipper or consignor
9of the property to a destination outside Illinois, for use
10outside Illinois.
11    (18) Legal tender, currency, medallions, or gold or silver
12coinage issued by the State of Illinois, the government of the
13United States of America, or the government of any foreign
14country, and bullion.
15    (19) Until July 1 2003, oil field exploration, drilling,
16and production equipment, including (i) rigs and parts of rigs,
17rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
18tubular goods, including casing and drill strings, (iii) pumps
19and pump-jack units, (iv) storage tanks and flow lines, (v) any
20individual replacement part for oil field exploration,
21drilling, and production equipment, and (vi) machinery and
22equipment purchased for lease; but excluding motor vehicles
23required to be registered under the Illinois Vehicle Code.
24    (20) Photoprocessing machinery and equipment, including
25repair and replacement parts, both new and used, including that
26manufactured on special order, certified by the purchaser to be

 

 

09700HB2467ham001- 51 -LRB097 07346 HLH 52140 a

1used primarily for photoprocessing, and including
2photoprocessing machinery and equipment purchased for lease.
3    (21) Until July 1, 2003, coal exploration, mining,
4offhighway hauling, processing, maintenance, and reclamation
5equipment, including replacement parts and equipment, and
6including equipment purchased for lease, but excluding motor
7vehicles required to be registered under the Illinois Vehicle
8Code.
9    (22) Fuel and petroleum products sold to or used by an air
10carrier, certified by the carrier to be used for consumption,
11shipment, or storage in the conduct of its business as an air
12common carrier, for a flight destined for or returning from a
13location or locations outside the United States without regard
14to previous or subsequent domestic stopovers.
15    (23) A transaction in which the purchase order is received
16by a florist who is located outside Illinois, but who has a
17florist located in Illinois deliver the property to the
18purchaser or the purchaser's donee in Illinois.
19    (24) Fuel consumed or used in the operation of ships,
20barges, or vessels that are used primarily in or for the
21transportation of property or the conveyance of persons for
22hire on rivers bordering on this State if the fuel is delivered
23by the seller to the purchaser's barge, ship, or vessel while
24it is afloat upon that bordering river.
25    (25) Except as provided in item (25-5) of this Section, a
26motor vehicle sold in this State to a nonresident even though

 

 

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

 

 

09700HB2467ham001- 53 -LRB097 07346 HLH 52140 a

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

 

 

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

 

 

09700HB2467ham001- 55 -LRB097 07346 HLH 52140 a

1racing for prizes. This item (27) is exempt from the provisions
2of Section 2-70, and the exemption provided for under this item
3(27) applies for all periods beginning May 30, 1995, but no
4claim for credit or refund is allowed on or after January 1,
52008 (the effective date of Public Act 95-88) for such taxes
6paid during the period beginning May 30, 2000 and ending on
7January 1, 2008 (the effective date of Public Act 95-88).
8    (28) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients sold to a lessor
11who leases the equipment, under a lease of one year or longer
12executed or in effect at the time of the purchase, to a
13hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of
15this Act.
16    (29) Personal property sold to a lessor who leases the
17property, under a lease of one year or longer executed or in
18effect at the time of the purchase, to a governmental body that
19has been issued an active tax exemption identification number
20by the Department under Section 1g of this Act.
21    (30) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is donated for
24disaster relief to be used in a State or federally declared
25disaster area in Illinois or bordering Illinois by a
26manufacturer or retailer that is registered in this State to a

 

 

09700HB2467ham001- 56 -LRB097 07346 HLH 52140 a

1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (31) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in the
8performance of infrastructure repairs in this State, including
9but not limited to municipal roads and streets, access roads,
10bridges, sidewalks, waste disposal systems, water and sewer
11line extensions, water distribution and purification
12facilities, storm water drainage and retention facilities, and
13sewage treatment facilities, resulting from a State or
14federally declared disaster in Illinois or bordering Illinois
15when such repairs are initiated on facilities located in the
16declared disaster area within 6 months after the disaster.
17    (32) Beginning July 1, 1999, game or game birds sold at a
18"game breeding and hunting preserve area" or an "exotic game
19hunting area" as those terms are used in the Wildlife Code or
20at a hunting enclosure approved through rules adopted by the
21Department of Natural Resources. This paragraph is exempt from
22the provisions of Section 2-70.
23    (33) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the Department

 

 

09700HB2467ham001- 57 -LRB097 07346 HLH 52140 a

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

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 2-70.
3    (35) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and other
6items, and replacement parts for these machines. Beginning
7January 1, 2002 and through June 30, 2003, machines and parts
8for machines used in commercial, coin-operated amusement and
9vending business if a use or occupation tax is paid on the
10gross receipts derived from the use of the commercial,
11coin-operated amusement and vending machines. This paragraph
12is exempt from the provisions of Section 2-70.
13    (35-5) Beginning August 23, 2001 and through June 30, 2021
14June 30, 2011, food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, soft drinks, and food that has been
17prepared for immediate consumption) and prescription and
18nonprescription medicines, drugs, medical appliances, and
19insulin, urine testing materials, syringes, and needles used by
20diabetics, for human use, when purchased for use by a person
21receiving medical assistance under Article V of the Illinois
22Public Aid Code who resides in a licensed long-term care
23facility, as defined in the Nursing Home Care Act, or a
24licensed facility as defined in the MR/DD Community Care Act.
25    (36) Beginning August 2, 2001, computers and
26communications equipment utilized for any hospital purpose and

 

 

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1equipment used in the diagnosis, analysis, or treatment of
2hospital patients sold to a lessor who leases the equipment,
3under a lease of one year or longer executed or in effect at
4the time of the purchase, to a hospital that has been issued an
5active tax exemption identification number by the Department
6under Section 1g of this Act. This paragraph is exempt from the
7provisions of Section 2-70.
8    (37) Beginning August 2, 2001, personal property sold to a
9lessor who leases the property, under a lease of one year or
10longer executed or in effect at the time of the purchase, to a
11governmental body that has been issued an active tax exemption
12identification number by the Department under Section 1g of
13this Act. This paragraph is exempt from the provisions of
14Section 2-70.
15    (38) Beginning on January 1, 2002 and through June 30,
162011, tangible personal property purchased from an Illinois
17retailer by a taxpayer engaged in centralized purchasing
18activities in Illinois who will, upon receipt of the property
19in Illinois, temporarily store the property in Illinois (i) for
20the purpose of subsequently transporting it outside this State
21for use or consumption thereafter solely outside this State or
22(ii) for the purpose of being processed, fabricated, or
23manufactured into, attached to, or incorporated into other
24tangible personal property to be transported outside this State
25and thereafter used or consumed solely outside this State. The
26Director of Revenue shall, pursuant to rules adopted in

 

 

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1accordance with the Illinois Administrative Procedure Act,
2issue a permit to any taxpayer in good standing with the
3Department who is eligible for the exemption under this
4paragraph (38). The permit issued under this paragraph (38)
5shall authorize the holder, to the extent and in the manner
6specified in the rules adopted under this Act, to purchase
7tangible personal property from a retailer exempt from the
8taxes imposed by this Act. Taxpayers shall maintain all
9necessary books and records to substantiate the use and
10consumption of all such tangible personal property outside of
11the State of Illinois.
12    (39) Beginning January 1, 2008, tangible personal property
13used in the construction or maintenance of a community water
14supply, as defined under Section 3.145 of the Environmental
15Protection Act, that is operated by a not-for-profit
16corporation that holds a valid water supply permit issued under
17Title IV of the Environmental Protection Act. This paragraph is
18exempt from the provisions of Section 2-70.
19    (40) Beginning January 1, 2010, materials, parts,
20equipment, components, and furnishings incorporated into or
21upon an aircraft as part of the modification, refurbishment,
22completion, replacement, repair, or maintenance of the
23aircraft. This exemption includes consumable supplies used in
24the modification, refurbishment, completion, replacement,
25repair, and maintenance of aircraft, but excludes any
26materials, parts, equipment, components, and consumable

 

 

09700HB2467ham001- 61 -LRB097 07346 HLH 52140 a

1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to those organizations that
8(i) hold an Air Agency Certificate and are empowered to operate
9an approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations. The exemption does not include aircraft operated
13by a commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part 129
15of the Federal Aviation Regulations.
16    (41) Tangible personal property sold to a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

09700HB2467ham001- 62 -LRB097 07346 HLH 52140 a

1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 2-70.
4(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
5eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;
695-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
77-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
8eff. 7-2-10.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".