Rep. Barbara Flynn Currie

Filed: 5/13/2013

 

 


 

 


 
09800SB1801ham001LRB098 04082 HLH 45778 a

1
AMENDMENT TO SENATE BILL 1801

2    AMENDMENT NO. ______. Amend Senate Bill 1801 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1stopovers.
2    (13) Proceeds of mandatory service charges separately
3stated on customers' bills for the purchase and consumption of
4food and beverages purchased at retail from a retailer, to the
5extent that the proceeds of the service charge are in fact
6turned over as tips or as a substitute for tips to the
7employees who participate directly in preparing, serving,
8hosting or cleaning up the food or beverage function with
9respect to which the service charge is imposed.
10    (14) Until July 1, 2003, oil field exploration, drilling,
11and production equipment, including (i) rigs and parts of rigs,
12rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
13tubular goods, including casing and drill strings, (iii) pumps
14and pump-jack units, (iv) storage tanks and flow lines, (v) any
15individual replacement part for oil field exploration,
16drilling, and production equipment, and (vi) machinery and
17equipment purchased for lease; but excluding motor vehicles
18required to be registered under the Illinois Vehicle Code.
19    (15) Photoprocessing machinery and equipment, including
20repair and replacement parts, both new and used, including that
21manufactured on special order, certified by the purchaser to be
22used primarily for photoprocessing, and including
23photoprocessing machinery and equipment purchased for lease.
24    (16) Until July 1, 2003, and beginning again on the
25effective date of this amendatory Act of the 97th General
26Assembly and thereafter, coal and aggregate exploration,

 

 

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

 

 

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1deliver the personal property.
2    (20) Semen used for artificial insemination of livestock
3for direct agricultural production.
4    (21) Horses, or interests in horses, registered with and
5meeting the requirements of any of the Arabian Horse Club
6Registry of America, Appaloosa Horse Club, American Quarter
7Horse Association, United States Trotting Association, or
8Jockey Club, as appropriate, used for purposes of breeding or
9racing for prizes. This item (21) is exempt from the provisions
10of Section 3-90, and the exemption provided for under this item
11(21) applies for all periods beginning May 30, 1995, but no
12claim for credit or refund is allowed on or after January 1,
132008 for such taxes paid during the period beginning May 30,
142000 and ending on January 1, 2008.
15    (22) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients purchased by a
18lessor who leases the equipment, under a lease of one year or
19longer executed or in effect at the time the lessor would
20otherwise be subject to the tax imposed by this Act, to a
21hospital 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 non-exempt manner, the lessor shall be liable for the
26tax imposed under this Act or the Service Use Tax Act, as the

 

 

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

 

 

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

 

 

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1declared disaster area within 6 months after the disaster.
2    (26) Beginning July 1, 1999, game or game birds purchased
3at a "game breeding and hunting preserve area" as that term is
4used in the Wildlife Code. This paragraph is exempt from the
5provisions of Section 3-90.
6    (27) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the Department
10to be organized and operated exclusively for educational
11purposes. For purposes of this exemption, "a corporation,
12limited liability company, society, association, foundation,
13or institution organized and operated exclusively for
14educational purposes" means all tax-supported public schools,
15private schools that offer systematic instruction in useful
16branches of learning by methods common to public schools and
17that compare favorably in their scope and intensity with the
18course of study presented in tax-supported schools, and
19vocational or technical schools or institutes organized and
20operated exclusively to provide a course of study of not less
21than 6 weeks duration and designed to prepare individuals to
22follow a trade or to pursue a manual, technical, mechanical,
23industrial, business, or commercial occupation.
24    (28) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

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1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 3-90.
12    (29) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and other
15items, and replacement parts for these machines. Beginning
16January 1, 2002 and through June 30, 2003, machines and parts
17for machines used in commercial, coin-operated amusement and
18vending business if a use or occupation tax is paid on the
19gross receipts derived from the use of the commercial,
20coin-operated amusement and vending machines. This paragraph
21is exempt from the provisions of Section 3-90.
22    (30) Beginning January 1, 2001 and through June 30, 2016,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or in a licensed facility as defined
7in the ID/DD Community Care Act or the Specialized Mental
8Health Rehabilitation Act.
9    (31) 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
13purchased by a lessor who leases the equipment, under a lease
14of one year or longer executed or in effect at the time the
15lessor would otherwise be subject to the tax imposed by this
16Act, to a hospital 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 nonexempt 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 nonqualifying 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. This paragraph is exempt from the provisions of
7Section 3-90.
8    (32) Beginning on the effective date of this amendatory Act
9of the 92nd General Assembly, personal property purchased by a
10lessor who leases the property, 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
13governmental body that has been issued an active sales tax
14exemption identification number by the Department under
15Section 1g of the Retailers' Occupation Tax Act. If the
16property is leased in a manner that does not qualify for this
17exemption or used in any other nonexempt manner, the lessor
18shall be liable for the tax imposed under this Act or the
19Service Use Tax Act, as the case may be, based on the fair
20market value of the property at the time the nonqualifying use
21occurs. No lessor shall collect or attempt to collect an amount
22(however designated) that purports to reimburse that lessor for
23the tax imposed by this Act or the Service Use Tax Act, as the
24case may be, if the tax has not been paid by the lessor. If a
25lessor improperly collects any such amount from the lessee, the
26lessee shall have a legal right to claim a refund of that

 

 

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1amount from the lessor. If, however, that amount is not
2refunded to the lessee for any reason, the lessor is liable to
3pay that amount to the Department. This paragraph is exempt
4from the provisions of Section 3-90.
5    (33) On and after July 1, 2003 and through June 30, 2004,
6the use in this State of motor vehicles of the second division
7with a gross vehicle weight in excess of 8,000 pounds and that
8are subject to the commercial distribution fee imposed under
9Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
101, 2004 and through June 30, 2005, the use in this State of
11motor vehicles of the second division: (i) with a gross vehicle
12weight rating in excess of 8,000 pounds; (ii) that are subject
13to the commercial distribution fee imposed under Section
143-815.1 of the Illinois Vehicle Code; and (iii) that are
15primarily used for commercial purposes. Through June 30, 2005,
16this exemption applies to repair and replacement parts added
17after the initial purchase of such a motor vehicle if that
18motor vehicle is used in a manner that would qualify for the
19rolling stock exemption otherwise provided for in this Act. For
20purposes of this paragraph, the term "used for commercial
21purposes" means the transportation of persons or property in
22furtherance of any commercial or industrial enterprise,
23whether for-hire or not.
24    (34) 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 3-90.
5    (35) Beginning January 1, 2010, materials, parts,
6equipment, components, and furnishings incorporated into or
7upon an aircraft as part of the modification, refurbishment,
8completion, replacement, repair, or maintenance of the
9aircraft. This exemption includes consumable supplies used in
10the modification, refurbishment, completion, replacement,
11repair, and maintenance of aircraft, but excludes any
12materials, parts, equipment, components, and consumable
13supplies used in the modification, replacement, repair, and
14maintenance of aircraft engines or power plants, whether such
15engines or power plants are installed or uninstalled upon any
16such aircraft. "Consumable supplies" include, but are not
17limited to, adhesive, tape, sandpaper, general purpose
18lubricants, cleaning solution, latex gloves, and protective
19films. This exemption applies only to the use of qualifying
20tangible personal property by persons who modify, refurbish,
21complete, repair, replace, or maintain aircraft and who those
22organizations that (i) hold an Air Agency Certificate and are
23empowered to operate an approved repair station by the Federal
24Aviation Administration, (ii) have a Class IV Rating, and (iii)
25conduct operations in accordance with Part 145 of the Federal
26Aviation Regulations. The exemption does not include aircraft

 

 

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1operated by a commercial air carrier providing scheduled
2passenger air service pursuant to authority issued under Part
3121 or Part 129 of the Federal Aviation Regulations. The
4changes made to this paragraph (35) by this amendatory Act of
5the 98th General Assembly are declarative of existing law.
6    (36) Tangible personal property purchased by 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 3-90.
20(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
2196-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
227-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
238-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
 
24    Section 10. The Service Use Tax Act is amended by changing
25Section 3-5 as follows:
 

 

 

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1    (35 ILCS 110/3-5)
2    Sec. 3-5. Exemptions. Use of the following tangible
3personal property is exempt from the tax imposed by this Act:
4    (1) Personal property purchased from a corporation,
5society, association, foundation, institution, or
6organization, other than a limited liability company, that is
7organized and operated as a not-for-profit service enterprise
8for the benefit of persons 65 years of age or older if the
9personal property was not purchased by the enterprise for the
10purpose of resale by the enterprise.
11    (2) Personal property purchased by a non-profit Illinois
12county fair association for use in conducting, operating, or
13promoting the county fair.
14    (3) Personal property purchased by a not-for-profit arts or
15cultural organization that establishes, by proof required by
16the Department by rule, that it has received an exemption under
17Section 501(c)(3) of the Internal Revenue Code and that is
18organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after the effective date
25of 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    (4) Legal tender, currency, medallions, or gold or silver
5coinage issued by the State of Illinois, the government of the
6United States of America, or the government of any foreign
7country, and bullion.
8    (5) Until July 1, 2003 and beginning again on September 1,
92004 through August 30, 2014, graphic arts machinery and
10equipment, including repair and replacement parts, both new and
11used, and including that manufactured on special order or
12purchased for lease, certified by the purchaser to be used
13primarily for graphic arts production. Equipment includes
14chemicals or chemicals acting as catalysts but only if the
15chemicals or chemicals acting as catalysts effect a direct and
16immediate change upon a graphic arts product.
17    (6) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (7) Farm machinery and equipment, both new and used,
21including that manufactured on special order, certified by the
22purchaser to be used primarily for production agriculture or
23State or federal agricultural programs, including individual
24replacement parts for the machinery and equipment, including
25machinery and equipment purchased for lease, and including
26implements of husbandry defined in Section 1-130 of the

 

 

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

 

 

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1agricultural chemicals. This item (7) is exempt from the
2provisions of Section 3-75.
3    (8) Fuel and petroleum products sold to or used by an air
4common carrier, certified by the carrier to be used for
5consumption, shipment, or storage in the conduct of its
6business as an air common carrier, for a flight destined for or
7returning from a location or locations outside the United
8States without regard to previous or subsequent domestic
9stopovers.
10    (9) Proceeds of mandatory service charges separately
11stated on customers' bills for the purchase and consumption of
12food and beverages acquired as an incident to the purchase of a
13service from a serviceman, to the extent that the proceeds of
14the service charge are in fact turned over as tips or as a
15substitute for tips to the employees who participate directly
16in preparing, serving, hosting or cleaning up the food or
17beverage function with respect to which the service charge is
18imposed.
19    (10) Until July 1, 2003, oil field exploration, drilling,
20and production equipment, including (i) rigs and parts of rigs,
21rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
22tubular goods, including casing and drill strings, (iii) pumps
23and pump-jack units, (iv) storage tanks and flow lines, (v) any
24individual replacement part for oil field exploration,
25drilling, and production equipment, and (vi) machinery and
26equipment purchased for lease; but excluding motor vehicles

 

 

09800SB1801ham001- 22 -LRB098 04082 HLH 45778 a

1required to be registered under the Illinois Vehicle Code.
2    (11) Proceeds from the sale of photoprocessing machinery
3and equipment, including repair and replacement parts, both new
4and used, including that manufactured on special order,
5certified by the purchaser to be used primarily for
6photoprocessing, and including photoprocessing machinery and
7equipment purchased for lease.
8    (12) Until July 1, 2003, and beginning again on the
9effective date of this amendatory Act of the 97th General
10Assembly and thereafter, coal and aggregate exploration,
11mining, offhighway hauling, processing, maintenance, and
12reclamation equipment, including replacement parts and
13equipment, and including equipment purchased for lease, but
14excluding motor vehicles required to be registered under the
15Illinois Vehicle Code.
16    (13) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (14) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (14) is exempt from the provisions
24of Section 3-75, and the exemption provided for under this item
25(14) applies for all periods beginning May 30, 1995, but no
26claim for credit or refund is allowed on or after the effective

 

 

09800SB1801ham001- 23 -LRB098 04082 HLH 45778 a

1date of this amendatory Act of the 95th General Assembly for
2such taxes paid during the period beginning May 30, 2000 and
3ending on the effective date of this amendatory Act of the 95th
4General Assembly.
5    (15) Computers and communications equipment utilized for
6any hospital purpose and equipment used in the diagnosis,
7analysis, or treatment of hospital patients purchased by a
8lessor who leases the equipment, under a lease of one year or
9longer executed or in effect at the time the lessor would
10otherwise be subject to the tax imposed by this Act, 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. If the equipment is leased in a
14manner that does not qualify for this exemption or is used in
15any other non-exempt manner, the lessor shall be liable for the
16tax imposed under this Act or the Use Tax Act, as the case may
17be, based on the fair market value of the property at the time
18the non-qualifying use occurs. No lessor shall collect or
19attempt to collect an amount (however designated) that purports
20to reimburse that lessor for the tax imposed by this Act or the
21Use Tax Act, as the case may be, if the tax has not been paid by
22the lessor. If a lessor improperly collects any such amount
23from the lessee, the lessee shall have a legal right to claim a
24refund of that amount from the lessor. If, however, that amount
25is not refunded to the lessee for any reason, the lessor is
26liable to pay that amount to the Department.

 

 

09800SB1801ham001- 24 -LRB098 04082 HLH 45778 a

1    (16) Personal property purchased by a lessor who leases the
2property, under a lease of one year or longer executed or in
3effect at the time the lessor would otherwise be subject to the
4tax imposed by this Act, to a governmental body that has been
5issued an active tax exemption identification number by the
6Department under Section 1g of the Retailers' Occupation Tax
7Act. If the property is leased in a manner that does not
8qualify for this exemption or is used in any other non-exempt
9manner, the lessor shall be liable for the tax imposed under
10this Act or the Use Tax Act, as the case may be, based on the
11fair market value of the property at the time the
12non-qualifying use occurs. No lessor shall collect or attempt
13to collect an amount (however designated) that purports to
14reimburse that lessor for the tax imposed by this Act or the
15Use Tax Act, as the case may be, if the tax has not been paid by
16the lessor. If a lessor improperly collects any such amount
17from the lessee, the lessee shall have a legal right to claim a
18refund of that amount from the lessor. If, however, that amount
19is not refunded to the lessee for any reason, the lessor is
20liable to pay that amount to the Department.
21    (17) 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    (18) 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    (19) Beginning July 1, 1999, game or game birds purchased
18at a "game breeding and hunting preserve area" as that term is
19used in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 3-75.
21    (20) 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,

 

 

09800SB1801ham001- 26 -LRB098 04082 HLH 45778 a

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    (21) 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 3-75.

 

 

09800SB1801ham001- 27 -LRB098 04082 HLH 45778 a

1    (22) 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 3-75.
11    (23) 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, 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 in a licensed facility as defined
22in the ID/DD Community Care Act or the Specialized Mental
23Health Rehabilitation Act.
24    (24) Beginning on the effective date of this amendatory Act
25of the 92nd General Assembly, computers and communications
26equipment utilized for any hospital purpose and equipment used

 

 

09800SB1801ham001- 28 -LRB098 04082 HLH 45778 a

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

 

 

09800SB1801ham001- 29 -LRB098 04082 HLH 45778 a

1governmental body that has been issued an active tax exemption
2identification number by the Department under Section 1g of the
3Retailers' Occupation Tax Act. If the property is leased in a
4manner that does not qualify for this exemption or is used in
5any other nonexempt 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 nonqualifying 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. This paragraph is
17exempt from the provisions of Section 3-75.
18    (26) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued under
23Title IV of the Environmental Protection Act. This paragraph is
24exempt from the provisions of Section 3-75.
25    (27) Beginning January 1, 2010, materials, parts,
26equipment, components, and furnishings incorporated into or

 

 

09800SB1801ham001- 30 -LRB098 04082 HLH 45778 a

1upon an aircraft as part of the modification, refurbishment,
2completion, replacement, repair, or maintenance of the
3aircraft. This exemption includes consumable supplies used in
4the modification, refurbishment, completion, replacement,
5repair, and maintenance of aircraft, but excludes any
6materials, parts, equipment, components, and consumable
7supplies used in the modification, replacement, repair, and
8maintenance of aircraft engines or power plants, whether such
9engines or power plants are installed or uninstalled upon any
10such aircraft. "Consumable supplies" include, but are not
11limited to, adhesive, tape, sandpaper, general purpose
12lubricants, cleaning solution, latex gloves, and protective
13films. This exemption applies only to the use of qualifying
14tangible personal property transferred incident to the
15modification, refurbishment, completion, replacement, repair,
16or maintenance of aircraft by persons who those organizations
17that (i) hold an Air Agency Certificate and are empowered to
18operate an approved repair station by the Federal Aviation
19Administration, (ii) have a Class IV Rating, and (iii) conduct
20operations in accordance with Part 145 of the Federal Aviation
21Regulations. The exemption does not include aircraft operated
22by a commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part 129
24of the Federal Aviation Regulations. The changes made to this
25paragraph (27) by this amendatory Act of the 98th General
26Assembly are declarative of existing law.

 

 

09800SB1801ham001- 31 -LRB098 04082 HLH 45778 a

1    (28) Tangible personal property purchased by a
2public-facilities corporation, as described in Section
311-65-10 of the Illinois Municipal Code, for purposes of
4constructing or furnishing a municipal convention hall, but
5only if the legal title to the municipal convention hall is
6transferred to the municipality without any further
7consideration by or on behalf of the municipality at the time
8of the completion of the municipal convention hall or upon the
9retirement or redemption of any bonds or other debt instruments
10issued by the public-facilities corporation in connection with
11the development of the municipal convention hall. This
12exemption includes existing public-facilities corporations as
13provided in Section 11-65-25 of the Illinois Municipal Code.
14This paragraph is exempt from the provisions of Section 3-75.
15(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1696-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
177-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
188-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
 
19    Section 15. The Service Occupation Tax Act is amended by
20changing Section 3-5 as follows:
 
21    (35 ILCS 115/3-5)
22    Sec. 3-5. Exemptions. The following tangible personal
23property is exempt from the tax imposed by this Act:
24    (1) Personal property sold by a corporation, society,

 

 

09800SB1801ham001- 32 -LRB098 04082 HLH 45778 a

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

 

 

09800SB1801ham001- 33 -LRB098 04082 HLH 45778 a

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

 

 

09800SB1801ham001- 34 -LRB098 04082 HLH 45778 a

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

 

 

09800SB1801ham001- 35 -LRB098 04082 HLH 45778 a

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

 

 

09800SB1801ham001- 36 -LRB098 04082 HLH 45778 a

1    (12) Until July 1, 2003, and beginning again on the
2effective date of this amendatory Act of the 97th General
3Assembly and thereafter, coal and aggregate exploration,
4mining, offhighway hauling, processing, maintenance, and
5reclamation equipment, including replacement parts and
6equipment, and including equipment purchased for lease, but
7excluding motor vehicles required to be registered under the
8Illinois Vehicle Code.
9    (13) Beginning January 1, 1992 and through June 30, 2016,
10food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages, soft
12drinks and food that has been prepared for immediate
13consumption) and prescription and non-prescription medicines,
14drugs, medical appliances, and insulin, urine testing
15materials, syringes, and needles used by diabetics, for human
16use, when purchased for use by a person receiving medical
17assistance under Article V of the Illinois Public Aid Code who
18resides in a licensed long-term care facility, as defined in
19the Nursing Home Care Act, or in a licensed facility as defined
20in the ID/DD Community Care Act or the Specialized Mental
21Health Rehabilitation Act.
22    (14) Semen used for artificial insemination of livestock
23for direct agricultural production.
24    (15) Horses, or interests in horses, registered with and
25meeting the requirements of any of the Arabian Horse Club
26Registry of America, Appaloosa Horse Club, American Quarter

 

 

09800SB1801ham001- 37 -LRB098 04082 HLH 45778 a

1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (15) is exempt from the provisions
4of Section 3-55, and the exemption provided for under this item
5(15) applies for all periods beginning May 30, 1995, but no
6claim for credit or refund is allowed on or after January 1,
72008 (the effective date of Public Act 95-88) for such taxes
8paid during the period beginning May 30, 2000 and ending on
9January 1, 2008 (the effective date of Public Act 95-88).
10    (16) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients sold to a lessor
13who leases the equipment, under a lease of one year or longer
14executed or in effect at the time of the purchase, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act.
18    (17) Personal property sold to a lessor who leases the
19property, under a lease of one year or longer executed or in
20effect at the time of the purchase, to a governmental body that
21has been issued an active tax exemption identification number
22by the Department under Section 1g of the Retailers' Occupation
23Tax Act.
24    (18) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is donated for

 

 

09800SB1801ham001- 38 -LRB098 04082 HLH 45778 a

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    (19) 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    (20) Beginning July 1, 1999, game or game birds sold at a
21"game breeding and hunting preserve area" as that term is used
22in the Wildlife Code. This paragraph is exempt from the
23provisions of Section 3-55.
24    (21) 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,

 

 

09800SB1801ham001- 39 -LRB098 04082 HLH 45778 a

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    (22) 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

 

 

09800SB1801ham001- 40 -LRB098 04082 HLH 45778 a

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 3-55.
4    (23) 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 3-55.
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
18sold to a lessor who leases the equipment, under a lease of one
19year or longer executed or in effect at the time of the
20purchase, to a hospital that has been issued an active tax
21exemption identification number by the Department under
22Section 1g of the Retailers' Occupation Tax Act. This paragraph
23is exempt from the provisions of Section 3-55.
24    (25) Beginning on the effective date of this amendatory Act
25of the 92nd General Assembly, personal property sold to a
26lessor who leases the property, under a lease of one year or

 

 

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1longer executed or in effect at the time of the purchase, 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. This paragraph is exempt from
5the provisions of Section 3-55.
6    (26) Beginning on January 1, 2002 and through June 30,
72016, tangible personal property purchased from an Illinois
8retailer by a taxpayer engaged in centralized purchasing
9activities in Illinois who will, upon receipt of the property
10in Illinois, temporarily store the property in Illinois (i) for
11the purpose of subsequently transporting it outside this State
12for use or consumption thereafter solely outside this State or
13(ii) for the purpose of being processed, fabricated, or
14manufactured into, attached to, or incorporated into other
15tangible personal property to be transported outside this State
16and thereafter used or consumed solely outside this State. The
17Director of Revenue shall, pursuant to rules adopted in
18accordance with the Illinois Administrative Procedure Act,
19issue a permit to any taxpayer in good standing with the
20Department who is eligible for the exemption under this
21paragraph (26). The permit issued under this paragraph (26)
22shall authorize the holder, to the extent and in the manner
23specified in the rules adopted under this Act, to purchase
24tangible personal property from a retailer exempt from the
25taxes imposed by this Act. Taxpayers shall maintain all
26necessary books and records to substantiate the use and

 

 

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1consumption of all such tangible personal property outside of
2the State of Illinois.
3    (27) Beginning January 1, 2008, tangible personal property
4used in the construction or maintenance of a community water
5supply, as defined under Section 3.145 of the Environmental
6Protection Act, that is operated by a not-for-profit
7corporation that holds a valid water supply permit issued under
8Title IV of the Environmental Protection Act. This paragraph is
9exempt from the provisions of Section 3-55.
10    (28) Tangible personal property sold to a
11public-facilities corporation, as described in Section
1211-65-10 of the Illinois Municipal Code, for purposes of
13constructing or furnishing a municipal convention hall, but
14only if the legal title to the municipal convention hall is
15transferred to the municipality without any further
16consideration by or on behalf of the municipality at the time
17of the completion of the municipal convention hall or upon the
18retirement or redemption of any bonds or other debt instruments
19issued by the public-facilities corporation in connection with
20the development of the municipal convention hall. This
21exemption includes existing public-facilities corporations as
22provided in Section 11-65-25 of the Illinois Municipal Code.
23This paragraph is exempt from the provisions of Section 3-55.
24    (29) Beginning January 1, 2010, materials, parts,
25equipment, components, and furnishings incorporated into or
26upon an aircraft as part of the modification, refurbishment,

 

 

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1completion, replacement, repair, or maintenance of the
2aircraft. This exemption includes consumable supplies used in
3the modification, refurbishment, completion, replacement,
4repair, and maintenance of aircraft, but excludes any
5materials, parts, equipment, components, and consumable
6supplies used in the modification, replacement, repair, and
7maintenance of aircraft engines or power plants, whether such
8engines or power plants are installed or uninstalled upon any
9such aircraft. "Consumable supplies" include, but are not
10limited to, adhesive, tape, sandpaper, general purpose
11lubricants, cleaning solution, latex gloves, and protective
12films. This exemption applies only to the transfer of
13qualifying tangible personal property incident to the
14modification, refurbishment, completion, replacement, repair,
15or maintenance of an aircraft to persons who those
16organizations that (i) hold an Air Agency Certificate and are
17empowered to operate an approved repair station by the Federal
18Aviation Administration, (ii) have a Class IV Rating, and (iii)
19conduct operations in accordance with Part 145 of the Federal
20Aviation Regulations. The exemption does not include aircraft
21operated by a commercial air carrier providing scheduled
22passenger air service pursuant to authority issued under Part
23121 or Part 129 of the Federal Aviation Regulations. The
24changes made to this paragraph (29) by this amendatory Act of
25the 98th General Assembly are declarative of existing law.
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; 97-73, eff. 6-30-11; 97-227, eff.
31-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff.
47-9-12.)
 
5    Section 20. The Retailers' Occupation Tax Act is amended by
6changing Section 2-5 as follows:
 
7    (35 ILCS 120/2-5)
8    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
9sale of the following tangible personal property are exempt
10from the tax imposed by this Act:
11    (1) Farm chemicals.
12    (2) 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

 

 

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1plants shall be considered farm machinery and equipment under
2this item (2). Agricultural chemical tender tanks and dry boxes
3shall include units sold separately from a motor vehicle
4required to be licensed and units sold mounted on a motor
5vehicle required to be licensed, if the selling price of the
6tender is separately stated.
7    Farm machinery and equipment shall include precision
8farming equipment that is installed or purchased to be
9installed on farm machinery and equipment including, but not
10limited to, tractors, harvesters, sprayers, planters, seeders,
11or spreaders. Precision farming equipment includes, but is not
12limited to, soil testing sensors, computers, monitors,
13software, global positioning and mapping systems, and other
14such equipment.
15    Farm machinery and equipment also includes computers,
16sensors, software, and related equipment used primarily in the
17computer-assisted operation of production agriculture
18facilities, equipment, and activities such as, but not limited
19to, the collection, monitoring, and correlation of animal and
20crop data for the purpose of formulating animal diets and
21agricultural chemicals. This item (2) is exempt from the
22provisions of Section 2-70.
23    (3) Until July 1, 2003, distillation machinery and
24equipment, sold as a unit or kit, assembled or installed by the
25retailer, certified by the user to be used only for the
26production of ethyl alcohol that will be used for consumption

 

 

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1as motor fuel or as a component of motor fuel for the personal
2use of the user, and not subject to sale or resale.
3    (4) Until July 1, 2003 and beginning again September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new and
6used, and including that manufactured on special order or
7purchased for lease, certified by the purchaser to be used
8primarily for graphic arts production. Equipment includes
9chemicals or chemicals acting as catalysts but only if the
10chemicals or chemicals acting as catalysts effect a direct and
11immediate change upon a graphic arts product.
12    (5) A motor vehicle of the first division, a motor vehicle
13of the second division that is a self contained motor vehicle
14designed or permanently converted to provide living quarters
15for recreational, camping, or travel use, with direct walk
16through access to the living quarters from the driver's seat,
17or a motor vehicle of the second division that is of the van
18configuration designed for the transportation of not less than
197 nor more than 16 passengers, as defined in Section 1-146 of
20the Illinois Vehicle Code, that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act. This paragraph is exempt from the provisions of Section
232-70.
24    (6) Personal property sold by a teacher-sponsored student
25organization affiliated with an elementary or secondary school
26located in Illinois.

 

 

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1    (7) Until July 1, 2003, proceeds of that portion of the
2selling price of a passenger car the sale of which is subject
3to the Replacement Vehicle Tax.
4    (8) Personal property sold to an Illinois county fair
5association for use in conducting, operating, or promoting the
6county fair.
7    (9) Personal property sold to 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    (10) Personal property sold by a corporation, society,
23association, foundation, institution, or organization, other
24than a limited liability company, that is organized and
25operated as a not-for-profit service enterprise for the benefit
26of persons 65 years of age or older if the personal property

 

 

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1was not purchased by the enterprise for the purpose of resale
2by the enterprise.
3    (11) Personal property sold to a governmental body, to a
4corporation, society, association, foundation, or institution
5organized and operated exclusively for charitable, religious,
6or educational purposes, or to a not-for-profit corporation,
7society, association, foundation, institution, or organization
8that has no compensated officers or employees and that is
9organized and operated primarily for the recreation of persons
1055 years of age or older. A limited liability company may
11qualify for the exemption under this paragraph only if the
12limited liability company is organized and operated
13exclusively for educational purposes. On and after July 1,
141987, however, no entity otherwise eligible for this exemption
15shall make tax-free purchases unless it has an active
16identification number issued by the Department.
17    (12) Tangible personal property sold to interstate
18carriers for hire for use as rolling stock moving in interstate
19commerce or to lessors under leases of one year or longer
20executed or in effect at the time of purchase by interstate
21carriers for hire for use as rolling stock moving in interstate
22commerce and equipment operated by a telecommunications
23provider, licensed as a common carrier by the Federal
24Communications Commission, which is permanently installed in
25or affixed to aircraft moving in interstate commerce.
26    (12-5) On and after July 1, 2003 and through June 30, 2004,

 

 

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

 

 

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1process of manufacturing or assembling tangible personal
2property for wholesale or retail sale or lease, whether the
3sale or lease is made directly by the manufacturer or by some
4other person, whether the materials used in the process are
5owned by the manufacturer or some other person, or whether the
6sale or lease is made apart from or as an incident to the
7seller's engaging in the service occupation of producing
8machines, tools, dies, jigs, patterns, gauges, or other similar
9items of no commercial value on special order for a particular
10purchaser.
11    (15) Proceeds of mandatory service charges separately
12stated on customers' bills for purchase and consumption of food
13and beverages, to the extent that the proceeds of the service
14charge are in fact turned over as tips or as a substitute for
15tips to the employees who participate directly in preparing,
16serving, hosting or cleaning up the food or beverage function
17with respect to which the service charge is imposed.
18    (16) Petroleum products sold to a purchaser if the seller
19is prohibited by federal law from charging tax to the
20purchaser.
21    (17) Tangible personal property sold to a common carrier by
22rail or motor that receives the physical possession of the
23property in Illinois and that transports the property, or
24shares with another common carrier in the transportation of the
25property, out of Illinois on a standard uniform bill of lading
26showing the seller of the property as the shipper or consignor

 

 

09800SB1801ham001- 51 -LRB098 04082 HLH 45778 a

1of the property to a destination outside Illinois, for use
2outside Illinois.
3    (18) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7    (19) 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    (20) 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    (21) Until July 1, 2003, and beginning again on the
22effective date of this amendatory Act of the 97th General
23Assembly and thereafter, coal and aggregate exploration,
24mining, offhighway hauling, processing, maintenance, and
25reclamation equipment, including replacement parts and
26equipment, and including equipment purchased for lease, but

 

 

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1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code.
3    (22) Fuel and petroleum products sold to or used by an air
4carrier, certified by the carrier to be used for consumption,
5shipment, or storage in the conduct of its business as an air
6common carrier, for a flight destined for or returning from a
7location or locations outside the United States without regard
8to previous or subsequent domestic stopovers.
9    (23) A transaction in which the purchase order is received
10by a florist who is located outside Illinois, but who has a
11florist located in Illinois deliver the property to the
12purchaser or the purchaser's donee in Illinois.
13    (24) Fuel consumed or used in the operation of ships,
14barges, or vessels that are used primarily in or for the
15transportation of property or the conveyance of persons for
16hire on rivers bordering on this State if the fuel is delivered
17by the seller to the purchaser's barge, ship, or vessel while
18it is afloat upon that bordering river.
19    (25) Except as provided in item (25-5) of this Section, a
20motor vehicle sold in this State to a nonresident even though
21the motor vehicle is delivered to the nonresident in this
22State, if the motor vehicle is not to be titled in this State,
23and if a drive-away permit is issued to the motor vehicle as
24provided in Section 3-603 of the Illinois Vehicle Code or if
25the nonresident purchaser has vehicle registration plates to
26transfer to the motor vehicle upon returning to his or her home

 

 

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1state. The issuance of the drive-away permit or having the
2out-of-state registration plates to be transferred is prima
3facie evidence that the motor vehicle will not be titled in
4this State.
5    (25-5) The exemption under item (25) does not apply if the
6state in which the motor vehicle will be titled does not allow
7a reciprocal exemption for a motor vehicle sold and delivered
8in that state to an Illinois resident but titled in Illinois.
9The tax collected under this Act on the sale of a motor vehicle
10in this State to a resident of another state that does not
11allow a reciprocal exemption shall be imposed at a rate equal
12to the state's rate of tax on taxable property in the state in
13which the purchaser is a resident, except that the tax shall
14not exceed the tax that would otherwise be imposed under this
15Act. At the time of the sale, the purchaser shall execute a
16statement, signed under penalty of perjury, of his or her
17intent to title the vehicle in the state in which the purchaser
18is a resident within 30 days after the sale and of the fact of
19the payment to the State of Illinois of tax in an amount
20equivalent to the state's rate of tax on taxable property in
21his or her state of residence and shall submit the statement to
22the appropriate tax collection agency in his or her state of
23residence. In addition, the retailer must retain a signed copy
24of the statement in his or her records. Nothing in this item
25shall be construed to require the removal of the vehicle from
26this state following the filing of an intent to title the

 

 

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1vehicle in the purchaser's state of residence if the purchaser
2titles the vehicle in his or her state of residence within 30
3days after the date of sale. The tax collected under this Act
4in accordance with this item (25-5) shall be proportionately
5distributed as if the tax were collected at the 6.25% general
6rate imposed under this Act.
7    (25-7) Beginning on July 1, 2007, no tax is imposed under
8this Act on the sale of an aircraft, as defined in Section 3 of
9the Illinois Aeronautics Act, if all of the following
10conditions are met:
11        (1) the aircraft leaves this State within 15 days after
12    the later of either the issuance of the final billing for
13    the sale of the aircraft, or the authorized approval for
14    return to service, completion of the maintenance record
15    entry, and completion of the test flight and ground test
16    for inspection, as required by 14 C.F.R. 91.407;
17        (2) the aircraft is not based or registered in this
18    State after the sale of the aircraft; and
19        (3) the seller retains in his or her books and records
20    and provides to the Department a signed and dated
21    certification from the purchaser, on a form prescribed by
22    the Department, certifying that the requirements of this
23    item (25-7) are met. The certificate must also include the
24    name and address of the purchaser, the address of the
25    location where the aircraft is to be titled or registered,
26    the address of the primary physical location of the

 

 

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1    aircraft, and other information that the Department may
2    reasonably require.
3    For purposes of this item (25-7):
4    "Based in this State" means hangared, stored, or otherwise
5used, excluding post-sale customizations as defined in this
6Section, for 10 or more days in each 12-month period
7immediately following the date of the sale of the aircraft.
8    "Registered in this State" means an aircraft registered
9with the Department of Transportation, Aeronautics Division,
10or titled or registered with the Federal Aviation
11Administration to an address located in this State.
12    This paragraph (25-7) is exempt from the provisions of
13Section 2-70.
14    (26) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (27) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (27) is exempt from the provisions
22of Section 2-70, and the exemption provided for under this item
23(27) applies for all periods beginning May 30, 1995, but no
24claim for credit or refund is allowed on or after January 1,
252008 (the effective date of Public Act 95-88) for such taxes
26paid during the period beginning May 30, 2000 and ending on

 

 

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

 

 

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1before December 31, 2004, personal property that is used in the
2performance of infrastructure repairs in this State, including
3but not limited to municipal roads and streets, access roads,
4bridges, sidewalks, waste disposal systems, water and sewer
5line extensions, water distribution and purification
6facilities, storm water drainage and retention facilities, and
7sewage treatment facilities, resulting from a State or
8federally declared disaster in Illinois or bordering Illinois
9when such repairs are initiated on facilities located in the
10declared disaster area within 6 months after the disaster.
11    (32) Beginning July 1, 1999, game or game birds sold at a
12"game breeding and hunting preserve area" as that term is used
13in the Wildlife Code. This paragraph is exempt from the
14provisions of Section 2-70.
15    (33) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the Department
19to be organized and operated exclusively for educational
20purposes. For purposes of this exemption, "a corporation,
21limited liability company, society, association, foundation,
22or institution organized and operated exclusively for
23educational purposes" means all tax-supported public schools,
24private schools that offer systematic instruction in useful
25branches of learning by methods common to public schools and
26that compare favorably in their scope and intensity with the

 

 

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1course of study presented in tax-supported schools, and
2vocational or technical schools or institutes organized and
3operated exclusively to provide a course of study of not less
4than 6 weeks duration and designed to prepare individuals to
5follow a trade or to pursue a manual, technical, mechanical,
6industrial, business, or commercial occupation.
7    (34) Beginning January 1, 2000, personal property,
8including food, purchased through fundraising events for the
9benefit of a public or private elementary or secondary school,
10a group of those schools, or one or more school districts if
11the events are sponsored by an entity recognized by the school
12district that consists primarily of volunteers and includes
13parents and teachers of the school children. This paragraph
14does not apply to fundraising events (i) for the benefit of
15private home instruction or (ii) for which the fundraising
16entity purchases the personal property sold at the events from
17another individual or entity that sold the property for the
18purpose of resale by the fundraising entity and that profits
19from the sale to the fundraising entity. This paragraph is
20exempt from the provisions of Section 2-70.
21    (35) Beginning January 1, 2000 and through December 31,
222001, new or used automatic vending machines that prepare and
23serve hot food and beverages, including coffee, soup, and other
24items, and replacement parts for these machines. Beginning
25January 1, 2002 and through June 30, 2003, machines and parts
26for machines used in commercial, coin-operated amusement and

 

 

09800SB1801ham001- 59 -LRB098 04082 HLH 45778 a

1vending business if a use or occupation tax is paid on the
2gross receipts derived from the use of the commercial,
3coin-operated amusement and vending machines. This paragraph
4is exempt from the provisions of Section 2-70.
5    (35-5) Beginning August 23, 2001 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 nonprescription medicines,
10drugs, medical appliances, and insulin, 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 a licensed facility as defined in
16the ID/DD Community Care Act or the Specialized Mental Health
17Rehabilitation Act.
18    (36) Beginning August 2, 2001, computers and
19communications equipment utilized for any hospital purpose and
20equipment used in the diagnosis, analysis, or treatment of
21hospital patients sold to a lessor who leases the equipment,
22under a lease of one year or longer executed or in effect at
23the time of the purchase, to a hospital that has been issued an
24active tax exemption identification number by the Department
25under Section 1g of this Act. This paragraph is exempt from the
26provisions of Section 2-70.

 

 

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1    (37) Beginning August 2, 2001, personal property sold to a
2lessor who leases the property, under a lease of one year or
3longer executed or in effect at the time of the purchase, to a
4governmental body that has been issued an active tax exemption
5identification number by the Department under Section 1g of
6this Act. This paragraph is exempt from the provisions of
7Section 2-70.
8    (38) Beginning on January 1, 2002 and through June 30,
92016, tangible personal property purchased from an Illinois
10retailer by a taxpayer engaged in centralized purchasing
11activities in Illinois who will, upon receipt of the property
12in Illinois, temporarily store the property in Illinois (i) for
13the purpose of subsequently transporting it outside this State
14for use or consumption thereafter solely outside this State or
15(ii) for the purpose of being processed, fabricated, or
16manufactured into, attached to, or incorporated into other
17tangible personal property to be transported outside this State
18and thereafter used or consumed solely outside this State. The
19Director of Revenue shall, pursuant to rules adopted in
20accordance with the Illinois Administrative Procedure Act,
21issue a permit to any taxpayer in good standing with the
22Department who is eligible for the exemption under this
23paragraph (38). The permit issued under this paragraph (38)
24shall authorize the holder, to the extent and in the manner
25specified in the rules adopted under this Act, to purchase
26tangible personal property from a retailer exempt from the

 

 

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1taxes imposed by this Act. Taxpayers shall maintain all
2necessary books and records to substantiate the use and
3consumption of all such tangible personal property outside of
4the State of Illinois.
5    (39) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued under
10Title IV of the Environmental Protection Act. This paragraph is
11exempt from the provisions of Section 2-70.
12    (40) Beginning January 1, 2010, materials, parts,
13equipment, components, and furnishings incorporated into or
14upon an aircraft as part of the modification, refurbishment,
15completion, replacement, repair, or maintenance of the
16aircraft. This exemption includes consumable supplies used in
17the modification, refurbishment, completion, replacement,
18repair, and maintenance of aircraft, but excludes any
19materials, parts, equipment, components, and consumable
20supplies used in the modification, replacement, repair, and
21maintenance of aircraft engines or power plants, whether such
22engines or power plants are installed or uninstalled upon any
23such aircraft. "Consumable supplies" include, but are not
24limited to, adhesive, tape, sandpaper, general purpose
25lubricants, cleaning solution, latex gloves, and protective
26films. This exemption applies only to the sale of qualifying

 

 

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1tangible personal property to persons who modify, refurbish,
2complete, replace, or maintain an aircraft and who those
3organizations that (i) hold an Air Agency Certificate and are
4empowered to operate an approved repair station by the Federal
5Aviation Administration, (ii) have a Class IV Rating, and (iii)
6conduct operations in accordance with Part 145 of the Federal
7Aviation Regulations. The exemption does not include aircraft
8operated by a commercial air carrier providing scheduled
9passenger air service pursuant to authority issued under Part
10121 or Part 129 of the Federal Aviation Regulations. The
11changes made to this paragraph (40) by this amendatory Act of
12the 98th General Assembly are declarative of existing law.
13    (41) Tangible personal property sold to a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt instruments
22issued by the public-facilities corporation in connection with
23the development of the municipal convention hall. This
24exemption includes existing public-facilities corporations as
25provided in Section 11-65-25 of the Illinois Municipal Code.
26This paragraph is exempt from the provisions of Section 2-70.

 

 

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1(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
296-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
37-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff.
41-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff.
57-9-12.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".