Illinois General Assembly - Full Text of HB2918
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Full Text of HB2918  98th General Assembly

HB2918enr 98TH GENERAL ASSEMBLY

  
  
  

 


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

 

 

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

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle of the first division, a motor vehicle
21of the second division that is a self-contained motor vehicle
22designed or permanently converted to provide living quarters
23for recreational, camping, or travel use, with direct walk
24through to the living quarters from the driver's seat, or a
25motor vehicle of the second division that is of the van
26configuration designed for the transportation of not less than

 

 

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

 

 

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

 

 

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1hosting or cleaning up the food or beverage function with
2respect to which the service charge is imposed.
3    (14) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (15) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (16) Coal Until July 1, 2003, and beginning again on the
18effective date of this amendatory Act of the 97th General
19Assembly and thereafter, coal and aggregate exploration,
20mining, offhighway hauling, processing, maintenance, and
21reclamation equipment, including replacement parts and
22equipment, and including equipment purchased for lease, but
23excluding motor vehicles required to be registered under the
24Illinois Vehicle Code. The changes made to this Section by
25Public Act 97-767 apply on and after July 1, 2003, but no claim
26for credit or refund is allowed on or after the effective date

 

 

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1of this amendatory Act of the 98th General Assembly for such
2taxes paid during the period beginning July 1, 2003 and ending
3on the effective date of this amendatory Act of the 98th
4General Assembly.
5    (17) Until July 1, 2003, distillation machinery and
6equipment, sold as a unit or kit, assembled or installed by the
7retailer, certified by the user to be used only for the
8production of ethyl alcohol that will be used for consumption
9as motor fuel or as a component of motor fuel for the personal
10use of the user, and not subject to sale or resale.
11    (18) Manufacturing and assembling machinery and equipment
12used primarily in the process of manufacturing or assembling
13tangible personal property for wholesale or retail sale or
14lease, whether that sale or lease is made directly by the
15manufacturer or by some other person, whether the materials
16used in the process are owned by the manufacturer or some other
17person, or whether that sale or lease is made apart from or as
18an incident to the seller's engaging in the service occupation
19of producing machines, tools, dies, jigs, patterns, gauges, or
20other similar items of no commercial value on special order for
21a particular purchaser.
22    (19) Personal property delivered to a purchaser or
23purchaser's donee inside Illinois when the purchase order for
24that personal property was received by a florist located
25outside Illinois who has a florist located inside Illinois
26deliver the personal property.

 

 

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1    (20) Semen used for artificial insemination of livestock
2for direct agricultural production.
3    (21) Horses, or interests in horses, registered with and
4meeting the requirements of any of the Arabian Horse Club
5Registry of America, Appaloosa Horse Club, American Quarter
6Horse Association, United States Trotting Association, or
7Jockey Club, as appropriate, used for purposes of breeding or
8racing for prizes. This item (21) is exempt from the provisions
9of Section 3-90, and the exemption provided for under this item
10(21) applies for all periods beginning May 30, 1995, but no
11claim for credit or refund is allowed on or after January 1,
122008 for such taxes paid during the period beginning May 30,
132000 and ending on January 1, 2008.
14    (22) Computers and communications equipment utilized for
15any hospital purpose and equipment used in the diagnosis,
16analysis, or treatment of hospital patients purchased by a
17lessor who leases the equipment, under a lease of one year or
18longer executed or in effect at the time the lessor would
19otherwise be subject to the tax imposed by this Act, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of the
22Retailers' Occupation Tax Act. If the equipment is leased in a
23manner that does not qualify for this exemption or is used in
24any other non-exempt manner, the lessor shall be liable for the
25tax imposed under this Act or the Service Use Tax Act, as the
26case may be, based on the fair market value of the property at

 

 

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

 

 

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

 

 

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1    (26) Beginning July 1, 1999, game or game birds purchased
2at a "game breeding and hunting preserve area" as that term is
3used in the Wildlife Code. This paragraph is exempt from the
4provisions of Section 3-90.
5    (27) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the Department
9to be organized and operated exclusively for educational
10purposes. For purposes of this exemption, "a corporation,
11limited liability company, society, association, foundation,
12or institution organized and operated exclusively for
13educational purposes" means all tax-supported public schools,
14private schools that offer systematic instruction in useful
15branches of learning by methods common to public schools and
16that compare favorably in their scope and intensity with the
17course of study presented in tax-supported schools, and
18vocational or technical schools or institutes organized and
19operated exclusively to provide a course of study of not less
20than 6 weeks duration and designed to prepare individuals to
21follow a trade or to pursue a manual, technical, mechanical,
22industrial, business, or commercial occupation.
23    (28) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

 

 

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1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 3-90.
11    (29) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and other
14items, and replacement parts for these machines. Beginning
15January 1, 2002 and through June 30, 2003, machines and parts
16for machines used in commercial, coin-operated amusement and
17vending business if a use or occupation tax is paid on the
18gross receipts derived from the use of the commercial,
19coin-operated amusement and vending machines. This paragraph
20is exempt from the provisions of Section 3-90.
21    (30) Beginning January 1, 2001 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft
24drinks, and food that has been prepared for immediate
25consumption) and prescription and nonprescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (36) Tangible personal property purchased by a
2public-facilities corporation, as described in Section
311-65-10 of the Illinois Municipal Code, for purposes of
4constructing or furnishing a municipal convention hall, but
5only if the legal title to the municipal convention hall is
6transferred to the municipality without any further
7consideration by or on behalf of the municipality at the time
8of the completion of the municipal convention hall or upon the
9retirement or redemption of any bonds or other debt instruments
10issued by the public-facilities corporation in connection with
11the development of the municipal convention hall. This
12exemption includes existing public-facilities corporations as
13provided in Section 11-65-25 of the Illinois Municipal Code.
14This paragraph is exempt from the provisions of Section 3-90.
15(Source: P.A. 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 10. The Service Use Tax Act is amended by changing
20Section 3-5 as follows:
 
21    (35 ILCS 110/3-5)
22    Sec. 3-5. Exemptions. Use of the following tangible
23personal property is exempt from the tax imposed by this Act:
24    (1) Personal property purchased from a corporation,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1photoprocessing, and including photoprocessing machinery and
2equipment purchased for lease.
3    (12) Coal Until July 1, 2003, and beginning again on the
4effective date of this amendatory Act of the 97th General
5Assembly and thereafter, coal and aggregate exploration,
6mining, offhighway hauling, processing, maintenance, and
7reclamation equipment, including replacement parts and
8equipment, and including equipment purchased for lease, but
9excluding motor vehicles required to be registered under the
10Illinois Vehicle Code. The changes made to this Section by
11Public Act 97-767 apply on and after July 1, 2003, but no claim
12for credit or refund is allowed on or after the effective date
13of this amendatory Act of the 98th General Assembly for such
14taxes paid during the period beginning July 1, 2003 and ending
15on the effective date of this amendatory Act of the 98th
16General Assembly.
17    (13) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (14) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (14) is exempt from the provisions
25of Section 3-75, and the exemption provided for under this item
26(14) applies for all periods beginning May 30, 1995, but no

 

 

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1claim for credit or refund is allowed on or after the effective
2date of this amendatory Act of the 95th General Assembly for
3such taxes paid during the period beginning May 30, 2000 and
4ending on the effective date of this amendatory Act of the 95th
5General Assembly.
6    (15) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. If the equipment is leased in a
15manner that does not qualify for this exemption or is used in
16any other non-exempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Use Tax Act, as the case may
18be, based on the fair market value of the property at the time
19the non-qualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that purports
21to reimburse that lessor for the tax imposed by this Act or the
22Use Tax Act, as the case may be, if the tax has not been paid by
23the lessor. If a lessor improperly collects any such amount
24from the lessee, the lessee shall have a legal right to claim a
25refund of that amount from the lessor. If, however, that amount
26is not refunded to the lessee for any reason, the lessor is

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 3-75.
11(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
1296-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
137-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff.
148-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
 
15    Section 15. The Service Occupation Tax Act is amended by
16changing Section 3-5 as follows:
 
17    (35 ILCS 115/3-5)
18    Sec. 3-5. Exemptions. The following tangible personal
19property is exempt from the tax imposed by this Act:
20    (1) Personal property sold by a corporation, society,
21association, foundation, institution, or organization, other
22than a limited liability company, that is organized and
23operated as a not-for-profit service enterprise for the benefit
24of 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    (2) Personal property purchased by a not-for-profit
4Illinois county fair association for use in conducting,
5operating, or promoting the county fair.
6    (3) Personal property purchased by any not-for-profit arts
7or cultural organization that establishes, by proof required by
8the Department by rule, that it has received an exemption under
9Section 501(c)(3) of the Internal Revenue Code and that is
10organized and operated primarily for the presentation or
11support of arts or cultural programming, activities, or
12services. These organizations include, but are not limited to,
13music and dramatic arts organizations such as symphony
14orchestras and theatrical groups, arts and cultural service
15organizations, local arts councils, visual arts organizations,
16and media arts organizations. On and after the effective date
17of this amendatory Act of the 92nd General Assembly, however,
18an entity otherwise eligible for this exemption shall not make
19tax-free purchases unless it has an active identification
20number issued by the Department.
21    (4) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (5) Until July 1, 2003 and beginning again on September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

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1equipment, including repair and replacement parts, both new and
2used, and including that manufactured on special order or
3purchased for lease, certified by the purchaser to be used
4primarily for graphic arts production. Equipment includes
5chemicals or chemicals acting as catalysts but only if the
6chemicals or chemicals acting as catalysts effect a direct and
7immediate change upon a graphic arts product.
8    (6) Personal property sold by a teacher-sponsored student
9organization affiliated with an elementary or secondary school
10located in Illinois.
11    (7) Farm machinery and equipment, both new and used,
12including that manufactured on special order, certified by the
13purchaser to be used primarily for production agriculture or
14State or federal agricultural programs, including individual
15replacement parts for the machinery and equipment, including
16machinery and equipment purchased for lease, and including
17implements of husbandry defined in Section 1-130 of the
18Illinois Vehicle Code, farm machinery and agricultural
19chemical and fertilizer spreaders, and nurse wagons required to
20be registered under Section 3-809 of the Illinois Vehicle Code,
21but excluding other motor vehicles required to be registered
22under the Illinois Vehicle Code. Horticultural polyhouses or
23hoop houses used for propagating, growing, or overwintering
24plants shall be considered farm machinery and equipment under
25this item (7). Agricultural chemical tender tanks and dry boxes
26shall include units sold separately from a motor vehicle

 

 

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1required to be licensed and units sold mounted on a motor
2vehicle required to be licensed if the selling price of the
3tender is separately stated.
4    Farm machinery and equipment shall include precision
5farming equipment that is installed or purchased to be
6installed on farm machinery and equipment including, but not
7limited to, tractors, harvesters, sprayers, planters, seeders,
8or spreaders. Precision farming equipment includes, but is not
9limited to, soil testing sensors, computers, monitors,
10software, global positioning and mapping systems, and other
11such equipment.
12    Farm machinery and equipment also includes computers,
13sensors, software, and related equipment used primarily in the
14computer-assisted operation of production agriculture
15facilities, equipment, and activities such as, but not limited
16to, the collection, monitoring, and correlation of animal and
17crop data for the purpose of formulating animal diets and
18agricultural chemicals. This item (7) is exempt from the
19provisions of Section 3-55.
20    (8) Fuel and petroleum products sold to or used by an air
21common carrier, certified by the carrier to be used for
22consumption, shipment, or storage in the conduct of its
23business as an air common carrier, for a flight destined for or
24returning from a location or locations outside the United
25States without regard to previous or subsequent domestic
26stopovers.

 

 

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

 

 

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1reclamation equipment, including replacement parts and
2equipment, and including equipment purchased for lease, but
3excluding motor vehicles required to be registered under the
4Illinois Vehicle Code. The changes made to this Section by
5Public Act 97-767 apply on and after July 1, 2003, but no claim
6for credit or refund is allowed on or after the effective date
7of this amendatory Act of the 98th General Assembly for such
8taxes paid during the period beginning July 1, 2003 and ending
9on the effective date of this amendatory Act of the 98th
10General Assembly.
11    (13) Beginning January 1, 1992 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 non-prescription 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    (14) Semen used for artificial insemination of livestock
25for direct agricultural production.
26    (15) Horses, or interests in horses, registered with and

 

 

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1meeting the requirements of any of the Arabian Horse Club
2Registry of America, Appaloosa Horse Club, American Quarter
3Horse Association, United States Trotting Association, or
4Jockey Club, as appropriate, used for purposes of breeding or
5racing for prizes. This item (15) is exempt from the provisions
6of Section 3-55, and the exemption provided for under this item
7(15) applies for all periods beginning May 30, 1995, but no
8claim for credit or refund is allowed on or after January 1,
92008 (the effective date of Public Act 95-88) for such taxes
10paid during the period beginning May 30, 2000 and ending on
11January 1, 2008 (the effective date of Public Act 95-88).
12    (16) Computers and communications equipment utilized for
13any hospital purpose and equipment used in the diagnosis,
14analysis, or treatment of hospital patients sold to a lessor
15who leases the equipment, under a lease of one year or longer
16executed or in effect at the time of the purchase, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of the
19Retailers' Occupation Tax Act.
20    (17) Personal property sold to a lessor who leases the
21property, under a lease of one year or longer executed or in
22effect at the time of the purchase, to a governmental body that
23has been issued an active tax exemption identification number
24by the Department under Section 1g of the Retailers' Occupation
25Tax Act.
26    (18) Beginning with taxable years ending on or after

 

 

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

 

 

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11-146 of the Illinois Vehicle Code, that is donated to a
2corporation, limited liability company, society, association,
3foundation, or institution that is determined by the Department
4to be organized and operated exclusively for educational
5purposes. For purposes of this exemption, "a corporation,
6limited liability company, society, association, foundation,
7or institution organized and operated exclusively for
8educational purposes" means all tax-supported public schools,
9private schools that offer systematic instruction in useful
10branches of learning by methods common to public schools and
11that compare favorably in their scope and intensity with the
12course of study presented in tax-supported schools, and
13vocational or technical schools or institutes organized and
14operated exclusively to provide a course of study of not less
15than 6 weeks duration and designed to prepare individuals to
16follow a trade or to pursue a manual, technical, mechanical,
17industrial, business, or commercial occupation.
18    (22) Beginning January 1, 2000, personal property,
19including food, purchased through fundraising events for the
20benefit of a public or private elementary or secondary school,
21a group of those schools, or one or more school districts if
22the events are sponsored by an entity recognized by the school
23district that consists primarily of volunteers and includes
24parents and teachers of the school children. This paragraph
25does not apply to fundraising events (i) for the benefit of
26private home instruction or (ii) for which the fundraising

 

 

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-55.
6    (23) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and other
9items, and replacement parts for these machines. Beginning
10January 1, 2002 and through June 30, 2003, machines and parts
11for machines used in commercial, coin-operated amusement and
12vending business if a use or occupation tax is paid on the
13gross receipts derived from the use of the commercial,
14coin-operated amusement and vending machines. This paragraph
15is exempt from the provisions of Section 3-55.
16    (24) Beginning on the effective date of this amendatory Act
17of the 92nd General Assembly, computers and communications
18equipment utilized for any hospital purpose and equipment used
19in the diagnosis, analysis, or treatment of hospital patients
20sold to a lessor who leases the equipment, under a lease of one
21year or longer executed or in effect at the time of the
22purchase, to a hospital that has been issued an active tax
23exemption identification number by the Department under
24Section 1g of the Retailers' Occupation Tax Act. This paragraph
25is exempt from the provisions of Section 3-55.
26    (25) Beginning on the effective date of this amendatory Act

 

 

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1of the 92nd General Assembly, 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 the
6Retailers' Occupation Tax Act. This paragraph is exempt from
7the provisions of Section 3-55.
8    (26) 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 (26). The permit issued under this paragraph (26)
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    (27) 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 3-55.
12    (28) Tangible personal property sold to a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 3-55.
26    (29) Beginning January 1, 2010, materials, parts,

 

 

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1equipment, components, and furnishings incorporated into or
2upon an aircraft as part of the modification, refurbishment,
3completion, replacement, repair, or maintenance of the
4aircraft. This exemption includes consumable supplies used in
5the modification, refurbishment, completion, replacement,
6repair, and maintenance of aircraft, but excludes any
7materials, parts, equipment, components, and consumable
8supplies used in the modification, replacement, repair, and
9maintenance of aircraft engines or power plants, whether such
10engines or power plants are installed or uninstalled upon any
11such aircraft. "Consumable supplies" include, but are not
12limited to, adhesive, tape, sandpaper, general purpose
13lubricants, cleaning solution, latex gloves, and protective
14films. This exemption applies only to those organizations that
15(i) hold an Air Agency Certificate and are empowered to operate
16an approved repair station by the Federal Aviation
17Administration, (ii) have a Class IV Rating, and (iii) conduct
18operations in accordance with Part 145 of the Federal Aviation
19Regulations. The exemption does not include aircraft operated
20by a commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations.
23(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10;
2496-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff.
257-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff.
261-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff.

 

 

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

 

 

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

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new and
3used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product.
9    (5) A motor vehicle of the first division, a motor vehicle
10of the second division that is a self contained motor vehicle
11designed or permanently converted to provide living quarters
12for recreational, camping, or travel use, with direct walk
13through access to the living quarters from the driver's seat,
14or a motor vehicle of the second division that is of the van
15configuration designed for the transportation of not less than
167 nor more than 16 passengers, as defined in Section 1-146 of
17the Illinois Vehicle Code, that is used for automobile renting,
18as defined in the Automobile Renting Occupation and Use Tax
19Act. This paragraph is exempt from the provisions of Section
202-70.
21    (6) Personal property sold by a teacher-sponsored student
22organization affiliated with an elementary or secondary school
23located in Illinois.
24    (7) Until July 1, 2003, proceeds of that portion of the
25selling price of a passenger car the sale of which is subject
26to the Replacement Vehicle Tax.

 

 

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

 

 

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1corporation, society, association, foundation, or institution
2organized and operated exclusively for charitable, religious,
3or educational purposes, or to a not-for-profit corporation,
4society, association, foundation, institution, or organization
5that has no compensated officers or employees and that is
6organized and operated primarily for the recreation of persons
755 years of age or older. A limited liability company may
8qualify for the exemption under this paragraph only if the
9limited liability company is organized and operated
10exclusively for educational purposes. On and after July 1,
111987, however, no entity otherwise eligible for this exemption
12shall make tax-free purchases unless it has an active
13identification number issued by the Department.
14    (12) Tangible personal property sold to interstate
15carriers for hire for use as rolling stock moving in interstate
16commerce or to lessors under leases of one year or longer
17executed or in effect at the time of purchase by interstate
18carriers for hire for use as rolling stock moving in interstate
19commerce and equipment operated by a telecommunications
20provider, licensed as a common carrier by the Federal
21Communications Commission, which is permanently installed in
22or affixed to aircraft moving in interstate commerce.
23    (12-5) On and after July 1, 2003 and through June 30, 2004,
24motor vehicles of the second division with a gross vehicle
25weight in excess of 8,000 pounds that are subject to the
26commercial distribution fee imposed under Section 3-815.1 of

 

 

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

 

 

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

 

 

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1coinage issued by the State of Illinois, the government of the
2United States of America, or the government of any foreign
3country, and bullion.
4    (19) Until July 1 2003, oil field exploration, drilling,
5and production equipment, including (i) rigs and parts of rigs,
6rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
7tubular goods, including casing and drill strings, (iii) pumps
8and pump-jack units, (iv) storage tanks and flow lines, (v) any
9individual replacement part for oil field exploration,
10drilling, and production equipment, and (vi) machinery and
11equipment purchased for lease; but excluding motor vehicles
12required to be registered under the Illinois Vehicle Code.
13    (20) Photoprocessing machinery and equipment, including
14repair and replacement parts, both new and used, including that
15manufactured on special order, certified by the purchaser to be
16used primarily for photoprocessing, and including
17photoprocessing machinery and equipment purchased for lease.
18    (21) Coal Until July 1, 2003, and beginning again on the
19effective date of this amendatory Act of the 97th General
20Assembly and thereafter, coal and aggregate exploration,
21mining, offhighway hauling, processing, maintenance, and
22reclamation equipment, including replacement parts and
23equipment, and including equipment purchased for lease, but
24excluding motor vehicles required to be registered under the
25Illinois Vehicle Code. The changes made to this Section by
26Public Act 97-767 apply on and after July 1, 2003, but no claim

 

 

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1for credit or refund is allowed on or after the effective date
2of this amendatory Act of the 98th General Assembly for such
3taxes paid during the period beginning July 1, 2003 and ending
4on the effective date of this amendatory Act of the 98th
5General Assembly.
6    (22) Fuel and petroleum products sold to or used by an air
7carrier, certified by the carrier to be used for consumption,
8shipment, or storage in the conduct of its business as an air
9common carrier, for a flight destined for or returning from a
10location or locations outside the United States without regard
11to previous or subsequent domestic stopovers.
12    (23) A transaction in which the purchase order is received
13by a florist who is located outside Illinois, but who has a
14florist located in Illinois deliver the property to the
15purchaser or the purchaser's donee in Illinois.
16    (24) Fuel consumed or used in the operation of ships,
17barges, or vessels that are used primarily in or for the
18transportation of property or the conveyance of persons for
19hire on rivers bordering on this State if the fuel is delivered
20by the seller to the purchaser's barge, ship, or vessel while
21it is afloat upon that bordering river.
22    (25) Except as provided in item (25-5) of this Section, a
23motor vehicle sold in this State to a nonresident even though
24the motor vehicle is delivered to the nonresident in this
25State, if the motor vehicle is not to be titled in this State,
26and if a drive-away permit is issued to the motor vehicle as

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1who reside within the declared disaster area.
2    (31) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is used in the
5performance of infrastructure repairs in this State, including
6but not limited to municipal roads and streets, access roads,
7bridges, sidewalks, waste disposal systems, water and sewer
8line extensions, water distribution and purification
9facilities, storm water drainage and retention facilities, and
10sewage treatment facilities, resulting from a State or
11federally declared disaster in Illinois or bordering Illinois
12when such repairs are initiated on facilities located in the
13declared disaster area within 6 months after the disaster.
14    (32) Beginning July 1, 1999, game or game birds sold at a
15"game breeding and hunting preserve area" as that term is used
16in the Wildlife Code. This paragraph is exempt from the
17provisions of Section 2-70.
18    (33) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the Department
22to be organized and operated exclusively for educational
23purposes. For purposes of this exemption, "a corporation,
24limited liability company, society, association, foundation,
25or institution organized and operated exclusively for
26educational purposes" means all tax-supported public schools,

 

 

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1private schools that offer systematic instruction in useful
2branches of learning by methods common to public schools and
3that compare favorably in their scope and intensity with the
4course of study presented in tax-supported schools, and
5vocational or technical schools or institutes organized and
6operated exclusively to provide a course of study of not less
7than 6 weeks duration and designed to prepare individuals to
8follow a trade or to pursue a manual, technical, mechanical,
9industrial, business, or commercial occupation.
10    (34) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 2-70.
24    (35) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and other

 

 

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

 

 

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1active tax exemption identification number by the Department
2under Section 1g of this Act. This paragraph is exempt from the
3provisions of Section 2-70.
4    (37) Beginning August 2, 2001, personal property sold to a
5lessor who leases the property, under a lease of one year or
6longer executed or in effect at the time of the purchase, to a
7governmental body that has been issued an active tax exemption
8identification number by the Department under Section 1g of
9this Act. This paragraph is exempt from the provisions of
10Section 2-70.
11    (38) Beginning on January 1, 2002 and through June 30,
122016, tangible personal property purchased from an Illinois
13retailer by a taxpayer engaged in centralized purchasing
14activities in Illinois who will, upon receipt of the property
15in Illinois, temporarily store the property in Illinois (i) for
16the purpose of subsequently transporting it outside this State
17for use or consumption thereafter solely outside this State or
18(ii) for the purpose of being processed, fabricated, or
19manufactured into, attached to, or incorporated into other
20tangible personal property to be transported outside this State
21and thereafter used or consumed solely outside this State. The
22Director of Revenue shall, pursuant to rules adopted in
23accordance with the Illinois Administrative Procedure Act,
24issue a permit to any taxpayer in good standing with the
25Department who is eligible for the exemption under this
26paragraph (38). The permit issued under this paragraph (38)

 

 

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

 

 

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1limited to, adhesive, tape, sandpaper, general purpose
2lubricants, cleaning solution, latex gloves, and protective
3films. This exemption applies only to those organizations that
4(i) hold an Air Agency Certificate and are empowered to operate
5an approved repair station by the Federal Aviation
6Administration, (ii) have a Class IV Rating, and (iii) conduct
7operations in accordance with Part 145 of the Federal Aviation
8Regulations. The exemption does not include aircraft operated
9by a commercial air carrier providing scheduled passenger air
10service pursuant to authority issued under Part 121 or Part 129
11of the Federal Aviation Regulations.
12    (41) Tangible personal property sold to a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 2-70.
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 99. Effective date. This Act takes effect upon
6becoming law.