Full Text of SB2330 94th General Assembly
SB2330 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB2330
Introduced 1/12/2006, by Sen. Mike Jacobs SYNOPSIS AS INTRODUCED: |
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New Act |
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20 ILCS 2420/Act rep. |
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35 ILCS 105/3-5 |
from Ch. 120, par. 439.3-5 |
35 ILCS 110/3-5 |
from Ch. 120, par. 439.33-5 |
35 ILCS 115/3-5 |
from Ch. 120, par. 439.103-5 |
35 ILCS 120/2-5 |
from Ch. 120, par. 441-5 |
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Creates the Blind Vendors Act. Provides that the Department of Human Services, Bureau of Blind Services, shall operate and promote the Business Enterprise Program for the Blind. Sets forth that the federal Randolph-Sheppard Act and the regulations adopted pursuant to that Act shall serve as the minimum standards for the operation of the Business Enterprise Program for the Blind. Provides that under the Program: (1) blind vendors have priority in the operation of all vending facilities on State property; (2) vending machine income from all vending machines on State property shall be assigned to the blind vendor on the property or to the Blind Vendors Trust Fund; (3) no State agency may impose any commission, service charge, rent, or utility charge on a blind vendor operating on State property; (4) sales made at a blind vendor's vending facility are exempt from all occupation and use taxes; and (5) State agencies may not allow competition with a blind vendor. Sets forth that the Bureau Director for the Bureau of the Blind and the Committee of Blind Vendors shall jointly develop regulations to ensure that priority is given to blind vendors in the operation of vending facilities on State property. Provides that the Department may provide for set-asides of the net proceeds of vending operations under certain conditions. Requires set-aside funds to be deposited in the Blind Vendors Trust Fund, a separate account managed by the Department for the State's blind vendors. Sets forth provisions for the distribution of vending machine income from vending machines on State property. Provides certain conditions for the licensing of blind vendors. Creates the Committee of Blind Vendors to jointly participate in the development and implementation of all policies, plans, and major decisions affecting the Business Enterprise Program for the Blind. Sets forth provisions for the composition of the Committee. Provides certain procedures for the resolution of disputes arising within the Program. Provides for the promulgation of regulations relating to the operation of this Act. Requires the Department to make regular surveys and reports on State property and vending facilities. Sets forth conditions and information to be contained in the surveys and reports. Preempts home rule powers. Repeals the Blind Persons Operating Vending Facilities Act. Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act to provide that personal property purchased from a blind vendor's vending facility licensed by the Department of Human Services under the Blind Vendors Act is exempt from the taxes imposed by those Acts and that these exemptions are not subject to the sunset provisions of those Acts.
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FISCAL NOTE ACT MAY APPLY | |
HOME RULE NOTE ACT MAY APPLY |
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A BILL FOR
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SB2330 |
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LRB094 16692 RSP 51962 b |
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the Blind | 5 |
| Vendors Act. | 6 |
| Section 5. Definitions.
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| As used in this Act: | 8 |
| "Assistant Director" means the individual primarily | 9 |
| responsible for the State's management and operation of the | 10 |
| Business Enterprise Program for the Blind. | 11 |
| "Blind licensee" means a blind person licensed by the | 12 |
| Department to operate a vending facility on State, federal, or | 13 |
| other
property. | 14 |
| "Blind person" means a person whose central visual acuity | 15 |
| does not exceed 20/200 in the better eye with correcting lenses | 16 |
| or whose visual acuity, if better than 20/200, is accompanied | 17 |
| by a limit to the field of vision in the better eye to such a | 18 |
| degree that its widest diameter subtends an angle of no greater | 19 |
| than 20 degrees. In determining whether an individual is blind, | 20 |
| there shall be an examination by a physician skilled in | 21 |
| diseases of the eye, or by an optometrist, whichever the | 22 |
| individual shall select. | 23 |
| "Cafeteria" means a food dispensing facility capable of | 24 |
| providing
a broad variety of prepared foods and beverages | 25 |
| (including hot meals)
primarily through the use of a line where | 26 |
| the customer serves himself
from displayed selections. A | 27 |
| cafeteria may be fully automatic or some
limited waiter or | 28 |
| waitress service may be available and provided within
a | 29 |
| cafeteria and table or booth seating facilities are always | 30 |
| provided.
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| "Committee" means the Illinois Committee of Blind Vendors, | 32 |
| an independent representative body for blind vendors |
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| established by the federal Randolph-Sheppard Act. | 2 |
| "Department" means the Department of Human Services. | 3 |
| "Director" means the Bureau Director of the Bureau for the | 4 |
| Blind in the Department of Human Services. | 5 |
| "Federal property" means any building, land, or other real
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| property owned, leased, or occupied by any department, agency | 7 |
| or
instrumentality of the United States (including the | 8 |
| Department of
Defense and the U.S. Postal Service), or any | 9 |
| other instrumentality
wholly owned by the United States, or by | 10 |
| any department or agency of the
District of Columbia or any | 11 |
| territory or possession of the United
States. | 12 |
| "License" means a written instrument issued by the | 13 |
| Department to a blind person, authorizing such person to | 14 |
| operate a vending
facility on State, federal, or other | 15 |
| property.
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| "Net proceeds" means the amount remaining from the sale of
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| articles or services of vending facilities, and any vending | 18 |
| machine or
other income accruing to blind vendors after | 19 |
| deducting the cost of such
sale and other expenses (excluding | 20 |
| any set-aside charges required to be paid
by the blind | 21 |
| vendors). | 22 |
| "Normal working hours" means an 8 hour work period between | 23 |
| the
approximate hours of 8:00 a.m., to 6:00 p.m., Monday | 24 |
| through Friday. | 25 |
| "Other property" means property that is not State or | 26 |
| federal property and
on which vending facilities are | 27 |
| established or operated by the use of
any funds derived in | 28 |
| whole or in part, directly or indirectly, from the
operation of | 29 |
| vending facilities on any State or federal property. | 30 |
| "Secretary" means the Secretary of Human Services. | 31 |
| "Set-aside funds" means funds that accrue to the Department | 32 |
| from an assessment against the net proceeds of each vending
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| facility in the State's vending facility program and any income | 34 |
| from
vending machines on State or federal property that accrues | 35 |
| to the Department. | 36 |
| "State agency" means any department, board, commission, or |
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| agency created by the Constitution or public Act, whether in | 2 |
| the executive, legislative or judicial branch. | 3 |
| "State property" means all real property, or part thereof, | 4 |
| owned, leased, rented, or otherwise controlled or occupied by | 5 |
| any agency, department, or other governing body of this State. | 6 |
| For purposes of this Act, "State property" does not include | 7 |
| property owned or controlled by a unit of local government or | 8 |
| school district. | 9 |
| "Vending facility" means automatic vending machines, | 10 |
| cafeterias,
snack bars, cart service, shelters, counters, and | 11 |
| such other appropriate
auxiliary equipment that may be operated | 12 |
| by blind licensees and which
is necessary for the sale of | 13 |
| newspapers, periodicals, confections,
tobacco products, foods, | 14 |
| beverages, and other articles or services
dispensed | 15 |
| automatically or manually and prepared on or off the premises
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| in accordance with all applicable health laws, and including | 17 |
| the vending
or exchange of changes for any lottery authorized | 18 |
| by State law and
conducted by a State agency within the State.
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| "Vending machine", for the purpose of assigning vending | 20 |
| machine
income under this Act, means a coin or currency | 21 |
| operated machine which
dispenses articles or services, except | 22 |
| that those machines operated by
the United States Postal | 23 |
| Service for the sale of postage stamps or other
postal products | 24 |
| and services, machines providing services of a
recreational | 25 |
| nature, and telephones shall not be considered to be
vending | 26 |
| machines. | 27 |
| "Vending machine income" means receipts (other than those | 28 |
| of a
blind vendor) from vending machine operations on State or | 29 |
| federal property, after
deducting the cost of goods sold | 30 |
| (including reasonable service and
maintenance costs in | 31 |
| accordance with customary business practices of
commercial | 32 |
| vending concerns), where the machines are operated, serviced,
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| or maintained by, or with the approval of, a department, | 34 |
| agency, or
instrumentality of the United States or the State of | 35 |
| Illinois, or commissions paid (other than to
a blind vendor) by | 36 |
| a commercial vending concern that operates,
services, and |
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| maintains vending machines on State or federal property for, or
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| with the approval of, a department, agency, or instrumentality | 3 |
| of the
United States or the State of Illinois.
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| "Vendor" means a blind licensee who is operating a vending
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| facility on State, federal, or other property.
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| Section 10. Business Enterprise Program for the Blind. | 7 |
| (a) The Business Enterprise Program for the Blind is | 8 |
| created for the purpose of providing blind persons with | 9 |
| remunerative employment, enlarging the economic opportunities | 10 |
| of the blind, and stimulating the blind to greater efforts in | 11 |
| striving to make themselves self-supporting. In order to | 12 |
| achieve these goals blind persons licensed under this Act shall | 13 |
| be authorized to operate vending facilities on any property | 14 |
| within this State as provided by this Act. | 15 |
| It is the intent of the General Assembly that the | 16 |
| Randolph-Sheppard Act, 20 U. S. C. §§107-107f, and the federal | 17 |
| regulations for its administration set forth in Part 395 of | 18 |
| title 34 of the Code of Federal Regulations, shall serve as the | 19 |
| minimum standards for the operation of the Business Enterprise | 20 |
| Program for the Blind. | 21 |
| (b) The Secretary, through the Director, shall continue, | 22 |
| maintain, and promote the Business Enterprise Program for the | 23 |
| Blind. Some or all of the functions of the program may be | 24 |
| provided by the Department of Human Services. The Business | 25 |
| Enterprise Program for the Blind must provide that: | 26 |
| (1) priority is given to blind vendors in the operation | 27 |
| of vending facilities on State property; | 28 |
| (2) vending machine income from all vending machines on | 29 |
| State property is assigned as provided for by Section 30 of | 30 |
| this Act; | 31 |
| (3) no State agency may impose any commission, service | 32 |
| charge, rent, or utility charge on a licensed blind vendor | 33 |
| who is operating a vending facility on State property; | 34 |
| (4) sales made at a blind vendor's vending facility are | 35 |
| exempt from all occupation and use taxes; and |
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| (5) State agencies may not allow competition with a | 2 |
| blind vendor. For purposes of this item (5), "competition" | 3 |
| includes, but is not limited to, vending machines, coffee | 4 |
| services, bake sales, or other fund raising or commercial | 5 |
| mechanisms in the same building as a licensed blind vendor. | 6 |
| (c) With respect to vending facilities on federal property | 7 |
| within this State, priority shall be given as provided in the | 8 |
| federal Randolph-Sheppard Act, 20 U. S. C. §§107-107f, | 9 |
| including any amendments thereto. This Act, as it applies to | 10 |
| federal property, is intended to conform to the federal Act, | 11 |
| and is to be of no force or effect if, and to the extent that, | 12 |
| any provision of this Act or any regulation adopted under this | 13 |
| Act is in conflict with the federal Act. Nothing in this | 14 |
| subsection shall be construed to impose limitations on the | 15 |
| operation of vending facilities on State property, or property | 16 |
| other than federal property, or to allow only those activities | 17 |
| specifically enumerated in the Randolph-Sheppard Act. | 18 |
| (d) On all other property within this State, whether owned | 19 |
| or controlled privately or by a unit of local government or | 20 |
| school district, the Department directly or by delegation shall | 21 |
| take all feasible steps to encourage and establish vending by | 22 |
| blind persons licensed under this Act. The Department may enter | 23 |
| into appropriate agreements with the entities or persons owning | 24 |
| or controlling the property. All such agreements shall be in | 25 |
| writing and shall be in conformity with this Act. | 26 |
| (e) The Assistant Director shall actively pursue all | 27 |
| commissions from vending facilities not operated by blind | 28 |
| vendors as provided in Section 30 of this Act, and shall | 29 |
| propose new placements of vending facilities on State property | 30 |
| where a facility is not yet in place. | 31 |
| (f) Partnerships and teaming arrangements between blind | 32 |
| vendors and private industry, including franchise operations, | 33 |
| shall be fostered and encouraged by the Department. | 34 |
| Section 15. Vending facilities on State property. | 35 |
| (a) In order to ensure that priority is given to blind |
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| vendors in the operation of vending facilities on State | 2 |
| property as provided in Section 10, the Director, directly or | 3 |
| by delegation to the Assistant Director, and the Committee | 4 |
| shall jointly develop regulations to ensure the following: | 5 |
| (1) That priority is given to blind persons licensed | 6 |
| under this Act or under its predecessor Act (the Blind | 7 |
| Persons Operating Vending Facilities Act 20 ILCS 2420/), | 8 |
| including the assignment of vending machine income as | 9 |
| provided in this Act. | 10 |
| (2) That one or more vending facilities shall be | 11 |
| established on all State property to the extent feasible. | 12 |
| Where a larger vending facility is determined by the | 13 |
| Director and the Committee to be infeasible, every effort | 14 |
| shall be made to place vending machines on the property | 15 |
| whenever possible. The Director and the Committee shall | 16 |
| take into account the following criteria when determining | 17 |
| whether establishment of a vending facility is feasible: | 18 |
| (A) the number of State employees, visitors, and | 19 |
| other potential facility customers on the property in a | 20 |
| given period; | 21 |
| (B) the size, in square feet, of the area owned, | 22 |
| leased, occupied, or otherwise controlled by the | 23 |
| State; | 24 |
| (C) the duration the property is expected to be | 25 |
| leased or occupied by the State; | 26 |
| (D) whether establishment of a vending facility | 27 |
| would adversely affect the interests of the State; and | 28 |
| (E) the likelihood that the vending facility would | 29 |
| produce an adequate net income for a blind vendor as | 30 |
| determined by the average income of all blind vendors | 31 |
| in the State. | 32 |
| (b) Any determination by the Director, or by the agency or | 33 |
| department controlling the property, that the placement or | 34 |
| operation of a vending facility is not feasible, or that the | 35 |
| placement or operation would adversely affect the interests of | 36 |
| the State shall be in writing and shall be transmitted to the |
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| Committee for review and ratification or rejection. | 2 |
| (c) The Director, through the Assistant Director, subject | 3 |
| to the regulations developed and adopted pursuant to subsection | 4 |
| (a) of this Section and the requirements of federal law and | 5 |
| regulations, is authorized to select a location for a vending | 6 |
| facility and the type of facility to be provided. | 7 |
| (d) Upon the development of plans by any State agency to | 8 |
| occupy, acquire, renovate, or relocate a property, the State | 9 |
| agency shall notify the Director, who shall determine whether | 10 |
| the plans include a satisfactory site or sites for one or more | 11 |
| vending facilities. | 12 |
| (e) After January 1, 2006, no State agency shall undertake | 13 |
| to acquire by ownership, rent or lease, or to otherwise occupy, | 14 |
| in whole or in part, any property unless, after consultation | 15 |
| with the head of the State agency, it is determined by the | 16 |
| Director in accordance with regulations developed pursuant to | 17 |
| subsection (a) either: (1) that the property includes a | 18 |
| satisfactory site or sites for the location and operation of a | 19 |
| vending facility by a blind person; or (2) that, if a building | 20 |
| is to be constructed, substantially altered, or renovated, or, | 21 |
| in the case of a building that is already occupied by the State | 22 |
| agency, is to be substantially altered or renovated for use by | 23 |
| the State agency, the design for the construction, substantial | 24 |
| alteration, or renovation includes a satisfactory site or sites | 25 |
| for the location and operation of a vending facility by a blind | 26 |
| person. | 27 |
| (f) The provisions of subsection (e) shall not apply when | 28 |
| the Director, in consultation with the Committee, determines | 29 |
| that the number of people using the location is or will be | 30 |
| insufficient to support a vending facility. | 31 |
| Section 20. Other vending facilities. The governing body of | 32 |
| any unit of local government or school board owning property or | 33 |
| persons or entities owning or controlling private property are | 34 |
| authorized and encouraged to construct or install on the | 35 |
| property, or permit the construction or installation of, |
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| vending facilities for operation by blind persons licensed | 2 |
| under this Act. In constructing or installing these vending | 3 |
| facilities, the amount of space allotted for this purpose | 4 |
| should be sufficient to adequately serve the number of persons | 5 |
| at the site and to provide the kind of services to be rendered. | 6 |
| Section 25. Set-aside funds; Blind Vendors Trust Fund. | 7 |
| (a) The Department may provide, by regulation, for | 8 |
| set-asides similar to those provided in Section 107d-3 of the | 9 |
| Randolph-Sheppard Act. If any funds are set aside, or caused to | 10 |
| be set aside, from the net proceeds of the operation of vending | 11 |
| facilities by blind vendors, the funds shall be set aside only | 12 |
| to the extent necessary in a percentage amount not to exceed | 13 |
| that determined jointly by the Director and the Committee and | 14 |
| published in State regulation, and that these funds may be used | 15 |
| only for the following purposes: (1) maintenance and | 16 |
| replacement of equipment; (2) purchase of new equipment; (3) | 17 |
| construction of new vending facilities; (4) funding the | 18 |
| functions of the Committee, including legal and other | 19 |
| professional services; and (5) retirement or pension funds, | 20 |
| health insurance, paid sick leave, and vacation time for blind | 21 |
| licensees, so long as these benefits are approved by a majority | 22 |
| vote of all blind vendors that occurs after the Department | 23 |
| provides these vendors with information on all matters relevant | 24 |
| to these purposes. | 25 |
| (b) No set-aside funds shall be collected from a blind | 26 |
| vendor when the monthly net proceeds of that vendor are less | 27 |
| than $1,000. This amount may be adjusted annually by the | 28 |
| Director and the Committee to reflect changes in the cost of | 29 |
| living. | 30 |
| (c) The Department shall establish, with full | 31 |
| participation by the Committee, the Blind Vendors Trust Fund as | 32 |
| a separate account managed by the Department for the State's | 33 |
| blind vendors. | 34 |
| (d) Set-aside funds collected from the operation of all | 35 |
| vending facilities administered by the Business Enterprise |
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| Program for the Blind shall be placed in the Blind Vendors | 2 |
| Trust Fund which shall include set-aside funds from facilities | 3 |
| on federal property. The Fund must provide separately | 4 |
| identified sub-accounts for moneys from (i) federal, and (ii) | 5 |
| State and other facilities, as well as vending machine income | 6 |
| generated pursuant to Section 30 of this Act. These funds shall | 7 |
| be available until expended and shall not revert to the General | 8 |
| Revenue Fund or to any other State account.
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| (e) It is the intent of the General Assembly that the | 10 |
| expenditure of set-aside funds authorized by this Section shall | 11 |
| be supplemental to any current appropriation or other moneys | 12 |
| made available for these purposes and shall not constitute an | 13 |
| offset or diminution of any previously existing appropriation | 14 |
| or other funding source. | 15 |
| (f) An amount equal to 10% of the wages paid by a blind | 16 |
| vendor to any employee who is blind or otherwise disabled shall | 17 |
| be deducted from any set-aside charge paid by the vendor each | 18 |
| month, in order to encourage vendors to employ blind and | 19 |
| disabled workers and to set an example for industry and | 20 |
| government. No deduction shall be made for any employee paid | 21 |
| less than the State or federal minimum wage. | 22 |
| Section 30. Vending machine income and compliance. | 23 |
| (a) After January 1, 2006, all vending machine income from | 24 |
| vending machines on State property shall accrue to (1) the | 25 |
| blind vendor operating the vending facilities on the property, | 26 |
| or (2) in the event there is no blind vendor operating a | 27 |
| facility on the property, to the Blind Vendors Trust Fund for | 28 |
| use exclusively as set forth in subsection (a) of Section 25 of | 29 |
| this Act. | 30 |
| (b) The Secretary, directly or by delegation of authority, | 31 |
| shall ensure compliance with this Section and Section 15 of | 32 |
| this Act with respect to buildings, installations, facilities, | 33 |
| roadside rest stops, and any other State property, and shall be | 34 |
| responsible for the collection of, and accounting for, all | 35 |
| vending machine income on this property. The Secretary shall |
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LRB094 16692 RSP 51962 b |
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| enforce these provisions through litigation, arbitration, or | 2 |
| any other legal means available to the State, and each State | 3 |
| agency in control of this property shall be subject to the | 4 |
| enforcement. State agencies or departments failing to comply | 5 |
| with an order of the Department may be held in contempt in any | 6 |
| court of general jurisdiction. | 7 |
| (c) Any limitation on the placement or operation of a | 8 |
| vending machine by a State agency based on a determination that | 9 |
| such placement or operation would adversely affect the | 10 |
| interests of the State must be explained in writing to the | 11 |
| Secretary. The Secretary shall promptly determine whether the | 12 |
| limitation is justified. If the Secretary determines that the | 13 |
| limitation is not justified, the State agency seeking the | 14 |
| limitation shall immediately remove the limitation. | 15 |
| (d) The amount of vending machine income accruing from | 16 |
| vending machines on State property that may be used for the | 17 |
| functions of the Committee shall be determined annually by a | 18 |
| two-thirds vote of the Committee, except that no more than 25% | 19 |
| of the annual vending machine income may be used by the | 20 |
| Committee for this purpose, based upon the income accruing to | 21 |
| the Blind Vendors Trust Fund in the preceding year. The | 22 |
| Committee may establish its budget and expend funds through | 23 |
| contract or otherwise without the approval of the Department. | 24 |
| Section 40. Licenses. | 25 |
| (a) Licenses shall be issued only to blind persons who are | 26 |
| qualified to operate vending facilities. The continuing | 27 |
| eligibility of a vendor as a blind person shall be reviewed | 28 |
| biennially for partially sighted individuals or whenever the | 29 |
| Director has information indicating the vendor is no longer | 30 |
| blind as defined under this Act. | 31 |
| (b) Following agreement by the Director, the Assistant | 32 |
| Director, and the Committee, the Secretary shall adopt and | 33 |
| publish regulations providing for (1) the requirements for | 34 |
| licensure as a blind vendor; (2) a curriculum for training, | 35 |
| inservice training, and upward mobility training for blind |
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| vendors; and (3) a regular schedule for offering the training, | 2 |
| classes to be offered at least once per year. | 3 |
| (c) Each license issued pursuant to this Section shall be | 4 |
| for an indefinite period. The license of a blind vendor may be | 5 |
| terminated or suspended for good cause, but only after | 6 |
| affording the licensee an opportunity for a full and fair | 7 |
| hearing in accordance with the provisions of this Act. | 8 |
| Section 45. Committee of Blind Vendors. | 9 |
| (a) The Director, through the Assistant Director, shall | 10 |
| provide for the biennial election of the Committee, which shall | 11 |
| be fully representative of all blind licensees in the State. | 12 |
| There shall be no fewer than one committee member for each 15 | 13 |
| licensed blind vendors in the State. | 14 |
| (b) The Committee is empowered to hire staff; contract for | 15 |
| consultants including, but not limited to, legal counsel; set | 16 |
| agendas and call meetings; create a constitution and bylaws, | 17 |
| subcommittees, and budgets; and do any other thing a not for | 18 |
| profit organization may do. At the discretion of the Committee | 19 |
| major issues may be referred for initial consideration to a | 20 |
| subcommittee, or to all blind vendors in order to ascertain | 21 |
| their views. The Committee is not a State agency, board, or | 22 |
| commission and is not subject to State ethics, sunshine, or | 23 |
| procurement laws. | 24 |
| (c) The Secretary shall ensure that the Committee jointly | 25 |
| participates with the State in the development and | 26 |
| implementation of all policies, plans, Program development, | 27 |
| and major administrative and management decisions affecting | 28 |
| the Business Enterprise Program for the Blind. The Director, | 29 |
| through the Assistant Director, shall provide to the Committee | 30 |
| all relevant financial information and data, including | 31 |
| quarterly and annual financial reports, on the operation of the | 32 |
| vending facility program in order that the Committee may fully | 33 |
| participate in budget development and formulation, the | 34 |
| establishment of set-aside levels, and other program | 35 |
| requirements. A copy of all completed audits, reports, and |
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| investigations affecting the Business Enterprise Program for | 2 |
| the Blind shall be distributed to the Committee in a timely | 3 |
| manner. Any implementation of changes in administrative policy | 4 |
| or program development that are within the discretion of the | 5 |
| Department shall occur only after Committee review. | 6 |
| Section 50. Hearings; arbitration. | 7 |
| (a) Any blind vendor dissatisfied with any act or omission | 8 |
| arising from the operation or administration of the vending | 9 |
| facility program may submit to the Assistant Director a request | 10 |
| for a full evidentiary hearing. This hearing shall be provided | 11 |
| in a timely manner by the Department. Damages, including | 12 |
| compensatory damages, attorney's fees, and expenses, must be | 13 |
| paid to any operator who prevails in the full evidentiary | 14 |
| hearing; however, payment of damages may only be paid from the | 15 |
| general funds of the State treasury and not from any program | 16 |
| funds, the Blind Vendors Trust Fund, or federal rehabilitation | 17 |
| funds. If the blind vendor is dissatisfied with any action | 18 |
| taken or decision rendered as a result of the hearing, that | 19 |
| vendor may file a complaint for arbitration with the Secretary. | 20 |
| (b) If the Secretary determines that any State agency has | 21 |
| failed to comply with the requirements of this Act, the | 22 |
| Secretary must establish a panel to arbitrate the dispute and | 23 |
| the decision of the panel shall be final and binding on the | 24 |
| parties. Any arbitration panel convened by the Secretary shall | 25 |
| be composed of 3 members, appointed as follows: | 26 |
| (1) one individual appointed by the Secretary; | 27 |
| (2) one individual appointed by the State agency | 28 |
| determined by the Secretary to be in noncompliance with the | 29 |
| Act; and | 30 |
| (3) one individual, who shall serve as chairman, | 31 |
| jointly designated by the members appointed under items (1) | 32 |
| and (2); provided that, if within 30 days following the | 33 |
| Secretary's determination of noncompliance either party | 34 |
| fails to appoint a panel member, or if the parties are | 35 |
| unable to agree on the appointment of the chairman, the |
|
|
|
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LRB094 16692 RSP 51962 b |
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| 1 |
| Secretary shall select the final panel member or may | 2 |
| designated a hearing officer of the Department who shall | 3 |
| preside. | 4 |
| (c) The Assistant Director may issue a letter of reprimand | 5 |
| to a blind vendor who violates program regulations or policy. | 6 |
| Depending upon the seriousness of the alleged violation, the | 7 |
| letter of reprimand may indicate the intention to suspend or | 8 |
| terminate the license of the vendor. All reprimand letters | 9 |
| shall be sent in a medium accessible by the vendor, and shall | 10 |
| be sent by certified mail, return receipt requested. The | 11 |
| Assistant Director must make every reasonable effort to assist | 12 |
| the subject vendor to correct the problem for which the vendor | 13 |
| is reprimanded. No process to suspend or terminate a license | 14 |
| shall be initiated before the vendor is accorded the | 15 |
| opportunity for a full evidentiary hearing as provided under | 16 |
| subsection (a). A vendor may be summarily removed from a | 17 |
| facility only in an emergency. | 18 |
| Section 60. General provisions. | 19 |
| (a) Blind vendors operating vending facilities are subject | 20 |
| to the applicable license or permit requirements of the county | 21 |
| or city in which the facility is located necessary for the | 22 |
| conduct of their business; however, any such license or permit | 23 |
| shall be issued free of charge to vendors licensed by the | 24 |
| Department, and shall not be unreasonably withheld. | 25 |
| (b) Vendors licensed pursuant to this Act are authorized to | 26 |
| keep guide animals with them while operating vending | 27 |
| facilities. | 28 |
| (c) The Director, Assistant Director, and the Committee | 29 |
| shall cooperate in the development of regulations to be | 30 |
| promulgated by the Department regarding life standards for | 31 |
| vending facility equipment. Such regulations shall include, | 32 |
| but are not limited to, the life expectancy of equipment; time | 33 |
| periods within which equipment should be replaced; exceptions | 34 |
| to the replacement time periods for equipment with no service | 35 |
| problem history, and replacement schedules for equipment |
|
|
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LRB094 16692 RSP 51962 b |
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| 1 |
| subject to excessive failures not the fault of the vendor. | 2 |
| (d) The Secretary, through the Director, shall assign | 3 |
| adequate personnel to carry out duties related to the | 4 |
| administration and management of this Act. In selecting | 5 |
| personnel to fill any program position under this subsection, | 6 |
| the Secretary shall ensure that the Committee has full advance | 7 |
| opportunity to review the selections, to submit comments | 8 |
| thereon, and to assess the adequacy of staffing levels for the | 9 |
| program. | 10 |
| (e) The Assistant Director shall provide each vendor access | 11 |
| to: all financial information, his or her performance ratings, | 12 |
| and all other individual personnel documents and data | 13 |
| maintained by the Department. This includes providing each | 14 |
| vendor a written copy of all rules and policies adopted | 15 |
| pursuant to the Act. Upon request, the information shall be | 16 |
| furnished in the medium most accessible by the vendor. | 17 |
| (f) The surviving spouse of a vendor who dies during the | 18 |
| operation of a vending facility under this Act may continue to | 19 |
| operate the facility for a period of 6 months following the | 20 |
| death of the vendor, provided that the surviving spouse is | 21 |
| qualified by experience or training to manage the facility. | 22 |
| Section 65. Program regulations. | 23 |
| (a) The Secretary shall promulgate and adopt necessary | 24 |
| regulations, and do all things necessary and proper to carry | 25 |
| out this Act. The Secretary by delegation shall review these | 26 |
| regulations with the Committee at least every 3 years. | 27 |
| (b) The regulations shall include, but are not limited to, | 28 |
| the following: (1) uniform procedures for vendor licensing and | 29 |
| termination; (2) criteria and standards for selecting vendors | 30 |
| and matching them to facilities to ensure that the most | 31 |
| qualified person is selected; (3) equipment life standards and | 32 |
| service standards for the inventory, repair, and purchase of | 33 |
| equipment; (4) minimum requirements for the establishment of a | 34 |
| vending facility; (5) standards for training, in-service | 35 |
| training, and upward mobility; and (6) policies and procedures |
|
|
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LRB094 16692 RSP 51962 b |
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| 1 |
| for the collection, deposit, reimbursement, and use of all | 2 |
| program income, including vending machine income. | 3 |
| Section 70. Property Survey and Report. | 4 |
| (a) The Department shall survey and report on State | 5 |
| property and vending facilities not later than December 31, | 6 |
| 2005. The report shall contain the following information: | 7 |
| (1) A list of all State property and all federal | 8 |
| buildings or other property within the State that does or | 9 |
| reasonably could accommodate a vending facility as | 10 |
| provided for in this Act or as provided for in the federal | 11 |
| Randolph-Sheppard Act. | 12 |
| (2) For the buildings or locations that have vending | 13 |
| facilities or vending machines in place, an indication of | 14 |
| the facilities operated by licensed blind vendors under the | 15 |
| Business Enterprise Program for the Blind and an indication | 16 |
| of the facilities operated by private entities. | 17 |
| (3) For the vending facilities or vending machines | 18 |
| operated by private entities, an indication of the | 19 |
| facilities from which commissions for the Business | 20 |
| Enterprise Program for the Blind have been or are being | 21 |
| collected. | 22 |
| (4) For the buildings or other property that do not | 23 |
| have vending facilities in place, an indication of the | 24 |
| locations where a vending facility could appropriately be | 25 |
| placed, or the reasons why a vending facility is not | 26 |
| feasible in the building or property. | 27 |
| (b) The Department shall obtain all available information | 28 |
| and conduct a survey, before June 30 of every odd numbered year | 29 |
| after the effective date of this Act. This survey shall | 30 |
| identify but not be limited to the following information: | 31 |
| (1) The number and identity of the buildings owned, | 32 |
| leased, acquired, or occupied by the State. | 33 |
| (2) The number and identity of the State buildings | 34 |
| where vending facilities or vending machines are located. | 35 |
| (3) The number of employees located in or visiting |
|
|
|
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LRB094 16692 RSP 51962 b |
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| 1 |
| these buildings during normal working hours. | 2 |
| (4) The usable interior square footage of the building; | 3 |
| and | 4 |
| (5) Any other information the Department may determine | 5 |
| to be useful in expanding the Business Enterprise Program | 6 |
| for the Blind to the maximum extent feasible consist with | 7 |
| the purposes of this Act. | 8 |
| (c) All State agencies controlling State property or parts | 9 |
| thereof where vending machines or vending facilities are | 10 |
| located must cooperate with the Department by providing | 11 |
| information on the vending machines or facilities at those | 12 |
| locations. This information shall include, but is not limited | 13 |
| to, the terms of contracts for vending, including financial | 14 |
| terms, and the disbursement practices for vending machine | 15 |
| income. The Department shall incorporate this information in | 16 |
| its reports and updates. | 17 |
| (d) The Department shall use the reports and updates | 18 |
| mandated by this Section to develop greater opportunities for | 19 |
| the placement of blind vendors, to increase vending machine | 20 |
| income to the program, and to aid in establishing vending | 21 |
| machines and facilities on State property. | 22 |
| (e) The reports and surveys prepared pursuant to this | 23 |
| Section shall be provided to the Committee and to the | 24 |
| appropriate committees of the General Assembly.
| 25 |
| Section 85. Home rule. A home rule unit may not impose or | 26 |
| collect any occupation or use tax with respect to sales made at | 27 |
| a blind vendor's vending facility. This Section is a denial and | 28 |
| limitation of home rule powers and functions under subsection | 29 |
| (g) of Section 6 of Article VII of the Illinois Constitution.
| 30 |
| (20 ILCS 2420/Act rep.)
| 31 |
| Section 90. The Blind Persons Operating Vending Facilities | 32 |
| Act is repealed. | 33 |
| Section 93. The Use Tax Act is amended by changing Section |
|
|
|
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LRB094 16692 RSP 51962 b |
|
| 1 |
| 3-5 as follows:
| 2 |
| (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
| 3 |
| Sec. 3-5. Exemptions. Use of the following tangible | 4 |
| personal property
is exempt from the tax imposed by this Act:
| 5 |
| (1) Personal property purchased from a corporation, | 6 |
| society, association,
foundation, institution, or | 7 |
| organization, other than a limited liability
company, that is | 8 |
| organized and operated as a not-for-profit service enterprise
| 9 |
| for the benefit of persons 65 years of age or older if the | 10 |
| personal property
was not purchased by the enterprise for the | 11 |
| purpose of resale by the
enterprise.
| 12 |
| (2) Personal property purchased by a not-for-profit | 13 |
| Illinois county
fair association for use in conducting, | 14 |
| operating, or promoting the
county fair.
| 15 |
| (3) Personal property purchased by a not-for-profit
arts or | 16 |
| cultural organization that establishes, by proof required by | 17 |
| the
Department by
rule, that it has received an exemption under | 18 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 19 |
| organized and operated primarily for the
presentation
or | 20 |
| support of arts or cultural programming, activities, or | 21 |
| services. These
organizations include, but are not limited to, | 22 |
| music and dramatic arts
organizations such as symphony | 23 |
| orchestras and theatrical groups, arts and
cultural service | 24 |
| organizations, local arts councils, visual arts organizations,
| 25 |
| and media arts organizations.
On and after the effective date | 26 |
| of this amendatory Act of the 92nd General
Assembly, however, | 27 |
| an entity otherwise eligible for this exemption shall not
make | 28 |
| tax-free purchases unless it has an active identification | 29 |
| number issued by
the Department.
| 30 |
| (4) Personal property purchased by a governmental body, by | 31 |
| a
corporation, society, association, foundation, or | 32 |
| institution organized and
operated exclusively for charitable, | 33 |
| religious, or educational purposes, or
by a not-for-profit | 34 |
| corporation, society, association, foundation,
institution, or | 35 |
| organization that has no compensated officers or employees
and |
|
|
|
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LRB094 16692 RSP 51962 b |
|
| 1 |
| that is organized and operated primarily for the recreation of | 2 |
| persons
55 years of age or older. A limited liability company | 3 |
| may qualify for the
exemption under this paragraph only if the | 4 |
| limited liability company is
organized and operated | 5 |
| exclusively for educational purposes. On and after July
1, | 6 |
| 1987, however, no entity otherwise eligible for this exemption | 7 |
| shall make
tax-free purchases unless it has an active exemption | 8 |
| identification number
issued by the Department.
| 9 |
| (5) Until July 1, 2003, a passenger car that is a | 10 |
| replacement vehicle to
the extent that the
purchase price of | 11 |
| the car is subject to the Replacement Vehicle Tax.
| 12 |
| (6) Until July 1, 2003 and beginning again on September 1, | 13 |
| 2004, graphic arts machinery and equipment, including
repair | 14 |
| and replacement
parts, both new and used, and including that | 15 |
| manufactured on special order,
certified by the purchaser to be | 16 |
| used primarily for graphic arts production,
and including | 17 |
| machinery and equipment purchased for lease.
Equipment | 18 |
| includes chemicals or chemicals acting as catalysts but only if
| 19 |
| the
chemicals or chemicals acting as catalysts effect a direct | 20 |
| and immediate change
upon a graphic arts product.
| 21 |
| (7) Farm chemicals.
| 22 |
| (8) Legal tender, currency, medallions, or gold or silver | 23 |
| coinage issued by
the State of Illinois, the government of the | 24 |
| United States of America, or the
government of any foreign | 25 |
| country, and bullion.
| 26 |
| (9) Personal property purchased from a teacher-sponsored | 27 |
| student
organization affiliated with an elementary or | 28 |
| secondary school located in
Illinois.
| 29 |
| (10) A motor vehicle of the first division, a motor vehicle | 30 |
| of the
second division that is a self-contained motor vehicle | 31 |
| designed or
permanently converted to provide living quarters | 32 |
| for recreational, camping,
or travel use, with direct walk | 33 |
| through to the living quarters from the
driver's seat, or a | 34 |
| motor vehicle of the second division that is of the
van | 35 |
| configuration designed for the transportation of not less than | 36 |
| 7 nor
more than 16 passengers, as defined in Section 1-146 of |
|
|
|
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LRB094 16692 RSP 51962 b |
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| 1 |
| the Illinois
Vehicle Code, that is used for automobile renting, | 2 |
| as defined in the
Automobile Renting Occupation and Use Tax | 3 |
| Act.
| 4 |
| (11) Farm machinery and equipment, both new and used,
| 5 |
| including that manufactured on special order, certified by the | 6 |
| purchaser
to be used primarily for production agriculture or | 7 |
| State or federal
agricultural programs, including individual | 8 |
| replacement parts for
the machinery and equipment, including | 9 |
| machinery and equipment
purchased
for lease,
and including | 10 |
| implements of husbandry defined in Section 1-130 of
the | 11 |
| Illinois Vehicle Code, farm machinery and agricultural | 12 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 13 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 14 |
| but excluding other motor
vehicles required to be
registered | 15 |
| under the Illinois Vehicle Code.
Horticultural polyhouses or | 16 |
| hoop houses used for propagating, growing, or
overwintering | 17 |
| plants shall be considered farm machinery and equipment under
| 18 |
| this item (11).
Agricultural chemical tender tanks and dry | 19 |
| boxes shall include units sold
separately from a motor vehicle | 20 |
| required to be licensed and units sold mounted
on a motor | 21 |
| vehicle required to be licensed if the selling price of the | 22 |
| tender
is separately stated.
| 23 |
| Farm machinery and equipment shall include precision | 24 |
| farming equipment
that is
installed or purchased to be | 25 |
| installed on farm machinery and equipment
including, but not | 26 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 27 |
| or spreaders.
Precision farming equipment includes, but is not | 28 |
| limited to, soil testing
sensors, computers, monitors, | 29 |
| software, global positioning
and mapping systems, and other | 30 |
| such equipment.
| 31 |
| Farm machinery and equipment also includes computers, | 32 |
| sensors, software, and
related equipment used primarily in the
| 33 |
| computer-assisted operation of production agriculture | 34 |
| facilities, equipment,
and
activities such as, but not limited | 35 |
| to,
the collection, monitoring, and correlation of
animal and | 36 |
| crop data for the purpose of
formulating animal diets and |
|
|
|
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LRB094 16692 RSP 51962 b |
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| 1 |
| agricultural chemicals. This item (11) is exempt
from the | 2 |
| provisions of
Section 3-90.
| 3 |
| (12) Fuel and petroleum products sold to or used by an air | 4 |
| common
carrier, certified by the carrier to be used for | 5 |
| consumption, shipment, or
storage in the conduct of its | 6 |
| business as an air common carrier, for a
flight destined for or | 7 |
| returning from a location or locations
outside the United | 8 |
| States without regard to previous or subsequent domestic
| 9 |
| stopovers.
| 10 |
| (13) Proceeds of mandatory service charges separately
| 11 |
| stated on customers' bills for the purchase and consumption of | 12 |
| food and
beverages purchased at retail from a retailer, to the | 13 |
| extent that the proceeds
of the service charge are in fact | 14 |
| turned over as tips or as a substitute
for tips to the | 15 |
| employees who participate directly in preparing, serving,
| 16 |
| hosting or cleaning up the food or beverage function with | 17 |
| respect to which
the service charge is imposed.
| 18 |
| (14) Until July 1, 2003, oil field exploration, drilling, | 19 |
| and production
equipment,
including (i) rigs and parts of rigs, | 20 |
| rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 21 |
| tubular goods,
including casing and drill strings, (iii) pumps | 22 |
| and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 23 |
| individual replacement part for oil
field exploration, | 24 |
| drilling, and production equipment, and (vi) machinery and
| 25 |
| equipment purchased
for lease; but excluding motor vehicles | 26 |
| required to be registered under the
Illinois Vehicle Code.
| 27 |
| (15) Photoprocessing machinery and equipment, including | 28 |
| repair and
replacement parts, both new and used, including that
| 29 |
| manufactured on special order, certified by the purchaser to be | 30 |
| used
primarily for photoprocessing, and including
| 31 |
| photoprocessing machinery and equipment purchased for lease.
| 32 |
| (16) Until July 1, 2003, coal exploration, mining, | 33 |
| offhighway hauling,
processing, maintenance, and reclamation | 34 |
| equipment,
including replacement parts and equipment, and
| 35 |
| including equipment purchased for lease, but excluding motor
| 36 |
| vehicles required to be registered under the Illinois Vehicle |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| Code.
| 2 |
| (17) Until July 1, 2003, distillation machinery and | 3 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 4 |
| retailer, certified by the user to be used
only for the | 5 |
| production of ethyl alcohol that will be used for consumption
| 6 |
| as motor fuel or as a component of motor fuel for the personal | 7 |
| use of the
user, and not subject to sale or resale.
| 8 |
| (18) Manufacturing and assembling machinery and equipment | 9 |
| used
primarily in the process of manufacturing or assembling | 10 |
| tangible
personal property for wholesale or retail sale or | 11 |
| lease, whether that sale
or lease is made directly by the | 12 |
| manufacturer or by some other person,
whether the materials | 13 |
| used in the process are
owned by the manufacturer or some other | 14 |
| person, or whether that sale or
lease is made apart from or as | 15 |
| an incident to the seller's engaging in
the service occupation | 16 |
| of producing machines, tools, dies, jigs,
patterns, gauges, or | 17 |
| other similar items of no commercial value on
special order for | 18 |
| a particular purchaser.
| 19 |
| (19) Personal property delivered to a purchaser or | 20 |
| purchaser's donee
inside Illinois when the purchase order for | 21 |
| that personal property was
received by a florist located | 22 |
| outside Illinois who has a florist located
inside Illinois | 23 |
| deliver the personal property.
| 24 |
| (20) Semen used for artificial insemination of livestock | 25 |
| for direct
agricultural production.
| 26 |
| (21) Horses, or interests in horses, registered with and | 27 |
| meeting the
requirements of any of the
Arabian Horse Club | 28 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 29 |
| Horse Association, United States
Trotting Association, or | 30 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 31 |
| racing for prizes.
| 32 |
| (22) Computers and communications equipment utilized for | 33 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 34 |
| analysis, or treatment of hospital patients purchased by a | 35 |
| lessor who leases
the
equipment, under a lease of one year or | 36 |
| longer executed or in effect at the
time the lessor would |
|
|
|
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LRB094 16692 RSP 51962 b |
|
| 1 |
| otherwise be subject to the tax imposed by this Act, to a
| 2 |
| hospital
that has been issued an active tax exemption | 3 |
| identification number by
the
Department under Section 1g of the | 4 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 5 |
| manner that does not qualify for
this exemption or is used in | 6 |
| any other non-exempt manner, the lessor
shall be liable for the
| 7 |
| tax imposed under this Act or the Service Use Tax Act, as the | 8 |
| case may
be, based on the fair market value of the property at | 9 |
| the time the
non-qualifying use occurs. No lessor shall collect | 10 |
| or attempt to collect an
amount (however
designated) that | 11 |
| purports to reimburse that lessor for the tax imposed by this
| 12 |
| Act or the Service Use Tax Act, as the case may be, if the tax | 13 |
| has not been
paid by the lessor. If a lessor improperly | 14 |
| collects any such amount from the
lessee, the lessee shall have | 15 |
| a legal right to claim a refund of that amount
from the lessor. | 16 |
| If, however, that amount is not refunded to the lessee for
any | 17 |
| reason, the lessor is liable to pay that amount to the | 18 |
| Department.
| 19 |
| (23) Personal property purchased by a lessor who leases the
| 20 |
| property, under
a
lease of
one year or longer executed or in | 21 |
| effect at the time
the lessor would otherwise be subject to the | 22 |
| tax imposed by this Act,
to a governmental body
that has been | 23 |
| issued an active sales tax exemption identification number by | 24 |
| the
Department under Section 1g of the Retailers' Occupation | 25 |
| Tax Act.
If the
property is leased in a manner that does not | 26 |
| qualify for
this exemption
or used in any other non-exempt | 27 |
| manner, the lessor shall be liable for the
tax imposed under | 28 |
| this Act or the Service Use Tax Act, as the case may
be, based | 29 |
| on the fair market value of the property at the time the
| 30 |
| non-qualifying use occurs. No lessor shall collect or attempt | 31 |
| to collect an
amount (however
designated) that purports to | 32 |
| reimburse that lessor for the tax imposed by this
Act or the | 33 |
| Service Use Tax Act, as the case may be, if the tax has not been
| 34 |
| paid by the lessor. If a lessor improperly collects any such | 35 |
| amount from the
lessee, the lessee shall have a legal right to | 36 |
| claim a refund of that amount
from the lessor. If, however, |
|
|
|
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LRB094 16692 RSP 51962 b |
|
| 1 |
| that amount is not refunded to the lessee for
any reason, the | 2 |
| lessor is liable to pay that amount to the Department.
| 3 |
| (24) Beginning with taxable years ending on or after | 4 |
| December
31, 1995
and
ending with taxable years ending on or | 5 |
| before December 31, 2004,
personal property that is
donated for | 6 |
| disaster relief to be used in a State or federally declared
| 7 |
| disaster area in Illinois or bordering Illinois by a | 8 |
| manufacturer or retailer
that is registered in this State to a | 9 |
| corporation, society, association,
foundation, or institution | 10 |
| that has been issued a sales tax exemption
identification | 11 |
| number by the Department that assists victims of the disaster
| 12 |
| who reside within the declared disaster area.
| 13 |
| (25) Beginning with taxable years ending on or after | 14 |
| December
31, 1995 and
ending with taxable years ending on or | 15 |
| before December 31, 2004, personal
property that is used in the | 16 |
| performance of infrastructure repairs in this
State, including | 17 |
| but not limited to municipal roads and streets, access roads,
| 18 |
| bridges, sidewalks, waste disposal systems, water and sewer | 19 |
| line extensions,
water distribution and purification | 20 |
| facilities, storm water drainage and
retention facilities, and | 21 |
| sewage treatment facilities, resulting from a State
or | 22 |
| federally declared disaster in Illinois or bordering Illinois | 23 |
| when such
repairs are initiated on facilities located in the | 24 |
| declared disaster area
within 6 months after the disaster.
| 25 |
| (26) Beginning July 1, 1999, game or game birds purchased | 26 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 27 |
| game hunting area" as those terms are
used in
the Wildlife Code | 28 |
| or at a hunting enclosure approved through rules adopted by
the
| 29 |
| Department of Natural Resources. This paragraph is exempt from | 30 |
| the provisions
of
Section 3-90.
| 31 |
| (27) A motor vehicle, as that term is defined in Section | 32 |
| 1-146
of the
Illinois
Vehicle Code, that is donated to a | 33 |
| corporation, limited liability company,
society, association, | 34 |
| foundation, or institution that is determined by the
Department | 35 |
| to be organized and operated exclusively for educational | 36 |
| purposes.
For purposes of this exemption, "a corporation, |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| limited liability company,
society, association, foundation, | 2 |
| or institution organized and operated
exclusively for | 3 |
| educational purposes" means all tax-supported public schools,
| 4 |
| private schools that offer systematic instruction in useful | 5 |
| branches of
learning by methods common to public schools and | 6 |
| that compare favorably in
their scope and intensity with the | 7 |
| course of study presented in tax-supported
schools, and | 8 |
| vocational or technical schools or institutes organized and
| 9 |
| operated exclusively to provide a course of study of not less | 10 |
| than 6 weeks
duration and designed to prepare individuals to | 11 |
| follow a trade or to pursue a
manual, technical, mechanical, | 12 |
| industrial, business, or commercial
occupation.
| 13 |
| (28) Beginning January 1, 2000, personal property, | 14 |
| including
food,
purchased through fundraising
events for the | 15 |
| benefit of
a public or private elementary or
secondary school, | 16 |
| a group of those schools, or one or more school
districts if | 17 |
| the events are
sponsored by an entity recognized by the school | 18 |
| district that consists
primarily of volunteers and includes
| 19 |
| parents and teachers of the school children. This paragraph | 20 |
| does not apply
to fundraising
events (i) for the benefit of | 21 |
| private home instruction or (ii)
for which the fundraising | 22 |
| entity purchases the personal property sold at
the events from | 23 |
| another individual or entity that sold the property for the
| 24 |
| purpose of resale by the fundraising entity and that
profits | 25 |
| from the sale to the
fundraising entity. This paragraph is | 26 |
| exempt
from the provisions
of Section 3-90.
| 27 |
| (29) Beginning January 1, 2000 and through December 31, | 28 |
| 2001, new or
used automatic vending
machines that prepare and | 29 |
| serve hot food and beverages, including coffee, soup,
and
other | 30 |
| items, and replacement parts for these machines.
Beginning | 31 |
| January 1,
2002 and through June 30, 2003, machines and parts | 32 |
| for machines used in
commercial, coin-operated amusement and | 33 |
| vending business if a use or occupation
tax is paid on the | 34 |
| gross receipts derived from the use of the commercial,
| 35 |
| coin-operated amusement and vending machines.
This
paragraph
| 36 |
| is exempt from the provisions of Section 3-90.
|
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| (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 | 35 |
| Section 3-90.
| 36 |
| (32) Beginning on
the effective date of this amendatory Act |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| of the 92nd General Assembly,
personal property purchased by a | 2 |
| lessor who leases the property,
under a lease of one year or | 3 |
| longer executed or in effect at the time the
lessor would | 4 |
| otherwise be subject to the tax imposed by this Act, to a
| 5 |
| governmental body that has been issued an active sales tax | 6 |
| exemption
identification number by the Department under | 7 |
| Section 1g of the Retailers'
Occupation Tax Act. If the | 8 |
| property is leased in a manner that does not
qualify for this | 9 |
| exemption or used in any other nonexempt manner, the lessor
| 10 |
| shall be liable for the tax imposed under this Act or the | 11 |
| Service Use Tax Act,
as the case may be, based on the fair | 12 |
| market value of the property at the time
the nonqualifying use | 13 |
| occurs. No lessor shall collect or attempt to collect
an amount | 14 |
| (however designated) that purports to reimburse that lessor for | 15 |
| the
tax imposed by this Act or the Service Use Tax Act, as the | 16 |
| case may be, if the
tax has not been paid by the lessor. If a | 17 |
| lessor improperly collects any such
amount from the lessee, the | 18 |
| lessee shall have a legal right to claim a refund
of that | 19 |
| amount from the lessor. If, however, that amount is not | 20 |
| refunded to
the lessee for any reason, the lessor is liable to | 21 |
| pay that amount to the
Department. This paragraph is exempt | 22 |
| from the provisions of Section 3-90.
| 23 |
| (33) On and after July 1, 2003 and through June 30, 2004, | 24 |
| the use in this State of motor vehicles of
the second division | 25 |
| with a gross vehicle weight in excess of 8,000 pounds and
that | 26 |
| are subject to the commercial distribution fee imposed under | 27 |
| Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 28 |
| 1, 2004 and through June 30, 2005, the use in this State of | 29 |
| motor vehicles of the second division: (i) with a gross vehicle | 30 |
| weight rating in excess of 8,000 pounds; (ii) that are subject | 31 |
| to the commercial distribution fee imposed under Section | 32 |
| 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 33 |
| primarily used for commercial purposes. Through June 30, 2005, | 34 |
| this exemption applies to repair and
replacement parts added | 35 |
| after the initial purchase of such a motor vehicle if
that | 36 |
| motor
vehicle is used in a manner that would qualify for the |
|
|
|
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|
| 1 |
| rolling stock exemption
otherwise provided for in this Act. For | 2 |
| purposes of this paragraph, the term "used for commercial | 3 |
| purposes" means the transportation of persons or property in | 4 |
| furtherance of any commercial or industrial enterprise, | 5 |
| whether for-hire or not.
| 6 |
| (34) Beginning on and after the effective date of this | 7 |
| amendatory Act of the 94th General assembly, personal property | 8 |
| purchased from a blind vendor's vending facility licensed by | 9 |
| the Department of Human Services under the Blind Vendors Act. | 10 |
| This paragraph is exempt
from the provisions
of Section 3-90.
| 11 |
| (Source: P.A. 92-35, eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, | 12 |
| eff. 8-10-01; 92-484, eff. 8-23-01; 92-651, eff. 7-11-02; | 13 |
| 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, eff. 7-30-04; | 14 |
| 93-1033, eff. 9-3-04; revised 10-21-04.)
| 15 |
| Section 94. The Service Use Tax Act is amended by changing | 16 |
| Section 3-5 as follows:
| 17 |
| (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| 18 |
| Sec. 3-5. Exemptions. Use of the following tangible | 19 |
| personal property
is exempt from the tax imposed by this Act:
| 20 |
| (1) Personal property purchased from a corporation, | 21 |
| society,
association, foundation, institution, or | 22 |
| organization, other than a limited
liability company, that is | 23 |
| organized and operated as a not-for-profit service
enterprise | 24 |
| for the benefit of persons 65 years of age or older if the | 25 |
| personal
property was not purchased by the enterprise for the | 26 |
| purpose of resale by the
enterprise.
| 27 |
| (2) Personal property purchased by a non-profit Illinois | 28 |
| county fair
association for use in conducting, operating, or | 29 |
| promoting the county fair.
| 30 |
| (3) Personal property purchased by a not-for-profit arts
or | 31 |
| cultural
organization that establishes, by proof required by | 32 |
| the Department by rule,
that it has received an exemption under | 33 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 34 |
| organized and operated primarily for the
presentation
or |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| support of arts or cultural programming, activities, or | 2 |
| services. These
organizations include, but are not limited to, | 3 |
| music and dramatic arts
organizations such as symphony | 4 |
| orchestras and theatrical groups, arts and
cultural service | 5 |
| organizations, local arts councils, visual arts organizations,
| 6 |
| and media arts organizations.
On and after the effective date | 7 |
| of this amendatory Act of the 92nd General
Assembly, however, | 8 |
| an entity otherwise eligible for this exemption shall not
make | 9 |
| tax-free purchases unless it has an active identification | 10 |
| number issued by
the Department.
| 11 |
| (4) Legal tender, currency, medallions, or gold or silver | 12 |
| coinage issued
by the State of Illinois, the government of the | 13 |
| United States of America,
or the government of any foreign | 14 |
| country, and bullion.
| 15 |
| (5) Until July 1, 2003 and beginning again on September 1, | 16 |
| 2004, graphic arts machinery and equipment, including
repair | 17 |
| and
replacement parts, both new and used, and including that | 18 |
| manufactured on
special order or purchased for lease, certified | 19 |
| by the purchaser to be used
primarily for graphic arts | 20 |
| production.
Equipment includes chemicals or
chemicals acting | 21 |
| as catalysts but only if
the chemicals or chemicals acting as | 22 |
| catalysts effect a direct and immediate
change upon a graphic | 23 |
| arts product.
| 24 |
| (6) Personal property purchased from a teacher-sponsored | 25 |
| student
organization affiliated with an elementary or | 26 |
| secondary school located
in Illinois.
| 27 |
| (7) Farm machinery and equipment, both new and used, | 28 |
| including that
manufactured on special order, certified by the | 29 |
| purchaser to be used
primarily for production agriculture or | 30 |
| State or federal agricultural
programs, including individual | 31 |
| replacement parts for the machinery and
equipment, including | 32 |
| machinery and equipment purchased for lease,
and including | 33 |
| implements of husbandry defined in Section 1-130 of
the | 34 |
| Illinois Vehicle Code, farm machinery and agricultural | 35 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 36 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
|
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| but
excluding other motor vehicles required to be registered | 2 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or | 3 |
| hoop houses used for propagating, growing, or
overwintering | 4 |
| plants shall be considered farm machinery and equipment under
| 5 |
| this item (7).
Agricultural chemical tender tanks and dry boxes | 6 |
| shall include units sold
separately from a motor vehicle | 7 |
| required to be licensed and units sold mounted
on a motor | 8 |
| vehicle required to be licensed if the selling price of the | 9 |
| tender
is separately stated.
| 10 |
| Farm machinery and equipment shall include precision | 11 |
| farming equipment
that is
installed or purchased to be | 12 |
| installed on farm machinery and equipment
including, but not | 13 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 14 |
| or spreaders.
Precision farming equipment includes, but is not | 15 |
| limited to,
soil testing sensors, computers, monitors, | 16 |
| software, global positioning
and mapping systems, and other | 17 |
| such equipment.
| 18 |
| Farm machinery and equipment also includes computers, | 19 |
| sensors, software, and
related equipment used primarily in the
| 20 |
| computer-assisted operation of production agriculture | 21 |
| facilities, equipment,
and activities such as, but
not limited | 22 |
| to,
the collection, monitoring, and correlation of
animal and | 23 |
| crop data for the purpose of
formulating animal diets and | 24 |
| agricultural chemicals. This item (7) is exempt
from the | 25 |
| provisions of
Section 3-75.
| 26 |
| (8) Fuel and petroleum products sold to or used by an air | 27 |
| common
carrier, certified by the carrier to be used for | 28 |
| consumption, shipment, or
storage in the conduct of its | 29 |
| business as an air common carrier, for a
flight destined for or | 30 |
| returning from a location or locations
outside the United | 31 |
| States without regard to previous or subsequent domestic
| 32 |
| stopovers.
| 33 |
| (9) Proceeds of mandatory service charges separately | 34 |
| stated on
customers' bills for the purchase and consumption of | 35 |
| food and beverages
acquired as an incident to the purchase of a | 36 |
| service from a serviceman, to
the extent that the proceeds of |
|
|
|
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LRB094 16692 RSP 51962 b |
|
| 1 |
| the service charge are in fact
turned over as tips or as a | 2 |
| substitute for tips to the employees who
participate directly | 3 |
| in preparing, serving, hosting or cleaning up the
food or | 4 |
| beverage function with respect to which the service charge is | 5 |
| imposed.
| 6 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 7 |
| and production
equipment, including
(i) rigs and parts of rigs, | 8 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 9 |
| tubular goods, including casing and
drill strings, (iii) pumps | 10 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 11 |
| individual replacement part for oil field exploration,
| 12 |
| drilling, and production equipment, and (vi) machinery and | 13 |
| equipment purchased
for lease; but
excluding motor vehicles | 14 |
| required to be registered under the Illinois
Vehicle Code.
| 15 |
| (11) Proceeds from the sale of photoprocessing machinery | 16 |
| and
equipment, including repair and replacement parts, both new | 17 |
| and
used, including that manufactured on special order, | 18 |
| certified by the
purchaser to be used primarily for | 19 |
| photoprocessing, and including
photoprocessing machinery and | 20 |
| equipment purchased for lease.
| 21 |
| (12) Until July 1, 2003, coal exploration, mining, | 22 |
| offhighway hauling,
processing,
maintenance, and reclamation | 23 |
| equipment, including
replacement parts and equipment, and | 24 |
| including
equipment purchased for lease, but excluding motor | 25 |
| vehicles required to be
registered under the Illinois Vehicle | 26 |
| Code.
| 27 |
| (13) Semen used for artificial insemination of livestock | 28 |
| for direct
agricultural production.
| 29 |
| (14) Horses, or interests in horses, registered with and | 30 |
| meeting the
requirements of any of the
Arabian Horse Club | 31 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 32 |
| Horse Association, United States
Trotting Association, or | 33 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 34 |
| racing for prizes.
| 35 |
| (15) Computers and communications equipment utilized for | 36 |
| any
hospital
purpose
and equipment used in the diagnosis,
|
|
|
|
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LRB094 16692 RSP 51962 b |
|
| 1 |
| analysis, or treatment of hospital patients purchased by a | 2 |
| lessor who leases
the
equipment, under a lease of one year or | 3 |
| longer executed or in effect at the
time
the lessor would | 4 |
| otherwise be subject to the tax imposed by this Act,
to a
| 5 |
| hospital
that has been issued an active tax exemption | 6 |
| identification number by the
Department under Section 1g of the | 7 |
| Retailers' Occupation Tax Act.
If the
equipment is leased in a | 8 |
| manner that does not qualify for
this exemption
or is used in | 9 |
| any other non-exempt manner,
the lessor shall be liable for the
| 10 |
| tax imposed under this Act or the Use Tax Act, as the case may
| 11 |
| be, based on the fair market value of the property at the time | 12 |
| the
non-qualifying use occurs. No lessor shall collect or | 13 |
| attempt to collect an
amount (however
designated) that purports | 14 |
| to reimburse that lessor for the tax imposed by this
Act or the | 15 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 16 |
| the lessor. If a lessor improperly collects any such amount | 17 |
| from the
lessee, the lessee shall have a legal right to claim a | 18 |
| refund of that amount
from the lessor. If, however, that amount | 19 |
| is not refunded to the lessee for
any reason, the lessor is | 20 |
| liable to pay that amount to the Department.
| 21 |
| (16) Personal property purchased by a lessor who leases the
| 22 |
| property, under
a
lease of one year or longer executed or in | 23 |
| effect at the time
the lessor would otherwise be subject to the | 24 |
| tax imposed by this Act,
to a governmental body
that has been | 25 |
| issued an active tax exemption identification number by the
| 26 |
| Department under Section 1g of the Retailers' Occupation Tax | 27 |
| Act.
If the
property is leased in a manner that does not | 28 |
| qualify for
this exemption
or is used in any other non-exempt | 29 |
| manner,
the lessor shall be liable for the
tax imposed under | 30 |
| this Act or the Use Tax Act, as the case may
be, based on the | 31 |
| fair market value of the property at the time the
| 32 |
| non-qualifying use occurs. No lessor shall collect or attempt | 33 |
| to collect an
amount (however
designated) that purports to | 34 |
| reimburse that lessor for the tax imposed by this
Act or the | 35 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 36 |
| the lessor. If a lessor improperly collects any such amount |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| from the
lessee, the lessee shall have a legal right to claim a | 2 |
| refund of that amount
from the lessor. If, however, that amount | 3 |
| is not refunded to the lessee for
any reason, the lessor is | 4 |
| liable to pay that amount to the Department.
| 5 |
| (17) Beginning with taxable years ending on or after | 6 |
| December
31,
1995
and
ending with taxable years ending on or | 7 |
| before December 31, 2004,
personal property that is
donated for | 8 |
| disaster relief to be used in a State or federally declared
| 9 |
| disaster area in Illinois or bordering Illinois by a | 10 |
| manufacturer or retailer
that is registered in this State to a | 11 |
| corporation, society, association,
foundation, or institution | 12 |
| that has been issued a sales tax exemption
identification | 13 |
| number by the Department that assists victims of the disaster
| 14 |
| who reside within the declared disaster area.
| 15 |
| (18) Beginning with taxable years ending on or after | 16 |
| December
31, 1995 and
ending with taxable years ending on or | 17 |
| before December 31, 2004, personal
property that is used in the | 18 |
| performance of infrastructure repairs in this
State, including | 19 |
| but not limited to municipal roads and streets, access roads,
| 20 |
| bridges, sidewalks, waste disposal systems, water and sewer | 21 |
| line extensions,
water distribution and purification | 22 |
| facilities, storm water drainage and
retention facilities, and | 23 |
| sewage treatment facilities, resulting from a State
or | 24 |
| federally declared disaster in Illinois or bordering Illinois | 25 |
| when such
repairs are initiated on facilities located in the | 26 |
| declared disaster area
within 6 months after the disaster.
| 27 |
| (19) Beginning July 1, 1999, game or game birds purchased | 28 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 29 |
| game hunting area" as those terms are
used in
the Wildlife Code | 30 |
| or at a hunting enclosure approved through rules adopted by
the
| 31 |
| Department of Natural Resources. This paragraph is exempt from | 32 |
| the provisions
of
Section 3-75.
| 33 |
| (20) A motor vehicle, as that term is defined in Section | 34 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 35 |
| corporation, limited liability
company, society, association, | 36 |
| foundation, or institution that is determined by
the Department |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| to be organized and operated exclusively for educational
| 2 |
| purposes. For purposes of this exemption, "a corporation, | 3 |
| limited liability
company, society, association, foundation, | 4 |
| or institution organized and
operated
exclusively for | 5 |
| educational purposes" means all tax-supported public schools,
| 6 |
| private schools that offer systematic instruction in useful | 7 |
| branches of
learning by methods common to public schools and | 8 |
| that compare favorably in
their scope and intensity with the | 9 |
| course of study presented in tax-supported
schools, and | 10 |
| vocational or technical schools or institutes organized and
| 11 |
| operated exclusively to provide a course of study of not less | 12 |
| than 6 weeks
duration and designed to prepare individuals to | 13 |
| follow a trade or to pursue a
manual, technical, mechanical, | 14 |
| industrial, business, or commercial
occupation.
| 15 |
| (21) Beginning January 1, 2000, personal property, | 16 |
| including
food,
purchased through fundraising
events for the | 17 |
| benefit of
a public or private elementary or
secondary school, | 18 |
| a group of those schools, or one or more school
districts if | 19 |
| the events are
sponsored by an entity recognized by the school | 20 |
| district that consists
primarily of volunteers and includes
| 21 |
| parents and teachers of the school children. This paragraph | 22 |
| does not apply
to fundraising
events (i) for the benefit of | 23 |
| private home instruction or (ii)
for which the fundraising | 24 |
| entity purchases the personal property sold at
the events from | 25 |
| another individual or entity that sold the property for the
| 26 |
| purpose of resale by the fundraising entity and that
profits | 27 |
| from the sale to the
fundraising entity. This paragraph is | 28 |
| exempt
from the provisions
of Section 3-75.
| 29 |
| (22) Beginning January 1, 2000
and through December 31, | 30 |
| 2001, new or used automatic vending
machines that prepare and | 31 |
| serve hot food and beverages, including coffee, soup,
and
other | 32 |
| items, and replacement parts for these machines.
Beginning | 33 |
| January 1,
2002 and through June 30, 2003, machines and parts | 34 |
| for machines used in
commercial, coin-operated
amusement
and | 35 |
| vending business if a use or occupation tax is paid on the | 36 |
| gross receipts
derived from
the use of the commercial, |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| coin-operated amusement and vending machines.
This
paragraph
| 2 |
| is exempt from the provisions of Section 3-75.
| 3 |
| (23) Food for human consumption that is to be consumed off | 4 |
| the
premises
where it is sold (other than alcoholic beverages, | 5 |
| soft drinks, and food that
has been prepared for immediate | 6 |
| consumption) and prescription and
nonprescription medicines, | 7 |
| drugs, medical appliances, and insulin, urine
testing | 8 |
| materials, syringes, and needles used by diabetics, for human | 9 |
| use, when
purchased for use by a person receiving medical | 10 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 11 |
| resides in a licensed long-term care facility,
as defined in | 12 |
| the Nursing Home Care Act.
| 13 |
| (24) Beginning on the effective date of this amendatory Act | 14 |
| of the 92nd
General Assembly, computers and communications | 15 |
| equipment
utilized for any hospital purpose and equipment used | 16 |
| in the diagnosis,
analysis, or treatment of hospital patients | 17 |
| purchased by a lessor who leases
the equipment, under a lease | 18 |
| of one year or longer executed or in effect at the
time the | 19 |
| lessor would otherwise be subject to the tax imposed by this | 20 |
| Act, to a
hospital that has been issued an active tax exemption | 21 |
| identification number by
the Department under Section 1g of the | 22 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 23 |
| manner that does not qualify for this exemption or is
used in | 24 |
| any other nonexempt manner, the lessor shall be liable for the
| 25 |
| tax imposed under this Act or the Use Tax Act, as the case may | 26 |
| be, based on the
fair market value of the property at the time | 27 |
| the nonqualifying use occurs.
No lessor shall collect or | 28 |
| attempt to collect an amount (however
designated) that purports | 29 |
| to reimburse that lessor for the tax imposed by this
Act or the | 30 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 31 |
| the lessor. If a lessor improperly collects any such amount | 32 |
| from the
lessee, the lessee shall have a legal right to claim a | 33 |
| refund of that amount
from the lessor. If, however, that amount | 34 |
| is not refunded to the lessee for
any reason, the lessor is | 35 |
| liable to pay that amount to the Department.
This paragraph is | 36 |
| exempt from the provisions of Section 3-75.
|
|
|
|
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LRB094 16692 RSP 51962 b |
|
| 1 |
| (25) Beginning
on the effective date of this amendatory Act | 2 |
| of the 92nd General Assembly,
personal property purchased by a | 3 |
| lessor
who leases the property, under a lease of one year or | 4 |
| longer executed or in
effect at the time the lessor would | 5 |
| otherwise be subject to the tax imposed by
this Act, to a | 6 |
| governmental body that has been issued an active tax exemption
| 7 |
| identification number by the Department under Section 1g of the | 8 |
| Retailers'
Occupation Tax Act. If the property is leased in a | 9 |
| manner that does not
qualify for this exemption or is used in | 10 |
| any other nonexempt manner, the
lessor shall be liable for the | 11 |
| tax imposed under this Act or the Use Tax Act,
as the case may | 12 |
| be, based on the fair market value of the property at the time
| 13 |
| the nonqualifying use occurs. No lessor shall collect or | 14 |
| attempt to collect
an amount (however designated) that purports | 15 |
| to reimburse that lessor for the
tax imposed by this Act or the | 16 |
| Use Tax Act, as the case may be, if the tax has
not been paid by | 17 |
| the lessor. If a lessor improperly collects any such amount
| 18 |
| from the lessee, the lessee shall have a legal right to claim a | 19 |
| refund of that
amount from the lessor. If, however, that amount | 20 |
| is not refunded to the lessee
for any reason, the lessor is | 21 |
| liable to pay that amount to the Department.
This paragraph is | 22 |
| exempt from the provisions of Section 3-75. | 23 |
| (26) Beginning on and after the effective date of this | 24 |
| amendatory Act of the 94th General assembly, personal property | 25 |
| purchased from a blind vendor's vending facility licensed by | 26 |
| the Department of Human Services under the Blind Vendors Act. | 27 |
| This paragraph is exempt
from the provisions
of Section 3-75.
| 28 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 29 |
| eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | 30 |
| 92-651, eff. 7-11-02; 93-24, eff. 6-20-03; 93-840, eff. | 31 |
| 7-30-04.)
| 32 |
| Section 95. The Service Occupation Tax Act is amended by | 33 |
| changing Section 3-5 as follows:
| 34 |
| (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
|
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| Sec. 3-5. Exemptions. The following tangible personal | 2 |
| property is
exempt from the tax imposed by this Act:
| 3 |
| (1) Personal property sold by a corporation, society, | 4 |
| association,
foundation, institution, or organization, other | 5 |
| than a limited liability
company, that is organized and | 6 |
| operated as a not-for-profit service enterprise
for the benefit | 7 |
| of persons 65 years of age or older if the personal property
| 8 |
| was not purchased by the enterprise for the purpose of resale | 9 |
| by the
enterprise.
| 10 |
| (2) Personal property purchased by a not-for-profit | 11 |
| Illinois county fair
association for use in conducting, | 12 |
| operating, or promoting the county fair.
| 13 |
| (3) Personal property purchased by any not-for-profit
arts | 14 |
| or cultural organization that establishes, by proof required by | 15 |
| the
Department by
rule, that it has received an exemption under | 16 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 17 |
| organized and operated primarily for the
presentation
or | 18 |
| support of arts or cultural programming, activities, or | 19 |
| services. These
organizations include, but are not limited to, | 20 |
| music and dramatic arts
organizations such as symphony | 21 |
| orchestras and theatrical groups, arts and
cultural service | 22 |
| organizations, local arts councils, visual arts organizations,
| 23 |
| and media arts organizations.
On and after the effective date | 24 |
| of this amendatory Act of the 92nd General
Assembly, however, | 25 |
| an entity otherwise eligible for this exemption shall not
make | 26 |
| tax-free purchases unless it has an active identification | 27 |
| number issued by
the Department.
| 28 |
| (4) Legal tender, currency, medallions, or gold or silver | 29 |
| coinage
issued by the State of Illinois, the government of the | 30 |
| United States of
America, or the government of any foreign | 31 |
| country, and bullion.
| 32 |
| (5) Until July 1, 2003 and beginning again on September 1, | 33 |
| 2004, graphic arts machinery and equipment, including
repair | 34 |
| and
replacement parts, both new and used, and including that | 35 |
| manufactured on
special order or purchased for lease, certified | 36 |
| by the purchaser to be used
primarily for graphic arts |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| production.
Equipment includes chemicals or chemicals acting | 2 |
| as catalysts but only if
the
chemicals or chemicals acting as | 3 |
| catalysts effect a direct and immediate change
upon a graphic | 4 |
| arts product.
| 5 |
| (6) Personal property sold by a teacher-sponsored student | 6 |
| organization
affiliated with an elementary or secondary school | 7 |
| located in Illinois.
| 8 |
| (7) Farm machinery and equipment, both new and used, | 9 |
| including that
manufactured on special order, certified by the | 10 |
| purchaser to be used
primarily for production agriculture or | 11 |
| State or federal agricultural
programs, including individual | 12 |
| replacement parts for the machinery and
equipment, including | 13 |
| machinery and equipment purchased for lease,
and including | 14 |
| implements of husbandry defined in Section 1-130 of
the | 15 |
| Illinois Vehicle Code, farm machinery and agricultural | 16 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 17 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 18 |
| but
excluding other motor vehicles required to be registered | 19 |
| under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 20 |
| hoop houses used for propagating, growing, or
overwintering | 21 |
| plants shall be considered farm machinery and equipment under
| 22 |
| this item (7).
Agricultural chemical tender tanks and dry boxes | 23 |
| shall include units sold
separately from a motor vehicle | 24 |
| required to be licensed and units sold mounted
on a motor | 25 |
| vehicle required to be licensed if the selling price of the | 26 |
| tender
is separately stated.
| 27 |
| Farm machinery and equipment shall include precision | 28 |
| farming equipment
that is
installed or purchased to be | 29 |
| installed on farm machinery and equipment
including, but not | 30 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 31 |
| or spreaders.
Precision farming equipment includes, but is not | 32 |
| limited to,
soil testing sensors, computers, monitors, | 33 |
| software, global positioning
and mapping systems, and other | 34 |
| such equipment.
| 35 |
| Farm machinery and equipment also includes computers, | 36 |
| sensors, software, and
related equipment used primarily in the
|
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| computer-assisted operation of production agriculture | 2 |
| facilities, equipment,
and activities such as, but
not limited | 3 |
| to,
the collection, monitoring, and correlation of
animal and | 4 |
| crop data for the purpose of
formulating animal diets and | 5 |
| agricultural chemicals. This item (7) is exempt
from the | 6 |
| provisions of
Section 3-55.
| 7 |
| (8) Fuel and petroleum products sold to or used by an air | 8 |
| common
carrier, certified by the carrier to be used for | 9 |
| consumption, shipment,
or storage in the conduct of its | 10 |
| business as an air common carrier, for
a flight destined for or | 11 |
| returning from a location or locations
outside the United | 12 |
| States without regard to previous or subsequent domestic
| 13 |
| stopovers.
| 14 |
| (9) Proceeds of mandatory service charges separately
| 15 |
| stated on customers' bills for the purchase and consumption of | 16 |
| food and
beverages, to the extent that the proceeds of the | 17 |
| service charge are in fact
turned over as tips or as a | 18 |
| substitute for tips to the employees who
participate directly | 19 |
| in preparing, serving, hosting or cleaning up the
food or | 20 |
| beverage function with respect to which the service charge is | 21 |
| imposed.
| 22 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 23 |
| and production
equipment,
including (i) rigs and parts of rigs, | 24 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 25 |
| tubular goods, including casing and
drill strings, (iii) pumps | 26 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 27 |
| individual replacement part for oil field exploration,
| 28 |
| drilling, and production equipment, and (vi) machinery and | 29 |
| equipment purchased
for lease; but
excluding motor vehicles | 30 |
| required to be registered under the Illinois
Vehicle Code.
| 31 |
| (11) Photoprocessing machinery and equipment, including | 32 |
| repair and
replacement parts, both new and used, including that | 33 |
| manufactured on
special order, certified by the purchaser to be | 34 |
| used primarily for
photoprocessing, and including | 35 |
| photoprocessing machinery and equipment
purchased for lease.
| 36 |
| (12) Until July 1, 2003, coal exploration, mining, |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| offhighway hauling,
processing,
maintenance, and reclamation | 2 |
| equipment, including
replacement parts and equipment, and | 3 |
| including
equipment
purchased for lease, but excluding motor | 4 |
| vehicles required to be registered
under the Illinois Vehicle | 5 |
| Code.
| 6 |
| (13) Food for human consumption that is to be consumed off | 7 |
| the premises
where it is sold (other than alcoholic beverages, | 8 |
| soft drinks and food that
has been prepared for immediate | 9 |
| consumption) and prescription and
non-prescription medicines, | 10 |
| drugs, medical appliances, and insulin, urine
testing | 11 |
| materials, syringes, and needles used by diabetics, for human | 12 |
| use,
when purchased for use by a person receiving medical | 13 |
| assistance under
Article 5 of the Illinois Public Aid Code who | 14 |
| resides in a licensed
long-term care facility, as defined in | 15 |
| the Nursing Home Care Act.
| 16 |
| (14) Semen used for artificial insemination of livestock | 17 |
| for direct
agricultural production.
| 18 |
| (15) 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
| 21 |
| Horse Association, United States
Trotting Association, or | 22 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 23 |
| racing for prizes.
| 24 |
| (16) Computers and communications equipment utilized for | 25 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 26 |
| analysis, or treatment of hospital patients sold to a lessor | 27 |
| who leases the
equipment, under a lease of one year or longer | 28 |
| executed or in effect at the
time of the purchase, to a
| 29 |
| hospital
that has been issued an active tax exemption | 30 |
| identification number by the
Department under Section 1g of the | 31 |
| Retailers' Occupation Tax Act.
| 32 |
| (17) Personal property sold to a lessor who leases the
| 33 |
| property, under a
lease of one year or longer executed or in | 34 |
| effect at the time of the purchase,
to a governmental body
that | 35 |
| has been issued an active tax exemption identification number | 36 |
| by the
Department under Section 1g of the Retailers' Occupation |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| Tax Act.
| 2 |
| (18) Beginning with taxable years ending on or after | 3 |
| December
31, 1995
and
ending with taxable years ending on or | 4 |
| before December 31, 2004,
personal property that is
donated for | 5 |
| disaster relief to be used in a State or federally declared
| 6 |
| disaster area in Illinois or bordering Illinois by a | 7 |
| manufacturer or retailer
that is registered in this State to a | 8 |
| corporation, society, association,
foundation, or institution | 9 |
| that has been issued a sales tax exemption
identification | 10 |
| number by the Department that assists victims of the disaster
| 11 |
| who reside within the declared disaster area.
| 12 |
| (19) Beginning with taxable years ending on or after | 13 |
| December
31, 1995 and
ending with taxable years ending on or | 14 |
| before December 31, 2004, personal
property that is used in the | 15 |
| performance of infrastructure repairs in this
State, including | 16 |
| but not limited to municipal roads and streets, access roads,
| 17 |
| bridges, sidewalks, waste disposal systems, water and sewer | 18 |
| line extensions,
water distribution and purification | 19 |
| facilities, storm water drainage and
retention facilities, and | 20 |
| sewage treatment facilities, resulting from a State
or | 21 |
| federally declared disaster in Illinois or bordering Illinois | 22 |
| when such
repairs are initiated on facilities located in the | 23 |
| declared disaster area
within 6 months after the disaster.
| 24 |
| (20) Beginning July 1, 1999, game or game birds sold at a | 25 |
| "game breeding
and
hunting preserve area" or an "exotic game | 26 |
| hunting area" as those terms are used
in the
Wildlife Code or | 27 |
| at a hunting enclosure approved through rules adopted by the
| 28 |
| Department of Natural Resources. This paragraph is exempt from | 29 |
| the provisions
of
Section 3-55.
| 30 |
| (21) A motor vehicle, as that term is defined in Section | 31 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 32 |
| corporation, limited liability
company, society, association, | 33 |
| foundation, or institution that is determined by
the Department | 34 |
| to be organized and operated exclusively for educational
| 35 |
| purposes. For purposes of this exemption, "a corporation, | 36 |
| limited liability
company, society, association, foundation, |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| or institution organized and
operated
exclusively for | 2 |
| educational purposes" means all tax-supported public schools,
| 3 |
| private schools that offer systematic instruction in useful | 4 |
| branches of
learning by methods common to public schools and | 5 |
| that compare favorably in
their scope and intensity with the | 6 |
| course of study presented in tax-supported
schools, and | 7 |
| vocational or technical schools or institutes organized and
| 8 |
| operated exclusively to provide a course of study of not less | 9 |
| than 6 weeks
duration and designed to prepare individuals to | 10 |
| follow a trade or to pursue a
manual, technical, mechanical, | 11 |
| industrial, business, or commercial
occupation.
| 12 |
| (22) Beginning January 1, 2000, personal property, | 13 |
| including
food,
purchased through fundraising
events for the | 14 |
| benefit of
a public or private elementary or
secondary school, | 15 |
| a group of those schools, or one or more school
districts if | 16 |
| the events are
sponsored by an entity recognized by the school | 17 |
| district that consists
primarily of volunteers and includes
| 18 |
| parents and teachers of the school children. This paragraph | 19 |
| does not apply
to fundraising
events (i) for the benefit of | 20 |
| private home instruction or (ii)
for which the fundraising | 21 |
| entity purchases the personal property sold at
the events from | 22 |
| another individual or entity that sold the property for the
| 23 |
| purpose of resale by the fundraising entity and that
profits | 24 |
| from the sale to the
fundraising entity. This paragraph is | 25 |
| exempt
from the provisions
of Section 3-55.
| 26 |
| (23) Beginning January 1, 2000
and through December 31, | 27 |
| 2001, new or used automatic vending
machines that prepare and | 28 |
| serve hot food and beverages, including coffee, soup,
and
other | 29 |
| items, and replacement parts for these machines.
Beginning | 30 |
| January 1,
2002 and through June 30, 2003, machines and parts | 31 |
| for
machines used in commercial, coin-operated amusement
and | 32 |
| vending business if a use or occupation tax is paid on the | 33 |
| gross receipts
derived from
the use of the commercial, | 34 |
| coin-operated amusement and vending machines.
This paragraph | 35 |
| is exempt from the provisions of Section 3-55.
| 36 |
| (24) Beginning
on the effective date of this amendatory Act |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| of the 92nd General Assembly,
computers and communications | 2 |
| equipment
utilized for any hospital purpose and equipment used | 3 |
| in the diagnosis,
analysis, or treatment of hospital patients | 4 |
| sold to a lessor who leases the
equipment, under a lease of one | 5 |
| year or longer executed or in effect at the
time of the | 6 |
| purchase, to a hospital that has been issued an active tax
| 7 |
| exemption identification number by the Department under | 8 |
| Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 9 |
| is exempt from the provisions of
Section 3-55.
| 10 |
| (25) Beginning
on the effective date of this amendatory Act | 11 |
| of the 92nd General Assembly,
personal property sold to a | 12 |
| lessor who
leases the property, under a lease of one year or | 13 |
| longer executed or in effect
at the time of the purchase, to a | 14 |
| governmental body that has been issued an
active tax exemption | 15 |
| identification number by the Department under Section 1g
of the | 16 |
| Retailers' Occupation Tax Act. This paragraph is exempt from | 17 |
| the
provisions of Section 3-55.
| 18 |
| (26) Beginning on January 1, 2002, tangible personal | 19 |
| property
purchased
from an Illinois retailer by a taxpayer | 20 |
| engaged in centralized purchasing
activities in Illinois who | 21 |
| will, upon receipt of the property in Illinois,
temporarily | 22 |
| store the property in Illinois (i) for the purpose of | 23 |
| subsequently
transporting it outside this State for use or | 24 |
| consumption thereafter solely
outside this State or (ii) for | 25 |
| the purpose of being processed, fabricated, or
manufactured | 26 |
| into, attached to, or incorporated into other tangible personal
| 27 |
| property to be transported outside this State and thereafter | 28 |
| used or consumed
solely outside this State. The Director of | 29 |
| Revenue shall, pursuant to rules
adopted in accordance with the | 30 |
| Illinois Administrative Procedure Act, issue a
permit to any | 31 |
| taxpayer in good standing with the Department who is eligible | 32 |
| for
the exemption under this paragraph (26). The permit issued | 33 |
| under
this paragraph (26) shall authorize the holder, to the | 34 |
| extent and
in the manner specified in the rules adopted under | 35 |
| this Act, to purchase
tangible personal property from a | 36 |
| retailer exempt from the taxes imposed by
this Act. Taxpayers |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| shall maintain all necessary books and records to
substantiate | 2 |
| the use and consumption of all such tangible personal property
| 3 |
| outside of the State of Illinois. | 4 |
| (27) Beginning on and after the effective date of this | 5 |
| amendatory Act of the 94th General assembly, personal property | 6 |
| purchased from a blind vendor's vending facility licensed by | 7 |
| the Department of Human Services under the Blind Vendors Act. | 8 |
| This paragraph is exempt
from the provisions
of Section 3-55.
| 9 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 10 |
| eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | 11 |
| 92-488, eff. 8-23-01; 92-651, eff. 7-11-02; 93-24, eff. | 12 |
| 6-20-03; 93-840, eff. 7-30-04.)
| 13 |
| Section 96. Retailers' Occupation Tax Act is amended by | 14 |
| changing Section 2-5 as follows:
| 15 |
| (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| 16 |
| Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 17 |
| sale of
the following tangible personal property are exempt | 18 |
| from the tax imposed
by this Act:
| 19 |
| (1) Farm chemicals.
| 20 |
| (2) Farm machinery and equipment, both new and used, | 21 |
| including that
manufactured on special order, certified by the | 22 |
| purchaser to be used
primarily for production agriculture or | 23 |
| State or federal agricultural
programs, including individual | 24 |
| replacement parts for the machinery and
equipment, including | 25 |
| machinery and equipment purchased for lease,
and including | 26 |
| implements of husbandry defined in Section 1-130 of
the | 27 |
| Illinois Vehicle Code, farm machinery and agricultural | 28 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 29 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 30 |
| but
excluding other motor vehicles required to be registered | 31 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or | 32 |
| hoop houses used for propagating, growing, or
overwintering | 33 |
| plants shall be considered farm machinery and equipment under
| 34 |
| this item (2).
Agricultural chemical tender tanks and dry boxes |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| shall include units sold
separately from a motor vehicle | 2 |
| required to be licensed and units sold mounted
on a motor | 3 |
| vehicle required to be licensed, if the selling price of the | 4 |
| tender
is separately stated.
| 5 |
| Farm machinery and equipment shall include precision | 6 |
| farming equipment
that is
installed or purchased to be | 7 |
| installed on farm machinery and equipment
including, but not | 8 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 9 |
| or spreaders.
Precision farming equipment includes, but is not | 10 |
| limited to,
soil testing sensors, computers, monitors, | 11 |
| software, global positioning
and mapping systems, and other | 12 |
| such equipment.
| 13 |
| Farm machinery and equipment also includes computers, | 14 |
| sensors, software, and
related equipment used primarily in the
| 15 |
| computer-assisted operation of production agriculture | 16 |
| facilities, equipment,
and activities such as, but
not limited | 17 |
| to,
the collection, monitoring, and correlation of
animal and | 18 |
| crop data for the purpose of
formulating animal diets and | 19 |
| agricultural chemicals. This item (7) is exempt
from the | 20 |
| provisions of
Section 2-70.
| 21 |
| (3) Until July 1, 2003, distillation machinery and | 22 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 23 |
| retailer, certified by the user to be used
only for the | 24 |
| production of ethyl alcohol that will be used for consumption
| 25 |
| as motor fuel or as a component of motor fuel for the personal | 26 |
| use of the
user, and not subject to sale or resale.
| 27 |
| (4) Until July 1, 2003 and beginning again September 1, | 28 |
| 2004, graphic arts machinery and equipment, including
repair | 29 |
| and
replacement parts, both new and used, and including that | 30 |
| manufactured on
special order or purchased for lease, certified | 31 |
| by the purchaser to be used
primarily for graphic arts | 32 |
| production.
Equipment includes chemicals or
chemicals acting | 33 |
| as catalysts but only if
the chemicals or chemicals acting as | 34 |
| catalysts effect a direct and immediate
change upon a
graphic | 35 |
| arts product.
| 36 |
| (5) A motor vehicle of the first division, a motor vehicle |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| of the second
division that is a self-contained motor vehicle | 2 |
| designed or permanently
converted to provide living quarters | 3 |
| for recreational, camping, or travel
use, with direct walk | 4 |
| through access to the living quarters from the
driver's seat, | 5 |
| or a motor vehicle of the second division that is of the van
| 6 |
| configuration designed for the transportation of not less than | 7 |
| 7 nor more
than 16 passengers, as defined in Section 1-146 of | 8 |
| the Illinois Vehicle
Code, that is used for automobile renting, | 9 |
| as defined in the Automobile
Renting Occupation and Use Tax | 10 |
| Act.
| 11 |
| (6) Personal property sold by a teacher-sponsored student | 12 |
| organization
affiliated with an elementary or secondary school | 13 |
| located in Illinois.
| 14 |
| (7) Until July 1, 2003, proceeds of that portion of the | 15 |
| selling price of
a passenger car the
sale of which is subject | 16 |
| to the Replacement Vehicle Tax.
| 17 |
| (8) Personal property sold to an Illinois county fair | 18 |
| association for
use in conducting, operating, or promoting the | 19 |
| county fair.
| 20 |
| (9) Personal property sold to a not-for-profit arts
or | 21 |
| cultural organization that establishes, by proof required by | 22 |
| the Department
by
rule, that it has received an exemption under | 23 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 24 |
| organized and operated primarily for the
presentation
or | 25 |
| support of arts or cultural programming, activities, or | 26 |
| services. These
organizations include, but are not limited to, | 27 |
| music and dramatic arts
organizations such as symphony | 28 |
| orchestras and theatrical groups, arts and
cultural service | 29 |
| organizations, local arts councils, visual arts organizations,
| 30 |
| and media arts organizations.
On and after the effective date | 31 |
| of this amendatory Act of the 92nd General
Assembly, however, | 32 |
| an entity otherwise eligible for this exemption shall not
make | 33 |
| tax-free purchases unless it has an active identification | 34 |
| number issued by
the Department.
| 35 |
| (10) Personal property sold by a corporation, society, | 36 |
| association,
foundation, institution, or organization, other |
|
|
|
SB2330 |
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LRB094 16692 RSP 51962 b |
|
| 1 |
| than a limited liability
company, that is organized and | 2 |
| operated as a not-for-profit service enterprise
for the benefit | 3 |
| of persons 65 years of age or older if the personal property
| 4 |
| was not purchased by the enterprise for the purpose of resale | 5 |
| by the
enterprise.
| 6 |
| (11) Personal property sold to a governmental body, to a | 7 |
| corporation,
society, association, foundation, or institution | 8 |
| organized and operated
exclusively for charitable, religious, | 9 |
| or educational purposes, or to a
not-for-profit corporation, | 10 |
| society, association, foundation, institution,
or organization | 11 |
| that has no compensated officers or employees and that is
| 12 |
| organized and operated primarily for the recreation of persons | 13 |
| 55 years of
age or older. A limited liability company may | 14 |
| qualify for the exemption under
this paragraph only if the | 15 |
| limited liability company is organized and operated
| 16 |
| exclusively for educational purposes. On and after July 1, | 17 |
| 1987, however, no
entity otherwise eligible for this exemption | 18 |
| shall make tax-free purchases
unless it has an active | 19 |
| identification number issued by the Department.
| 20 |
| (12) Tangible personal property sold to
interstate | 21 |
| carriers
for hire for use as
rolling stock moving in interstate | 22 |
| commerce or to lessors under leases of
one year or longer | 23 |
| executed or in effect at the time of purchase by
interstate | 24 |
| carriers for hire for use as rolling stock moving in interstate
| 25 |
| commerce and equipment operated by a telecommunications | 26 |
| provider, licensed as a
common carrier by the Federal | 27 |
| Communications Commission, which is permanently
installed in | 28 |
| or affixed to aircraft moving in interstate commerce.
| 29 |
| (12-5) On and after July 1, 2003 and through June 30, 2004, | 30 |
| motor vehicles of the second division
with a gross vehicle | 31 |
| weight in excess of 8,000 pounds
that
are
subject to the | 32 |
| commercial distribution fee imposed under Section 3-815.1 of
| 33 |
| the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 34 |
| through June 30, 2005, the use in this State of motor vehicles | 35 |
| of the second division: (i) with a gross vehicle weight rating | 36 |
| in excess of 8,000 pounds; (ii) that are subject to the |
|
|
|
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LRB094 16692 RSP 51962 b |
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| 1 |
| commercial distribution fee imposed under Section 3-815.1 of | 2 |
| the Illinois Vehicle Code; and (iii) that are primarily used | 3 |
| for commercial purposes. Through June 30, 2005, this
exemption | 4 |
| applies to repair and replacement parts added
after the
initial | 5 |
| purchase of such a motor vehicle if that motor vehicle is used | 6 |
| in a
manner that
would qualify for the rolling stock exemption | 7 |
| otherwise provided for in this
Act. For purposes of this | 8 |
| paragraph, "used for commercial purposes" means the | 9 |
| transportation of persons or property in furtherance of any | 10 |
| commercial or industrial enterprise whether for-hire or not.
| 11 |
| (13) Proceeds from sales to owners, lessors, or
shippers of
| 12 |
| tangible personal property that is utilized by interstate | 13 |
| carriers for
hire for use as rolling stock moving in interstate | 14 |
| commerce
and equipment operated by a telecommunications | 15 |
| provider, licensed as a
common carrier by the Federal | 16 |
| Communications Commission, which is
permanently installed in | 17 |
| or affixed to aircraft moving in interstate commerce.
| 18 |
| (14) Machinery and equipment that will be used by the | 19 |
| purchaser, or a
lessee of the purchaser, primarily in the | 20 |
| process of manufacturing or
assembling tangible personal | 21 |
| property for wholesale or retail sale or
lease, whether the | 22 |
| sale or lease is made directly by the manufacturer or by
some | 23 |
| other person, whether the materials used in the process are | 24 |
| owned by
the manufacturer or some other person, or whether the | 25 |
| sale or lease is made
apart from or as an incident to the | 26 |
| seller's engaging in the service
occupation of producing | 27 |
| machines, tools, dies, jigs, patterns, gauges, or
other similar | 28 |
| items of no commercial value on special order for a particular
| 29 |
| purchaser.
| 30 |
| (15) Proceeds of mandatory service charges separately | 31 |
| stated on
customers' bills for purchase and consumption of food | 32 |
| and beverages, to the
extent that the proceeds of the service | 33 |
| charge are in fact turned over as
tips or as a substitute for | 34 |
| tips to the employees who participate directly
in preparing, | 35 |
| serving, hosting or cleaning up the food or beverage function
| 36 |
| with respect to which the service charge is imposed.
|
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LRB094 16692 RSP 51962 b |
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| 1 |
| (16) Petroleum products sold to a purchaser if the seller
| 2 |
| is prohibited by federal law from charging tax to the | 3 |
| purchaser.
| 4 |
| (17) Tangible personal property sold to a common carrier by | 5 |
| rail or
motor that
receives the physical possession of the | 6 |
| property in Illinois and that
transports the property, or | 7 |
| shares with another common carrier in the
transportation of the | 8 |
| property, out of Illinois on a standard uniform bill
of lading | 9 |
| showing the seller of the property as the shipper or consignor | 10 |
| of
the property to a destination outside Illinois, for use | 11 |
| outside Illinois.
| 12 |
| (18) Legal tender, currency, medallions, or gold or silver | 13 |
| coinage
issued by the State of Illinois, the government of the | 14 |
| United States of
America, or the government of any foreign | 15 |
| country, and bullion.
| 16 |
| (19) Until July 1 2003, oil field exploration, drilling, | 17 |
| and production
equipment, including
(i) rigs and parts of rigs, | 18 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 19 |
| tubular goods, including casing and
drill strings, (iii) pumps | 20 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 21 |
| individual replacement part for oil field exploration,
| 22 |
| drilling, and production equipment, and (vi) machinery and | 23 |
| equipment purchased
for lease; but
excluding motor vehicles | 24 |
| required to be registered under the Illinois
Vehicle Code.
| 25 |
| (20) Photoprocessing machinery and equipment, including | 26 |
| repair and
replacement parts, both new and used, including that | 27 |
| manufactured on
special order, certified by the purchaser to be | 28 |
| used primarily for
photoprocessing, and including | 29 |
| photoprocessing machinery and equipment
purchased for lease.
| 30 |
| (21) Until July 1, 2003, coal exploration, mining, | 31 |
| offhighway hauling,
processing,
maintenance, and reclamation | 32 |
| equipment, including
replacement parts and equipment, and | 33 |
| including
equipment purchased for lease, but excluding motor | 34 |
| vehicles required to be
registered under the Illinois Vehicle | 35 |
| Code.
| 36 |
| (22) Fuel and petroleum products sold to or used by an air |
|
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| carrier,
certified by the carrier to be used for consumption, | 2 |
| shipment, or storage
in the conduct of its business as an air | 3 |
| common carrier, for a flight
destined for or returning from a | 4 |
| location or locations
outside the United States without regard | 5 |
| to previous or subsequent domestic
stopovers.
| 6 |
| (23) A transaction in which the purchase order is received | 7 |
| by a florist
who is located outside Illinois, but who has a | 8 |
| florist located in Illinois
deliver the property to the | 9 |
| purchaser or the purchaser's donee in Illinois.
| 10 |
| (24) Fuel consumed or used in the operation of ships, | 11 |
| barges, or vessels
that are used primarily in or for the | 12 |
| transportation of property or the
conveyance of persons for | 13 |
| hire on rivers bordering on this State if the
fuel is delivered | 14 |
| by the seller to the purchaser's barge, ship, or vessel
while | 15 |
| it is afloat upon that bordering river.
| 16 |
| (25) Except as provided in item (25-5) of this Section, a
| 17 |
| motor vehicle sold in this State to a nonresident even though | 18 |
| the
motor vehicle is delivered to the nonresident in this | 19 |
| State, if the motor
vehicle is not to be titled in this State, | 20 |
| and if a drive-away permit
is issued to the motor vehicle as | 21 |
| provided in Section 3-603 of the Illinois
Vehicle Code or if | 22 |
| the nonresident purchaser has vehicle registration
plates to | 23 |
| transfer to the motor vehicle upon returning to his or her home
| 24 |
| state. The issuance of the drive-away permit or having
the
| 25 |
| out-of-state registration plates to be transferred is prima | 26 |
| facie evidence
that the motor vehicle will not be titled in | 27 |
| this State.
| 28 |
| (25-5) The exemption under item (25) does not apply if the | 29 |
| state in which the motor vehicle will be titled does not allow | 30 |
| a reciprocal exemption for a motor vehicle sold and delivered | 31 |
| in that state to an Illinois resident but titled in Illinois. | 32 |
| The tax collected under this Act on the sale of a motor vehicle | 33 |
| in this State to a resident of another state that does not | 34 |
| allow a reciprocal exemption shall be imposed at a rate equal | 35 |
| to the state's rate of tax on taxable property in the state in | 36 |
| which the purchaser is a resident, except that the tax shall |
|
|
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| 1 |
| not exceed the tax that would otherwise be imposed under this | 2 |
| Act. At the time of the sale, the purchaser shall execute a | 3 |
| statement, signed under penalty of perjury, of his or her | 4 |
| intent to title the vehicle in the state in which the purchaser | 5 |
| is a resident within 30 days after the sale and of the fact of | 6 |
| the payment to the State of Illinois of tax in an amount | 7 |
| equivalent to the state's rate of tax on taxable property in | 8 |
| his or her state of residence and shall submit the statement to | 9 |
| the appropriate tax collection agency in his or her state of | 10 |
| residence. In addition, the retailer must retain a signed copy | 11 |
| of the statement in his or her records. Nothing in this item | 12 |
| shall be construed to require the removal of the vehicle from | 13 |
| this state following the filing of an intent to title the | 14 |
| vehicle in the purchaser's state of residence if the purchaser | 15 |
| titles the vehicle in his or her state of residence within 30 | 16 |
| days after the date of sale. The tax collected under this Act | 17 |
| in accordance with this item (25-5) shall be proportionately | 18 |
| distributed as if the tax were collected at the 6.25% general | 19 |
| rate imposed under this Act.
| 20 |
| (26) Semen used for artificial insemination of livestock | 21 |
| for direct
agricultural production.
| 22 |
| (27) Horses, or interests in horses, registered with and | 23 |
| meeting the
requirements of any of the
Arabian Horse Club | 24 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 25 |
| Horse Association, United States
Trotting Association, or | 26 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 27 |
| racing for prizes.
| 28 |
| (28) Computers and communications equipment utilized for | 29 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 30 |
| analysis, or treatment of hospital patients sold to a lessor | 31 |
| who leases the
equipment, under a lease of one year or longer | 32 |
| executed or in effect at the
time of the purchase, to a
| 33 |
| hospital
that has been issued an active tax exemption | 34 |
| identification number by the
Department under Section 1g of | 35 |
| this Act.
| 36 |
| (29) Personal property sold to a lessor who leases the
|
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| 1 |
| property, under a
lease of one year or longer executed or in | 2 |
| effect at the time of the purchase,
to a governmental body
that | 3 |
| has been issued an active tax exemption identification number | 4 |
| by the
Department under Section 1g of this Act.
| 5 |
| (30) Beginning with taxable years ending on or after | 6 |
| December
31, 1995
and
ending with taxable years ending on or | 7 |
| before December 31, 2004,
personal property that is
donated for | 8 |
| disaster relief to be used in a State or federally declared
| 9 |
| disaster area in Illinois or bordering Illinois by a | 10 |
| manufacturer or retailer
that is registered in this State to a | 11 |
| corporation, society, association,
foundation, or institution | 12 |
| that has been issued a sales tax exemption
identification | 13 |
| number by the Department that assists victims of the disaster
| 14 |
| who reside within the declared disaster area.
| 15 |
| (31) Beginning with taxable years ending on or after | 16 |
| December
31, 1995 and
ending with taxable years ending on or | 17 |
| before December 31, 2004, personal
property that is used in the | 18 |
| performance of infrastructure repairs in this
State, including | 19 |
| but not limited to municipal roads and streets, access roads,
| 20 |
| bridges, sidewalks, waste disposal systems, water and sewer | 21 |
| line extensions,
water distribution and purification | 22 |
| facilities, storm water drainage and
retention facilities, and | 23 |
| sewage treatment facilities, resulting from a State
or | 24 |
| federally declared disaster in Illinois or bordering Illinois | 25 |
| when such
repairs are initiated on facilities located in the | 26 |
| declared disaster area
within 6 months after the disaster.
| 27 |
| (32) Beginning July 1, 1999, game or game birds sold at a | 28 |
| "game breeding
and
hunting preserve area" or an "exotic game | 29 |
| hunting area" as those terms are used
in the
Wildlife Code or | 30 |
| at a hunting enclosure approved through rules adopted by the
| 31 |
| Department of Natural Resources. This paragraph is exempt from | 32 |
| the provisions
of
Section 2-70.
| 33 |
| (33) A motor vehicle, as that term is defined in Section | 34 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 35 |
| corporation, limited liability
company, society, association, | 36 |
| foundation, or institution that is determined by
the Department |
|
|
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| 1 |
| to be organized and operated exclusively for educational
| 2 |
| purposes. For purposes of this exemption, "a corporation, | 3 |
| limited liability
company, society, association, foundation, | 4 |
| or institution organized and
operated
exclusively for | 5 |
| educational purposes" means all tax-supported public schools,
| 6 |
| private schools that offer systematic instruction in useful | 7 |
| branches of
learning by methods common to public schools and | 8 |
| that compare favorably in
their scope and intensity with the | 9 |
| course of study presented in tax-supported
schools, and | 10 |
| vocational or technical schools or institutes organized and
| 11 |
| operated exclusively to provide a course of study of not less | 12 |
| than 6 weeks
duration and designed to prepare individuals to | 13 |
| follow a trade or to pursue a
manual, technical, mechanical, | 14 |
| industrial, business, or commercial
occupation.
| 15 |
| (34) Beginning January 1, 2000, personal property, | 16 |
| including food, purchased
through fundraising events for the | 17 |
| benefit of a public or private elementary or
secondary school, | 18 |
| a group of those schools, or one or more school districts if
| 19 |
| the events are sponsored by an entity recognized by the school | 20 |
| district that
consists primarily of volunteers and includes | 21 |
| parents and teachers of the
school children. This paragraph | 22 |
| does not apply to fundraising events (i) for
the benefit of | 23 |
| private home instruction or (ii) for which the fundraising
| 24 |
| entity purchases the personal property sold at the events from | 25 |
| another
individual or entity that sold the property for the | 26 |
| purpose of resale by the
fundraising entity and that profits | 27 |
| from the sale to the fundraising entity.
This paragraph is | 28 |
| exempt from the provisions of Section 2-70.
| 29 |
| (35) Beginning January 1, 2000 and through December 31, | 30 |
| 2001, new or used
automatic vending machines that prepare and | 31 |
| serve hot food and beverages,
including coffee, soup, and other | 32 |
| items, and replacement parts for these
machines. Beginning | 33 |
| January 1, 2002 and through June 30, 2003, machines
and parts | 34 |
| for machines used in
commercial, coin-operated amusement and | 35 |
| vending business if a use or occupation
tax is paid on the | 36 |
| gross receipts derived from the use of the commercial,
|
|
|
|
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|
| 1 |
| coin-operated amusement and vending machines. This paragraph | 2 |
| is exempt from
the provisions of Section 2-70.
| 3 |
| (35-5) Food for human consumption that is to be consumed | 4 |
| off
the premises where it is sold (other than alcoholic | 5 |
| beverages, soft drinks,
and food that has been prepared for | 6 |
| immediate consumption) and prescription
and nonprescription | 7 |
| medicines, drugs, medical appliances, and insulin, urine
| 8 |
| testing materials, syringes, and needles used by diabetics, for | 9 |
| human use, when
purchased for use by a person receiving medical | 10 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 11 |
| resides in a licensed long-term care facility,
as defined in | 12 |
| the Nursing Home Care Act.
| 13 |
| (36) Beginning August 2, 2001, computers and | 14 |
| communications equipment
utilized for any hospital purpose and | 15 |
| equipment used in the diagnosis,
analysis, or treatment of | 16 |
| hospital patients sold to a lessor who leases the
equipment, | 17 |
| under a lease of one year or longer executed or in effect at | 18 |
| the
time of the purchase, to a hospital that has been issued an | 19 |
| active tax
exemption identification number by the Department | 20 |
| under Section 1g of this Act.
This paragraph is exempt from the | 21 |
| provisions of Section 2-70.
| 22 |
| (37) Beginning August 2, 2001, personal property sold to a | 23 |
| lessor who
leases the property, under a lease of one year or | 24 |
| longer executed or in effect
at the time of the purchase, to a | 25 |
| governmental body that has been issued an
active tax exemption | 26 |
| identification number by the Department under Section 1g
of | 27 |
| this Act. This paragraph is exempt from the provisions of | 28 |
| Section 2-70.
| 29 |
| (38) Beginning on January 1, 2002, tangible personal | 30 |
| property purchased
from an Illinois retailer by a taxpayer | 31 |
| engaged in centralized purchasing
activities in Illinois who | 32 |
| will, upon receipt of the property in Illinois,
temporarily | 33 |
| store the property in Illinois (i) for the purpose of | 34 |
| subsequently
transporting it outside this State for use or | 35 |
| consumption thereafter solely
outside this State or (ii) for | 36 |
| the purpose of being processed, fabricated, or
manufactured |
|
|
|
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|
| 1 |
| into, attached to, or incorporated into other tangible personal
| 2 |
| property to be transported outside this State and thereafter | 3 |
| used or consumed
solely outside this State. The Director of | 4 |
| Revenue shall, pursuant to rules
adopted in accordance with the | 5 |
| Illinois Administrative Procedure Act, issue a
permit to any | 6 |
| taxpayer in good standing with the Department who is eligible | 7 |
| for
the exemption under this paragraph (38). The permit issued | 8 |
| under
this paragraph (38) shall authorize the holder, to the | 9 |
| extent and
in the manner specified in the rules adopted under | 10 |
| this Act, to purchase
tangible personal property from a | 11 |
| retailer exempt from the taxes imposed by
this Act. Taxpayers | 12 |
| shall maintain all necessary books and records to
substantiate | 13 |
| the use and consumption of all such tangible personal property
| 14 |
| outside of the State of Illinois. | 15 |
| (34) Beginning on and after the effective date of this | 16 |
| amendatory Act of the 94th General assembly, personal property | 17 |
| purchased from a blind vendor's vending facility licensed by | 18 |
| the Department of Human Services under the Blind Vendors Act. | 19 |
| This paragraph is exempt
from the provisions
of Section 2-70.
| 20 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 21 |
| eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | 22 |
| 92-488, eff. 8-23-01; 92-651, eff. 7-11-02; 92-680, eff. | 23 |
| 7-16-02; 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; 93-840, eff. | 24 |
| 7-30-04; 93-1033, eff. 9-3-04; 93-1068, eff. 1-15-05.)
|
|