SB3479 EngrossedLRB097 18737 HLH 63972 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    (Text of Section before amendment by P.A. 97-636)
8    Sec. 3-5. Exemptions. Use of the following tangible
9personal property is exempt from the tax imposed by this Act:
10    (1) Personal property purchased from a corporation,
11society, association, foundation, institution, or
12organization, other than a limited liability company, that is
13organized and operated as a not-for-profit service enterprise
14for the benefit of persons 65 years of age or older if the
15personal property was not purchased by the enterprise for the
16purpose of resale by the enterprise.
17    (2) Personal property purchased by a not-for-profit
18Illinois county fair association for use in conducting,
19operating, or promoting the county fair.
20    (3) Personal property purchased by a not-for-profit arts or
21cultural organization that establishes, by proof required by
22the Department by rule, that it has received an exemption under
23Section 501(c)(3) of the Internal Revenue Code and that is

 

 

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1organized and operated primarily for the presentation or
2support of arts or cultural programming, activities, or
3services. These organizations include, but are not limited to,
4music and dramatic arts organizations such as symphony
5orchestras and theatrical groups, arts and cultural service
6organizations, local arts councils, visual arts organizations,
7and media arts organizations. On and after the effective date
8of this amendatory Act of the 92nd General Assembly, however,
9an entity otherwise eligible for this exemption shall not make
10tax-free purchases unless it has an active identification
11number issued by the Department.
12    (4) Personal property purchased by a governmental body, by
13a corporation, society, association, foundation, or
14institution organized and operated exclusively for charitable,
15religious, or educational purposes, or by a not-for-profit
16corporation, society, association, foundation, institution, or
17organization that has no compensated officers or employees and
18that is organized and operated primarily for the recreation of
19persons 55 years of age or older. A limited liability company
20may qualify for the exemption under this paragraph only if the
21limited liability company is organized and operated
22exclusively for educational purposes. On and after July 1,
231987, however, no entity otherwise eligible for this exemption
24shall make tax-free purchases unless it has an active exemption
25identification number issued by the Department.
26    (5) Until July 1, 2003, a passenger car that is a

 

 

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1replacement vehicle to the extent that the purchase price of
2the car is subject to the Replacement Vehicle Tax.
3    (6) 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,
7certified by the purchaser to be used primarily for graphic
8arts production, and including machinery and equipment
9purchased for lease. Equipment includes chemicals or chemicals
10acting as catalysts but only if the chemicals or chemicals
11acting as catalysts effect a direct and immediate change upon a
12graphic arts product.
13    (7) Farm chemicals.
14    (8) 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    (9) Personal property purchased from a teacher-sponsored
19student organization affiliated with an elementary or
20secondary school located in Illinois.
21    (10) A motor vehicle of the first division, a motor vehicle
22of the second division that is a self-contained motor vehicle
23designed or permanently converted to provide living quarters
24for recreational, camping, or travel use, with direct walk
25through to the living quarters from the driver's seat, or a
26motor vehicle of the second division that is of the van

 

 

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1configuration designed for the transportation of not less than
27 nor more than 16 passengers, as defined in Section 1-146 of
3the Illinois Vehicle Code, that is used for automobile renting,
4as defined in the Automobile Renting Occupation and Use Tax
5Act.
6    (11) 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 (11). Agricultural chemical tender tanks and dry
21boxes shall 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 (11) is exempt from the
14provisions of Section 3-90.
15    (12) Fuel and petroleum products sold to or used by an air
16common carrier, certified by the carrier to be used for
17consumption, shipment, or storage in the conduct of its
18business as an air common carrier, for a flight destined for or
19returning from a location or locations outside the United
20States without regard to previous or subsequent domestic
21stopovers.
22    (13) Proceeds of mandatory service charges separately
23stated on customers' bills for the purchase and consumption of
24food and beverages purchased at retail from a retailer, to the
25extent that the proceeds of the service charge are in fact
26turned over as tips or as a substitute for tips to the

 

 

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

 

 

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

 

 

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1racing for prizes. This item (21) is exempt from the provisions
2of Section 3-90, and the exemption provided for under this item
3(21) applies for all periods beginning May 30, 1995, but no
4claim for credit or refund is allowed on or after January 1,
52008 for such taxes paid during the period beginning May 30,
62000 and ending on January 1, 2008.
7    (22) Computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients purchased by a
10lessor who leases the equipment, under a lease of one year or
11longer executed or in effect at the time the lessor would
12otherwise be subject to the tax imposed by this Act, to a
13hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of the
15Retailers' Occupation Tax Act. If the equipment is leased in a
16manner that does not qualify for this exemption or is used in
17any other non-exempt manner, the lessor shall be liable for the
18tax imposed under this Act or the Service Use Tax Act, as the
19case may be, based on the fair market value of the property at
20the time the non-qualifying use occurs. No lessor shall collect
21or attempt to collect an amount (however designated) that
22purports to reimburse that lessor for the tax imposed by this
23Act or the Service Use Tax Act, as the case may be, if the tax
24has not been paid by the lessor. If a lessor improperly
25collects any such amount from the lessee, the lessee shall have
26a legal right to claim a refund of that amount from the lessor.

 

 

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

 

 

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1disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (25) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in the
11performance of infrastructure repairs in this State, including
12but not limited to municipal roads and streets, access roads,
13bridges, sidewalks, waste disposal systems, water and sewer
14line extensions, water distribution and purification
15facilities, storm water drainage and retention facilities, and
16sewage treatment facilities, resulting from a State or
17federally declared disaster in Illinois or bordering Illinois
18when such repairs are initiated on facilities located in the
19declared disaster area within 6 months after the disaster.
20    (26) Beginning July 1, 1999, game or game birds purchased
21at a "game breeding and hunting preserve area" as that term is
22used in the Wildlife Code. This paragraph is exempt from the
23provisions of Section 3-90.
24    (27) A motor vehicle, as that term is defined in Section
251-146 of the Illinois Vehicle Code, that is donated to a
26corporation, limited liability company, society, association,

 

 

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

 

 

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1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-90.
4    (29) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and other
7items, and replacement parts for these machines. Beginning
8January 1, 2002 and through June 30, 2003, machines and parts
9for machines used in commercial, coin-operated amusement and
10vending business if a use or occupation tax is paid on the
11gross receipts derived from the use of the commercial,
12coin-operated amusement and vending machines. This paragraph
13is exempt from the provisions of Section 3-90.
14    (30) Beginning January 1, 2001 and through June 30, 2011,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages, soft
17drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances, and insulin, blood or urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act or the Specialized Mental
26Health Rehabilitation 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(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
996-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
107-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
118-16-11; revised 9-12-11.)
 
12    (Text of Section after amendment by P.A. 97-636)
13    Sec. 3-5. Exemptions. Use of the following tangible
14personal property is exempt from the tax imposed by this Act:
15    (1) Personal property purchased from a corporation,
16society, association, foundation, institution, or
17organization, other than a limited liability company, that is
18organized and operated as a not-for-profit service enterprise
19for the benefit of persons 65 years of age or older if the
20personal property was not purchased by the enterprise for the
21purpose of resale by the enterprise.
22    (2) Personal property purchased by a not-for-profit
23Illinois county fair association for use in conducting,
24operating, or promoting the county fair.
25    (3) Personal property purchased by a not-for-profit arts or

 

 

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1cultural organization that establishes, by proof required by
2the Department by rule, that it has received an exemption under
3Section 501(c)(3) of the Internal Revenue Code and that is
4organized and operated primarily for the presentation or
5support of arts or cultural programming, activities, or
6services. These organizations include, but are not limited to,
7music and dramatic arts organizations such as symphony
8orchestras and theatrical groups, arts and cultural service
9organizations, local arts councils, visual arts organizations,
10and media arts organizations. On and after the effective date
11of this amendatory Act of the 92nd General Assembly, however,
12an entity otherwise eligible for this exemption shall not make
13tax-free purchases unless it has an active identification
14number issued by the Department.
15    (4) Personal property purchased by a governmental body, by
16a corporation, society, association, foundation, or
17institution organized and operated exclusively for charitable,
18religious, or educational purposes, or by a not-for-profit
19corporation, society, association, foundation, institution, or
20organization that has no compensated officers or employees and
21that is organized and operated primarily for the recreation of
22persons 55 years of age or older. A limited liability company
23may qualify for the exemption under this paragraph only if the
24limited liability company is organized and operated
25exclusively for educational purposes. On and after July 1,
261987, however, no entity otherwise eligible for this exemption

 

 

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1shall make tax-free purchases unless it has an active exemption
2identification number issued by the Department.
3    (5) Until July 1, 2003, a passenger car that is a
4replacement vehicle to the extent that the purchase price of
5the car is subject to the Replacement Vehicle Tax.
6    (6) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order,
10certified by the purchaser to be used primarily for graphic
11arts production, and including machinery and equipment
12purchased for lease. Equipment includes chemicals or chemicals
13acting as catalysts but only if the chemicals or chemicals
14acting as catalysts effect a direct and immediate change upon a
15graphic arts product.
16    (7) Farm chemicals.
17    (8) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (9) Personal property purchased from a teacher-sponsored
22student organization affiliated with an elementary or
23secondary school located in Illinois.
24    (10) A motor vehicle of the first division, a motor vehicle
25of the second division that is a self-contained motor vehicle
26designed or permanently converted to provide living quarters

 

 

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1for recreational, camping, or travel use, with direct walk
2through to the living quarters from the driver's seat, or a
3motor vehicle of the second division that is of the van
4configuration designed for the transportation of not less than
57 nor more than 16 passengers, as defined in Section 1-146 of
6the Illinois Vehicle Code, that is used for automobile renting,
7as defined in the Automobile Renting Occupation and Use Tax
8Act.
9    (11) Farm machinery and equipment, both new and used,
10including that manufactured on special order, certified by the
11purchaser to be used primarily for production agriculture or
12State or federal agricultural programs, including individual
13replacement parts for the machinery and equipment, including
14machinery and equipment purchased for lease, and including
15implements of husbandry defined in Section 1-130 of the
16Illinois Vehicle Code, farm machinery and agricultural
17chemical and fertilizer spreaders, and nurse wagons required to
18be registered under Section 3-809 of the Illinois Vehicle Code,
19but excluding other motor vehicles required to be registered
20under the Illinois Vehicle Code. Horticultural polyhouses or
21hoop houses used for propagating, growing, or overwintering
22plants shall be considered farm machinery and equipment under
23this item (11). Agricultural chemical tender tanks and dry
24boxes shall include units sold separately from a motor vehicle
25required to be licensed and units sold mounted on a motor
26vehicle required to be licensed if the selling price of the

 

 

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

 

 

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

 

 

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

 

 

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1Registry of America, Appaloosa Horse Club, American Quarter
2Horse Association, United States Trotting Association, or
3Jockey Club, as appropriate, used for purposes of breeding or
4racing for prizes. This item (21) is exempt from the provisions
5of Section 3-90, and the exemption provided for under this item
6(21) applies for all periods beginning May 30, 1995, but no
7claim for credit or refund is allowed on or after January 1,
82008 for such taxes paid during the period beginning May 30,
92000 and ending on January 1, 2008.
10    (22) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients purchased by a
13lessor who leases the equipment, under a lease of one year or
14longer executed or in effect at the time the lessor would
15otherwise be subject to the tax imposed by this Act, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act. If the equipment is leased in a
19manner that does not qualify for this exemption or is used in
20any other non-exempt manner, the lessor shall be liable for the
21tax imposed under this Act or the Service Use Tax Act, as the
22case may be, based on the fair market value of the property at
23the time the non-qualifying use occurs. No lessor shall collect
24or attempt to collect an amount (however designated) that
25purports to reimburse that lessor for the tax imposed by this
26Act or the Service Use Tax Act, as the case may be, if the tax

 

 

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

 

 

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

 

 

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1    (27) A motor vehicle, as that term is defined in Section
21-146 of the Illinois Vehicle Code, that is donated to a
3corporation, limited liability company, society, association,
4foundation, or institution that is determined by the Department
5to be organized and operated exclusively for educational
6purposes. For purposes of this exemption, "a corporation,
7limited liability company, society, association, foundation,
8or institution organized and operated exclusively for
9educational purposes" means all tax-supported public schools,
10private schools that offer systematic instruction in useful
11branches of learning by methods common to public schools and
12that compare favorably in their scope and intensity with the
13course of study presented in tax-supported schools, and
14vocational or technical schools or institutes organized and
15operated exclusively to provide a course of study of not less
16than 6 weeks duration and designed to prepare individuals to
17follow a trade or to pursue a manual, technical, mechanical,
18industrial, business, or commercial occupation.
19    (28) Beginning January 1, 2000, personal property,
20including food, purchased through fundraising events for the
21benefit of a public or private elementary or secondary school,
22a group of those schools, or one or more school districts if
23the events are sponsored by an entity recognized by the school
24district that consists primarily of volunteers and includes
25parents and teachers of the school children. This paragraph
26does not apply to fundraising events (i) for the benefit of

 

 

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1private home instruction or (ii) for which the fundraising
2entity purchases the personal property sold at the events from
3another individual or entity that sold the property for the
4purpose of resale by the fundraising entity and that profits
5from the sale to the fundraising entity. This paragraph is
6exempt from the provisions of Section 3-90.
7    (29) Beginning January 1, 2000 and through December 31,
82001, new or used automatic vending machines that prepare and
9serve hot food and beverages, including coffee, soup, and other
10items, and replacement parts for these machines. Beginning
11January 1, 2002 and through June 30, 2003, machines and parts
12for machines used in commercial, coin-operated amusement and
13vending business if a use or occupation tax is paid on the
14gross receipts derived from the use of the commercial,
15coin-operated amusement and vending machines. This paragraph
16is exempt from the provisions of Section 3-90.
17    (30) Beginning January 1, 2001 and through June 30, 2016,
18food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages, soft
20drinks, and food that has been prepared for immediate
21consumption) and prescription and nonprescription medicines,
22drugs, medical appliances, and insulin, blood or urine testing
23materials, syringes, and needles used by diabetics, for human
24use, when purchased for use by a person receiving medical
25assistance under Article V of the Illinois Public Aid Code who
26resides in a licensed long-term care facility, as defined in

 

 

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

 

 

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

 

 

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1the use in this State of motor vehicles of the second division
2with a gross vehicle weight in excess of 8,000 pounds and that
3are subject to the commercial distribution fee imposed under
4Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
51, 2004 and through June 30, 2005, the use in this State of
6motor vehicles of the second division: (i) with a gross vehicle
7weight rating in excess of 8,000 pounds; (ii) that are subject
8to the commercial distribution fee imposed under Section
93-815.1 of the Illinois Vehicle Code; and (iii) that are
10primarily used for commercial purposes. Through June 30, 2005,
11this exemption applies to repair and replacement parts added
12after the initial purchase of such a motor vehicle if that
13motor vehicle is used in a manner that would qualify for the
14rolling stock exemption otherwise provided for in this Act. For
15purposes of this paragraph, the term "used for commercial
16purposes" means the transportation of persons or property in
17furtherance of any commercial or industrial enterprise,
18whether for-hire or not.
19    (34) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued under
24Title IV of the Environmental Protection Act. This paragraph is
25exempt from the provisions of Section 3-90.
26    (35) Beginning January 1, 2010, materials, parts,

 

 

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1equipment, components, and furnishings incorporated into or
2upon an aircraft as part of the modification, refurbishment,
3completion, replacement, repair, or maintenance of the
4aircraft. This exemption includes consumable supplies used in
5the modification, refurbishment, completion, replacement,
6repair, and maintenance of aircraft, but excludes any
7materials, parts, equipment, components, and consumable
8supplies used in the modification, replacement, repair, and
9maintenance of aircraft engines or power plants, whether such
10engines or power plants are installed or uninstalled upon any
11such aircraft. "Consumable supplies" include, but are not
12limited to, adhesive, tape, sandpaper, general purpose
13lubricants, cleaning solution, latex gloves, and protective
14films. This exemption applies only to those organizations that
15(i) hold an Air Agency Certificate and are empowered to operate
16an approved repair station by the Federal Aviation
17Administration, (ii) have a Class IV Rating, and (iii) conduct
18operations in accordance with Part 145 of the Federal Aviation
19Regulations. The exemption does not include aircraft operated
20by a commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations.
23    (36) Tangible personal property purchased by a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 3-90.
11(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1296-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
137-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
148-16-11; 97-636, eff. 6-1-12.)
 
15    Section 10. The Service Use Tax Act is amended by changing
16Section 3-5 as follows:
 
17    (35 ILCS 110/3-5)
18    (Text of Section before amendment by P.A. 97-636)
19    Sec. 3-5. Exemptions. Use of the following tangible
20personal property is exempt from the tax imposed by this Act:
21    (1) Personal property purchased from a corporation,
22society, association, foundation, institution, or
23organization, other than a limited liability company, that is
24organized and operated as a not-for-profit service enterprise

 

 

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1for the benefit of persons 65 years of age or older if the
2personal property was not purchased by the enterprise for the
3purpose of resale by the enterprise.
4    (2) Personal property purchased by a non-profit Illinois
5county fair association for use in conducting, operating, or
6promoting the county fair.
7    (3) Personal property purchased by a not-for-profit arts or
8cultural organization that establishes, by proof required by
9the Department by rule, that it has received an exemption under
10Section 501(c)(3) of the Internal Revenue Code and that is
11organized and operated primarily for the presentation or
12support of arts or cultural programming, activities, or
13services. These organizations include, but are not limited to,
14music and dramatic arts organizations such as symphony
15orchestras and theatrical groups, arts and cultural service
16organizations, local arts councils, visual arts organizations,
17and media arts organizations. On and after the effective date
18of this amendatory Act of the 92nd General Assembly, however,
19an entity otherwise eligible for this exemption shall not make
20tax-free purchases unless it has an active identification
21number issued by the Department.
22    (4) Legal tender, currency, medallions, or gold or silver
23coinage issued by the State of Illinois, the government of the
24United States of America, or the government of any foreign
25country, and bullion.
26    (5) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new and
3used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product.
9    (6) Personal property purchased from a teacher-sponsored
10student organization affiliated with an elementary or
11secondary school located in Illinois.
12    (7) 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 (7). Agricultural chemical tender tanks and dry boxes

 

 

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1shall 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 (7) is exempt from the
20provisions of Section 3-75.
21    (8) 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    (9) Proceeds of mandatory service charges separately
3stated on customers' bills for the purchase and consumption of
4food and beverages acquired as an incident to the purchase of a
5service from a serviceman, to the extent that the proceeds of
6the service charge are in fact turned over as tips or as a
7substitute for tips to the employees who participate directly
8in preparing, serving, hosting or cleaning up the food or
9beverage function with respect to which the service charge is
10imposed.
11    (10) Until July 1, 2003, oil field exploration, drilling,
12and production equipment, including (i) rigs and parts of rigs,
13rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
14tubular goods, including casing and drill strings, (iii) pumps
15and pump-jack units, (iv) storage tanks and flow lines, (v) any
16individual replacement part for oil field exploration,
17drilling, and production equipment, and (vi) machinery and
18equipment purchased for lease; but excluding motor vehicles
19required to be registered under the Illinois Vehicle Code.
20    (11) Proceeds from the sale of photoprocessing machinery
21and equipment, including repair and replacement parts, both new
22and used, including that manufactured on special order,
23certified by the purchaser to be used primarily for
24photoprocessing, and including photoprocessing machinery and
25equipment purchased for lease.
26    (12) Until July 1, 2003, coal exploration, mining,

 

 

SB3479 Engrossed- 38 -LRB097 18737 HLH 63972 b

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

 

 

SB3479 Engrossed- 39 -LRB097 18737 HLH 63972 b

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

 

 

SB3479 Engrossed- 40 -LRB097 18737 HLH 63972 b

1fair market value of the property at the time the
2non-qualifying use occurs. No lessor shall collect or attempt
3to collect an amount (however designated) that purports to
4reimburse 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.
11    (17) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is donated for
14disaster relief to be used in a State or federally declared
15disaster area in Illinois or bordering Illinois by a
16manufacturer or retailer that is registered in this State to a
17corporation, society, association, foundation, or institution
18that has been issued a sales tax exemption identification
19number by the Department that assists victims of the disaster
20who reside within the declared disaster area.
21    (18) 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 used in the
24performance of infrastructure repairs in this State, including
25but not limited to municipal roads and streets, access roads,
26bridges, sidewalks, waste disposal systems, water and sewer

 

 

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1line extensions, water distribution and purification
2facilities, storm water drainage and retention facilities, and
3sewage treatment facilities, resulting from a State or
4federally declared disaster in Illinois or bordering Illinois
5when such repairs are initiated on facilities located in the
6declared disaster area within 6 months after the disaster.
7    (19) Beginning July 1, 1999, game or game birds purchased
8at a "game breeding and hunting preserve area" as that term is
9used in the Wildlife Code. This paragraph is exempt from the
10provisions of Section 3-75.
11    (20) A motor vehicle, as that term is defined in Section
121-146 of the Illinois Vehicle Code, that is donated to a
13corporation, limited liability company, society, association,
14foundation, or institution that is determined by the Department
15to be organized and operated exclusively for educational
16purposes. For purposes of this exemption, "a corporation,
17limited liability company, society, association, foundation,
18or institution organized and operated exclusively for
19educational purposes" means all tax-supported public schools,
20private schools that offer systematic instruction in useful
21branches of learning by methods common to public schools and
22that compare favorably in their scope and intensity with the
23course of study presented in tax-supported schools, and
24vocational or technical schools or institutes organized and
25operated exclusively to provide a course of study of not less
26than 6 weeks duration and designed to prepare individuals to

 

 

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1follow a trade or to pursue a manual, technical, mechanical,
2industrial, business, or commercial occupation.
3    (21) Beginning January 1, 2000, personal property,
4including food, purchased through fundraising events for the
5benefit of a public or private elementary or secondary school,
6a group of those schools, or one or more school districts if
7the events are sponsored by an entity recognized by the school
8district that consists primarily of volunteers and includes
9parents and teachers of the school children. This paragraph
10does not apply to fundraising events (i) for the benefit of
11private home instruction or (ii) for which the fundraising
12entity purchases the personal property sold at the events from
13another individual or entity that sold the property for the
14purpose of resale by the fundraising entity and that profits
15from the sale to the fundraising entity. This paragraph is
16exempt from the provisions of Section 3-75.
17    (22) Beginning January 1, 2000 and through December 31,
182001, new or used automatic vending machines that prepare and
19serve hot food and beverages, including coffee, soup, and other
20items, and replacement parts for these machines. Beginning
21January 1, 2002 and through June 30, 2003, machines and parts
22for machines used in commercial, coin-operated amusement and
23vending business if a use or occupation tax is paid on the
24gross receipts derived from the use of the commercial,
25coin-operated amusement and vending machines. This paragraph
26is exempt from the provisions of Section 3-75.

 

 

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

 

 

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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    (25) Beginning on the effective date of this amendatory Act
13of the 92nd General Assembly, personal property purchased by a
14lessor who leases the property, under a lease of one year or
15longer executed or in effect at the time the lessor would
16otherwise be subject to the tax imposed by this Act, to a
17governmental body that has been issued an active tax exemption
18identification number by the Department under Section 1g of the
19Retailers' Occupation Tax Act. If the property is leased in a
20manner that does not qualify for this exemption or is used in
21any other nonexempt manner, the lessor shall be liable for the
22tax imposed under this Act or the Use Tax Act, as the case may
23be, based on the fair market value of the property at the time
24the nonqualifying use occurs. No lessor shall collect or
25attempt to collect an amount (however designated) that purports
26to reimburse that lessor for the tax imposed by this Act or the

 

 

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1Use Tax Act, as the case may be, if the tax has not been paid by
2the lessor. If a lessor improperly collects any such amount
3from the lessee, the lessee shall have a legal right to claim a
4refund of that amount from the lessor. If, however, that amount
5is not refunded to the lessee for any reason, the lessor is
6liable to pay that amount to the Department. This paragraph is
7exempt from the provisions of Section 3-75.
8    (26) Beginning January 1, 2008, tangible personal property
9used in the construction or maintenance of a community water
10supply, as defined under Section 3.145 of the Environmental
11Protection Act, that is operated by a not-for-profit
12corporation that holds a valid water supply permit issued under
13Title IV of the Environmental Protection Act. This paragraph is
14exempt from the provisions of Section 3-75.
15    (27) Beginning January 1, 2010, materials, parts,
16equipment, components, and furnishings incorporated into or
17upon an aircraft as part of the modification, refurbishment,
18completion, replacement, repair, or maintenance of the
19aircraft. This exemption includes consumable supplies used in
20the modification, refurbishment, completion, replacement,
21repair, and maintenance of aircraft, but excludes any
22materials, parts, equipment, components, and consumable
23supplies used in the modification, replacement, repair, and
24maintenance of aircraft engines or power plants, whether such
25engines or power plants are installed or uninstalled upon any
26such aircraft. "Consumable supplies" include, but are not

 

 

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1limited to, adhesive, tape, sandpaper, general purpose
2lubricants, cleaning solution, latex gloves, and protective
3films. This exemption applies only to those organizations that
4(i) hold an Air Agency Certificate and are empowered to operate
5an approved repair station by the Federal Aviation
6Administration, (ii) have a Class IV Rating, and (iii) conduct
7operations in accordance with Part 145 of the Federal Aviation
8Regulations. The exemption does not include aircraft operated
9by a commercial air carrier providing scheduled passenger air
10service pursuant to authority issued under Part 121 or Part 129
11of the Federal Aviation Regulations.
12    (28) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 3-75.
26(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;

 

 

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196-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
27-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
38-16-11; revised 9-12-11.)
 
4    (Text of Section after amendment by P.A. 97-636)
5    Sec. 3-5. Exemptions. Use of the following tangible
6personal property is exempt from the tax imposed by this Act:
7    (1) Personal property purchased from a corporation,
8society, association, foundation, institution, or
9organization, other than a limited liability company, that is
10organized and operated as a not-for-profit service enterprise
11for the benefit of persons 65 years of age or older if the
12personal property was not purchased by the enterprise for the
13purpose of resale by the enterprise.
14    (2) Personal property purchased by a non-profit Illinois
15county fair association for use in conducting, operating, or
16promoting the county fair.
17    (3) Personal property purchased by a not-for-profit arts or
18cultural organization that establishes, by proof required by
19the Department by rule, that it has received an exemption under
20Section 501(c)(3) of the Internal Revenue Code and that is
21organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,
24music and dramatic arts organizations such as symphony
25orchestras and theatrical groups, arts and cultural service

 

 

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1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after the effective date
3of this amendatory Act of the 92nd General Assembly, however,
4an entity otherwise eligible for this exemption shall not make
5tax-free purchases unless it has an active identification
6number issued by the Department.
7    (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (5) Until July 1, 2003 and beginning again on 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    (6) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23    (7) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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

 

 

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (7) is exempt from the
5provisions of Section 3-75.
6    (8) Fuel and petroleum products sold to or used by an air
7common carrier, certified by the carrier to be used for
8consumption, shipment, or storage in the conduct of its
9business as an air common carrier, for a flight destined for or
10returning from a location or locations outside the United
11States without regard to previous or subsequent domestic
12stopovers.
13    (9) Proceeds of mandatory service charges separately
14stated on customers' bills for the purchase and consumption of
15food and beverages acquired as an incident to the purchase of a
16service from a serviceman, to the extent that the proceeds of
17the service charge are in fact turned over as tips or as a
18substitute for tips to the employees who participate directly
19in preparing, serving, hosting or cleaning up the food or
20beverage function with respect to which the service charge is
21imposed.
22    (10) Until July 1, 2003, oil field exploration, drilling,
23and production equipment, including (i) rigs and parts of rigs,
24rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
25tubular goods, including casing and drill strings, (iii) pumps
26and pump-jack units, (iv) storage tanks and flow lines, (v) any

 

 

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1individual replacement part for oil field exploration,
2drilling, and production equipment, and (vi) machinery and
3equipment purchased for lease; but excluding motor vehicles
4required to be registered under the Illinois Vehicle Code.
5    (11) Proceeds from the sale of photoprocessing machinery
6and equipment, including repair and replacement parts, both new
7and used, including that manufactured on special order,
8certified by the purchaser to be used primarily for
9photoprocessing, and including photoprocessing machinery and
10equipment purchased for lease.
11    (12) Until July 1, 2003, coal exploration, mining,
12offhighway hauling, processing, maintenance, and reclamation
13equipment, including replacement parts and equipment, and
14including equipment purchased for lease, but excluding motor
15vehicles required to be registered under the Illinois Vehicle
16Code.
17    (13) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (14) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (14) is exempt from the provisions
25of Section 3-75, and the exemption provided for under this item
26(14) applies for all periods beginning May 30, 1995, but no

 

 

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1claim for credit or refund is allowed on or after the effective
2date of this amendatory Act of the 95th General Assembly for
3such taxes paid during the period beginning May 30, 2000 and
4ending on the effective date of this amendatory Act of the 95th
5General Assembly.
6    (15) 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 Use Tax Act, as the case may
18be, based on the fair market value of the property at the time
19the non-qualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that purports
21to reimburse that lessor for the tax imposed by this Act or the
22Use Tax Act, as the case may be, if the tax has not been paid by
23the lessor. If a lessor improperly collects any such amount
24from the lessee, the lessee shall have a legal right to claim a
25refund of that amount from the lessor. If, however, that amount
26is not refunded to the lessee for any reason, the lessor is

 

 

SB3479 Engrossed- 53 -LRB097 18737 HLH 63972 b

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

 

 

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1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (18) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is used in the
9performance of infrastructure repairs in this State, including
10but not limited to municipal roads and streets, access roads,
11bridges, sidewalks, waste disposal systems, water and sewer
12line extensions, water distribution and purification
13facilities, storm water drainage and retention facilities, and
14sewage treatment facilities, resulting from a State or
15federally declared disaster in Illinois or bordering Illinois
16when such repairs are initiated on facilities located in the
17declared disaster area within 6 months after the disaster.
18    (19) Beginning July 1, 1999, game or game birds purchased
19at a "game breeding and hunting preserve area" as that term is
20used in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-75.
22    (20) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the Department
26to be organized and operated exclusively for educational

 

 

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

 

 

SB3479 Engrossed- 56 -LRB097 18737 HLH 63972 b

1exempt from the provisions of Section 3-75.
2    (22) Beginning January 1, 2000 and through December 31,
32001, new or used automatic vending machines that prepare and
4serve hot food and beverages, including coffee, soup, and other
5items, and replacement parts for these machines. Beginning
6January 1, 2002 and through June 30, 2003, machines and parts
7for machines used in commercial, coin-operated amusement and
8vending business if a use or occupation tax is paid on the
9gross receipts derived from the use of the commercial,
10coin-operated amusement and vending machines. This paragraph
11is exempt from the provisions of Section 3-75.
12    (23) Beginning August 23, 2001 and through June 30, 2016,
13food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages, soft
15drinks, and food that has been prepared for immediate
16consumption) and prescription and nonprescription medicines,
17drugs, medical appliances, and insulin, blood or urine testing
18materials, syringes, and needles used by diabetics, for human
19use, when purchased for use by a person receiving medical
20assistance under Article V of the Illinois Public Aid Code who
21resides in a licensed long-term care facility, as defined in
22the Nursing Home Care Act, or in a licensed facility as defined
23in the ID/DD Community Care Act or the Specialized Mental
24Health Rehabilitation Act.
25    (24) Beginning on the effective date of this amendatory Act
26of the 92nd General Assembly, computers and communications

 

 

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

 

 

SB3479 Engrossed- 58 -LRB097 18737 HLH 63972 b

1otherwise be subject to the tax imposed by this Act, to a
2governmental body that has been issued an active tax exemption
3identification number by the Department under Section 1g of the
4Retailers' Occupation Tax Act. If the property is leased in a
5manner that does not qualify for this exemption or is used in
6any other nonexempt manner, the lessor shall be liable for the
7tax imposed under this Act or the Use Tax Act, as the case may
8be, based on the fair market value of the property at the time
9the nonqualifying use occurs. No lessor shall collect or
10attempt to collect an amount (however designated) that purports
11to reimburse that lessor for the tax imposed by this Act or the
12Use Tax Act, as the case may be, if the tax has not been paid by
13the lessor. If a lessor improperly collects any such amount
14from the lessee, the lessee shall have a legal right to claim a
15refund of that amount from the lessor. If, however, that amount
16is not refunded to the lessee for any reason, the lessor is
17liable to pay that amount to the Department. This paragraph is
18exempt from the provisions of Section 3-75.
19    (26) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued under
24Title IV of the Environmental Protection Act. This paragraph is
25exempt from the provisions of Section 3-75.
26    (27) Beginning January 1, 2010, materials, parts,

 

 

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1equipment, components, and furnishings incorporated into or
2upon an aircraft as part of the modification, refurbishment,
3completion, replacement, repair, or maintenance of the
4aircraft. This exemption includes consumable supplies used in
5the modification, refurbishment, completion, replacement,
6repair, and maintenance of aircraft, but excludes any
7materials, parts, equipment, components, and consumable
8supplies used in the modification, replacement, repair, and
9maintenance of aircraft engines or power plants, whether such
10engines or power plants are installed or uninstalled upon any
11such aircraft. "Consumable supplies" include, but are not
12limited to, adhesive, tape, sandpaper, general purpose
13lubricants, cleaning solution, latex gloves, and protective
14films. This exemption applies only to those organizations that
15(i) hold an Air Agency Certificate and are empowered to operate
16an approved repair station by the Federal Aviation
17Administration, (ii) have a Class IV Rating, and (iii) conduct
18operations in accordance with Part 145 of the Federal Aviation
19Regulations. The exemption does not include aircraft operated
20by a commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations.
23    (28) Tangible personal property purchased by a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 3-75.
11(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1296-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
137-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
148-16-11; 97-636, eff. 6-1-12.)
 
15    Section 15. The Service Occupation Tax Act is amended by
16changing Section 3-5 as follows:
 
17    (35 ILCS 115/3-5)
18    (Text of Section before amendment by P.A. 97-636)
19    Sec. 3-5. Exemptions. The following tangible personal
20property is exempt from the tax imposed by this Act:
21    (1) Personal property sold by a corporation, society,
22association, foundation, institution, or organization, other
23than a limited liability company, that is organized and
24operated as a not-for-profit service enterprise for the benefit

 

 

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1of persons 65 years of age or older if the personal property
2was not purchased by the enterprise for the purpose of resale
3by the enterprise.
4    (2) Personal property purchased by a not-for-profit
5Illinois county fair association for use in conducting,
6operating, or promoting the county fair.
7    (3) Personal property purchased by any not-for-profit arts
8or cultural organization that establishes, by proof required by
9the Department by rule, that it has received an exemption under
10Section 501(c)(3) of the Internal Revenue Code and that is
11organized and operated primarily for the presentation or
12support of arts or cultural programming, activities, or
13services. These organizations include, but are not limited to,
14music and dramatic arts organizations such as symphony
15orchestras and theatrical groups, arts and cultural service
16organizations, local arts councils, visual arts organizations,
17and media arts organizations. On and after the effective date
18of this amendatory Act of the 92nd General Assembly, however,
19an entity otherwise eligible for this exemption shall not make
20tax-free purchases unless it has an active identification
21number issued by the Department.
22    (4) Legal tender, currency, medallions, or gold or silver
23coinage issued by the State of Illinois, the government of the
24United States of America, or the government of any foreign
25country, and bullion.
26    (5) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new and
3used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product.
9    (6) Personal property sold by a teacher-sponsored student
10organization affiliated with an elementary or secondary school
11located in Illinois.
12    (7) 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 (7). Agricultural chemical tender tanks and dry boxes

 

 

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1shall 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 (7) is exempt from the
20provisions of Section 3-55.
21    (8) 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    (9) Proceeds of mandatory service charges separately
3stated on customers' bills for the purchase and consumption of
4food and beverages, to the extent that the proceeds of the
5service charge are in fact turned over as tips or as a
6substitute for tips to the employees who participate directly
7in preparing, serving, hosting or cleaning up the food or
8beverage function with respect to which the service charge is
9imposed.
10    (10) 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    (11) 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    (12) 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    (13) Beginning January 1, 1992 and through June 30, 2011,
5food for human consumption that is to be consumed off the
6premises where it is sold (other than alcoholic beverages, soft
7drinks and food that has been prepared for immediate
8consumption) and prescription and non-prescription medicines,
9drugs, medical appliances, and insulin, blood or urine testing
10materials, syringes, and needles used by diabetics, for human
11use, when purchased for use by a person receiving medical
12assistance under Article V of the Illinois Public Aid Code who
13resides in a licensed long-term care facility, as defined in
14the Nursing Home Care Act, or in a licensed facility as defined
15in the ID/DD Community Care Act or the Specialized Mental
16Health Rehabilitation Act.
17    (14) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (15) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (15) is exempt from the provisions
25of Section 3-55, and the exemption provided for under this item
26(15) applies for all periods beginning May 30, 1995, but no

 

 

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1claim for credit or refund is allowed on or after January 1,
22008 (the effective date of Public Act 95-88) for such taxes
3paid during the period beginning May 30, 2000 and ending on
4January 1, 2008 (the effective date of Public Act 95-88).
5    (16) Computers and communications equipment utilized for
6any hospital purpose and equipment used in the diagnosis,
7analysis, or treatment of hospital patients sold to a lessor
8who leases the equipment, under a lease of one year or longer
9executed or in effect at the time of the purchase, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of the
12Retailers' Occupation Tax Act.
13    (17) Personal property sold to a lessor who leases the
14property, under a lease of one year or longer executed or in
15effect at the time of the purchase, to a governmental body that
16has been issued an active tax exemption identification number
17by the Department under Section 1g of the Retailers' Occupation
18Tax Act.
19    (18) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated for
22disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (19) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in the
6performance of infrastructure repairs in this State, including
7but not limited to municipal roads and streets, access roads,
8bridges, sidewalks, waste disposal systems, water and sewer
9line extensions, water distribution and purification
10facilities, storm water drainage and retention facilities, and
11sewage treatment facilities, resulting from a State or
12federally declared disaster in Illinois or bordering Illinois
13when such repairs are initiated on facilities located in the
14declared disaster area within 6 months after the disaster.
15    (20) Beginning July 1, 1999, game or game birds sold at a
16"game breeding and hunting preserve area" as that term is used
17in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-55.
19    (21) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the Department
23to be organized and operated exclusively for educational
24purposes. For purposes of this exemption, "a corporation,
25limited liability company, society, association, foundation,
26or institution organized and operated exclusively for

 

 

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1educational purposes" means all tax-supported public schools,
2private schools that offer systematic instruction in useful
3branches of learning by methods common to public schools and
4that compare favorably in their scope and intensity with the
5course of study presented in tax-supported schools, and
6vocational or technical schools or institutes organized and
7operated exclusively to provide a course of study of not less
8than 6 weeks duration and designed to prepare individuals to
9follow a trade or to pursue a manual, technical, mechanical,
10industrial, business, or commercial occupation.
11    (22) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-55.
25    (23) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

 

 

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1serve hot food and beverages, including coffee, soup, and other
2items, and replacement parts for these machines. Beginning
3January 1, 2002 and through June 30, 2003, machines and parts
4for machines used in commercial, coin-operated amusement and
5vending business if a use or occupation tax is paid on the
6gross receipts derived from the use of the commercial,
7coin-operated amusement and vending machines. This paragraph
8is exempt from the provisions of Section 3-55.
9    (24) Beginning on the effective date of this amendatory Act
10of the 92nd General Assembly, computers and communications
11equipment utilized for any hospital purpose and equipment used
12in the diagnosis, analysis, or treatment of hospital patients
13sold to a lessor who leases the equipment, under a lease of one
14year or longer executed or in effect at the time of the
15purchase, to a hospital that has been issued an active tax
16exemption identification number by the Department under
17Section 1g of the Retailers' Occupation Tax Act. This paragraph
18is exempt from the provisions of Section 3-55.
19    (25) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, personal property sold to a
21lessor who leases the property, under a lease of one year or
22longer executed or in effect at the time of the purchase, to a
23governmental body that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. This paragraph is exempt from
26the provisions of Section 3-55.

 

 

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1    (26) Beginning on January 1, 2002 and through June 30,
22016, tangible personal property purchased from an Illinois
3retailer by a taxpayer engaged in centralized purchasing
4activities in Illinois who will, upon receipt of the property
5in Illinois, temporarily store the property in Illinois (i) for
6the purpose of subsequently transporting it outside this State
7for use or consumption thereafter solely outside this State or
8(ii) for the purpose of being processed, fabricated, or
9manufactured into, attached to, or incorporated into other
10tangible personal property to be transported outside this State
11and thereafter used or consumed solely outside this State. The
12Director of Revenue shall, pursuant to rules adopted in
13accordance with the Illinois Administrative Procedure Act,
14issue a permit to any taxpayer in good standing with the
15Department who is eligible for the exemption under this
16paragraph (26). The permit issued under this paragraph (26)
17shall authorize the holder, to the extent and in the manner
18specified in the rules adopted under this Act, to purchase
19tangible personal property from a retailer exempt from the
20taxes imposed by this Act. Taxpayers shall maintain all
21necessary books and records to substantiate the use and
22consumption of all such tangible personal property outside of
23the State of Illinois.
24    (27) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued under
3Title IV of the Environmental Protection Act. This paragraph is
4exempt from the provisions of Section 3-55.
5    (28) Tangible personal property sold to a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt instruments
14issued by the public-facilities corporation in connection with
15the development of the municipal convention hall. This
16exemption includes existing public-facilities corporations as
17provided in Section 11-65-25 of the Illinois Municipal Code.
18This paragraph is exempt from the provisions of Section 3-55.
19    (29) 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

 

 

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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(Source: P.A. 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; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff.
191-1-12; 97-431, eff. 8-16-11; revised 9-12-11.)
 
20    (Text of Section after amendment by P.A. 97-636)
21    Sec. 3-5. Exemptions. The following tangible personal
22property is exempt from the tax imposed by this Act:
23    (1) Personal property sold by a corporation, society,
24association, foundation, institution, or organization, other
25than a limited liability company, that is organized and

 

 

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

 

 

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1    (5) Until July 1, 2003 and beginning again on September 1,
22004 through August 30, 2014, graphic arts machinery and
3equipment, including repair and replacement parts, both new and
4used, and including that manufactured on special order or
5purchased for lease, certified by the purchaser to be used
6primarily for graphic arts production. Equipment includes
7chemicals or chemicals acting as catalysts but only if the
8chemicals or chemicals acting as catalysts effect a direct and
9immediate change upon a graphic arts product.
10    (6) Personal property sold by a teacher-sponsored student
11organization affiliated with an elementary or secondary school
12located in Illinois.
13    (7) Farm machinery and equipment, both new and used,
14including that manufactured on special order, certified by the
15purchaser to be used primarily for production agriculture or
16State or federal agricultural programs, including individual
17replacement parts for the machinery and equipment, including
18machinery and equipment purchased for lease, and including
19implements of husbandry defined in Section 1-130 of the
20Illinois Vehicle Code, farm machinery and agricultural
21chemical and fertilizer spreaders, and nurse wagons required to
22be registered under Section 3-809 of the Illinois Vehicle Code,
23but excluding other motor vehicles required to be registered
24under the Illinois Vehicle Code. Horticultural polyhouses or
25hoop houses used for propagating, growing, or overwintering
26plants shall be considered farm machinery and equipment under

 

 

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1this item (7). Agricultural chemical tender tanks and dry boxes
2shall include units sold separately from a motor vehicle
3required to be licensed and units sold mounted on a motor
4vehicle required to be licensed if the selling price of the
5tender is separately stated.
6    Farm machinery and equipment shall include precision
7farming equipment that is installed or purchased to be
8installed on farm machinery and equipment including, but not
9limited to, tractors, harvesters, sprayers, planters, seeders,
10or spreaders. Precision farming equipment includes, but is not
11limited to, soil testing sensors, computers, monitors,
12software, global positioning and mapping systems, and other
13such equipment.
14    Farm machinery and equipment also includes computers,
15sensors, software, and related equipment used primarily in the
16computer-assisted operation of production agriculture
17facilities, equipment, and activities such as, but not limited
18to, the collection, monitoring, and correlation of animal and
19crop data for the purpose of formulating animal diets and
20agricultural chemicals. This item (7) is exempt from the
21provisions of Section 3-55.
22    (8) Fuel and petroleum products sold to or used by an air
23common carrier, certified by the carrier to be used for
24consumption, shipment, or storage in the conduct of its
25business as an air common carrier, for a flight destined for or
26returning from a location or locations outside the United

 

 

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

 

 

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1equipment, including replacement parts and equipment, and
2including equipment purchased for lease, but excluding motor
3vehicles required to be registered under the Illinois Vehicle
4Code.
5    (13) Beginning January 1, 1992 and through June 30, 2016,
6food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages, soft
8drinks and food that has been prepared for immediate
9consumption) and prescription and non-prescription medicines,
10drugs, medical appliances, and insulin, blood or urine testing
11materials, syringes, and needles used by diabetics, for human
12use, when purchased for use by a person receiving medical
13assistance under Article V of the Illinois Public Aid Code who
14resides in a licensed long-term care facility, as defined in
15the Nursing Home Care Act, or in a licensed facility as defined
16in the ID/DD Community Care Act or the Specialized Mental
17Health Rehabilitation Act.
18    (14) Semen used for artificial insemination of livestock
19for direct agricultural production.
20    (15) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (15) is exempt from the provisions
26of Section 3-55, and the exemption provided for under this item

 

 

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1(15) applies for all periods beginning May 30, 1995, but no
2claim for credit or refund is allowed on or after January 1,
32008 (the effective date of Public Act 95-88) for such taxes
4paid during the period beginning May 30, 2000 and ending on
5January 1, 2008 (the effective date of Public Act 95-88).
6    (16) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients sold to a lessor
9who leases the equipment, under a lease of one year or longer
10executed or in effect at the time of the purchase, to a
11hospital that has been issued an active tax exemption
12identification number by the Department under Section 1g of the
13Retailers' Occupation Tax Act.
14    (17) Personal property sold to a lessor who leases the
15property, under a lease of one year or longer executed or in
16effect at the time of the purchase, to a governmental body that
17has been issued an active tax exemption identification number
18by the Department under Section 1g of the Retailers' Occupation
19Tax Act.
20    (18) 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 donated for
23disaster relief to be used in a State or federally declared
24disaster area in Illinois or bordering Illinois by a
25manufacturer or retailer that is registered in this State to a
26corporation, society, association, foundation, or institution

 

 

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1that has been issued a sales tax exemption identification
2number by the Department that assists victims of the disaster
3who reside within the declared disaster area.
4    (19) 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 used in the
7performance of infrastructure repairs in this State, including
8but not limited to municipal roads and streets, access roads,
9bridges, sidewalks, waste disposal systems, water and sewer
10line extensions, water distribution and purification
11facilities, storm water drainage and retention facilities, and
12sewage treatment facilities, resulting from a State or
13federally declared disaster in Illinois or bordering Illinois
14when such repairs are initiated on facilities located in the
15declared disaster area within 6 months after the disaster.
16    (20) Beginning July 1, 1999, game or game birds sold at a
17"game breeding and hunting preserve area" as that term is used
18in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-55.
20    (21) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the Department
24to be organized and operated exclusively for educational
25purposes. For purposes of this exemption, "a corporation,
26limited liability company, society, association, foundation,

 

 

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1or institution organized and operated exclusively for
2educational purposes" means all tax-supported public schools,
3private schools that offer systematic instruction in useful
4branches of learning by methods common to public schools and
5that compare favorably in their scope and intensity with the
6course of study presented in tax-supported schools, and
7vocational or technical schools or institutes organized and
8operated exclusively to provide a course of study of not less
9than 6 weeks duration and designed to prepare individuals to
10follow a trade or to pursue a manual, technical, mechanical,
11industrial, business, or commercial occupation.
12    (22) Beginning January 1, 2000, personal property,
13including food, purchased through fundraising events for the
14benefit of a public or private elementary or secondary school,
15a group of those schools, or one or more school districts if
16the events are sponsored by an entity recognized by the school
17district that consists primarily of volunteers and includes
18parents and teachers of the school children. This paragraph
19does not apply to fundraising events (i) for the benefit of
20private home instruction or (ii) for which the fundraising
21entity purchases the personal property sold at the events from
22another individual or entity that sold the property for the
23purpose of resale by the fundraising entity and that profits
24from the sale to the fundraising entity. This paragraph is
25exempt from the provisions of Section 3-55.
26    (23) Beginning January 1, 2000 and through December 31,

 

 

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12001, new or used automatic vending machines that prepare and
2serve hot food and beverages, including coffee, soup, and other
3items, and replacement parts for these machines. Beginning
4January 1, 2002 and through June 30, 2003, machines and parts
5for machines used in commercial, coin-operated amusement and
6vending business if a use or occupation tax is paid on the
7gross receipts derived from the use of the commercial,
8coin-operated amusement and vending machines. This paragraph
9is exempt from the provisions of Section 3-55.
10    (24) Beginning on the effective date of this amendatory Act
11of the 92nd General Assembly, computers and communications
12equipment utilized for any hospital purpose and equipment used
13in the diagnosis, analysis, or treatment of hospital patients
14sold to a lessor who leases the equipment, under a lease of one
15year or longer executed or in effect at the time of the
16purchase, to a hospital that has been issued an active tax
17exemption identification number by the Department under
18Section 1g of the Retailers' Occupation Tax Act. This paragraph
19is exempt from the provisions of Section 3-55.
20    (25) Beginning on the effective date of this amendatory Act
21of the 92nd General Assembly, personal property sold to a
22lessor who leases the property, under a lease of one year or
23longer executed or in effect at the time of the purchase, to a
24governmental body that has been issued an active tax exemption
25identification number by the Department under Section 1g of the
26Retailers' Occupation Tax Act. This paragraph is exempt from

 

 

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1the provisions of Section 3-55.
2    (26) Beginning on January 1, 2002 and through June 30,
32016, tangible personal property purchased from an Illinois
4retailer by a taxpayer engaged in centralized purchasing
5activities in Illinois who will, upon receipt of the property
6in Illinois, temporarily store the property in Illinois (i) for
7the purpose of subsequently transporting it outside this State
8for use or consumption thereafter solely outside this State or
9(ii) for the purpose of being processed, fabricated, or
10manufactured into, attached to, or incorporated into other
11tangible personal property to be transported outside this State
12and thereafter used or consumed solely outside this State. The
13Director of Revenue shall, pursuant to rules adopted in
14accordance with the Illinois Administrative Procedure Act,
15issue a permit to any taxpayer in good standing with the
16Department who is eligible for the exemption under this
17paragraph (26). The permit issued under this paragraph (26)
18shall authorize the holder, to the extent and in the manner
19specified in the rules adopted under this Act, to purchase
20tangible personal property from a retailer exempt from the
21taxes imposed by this Act. Taxpayers shall maintain all
22necessary books and records to substantiate the use and
23consumption of all such tangible personal property outside of
24the State of Illinois.
25    (27) Beginning January 1, 2008, tangible personal property
26used in the construction or maintenance of a community water

 

 

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1supply, as defined under Section 3.145 of the Environmental
2Protection Act, that is operated by a not-for-profit
3corporation that holds a valid water supply permit issued under
4Title IV of the Environmental Protection Act. This paragraph is
5exempt from the provisions of Section 3-55.
6    (28) Tangible personal property sold to a
7public-facilities corporation, as described in Section
811-65-10 of the Illinois Municipal Code, for purposes of
9constructing or furnishing a municipal convention hall, but
10only if the legal title to the municipal convention hall is
11transferred to the municipality without any further
12consideration by or on behalf of the municipality at the time
13of the completion of the municipal convention hall or upon the
14retirement or redemption of any bonds or other debt instruments
15issued by the public-facilities corporation in connection with
16the development of the municipal convention hall. This
17exemption includes existing public-facilities corporations as
18provided in Section 11-65-25 of the Illinois Municipal Code.
19This paragraph is exempt from the provisions of Section 3-55.
20    (29) Beginning January 1, 2010, materials, parts,
21equipment, components, and furnishings incorporated into or
22upon an aircraft as part of the modification, refurbishment,
23completion, replacement, repair, or maintenance of the
24aircraft. This exemption includes consumable supplies used in
25the modification, refurbishment, completion, replacement,
26repair, and maintenance of aircraft, but excludes any

 

 

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1materials, parts, equipment, components, and consumable
2supplies used in the modification, replacement, repair, and
3maintenance of aircraft engines or power plants, whether such
4engines or power plants are installed or uninstalled upon any
5such aircraft. "Consumable supplies" include, but are not
6limited to, adhesive, tape, sandpaper, general purpose
7lubricants, cleaning solution, latex gloves, and protective
8films. This exemption applies only to those organizations that
9(i) hold an Air Agency Certificate and are empowered to operate
10an approved repair station by the Federal Aviation
11Administration, (ii) have a Class IV Rating, and (iii) conduct
12operations in accordance with Part 145 of the Federal Aviation
13Regulations. The exemption does not include aircraft operated
14by a commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part 129
16of the Federal Aviation Regulations.
17(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1896-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
197-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff.
201-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12.)
 
21    Section 20. The Retailers' Occupation Tax Act is amended by
22changing Section 2-5 as follows:
 
23    (35 ILCS 120/2-5)
24    (Text of Section before amendment by P.A. 97-636)

 

 

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1    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
2sale of the following tangible personal property are exempt
3from the tax imposed by this Act:
4    (1) Farm chemicals.
5    (2) 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 (2). Agricultural chemical tender tanks and dry boxes
20shall 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 (2) (7) is exempt from the
13provisions of Section 2-70.
14    (3) Until July 1, 2003, distillation machinery and
15equipment, sold as a unit or kit, assembled or installed by the
16retailer, certified by the user to be used only for the
17production of ethyl alcohol that will be used for consumption
18as motor fuel or as a component of motor fuel for the personal
19use of the user, and not subject to sale or resale.
20    (4) Until July 1, 2003 and beginning again September 1,
212004 through August 30, 2014, graphic arts machinery and
22equipment, including repair and replacement parts, both new and
23used, and including that manufactured on special order or
24purchased for lease, certified by the purchaser to be used
25primarily for graphic arts production. Equipment includes
26chemicals or chemicals acting as catalysts but only if the

 

 

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1chemicals or chemicals acting as catalysts effect a direct and
2immediate change upon a graphic arts product.
3    (5) A motor vehicle of the first division, a motor vehicle
4of the second division that is a self contained motor vehicle
5designed or permanently converted to provide living quarters
6for recreational, camping, or travel use, with direct walk
7through access to the living quarters from the driver's seat,
8or a motor vehicle of the second division that is of the van
9configuration designed for the transportation of not less than
107 nor more than 16 passengers, as defined in Section 1-146 of
11the Illinois Vehicle Code, that is used for automobile renting,
12as defined in the Automobile Renting Occupation and Use Tax
13Act. This paragraph is exempt from the provisions of Section
142-70.
15    (6) Personal property sold by a teacher-sponsored student
16organization affiliated with an elementary or secondary school
17located in Illinois.
18    (7) Until July 1, 2003, proceeds of that portion of the
19selling price of a passenger car the sale of which is subject
20to the Replacement Vehicle Tax.
21    (8) Personal property sold to an Illinois county fair
22association for use in conducting, operating, or promoting the
23county fair.
24    (9) Personal property sold to a not-for-profit arts or
25cultural organization that establishes, by proof required by
26the Department by rule, that it has received an exemption under

 

 

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1Section 501(c)(3) of the Internal Revenue Code and that is
2organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after the effective date
9of this amendatory Act of the 92nd General Assembly, however,
10an entity otherwise eligible for this exemption shall not make
11tax-free purchases unless it has an active identification
12number issued by the Department.
13    (10) 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    (11) Personal property sold to a governmental body, to a
21corporation, society, association, foundation, or institution
22organized and operated exclusively for charitable, religious,
23or educational purposes, or to a not-for-profit corporation,
24society, association, foundation, institution, or organization
25that has no compensated officers or employees and that is
26organized and operated primarily for the recreation of persons

 

 

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155 years of age or older. A limited liability company may
2qualify for the exemption under this paragraph only if the
3limited liability company is organized and operated
4exclusively for educational purposes. On and after July 1,
51987, however, no entity otherwise eligible for this exemption
6shall make tax-free purchases unless it has an active
7identification number issued by the Department.
8    (12) Tangible personal property sold to interstate
9carriers for hire for use as rolling stock moving in interstate
10commerce or to lessors under leases of one year or longer
11executed or in effect at the time of purchase 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    (12-5) On and after July 1, 2003 and through June 30, 2004,
18motor vehicles of the second division with a gross vehicle
19weight in excess of 8,000 pounds that are subject to the
20commercial distribution fee imposed under Section 3-815.1 of
21the Illinois Vehicle Code. Beginning on July 1, 2004 and
22through June 30, 2005, the use in this State of motor vehicles
23of the second division: (i) with a gross vehicle weight rating
24in excess of 8,000 pounds; (ii) that are subject to the
25commercial distribution fee imposed under Section 3-815.1 of
26the Illinois Vehicle Code; and (iii) that are primarily used

 

 

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1for commercial purposes. Through June 30, 2005, this exemption
2applies to repair and replacement parts added after the initial
3purchase of such a motor vehicle if that motor vehicle is used
4in a manner that would qualify for the rolling stock exemption
5otherwise provided for in this Act. For purposes of this
6paragraph, "used for commercial purposes" means the
7transportation of persons or property in furtherance of any
8commercial or industrial enterprise whether for-hire or not.
9    (13) Proceeds from sales to owners, lessors, or shippers of
10tangible personal property that is utilized by interstate
11carriers for hire for use as rolling stock moving in interstate
12commerce and equipment operated by a telecommunications
13provider, licensed as a common carrier by the Federal
14Communications Commission, which is permanently installed in
15or affixed to aircraft moving in interstate commerce.
16    (14) Machinery and equipment that will be used by the
17purchaser, or a lessee of the purchaser, primarily in the
18process of manufacturing or assembling tangible personal
19property for wholesale or retail sale or lease, whether the
20sale or lease is made directly by the manufacturer or by some
21other person, whether the materials used in the process are
22owned by the manufacturer or some other person, or whether the
23sale or lease is made apart from or as an incident to the
24seller's engaging in the service occupation of producing
25machines, tools, dies, jigs, patterns, gauges, or other similar
26items of no commercial value on special order for a particular

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    This paragraph (25-7) is exempt from the provisions of
2Section 2-70.
3    (26) Semen used for artificial insemination of livestock
4for direct agricultural production.
5    (27) Horses, or interests in horses, registered with and
6meeting the requirements of any of the Arabian Horse Club
7Registry of America, Appaloosa Horse Club, American Quarter
8Horse Association, United States Trotting Association, or
9Jockey Club, as appropriate, used for purposes of breeding or
10racing for prizes. This item (27) is exempt from the provisions
11of Section 2-70, and the exemption provided for under this item
12(27) applies for all periods beginning May 30, 1995, but no
13claim for credit or refund is allowed on or after January 1,
142008 (the effective date of Public Act 95-88) for such taxes
15paid during the period beginning May 30, 2000 and ending on
16January 1, 2008 (the effective date of Public Act 95-88).
17    (28) Computers and communications equipment utilized for
18any hospital purpose and equipment used in the diagnosis,
19analysis, or treatment of hospital patients sold to a lessor
20who leases the equipment, under a lease of one year or longer
21executed or in effect at the time of the purchase, to a
22hospital that has been issued an active tax exemption
23identification number by the Department under Section 1g of
24this Act.
25    (29) Personal property sold to a lessor who leases the
26property, under a lease of one year or longer executed or in

 

 

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1effect at the time of the purchase, to a governmental body that
2has been issued an active tax exemption identification number
3by the Department under Section 1g of this Act.
4    (30) 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    (31) 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    (32) Beginning July 1, 1999, game or game birds sold at a

 

 

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1"game breeding and hunting preserve area" as that term is used
2in the Wildlife Code. This paragraph is exempt from the
3provisions of Section 2-70.
4    (33) A motor vehicle, as that term is defined in Section
51-146 of the Illinois Vehicle Code, that is donated to a
6corporation, limited liability company, society, association,
7foundation, or institution that is determined by the Department
8to be organized and operated exclusively for educational
9purposes. For purposes of this exemption, "a corporation,
10limited liability company, society, association, foundation,
11or institution organized and operated exclusively for
12educational purposes" means all tax-supported public schools,
13private schools that offer systematic instruction in useful
14branches of learning by methods common to public schools and
15that compare favorably in their scope and intensity with the
16course of study presented in tax-supported schools, and
17vocational or technical schools or institutes organized and
18operated exclusively to provide a course of study of not less
19than 6 weeks duration and designed to prepare individuals to
20follow a trade or to pursue a manual, technical, mechanical,
21industrial, business, or commercial occupation.
22    (34) Beginning January 1, 2000, personal property,
23including food, purchased through fundraising events for the
24benefit of a public or private elementary or secondary school,
25a group of those schools, or one or more school districts if
26the events are sponsored by an entity recognized by the school

 

 

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1district that consists primarily of volunteers and includes
2parents and teachers of the school children. This paragraph
3does not apply to fundraising events (i) for the benefit of
4private home instruction or (ii) for which the fundraising
5entity purchases the personal property sold at the events from
6another individual or entity that sold the property for the
7purpose of resale by the fundraising entity and that profits
8from the sale to the fundraising entity. This paragraph is
9exempt from the provisions of Section 2-70.
10    (35) Beginning January 1, 2000 and through December 31,
112001, new or used automatic vending machines that prepare and
12serve hot food and beverages, including coffee, soup, and other
13items, and replacement parts for these machines. Beginning
14January 1, 2002 and through June 30, 2003, machines and parts
15for machines used in commercial, coin-operated amusement and
16vending business if a use or occupation tax is paid on the
17gross receipts derived from the use of the commercial,
18coin-operated amusement and vending machines. This paragraph
19is exempt from the provisions of Section 2-70.
20    (35-5) Beginning August 23, 2001 and through June 30, 2011,
21food for human consumption that is to be consumed off the
22premises where it is sold (other than alcoholic beverages, soft
23drinks, and food that has been prepared for immediate
24consumption) and prescription and nonprescription medicines,
25drugs, medical appliances, and insulin, blood or urine testing
26materials, syringes, and needles used by diabetics, for human

 

 

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1use, when purchased for use by a person receiving medical
2assistance under Article V of the Illinois Public Aid Code who
3resides in a licensed long-term care facility, as defined in
4the Nursing Home Care Act, or a licensed facility as defined in
5the ID/DD Community Care Act or the Specialized Mental Health
6Rehabilitation Act.
7    (36) Beginning August 2, 2001, computers and
8communications equipment utilized for any hospital purpose and
9equipment used in the diagnosis, analysis, or treatment of
10hospital patients sold to a lessor who leases the equipment,
11under a lease of one year or longer executed or in effect at
12the time of the purchase, to a hospital that has been issued an
13active tax exemption identification number by the Department
14under Section 1g of this Act. This paragraph is exempt from the
15provisions of Section 2-70.
16    (37) Beginning August 2, 2001, personal property sold to a
17lessor who leases the property, under a lease of one year or
18longer executed or in effect at the time of the purchase, to a
19governmental body that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21this Act. This paragraph is exempt from the provisions of
22Section 2-70.
23    (38) Beginning on January 1, 2002 and through June 30,
242016, tangible personal property purchased from an Illinois
25retailer by a taxpayer engaged in centralized purchasing
26activities in Illinois who will, upon receipt of the property

 

 

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

 

 

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

 

 

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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 2-70.
12(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1396-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
147-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff.
151-1-12; 97-431, eff. 8-16-11; revised 9-12-11.)
 
16    (Text of Section after amendment by P.A. 97-636)
17    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
18sale of the following tangible personal property are exempt
19from the tax imposed by this Act:
20    (1) Farm chemicals.
21    (2) Farm machinery and equipment, both new and used,
22including that manufactured on special order, certified by the
23purchaser to be used primarily for production agriculture or
24State or federal agricultural programs, including individual
25replacement 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 (2) 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

 

 

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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

 

 

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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

 

 

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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

 

 

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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" as that term is used
19in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 2-70.
21    (33) A motor vehicle, as that term is defined in Section
221-146 of the Illinois Vehicle Code, that is donated to a
23corporation, limited liability company, society, association,
24foundation, or institution that is determined by the Department
25to be organized and operated exclusively for educational
26purposes. For purposes of this exemption, "a corporation,

 

 

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1limited liability company, society, association, foundation,
2or institution organized and operated exclusively for
3educational purposes" means all tax-supported public schools,
4private schools that offer systematic instruction in useful
5branches of learning by methods common to public schools and
6that compare favorably in their scope and intensity with the
7course of study presented in tax-supported schools, and
8vocational or technical schools or institutes organized and
9operated exclusively to provide a course of study of not less
10than 6 weeks duration and designed to prepare individuals to
11follow a trade or to pursue a manual, technical, mechanical,
12industrial, business, or commercial occupation.
13    (34) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 2-70.

 

 

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1    (35) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and other
4items, and replacement parts for these machines. Beginning
5January 1, 2002 and through June 30, 2003, machines and parts
6for machines used in commercial, coin-operated amusement and
7vending business if a use or occupation tax is paid on the
8gross receipts derived from the use of the commercial,
9coin-operated amusement and vending machines. This paragraph
10is exempt from the provisions of Section 2-70.
11    (35-5) Beginning August 23, 2001 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages, soft
14drinks, and food that has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, and insulin, blood or urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or a licensed facility as defined in
22the ID/DD Community Care Act or the Specialized Mental Health
23Rehabilitation Act.
24    (36) Beginning August 2, 2001, computers and
25communications equipment utilized for any hospital purpose and
26equipment used in the diagnosis, analysis, or treatment of

 

 

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1hospital patients sold to a lessor who leases the equipment,
2under a lease of one year or longer executed or in effect at
3the time of the purchase, to a hospital that has been issued an
4active tax exemption identification number by the Department
5under Section 1g of this Act. This paragraph is exempt from the
6provisions of Section 2-70.
7    (37) Beginning August 2, 2001, personal property sold to a
8lessor who leases the property, under a lease of one year or
9longer executed or in effect at the time of the purchase, to a
10governmental body that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12this Act. This paragraph is exempt from the provisions of
13Section 2-70.
14    (38) Beginning on January 1, 2002 and through June 30,
152016, tangible personal property purchased from an Illinois
16retailer by a taxpayer engaged in centralized purchasing
17activities in Illinois who will, upon receipt of the property
18in Illinois, temporarily store the property in Illinois (i) for
19the purpose of subsequently transporting it outside this State
20for use or consumption thereafter solely outside this State or
21(ii) for the purpose of being processed, fabricated, or
22manufactured into, attached to, or incorporated into other
23tangible personal property to be transported outside this State
24and thereafter used or consumed solely outside this State. The
25Director of Revenue shall, pursuant to rules adopted in
26accordance with the Illinois Administrative Procedure Act,

 

 

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

 

 

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1maintenance of aircraft engines or power plants, whether such
2engines or power plants are installed or uninstalled upon any
3such aircraft. "Consumable supplies" include, but are not
4limited to, adhesive, tape, sandpaper, general purpose
5lubricants, cleaning solution, latex gloves, and protective
6films. This exemption applies only to those organizations that
7(i) hold an Air Agency Certificate and are empowered to operate
8an approved repair station by the Federal Aviation
9Administration, (ii) have a Class IV Rating, and (iii) conduct
10operations in accordance with Part 145 of the Federal Aviation
11Regulations. The exemption does not include aircraft operated
12by a commercial air carrier providing scheduled passenger air
13service pursuant to authority issued under Part 121 or Part 129
14of the Federal Aviation Regulations.
15    (41) Tangible personal property sold to a
16public-facilities corporation, as described in Section
1711-65-10 of the Illinois Municipal Code, for purposes of
18constructing or furnishing a municipal convention hall, but
19only if the legal title to the municipal convention hall is
20transferred to the municipality without any further
21consideration by or on behalf of the municipality at the time
22of the completion of the municipal convention hall or upon the
23retirement or redemption of any bonds or other debt instruments
24issued by the public-facilities corporation in connection with
25the development of the municipal convention hall. This
26exemption includes existing public-facilities corporations as

 

 

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1provided in Section 11-65-25 of the Illinois Municipal Code.
2This paragraph is exempt from the provisions of Section 2-70.
3(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
496-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
57-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff.
61-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12.)
 
7    Section 95. No acceleration or delay. Where this Act makes
8changes in a statute that is represented in this Act by text
9that is not yet or no longer in effect (for example, a Section
10represented by multiple versions), the use of that text does
11not accelerate or delay the taking effect of (i) the changes
12made by this Act or (ii) provisions derived from any other
13Public Act.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.