Full Text of HB0412 93rd General Assembly
HB0412ham001 93RD GENERAL ASSEMBLY
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| AMENDMENT TO HOUSE BILL 412
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| AMENDMENT NO. ____ . Amend House Bill 412 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing
Section 215 as follows:
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| (35 ILCS 5/215)
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| Sec. 215. Transportation Employee Credit.
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| (a) For each taxable year beginning on or after January 1, | 9 |
| 2004 and on or before the effective date of this amendatory Act | 10 |
| of the 93rd General Assembly , a qualified
employer shall be | 11 |
| allowed a credit against the tax imposed by subsections (a)
and | 12 |
| (b) of Section 201 of this Act in the amount of $50 for each | 13 |
| eligible
employee
employed by the taxpayer as of the last day | 14 |
| of the taxable year.
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| (a-5) A qualified employer who receives a refund of the | 16 |
| commercial distribution fee paid under Section 3-815.1 of the | 17 |
| Illinois Vehicle Code is not eligible for the tax credit under | 18 |
| this Section. | 19 |
| (b) For purposes of this Section, "qualified employer" | 20 |
| means:
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| (1) any employer who pays a commercial distribution fee | 22 |
| under Section
3-815.1 of the Illinois Vehicle Code during | 23 |
| the taxable year; or
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| (2) any employer who, as of the end of the taxable |
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| year, has one or more
employees whose compensation is | 2 |
| subject to tax only by the employee's state of
residence | 3 |
| pursuant to 49 U.S.C 14503(a)(1).
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| (c) For purposes of this Section, "employee" includes an | 5 |
| individual who is
treated as an employee of the taxpayer under | 6 |
| Section 401(c) of the Internal
Revenue Code and whose actual | 7 |
| assigned duties are such that, if the individual
were a | 8 |
| common-law employee performing such duties in 2 or more states, | 9 |
| the
individual's compensation would be subject to tax only by | 10 |
| the individual's
state of residence pursuant to 49 U.S.C. | 11 |
| 14503(a)(1).
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| (d) An employee is an "eligible employee" only if all of | 13 |
| the following
criteria are met:
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| (1) The employee is an operator of a motor vehicle;
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| (2) The employee's compensation, pursuant to 49 U.S.C. | 16 |
| 14503(a)(1), is
subject to tax only by the employee's state | 17 |
| of residence, or would be subject
to tax only by the | 18 |
| employee's state of residence if the employee's
actual | 19 |
| duties were performed in 2 or more states;
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| (3) As of the end of the taxable year for which the | 21 |
| credit is claimed, the
employee is a resident of this State | 22 |
| for purposes of this Act and 49 U.S.C.
14503(a)(1); and
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| (4) The employee is a full-time employee working 30 or | 24 |
| more hours per week
for 180 consecutive days; provided that | 25 |
| such 180-day period may be completed
after the end of the | 26 |
| taxable year for which the credit under this Section is
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| claimed.
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| (e) For partners, shareholders of subchapter S | 29 |
| corporations, and owners of
limited liability companies, if the | 30 |
| limited liability company is treated as a
partnership for | 31 |
| purposes of federal and State income taxation, there shall be
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| allowed a credit under this Section to be determined in | 33 |
| accordance with the
determination of income and distributive | 34 |
| share of income under Sections 702 and
704 and subchapter S of |
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| the Internal Revenue Code.
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| (f) Any credit allowed under this Section which is unused | 3 |
| in the year the
credit is earned may be carried forward to each | 4 |
| of the 5 taxable years
following the year for which the credit | 5 |
| is first computed until it is used.
This credit shall be | 6 |
| applied first to the earliest year for which there is a
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| liability. If there is a credit under this Section from more | 8 |
| than one tax year
that is available to offset a liability, the | 9 |
| earliest credit arising under this
Section shall be applied | 10 |
| first.
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| (g) (Blank)
This Section is exempt from the provisions of | 12 |
| Section 250
of this Act .
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| (h) The Department of Revenue shall promulgate such rules | 14 |
| and regulations as
may be deemed necessary to carry out the | 15 |
| purposes of this Section.
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| (Source: P.A. 93-23, eff. 6-20-03.)
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| Section 10. The Use Tax Act is amended by changing | 18 |
| Sections 3-5 and 3-61 as
follows:
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| (35 ILCS 105/3-5)
(from Ch. 120, par. 439.3-5)
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| Sec. 3-5. Exemptions. Use of the following tangible | 21 |
| personal property
is exempt from the tax imposed by this Act:
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| (1) Personal property purchased from a corporation, | 23 |
| society, association,
foundation, institution, or | 24 |
| organization, other than a limited liability
company, that is | 25 |
| organized and operated as a not-for-profit service enterprise
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| for the benefit of persons 65 years of age or older if the | 27 |
| personal property
was not purchased by the enterprise for the | 28 |
| purpose of resale by the
enterprise.
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| (2) Personal property purchased by a not-for-profit | 30 |
| Illinois county
fair association for use in conducting, | 31 |
| operating, or promoting the
county fair.
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| (3) Personal property purchased by a not-for-profit
arts or |
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| cultural organization that establishes, by proof required by | 2 |
| the
Department by
rule, that it has received an exemption under | 3 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 4 |
| organized and operated primarily for the
presentation
or | 5 |
| support of arts or cultural programming, activities, or | 6 |
| services. These
organizations include, but are not limited to, | 7 |
| music and dramatic arts
organizations such as symphony | 8 |
| orchestras and theatrical groups, arts and
cultural service | 9 |
| organizations, local arts councils, visual arts organizations,
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| and media arts organizations.
On and after the effective date | 11 |
| of this amendatory Act of the 92nd General
Assembly, however, | 12 |
| an entity otherwise eligible for this exemption shall not
make | 13 |
| tax-free purchases unless it has an active identification | 14 |
| number issued by
the Department.
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| (4) Personal property purchased by a governmental body, by | 16 |
| a
corporation, society, association, foundation, or | 17 |
| institution organized and
operated exclusively for charitable, | 18 |
| religious, or educational purposes, or
by a not-for-profit | 19 |
| corporation, society, association, foundation,
institution, or | 20 |
| organization that has no compensated officers or employees
and | 21 |
| that is organized and operated primarily for the recreation of | 22 |
| persons
55 years of age or older. A limited liability company | 23 |
| may qualify for the
exemption under this paragraph only if the | 24 |
| limited liability company is
organized and operated | 25 |
| exclusively for educational purposes. On and after July
1, | 26 |
| 1987, however, no entity otherwise eligible for this exemption | 27 |
| shall make
tax-free purchases unless it has an active exemption | 28 |
| identification number
issued by the Department.
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| (5) Until July 1, 2003, a passenger car that is a | 30 |
| replacement vehicle to
the extent that the
purchase price of | 31 |
| the car is subject to the Replacement Vehicle Tax.
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| (6) Until July 1, 2003, graphic arts machinery and | 33 |
| equipment, including
repair and replacement
parts, both new and | 34 |
| used, and including that manufactured on special order,
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| certified by the purchaser to be used primarily for graphic | 2 |
| arts production,
and including machinery and equipment | 3 |
| purchased for lease.
Equipment includes chemicals or chemicals | 4 |
| acting as catalysts but only if
the
chemicals or chemicals | 5 |
| acting as catalysts effect a direct and immediate change
upon a | 6 |
| graphic arts product.
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| (7) Farm chemicals.
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| (8) Legal tender, currency, medallions, or gold or silver | 9 |
| coinage issued by
the State of Illinois, the government of the | 10 |
| United States of America, or the
government of any foreign | 11 |
| country, and bullion.
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| (9) Personal property purchased from a teacher-sponsored | 13 |
| student
organization affiliated with an elementary or | 14 |
| secondary school located in
Illinois.
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| (10) A motor vehicle of the first division, a motor vehicle | 16 |
| of the
second division that is a self-contained motor vehicle | 17 |
| designed or
permanently converted to provide living quarters | 18 |
| for recreational, camping,
or travel use, with direct walk | 19 |
| through to the living quarters from the
driver's seat, or a | 20 |
| motor vehicle of the second division that is of the
van | 21 |
| configuration designed for the transportation of not less than | 22 |
| 7 nor
more than 16 passengers, as defined in Section 1-146 of | 23 |
| the Illinois
Vehicle Code, that is used for automobile renting, | 24 |
| as defined in the
Automobile Renting Occupation and Use Tax | 25 |
| Act.
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| (11) Farm machinery and equipment, both new and used,
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| including that manufactured on special order, certified by the | 28 |
| purchaser
to be used primarily for production agriculture or | 29 |
| State or federal
agricultural programs, including individual | 30 |
| replacement parts for
the machinery and equipment, including | 31 |
| machinery and equipment
purchased
for lease,
and including | 32 |
| implements of husbandry defined in Section 1-130 of
the | 33 |
| Illinois Vehicle Code, farm machinery and agricultural | 34 |
| chemical and
fertilizer spreaders, and nurse wagons required to |
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| be registered
under Section 3-809 of the Illinois Vehicle Code,
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| but excluding other motor
vehicles required to be
registered | 3 |
| under the Illinois Vehicle Code.
Horticultural polyhouses or | 4 |
| hoop houses used for propagating, growing, or
overwintering | 5 |
| plants shall be considered farm machinery and equipment under
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| this item (11).
Agricultural chemical tender tanks and dry | 7 |
| boxes shall include units sold
separately from a motor vehicle | 8 |
| required to be licensed and units sold mounted
on a motor | 9 |
| vehicle required to be licensed if the selling price of the | 10 |
| tender
is separately stated.
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| Farm machinery and equipment shall include precision | 12 |
| farming equipment
that is
installed or purchased to be | 13 |
| installed on farm machinery and equipment
including, but not | 14 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 15 |
| or spreaders.
Precision farming equipment includes, but is not | 16 |
| limited to, soil testing
sensors, computers, monitors, | 17 |
| software, global positioning
and mapping systems, and other | 18 |
| such equipment.
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| Farm machinery and equipment also includes computers, | 20 |
| sensors, software, and
related equipment used primarily in the
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| computer-assisted operation of production agriculture | 22 |
| facilities, equipment,
and
activities such as, but not limited | 23 |
| to,
the collection, monitoring, and correlation of
animal and | 24 |
| crop data for the purpose of
formulating animal diets and | 25 |
| agricultural chemicals. This item (11) is exempt
from the | 26 |
| provisions of
Section 3-90.
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| (12) Fuel and petroleum products sold to or used by an air | 28 |
| common
carrier, certified by the carrier to be used for | 29 |
| consumption, shipment, or
storage in the conduct of its | 30 |
| business as an air common carrier, for a
flight destined for or | 31 |
| returning from a location or locations
outside the United | 32 |
| States without regard to previous or subsequent domestic
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| stopovers.
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| (13) Proceeds of mandatory service charges separately
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| stated on customers' bills for the purchase and consumption of | 2 |
| food and
beverages purchased at retail from a retailer, to the | 3 |
| extent that the proceeds
of the service charge are in fact | 4 |
| turned over as tips or as a substitute
for tips to the | 5 |
| employees who participate directly in preparing, serving,
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| hosting or cleaning up the food or beverage function with | 7 |
| respect to which
the service charge is imposed.
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| (14) Until July 1, 2003, oil field exploration, drilling, | 9 |
| and production
equipment,
including (i) rigs and parts of rigs, | 10 |
| rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 11 |
| tubular goods,
including casing and drill strings, (iii) pumps | 12 |
| and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 13 |
| individual replacement part for oil
field exploration, | 14 |
| drilling, and production equipment, and (vi) machinery and
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| equipment purchased
for lease; but excluding motor vehicles | 16 |
| required to be registered under the
Illinois Vehicle Code.
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| (15) Photoprocessing machinery and equipment, including | 18 |
| repair and
replacement parts, both new and used, including that
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| manufactured on special order, certified by the purchaser to be | 20 |
| used
primarily for photoprocessing, and including
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| photoprocessing machinery and equipment purchased for lease.
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| (16) Until July 1, 2003, coal exploration, mining, | 23 |
| offhighway hauling,
processing, maintenance, and reclamation | 24 |
| equipment,
including replacement parts and equipment, and
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| including equipment purchased for lease, but excluding motor
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| vehicles required to be registered under the Illinois Vehicle | 27 |
| Code.
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| (17) Until July 1, 2003, distillation machinery and | 29 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 30 |
| retailer, certified by the user to be used
only for the | 31 |
| production of ethyl alcohol that will be used for consumption
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| as motor fuel or as a component of motor fuel for the personal | 33 |
| use of the
user, and not subject to sale or resale.
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| (18) Manufacturing and assembling machinery and equipment |
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| used
primarily in the process of manufacturing or assembling | 2 |
| tangible
personal property for wholesale or retail sale or | 3 |
| lease, whether that sale
or lease is made directly by the | 4 |
| manufacturer or by some other person,
whether the materials | 5 |
| used in the process are
owned by the manufacturer or some other | 6 |
| person, or whether that sale or
lease is made apart from or as | 7 |
| an incident to the seller's engaging in
the service occupation | 8 |
| of producing machines, tools, dies, jigs,
patterns, gauges, or | 9 |
| other similar items of no commercial value on
special order for | 10 |
| a particular purchaser.
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| (19) Personal property delivered to a purchaser or | 12 |
| purchaser's donee
inside Illinois when the purchase order for | 13 |
| that personal property was
received by a florist located | 14 |
| outside Illinois who has a florist located
inside Illinois | 15 |
| deliver the personal property.
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| (20) Semen used for artificial insemination of livestock | 17 |
| for direct
agricultural production.
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| (21) Horses, or interests in horses, registered with and | 19 |
| meeting the
requirements of any of the
Arabian Horse Club | 20 |
| Registry of America, Appaloosa Horse Club, American Quarter
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| Horse Association, United States
Trotting Association, or | 22 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 23 |
| racing for prizes.
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| (22) Computers and communications equipment utilized for | 25 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 26 |
| analysis, or treatment of hospital patients purchased by a | 27 |
| lessor who leases
the
equipment, under a lease of one year or | 28 |
| longer executed or in effect at the
time the lessor would | 29 |
| otherwise be subject to the tax imposed by this Act, to a
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| hospital
that has been issued an active tax exemption | 31 |
| identification number by
the
Department under Section 1g of the | 32 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 33 |
| manner that does not qualify for
this exemption or is used in | 34 |
| any other non-exempt manner, the lessor
shall be liable for the
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| tax imposed under this Act or the Service Use Tax Act, as the | 2 |
| case may
be, based on the fair market value of the property at | 3 |
| the time the
non-qualifying use occurs. No lessor shall collect | 4 |
| or attempt to collect an
amount (however
designated) that | 5 |
| purports to reimburse that lessor for the tax imposed by this
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| Act or the Service Use Tax Act, as the case may be, if the tax | 7 |
| has not been
paid by the lessor. If a lessor improperly | 8 |
| collects any such amount from the
lessee, the lessee shall have | 9 |
| a legal right to claim a refund of that amount
from the lessor. | 10 |
| If, however, that amount is not refunded to the lessee for
any | 11 |
| reason, the lessor is liable to pay that amount to the | 12 |
| Department.
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| (23) Personal property purchased by a lessor who leases the
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| property, under
a
lease of
one year or longer executed or in | 15 |
| effect at the time
the lessor would otherwise be subject to the | 16 |
| tax imposed by this Act,
to a governmental body
that has been | 17 |
| issued an active sales tax exemption identification number by | 18 |
| the
Department under Section 1g of the Retailers' Occupation | 19 |
| Tax Act.
If the
property is leased in a manner that does not | 20 |
| qualify for
this exemption
or used in any other non-exempt | 21 |
| manner, the lessor shall be liable for the
tax imposed under | 22 |
| this Act or the Service Use Tax Act, as the case may
be, based | 23 |
| on the fair market value of the property at the time the
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| non-qualifying use occurs. No lessor shall collect or attempt | 25 |
| to collect an
amount (however
designated) that purports to | 26 |
| reimburse that lessor for the tax imposed by this
Act or the | 27 |
| Service Use Tax Act, as the case may be, if the tax has not been
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| paid by the lessor. If a lessor improperly collects any such | 29 |
| amount from the
lessee, the lessee shall have a legal right to | 30 |
| claim a refund of that amount
from the lessor. If, however, | 31 |
| that amount is not refunded to the lessee for
any reason, the | 32 |
| lessor is liable to pay that amount to the Department.
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| (24) Beginning with taxable years ending on or after | 34 |
| December
31, 1995
and
ending with taxable years ending on or |
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| before December 31, 2004,
personal property that is
donated for | 2 |
| disaster relief to be used in a State or federally declared
| 3 |
| disaster area in Illinois or bordering Illinois by a | 4 |
| manufacturer or retailer
that is registered in this State to a | 5 |
| corporation, society, association,
foundation, or institution | 6 |
| that has been issued a sales tax exemption
identification | 7 |
| number by the Department that assists victims of the disaster
| 8 |
| who reside within the declared disaster area.
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| (25) Beginning with taxable years ending on or after | 10 |
| December
31, 1995 and
ending with taxable years ending on or | 11 |
| before December 31, 2004, personal
property that is used in the | 12 |
| performance of infrastructure repairs in this
State, including | 13 |
| but not limited to municipal roads and streets, access roads,
| 14 |
| bridges, sidewalks, waste disposal systems, water and sewer | 15 |
| line extensions,
water distribution and purification | 16 |
| facilities, storm water drainage and
retention facilities, and | 17 |
| sewage treatment facilities, resulting from a State
or | 18 |
| federally declared disaster in Illinois or bordering Illinois | 19 |
| when such
repairs are initiated on facilities located in the | 20 |
| declared disaster area
within 6 months after the disaster.
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| (26) Beginning July 1, 1999, game or game birds purchased | 22 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 23 |
| game hunting area" as those terms are
used in
the Wildlife Code | 24 |
| or at a hunting enclosure approved through rules adopted by
the
| 25 |
| Department of Natural Resources. This paragraph is exempt from | 26 |
| the provisions
of
Section 3-90.
| 27 |
| (27) A motor vehicle, as that term is defined in Section | 28 |
| 1-146
of the
Illinois
Vehicle Code, that is donated to a | 29 |
| corporation, limited liability company,
society, association, | 30 |
| foundation, or institution that is determined by the
Department | 31 |
| to be organized and operated exclusively for educational | 32 |
| purposes.
For purposes of this exemption, "a corporation, | 33 |
| limited liability company,
society, association, foundation, | 34 |
| or institution organized and operated
exclusively for |
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| educational purposes" means all tax-supported public schools,
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| private schools that offer systematic instruction in useful | 3 |
| branches of
learning by methods common to public schools and | 4 |
| that compare favorably in
their scope and intensity with the | 5 |
| course of study presented in tax-supported
schools, and | 6 |
| vocational or technical schools or institutes organized and
| 7 |
| operated exclusively to provide a course of study of not less | 8 |
| than 6 weeks
duration and designed to prepare individuals to | 9 |
| follow a trade or to pursue a
manual, technical, mechanical, | 10 |
| industrial, business, or commercial
occupation.
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| (28) Beginning January 1, 2000, personal property, | 12 |
| including
food,
purchased through fundraising
events for the | 13 |
| benefit of
a public or private elementary or
secondary school, | 14 |
| a group of those schools, or one or more school
districts if | 15 |
| the events are
sponsored by an entity recognized by the school | 16 |
| district that consists
primarily of volunteers and includes
| 17 |
| parents and teachers of the school children. This paragraph | 18 |
| does not apply
to fundraising
events (i) for the benefit of | 19 |
| private home instruction or (ii)
for which the fundraising | 20 |
| entity purchases the personal property sold at
the events from | 21 |
| another individual or entity that sold the property for the
| 22 |
| purpose of resale by the fundraising entity and that
profits | 23 |
| from the sale to the
fundraising entity. This paragraph is | 24 |
| exempt
from the provisions
of Section 3-90.
| 25 |
| (29) Beginning January 1, 2000 and through December 31, | 26 |
| 2001, new or
used automatic vending
machines that prepare and | 27 |
| serve hot food and beverages, including coffee, soup,
and
other | 28 |
| items, and replacement parts for these machines.
Beginning | 29 |
| January 1,
2002 and through June 30, 2003, machines and parts | 30 |
| for machines used in
commercial, coin-operated amusement and | 31 |
| vending business if a use or occupation
tax is paid on the | 32 |
| gross receipts derived from the use of the commercial,
| 33 |
| coin-operated amusement and vending machines.
This
paragraph
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| is exempt from the provisions of Section 3-90.
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| (30) Food for human consumption that is to be consumed off | 2 |
| the premises
where it is sold (other than alcoholic beverages, | 3 |
| soft drinks, and food that
has been prepared for immediate | 4 |
| consumption) and prescription and
nonprescription medicines, | 5 |
| drugs, medical appliances, and insulin, urine
testing | 6 |
| materials, syringes, and needles used by diabetics, for human | 7 |
| use, when
purchased for use by a person receiving medical | 8 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 9 |
| resides in a licensed long-term care facility,
as defined in | 10 |
| the Nursing Home Care Act.
| 11 |
| (31) Beginning on
the effective date of this amendatory Act | 12 |
| of the 92nd General Assembly,
computers and communications | 13 |
| equipment
utilized for any hospital purpose and equipment used | 14 |
| in the diagnosis,
analysis, or treatment of hospital patients | 15 |
| purchased by a lessor who leases
the equipment, under a lease | 16 |
| of one year or longer executed or in effect at the
time the | 17 |
| lessor would otherwise be subject to the tax imposed by this | 18 |
| Act, to a
hospital that has been issued an active tax exemption | 19 |
| identification number by
the Department under Section 1g of the | 20 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 21 |
| manner that does not qualify for this exemption or is
used in | 22 |
| any other nonexempt manner, the lessor shall be liable for the | 23 |
| tax
imposed under this Act or the Service Use Tax Act, as the | 24 |
| case may be, based on
the fair market value of the property at | 25 |
| the time the nonqualifying use
occurs. No lessor shall collect | 26 |
| or attempt to collect an amount (however
designated) that | 27 |
| purports to reimburse that lessor for the tax imposed by this
| 28 |
| Act or the Service Use Tax Act, as the case may be, if the tax | 29 |
| has not been
paid by the lessor. If a lessor improperly | 30 |
| collects any such amount from the
lessee, the lessee shall have | 31 |
| a legal right to claim a refund of that amount
from the lessor. | 32 |
| If, however, that amount is not refunded to the lessee for
any | 33 |
| reason, the lessor is liable to pay that amount to the | 34 |
| Department.
This paragraph is exempt from the provisions of |
|
|
|
09300HB0412ham001 |
- 13 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| Section 3-90.
| 2 |
| (32) Beginning on
the effective date of this amendatory Act | 3 |
| of the 92nd General Assembly,
personal property purchased by a | 4 |
| lessor who leases the property,
under a lease of one year or | 5 |
| longer executed or in effect at the time the
lessor would | 6 |
| otherwise be subject to the tax imposed by this Act, to a
| 7 |
| governmental body that has been issued an active sales tax | 8 |
| exemption
identification number by the Department under | 9 |
| Section 1g of the Retailers'
Occupation Tax Act. If the | 10 |
| property is leased in a manner that does not
qualify for this | 11 |
| exemption or used in any other nonexempt manner, the lessor
| 12 |
| shall be liable for the tax imposed under this Act or the | 13 |
| Service Use Tax Act,
as the case may be, based on the fair | 14 |
| market value of the property at the time
the nonqualifying use | 15 |
| occurs. No lessor shall collect or attempt to collect
an amount | 16 |
| (however designated) that purports to reimburse that lessor for | 17 |
| the
tax imposed by this Act or the Service Use Tax Act, as the | 18 |
| case may be, if the
tax has not been paid by the lessor. If a | 19 |
| lessor improperly collects any such
amount from the lessee, the | 20 |
| lessee shall have a legal right to claim a refund
of that | 21 |
| amount from the lessor. If, however, that amount is not | 22 |
| refunded to
the lessee for any reason, the lessor is liable to | 23 |
| pay that amount to the
Department. This paragraph is exempt | 24 |
| from the provisions of Section 3-90.
| 25 |
| (33) On and after July 1, 2003 and until the effective date | 26 |
| of this amendatory Act of the 93rd General Assembly , the use in
| 27 |
| this State of motor vehicles of
the second division with a | 28 |
| gross vehicle weight in excess of 8,000 pounds and
that are | 29 |
| subject to the commercial distribution fee imposed under | 30 |
| Section
3-815.1 of the Illinois Vehicle Code. This exemption | 31 |
| applies to repair and
replacement parts added after the initial | 32 |
| purchase of such a motor vehicle if
that motor
vehicle is used | 33 |
| in a manner that would qualify for the rolling stock exemption
| 34 |
| otherwise provided for in this Act.
|
|
|
|
09300HB0412ham001 |
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LRB093 04932 SJM 46174 a |
|
| 1 |
| (Source: P.A. 92-35, eff.
7-1-01; 92-227, eff. 8-2-01; 92-337, | 2 |
| eff. 8-10-01; 92-484, eff. 8-23-01;
92-651, eff. 7-11-02; | 3 |
| 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; revised
9-11-03.)
| 4 |
| (35 ILCS 105/3-61)
| 5 |
| Sec. 3-61. Motor vehicles; use as rolling stock definition. | 6 |
| Through
June 30, 2003 and beginning again on the effective date | 7 |
| of this amendatory Act of the 93rd General Assembly , "use
as
| 8 |
| rolling stock moving
in
interstate commerce" in subsections (b) | 9 |
| and (c) of Section 3-55 means for motor
vehicles, as defined in | 10 |
| Section 1-146 of the Illinois Vehicle Code, and
trailers, as | 11 |
| defined in Section 1-209 of the Illinois Vehicle Code, when on | 12 |
| 15
or more occasions in a 12-month period the motor vehicle and | 13 |
| trailer has
carried
persons or
property for hire in interstate | 14 |
| commerce, even just between points in Illinois,
if the motor | 15 |
| vehicle and trailer transports persons whose journeys or | 16 |
| property
whose shipments originate or terminate outside | 17 |
| Illinois. This definition
applies to all property purchased for | 18 |
| the purpose of being
attached to those motor vehicles or | 19 |
| trailers as a part thereof.
| 20 |
| On and after July 1, 2003 and until the effective date of | 21 |
| this amendatory Act of the 93rd General Assembly , "use as | 22 |
| rolling stock
moving in interstate
commerce" in
paragraphs (b) | 23 |
| and (c) of Section 3-55 occurs for motor vehicles, as defined | 24 |
| in
Section 1-146 of the Illinois Vehicle Code, when during a | 25 |
| 12-month period
the
rolling stock has carried persons or | 26 |
| property for hire in interstate commerce
for 51% of
its total | 27 |
| trips and transports persons whose journeys or property whose
| 28 |
| shipments
originate or terminate outside Illinois. On and after | 29 |
| July 1, 2003 and until the effective date of this amendatory | 30 |
| Act of the 93rd General Assembly, trips that are only between | 31 |
| points
in
Illinois shall
not be counted as interstate trips | 32 |
| when calculating whether the tangible
personal property
| 33 |
| qualifies for the exemption but such trips shall be included in |
|
|
|
09300HB0412ham001 |
- 15 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| total trips
taken.
| 2 |
| (Source: P.A. 93-23, eff. 6-20-03.)
| 3 |
| Section 15. The Service Use Tax Act is amended by changing | 4 |
| Sections 2 and
3-51 as follows:
| 5 |
| (35 ILCS 110/2)
(from Ch. 120, par. 439.32)
| 6 |
| Sec. 2. "Use" means the exercise by any person of any right | 7 |
| or power
over tangible personal property incident to the | 8 |
| ownership of that
property, but does not include the sale or | 9 |
| use for demonstration by him
of that property in any form as | 10 |
| tangible personal property in the
regular course of business.
| 11 |
| "Use" does not mean the interim
use of
tangible personal | 12 |
| property nor the physical incorporation of tangible
personal | 13 |
| property, as an ingredient or constituent, into other tangible
| 14 |
| personal property, (a) which is sold in the regular course of | 15 |
| business
or (b) which the person incorporating such ingredient | 16 |
| or constituent
therein has undertaken at the time of such | 17 |
| purchase to cause to be
transported in interstate commerce to | 18 |
| destinations outside the State of
Illinois.
| 19 |
| "Purchased from a serviceman" means the acquisition of the | 20 |
| ownership
of, or title to, tangible personal property through a | 21 |
| sale of service.
| 22 |
| "Purchaser" means any person who, through a sale of | 23 |
| service, acquires
the ownership of, or title to, any tangible | 24 |
| personal property.
| 25 |
| "Cost price" means the consideration paid by the serviceman | 26 |
| for a
purchase valued in money, whether paid in money or | 27 |
| otherwise, including
cash, credits and services, and shall be | 28 |
| determined without any
deduction on account of the supplier's | 29 |
| cost of the property sold or on
account of any other expense | 30 |
| incurred by the supplier. When a serviceman
contracts out part | 31 |
| or all of the services required in his sale of service,
it | 32 |
| shall be presumed that the cost price to the serviceman of the |
|
|
|
09300HB0412ham001 |
- 16 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| property
transferred to him or her by his or her subcontractor | 2 |
| is equal to 50% of
the subcontractor's charges to the | 3 |
| serviceman in the absence of proof of
the consideration paid by | 4 |
| the subcontractor for the purchase of such property.
| 5 |
| "Selling price" means the consideration for a sale valued | 6 |
| in money
whether received in money or otherwise, including | 7 |
| cash, credits and
service, and shall be determined without any | 8 |
| deduction on account of the
serviceman's cost of the property | 9 |
| sold, the cost of materials used,
labor or service cost or any | 10 |
| other expense whatsoever, but does not
include interest or | 11 |
| finance charges which appear as separate items on
the bill of | 12 |
| sale or sales contract nor charges that are added to prices
by | 13 |
| sellers on account of the seller's duty to collect, from the
| 14 |
| purchaser, the tax that is imposed by this Act.
| 15 |
| "Department" means the Department of Revenue.
| 16 |
| "Person" means any natural individual, firm, partnership,
| 17 |
| association, joint stock company, joint venture, public or | 18 |
| private
corporation, limited liability company, and any | 19 |
| receiver, executor, trustee,
guardian or other representative | 20 |
| appointed by order of any court.
| 21 |
| "Sale of service" means any transaction except:
| 22 |
| (1) a retail sale of tangible personal property taxable | 23 |
| under the
Retailers' Occupation Tax Act or under the Use | 24 |
| Tax Act.
| 25 |
| (2) a sale of tangible personal property for the | 26 |
| purpose of resale
made in compliance with Section 2c of the | 27 |
| Retailers' Occupation Tax Act.
| 28 |
| (3) except as hereinafter provided, a sale or transfer | 29 |
| of tangible
personal property as an incident to the | 30 |
| rendering of service for or by
any governmental body, or | 31 |
| for or by any corporation, society,
association, | 32 |
| foundation or institution organized and operated
| 33 |
| exclusively for charitable, religious or educational | 34 |
| purposes or any
not-for-profit corporation, society, |
|
|
|
09300HB0412ham001 |
- 17 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| association, foundation,
institution or organization which | 2 |
| has no compensated officers or
employees and which is | 3 |
| organized and operated primarily for the
recreation of | 4 |
| persons 55 years of age or older. A limited liability | 5 |
| company
may qualify for the exemption under this paragraph | 6 |
| only if the limited
liability company is organized and | 7 |
| operated exclusively for educational
purposes.
| 8 |
| (4) a sale or transfer of tangible personal
property as | 9 |
| an incident to the
rendering of service for interstate | 10 |
| carriers for hire for use as rolling stock
moving in | 11 |
| interstate commerce or by lessors under a lease of one year | 12 |
| or
longer, executed or in effect at the time of purchase of | 13 |
| personal property, to
interstate carriers for hire for use | 14 |
| as rolling stock moving in interstate
commerce so long as | 15 |
| so used by such interstate carriers for hire, and equipment
| 16 |
| operated by a telecommunications provider, licensed as a | 17 |
| common carrier by the
Federal Communications Commission, | 18 |
| which is permanently installed in or affixed
to aircraft | 19 |
| moving in interstate commerce.
| 20 |
| (4a) a sale or transfer of tangible personal
property | 21 |
| as an incident
to the rendering of service for owners, | 22 |
| lessors, or shippers of tangible
personal property which is | 23 |
| utilized by interstate carriers for hire for
use as rolling | 24 |
| stock moving in interstate commerce so long as so used by
| 25 |
| interstate carriers for hire, and equipment operated by a
| 26 |
| telecommunications provider, licensed as a common carrier | 27 |
| by the Federal
Communications Commission, which is | 28 |
| permanently installed in or affixed to
aircraft moving in | 29 |
| interstate commerce.
| 30 |
| (4a-5) on and after July 1, 2003 and until the | 31 |
| effective date of this amendatory Act of the 93rd General | 32 |
| Assembly , a sale or
transfer of a motor vehicle
of
the
| 33 |
| second division with a gross vehicle weight in excess of | 34 |
| 8,000 pounds as an
incident to the rendering of service if |
|
|
|
09300HB0412ham001 |
- 18 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| that motor
vehicle is subject
to the commercial | 2 |
| distribution fee imposed under Section 3-815.1 of the
| 3 |
| Illinois Vehicle
Code. This exemption applies to repair and | 4 |
| replacement parts added after the
initial
purchase of such | 5 |
| a motor vehicle if that motor vehicle is used in a manner | 6 |
| that
would
qualify for the rolling stock exemption | 7 |
| otherwise provided for in this Act.
| 8 |
| (5) a sale or transfer of machinery and equipment used | 9 |
| primarily in the
process of the manufacturing or | 10 |
| assembling, either in an existing, an expanded
or a new | 11 |
| manufacturing facility, of tangible personal property for | 12 |
| wholesale or
retail sale or lease, whether such sale or | 13 |
| lease is made directly by the
manufacturer or by some other | 14 |
| person, whether the materials used in the process
are owned | 15 |
| by the manufacturer or some other person, or whether such | 16 |
| sale or
lease is made apart from or as an incident to the | 17 |
| seller's engaging in a
service occupation and the | 18 |
| applicable tax is a Service Use Tax or Service
Occupation | 19 |
| Tax, rather than Use Tax or Retailers' Occupation Tax.
| 20 |
| (5a) the repairing, reconditioning or remodeling, for | 21 |
| a
common carrier by rail, of tangible personal property | 22 |
| which belongs to such
carrier for hire, and as to which | 23 |
| such carrier receives the physical possession
of the | 24 |
| repaired, reconditioned or remodeled item of tangible | 25 |
| personal property
in Illinois, and which such carrier | 26 |
| transports, or shares with another common
carrier in the | 27 |
| transportation of such property, out of Illinois on a | 28 |
| standard
uniform bill of lading showing the person who | 29 |
| repaired, reconditioned or
remodeled the property to a | 30 |
| destination outside Illinois, for use outside
Illinois.
| 31 |
| (5b) a sale or transfer of tangible personal property | 32 |
| which is produced by
the seller thereof on special order in | 33 |
| such a way as to have made the
applicable tax the Service | 34 |
| Occupation Tax or the Service Use Tax, rather than
the |
|
|
|
09300HB0412ham001 |
- 19 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| Retailers' Occupation Tax or the Use Tax, for an interstate | 2 |
| carrier by rail
which receives the physical possession of | 3 |
| such property in Illinois, and which
transports such | 4 |
| property, or shares with another common carrier in the
| 5 |
| transportation of such property, out of Illinois on a | 6 |
| standard uniform bill of
lading showing the seller of the | 7 |
| property as the shipper or consignor of such
property to a | 8 |
| destination outside Illinois, for use outside Illinois.
| 9 |
| (6) until July 1, 2003, a sale or transfer of | 10 |
| distillation machinery
and equipment, sold
as a unit or kit | 11 |
| and assembled or installed by the retailer, which
machinery | 12 |
| and equipment is certified by the user to be used only for | 13 |
| the
production of ethyl alcohol that will be used for | 14 |
| consumption as motor fuel
or as a component of motor fuel | 15 |
| for the personal use of such user and not
subject to sale | 16 |
| or resale.
| 17 |
| (7) at the election of any serviceman not required to | 18 |
| be
otherwise registered as a retailer under Section 2a of | 19 |
| the Retailers'
Occupation Tax Act, made for each fiscal | 20 |
| year sales
of service in which the aggregate annual cost | 21 |
| price of tangible
personal property transferred as an | 22 |
| incident to the sales of service is
less than 35%, or 75% | 23 |
| in the case of servicemen transferring prescription
drugs | 24 |
| or servicemen engaged in graphic arts production, of the | 25 |
| aggregate
annual total gross receipts from all sales of | 26 |
| service. The purchase of
such tangible personal property by | 27 |
| the serviceman shall be subject to tax
under the Retailers' | 28 |
| Occupation Tax Act and the Use Tax Act.
However, if a
| 29 |
| primary serviceman who has made the election described in | 30 |
| this paragraph
subcontracts service work to a secondary | 31 |
| serviceman who has also made the
election described in this | 32 |
| paragraph, the primary serviceman does not
incur a Use Tax | 33 |
| liability if the secondary serviceman (i) has paid or will | 34 |
| pay
Use
Tax on his or her cost price of any tangible |
|
|
|
09300HB0412ham001 |
- 20 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| personal property transferred
to the primary serviceman | 2 |
| and (ii) certifies that fact in writing to the
primary
| 3 |
| serviceman.
| 4 |
| Tangible personal property transferred incident to the | 5 |
| completion of a
maintenance agreement is exempt from the tax | 6 |
| imposed pursuant to this Act.
| 7 |
| Exemption (5) also includes machinery and equipment used in | 8 |
| the general
maintenance or repair of such exempt machinery and | 9 |
| equipment or for in-house
manufacture of exempt machinery and | 10 |
| equipment. For the purposes of exemption
(5), each of these | 11 |
| terms shall have the following meanings: (1) "manufacturing
| 12 |
| process" shall mean the production of any article of tangible | 13 |
| personal
property, whether such article is a finished product | 14 |
| or an article for use in
the process of manufacturing or | 15 |
| assembling a different article of tangible
personal property, | 16 |
| by procedures commonly regarded as manufacturing,
processing, | 17 |
| fabricating, or refining which changes some existing
material | 18 |
| or materials into a material with a different form, use or
| 19 |
| name. In relation to a recognized integrated business composed | 20 |
| of a
series of operations which collectively constitute | 21 |
| manufacturing, or
individually constitute manufacturing | 22 |
| operations, the manufacturing
process shall be deemed to | 23 |
| commence with the first operation or stage of
production in the | 24 |
| series, and shall not be deemed to end until the
completion of | 25 |
| the final product in the last operation or stage of
production | 26 |
| in the series; and further, for purposes of exemption (5),
| 27 |
| photoprocessing is deemed to be a manufacturing process of | 28 |
| tangible
personal property for wholesale or retail sale; (2) | 29 |
| "assembling process" shall
mean the production of any article | 30 |
| of tangible personal property, whether such
article is a | 31 |
| finished product or an article for use in the process of
| 32 |
| manufacturing or assembling a different article of tangible | 33 |
| personal
property, by the combination of existing materials in | 34 |
| a manner commonly
regarded as assembling which results in a |
|
|
|
09300HB0412ham001 |
- 21 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| material of a different form,
use or name; (3) "machinery" | 2 |
| shall mean major mechanical machines or
major components of | 3 |
| such machines contributing to a manufacturing or
assembling | 4 |
| process; and (4) "equipment" shall include any independent
| 5 |
| device or tool separate from any machinery but essential to an
| 6 |
| integrated manufacturing or assembly process; including | 7 |
| computers
used primarily in a manufacturer's computer
assisted | 8 |
| design, computer assisted manufacturing (CAD/CAM) system;
or | 9 |
| any subunit or assembly comprising a component of any machinery | 10 |
| or
auxiliary, adjunct or attachment parts of machinery, such as | 11 |
| tools, dies,
jigs, fixtures, patterns and molds; or any parts | 12 |
| which require periodic
replacement in the course of normal | 13 |
| operation; but shall not include hand
tools.
Equipment includes | 14 |
| chemicals or chemicals acting as catalysts but only if the
| 15 |
| chemicals or chemicals acting as catalysts effect a direct and | 16 |
| immediate change
upon a
product being manufactured or assembled | 17 |
| for wholesale or retail sale or
lease.
The purchaser of such | 18 |
| machinery and equipment who has an active
resale registration | 19 |
| number shall furnish such number to the seller at the
time of | 20 |
| purchase. The user of such machinery and equipment and tools
| 21 |
| without an active resale registration number shall prepare a | 22 |
| certificate of
exemption for each transaction stating facts | 23 |
| establishing the exemption for
that transaction, which | 24 |
| certificate shall be available to the Department
for inspection | 25 |
| or audit. The Department shall prescribe the form of the
| 26 |
| certificate.
| 27 |
| Any informal rulings, opinions or letters issued by the | 28 |
| Department in
response to an inquiry or request for any opinion | 29 |
| from any person
regarding the coverage and applicability of | 30 |
| exemption (5) to specific
devices shall be published, | 31 |
| maintained as a public record, and made
available for public | 32 |
| inspection and copying. If the informal ruling,
opinion or | 33 |
| letter contains trade secrets or other confidential
| 34 |
| information, where possible the Department shall delete such |
|
|
|
09300HB0412ham001 |
- 22 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| information
prior to publication. Whenever such informal | 2 |
| rulings, opinions, or
letters contain any policy of general | 3 |
| applicability, the Department
shall formulate and adopt such | 4 |
| policy as a rule in accordance with the
provisions of the | 5 |
| Illinois Administrative Procedure Act.
| 6 |
| On and after July 1, 1987, no entity otherwise eligible | 7 |
| under exemption
(3) of this Section shall make tax free | 8 |
| purchases unless it has an active
exemption identification | 9 |
| number issued by the Department.
| 10 |
| The purchase, employment and transfer of such tangible | 11 |
| personal
property as newsprint and ink for the primary purpose | 12 |
| of conveying news
(with or without other information) is not a | 13 |
| purchase, use or sale of
service or of tangible personal | 14 |
| property within the meaning of this Act.
| 15 |
| "Serviceman" means any person who is engaged in the | 16 |
| occupation of
making sales of service.
| 17 |
| "Sale at retail" means "sale at retail" as defined in the | 18 |
| Retailers'
Occupation Tax Act.
| 19 |
| "Supplier" means any person who makes sales of tangible | 20 |
| personal
property to servicemen for the purpose of resale as an | 21 |
| incident to a
sale of service.
| 22 |
| "Serviceman maintaining a place of business in this State", | 23 |
| or any
like term, means and includes any serviceman:
| 24 |
| 1. having or maintaining within this State, directly or | 25 |
| by a
subsidiary, an office, distribution house, sales | 26 |
| house, warehouse or
other place of business, or any agent | 27 |
| or other representative operating
within this State under | 28 |
| the authority of the serviceman or its
subsidiary, | 29 |
| irrespective of whether such place of business or agent or
| 30 |
| other representative is located here permanently or | 31 |
| temporarily, or
whether such serviceman or subsidiary is | 32 |
| licensed to do business in this
State;
| 33 |
| 2. soliciting orders for tangible personal property by | 34 |
| means of a
telecommunication or television shopping system |
|
|
|
09300HB0412ham001 |
- 23 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| (which utilizes toll free
numbers) which is intended by the | 2 |
| retailer to be broadcast by cable
television or other means | 3 |
| of broadcasting, to consumers located in this State;
| 4 |
| 3. pursuant to a contract with a broadcaster or | 5 |
| publisher located in this
State, soliciting orders for | 6 |
| tangible personal property by means of advertising
which is | 7 |
| disseminated primarily to consumers located in this State | 8 |
| and only
secondarily to bordering jurisdictions;
| 9 |
| 4. soliciting orders for tangible personal property by | 10 |
| mail if the
solicitations are substantial and recurring and | 11 |
| if the retailer benefits
from any banking, financing, debt | 12 |
| collection, telecommunication, or
marketing activities | 13 |
| occurring in this State or benefits from the location
in | 14 |
| this State of authorized installation, servicing, or | 15 |
| repair facilities;
| 16 |
| 5. being owned or controlled by the same interests | 17 |
| which own or
control any retailer engaging in business in | 18 |
| the same or similar line of
business in this State;
| 19 |
| 6. having a franchisee or licensee operating under its | 20 |
| trade name if
the franchisee or licensee is required to | 21 |
| collect the tax under this Section;
| 22 |
| 7. pursuant to a contract with a cable television | 23 |
| operator located in
this State, soliciting orders for | 24 |
| tangible personal property by means of
advertising which is | 25 |
| transmitted or distributed over a cable television
system | 26 |
| in this State; or
| 27 |
| 8. engaging in activities in Illinois, which | 28 |
| activities in the
state in which the supply business | 29 |
| engaging in such activities is located
would constitute | 30 |
| maintaining a place of business in that state.
| 31 |
| (Source: P.A. 92-484, eff. 8-23-01; 93-23, eff. 6-20-03; 93-24, | 32 |
| eff.
6-20-03; revised 8-21-03.)
| 33 |
| (35 ILCS 110/3-51)
|
|
|
|
09300HB0412ham001 |
- 24 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| Sec. 3-51. Motor vehicles; use as rolling stock definition. | 2 |
| Through
June 30, 2003 and beginning again on the effective date | 3 |
| of this amendatory Act of the 93rd General Assembly , "use
as
| 4 |
| rolling stock moving
in
interstate commerce" in subsection (b) | 5 |
| of Section 3-45 means for motor
vehicles, as defined in Section | 6 |
| 1-46 of the Illinois Vehicle Code, and
trailers, as defined in | 7 |
| Section 1-209 of the Illinois Vehicle Code, when on 15
or more
| 8 |
| occasions in a 12-month period the motor vehicle and trailer | 9 |
| has carried
persons
or property
for hire in interstate | 10 |
| commerce, even just between points in Illinois, if the
motor | 11 |
| vehicle and trailer transports persons whose journeys or | 12 |
| property
whose shipments originate or terminate outside | 13 |
| Illinois. This definition
applies to all property purchased for | 14 |
| the purpose of being attached to those
motor
vehicles or | 15 |
| trailers as a part thereof.
| 16 |
| On and after July 1, 2003 and until the effective date of | 17 |
| this amendatory Act of the 93rd General Assembly , "use as | 18 |
| rolling stock
moving in interstate
commerce" in
paragraphs (4) | 19 |
| and (4a) of the definition of "sale of service" in Section 2
| 20 |
| and subsection (b) of Section 3-45 occurs for motor vehicles, | 21 |
| as defined in
Section 1-146 of the Illinois Vehicle Code, when
| 22 |
| during a 12-month period the rolling stock has carried persons | 23 |
| or property for
hire in
interstate commerce for 51% of its | 24 |
| total trips and transports persons whose
journeys or
property | 25 |
| whose shipments originate or terminate outside Illinois. On and | 26 |
| after July 1, 2003 and until the effective date of this | 27 |
| amendatory Act of the 93rd General Assembly, trips that
are | 28 |
| only
between points in Illinois shall not be counted as | 29 |
| interstate trips when
calculating whether
the tangible | 30 |
| personal property qualifies for the exemption but such trips | 31 |
| shall
be included
in total trips taken.
| 32 |
| (Source: P.A. 93-23, eff. 6-20-03.)
| 33 |
| Section 20. The Service Occupation Tax Act is amended by |
|
|
|
09300HB0412ham001 |
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LRB093 04932 SJM 46174 a |
|
| 1 |
| changing Sections 2
and 2d as follows:
| 2 |
| (35 ILCS 115/2)
(from Ch. 120, par. 439.102)
| 3 |
| Sec. 2. "Transfer" means any transfer of the title to | 4 |
| property or of
the ownership of property whether or not the | 5 |
| transferor retains title as
security for the payment of amounts | 6 |
| due him from the transferee.
| 7 |
| "Cost Price" means the consideration paid by the serviceman | 8 |
| for a
purchase valued in money, whether paid in money or | 9 |
| otherwise, including
cash, credits and services, and shall be | 10 |
| determined without any deduction
on account of the supplier's | 11 |
| cost of the property sold or on account of any
other expense | 12 |
| incurred by the supplier. When a serviceman contracts out
part | 13 |
| or all of the services required in his sale of service, it | 14 |
| shall be
presumed that the cost price to the serviceman of the | 15 |
| property
transferred to him by his or her subcontractor is | 16 |
| equal to 50% of the
subcontractor's charges to the serviceman | 17 |
| in the absence of proof of the
consideration paid by the | 18 |
| subcontractor for the purchase of such
property.
| 19 |
| "Department" means the Department of Revenue.
| 20 |
| "Person" means any natural individual, firm, partnership, | 21 |
| association, joint
stock company, joint venture, public or | 22 |
| private corporation, limited liability
company, and any | 23 |
| receiver, executor, trustee, guardian or other representative
| 24 |
| appointed by order of any court.
| 25 |
| "Sale of Service" means any transaction except:
| 26 |
| (a) A retail sale of tangible personal property taxable | 27 |
| under the Retailers'
Occupation Tax Act or under the Use Tax | 28 |
| Act.
| 29 |
| (b) A sale of tangible personal property for the purpose of | 30 |
| resale made in
compliance with Section 2c of the Retailers' | 31 |
| Occupation Tax Act.
| 32 |
| (c) Except as hereinafter provided, a sale or transfer of | 33 |
| tangible personal
property as an incident to the rendering of |
|
|
|
09300HB0412ham001 |
- 26 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| service for or by any governmental
body or for or by any | 2 |
| corporation, society, association, foundation or
institution | 3 |
| organized and operated exclusively for charitable, religious | 4 |
| or
educational purposes or any not-for-profit corporation, | 5 |
| society, association,
foundation, institution or organization | 6 |
| which has no compensated officers or
employees and which is | 7 |
| organized and operated primarily for the recreation of
persons | 8 |
| 55 years of age or older. A limited liability company may | 9 |
| qualify for
the exemption under this paragraph only if the | 10 |
| limited liability company is
organized and operated | 11 |
| exclusively for educational purposes.
| 12 |
| (d) A sale or transfer of tangible personal
property
as an | 13 |
| incident to the
rendering of service for interstate carriers | 14 |
| for hire for use as rolling stock
moving in interstate commerce | 15 |
| or lessors under leases of one year or longer,
executed or in | 16 |
| effect at the time of purchase, to interstate carriers for hire
| 17 |
| for use as rolling stock moving in interstate commerce, and | 18 |
| equipment operated
by a telecommunications provider, licensed | 19 |
| as a common
carrier by the Federal Communications Commission, | 20 |
| which is permanently
installed in or affixed to aircraft moving | 21 |
| in interstate commerce.
| 22 |
| (d-1) A sale or transfer of tangible personal
property as | 23 |
| an incident to
the rendering of service for owners, lessors or | 24 |
| shippers of tangible personal
property which is utilized by | 25 |
| interstate carriers for hire for use as rolling
stock moving in | 26 |
| interstate commerce, and equipment operated
by a | 27 |
| telecommunications provider, licensed as a common carrier by | 28 |
| the
Federal Communications Commission, which is permanently | 29 |
| installed in or
affixed to aircraft moving in interstate | 30 |
| commerce.
| 31 |
| (d-1.1) On and after July 1, 2003 and until the effective | 32 |
| date of this amendatory Act of the 93rd General Assembly , a | 33 |
| sale or
transfer of a motor vehicle
of the
second division with | 34 |
| a gross vehicle weight in excess of 8,000 pounds as an
incident |
|
|
|
09300HB0412ham001 |
- 27 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| to the rendering of service if that motor
vehicle is subject
to | 2 |
| the commercial distribution fee imposed under Section 3-815.1 | 3 |
| of the
Illinois Vehicle
Code. This exemption applies to repair | 4 |
| and replacement parts added after the
initial
purchase of such | 5 |
| a motor vehicle if that motor vehicle is used in a manner that
| 6 |
| would
qualify for the rolling stock exemption otherwise | 7 |
| provided for in this Act.
| 8 |
| (d-2) The repairing, reconditioning or remodeling, for a | 9 |
| common carrier by
rail, of tangible personal property which | 10 |
| belongs to such carrier for hire, and
as to which such carrier | 11 |
| receives the physical possession of the repaired,
| 12 |
| reconditioned or remodeled item of tangible personal property | 13 |
| in Illinois, and
which such carrier transports, or shares with | 14 |
| another common carrier in the
transportation of such property, | 15 |
| out of Illinois on a standard uniform bill of
lading showing | 16 |
| the person who repaired, reconditioned or remodeled the | 17 |
| property
as the shipper or consignor of such property to a | 18 |
| destination outside Illinois,
for use outside Illinois.
| 19 |
| (d-3) A sale or transfer of tangible personal property | 20 |
| which
is produced by the seller thereof on special order in | 21 |
| such a way as to have
made the applicable tax the Service | 22 |
| Occupation Tax or the Service Use Tax,
rather than the | 23 |
| Retailers' Occupation Tax or the Use Tax, for an interstate
| 24 |
| carrier by rail which receives the physical possession of such | 25 |
| property in
Illinois, and which transports such property, or | 26 |
| shares with another common
carrier in the transportation of | 27 |
| such property, out of Illinois on a standard
uniform bill of | 28 |
| lading showing the seller of the property as the shipper or
| 29 |
| consignor of such property to a destination outside Illinois, | 30 |
| for use outside
Illinois.
| 31 |
| (d-4) Until January 1, 1997, a sale, by a registered | 32 |
| serviceman paying tax
under this Act to the Department, of | 33 |
| special order printed materials delivered
outside Illinois and | 34 |
| which are not returned to this State, if delivery is made
by |
|
|
|
09300HB0412ham001 |
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LRB093 04932 SJM 46174 a |
|
| 1 |
| the seller or agent of the seller, including an agent who | 2 |
| causes the product
to be delivered outside Illinois by a common | 3 |
| carrier or the U.S.
postal service.
| 4 |
| (e) A sale or transfer of machinery and equipment used | 5 |
| primarily in
the process of the manufacturing or assembling, | 6 |
| either in an existing, an
expanded or a new manufacturing | 7 |
| facility, of tangible personal property for
wholesale or retail | 8 |
| sale or lease, whether such sale or lease is made directly
by | 9 |
| the manufacturer or by some other person, whether the materials | 10 |
| used in the
process are owned by the manufacturer or some other | 11 |
| person, or whether such
sale or lease is made apart from or as | 12 |
| an incident to the seller's engaging in
a service occupation | 13 |
| and the applicable tax is a Service Occupation Tax or
Service | 14 |
| Use Tax, rather than Retailers' Occupation Tax or Use Tax.
| 15 |
| (f) Until July 1, 2003, the sale or transfer of | 16 |
| distillation
machinery
and equipment, sold as a
unit or kit and | 17 |
| assembled or installed by the retailer, which machinery
and | 18 |
| equipment is certified by the user to be used only for the | 19 |
| production
of ethyl alcohol that will be used for consumption | 20 |
| as motor fuel or as a
component of motor fuel for the personal | 21 |
| use of such user and not subject
to sale or resale.
| 22 |
| (g) At the election of any serviceman not required to be | 23 |
| otherwise
registered as a retailer under Section 2a of the | 24 |
| Retailers' Occupation Tax Act,
made for each fiscal year sales | 25 |
| of service in which the aggregate annual cost
price of tangible | 26 |
| personal property transferred as an incident to the sales of
| 27 |
| service is less than 35% (75% in the case of servicemen | 28 |
| transferring
prescription drugs or servicemen engaged in | 29 |
| graphic arts production) of the
aggregate annual total gross | 30 |
| receipts from all sales of service. The purchase
of such | 31 |
| tangible personal property by the serviceman shall be subject | 32 |
| to tax
under the Retailers' Occupation Tax Act and the Use Tax | 33 |
| Act.
However, if a
primary serviceman who has made the election | 34 |
| described in this paragraph
subcontracts service work to a |
|
|
|
09300HB0412ham001 |
- 29 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| secondary serviceman who has also made the
election described | 2 |
| in this paragraph, the primary serviceman does not
incur a Use | 3 |
| Tax liability if the secondary serviceman (i) has paid or will | 4 |
| pay
Use
Tax on his or her cost price of any tangible personal | 5 |
| property transferred
to the primary serviceman and (ii) | 6 |
| certifies that fact in writing to the
primary serviceman.
| 7 |
| Tangible personal property transferred incident to the | 8 |
| completion of a
maintenance agreement is exempt from the tax | 9 |
| imposed pursuant to this Act.
| 10 |
| Exemption (e) also includes machinery and equipment used in | 11 |
| the
general maintenance or repair of such exempt machinery and | 12 |
| equipment or for
in-house manufacture of exempt machinery and | 13 |
| equipment.
For the purposes of exemption (e), each of these | 14 |
| terms shall have the following
meanings: (1) "manufacturing | 15 |
| process" shall mean the production of any
article of tangible | 16 |
| personal property, whether such article is a
finished product | 17 |
| or an article for use in the process of manufacturing
or | 18 |
| assembling a different article of tangible personal property, | 19 |
| by
procedures commonly regarded as manufacturing, processing, | 20 |
| fabricating,
or refining which changes some existing material | 21 |
| or materials into a
material with a different form, use or | 22 |
| name. In relation to a
recognized integrated business composed | 23 |
| of a series of operations which
collectively constitute | 24 |
| manufacturing, or individually constitute
manufacturing | 25 |
| operations, the manufacturing process shall be deemed to
| 26 |
| commence with the first operation or stage of production in the | 27 |
| series,
and shall not be deemed to end until the completion of | 28 |
| the final product
in the last operation or stage of production | 29 |
| in the series; and further for
purposes of exemption (e), | 30 |
| photoprocessing is deemed to be a manufacturing
process of | 31 |
| tangible personal property for wholesale or retail sale;
(2) | 32 |
| "assembling process" shall mean the production of any article | 33 |
| of
tangible personal property, whether such article is a | 34 |
| finished product
or an article for use in the process of |
|
|
|
09300HB0412ham001 |
- 30 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| manufacturing or assembling a
different article of tangible | 2 |
| personal property, by the combination of
existing materials in | 3 |
| a manner commonly regarded as assembling which
results in a | 4 |
| material of a different form, use or name; (3) "machinery"
| 5 |
| shall mean major mechanical machines or major components of | 6 |
| such machines
contributing to a manufacturing or assembling | 7 |
| process; and (4) "equipment"
shall include any independent | 8 |
| device or tool separate from any machinery but
essential to an | 9 |
| integrated manufacturing or assembly process; including
| 10 |
| computers used primarily in a manufacturer's computer
assisted | 11 |
| design, computer assisted manufacturing (CAD/CAM) system; or | 12 |
| any
subunit or assembly comprising a component of any machinery | 13 |
| or auxiliary,
adjunct or attachment parts of machinery, such as | 14 |
| tools, dies, jigs, fixtures,
patterns and molds; or any parts | 15 |
| which require periodic replacement in the
course of normal | 16 |
| operation; but shall not include hand tools. Equipment
includes | 17 |
| chemicals or chemicals acting as catalysts but only if the | 18 |
| chemicals
or chemicals acting as catalysts effect a direct and | 19 |
| immediate change upon a
product being manufactured or assembled | 20 |
| for wholesale or retail sale or lease.
The purchaser of such | 21 |
| machinery and equipment
who has an active resale registration | 22 |
| number shall furnish such number to
the seller at the time of | 23 |
| purchase. The purchaser of such machinery and
equipment and | 24 |
| tools without an active resale registration number shall | 25 |
| furnish
to the seller a certificate of exemption for each | 26 |
| transaction stating facts
establishing the exemption for that | 27 |
| transaction, which certificate shall
be available to the | 28 |
| Department for inspection or audit.
| 29 |
| Except as provided in Section 2d of this Act, the rolling | 30 |
| stock exemption
applies to rolling
stock
used by an interstate
| 31 |
| carrier for hire, even just between points in Illinois, if such | 32 |
| rolling
stock transports, for hire, persons whose journeys or | 33 |
| property whose
shipments originate or terminate outside | 34 |
| Illinois.
|
|
|
|
09300HB0412ham001 |
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LRB093 04932 SJM 46174 a |
|
| 1 |
| Any informal rulings, opinions or letters issued by the | 2 |
| Department in
response to an inquiry or request for any opinion | 3 |
| from any person
regarding the coverage and applicability of | 4 |
| exemption (e) to specific
devices shall be published, | 5 |
| maintained as a public record, and made
available for public | 6 |
| inspection and copying. If the informal ruling,
opinion or | 7 |
| letter contains trade secrets or other confidential
| 8 |
| information, where possible the Department shall delete such | 9 |
| information
prior to publication. Whenever such informal | 10 |
| rulings, opinions, or
letters contain any policy of general | 11 |
| applicability, the Department
shall formulate and adopt such | 12 |
| policy as a rule in accordance with the
provisions of the | 13 |
| Illinois Administrative Procedure Act.
| 14 |
| On and after July 1, 1987, no entity otherwise eligible | 15 |
| under exemption
(c) of this Section shall make tax free | 16 |
| purchases unless it has an active
exemption identification | 17 |
| number issued by the Department.
| 18 |
| "Serviceman" means any person who is engaged in the | 19 |
| occupation of
making sales of service.
| 20 |
| "Sale at Retail" means "sale at retail" as defined in the | 21 |
| Retailers'
Occupation Tax Act.
| 22 |
| "Supplier" means any person who makes sales of tangible | 23 |
| personal
property to servicemen for the purpose of resale as an | 24 |
| incident to a
sale of service.
| 25 |
| (Source: P.A. 92-484, eff. 8-23-01;
93-23, eff. 6-20-03; 93-24, | 26 |
| eff. 6-20-03; revised 8-21-03.)
| 27 |
| (35 ILCS 115/2d)
| 28 |
| Sec. 2d. Motor vehicles; use as rolling stock definition. | 29 |
| Through June
30, 2003 and beginning again on the effective date | 30 |
| of this amendatory Act of the 93rd General Assembly , "use as
| 31 |
| rolling stock moving in
interstate commerce" in subsections (d) | 32 |
| and (d-1) of the definition of "sale of
service" in Section 2 | 33 |
| means for motor vehicles, as defined in Section 1-146 of
the |
|
|
|
09300HB0412ham001 |
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LRB093 04932 SJM 46174 a |
|
| 1 |
| Illinois Vehicle Code, and trailers, as defined in Section | 2 |
| 1-209 of the
Illinois Vehicle Code, when on 15 or more | 3 |
| occasions in a 12-month period the
motor vehicle and trailer | 4 |
| has carried persons or property for hire in
interstate | 5 |
| commerce, even just between points in Illinois, if the motor | 6 |
| vehicle
and trailer transports persons whose journeys or | 7 |
| property whose shipments
originate or terminate outside | 8 |
| Illinois.
This definition applies to all property purchased for | 9 |
| the purpose of being
attached to those motor vehicles or | 10 |
| trailers as a part thereof.
| 11 |
| On and after July 1, 2003 and until the effective date of | 12 |
| this amendatory Act of the 93rd General Assembly , "use as | 13 |
| rolling stock
moving in interstate
commerce" in
paragraphs (d) | 14 |
| and (d-1) of the definition of "sale of service" in
Section 2 | 15 |
| occurs for motor vehicles, as defined in Section 1-146 of the
| 16 |
| Illinois Vehicle Code,
when during a 12-month period the | 17 |
| rolling stock has carried persons or property
for hire
in | 18 |
| interstate commerce for 51% of its total trips and transports | 19 |
| persons whose
journeys or
property whose shipments originate or | 20 |
| terminate outside Illinois. On and after July 1, 2003 and until | 21 |
| the effective date of this amendatory Act of the 93rd General | 22 |
| Assembly, trips that
are only
between points in Illinois will | 23 |
| not be counted as interstate trips when
calculating whether
the | 24 |
| tangible personal property qualifies for the exemption but such | 25 |
| trips will
be included
in total trips taken.
| 26 |
| (Source: P.A. 93-23, eff. 6-20-03.)
| 27 |
| Section 25. The Retailers' Occupation Tax Act is amended | 28 |
| by changing
Sections 2-5 and 2-51 as follows:
| 29 |
| (35 ILCS 120/2-5)
(from Ch. 120, par. 441-5)
| 30 |
| Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 31 |
| sale of
the following tangible personal property are exempt | 32 |
| from the tax imposed
by this Act:
|
|
|
|
09300HB0412ham001 |
- 33 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| (1) Farm chemicals.
| 2 |
| (2) Farm machinery and equipment, both new and used, | 3 |
| including that
manufactured on special order, certified by the | 4 |
| purchaser to be used
primarily for production agriculture or | 5 |
| State or federal agricultural
programs, including individual | 6 |
| replacement parts for the machinery and
equipment, including | 7 |
| machinery and equipment purchased for lease,
and including | 8 |
| implements of husbandry defined in Section 1-130 of
the | 9 |
| Illinois Vehicle Code, farm machinery and agricultural | 10 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 11 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 12 |
| but
excluding other motor vehicles required to be registered | 13 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or | 14 |
| hoop houses used for propagating, growing, or
overwintering | 15 |
| plants shall be considered farm machinery and equipment under
| 16 |
| this item (2).
Agricultural chemical tender tanks and dry boxes | 17 |
| shall include units sold
separately from a motor vehicle | 18 |
| required to be licensed and units sold mounted
on a motor | 19 |
| vehicle required to be licensed, if the selling price of the | 20 |
| tender
is separately stated.
| 21 |
| Farm machinery and equipment shall include precision | 22 |
| farming equipment
that is
installed or purchased to be | 23 |
| installed on farm machinery and equipment
including, but not | 24 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 25 |
| or spreaders.
Precision farming equipment includes, but is not | 26 |
| limited to,
soil testing sensors, computers, monitors, | 27 |
| software, global positioning
and mapping systems, and other | 28 |
| such equipment.
| 29 |
| Farm machinery and equipment also includes computers, | 30 |
| sensors, software, and
related equipment used primarily in the
| 31 |
| computer-assisted operation of production agriculture | 32 |
| facilities, equipment,
and activities such as, but
not limited | 33 |
| to,
the collection, monitoring, and correlation of
animal and | 34 |
| crop data for the purpose of
formulating animal diets and |
|
|
|
09300HB0412ham001 |
- 34 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| agricultural chemicals. This item (7) is exempt
from the | 2 |
| provisions of
Section 2-70.
| 3 |
| (3) Until July 1, 2003, distillation machinery and | 4 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 5 |
| retailer, certified by the user to be used
only for the | 6 |
| production of ethyl alcohol that will be used for consumption
| 7 |
| as motor fuel or as a component of motor fuel for the personal | 8 |
| use of the
user, and not subject to sale or resale.
| 9 |
| (4) Until July 1, 2003, graphic arts machinery and | 10 |
| equipment, including
repair and
replacement parts, both new and | 11 |
| used, and including that manufactured on
special order or | 12 |
| purchased for lease, certified by the purchaser to be used
| 13 |
| primarily for graphic arts production.
Equipment includes | 14 |
| chemicals or
chemicals acting as catalysts but only if
the | 15 |
| chemicals or chemicals acting as catalysts effect a direct and | 16 |
| immediate
change upon a
graphic arts product.
| 17 |
| (5) A motor vehicle of the first division, a motor vehicle | 18 |
| of the second
division that is a self-contained motor vehicle | 19 |
| designed or permanently
converted to provide living quarters | 20 |
| for recreational, camping, or travel
use, with direct walk | 21 |
| through access to the living quarters from the
driver's seat, | 22 |
| or a motor vehicle of the second division that is of the van
| 23 |
| configuration designed for the transportation of not less than | 24 |
| 7 nor more
than 16 passengers, as defined in Section 1-146 of | 25 |
| the Illinois Vehicle
Code, that is used for automobile renting, | 26 |
| as defined in the Automobile
Renting Occupation and Use Tax | 27 |
| Act.
| 28 |
| (6) Personal property sold by a teacher-sponsored student | 29 |
| organization
affiliated with an elementary or secondary school | 30 |
| located in Illinois.
| 31 |
| (7) Until July 1, 2003, proceeds of that portion of the | 32 |
| selling price of
a passenger car the
sale of which is subject | 33 |
| to the Replacement Vehicle Tax.
| 34 |
| (8) Personal property sold to an Illinois county fair |
|
|
|
09300HB0412ham001 |
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LRB093 04932 SJM 46174 a |
|
| 1 |
| association for
use in conducting, operating, or promoting the | 2 |
| county fair.
| 3 |
| (9) Personal property sold to a not-for-profit arts
or | 4 |
| cultural organization that establishes, by proof required by | 5 |
| the Department
by
rule, that it has received an exemption under | 6 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 7 |
| organized and operated primarily for the
presentation
or | 8 |
| support of arts or cultural programming, activities, or | 9 |
| services. These
organizations include, but are not limited to, | 10 |
| music and dramatic arts
organizations such as symphony | 11 |
| orchestras and theatrical groups, arts and
cultural service | 12 |
| organizations, local arts councils, visual arts organizations,
| 13 |
| and media arts organizations.
On and after the effective date | 14 |
| of this amendatory Act of the 92nd General
Assembly, however, | 15 |
| an entity otherwise eligible for this exemption shall not
make | 16 |
| tax-free purchases unless it has an active identification | 17 |
| number issued by
the Department.
| 18 |
| (10) Personal property sold by a corporation, society, | 19 |
| association,
foundation, institution, or organization, other | 20 |
| than a limited liability
company, that is organized and | 21 |
| operated as a not-for-profit service enterprise
for the benefit | 22 |
| of persons 65 years of age or older if the personal property
| 23 |
| was not purchased by the enterprise for the purpose of resale | 24 |
| by the
enterprise.
| 25 |
| (11) Personal property sold to a governmental body, to a | 26 |
| corporation,
society, association, foundation, or institution | 27 |
| organized and operated
exclusively for charitable, religious, | 28 |
| or educational purposes, or to a
not-for-profit corporation, | 29 |
| society, association, foundation, institution,
or organization | 30 |
| that has no compensated officers or employees and that is
| 31 |
| organized and operated primarily for the recreation of persons | 32 |
| 55 years of
age or older. A limited liability company may | 33 |
| qualify for the exemption under
this paragraph only if the | 34 |
| limited liability company is organized and operated
|
|
|
|
09300HB0412ham001 |
- 36 - |
LRB093 04932 SJM 46174 a |
|
| 1 |
| exclusively for educational purposes. On and after July 1, | 2 |
| 1987, however, no
entity otherwise eligible for this exemption | 3 |
| shall make tax-free purchases
unless it has an active | 4 |
| identification number issued by the Department.
| 5 |
| (12) Tangible personal property sold to
interstate | 6 |
| carriers
for hire for use as
rolling stock moving in interstate | 7 |
| commerce or to lessors under leases of
one year or longer | 8 |
| executed or in effect at the time of purchase by
interstate | 9 |
| carriers for hire for use as rolling stock moving in interstate
| 10 |
| commerce and equipment operated by a telecommunications | 11 |
| provider, licensed as a
common carrier by the Federal | 12 |
| Communications Commission, which is permanently
installed in | 13 |
| or affixed to aircraft moving in interstate commerce.
| 14 |
| (12-5) On and after July 1, 2003 and until the effective | 15 |
| date of this amendatory Act of the 93rd General Assembly , motor
| 16 |
| vehicles of the second division
with a gross vehicle weight in | 17 |
| excess of 8,000 pounds
that
are
subject to the commercial | 18 |
| distribution fee imposed under Section 3-815.1 of
the Illinois
| 19 |
| Vehicle Code. This exemption applies to repair and replacement | 20 |
| parts added
after the
initial purchase of such a motor vehicle | 21 |
| if that motor vehicle is used in a
manner that
would qualify | 22 |
| for the rolling stock exemption otherwise provided for in this
| 23 |
| Act.
| 24 |
| (13) Proceeds from sales to owners, lessors, or
shippers of
| 25 |
| tangible personal property that is utilized by interstate | 26 |
| carriers for
hire for use as rolling stock moving in interstate | 27 |
| commerce
and equipment operated by a telecommunications | 28 |
| provider, licensed as a
common carrier by the Federal | 29 |
| Communications Commission, which is
permanently installed in | 30 |
| or affixed to aircraft moving in interstate commerce.
| 31 |
| (14) Machinery and equipment that will be used by the | 32 |
| purchaser, or a
lessee of the purchaser, primarily in the | 33 |
| process of manufacturing or
assembling tangible personal | 34 |
| property for wholesale or retail sale or
lease, whether the |
|
|
|
09300HB0412ham001 |
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| 1 |
| sale or lease is made directly by the manufacturer or by
some | 2 |
| other person, whether the materials used in the process are | 3 |
| owned by
the manufacturer or some other person, or whether the | 4 |
| sale or lease is made
apart from or as an incident to the | 5 |
| seller's engaging in the service
occupation of producing | 6 |
| machines, tools, dies, jigs, patterns, gauges, or
other similar | 7 |
| items of no commercial value on special order for a particular
| 8 |
| purchaser.
| 9 |
| (15) Proceeds of mandatory service charges separately | 10 |
| stated on
customers' bills for purchase and consumption of food | 11 |
| and beverages, to the
extent that the proceeds of the service | 12 |
| charge are in fact turned over as
tips or as a substitute for | 13 |
| tips to the employees who participate directly
in preparing, | 14 |
| serving, hosting or cleaning up the food or beverage function
| 15 |
| with respect to which the service charge is imposed.
| 16 |
| (16) Petroleum products sold to a purchaser if the seller
| 17 |
| is prohibited by federal law from charging tax to the | 18 |
| purchaser.
| 19 |
| (17) Tangible personal property sold to a common carrier by | 20 |
| rail or
motor that
receives the physical possession of the | 21 |
| property in Illinois and that
transports the property, or | 22 |
| shares with another common carrier in the
transportation of the | 23 |
| property, out of Illinois on a standard uniform bill
of lading | 24 |
| showing the seller of the property as the shipper or consignor | 25 |
| of
the property to a destination outside Illinois, for use | 26 |
| outside Illinois.
| 27 |
| (18) Legal tender, currency, medallions, or gold or silver | 28 |
| coinage
issued by the State of Illinois, the government of the | 29 |
| United States of
America, or the government of any foreign | 30 |
| country, and bullion.
| 31 |
| (19) Until July 1 2003, oil field exploration, drilling, | 32 |
| and production
equipment, including
(i) rigs and parts of rigs, | 33 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 34 |
| tubular goods, including casing and
drill strings, (iii) pumps |
|
|
|
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| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 2 |
| individual replacement part for oil field exploration,
| 3 |
| drilling, and production equipment, and (vi) machinery and | 4 |
| equipment purchased
for lease; but
excluding motor vehicles | 5 |
| required to be registered under the Illinois
Vehicle Code.
| 6 |
| (20) Photoprocessing machinery and equipment, including | 7 |
| repair and
replacement parts, both new and used, including that | 8 |
| manufactured on
special order, certified by the purchaser to be | 9 |
| used primarily for
photoprocessing, and including | 10 |
| photoprocessing machinery and equipment
purchased for lease.
| 11 |
| (21) Until July 1, 2003, coal exploration, mining, | 12 |
| offhighway hauling,
processing,
maintenance, and reclamation | 13 |
| equipment, including
replacement parts and equipment, and | 14 |
| including
equipment purchased for lease, but excluding motor | 15 |
| vehicles required to be
registered under the Illinois Vehicle | 16 |
| Code.
| 17 |
| (22) Fuel and petroleum products sold to or used by an air | 18 |
| carrier,
certified by the carrier to be used for consumption, | 19 |
| shipment, or storage
in the conduct of its business as an air | 20 |
| common carrier, for a flight
destined for or returning from a | 21 |
| location or locations
outside the United States without regard | 22 |
| to previous or subsequent domestic
stopovers.
| 23 |
| (23) A transaction in which the purchase order is received | 24 |
| by a florist
who is located outside Illinois, but who has a | 25 |
| florist located in Illinois
deliver the property to the | 26 |
| purchaser or the purchaser's donee in Illinois.
| 27 |
| (24) Fuel consumed or used in the operation of ships, | 28 |
| barges, or vessels
that are used primarily in or for the | 29 |
| transportation of property or the
conveyance of persons for | 30 |
| hire on rivers bordering on this State if the
fuel is delivered | 31 |
| by the seller to the purchaser's barge, ship, or vessel
while | 32 |
| it is afloat upon that bordering river.
| 33 |
| (25) A motor vehicle sold in this State to a nonresident | 34 |
| even though the
motor vehicle is delivered to the nonresident |
|
|
|
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| in this State, if the motor
vehicle is not to be titled in this | 2 |
| State, and if a drive-away permit
is issued to the motor | 3 |
| vehicle as provided in Section 3-603 of the Illinois
Vehicle | 4 |
| Code or if the nonresident purchaser has vehicle registration
| 5 |
| plates to transfer to the motor vehicle upon returning to his | 6 |
| or her home
state. The issuance of the drive-away permit or | 7 |
| having
the
out-of-state registration plates to be transferred | 8 |
| is prima facie evidence
that the motor vehicle will not be | 9 |
| titled in this State.
| 10 |
| (26) Semen used for artificial insemination of livestock | 11 |
| for direct
agricultural production.
| 12 |
| (27) Horses, or interests in horses, registered with and | 13 |
| meeting the
requirements of any of the
Arabian Horse Club | 14 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 15 |
| Horse Association, United States
Trotting Association, or | 16 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 17 |
| racing for prizes.
| 18 |
| (28) Computers and communications equipment utilized for | 19 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 20 |
| analysis, or treatment of hospital patients sold to a lessor | 21 |
| who leases the
equipment, under a lease of one year or longer | 22 |
| executed or in effect at the
time of the purchase, to a
| 23 |
| hospital
that has been issued an active tax exemption | 24 |
| identification number by the
Department under Section 1g of | 25 |
| this Act.
| 26 |
| (29) Personal property sold to a lessor who leases the
| 27 |
| property, under a
lease of one year or longer executed or in | 28 |
| effect at the time of the purchase,
to a governmental body
that | 29 |
| has been issued an active tax exemption identification number | 30 |
| by the
Department under Section 1g of this Act.
| 31 |
| (30) Beginning with taxable years ending on or after | 32 |
| December
31, 1995
and
ending with taxable years ending on or | 33 |
| before December 31, 2004,
personal property that is
donated for | 34 |
| disaster relief to be used in a State or federally declared
|
|
|
|
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| disaster area in Illinois or bordering Illinois by a | 2 |
| manufacturer or retailer
that is registered in this State to a | 3 |
| corporation, society, association,
foundation, or institution | 4 |
| that has been issued a sales tax exemption
identification | 5 |
| number by the Department that assists victims of the disaster
| 6 |
| who reside within the declared disaster area.
| 7 |
| (31) Beginning with taxable years ending on or after | 8 |
| December
31, 1995 and
ending with taxable years ending on or | 9 |
| before December 31, 2004, personal
property that is used in the | 10 |
| performance of infrastructure repairs in this
State, including | 11 |
| but not limited to municipal roads and streets, access roads,
| 12 |
| bridges, sidewalks, waste disposal systems, water and sewer | 13 |
| line extensions,
water distribution and purification | 14 |
| facilities, storm water drainage and
retention facilities, and | 15 |
| sewage treatment facilities, resulting from a State
or | 16 |
| federally declared disaster in Illinois or bordering Illinois | 17 |
| when such
repairs are initiated on facilities located in the | 18 |
| declared disaster area
within 6 months after the disaster.
| 19 |
| (32) Beginning July 1, 1999, game or game birds sold at a | 20 |
| "game breeding
and
hunting preserve area" or an "exotic game | 21 |
| hunting area" as those terms are used
in the
Wildlife Code or | 22 |
| at a hunting enclosure approved through rules adopted by the
| 23 |
| Department of Natural Resources. This paragraph is exempt from | 24 |
| the provisions
of
Section 2-70.
| 25 |
| (33) A motor vehicle, as that term is defined in Section | 26 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 27 |
| corporation, limited liability
company, society, association, | 28 |
| foundation, or institution that is determined by
the Department | 29 |
| to be organized and operated exclusively for educational
| 30 |
| purposes. For purposes of this exemption, "a corporation, | 31 |
| limited liability
company, society, association, foundation, | 32 |
| or institution organized and
operated
exclusively for | 33 |
| educational purposes" means all tax-supported public schools,
| 34 |
| private schools that offer systematic instruction in useful |
|
|
|
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| branches of
learning by methods common to public schools and | 2 |
| that compare favorably in
their scope and intensity with the | 3 |
| course of study presented in tax-supported
schools, and | 4 |
| vocational or technical schools or institutes organized and
| 5 |
| operated exclusively to provide a course of study of not less | 6 |
| than 6 weeks
duration and designed to prepare individuals to | 7 |
| follow a trade or to pursue a
manual, technical, mechanical, | 8 |
| industrial, business, or commercial
occupation.
| 9 |
| (34) Beginning January 1, 2000, personal property, | 10 |
| including food, purchased
through fundraising events for the | 11 |
| benefit of a public or private elementary or
secondary school, | 12 |
| a group of those schools, or one or more school districts if
| 13 |
| the events are sponsored by an entity recognized by the school | 14 |
| district that
consists primarily of volunteers and includes | 15 |
| parents and teachers of the
school children. This paragraph | 16 |
| does not apply to fundraising events (i) for
the benefit of | 17 |
| private home instruction or (ii) for which the fundraising
| 18 |
| entity purchases the personal property sold at the events from | 19 |
| another
individual or entity that sold the property for the | 20 |
| purpose of resale by the
fundraising entity and that profits | 21 |
| from the sale to the fundraising entity.
This paragraph is | 22 |
| exempt from the provisions of Section 2-70.
| 23 |
| (35) Beginning January 1, 2000 and through December 31, | 24 |
| 2001, new or used
automatic vending machines that prepare and | 25 |
| serve hot food and beverages,
including coffee, soup, and other | 26 |
| items, and replacement parts for these
machines. Beginning | 27 |
| January 1, 2002 and through June 30, 2003, machines
and parts | 28 |
| for machines used in
commercial, coin-operated amusement and | 29 |
| vending business if a use or occupation
tax is paid on the | 30 |
| gross receipts derived from the use of the commercial,
| 31 |
| coin-operated amusement and vending machines. This paragraph | 32 |
| is exempt from
the provisions of Section 2-70.
| 33 |
| (35-5) Food for human consumption that is to be consumed | 34 |
| off
the premises where it is sold (other than alcoholic |
|
|
|
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| beverages, soft drinks,
and food that has been prepared for | 2 |
| immediate consumption) and prescription
and nonprescription | 3 |
| medicines, drugs, medical appliances, and insulin, urine
| 4 |
| testing materials, syringes, and needles used by diabetics, for | 5 |
| human use, when
purchased for use by a person receiving medical | 6 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 7 |
| resides in a licensed long-term care facility,
as defined in | 8 |
| the Nursing Home Care Act.
| 9 |
| (36) Beginning August 2, 2001, computers and | 10 |
| communications equipment
utilized for any hospital purpose and | 11 |
| equipment used in the diagnosis,
analysis, or treatment of | 12 |
| hospital patients sold to a lessor who leases the
equipment, | 13 |
| under a lease of one year or longer executed or in effect at | 14 |
| the
time of the purchase, to a hospital that has been issued an | 15 |
| active tax
exemption identification number by the Department | 16 |
| under Section 1g of this Act.
This paragraph is exempt from the | 17 |
| provisions of Section 2-70.
| 18 |
| (37) Beginning August 2, 2001, personal property sold to a | 19 |
| lessor who
leases the property, under a lease of one year or | 20 |
| longer executed or in effect
at the time of the purchase, to a | 21 |
| governmental body that has been issued an
active tax exemption | 22 |
| identification number by the Department under Section 1g
of | 23 |
| this Act. This paragraph is exempt from the provisions of | 24 |
| Section 2-70.
| 25 |
| (38) Beginning on January 1, 2002, tangible personal | 26 |
| property purchased
from an Illinois retailer by a taxpayer | 27 |
| engaged in centralized purchasing
activities in Illinois who | 28 |
| will, upon receipt of the property in Illinois,
temporarily | 29 |
| store the property in Illinois (i) for the purpose of | 30 |
| subsequently
transporting it outside this State for use or | 31 |
| consumption thereafter solely
outside this State or (ii) for | 32 |
| the purpose of being processed, fabricated, or
manufactured | 33 |
| into, attached to, or incorporated into other tangible personal
| 34 |
| property to be transported outside this State and thereafter |
|
|
|
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| 1 |
| used or consumed
solely outside this State. The Director of | 2 |
| Revenue shall, pursuant to rules
adopted in accordance with the | 3 |
| Illinois Administrative Procedure Act, issue a
permit to any | 4 |
| taxpayer in good standing with the Department who is eligible | 5 |
| for
the exemption under this paragraph (38). The permit issued | 6 |
| under
this paragraph (38) shall authorize the holder, to the | 7 |
| extent and
in the manner specified in the rules adopted under | 8 |
| this Act, to purchase
tangible personal property from a | 9 |
| retailer exempt from the taxes imposed by
this Act. Taxpayers | 10 |
| shall maintain all necessary books and records to
substantiate | 11 |
| the use and consumption of all such tangible personal property
| 12 |
| outside of the State of Illinois.
| 13 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 14 |
| eff. 8-2-01;
92-337, eff.
8-10-01; 92-484, eff. 8-23-01; | 15 |
| 92-488, eff. 8-23-01; 92-651, eff. 7-11-02;
92-680, eff. | 16 |
| 7-16-02; 93-23, eff. 6-20-03; 93-24, eff.
6-20-03; revised | 17 |
| 9-11-03.)
| 18 |
| (35 ILCS 120/2-51)
| 19 |
| Sec. 2-51. Motor vehicles; use as rolling stock definition. | 20 |
| Through
June 30, 2003 and beginning again on the effective date | 21 |
| of this amendatory Act of the 93rd General Assembly , "use
as
| 22 |
| rolling stock moving
in
interstate commerce" in
paragraphs (12) | 23 |
| and (13) of Section 2-5 means for motor vehicles, as defined in
| 24 |
| Section 1-146 of the Illinois Vehicle Code, and trailers, as | 25 |
| defined in Section
1-209 of the Illinois Vehicle Code, when on | 26 |
| 15 or more occasions in a
12-month period the motor vehicle and | 27 |
| trailer has carried persons or property
for
hire in
interstate | 28 |
| commerce, even just between points in Illinois, if the motor | 29 |
| vehicle
and trailer transports persons whose journeys or | 30 |
| property whose shipments
originate or terminate outside | 31 |
| Illinois. This
definition applies to all
property purchased for | 32 |
| the purpose of being attached to those motor vehicles or
| 33 |
| trailers as a part thereof.
|
|
|
|
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| 1 |
| On and after July 1, 2003 and until the effective date of | 2 |
| this amendatory Act of the 93rd General Assembly , "use as | 3 |
| rolling stock
moving in interstate
commerce" in
paragraphs (12) | 4 |
| and (13) of Section 2-5 occurs for motor vehicles, as defined
| 5 |
| in Section 1-146 of the Illinois Vehicle Code, when during a | 6 |
| 12-month
period the
rolling stock has carried persons or | 7 |
| property for hire in interstate commerce
for 51% of
its total | 8 |
| trips and transports persons whose journeys or property whose
| 9 |
| shipments
originate or terminate outside Illinois. On and after | 10 |
| July 1, 2003 and until the effective date of this amendatory | 11 |
| Act of the 93rd General Assembly, trips that are only between | 12 |
| points
in
Illinois shall
not be counted as interstate trips | 13 |
| when calculating whether the tangible
personal property
| 14 |
| qualifies for the exemption but such trips shall be included in | 15 |
| total trips
taken.
| 16 |
| (Source: P.A. 93-23, eff. 6-20-03.)
| 17 |
| Section 30. The Illinois Vehicle Code is amended by | 18 |
| changing
Section 3-815.1 as follows:
| 19 |
| (625 ILCS 5/3-815.1)
| 20 |
| Sec. 3-815.1. Commercial distribution fee. Beginning July | 21 |
| 1, 2003 and ending on the effective date of this amendatory Act | 22 |
| of the 93rd General Assembly , in
addition to any tax or fee | 23 |
| imposed under this Code:
| 24 |
| (a) Vehicles of the second division with a gross | 25 |
| vehicle weight that
exceeds 8,000 pounds and that incur any | 26 |
| tax or fee under subsection (a) of
Section 3-815 of this | 27 |
| Code or subsection (a) of Section 3-818 of this Code, as
| 28 |
| applicable, and shall pay to the Secretary of State a | 29 |
| commercial
distribution fee, for each registration year, | 30 |
| for the use of the public
highways, State infrastructure, | 31 |
| and State services, in an amount equal to 36%
of the taxes | 32 |
| and fees incurred under subsection (a) of Section 3-815 of |
|
|
|
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|
| 1 |
| this
Code, or subsection (a) of Section 3-818 of this Code, | 2 |
| as applicable, rounded
up to the nearest whole dollar.
| 3 |
| (b) Vehicles of the second division with a gross | 4 |
| vehicle weight of 8,000
pounds or less and that incur any | 5 |
| tax or fee under subsection (a) of Section
3-815 of this | 6 |
| Code or subsection (a) of Section 3-818 of this Code, as
| 7 |
| applicable, and have claimed the rolling stock exemption | 8 |
| under the Retailers'
Occupation Tax Act, Use Tax Act, | 9 |
| Service Occupation Tax Act, or Service Use Tax
Act shall | 10 |
| pay to the Illinois Department of Revenue (or the Secretary | 11 |
| of State
under an intergovernmental agreement) a | 12 |
| commercial distribution fee, for each
registration year, | 13 |
| for the use of the public highways, State infrastructure,
| 14 |
| and State services, in an amount equal to 36% of the taxes | 15 |
| and fees incurred
under subsection (a) of Section 3-815 of | 16 |
| this Code or subsection (a) of Section
3-818 of this Code, | 17 |
| as applicable, rounded up to the nearest whole dollar.
| 18 |
| The fees paid under this Section shall be deposited by the | 19 |
| Secretary of State
into the General Revenue Fund.
| 20 |
| Any person who has paid the fee imposed under this Section | 21 |
| is entitled to a refund of the amount paid. The Secretary of | 22 |
| State shall establish a procedure by which a person who has | 23 |
| paid the fee imposed under this Section may apply for and | 24 |
| receive a refund of the amount paid.
| 25 |
| (Source: P.A. 93-23, eff. 6-20-03; revised 10-9-03.)
| 26 |
| Section 99. Effective date. This Act takes effect upon | 27 |
| becoming law.".
|
|