97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3267

 

Introduced 2/24/2011, by Rep. Kay Hatcher - Chris Nybo - Thomas Morrison - Dwight Kay - Michael Unes, et al.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 120/2-5
625 ILCS 5/3-1001  from Ch. 95 1/2, par. 3-1001

    Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the motor vehicle privilege tax provisions of the Illinois Vehicle Code. Exempts from these taxes motor vehicles sold to an Illinois resident who is a service member on active duty or returning to Illinois from active duty and who applies for registration in Illinois while on active duty or within one year after leaving active duty.


LRB097 07728 HLH 47839 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3267LRB097 07728 HLH 47839 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) 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 to the living quarters from the driver's seat, or a
25motor 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.
5    (11) Farm machinery and equipment, both new and used,
6including that manufactured on special order, certified by the
7purchaser to be used primarily for production agriculture or
8State or federal agricultural programs, including individual
9replacement parts for the machinery and equipment, including
10machinery and equipment purchased for lease, and including
11implements of husbandry defined in Section 1-130 of the
12Illinois Vehicle Code, farm machinery and agricultural
13chemical and fertilizer spreaders, and nurse wagons required to
14be registered under Section 3-809 of the Illinois Vehicle Code,
15but excluding other motor vehicles required to be registered
16under the Illinois Vehicle Code. Horticultural polyhouses or
17hoop houses used for propagating, growing, or overwintering
18plants shall be considered farm machinery and equipment under
19this item (11). Agricultural chemical tender tanks and dry
20boxes shall include units sold separately from a motor vehicle
21required to be licensed and units sold mounted on a motor
22vehicle required to be licensed if the selling price of the
23tender is separately stated.
24    Farm machinery and equipment shall include precision
25farming equipment that is installed or purchased to be
26installed on farm machinery and equipment including, but not

 

 

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1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (11) is exempt from the
13provisions of Section 3-90.
14    (12) Fuel and petroleum products sold to or used by an air
15common carrier, certified by the carrier to be used for
16consumption, shipment, or storage in the conduct of its
17business as an air common carrier, for a flight destined for or
18returning from a location or locations outside the United
19States without regard to previous or subsequent domestic
20stopovers.
21    (13) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages purchased at retail from a retailer, to the
24extent that the proceeds of the service charge are in fact
25turned over as tips or as a substitute for tips to the
26employees who participate directly in preparing, serving,

 

 

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1hosting or cleaning up the food or beverage function with
2respect to which the service charge is imposed.
3    (14) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (15) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (16) Until July 1, 2003, coal exploration, mining,
18offhighway hauling, processing, maintenance, and reclamation
19equipment, including replacement parts and equipment, and
20including equipment purchased for lease, but excluding motor
21vehicles required to be registered under the Illinois Vehicle
22Code.
23    (17) Until July 1, 2003, distillation machinery and
24equipment, sold as a unit or kit, assembled or installed by the
25retailer, certified by the user to be used only for the
26production of ethyl alcohol that will be used for consumption

 

 

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1as motor fuel or as a component of motor fuel for the personal
2use of the user, and not subject to sale or resale.
3    (18) Manufacturing and assembling machinery and equipment
4used primarily in the process of manufacturing or assembling
5tangible personal property for wholesale or retail sale or
6lease, whether that sale or lease is made directly by the
7manufacturer or by some other person, whether the materials
8used in the process are owned by the manufacturer or some other
9person, or whether that sale or lease is made apart from or as
10an incident to the seller's engaging in the service occupation
11of producing machines, tools, dies, jigs, patterns, gauges, or
12other similar items of no commercial value on special order for
13a particular purchaser.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the provisions

 

 

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1of Section 3-90, and the exemption provided for under this item
2(21) applies for all periods beginning May 30, 1995, but no
3claim for credit or refund is allowed on or after January 1,
42008 for such taxes paid during the period beginning May 30,
52000 and ending on January 1, 2008.
6    (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, 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
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. If the equipment is leased in a
15manner that does not qualify for this exemption or is used in
16any other non-exempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Service Use Tax Act, as the
18case may be, based on the fair market value of the property at
19the time the non-qualifying use occurs. No lessor shall collect
20or attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall have
25a legal right to claim a refund of that amount from the lessor.
26If, however, that amount is not refunded to the lessee for any

 

 

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1reason, the lessor is liable to pay that amount to the
2Department.
3    (23) Personal property purchased by a lessor who leases the
4property, under a lease of one year or longer executed or in
5effect at the time the lessor would otherwise be subject to the
6tax imposed by this Act, to a governmental body that has been
7issued an active sales tax exemption identification number by
8the Department under Section 1g of the Retailers' Occupation
9Tax Act. If the property is leased in a manner that does not
10qualify for this exemption or used in any other non-exempt
11manner, the lessor shall be liable for the tax imposed under
12this Act or the Service Use Tax Act, as the case may be, based
13on the fair market value of the property at the time the
14non-qualifying use occurs. No lessor shall collect or attempt
15to collect an amount (however designated) that purports to
16reimburse that lessor for the tax imposed by this Act or the
17Service Use Tax Act, as the case may be, if the tax has not been
18paid by the lessor. If a lessor improperly collects any such
19amount from the lessee, the lessee shall have a legal right to
20claim a refund of that amount from the lessor. If, however,
21that amount is not refunded to the lessee for any reason, the
22lessor is liable to pay that amount to the Department.
23    (24) Beginning with taxable years ending on or after
24December 31, 1995 and ending with taxable years ending on or
25before December 31, 2004, personal property that is donated for
26disaster relief to be used in a State or federally declared

 

 

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1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (25) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in the
10performance of infrastructure repairs in this State, including
11but not limited to municipal roads and streets, access roads,
12bridges, sidewalks, waste disposal systems, water and sewer
13line extensions, water distribution and purification
14facilities, storm water drainage and retention facilities, and
15sewage treatment facilities, resulting from a State or
16federally declared disaster in Illinois or bordering Illinois
17when such repairs are initiated on facilities located in the
18declared disaster area within 6 months after the disaster.
19    (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" or an "exotic
21game hunting area" as those terms are used in the Wildlife Code
22or at a hunting enclosure approved through rules adopted by the
23Department of Natural Resources. This paragraph is exempt from
24the provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-90.
5    (29) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-90.
15    (30) Beginning January 1, 2001 and through June 30, 2011,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the MR/DD Community Care Act.

 

 

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

 

 

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1of the 92nd General Assembly, personal property purchased by a
2lessor who leases the property, under a lease of one year or
3longer executed or in effect at the time the lessor would
4otherwise be subject to the tax imposed by this Act, to a
5governmental body that has been issued an active sales tax
6exemption identification number by the Department under
7Section 1g of the Retailers' Occupation Tax Act. If the
8property is leased in a manner that does not qualify for this
9exemption or used in any other nonexempt manner, the lessor
10shall be liable for the tax imposed under this Act or the
11Service Use Tax Act, as the case may be, based on the fair
12market value of the property at the time the nonqualifying use
13occurs. No lessor shall collect or attempt to collect an amount
14(however designated) that purports to reimburse that lessor for
15the tax imposed by this Act or the Service Use Tax Act, as the
16case may be, if the tax has not been paid by the lessor. If a
17lessor improperly collects any such amount from the lessee, the
18lessee shall have a legal right to claim a refund of that
19amount from the lessor. If, however, that amount is not
20refunded to the lessee for any reason, the lessor is liable to
21pay that amount to the Department. This paragraph is exempt
22from the provisions of Section 3-90.
23    (33) On and after July 1, 2003 and through June 30, 2004,
24the use in this State of motor vehicles of the second division
25with a gross vehicle weight in excess of 8,000 pounds and that
26are subject to the commercial distribution fee imposed under

 

 

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1Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
21, 2004 and through June 30, 2005, the use in this State of
3motor vehicles of the second division: (i) with a gross vehicle
4weight rating in excess of 8,000 pounds; (ii) that are subject
5to the commercial distribution fee imposed under Section
63-815.1 of the Illinois Vehicle Code; and (iii) that are
7primarily used for commercial purposes. Through June 30, 2005,
8this exemption applies to repair and replacement parts added
9after the initial purchase of such a motor vehicle if that
10motor vehicle is used in a manner that would qualify for the
11rolling stock exemption otherwise provided for in this Act. For
12purposes of this paragraph, the term "used for commercial
13purposes" means the transportation of persons or property in
14furtherance of any commercial or industrial enterprise,
15whether for-hire or not.
16    (34) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued under
21Title IV of the Environmental Protection Act. This paragraph is
22exempt from the provisions of Section 3-90.
23    (35) Beginning January 1, 2010, materials, parts,
24equipment, components, and furnishings incorporated into or
25upon an aircraft as part of the modification, refurbishment,
26completion, replacement, repair, or maintenance of the

 

 

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1aircraft. This exemption includes consumable supplies used in
2the modification, refurbishment, completion, replacement,
3repair, and maintenance of aircraft, but excludes any
4materials, parts, equipment, components, and consumable
5supplies used in the modification, replacement, repair, and
6maintenance of aircraft engines or power plants, whether such
7engines or power plants are installed or uninstalled upon any
8such aircraft. "Consumable supplies" include, but are not
9limited to, adhesive, tape, sandpaper, general purpose
10lubricants, cleaning solution, latex gloves, and protective
11films. This exemption applies only to those organizations that
12(i) hold an Air Agency Certificate and are empowered to operate
13an approved repair station by the Federal Aviation
14Administration, (ii) have a Class IV Rating, and (iii) conduct
15operations in accordance with Part 145 of the Federal Aviation
16Regulations. The exemption does not include aircraft operated
17by a commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part 129
19of the Federal Aviation Regulations.
20    (36) Tangible personal property purchased by a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt instruments
3issued by the public-facilities corporation in connection with
4the development of the municipal convention hall. This
5exemption includes existing public-facilities corporations as
6provided in Section 11-65-25 of the Illinois Municipal Code.
7This paragraph is exempt from the provisions of Section 3-90.
8    (37) A motor vehicle sold to an Illinois resident who is a
9service member on active duty or returning to Illinois from
10active duty and who applies for registration of the motor
11vehicle in Illinois while on active duty or within one year
12after leaving active duty. For purposes of this exemption:
13"active duty" means active duty pursuant to an executive order
14of the President of the United States, an act of the Congress
15of the United States, or an order of the Governor; and "service
16member" means a member of the armed services or reserve forces
17of the United States or a member of the Illinois National
18Guard.
19(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876,
20eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
2196-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
227-2-10.)
 
23    Section 10. The Retailers' Occupation Tax Act is amended by
24changing Section 2-5 as follows:
 

 

 

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1    (35 ILCS 120/2-5)
2    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
3sale of the following tangible personal property are exempt
4from the tax imposed by this Act:
5    (1) Farm chemicals.
6    (2) Farm machinery and equipment, both new and used,
7including that manufactured on special order, certified by the
8purchaser to be used primarily for production agriculture or
9State or federal agricultural programs, including individual
10replacement parts for the machinery and equipment, including
11machinery and equipment purchased for lease, and including
12implements of husbandry defined in Section 1-130 of the
13Illinois Vehicle Code, farm machinery and agricultural
14chemical and fertilizer spreaders, and nurse wagons required to
15be registered under Section 3-809 of the Illinois Vehicle Code,
16but excluding other motor vehicles required to be registered
17under the Illinois Vehicle Code. Horticultural polyhouses or
18hoop houses used for propagating, growing, or overwintering
19plants shall be considered farm machinery and equipment under
20this item (2). Agricultural chemical tender tanks and dry boxes
21shall include units sold separately from a motor vehicle
22required to be licensed and units sold mounted on a motor
23vehicle required to be licensed, if the selling price of the
24tender is separately stated.
25    Farm machinery and equipment shall include precision
26farming equipment that is installed or purchased to be

 

 

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1installed on farm machinery and equipment including, but not
2limited to, tractors, harvesters, sprayers, planters, seeders,
3or spreaders. Precision farming equipment includes, but is not
4limited to, soil testing sensors, computers, monitors,
5software, global positioning and mapping systems, and other
6such equipment.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals. This item (7) is exempt from the
14provisions of Section 2-70.
15    (3) Until July 1, 2003, distillation machinery and
16equipment, sold as a unit or kit, assembled or installed by the
17retailer, certified by the user to be used only for the
18production of ethyl alcohol that will be used for consumption
19as motor fuel or as a component of motor fuel for the personal
20use of the user, and not subject to sale or resale.
21    (4) Until July 1, 2003 and beginning again September 1,
222004 through August 30, 2014, graphic arts machinery and
23equipment, including repair and replacement parts, both new and
24used, and including that manufactured on special order or
25purchased for lease, certified by the purchaser to be used
26primarily for graphic arts production. Equipment includes

 

 

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1chemicals or chemicals acting as catalysts but only if the
2chemicals or chemicals acting as catalysts effect a direct and
3immediate change upon a graphic arts product.
4    (5) A motor vehicle of the first division, a motor vehicle
5of the second division that is a self contained motor vehicle
6designed or permanently converted to provide living quarters
7for recreational, camping, or travel use, with direct walk
8through access to the living quarters from the driver's seat,
9or a motor vehicle of the second division that is of the van
10configuration designed for the transportation of not less than
117 nor more than 16 passengers, as defined in Section 1-146 of
12the Illinois Vehicle Code, that is used for automobile renting,
13as defined in the Automobile Renting Occupation and Use Tax
14Act. This paragraph is exempt from the provisions of Section
152-70.
16    (6) Personal property sold by a teacher-sponsored student
17organization affiliated with an elementary or secondary school
18located in Illinois.
19    (7) Until July 1, 2003, proceeds of that portion of the
20selling price of a passenger car the sale of which is subject
21to the Replacement Vehicle Tax.
22    (8) Personal property sold to an Illinois county fair
23association for use in conducting, operating, or promoting the
24county fair.
25    (9) Personal property sold to a not-for-profit arts or
26cultural organization that establishes, by proof required by

 

 

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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    (10) Personal property sold by a corporation, society,
15association, foundation, institution, or organization, other
16than a limited liability company, that is organized and
17operated as a not-for-profit service enterprise for the benefit
18of persons 65 years of age or older if the personal property
19was not purchased by the enterprise for the purpose of resale
20by the enterprise.
21    (11) Personal property sold to a governmental body, to a
22corporation, society, association, foundation, or institution
23organized and operated exclusively for charitable, religious,
24or educational purposes, or to a not-for-profit corporation,
25society, association, foundation, institution, or organization
26that has no compensated officers or employees and that is

 

 

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1organized and operated primarily for the recreation of persons
255 years of age or older. A limited liability company may
3qualify for the exemption under this paragraph only if the
4limited liability company is organized and operated
5exclusively for educational purposes. On and after July 1,
61987, however, no entity otherwise eligible for this exemption
7shall make tax-free purchases unless it has an active
8identification number issued by the Department.
9    (12) Tangible personal property sold to interstate
10carriers for hire for use as rolling stock moving in interstate
11commerce or to lessors under leases of one year or longer
12executed or in effect at the time of purchase by interstate
13carriers for hire for use as rolling stock moving in interstate
14commerce and equipment operated by a telecommunications
15provider, licensed as a common carrier by the Federal
16Communications Commission, which is permanently installed in
17or affixed to aircraft moving in interstate commerce.
18    (12-5) On and after July 1, 2003 and through June 30, 2004,
19motor vehicles of the second division with a gross vehicle
20weight in excess of 8,000 pounds that are subject to the
21commercial distribution fee imposed under Section 3-815.1 of
22the Illinois Vehicle Code. Beginning on July 1, 2004 and
23through June 30, 2005, the use in this State of motor vehicles
24of the second division: (i) with a gross vehicle weight rating
25in excess of 8,000 pounds; (ii) that are subject to the
26commercial distribution fee imposed under Section 3-815.1 of

 

 

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1the Illinois Vehicle Code; and (iii) that are primarily used
2for commercial purposes. Through June 30, 2005, this exemption
3applies to repair and replacement parts added after the initial
4purchase of such a motor vehicle if that motor vehicle is used
5in a manner that would qualify for the rolling stock exemption
6otherwise provided for in this Act. For purposes of this
7paragraph, "used for commercial purposes" means the
8transportation of persons or property in furtherance of any
9commercial or industrial enterprise whether for-hire or not.
10    (13) Proceeds from sales to owners, lessors, or shippers of
11tangible personal property that is utilized by interstate
12carriers for hire for use as rolling stock moving in interstate
13commerce and equipment operated by a telecommunications
14provider, licensed as a common carrier by the Federal
15Communications Commission, which is permanently installed in
16or affixed to aircraft moving in interstate commerce.
17    (14) Machinery and equipment that will be used by the
18purchaser, or a lessee of the purchaser, primarily in the
19process of manufacturing or assembling tangible personal
20property for wholesale or retail sale or lease, whether the
21sale or lease is made directly by the manufacturer or by some
22other person, whether the materials used in the process are
23owned by the manufacturer or some other person, or whether the
24sale or lease is made apart from or as an incident to the
25seller's engaging in the service occupation of producing
26machines, tools, dies, jigs, patterns, gauges, or other similar

 

 

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1items of no commercial value on special order for a particular
2purchaser.
3    (15) Proceeds of mandatory service charges separately
4stated on customers' bills for purchase and consumption of food
5and beverages, to the extent that the proceeds of the service
6charge are in fact turned over as tips or as a substitute for
7tips to the employees who participate directly in preparing,
8serving, hosting or cleaning up the food or beverage function
9with respect to which the service charge is imposed.
10    (16) Petroleum products sold to a purchaser if the seller
11is prohibited by federal law from charging tax to the
12purchaser.
13    (17) Tangible personal property sold to a common carrier by
14rail or motor that receives the physical possession of the
15property in Illinois and that transports the property, or
16shares with another common carrier in the transportation of the
17property, out of Illinois on a standard uniform bill of lading
18showing the seller of the property as the shipper or consignor
19of the property to a destination outside Illinois, for use
20outside Illinois.
21    (18) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (19) Until July 1 2003, oil field exploration, drilling,
26and production equipment, including (i) rigs and parts of rigs,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1Administration to an address located in this State.
2    This paragraph (25-7) is exempt from the provisions of
3Section 2-70.
4    (26) Semen used for artificial insemination of livestock
5for direct agricultural production.
6    (27) Horses, or interests in horses, registered with and
7meeting the requirements of any of the Arabian Horse Club
8Registry of America, Appaloosa Horse Club, American Quarter
9Horse Association, United States Trotting Association, or
10Jockey Club, as appropriate, used for purposes of breeding or
11racing for prizes. This item (27) is exempt from the provisions
12of Section 2-70, and the exemption provided for under this item
13(27) applies for all periods beginning May 30, 1995, but no
14claim for credit or refund is allowed on or after January 1,
152008 (the effective date of Public Act 95-88) for such taxes
16paid during the period beginning May 30, 2000 and ending on
17January 1, 2008 (the effective date of Public Act 95-88).
18    (28) Computers and communications equipment utilized for
19any hospital purpose and equipment used in the diagnosis,
20analysis, or treatment of hospital patients sold to a lessor
21who leases the equipment, under a lease of one year or longer
22executed or in effect at the time of the purchase, to a
23hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of
25this Act.
26    (29) Personal property sold to a lessor who leases the

 

 

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

 

 

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1    (32) Beginning July 1, 1999, game or game birds sold at a
2"game breeding and hunting preserve area" or an "exotic game
3hunting area" as those terms are used in the Wildlife Code or
4at a hunting enclosure approved through rules adopted by the
5Department of Natural Resources. This paragraph is exempt from
6the provisions of Section 2-70.
7    (33) A motor vehicle, as that term is defined in Section
81-146 of the Illinois Vehicle Code, that is donated to a
9corporation, limited liability company, society, association,
10foundation, or institution that is determined by the Department
11to be organized and operated exclusively for educational
12purposes. For purposes of this exemption, "a corporation,
13limited liability company, society, association, foundation,
14or institution organized and operated exclusively for
15educational purposes" means all tax-supported public schools,
16private schools that offer systematic instruction in useful
17branches of learning by methods common to public schools and
18that compare favorably in their scope and intensity with the
19course of study presented in tax-supported schools, and
20vocational or technical schools or institutes organized and
21operated exclusively to provide a course of study of not less
22than 6 weeks duration and designed to prepare individuals to
23follow a trade or to pursue a manual, technical, mechanical,
24industrial, business, or commercial occupation.
25    (34) Beginning January 1, 2000, personal property,
26including food, purchased through fundraising events for the

 

 

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1benefit of a public or private elementary or secondary school,
2a group of those schools, or one or more school districts if
3the events are sponsored by an entity recognized by the school
4district that consists primarily of volunteers and includes
5parents and teachers of the school children. This paragraph
6does not apply to fundraising events (i) for the benefit of
7private home instruction or (ii) for which the fundraising
8entity purchases the personal property sold at the events from
9another individual or entity that sold the property for the
10purpose of resale by the fundraising entity and that profits
11from the sale to the fundraising entity. This paragraph is
12exempt from the provisions of Section 2-70.
13    (35) Beginning January 1, 2000 and through December 31,
142001, new or used automatic vending machines that prepare and
15serve hot food and beverages, including coffee, soup, and other
16items, and replacement parts for these machines. Beginning
17January 1, 2002 and through June 30, 2003, machines and parts
18for machines used in commercial, coin-operated amusement and
19vending business if a use or occupation tax is paid on the
20gross receipts derived from the use of the commercial,
21coin-operated amusement and vending machines. This paragraph
22is exempt from the provisions of Section 2-70.
23    (35-5) Beginning August 23, 2001 and through June 30, 2011,
24food for human consumption that is to be consumed off the
25premises where it is sold (other than alcoholic beverages, soft
26drinks, and food that has been prepared for immediate

 

 

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1consumption) and prescription and nonprescription medicines,
2drugs, medical appliances, and insulin, urine testing
3materials, syringes, and needles used by diabetics, for human
4use, when purchased for use by a person receiving medical
5assistance under Article V of the Illinois Public Aid Code who
6resides in a licensed long-term care facility, as defined in
7the Nursing Home Care Act, or a licensed facility as defined in
8the MR/DD Community Care Act.
9    (36) Beginning August 2, 2001, computers and
10communications equipment utilized for any hospital purpose and
11equipment used in the diagnosis, analysis, or treatment of
12hospital patients sold to a lessor who leases the equipment,
13under a lease of one year or longer executed or in effect at
14the time of the purchase, to a hospital that has been issued an
15active tax exemption identification number by the Department
16under Section 1g of this Act. This paragraph is exempt from the
17provisions of Section 2-70.
18    (37) Beginning August 2, 2001, personal property sold to a
19lessor who leases the property, under a lease of one year or
20longer executed or in effect at the time of the purchase, to a
21governmental body that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23this Act. This paragraph is exempt from the provisions of
24Section 2-70.
25    (38) Beginning on January 1, 2002 and through June 30,
262011, tangible personal property purchased from an Illinois

 

 

HB3267- 34 -LRB097 07728 HLH 47839 b

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

 

 

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1Title IV of the Environmental Protection Act. This paragraph is
2exempt from the provisions of Section 2-70.
3    (40) Beginning January 1, 2010, materials, parts,
4equipment, components, and furnishings incorporated into or
5upon an aircraft as part of the modification, refurbishment,
6completion, replacement, repair, or maintenance of the
7aircraft. This exemption includes consumable supplies used in
8the modification, refurbishment, completion, replacement,
9repair, and maintenance of aircraft, but excludes any
10materials, parts, equipment, components, and consumable
11supplies used in the modification, replacement, repair, and
12maintenance of aircraft engines or power plants, whether such
13engines or power plants are installed or uninstalled upon any
14such aircraft. "Consumable supplies" include, but are not
15limited to, adhesive, tape, sandpaper, general purpose
16lubricants, cleaning solution, latex gloves, and protective
17films. This exemption applies only to those organizations that
18(i) hold an Air Agency Certificate and are empowered to operate
19an approved repair station by the Federal Aviation
20Administration, (ii) have a Class IV Rating, and (iii) conduct
21operations in accordance with Part 145 of the Federal Aviation
22Regulations. The exemption does not include aircraft operated
23by a commercial air carrier providing scheduled passenger air
24service pursuant to authority issued under Part 121 or Part 129
25of the Federal Aviation Regulations.
26    (41) Tangible personal property sold to a

 

 

HB3267- 36 -LRB097 07728 HLH 47839 b

1public-facilities corporation, as described in Section
211-65-10 of the Illinois Municipal Code, for purposes of
3constructing or furnishing a municipal convention hall, but
4only if the legal title to the municipal convention hall is
5transferred to the municipality without any further
6consideration by or on behalf of the municipality at the time
7of the completion of the municipal convention hall or upon the
8retirement or redemption of any bonds or other debt instruments
9issued by the public-facilities corporation in connection with
10the development of the municipal convention hall. This
11exemption includes existing public-facilities corporations as
12provided in Section 11-65-25 of the Illinois Municipal Code.
13This paragraph is exempt from the provisions of Section 2-70.
14    (42) A motor vehicle sold to an Illinois resident who is a
15service member on active duty or returning to Illinois from
16active duty and who applies for registration of the motor
17vehicle in Illinois while on active duty or within one year
18after leaving active duty. For purposes of this exemption:
19"active duty" means active duty pursuant to an executive order
20of the President of the United States, an act of the Congress
21of the United States, or an order of the Governor; and "service
22member" means a member of the armed services or reserve forces
23of the United States or a member of the Illinois National
24Guard.
25(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304,
26eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08;

 

 

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195-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff.
27-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000,
3eff. 7-2-10.)
 
4    Section 15. The Illinois Vehicle Code is amended by
5changing Section 3-1001 as follows:
 
6    (625 ILCS 5/3-1001)  (from Ch. 95 1/2, par. 3-1001)
7    Sec. 3-1001. A tax is hereby imposed on the privilege of
8using, in this State, any motor vehicle as defined in Section
91-146 of this Code acquired by gift, transfer, or purchase, and
10having a year model designation preceding the year of
11application for title by 5 or fewer years prior to October 1,
121985 and 10 or fewer years on and after October 1, 1985 and
13prior to January 1, 1988. On and after January 1, 1988, the tax
14shall apply to all motor vehicles without regard to model year.
15Except that the tax shall not apply
16        (i) if the use of the motor vehicle is otherwise taxed
17    under the Use Tax Act;
18        (ii) if the motor vehicle is bought and used by a
19    governmental agency or a society, association, foundation
20    or institution organized and operated exclusively for
21    charitable, religious or educational purposes;
22        (iii) if the use of the motor vehicle is not subject to
23    the Use Tax Act by reason of subsection (a), (b), (c), (d),
24    (e) or (f) of Section 3-55 of that Act dealing with the

 

 

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1    prevention of actual or likely multistate taxation;
2        (iv) to implements of husbandry;
3        (v) when a junking certificate is issued pursuant to
4    Section 3-117(a) of this Code;
5        (vi) when a vehicle is subject to the replacement
6    vehicle tax imposed by Section 3-2001 of this Act;
7        (vii) when the transfer is a gift to a beneficiary in
8    the administration of an estate and the beneficiary is a
9    surviving spouse.
10    The tax shall also not apply to a motor vehicle sold to an
11Illinois resident who is a service member on active duty or
12returning to Illinois from active duty and who applies for
13registration of the motor vehicle in Illinois while on active
14duty or within one year after leaving active duty. For purposes
15of this exemption: "active duty" means active duty pursuant to
16an executive order of the President of the United States, an
17act of the Congress of the United States, or an order of the
18Governor; and "service member" means a member of the armed
19services or reserve forces of the United States or a member of
20the Illinois National Guard.
21    Prior to January 1, 1988, the rate of tax shall be 5% of
22the selling price for each purchase of a motor vehicle covered
23by Section 3-1001 of this Code. Except as hereinafter provided,
24beginning January 1, 1988, the rate of tax shall be as follows
25for transactions in which the selling price of the motor
26vehicle is less than $15,000:

 

 

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1Number of Years Transpired AfterApplicable Tax
2Model Year of Motor Vehicle
31 or less$390
42290
53215
64165
75115
8690
9780
10865
11950
121040
13over 1025
14Except as hereinafter provided, beginning January 1, 1988, the
15rate of tax shall be as follows for transactions in which the
16selling price of the motor vehicle is $15,000 or more:
17Selling PriceApplicable Tax
18$15,000 - $19,999$ 750
19$20,000 - $24,999$1,000
20$25,000 - $29,999$1,250
21$30,000 and over$1,500
22For the following transactions, the tax rate shall be $15 for
23each motor vehicle acquired in such transaction:
24        (i) when the transferee or purchaser is the spouse,
25    mother, father, brother, sister or child of the transferor;
26        (ii) when the transfer is a gift to a beneficiary in

 

 

HB3267- 40 -LRB097 07728 HLH 47839 b

1    the administration of an estate and the beneficiary is not
2    a surviving spouse;
3        (iii) when a motor vehicle which has once been
4    subjected to the Illinois retailers' occupation tax or use
5    tax is transferred in connection with the organization,
6    reorganization, dissolution or partial liquidation of an
7    incorporated or unincorporated business wherein the
8    beneficial ownership is not changed.
9    A claim that the transaction is taxable under subparagraph
10(i) shall be supported by such proof of family relationship as
11provided by rules of the Department.
12    For a transaction in which a motorcycle, motor driven cycle
13or moped is acquired the tax rate shall be $25.
14    On and after October 1, 1985, 1/12 of $5,000,000 of the
15moneys received by the Department of Revenue pursuant to this
16Section shall be paid each month into the Build Illinois Fund
17and the remainder into the General Revenue Fund.
18    The tax imposed by this Section shall be abated and no
19longer imposed when the amount deposited to secure the bonds
20issued pursuant to the Build Illinois Bond Act is sufficient to
21provide for the payment of the principal of, and interest and
22premium, if any, on the bonds, as certified to the State
23Comptroller and the Director of Revenue by the Director of the
24Governor's Office of Management and Budget.
25(Source: P.A. 96-554, eff. 1-1-10.)