Full Text of SB1691 96th General Assembly
SB1691ham002 96TH GENERAL ASSEMBLY
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Rep. William Davis
Filed: 5/28/2009
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| AMENDMENT TO SENATE BILL 1691
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| AMENDMENT NO. ______. Amend Senate Bill 1691, AS AMENDED, | 3 |
| by replacing everything after the enacting clause with the | 4 |
| following:
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| "ARTICLE 5 | 6 |
| Section 5-1. Short title. This Article may be cited as the | 7 |
| Food Desert Mitigation Act. | 8 |
| Section 5-3. Purpose. The General Assembly finds that there | 9 |
| are large geographic areas of the State, particularly low to | 10 |
| moderate income, where citizens have little or no access to | 11 |
| grocery stores and other sources of food needed to maintain a | 12 |
| healthy diet. Such inaccessibility has been linked to | 13 |
| deleterious effects on individuals in those areas in the form | 14 |
| of adverse health effects and shortened life expectancy. | 15 |
| Communities can also be affected in the form of depressed |
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| economic activity and land values. Due to a number of | 2 |
| circumstances, operators of grocery stores face substantial | 3 |
| challenges in their efforts to develop new stores or maintain | 4 |
| existing stores in such areas. To stem these deleterious | 5 |
| effects, the State must promote investment, through tax credits | 6 |
| and exemptions, in new and existing stores in order to mitigate | 7 |
| the number and breadth of food desert areas. Such action will | 8 |
| have direct and long lasting benefits. Most importantly, such | 9 |
| action will reduce the challenges that people face in accessing | 10 |
| quality food which in turn promotes greater health for the | 11 |
| citizens of Illinois. Investment in new and existing grocery | 12 |
| stores also means stimulation of community revitalization, | 13 |
| creation of new short and long term job opportunities, | 14 |
| enhancement of the real estate tax base and the generation of | 15 |
| new and additional revenue streams for State and local | 16 |
| governments. In addition, grocery stores often serve as retail | 17 |
| anchors which can lead to new and diverse retail opportunities | 18 |
| across Illinois. | 19 |
| Section 5-5. Definitions. As used in this Act: | 20 |
| "Affiliate" means a person or business entity that, | 21 |
| directly or indirectly, through one or more intermediaries, | 22 |
| controls, is controlled by, or is under common control with an | 23 |
| eligible applicant. | 24 |
| "Agreement" means an agreement between an eligible | 25 |
| applicant and the Department under the provisions of Section |
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| 5-50 of this Act and relating to a single existing full service | 2 |
| grocery store or a proposed full service grocery store. | 3 |
| "Below average food service density" means that there is | 4 |
| not a full service grocery store with at least 20,000 or more | 5 |
| square feet of sales area that sells fresh foods within two | 6 |
| miles of the site that is the subject of an application filed | 7 |
| pursuant to Section 5-20. Distances shall be measured based on | 8 |
| the shortest reasonable pedestrian route and not in a straight | 9 |
| line measurement. | 10 |
| "Credit" means a credit against taxes imposed on an | 11 |
| eligible applicant, an affiliate, or their successors for a | 12 |
| taxable year pursuant to subsections (a) and (b) of Section 201 | 13 |
| of the Illinois Income Tax Act in an amount as set forth in | 14 |
| Section 5-15 of this Act. | 15 |
| "Department" means the Department of Commerce and Economic | 16 |
| Opportunity or successor agency thereto. | 17 |
| "Director" means the Director of Commerce and Economic | 18 |
| Opportunity. | 19 |
| "Electric tax exemption" means a full exemption from taxes | 20 |
| imposed on or charged to the operator of an existing full | 21 |
| service grocery store or its affiliate pursuant to (a) Section | 22 |
| 2-4 of the Electricity Excise Tax Law; (b) Section 2-202 of the | 23 |
| Public Utilities Act; and (c) Section 2.1a of the Gas Tax | 24 |
| Revenue Act. | 25 |
| "Eligible applicant" means a Taxpayer that (a) operates an | 26 |
| existing full service grocery store and proposes to invest in |
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| the rehabilitation, or expansion, or both of such existing full | 2 |
| service grocery store or (b) proposes to develop and operate a | 3 |
| proposed full service grocery store. | 4 |
| "Existing full service grocery store" means a fully | 5 |
| operational for profit or not-for-profit retail establishment | 6 |
| with one or more affiliated business units operating at a | 7 |
| single location (a) that regularly sells fresh foods; (b) that | 8 |
| derives at least (1) 55% of its annual revenues from the sale | 9 |
| of food products and (2) 15% of its annual revenues from the | 10 |
| sale of fresh foods; and (c) which is located in an underserved | 11 |
| area. | 12 |
| "Food desert" means a large geographic area (a) designated | 13 |
| as such by municipal ordinance or resolution and (b) where | 14 |
| residents have little or no access, due to physical or | 15 |
| geographic barriers, to foods needed to maintain a healthy | 16 |
| lifestyle. | 17 |
| "Fresh foods" means (a) meat, seafood, and produce offered | 18 |
| for sale in an unfrozen condition; (b) dairy products; and (c) | 19 |
| baked goods. | 20 |
| "Full-time employee" means an individual who is employed by | 21 |
| an eligible applicant or its affiliate for consideration for at | 22 |
| least 30 hours each week or who renders any other standard of | 23 |
| service generally accepted by industry custom or practice as | 24 |
| full-time employment at an existing full service grocery store. | 25 |
| "Full-time employee" does not include an individual who does | 26 |
| not dedicate at least 80% of his or her employment activities |
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| to a single existing full service grocery store, such as, but | 2 |
| not limited to, regional managers, district managers, and other | 3 |
| employees whose employment responsibilities are to more than | 4 |
| one existing full service grocery store. | 5 |
| "Fund" means the fund established pursuant to Section 5-85 | 6 |
| of this Act. | 7 |
| "Gas tax exemption" means a full exemption from the taxes | 8 |
| imposed on or charged to the operator of an existing full | 9 |
| service grocery store or its affiliate pursuant to Section 2 | 10 |
| and Section 2.1a of the Gas Revenue Tax Act. | 11 |
| "Low income or moderate income market area" means a | 12 |
| geographic area having a full service grocery store customer | 13 |
| base with more than 50% of the residents living in one or more | 14 |
| federal census tracts that have been designated as low income | 15 |
| by the most recently available full or partial federal census. | 16 |
| "Noncompliance date" means, in the case of an eligible | 17 |
| applicant that is not complying with the requirements of the | 18 |
| Agreement or the provisions of this Act, the day following the | 19 |
| last date upon which the eligible applicant was in compliance | 20 |
| with the requirements of the Agreement and the provisions of | 21 |
| this Act, as determined by the Director, pursuant to Section | 22 |
| 5-65. | 23 |
| "Part-time employee" means an individual who is employed by | 24 |
| an eligible applicant or its affiliate for consideration for | 25 |
| fewer than 30 hours each week at an existing full service | 26 |
| grocery store. |
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| "Pass-through entity" means an entity that is exempt from | 2 |
| the tax under subsection (b) or (c) of Section 205 of the | 3 |
| Illinois Income Tax Act. | 4 |
| "Payroll" means all salaries, wages and bonuses, as | 5 |
| reflected in a full-time employee or part-time employee's | 6 |
| Internal Revenue Service Form W-2, paid in a taxable year by an | 7 |
| eligible applicant or its affiliates to all full-time employees | 8 |
| and part-time employees at an existing full service grocery | 9 |
| store that is the subject of an Agreement with the Department; | 10 |
| provided, however, the value of health care, retirement plan | 11 |
| contributions, and other similar benefits shall not be | 12 |
| considered in the calculation of the term "payroll". | 13 |
| "Placed into service" shall have the same meaning as | 14 |
| described in subsection (h) of Section 201 of the Illinois | 15 |
| Income Tax Act. | 16 |
| "Project investment" shall mean the expenditures of an | 17 |
| eligible applicant and/or its affiliate for land acquisition, | 18 |
| loan amounts borrowed, hard and soft construction costs, | 19 |
| financing and interest costs, furniture, fixtures, and | 20 |
| equipment, job training, attorney and consultant fees, and | 21 |
| other costs and expenses reasonably related to the | 22 |
| rehabilitation of an existing full service grocery store or the | 23 |
| development of a proposed full service grocery store. Project | 24 |
| investment shall also include capitalized lease amounts. | 25 |
| "Proposed full service grocery store" means a proposed | 26 |
| for-profit or not-for-profit retail establishment with one or |
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| more business units operating at a single location (a) that | 2 |
| regularly sells Fresh Foods; (b) that is anticipated to derive | 3 |
| at least (1) 55% of its annual revenues from the sale of food | 4 |
| products and (2) 15% of its annual revenues from the sale of | 5 |
| Fresh Foods; and (c) that will be located in an underserved | 6 |
| area. | 7 |
| "Sales tax exemption" means a full exemption from the tax | 8 |
| imposed under the Retailers' Occupation Tax Act and the Use Tax | 9 |
| Act for (a) building materials physically incorporated into an | 10 |
| existing full service grocery store or a proposed full service | 11 |
| grocery store and (b) personal property such as furniture, | 12 |
| fixtures and equipment that are used in the operation of an | 13 |
| existing full service grocery store. | 14 |
| "Sunset date" means June 14, 2014. | 15 |
| "Taxpayer" means an individual, corporation, partnership, | 16 |
| or other entity that has or may have any Illinois income tax | 17 |
| liability under the Illinois Income Tax Act. | 18 |
| "Tax exemptions" means the Gas Tax exemption, the Electric | 19 |
| Tax exemption and the Sales Tax exemption that are available to | 20 |
| an eligible applicant during the entire term of an Agreement. | 21 |
| "Underserved area" means: (a) a food desert; (b) a federal | 22 |
| census tract that has been designated as low income or | 23 |
| moderate-income by the most recently available full or partial | 24 |
| federal census; (c) a project site in an area that has below | 25 |
| average food service density; or (d) a low income market area. |
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| Section 5-10. Powers of the Department. The Department, in | 2 |
| addition to those powers granted under the Civil Administrative | 3 |
| Code of Illinois, is granted and shall have all the powers | 4 |
| necessary or convenient to carry out and effectuate the | 5 |
| purposes and provisions of this Act, including, but not limited | 6 |
| to, the power and authority to: | 7 |
| (a) Establish forms for applications, notifications, | 8 |
| contracts, or any other agreements; and accept applications at | 9 |
| any time during the year prior to the sunset date. | 10 |
| (b) Provide assistance to eligible applicants pursuant to | 11 |
| the provisions of this Act, and cooperate with eligible | 12 |
| applicants that are parties to agreements to promote, foster, | 13 |
| and support the goals and purposes of this Act. | 14 |
| (c) Enter into agreements and memoranda of understanding | 15 |
| for participation of and engage in cooperation with agencies of | 16 |
| the federal government, units of local government, | 17 |
| universities, research foundations or institutions, regional | 18 |
| economic development corporations, or other organizations in | 19 |
| furtherance of the purposes of this Act. | 20 |
| (d) Gather information and conduct inquiries, in the manner | 21 |
| and by the methods it deems desirable, including without | 22 |
| limitation, gathering information with respect to an eligible | 23 |
| applicant for the purpose of making any designations or | 24 |
| certifications necessary in the furtherance of the purposes of | 25 |
| this Act. | 26 |
| (e) Establish, negotiate, and effectuate any term, |
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| agreement, or other document with any person necessary or | 2 |
| appropriate to accomplish the purposes of this Act; and to | 3 |
| consent, subject to the provisions of any Agreement with | 4 |
| another party, to the modification or restructuring of any | 5 |
| Agreement to which the Department is a party. | 6 |
| (f) Fix, determine, charge, and collect any premiums, fees, | 7 |
| charges, costs, and expenses from eligible applicants, | 8 |
| including, without limitation, any application fees, | 9 |
| commitment fees, program fees, financing charges, or | 10 |
| publication fees, as deemed appropriate to pay expenses | 11 |
| necessary or incidental to administration, staffing, or | 12 |
| operations in connection with the Department's activities | 13 |
| under this Act, or for the preparation, implementation, and | 14 |
| enforcement of the terms of an Agreement, or for consultation, | 15 |
| advisory and legal fees, and other costs. | 16 |
| (g) Provide for sufficient personnel to permit | 17 |
| administration, staffing, operation, and related support | 18 |
| required to adequately discharge its duties and | 19 |
| responsibilities described in this Act from funds made | 20 |
| available through charges to eligible applicants or from funds | 21 |
| that may be appropriated by the General Assembly for the | 22 |
| administration of this Act. | 23 |
| (h) Require eligible applicants, upon written request, to | 24 |
| issue any necessary authorization to the appropriate federal, | 25 |
| State, or local authority for the release of information | 26 |
| concerning a project being considered under the provisions of |
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| this Act, with the information requested to include, but not be | 2 |
| limited to, financial reports, returns, or records relating to | 3 |
| the eligible applicant or the subject matter of an Agreement. | 4 |
| (i) Require that eligible applicants keep at all times | 5 |
| proper books and records in accordance with generally accepted | 6 |
| accounting principles, with the books, records, or other | 7 |
| documentation related to the Agreement in the custody or | 8 |
| control of the eligible applicant open for reasonable | 9 |
| Department inspection and audits, and including, without | 10 |
| limitation, the making of copies of the books, records, or | 11 |
| papers, and the inspection or appraisal of any of the eligible | 12 |
| applicant or project assets. | 13 |
| (j) Take whatever actions are necessary or appropriate to | 14 |
| protect the State's interest in the event of bankruptcy, | 15 |
| default, foreclosure, or noncompliance with the terms and | 16 |
| conditions of financial assistance or participation required | 17 |
| under this Act, including the power to sell, dispose of, lease, | 18 |
| or rent, upon terms and conditions determined by the Director | 19 |
| to be appropriate, real or personal property that the | 20 |
| Department may receive as a result of these actions. | 21 |
| Section 5-15. Credit awards. | 22 |
| (a) Subject to the approval of the Department, execution of | 23 |
| an Agreement with the Department and the conditions set forth | 24 |
| in this Act, an eligible applicant shall be entitled to a | 25 |
| credit in the amounts set forth below beginning on: (i) for an |
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| existing full service grocery store, the date upon which the | 2 |
| eligible applicant certifies in writing to the Department that | 3 |
| it has made a project investment of at least $1,000,000 and | 4 |
| (ii) with respect to a proposed full service grocery store, the | 5 |
| date upon which the proposed full service grocery store is | 6 |
| placed into service. In addition, where an eligible applicant | 7 |
| leases a portion of an existing full service grocery store to | 8 |
| an affiliated or non-affiliated business entity which derives | 9 |
| more than 50% of its annual revenues from the sale of | 10 |
| pharmaceutical products and services, the payroll, project | 11 |
| investment and full-time employees and part-time employees of | 12 |
| such lessee shall be attributed to the eligible applicant for | 13 |
| the purposes of determining the amount of the credit. | 14 |
| (b) The Department shall make credit awards and grants of | 15 |
| tax exemptions under this Act to mitigate underserved areas and | 16 |
| to foster economic development in Illinois. | 17 |
| The terms and conditions of awards of credits and grants of | 18 |
| tax exemptions shall be set forth in an Agreement between the | 19 |
| Department and an eligible applicant for each existing full | 20 |
| service grocery store or proposed full service grocery store | 21 |
| for which credits and tax exemptions are sought. An Agreement | 22 |
| shall permit an eligible applicant to receive credits and tax | 23 |
| exemptions for at least 10 years but in no event more than 20 | 24 |
| years and the term of such Agreement shall be of a duration to | 25 |
| permit an eligible applicant to fully receive the value of such | 26 |
| credits and tax exemptions. |
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| (c) The credit shall be claimed for the taxable years | 2 |
| specified in the Agreement. Credits may be claimed by an | 3 |
| eligible applicant and/or its affiliates, which may include but | 4 |
| are not limited to, entities that are members of the same | 5 |
| unitary business group as the eligible applicant. If credits | 6 |
| are not claimed by the eligible applicant in a taxable year, | 7 |
| the eligible applicant may (1) carry forward such credit up to | 8 |
| a maximum of 5 taxable years from the taxable year in which the | 9 |
| credit accrued or (2) sell, convey, or pledge such credit to | 10 |
| any other taxpayer provided such sale, conveyance, or pledge | 11 |
| conforms to subsection (e) of this Section. | 12 |
| (d) The Credit shall be in the following amounts and in | 13 |
| accordance with the following schedules: | 14 |
| (1) For a project investment greater than $1,000,000 | 15 |
| but less than $4,000,000, 8% of the payroll for year 1 of | 16 |
| the Agreement, 4% of the payroll for years 2 and 3 of the | 17 |
| Agreement, and 2% of the payroll for years 4 through 10 of | 18 |
| the Agreement; | 19 |
| (2) For a project investment greater than $4,000,000 | 20 |
| but less than $7,000,000, 9% of the payroll for years 1 | 21 |
| through 3 of the Agreement, 5% of the payroll for years 4 | 22 |
| through 6 of the Agreement, and 2% of the payroll for years | 23 |
| 7 through 10 of the Agreement; | 24 |
| (3) For a project investment greater than $7,000,000 | 25 |
| but less than $10,000,000, 10% of the payroll for years 1 | 26 |
| through 4 of the Agreement, 6% of the payroll for years 5 |
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| through 7 of the Agreement, and 4% of the payroll for years | 2 |
| 8 through 10 of the Agreement; and | 3 |
| (4) For a project investment in excess of $10,000,000, | 4 |
| 10% of the payroll for each year of the Agreement. | 5 |
| (e) The credits authorized by this Act may be pledged, | 6 |
| transferred, sold, or assigned to any other Taxpayer by filing | 7 |
| a notarized endorsement thereof with the Department of Revenue | 8 |
| that names the beneficiary, the amount of the Credit | 9 |
| transferred, the value received for the credit as well as any | 10 |
| other information reasonably requested by the Department of | 11 |
| Revenue. | 12 |
| Section 5-17. Tax exemption grants. | 13 |
| (a) Subject to the approval of the Department, execution of | 14 |
| an Agreement with the Department, and the conditions set forth | 15 |
| in this Act, an eligible applicant shall be entitled to the tax | 16 |
| exemptions as follows: (1) for an existing full service grocery | 17 |
| store, the date upon which the eligible applicant certifies to | 18 |
| the Department that it has made a project investment of at | 19 |
| least $1,000,000; provided, however, the eligible applicant | 20 |
| shall be entitled to the sales tax exemption immediately upon | 21 |
| full execution of the Agreement and (2) with respect to a | 22 |
| proposed full service grocery store, the date upon which the | 23 |
| proposed full service grocery store is placed into service; | 24 |
| provided, however, the eligible applicant shall be entitled to | 25 |
| the sales tax exemption immediately upon full execution of the |
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| Agreement. | 2 |
| (b) The corporate authorities of a home rule municipality | 3 |
| may by ordinance rebate to, share with or grant exemptions to | 4 |
| an eligible applicant for (1) any of the taxes that a home rule | 5 |
| municipality is authorized to impose pursuant to the Home Rule | 6 |
| Municipal Retailers' Occupation Tax Act, the Home Rule | 7 |
| Municipal Use Tax Act or Section 8-11-2 of the Illinois | 8 |
| Municipal Code and (2) the municipality's share of the revenues | 9 |
| distributed to it pursuant to Section 6z-18 of the State | 10 |
| Finance Act. | 11 |
| (c) The corporate authorities of a non-home rule | 12 |
| municipality may by ordinance rebate to, share with or grant | 13 |
| exemptions to an eligible applicant for (1) the taxes that a | 14 |
| non-home rule municipality is authorized to impose pursuant to | 15 |
| the Non-Home Rule Municipal Retailers' Occupation Tax, the | 16 |
| Non-Home Rule Municipal Use Tax Act or Section 8-11-2 of the | 17 |
| Illinois Municipal Code and (2) the municipality's share of the | 18 |
| revenues distributed to it pursuant to Section 6z-18 of the | 19 |
| State Finance Act. | 20 |
| Section 5-20. Application for credits and tax exemptions. | 21 |
| (a) Any eligible applicant proposing to make a project | 22 |
| investment in an existing full service grocery store or a | 23 |
| proposed full service grocery store that desires to enter into | 24 |
| an Agreement with the Department shall submit a formal | 25 |
| application to the Department on or before the sunset date, in |
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| which the eligible applicant states (1) its intent to make a | 2 |
| project investment in an existing full service grocery store or | 3 |
| to construct and operate a proposed full service grocery store | 4 |
| and (2) how the eligible applicant meets the qualifications set | 5 |
| forth in subsection (b) below. In addition, the application | 6 |
| shall include such information as is set forth in Section 15(a) | 7 |
| of the Corporate Accountability for Tax Expenditures Act; | 8 |
| provided that the Director shall have the authority to modify | 9 |
| the application submittal requirements. | 10 |
| (b) In order to qualify for credits and tax exemptions | 11 |
| under this Act, an eligible applicant must demonstrate in its | 12 |
| application that: | 13 |
| (1) It proposes to make a project investment of at | 14 |
| least $1,000,000; | 15 |
| (2) The rehabilitation or development project involves | 16 |
| an existing full service grocery store or a proposed full | 17 |
| service grocery store; | 18 |
| (3) The eligible applicant has committed and available | 19 |
| financing and/or equity necessary to complete the | 20 |
| rehabilitation or development project in a timely manner; | 21 |
| and | 22 |
| (4) The eligible applicant is in good standing with the | 23 |
| Illinois Secretary of State's Office. | 24 |
| (c) Where an eligible applicant seeks to qualify for the | 25 |
| benefits under this Act for investing in a full service grocery | 26 |
| store in a low income market area, the eligible applicant must |
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| reasonably demonstrate to the Department that the site that is | 2 |
| the subject of the application meets the criteria for a low | 3 |
| income market area. | 4 |
| (d) Provided that an eligible applicant meets the criteria | 5 |
| set forth in this Section 5-20 and other applicable conditions | 6 |
| of this Act, the Department shall enter into an Agreement with | 7 |
| the eligible applicant on terms and conditions that are | 8 |
| reasonably acceptable to the parties and otherwise in | 9 |
| conformity with this Act. | 10 |
| (e) The Department may not receive applications after the | 11 |
| sunset date. The Department shall have the continuing authority | 12 |
| to (1) review any complete application that has been | 13 |
| transmitted to the Department on or before the sunset date; (2) | 14 |
| enter into an Agreement with an eligible applicant that has | 15 |
| submitted a complete application on or prior to the sunset date | 16 |
| provided the eligible applicant meets the criteria set forth in | 17 |
| Section 5-20; and (3) modify and amend Agreements that were | 18 |
| entered into pursuant to an application that was transmitted on | 19 |
| or before the sunset date. Such sunset of authority shall in no | 20 |
| way impair the terms, conditions, rights, or obligations of | 21 |
| Agreements that have been entered into pursuant to an | 22 |
| application that was transmitted on or before the sunset date. | 23 |
| (f) Expenditures that an eligible applicant has made as of | 24 |
| January 1, 2009 may be included by the eligible applicant and | 25 |
| shall be accepted by the Department for the purposes of | 26 |
| determining the amount of an eligible applicant's project |
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| investment. | 2 |
| Section 5-30. Limitation on amount of credit and tax | 3 |
| exemptions. The total amount of the credits and tax exemptions | 4 |
| taken by an eligible applicant pursuant to an Agreement shall | 5 |
| not exceed the project investment in the existing full service | 6 |
| grocery store or proposed full service grocery store that is | 7 |
| the Subject of the Agreement. This Section 5-30 shall not be | 8 |
| construed as precluding an eligible applicant from entering | 9 |
| into more than one Agreement with the Department and fully | 10 |
| realizing the benefits of the credits and tax exemptions | 11 |
| granted under each Agreement. | 12 |
| Section 5-35. Contents of Agreements with applicants. The | 13 |
| Department shall enter into an Agreement with an eligible | 14 |
| applicant that qualifies for a credit under this Act. The | 15 |
| Agreement must include all of the following: | 16 |
| (a) A detailed description of the rehabilitation or | 17 |
| development project, including the location of the project and | 18 |
| the anticipated amount of the project investment. | 19 |
| (b) A specific method for determining the payroll during a | 20 |
| taxable year. | 21 |
| (c) A requirement that the eligible applicant shall | 22 |
| annually report to the Department the number of full-time | 23 |
| employees, part-time employees, the amount of the payroll paid, | 24 |
| and any other information reasonably necessary to allow the |
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| Director to perform his or her duties under this Act. | 2 |
| (d) A requirement that the eligible applicant certify to | 3 |
| the Director that it continues to operate an existing full | 4 |
| service grocery store, which certification may be made as part | 5 |
| of the annual report referenced in subsection (c) of this | 6 |
| Section 5-50. | 7 |
| (e) A requirement that the Director is authorized to verify | 8 |
| with the appropriate State agencies the matters reported under | 9 |
| subsections (c) and (d), and after doing so shall issue a | 10 |
| certificate to the eligible applicant stating that the matters | 11 |
| have been verified. | 12 |
| (f) The minimum project investment that the eligible | 13 |
| applicant will make and an estimated time period for completing | 14 |
| the project. | 15 |
| (g) A provision that, if the project no longer meets the | 16 |
| definition of an existing full service grocery store, the | 17 |
| allowance of further credit and tax exemptions shall be | 18 |
| suspended until the project meets the definition. | 19 |
| (h) A detailed description of the items for which the costs | 20 |
| incurred by the eligible applicant will be included in the | 21 |
| limitation on the credit and tax exemptions provided in Section | 22 |
| 5-30. | 23 |
| (i) A recapture provision providing that (1) if the project | 24 |
| no longer meets the definition of an existing full service | 25 |
| grocery store, the allowance of the credit shall be suspended | 26 |
| until project meets the definition except that the eligible |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| applicant shall be permitted to utilize credits that have | 2 |
| accrued prior to a suspension; (2) if the eligible applicant | 3 |
| discontinues operations at the project site, the eligible | 4 |
| applicant shall automatically forfeit all credits accrued | 5 |
| prior to the termination of operations that have not been | 6 |
| utilized by the eligible applicant and the eligible applicant | 7 |
| shall not be entitled to any credits or tax exemptions after | 8 |
| the date of termination of operations. Such recapture | 9 |
| provisions shall be deemed to satisfy the requirements of the | 10 |
| Corporate Accountability for Tax Expenditure Act. The Director | 11 |
| may elect to waive enforcement of any contractual provision | 12 |
| arising out of the Agreement required by this Act based on a | 13 |
| finding that the waiver is necessary to avert an imminent and | 14 |
| demonstrable hardship to the eligible applicant that may result | 15 |
| in such eligible applicant insolvency or discharge of workers. | 16 |
| If a waiver is granted, the recipient must agree to a | 17 |
| contractual modification, including recapture provisions, to | 18 |
| the Agreement. The existence of any waiver granted pursuant to | 19 |
| this subsection (i), the date of the granting of such waiver, | 20 |
| and a brief summary of the reasons supporting the granting of | 21 |
| such waiver shall be disclosed consistent with the provisions | 22 |
| of Section 25 of Corporate Accountability for Tax Expenditure | 23 |
| Act. | 24 |
| (j) Any other performance conditions or contract | 25 |
| provisions as the Department determines are reasonably | 26 |
| appropriate. |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Section 5-55. Certificate of Verification; Submission to | 2 |
| the Department of Revenue. An eligible applicant claiming a | 3 |
| credit under this Act shall submit to the Department of Revenue | 4 |
| a copy of the Director's certificate of verification under this | 5 |
| Act for the taxable year. However, failure to submit a copy of | 6 |
| the certificate with the Taxpayer's tax return shall not | 7 |
| invalidate a claim for a credit. In order to receive a | 8 |
| certificate of verification, the eligible applicant shall | 9 |
| certify to the Department prior to the end of each calendar | 10 |
| year that an Agreement is in effect that (a) the project meets | 11 |
| the definition of an existing full service grocery store and | 12 |
| (b) the amount of payroll payments that the eligible applicant | 13 |
| has made during the taxable year. | 14 |
| Section 5-60. Pass-through entity. | 15 |
| (a) The shareholders or partners of an eligible applicant | 16 |
| that is a pass-through entity shall be entitled to the credit | 17 |
| allowed under an Agreement. | 18 |
| (b) The credit provided under subsection (a) is in addition | 19 |
| to any credit to which a shareholder or partner is otherwise | 20 |
| entitled under a separate Agreement under this Act. A | 21 |
| pass-through entity and a shareholder or partner of the | 22 |
| pass-through entity may not claim more than one credit under | 23 |
| the same Agreement. |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Section 5-65. Noncompliance; Notice; Assessment. If the | 2 |
| Director believes that an eligible applicant which has received | 3 |
| credits or tax exemptions under this Act is not complying with | 4 |
| the requirements of the Agreement or this Act, the Director | 5 |
| shall notify the eligible applicant of the alleged | 6 |
| noncompliance and the eligible applicant's right to a hearing | 7 |
| pursuant to the Illinois Administrative Procedure Act. If, | 8 |
| after such notice and any hearing, the Director determines that | 9 |
| a noncompliance exists, the Director shall issue to the | 10 |
| Department of Revenue notice to that effect, stating the | 11 |
| noncompliance date. The Department of Revenue shall suspend | 12 |
| eligible applicant right to claim and accrue credits and | 13 |
| receive tax exemptions as of the date of the Department's | 14 |
| notice until such time as (a) the Director determines that the | 15 |
| eligible applicant is in compliance with the requirements of | 16 |
| the Agreement and the provisions of this Act or (b) the | 17 |
| eligible applicant obtains a favorable judicial determination | 18 |
| that the eligible applicant's rights should not have been | 19 |
| suspended. In the case of subsection (b), an eligible applicant | 20 |
| shall be entitled to all credits and tax exemptions that would | 21 |
| have accrued during the suspension period but for the | 22 |
| determination of noncompliance. | 23 |
| Section 5-70. Annual report. On or before July 1 each year, | 24 |
| the Illinois Business Investment Committee shall submit a | 25 |
| report to the Department on the program under this Act to the |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Governor and the General Assembly. The report shall include | 2 |
| information on the number of Agreements that were entered into | 3 |
| under this Act during the preceding calendar year, a | 4 |
| description of the project that is the subject of each | 5 |
| Agreement, an update on the status of projects under Agreements | 6 |
| entered into before the preceding calendar year, and the sum of | 7 |
| the credits and tax exemptions awarded under this Act. A copy | 8 |
| of the report shall be delivered to the Governor and to each | 9 |
| member of the General Assembly. | 10 |
| Section 5-75. Evaluation of tax credit program. On a | 11 |
| biennial basis, the Department shall evaluate the program. The | 12 |
| evaluation shall include an assessment of the effectiveness of | 13 |
| the program in increasing accessibility to full service grocery | 14 |
| stores in underserved areas and of the revenue impact of the | 15 |
| program, and may include a review of the practices and | 16 |
| experiences of other states with similar programs. The Director | 17 |
| shall submit a report on the evaluation to the Governor and the | 18 |
| General Assembly after June 30 and before November 1 in each | 19 |
| odd-numbered year. | 20 |
| Section 5-80. Adoption of rules. The Department may adopt | 21 |
| rules necessary to implement or administer this Act. The rules | 22 |
| may provide for recipients of credits and tax exemptions under | 23 |
| this Act to be charged fees to cover administrative costs of | 24 |
| the program. Fees collected shall be deposited into the Food |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Desert Mitigation Act Fund. | 2 |
| Section 5-85. The Food Desert Mitigation Fund. | 3 |
| (a) The Food Desert Mitigation Fund is established to be | 4 |
| used exclusively for the purposes of this Act, including paying | 5 |
| for the costs of administering this Act. The Fund shall be | 6 |
| administered by the Department. | 7 |
| (b) The Fund consists of collected fees, appropriations | 8 |
| from the General Assembly, and gifts and grants to the Fund. | 9 |
| (c) The State Treasurer shall invest the money in the Fund | 10 |
| not currently needed to meet the obligations of the Fund in the | 11 |
| same manner as other public funds may be invested. Interest | 12 |
| that accrues from these investments shall be deposited into the | 13 |
| Fund. | 14 |
| (d) The money in the Fund at the end of a State fiscal year | 15 |
| remains in the Fund to be used exclusively for the purposes of | 16 |
| this Act. Expenditures from the Fund are subject to | 17 |
| appropriation by the General Assembly. | 18 |
| Section 5-90. Program terms and conditions. Any | 19 |
| documentary materials or data made available to or received by | 20 |
| any agent or employee of the Department shall be deemed | 21 |
| confidential and shall not be deemed public records to the | 22 |
| extent that the materials or data consists of trade secrets, | 23 |
| commercial or financial information regarding the operation of | 24 |
| the business conducted by an eligible applicant, or any |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| information regarding the competitive position of an eligible | 2 |
| applicant. Where the Department shares any such materials or | 3 |
| data with any other agency, government employee or unit of | 4 |
| government, the Department shall take steps that are necessary | 5 |
| to ensure such materials and data are afforded the same if not | 6 |
| more strict treatment of confidentiality. | 7 |
| ARTICLE 10 | 8 |
| Section 10-3. The State Finance Act is amended by adding | 9 |
| Section 5.723 as follows: | 10 |
| (30 ILCS 105/5.723 new) | 11 |
| Sec. 5.723. The Food Desert Mitigation Fund. | 12 |
| Section 10-5. The Illinois Income Tax Act is amended by | 13 |
| adding Section 218 as follows: | 14 |
| (35 ILCS 5/218 new) | 15 |
| Sec. 218. Food desert mitigation credit. Credits may be | 16 |
| awarded against the tax imposed under subsections (a) and (b) | 17 |
| of this Act as provided in the Food Desert Mitigation Act. This | 18 |
| Section is exempt from the provisions of Section 250 of this | 19 |
| Act. | 20 |
| Section 10-10. The Use Tax Act is amended by changing |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Section 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 |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| of this amendatory Act of the 92nd General
Assembly, however, | 2 |
| an entity otherwise eligible for this exemption shall not
make | 3 |
| tax-free purchases unless it has an active identification | 4 |
| number issued by
the Department.
| 5 |
| (4) Personal property purchased by a governmental body, by | 6 |
| a
corporation, society, association, foundation, or | 7 |
| institution organized and
operated exclusively for charitable, | 8 |
| religious, or educational purposes, or
by a not-for-profit | 9 |
| corporation, society, association, foundation,
institution, or | 10 |
| organization that has no compensated officers or employees
and | 11 |
| that is organized and operated primarily for the recreation of | 12 |
| persons
55 years of age or older. A limited liability company | 13 |
| may qualify for the
exemption under this paragraph only if the | 14 |
| limited liability company is
organized and operated | 15 |
| exclusively for educational purposes. On and after July
1, | 16 |
| 1987, however, no entity otherwise eligible for this exemption | 17 |
| shall make
tax-free purchases unless it has an active exemption | 18 |
| identification number
issued by the Department.
| 19 |
| (5) Until July 1, 2003, a passenger car that is a | 20 |
| replacement vehicle to
the extent that the
purchase price of | 21 |
| the car is subject to the Replacement Vehicle Tax.
| 22 |
| (6) Until July 1, 2003 and beginning again on September 1, | 23 |
| 2004, graphic arts machinery and equipment, including
repair | 24 |
| and replacement
parts, both new and used, and including that | 25 |
| manufactured on special order,
certified by the purchaser to be | 26 |
| used primarily for graphic arts production,
and including |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| machinery and equipment purchased for lease.
Equipment | 2 |
| includes chemicals or chemicals acting as catalysts but only if
| 3 |
| the
chemicals or chemicals acting as catalysts effect a direct | 4 |
| and immediate change
upon a graphic arts product.
| 5 |
| (7) Farm chemicals.
| 6 |
| (8) Legal tender, currency, medallions, or gold or silver | 7 |
| coinage issued by
the State of Illinois, the government of the | 8 |
| United States of America, or the
government of any foreign | 9 |
| country, and bullion.
| 10 |
| (9) Personal property purchased from a teacher-sponsored | 11 |
| student
organization affiliated with an elementary or | 12 |
| secondary school located in
Illinois.
| 13 |
| (10) A motor vehicle of the first division, a motor vehicle | 14 |
| of the
second division that is a self-contained motor vehicle | 15 |
| designed or
permanently converted to provide living quarters | 16 |
| for recreational, camping,
or travel use, with direct walk | 17 |
| through to the living quarters from the
driver's seat, or a | 18 |
| motor vehicle of the second division that is of the
van | 19 |
| configuration designed for the transportation of not less than | 20 |
| 7 nor
more than 16 passengers, as defined in Section 1-146 of | 21 |
| the Illinois
Vehicle Code, that is used for automobile renting, | 22 |
| as defined in the
Automobile Renting Occupation and Use Tax | 23 |
| Act.
| 24 |
| (11) Farm machinery and equipment, both new and used,
| 25 |
| including that manufactured on special order, certified by the | 26 |
| purchaser
to be used primarily for production agriculture or |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| State or federal
agricultural programs, including individual | 2 |
| replacement parts for
the machinery and equipment, including | 3 |
| machinery and equipment
purchased
for lease,
and including | 4 |
| implements of husbandry defined in Section 1-130 of
the | 5 |
| Illinois Vehicle Code, farm machinery and agricultural | 6 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 7 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 8 |
| but excluding other motor
vehicles required to be
registered | 9 |
| under the Illinois Vehicle Code.
Horticultural polyhouses or | 10 |
| hoop houses used for propagating, growing, or
overwintering | 11 |
| plants shall be considered farm machinery and equipment under
| 12 |
| this item (11).
Agricultural chemical tender tanks and dry | 13 |
| boxes shall include units sold
separately from a motor vehicle | 14 |
| required to be licensed and units sold mounted
on a motor | 15 |
| vehicle required to be licensed if the selling price of the | 16 |
| tender
is separately stated.
| 17 |
| Farm machinery and equipment shall include precision | 18 |
| farming equipment
that is
installed or purchased to be | 19 |
| installed on farm machinery and equipment
including, but not | 20 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 21 |
| or spreaders.
Precision farming equipment includes, but is not | 22 |
| limited to, soil testing
sensors, computers, monitors, | 23 |
| software, global positioning
and mapping systems, and other | 24 |
| such equipment.
| 25 |
| Farm machinery and equipment also includes computers, | 26 |
| sensors, software, and
related equipment used primarily in the
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 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 (11) is exempt
from the | 6 |
| provisions of
Section 3-90.
| 7 |
| (12) 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 |
| (13) Proceeds of mandatory service charges separately
| 15 |
| stated on customers' bills for the purchase and consumption of | 16 |
| food and
beverages purchased at retail from a retailer, to the | 17 |
| extent that the proceeds
of the service charge are in fact | 18 |
| turned over as tips or as a substitute
for tips to the | 19 |
| employees who participate directly in preparing, serving,
| 20 |
| hosting or cleaning up the food or beverage function with | 21 |
| respect to which
the service charge is imposed.
| 22 |
| (14) 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 |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| individual replacement part for oil
field exploration, | 2 |
| drilling, and production equipment, and (vi) machinery and
| 3 |
| equipment purchased
for lease; but excluding motor vehicles | 4 |
| required to be registered under the
Illinois Vehicle Code.
| 5 |
| (15) Photoprocessing machinery and equipment, including | 6 |
| repair and
replacement parts, both new and used, including that
| 7 |
| manufactured on special order, certified by the purchaser to be | 8 |
| used
primarily for photoprocessing, and including
| 9 |
| photoprocessing machinery and equipment purchased for lease.
| 10 |
| (16) Until July 1, 2003, coal exploration, mining, | 11 |
| offhighway hauling,
processing, maintenance, and reclamation | 12 |
| equipment,
including replacement parts and equipment, and
| 13 |
| including equipment purchased for lease, but excluding motor
| 14 |
| vehicles required to be registered under the Illinois Vehicle | 15 |
| Code.
| 16 |
| (17) Until July 1, 2003, distillation machinery and | 17 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 18 |
| retailer, certified by the user to be used
only for the | 19 |
| production of ethyl alcohol that will be used for consumption
| 20 |
| as motor fuel or as a component of motor fuel for the personal | 21 |
| use of the
user, and not subject to sale or resale.
| 22 |
| (18) Manufacturing and assembling machinery and equipment | 23 |
| used
primarily in the process of manufacturing or assembling | 24 |
| tangible
personal property for wholesale or retail sale or | 25 |
| lease, whether that sale
or lease is made directly by the | 26 |
| manufacturer or by some other person,
whether the materials |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| used in the process are
owned by the manufacturer or some other | 2 |
| person, or whether that sale or
lease is made apart from or as | 3 |
| an incident to the seller's engaging in
the service occupation | 4 |
| of producing machines, tools, dies, jigs,
patterns, gauges, or | 5 |
| other similar items of no commercial value on
special order for | 6 |
| a particular purchaser.
| 7 |
| (19) Personal property delivered to a purchaser or | 8 |
| purchaser's donee
inside Illinois when the purchase order for | 9 |
| that personal property was
received by a florist located | 10 |
| outside Illinois who has a florist located
inside Illinois | 11 |
| deliver the personal property.
| 12 |
| (20) Semen used for artificial insemination of livestock | 13 |
| for direct
agricultural production.
| 14 |
| (21) Horses, or interests in horses, registered with and | 15 |
| meeting the
requirements of any of the
Arabian Horse Club | 16 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 17 |
| Horse Association, United States
Trotting Association, or | 18 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 19 |
| racing for prizes. This item (21) is exempt from the provisions | 20 |
| of Section 3-90, and the exemption provided for under this item | 21 |
| (21) applies for all periods beginning May 30, 1995, but no | 22 |
| claim for credit or refund is allowed on or after January 1, | 23 |
| 2008
for such taxes paid during the period beginning May 30, | 24 |
| 2000 and ending on January 1, 2008.
| 25 |
| (22) Computers and communications equipment utilized for | 26 |
| any
hospital
purpose
and equipment used in the diagnosis,
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 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 Service Use Tax Act, as the | 11 |
| case may
be, based on the fair market value of the property at | 12 |
| the time the
non-qualifying use occurs. No lessor shall collect | 13 |
| or attempt to collect an
amount (however
designated) that | 14 |
| purports to reimburse that lessor for the tax imposed by this
| 15 |
| Act or the Service Use Tax Act, as the case may be, if the tax | 16 |
| has not been
paid by the lessor. If a lessor improperly | 17 |
| collects any such amount from the
lessee, the lessee shall have | 18 |
| a legal right to claim a refund of that amount
from the lessor. | 19 |
| If, however, that amount is not refunded to the lessee for
any | 20 |
| reason, the lessor is liable to pay that amount to the | 21 |
| Department.
| 22 |
| (23) Personal property purchased by a lessor who leases the
| 23 |
| property, under
a
lease of
one year or longer executed or in | 24 |
| effect at the time
the lessor would otherwise be subject to the | 25 |
| tax imposed by this Act,
to a governmental body
that has been | 26 |
| issued an active sales tax exemption identification number by |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| the
Department under Section 1g of the Retailers' Occupation | 2 |
| Tax Act.
If the
property is leased in a manner that does not | 3 |
| qualify for
this exemption
or used in any other non-exempt | 4 |
| manner, the lessor shall be liable for the
tax imposed under | 5 |
| this Act or the Service Use Tax Act, as the case may
be, based | 6 |
| on the fair market value of the property at the time the
| 7 |
| non-qualifying use occurs. No lessor shall collect or attempt | 8 |
| to collect an
amount (however
designated) that purports to | 9 |
| reimburse that lessor for the tax imposed by this
Act or the | 10 |
| Service Use Tax Act, as the case may be, if the tax has not been
| 11 |
| paid by the lessor. If a lessor improperly collects any such | 12 |
| amount from the
lessee, the lessee shall have a legal right to | 13 |
| claim a refund of that amount
from the lessor. If, however, | 14 |
| that amount is not refunded to the lessee for
any reason, the | 15 |
| lessor is liable to pay that amount to the Department.
| 16 |
| (24) Beginning with taxable years ending on or after | 17 |
| December
31, 1995
and
ending with taxable years ending on or | 18 |
| before December 31, 2004,
personal property that is
donated for | 19 |
| disaster relief to be used in a State or federally declared
| 20 |
| disaster area in Illinois or bordering Illinois by a | 21 |
| manufacturer or retailer
that is registered in this State to a | 22 |
| corporation, society, association,
foundation, or institution | 23 |
| that has been issued a sales tax exemption
identification | 24 |
| number by the Department that assists victims of the disaster
| 25 |
| who reside within the declared disaster area.
| 26 |
| (25) Beginning with taxable years ending on or after |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| December
31, 1995 and
ending with taxable years ending on or | 2 |
| before December 31, 2004, personal
property that is used in the | 3 |
| performance of infrastructure repairs in this
State, including | 4 |
| but not limited to municipal roads and streets, access roads,
| 5 |
| bridges, sidewalks, waste disposal systems, water and sewer | 6 |
| line extensions,
water distribution and purification | 7 |
| facilities, storm water drainage and
retention facilities, and | 8 |
| sewage treatment facilities, resulting from a State
or | 9 |
| federally declared disaster in Illinois or bordering Illinois | 10 |
| when such
repairs are initiated on facilities located in the | 11 |
| declared disaster area
within 6 months after the disaster.
| 12 |
| (26) Beginning July 1, 1999, game or game birds purchased | 13 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 14 |
| game hunting area" as those terms are
used in
the Wildlife Code | 15 |
| or at a hunting enclosure approved through rules adopted by
the
| 16 |
| Department of Natural Resources. This paragraph is exempt from | 17 |
| the provisions
of
Section 3-90.
| 18 |
| (27) A motor vehicle, as that term is defined in Section | 19 |
| 1-146
of the
Illinois
Vehicle Code, that is donated to a | 20 |
| corporation, limited liability company,
society, association, | 21 |
| foundation, or institution that is determined by the
Department | 22 |
| to be organized and operated exclusively for educational | 23 |
| purposes.
For purposes of this exemption, "a corporation, | 24 |
| limited liability company,
society, association, foundation, | 25 |
| or institution organized and operated
exclusively for | 26 |
| educational purposes" means all tax-supported public schools,
|
|
|
|
09600SB1691ham002 |
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|
| 1 |
| private schools that offer systematic instruction in useful | 2 |
| branches of
learning by methods common to public schools and | 3 |
| that compare favorably in
their scope and intensity with the | 4 |
| course of study presented in tax-supported
schools, and | 5 |
| vocational or technical schools or institutes organized and
| 6 |
| operated exclusively to provide a course of study of not less | 7 |
| than 6 weeks
duration and designed to prepare individuals to | 8 |
| follow a trade or to pursue a
manual, technical, mechanical, | 9 |
| industrial, business, or commercial
occupation.
| 10 |
| (28) Beginning January 1, 2000, personal property, | 11 |
| including
food,
purchased through fundraising
events for the | 12 |
| benefit of
a public or private elementary or
secondary school, | 13 |
| a group of those schools, or one or more school
districts if | 14 |
| the events are
sponsored by an entity recognized by the school | 15 |
| district that consists
primarily of volunteers and includes
| 16 |
| parents and teachers of the school children. This paragraph | 17 |
| does not apply
to fundraising
events (i) for the benefit of | 18 |
| private home instruction or (ii)
for which the fundraising | 19 |
| entity purchases the personal property sold at
the events from | 20 |
| another individual or entity that sold the property for the
| 21 |
| purpose of resale by the fundraising entity and that
profits | 22 |
| from the sale to the
fundraising entity. This paragraph is | 23 |
| exempt
from the provisions
of Section 3-90.
| 24 |
| (29) Beginning January 1, 2000 and through December 31, | 25 |
| 2001, new or
used automatic vending
machines that prepare and | 26 |
| serve hot food and beverages, including coffee, soup,
and
other |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| items, and replacement parts for these machines.
Beginning | 2 |
| January 1,
2002 and through June 30, 2003, machines and parts | 3 |
| for machines used in
commercial, coin-operated amusement and | 4 |
| vending business if a use or occupation
tax is paid on the | 5 |
| gross receipts derived from the use of the commercial,
| 6 |
| coin-operated amusement and vending machines.
This
paragraph
| 7 |
| is exempt from the provisions of Section 3-90.
| 8 |
| (30) Beginning January 1, 2001 and through June 30, 2011, | 9 |
| food for human consumption that is to be consumed off the | 10 |
| premises
where it is sold (other than alcoholic beverages, soft | 11 |
| drinks, and food that
has been prepared for immediate | 12 |
| consumption) and prescription and
nonprescription medicines, | 13 |
| drugs, medical appliances, and insulin, urine
testing | 14 |
| materials, syringes, and needles used by diabetics, for human | 15 |
| use, when
purchased for use by a person receiving medical | 16 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 17 |
| resides in a licensed long-term care facility,
as defined in | 18 |
| the Nursing Home Care Act.
| 19 |
| (31) Beginning on
the effective date of this amendatory Act | 20 |
| of the 92nd General Assembly,
computers and communications | 21 |
| equipment
utilized for any hospital purpose and equipment used | 22 |
| in the diagnosis,
analysis, or treatment of hospital patients | 23 |
| purchased by a lessor who leases
the equipment, under a lease | 24 |
| of one year or longer executed or in effect at the
time the | 25 |
| lessor would otherwise be subject to the tax imposed by this | 26 |
| Act, to a
hospital that has been issued an active tax exemption |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| identification number by
the Department under Section 1g of the | 2 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 3 |
| manner that does not qualify for this exemption or is
used in | 4 |
| any other nonexempt manner, the lessor shall be liable for the | 5 |
| tax
imposed under this Act or the Service Use Tax Act, as the | 6 |
| case may be, based on
the fair market value of the property at | 7 |
| the time the nonqualifying use
occurs. No lessor shall collect | 8 |
| or attempt to collect an amount (however
designated) that | 9 |
| purports to reimburse that lessor for the tax imposed by this
| 10 |
| Act or the Service Use Tax Act, as the case may be, if the tax | 11 |
| has not been
paid by the lessor. If a lessor improperly | 12 |
| collects any such amount from the
lessee, the lessee shall have | 13 |
| a legal right to claim a refund of that amount
from the lessor. | 14 |
| If, however, that amount is not refunded to the lessee for
any | 15 |
| reason, the lessor is liable to pay that amount to the | 16 |
| Department.
This paragraph is exempt from the provisions of | 17 |
| Section 3-90.
| 18 |
| (32) Beginning on
the effective date of this amendatory Act | 19 |
| of the 92nd General Assembly,
personal property purchased by a | 20 |
| lessor who leases the property,
under a lease of one year or | 21 |
| longer executed or in effect at the time the
lessor would | 22 |
| otherwise be subject to the tax imposed by this Act, to a
| 23 |
| governmental body that has been issued an active sales tax | 24 |
| exemption
identification number by the Department under | 25 |
| Section 1g of the Retailers'
Occupation Tax Act. If the | 26 |
| property is leased in a manner that does not
qualify for this |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| exemption or used in any other nonexempt manner, the lessor
| 2 |
| shall be liable for the tax imposed under this Act or the | 3 |
| Service Use Tax Act,
as the case may be, based on the fair | 4 |
| market value of the property at the time
the nonqualifying use | 5 |
| occurs. No lessor shall collect or attempt to collect
an amount | 6 |
| (however designated) that purports to reimburse that lessor for | 7 |
| the
tax imposed by this Act or the Service Use Tax Act, as the | 8 |
| case may be, if the
tax has not been paid by the lessor. If a | 9 |
| lessor improperly collects any such
amount from the lessee, the | 10 |
| lessee shall have a legal right to claim a refund
of that | 11 |
| amount from the lessor. If, however, that amount is not | 12 |
| refunded to
the lessee for any reason, the lessor is liable to | 13 |
| pay that amount to the
Department. This paragraph is exempt | 14 |
| from the provisions of Section 3-90.
| 15 |
| (33) On and after July 1, 2003 and through June 30, 2004, | 16 |
| the use in this State of motor vehicles of
the second division | 17 |
| with a gross vehicle weight in excess of 8,000 pounds and
that | 18 |
| are subject to the commercial distribution fee imposed under | 19 |
| Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | 20 |
| 1, 2004 and through June 30, 2005, the use in this State of | 21 |
| motor vehicles of the second division: (i) with a gross vehicle | 22 |
| weight rating in excess of 8,000 pounds; (ii) that are subject | 23 |
| to the commercial distribution fee imposed under Section | 24 |
| 3-815.1 of the Illinois Vehicle Code; and (iii) that are | 25 |
| primarily used for commercial purposes. Through June 30, 2005, | 26 |
| this exemption applies to repair and
replacement parts added |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| after the initial purchase of such a motor vehicle if
that | 2 |
| motor
vehicle is used in a manner that would qualify for the | 3 |
| rolling stock exemption
otherwise provided for in this Act. For | 4 |
| purposes of this paragraph, the term "used for commercial | 5 |
| purposes" means the transportation of persons or property in | 6 |
| furtherance of any commercial or industrial enterprise, | 7 |
| whether for-hire or not.
| 8 |
| (34) Beginning January 1, 2008, tangible personal property | 9 |
| used in the construction or maintenance of a community water | 10 |
| supply, as defined under Section 3.145 of the Environmental | 11 |
| Protection Act, that is operated by a not-for-profit | 12 |
| corporation that holds a valid water supply permit issued under | 13 |
| Title IV of the Environmental Protection Act. This paragraph is | 14 |
| exempt from the provisions of Section 3-90. | 15 |
| (35) Building materials and personal property used in a | 16 |
| full service grocery store if those items qualify for an | 17 |
| exemption under the Food Desert Mitigation Act. This paragraph | 18 |
| is exempt from the provisions of Section 3-90. | 19 |
| (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | 20 |
| eff. 1-1-08; 95-876, eff. 8-21-08.)
| 21 |
| Section 10-15. The Service Use Tax Act is amended by | 22 |
| changing Section 3-5 as follows:
| 23 |
| (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| 24 |
| Sec. 3-5. Exemptions. Use of the following tangible |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| personal property
is exempt from the tax imposed by this Act:
| 2 |
| (1) Personal property purchased from a corporation, | 3 |
| society,
association, foundation, institution, or | 4 |
| organization, other than a limited
liability company, that is | 5 |
| organized and operated as a not-for-profit service
enterprise | 6 |
| for the benefit of persons 65 years of age or older if the | 7 |
| personal
property was not purchased by the enterprise for the | 8 |
| purpose of resale by the
enterprise.
| 9 |
| (2) Personal property purchased by a non-profit Illinois | 10 |
| county fair
association for use in conducting, operating, or | 11 |
| promoting the county fair.
| 12 |
| (3) Personal property purchased by a not-for-profit arts
or | 13 |
| cultural
organization that establishes, by proof required by | 14 |
| the Department by rule,
that it has received an exemption under | 15 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 16 |
| organized and operated primarily for the
presentation
or | 17 |
| support of arts or cultural programming, activities, or | 18 |
| services. These
organizations include, but are not limited to, | 19 |
| music and dramatic arts
organizations such as symphony | 20 |
| orchestras and theatrical groups, arts and
cultural service | 21 |
| organizations, local arts councils, visual arts organizations,
| 22 |
| and media arts organizations.
On and after the effective date | 23 |
| of this amendatory Act of the 92nd General
Assembly, however, | 24 |
| an entity otherwise eligible for this exemption shall not
make | 25 |
| tax-free purchases unless it has an active identification | 26 |
| number issued by
the Department.
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| (4) Legal tender, currency, medallions, or gold or silver | 2 |
| coinage issued
by the State of Illinois, the government of the | 3 |
| United States of America,
or the government of any foreign | 4 |
| country, and bullion.
| 5 |
| (5) Until July 1, 2003 and beginning again on September 1, | 6 |
| 2004, graphic arts machinery and equipment, including
repair | 7 |
| and
replacement parts, both new and used, and including that | 8 |
| manufactured on
special order or purchased for lease, certified | 9 |
| by the purchaser to be used
primarily for graphic arts | 10 |
| production.
Equipment includes chemicals or
chemicals acting | 11 |
| as catalysts but only if
the chemicals or chemicals acting as | 12 |
| catalysts effect a direct and immediate
change upon a graphic | 13 |
| arts product.
| 14 |
| (6) Personal property purchased from a teacher-sponsored | 15 |
| student
organization affiliated with an elementary or | 16 |
| secondary school located
in Illinois.
| 17 |
| (7) Farm machinery and equipment, both new and used, | 18 |
| including that
manufactured on special order, certified by the | 19 |
| purchaser to be used
primarily for production agriculture or | 20 |
| State or federal agricultural
programs, including individual | 21 |
| replacement parts for the machinery and
equipment, including | 22 |
| machinery and equipment purchased for lease,
and including | 23 |
| implements of husbandry defined in Section 1-130 of
the | 24 |
| Illinois Vehicle Code, farm machinery and agricultural | 25 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 26 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 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 |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| common
carrier, certified by the carrier to be used for | 2 |
| consumption, shipment, or
storage in the conduct of its | 3 |
| business as an air common carrier, for a
flight destined for or | 4 |
| returning from a location or locations
outside the United | 5 |
| States without regard to previous or subsequent domestic
| 6 |
| stopovers.
| 7 |
| (9) Proceeds of mandatory service charges separately | 8 |
| stated on
customers' bills for the purchase and consumption of | 9 |
| food and beverages
acquired as an incident to the purchase of a | 10 |
| service from a serviceman, to
the extent that the proceeds of | 11 |
| the service charge are in fact
turned over as tips or as a | 12 |
| substitute for tips to the employees who
participate directly | 13 |
| in preparing, serving, hosting or cleaning up the
food or | 14 |
| beverage function with respect to which the service charge is | 15 |
| imposed.
| 16 |
| (10) 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 |
| (11) Proceeds from the sale of photoprocessing machinery | 26 |
| and
equipment, including repair and replacement parts, both new |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| and
used, including that manufactured on special order, | 2 |
| certified by the
purchaser to be used primarily for | 3 |
| photoprocessing, and including
photoprocessing machinery and | 4 |
| equipment purchased for lease.
| 5 |
| (12) Until July 1, 2003, coal exploration, mining, | 6 |
| offhighway hauling,
processing,
maintenance, and reclamation | 7 |
| equipment, including
replacement parts and equipment, and | 8 |
| including
equipment purchased for lease, but excluding motor | 9 |
| vehicles required to be
registered under the Illinois Vehicle | 10 |
| Code.
| 11 |
| (13) Semen used for artificial insemination of livestock | 12 |
| for direct
agricultural production.
| 13 |
| (14) Horses, or interests in horses, registered with and | 14 |
| meeting the
requirements of any of the
Arabian Horse Club | 15 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 16 |
| Horse Association, United States
Trotting Association, or | 17 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 18 |
| racing for prizes. This item (14) is exempt from the provisions | 19 |
| of Section 3-75, and the exemption provided for under this item | 20 |
| (14) applies for all periods beginning May 30, 1995, but no | 21 |
| claim for credit or refund is allowed on or after the effective | 22 |
| date of this amendatory Act of the 95th General Assembly for | 23 |
| such taxes paid during the period beginning May 30, 2000 and | 24 |
| ending on the effective date of this amendatory Act of the 95th | 25 |
| General Assembly.
| 26 |
| (15) Computers and communications equipment utilized for |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 2 |
| analysis, or treatment of hospital patients purchased by a | 3 |
| lessor who leases
the
equipment, 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 |
| hospital
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
equipment is leased in a | 9 |
| manner that does not qualify for
this exemption
or is used in | 10 |
| any other non-exempt 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
non-qualifying 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.
| 22 |
| (16) Personal property purchased by a lessor who leases the
| 23 |
| property, under
a
lease of one year or longer executed or in | 24 |
| effect at the time
the lessor would otherwise be subject to the | 25 |
| tax imposed by this Act,
to a governmental body
that has been | 26 |
| issued an active tax exemption identification number by the
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Department under Section 1g of the Retailers' Occupation Tax | 2 |
| Act.
If the
property is leased in a manner that does not | 3 |
| qualify for
this exemption
or is used in any other non-exempt | 4 |
| manner,
the lessor shall be liable for the
tax imposed under | 5 |
| this Act or the Use Tax Act, as the case may
be, based on the | 6 |
| fair market value of the property at the time the
| 7 |
| non-qualifying use occurs. No lessor shall collect or attempt | 8 |
| to collect an
amount (however
designated) that purports to | 9 |
| reimburse that lessor for the tax imposed by this
Act or the | 10 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 11 |
| the lessor. If a lessor improperly collects any such amount | 12 |
| from the
lessee, the lessee shall have a legal right to claim a | 13 |
| refund of that amount
from the lessor. If, however, that amount | 14 |
| is not refunded to the lessee for
any reason, the lessor is | 15 |
| liable to pay that amount to the Department.
| 16 |
| (17) Beginning with taxable years ending on or after | 17 |
| December
31,
1995
and
ending with taxable years ending on or | 18 |
| before December 31, 2004,
personal property that is
donated for | 19 |
| disaster relief to be used in a State or federally declared
| 20 |
| disaster area in Illinois or bordering Illinois by a | 21 |
| manufacturer or retailer
that is registered in this State to a | 22 |
| corporation, society, association,
foundation, or institution | 23 |
| that has been issued a sales tax exemption
identification | 24 |
| number by the Department that assists victims of the disaster
| 25 |
| who reside within the declared disaster area.
| 26 |
| (18) Beginning with taxable years ending on or after |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| December
31, 1995 and
ending with taxable years ending on or | 2 |
| before December 31, 2004, personal
property that is used in the | 3 |
| performance of infrastructure repairs in this
State, including | 4 |
| but not limited to municipal roads and streets, access roads,
| 5 |
| bridges, sidewalks, waste disposal systems, water and sewer | 6 |
| line extensions,
water distribution and purification | 7 |
| facilities, storm water drainage and
retention facilities, and | 8 |
| sewage treatment facilities, resulting from a State
or | 9 |
| federally declared disaster in Illinois or bordering Illinois | 10 |
| when such
repairs are initiated on facilities located in the | 11 |
| declared disaster area
within 6 months after the disaster.
| 12 |
| (19) Beginning July 1, 1999, game or game birds purchased | 13 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 14 |
| game hunting area" as those terms are
used in
the Wildlife Code | 15 |
| or at a hunting enclosure approved through rules adopted by
the
| 16 |
| Department of Natural Resources. This paragraph is exempt from | 17 |
| the provisions
of
Section 3-75.
| 18 |
| (20) A motor vehicle, as that term is defined in Section | 19 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 20 |
| corporation, limited liability
company, society, association, | 21 |
| foundation, or institution that is determined by
the Department | 22 |
| to be organized and operated exclusively for educational
| 23 |
| purposes. For purposes of this exemption, "a corporation, | 24 |
| limited liability
company, society, association, foundation, | 25 |
| or institution organized and
operated
exclusively for | 26 |
| educational purposes" means all tax-supported public schools,
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| private schools that offer systematic instruction in useful | 2 |
| branches of
learning by methods common to public schools and | 3 |
| that compare favorably in
their scope and intensity with the | 4 |
| course of study presented in tax-supported
schools, and | 5 |
| vocational or technical schools or institutes organized and
| 6 |
| operated exclusively to provide a course of study of not less | 7 |
| than 6 weeks
duration and designed to prepare individuals to | 8 |
| follow a trade or to pursue a
manual, technical, mechanical, | 9 |
| industrial, business, or commercial
occupation.
| 10 |
| (21) Beginning January 1, 2000, personal property, | 11 |
| including
food,
purchased through fundraising
events for the | 12 |
| benefit of
a public or private elementary or
secondary school, | 13 |
| a group of those schools, or one or more school
districts if | 14 |
| the events are
sponsored by an entity recognized by the school | 15 |
| district that consists
primarily of volunteers and includes
| 16 |
| parents and teachers of the school children. This paragraph | 17 |
| does not apply
to fundraising
events (i) for the benefit of | 18 |
| private home instruction or (ii)
for which the fundraising | 19 |
| entity purchases the personal property sold at
the events from | 20 |
| another individual or entity that sold the property for the
| 21 |
| purpose of resale by the fundraising entity and that
profits | 22 |
| from the sale to the
fundraising entity. This paragraph is | 23 |
| exempt
from the provisions
of Section 3-75.
| 24 |
| (22) Beginning January 1, 2000
and through December 31, | 25 |
| 2001, new or used automatic vending
machines that prepare and | 26 |
| serve hot food and beverages, including coffee, soup,
and
other |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| items, and replacement parts for these machines.
Beginning | 2 |
| January 1,
2002 and through June 30, 2003, machines and parts | 3 |
| for machines used in
commercial, coin-operated
amusement
and | 4 |
| vending business if a use or occupation tax is paid on the | 5 |
| gross receipts
derived from
the use of the commercial, | 6 |
| coin-operated amusement and vending machines.
This
paragraph
| 7 |
| is exempt from the provisions of Section 3-75.
| 8 |
| (23) Beginning August 23, 2001 and through June 30, 2011, | 9 |
| food for human consumption that is to be consumed off the
| 10 |
| premises
where it is sold (other than alcoholic beverages, soft | 11 |
| drinks, and food that
has been prepared for immediate | 12 |
| consumption) and prescription and
nonprescription medicines, | 13 |
| drugs, medical appliances, and insulin, urine
testing | 14 |
| materials, syringes, and needles used by diabetics, for human | 15 |
| use, when
purchased for use by a person receiving medical | 16 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 17 |
| resides in a licensed long-term care facility,
as defined in | 18 |
| the Nursing Home Care Act.
| 19 |
| (24) Beginning on the effective date of this amendatory Act | 20 |
| of the 92nd
General Assembly, computers and communications | 21 |
| equipment
utilized for any hospital purpose and equipment used | 22 |
| in the diagnosis,
analysis, or treatment of hospital patients | 23 |
| purchased by a lessor who leases
the equipment, under a lease | 24 |
| of one year or longer executed or in effect at the
time the | 25 |
| lessor would otherwise be subject to the tax imposed by this | 26 |
| Act, to a
hospital that has been issued an active tax exemption |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| identification number by
the Department under Section 1g of the | 2 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 3 |
| manner that does not qualify for this exemption or is
used in | 4 |
| any other nonexempt manner, the lessor shall be liable for the
| 5 |
| tax imposed under this Act or the Use Tax Act, as the case may | 6 |
| be, based on the
fair market value of the property at the time | 7 |
| the nonqualifying use occurs.
No lessor shall collect or | 8 |
| attempt to collect an amount (however
designated) that purports | 9 |
| to reimburse that lessor for the tax imposed by this
Act or the | 10 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 11 |
| the lessor. If a lessor improperly collects any such amount | 12 |
| from the
lessee, the lessee shall have a legal right to claim a | 13 |
| refund of that amount
from the lessor. If, however, that amount | 14 |
| is not refunded to the lessee for
any reason, the lessor is | 15 |
| liable to pay that amount to the Department.
This paragraph is | 16 |
| exempt from the provisions of Section 3-75.
| 17 |
| (25) Beginning
on the effective date of this amendatory Act | 18 |
| of the 92nd General Assembly,
personal property purchased by a | 19 |
| lessor
who leases the property, under a lease of one year or | 20 |
| longer executed or in
effect at the time the lessor would | 21 |
| otherwise be subject to the tax imposed by
this Act, to a | 22 |
| governmental body that has been issued an active tax exemption
| 23 |
| identification number by the Department under Section 1g of the | 24 |
| Retailers'
Occupation Tax Act. If the property is leased in a | 25 |
| manner that does not
qualify for this exemption or is used in | 26 |
| any other nonexempt manner, the
lessor shall be liable for the |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| tax imposed under this Act or the Use Tax Act,
as the case may | 2 |
| be, based on the fair market value of the property at the time
| 3 |
| the nonqualifying use occurs. No lessor shall collect or | 4 |
| attempt to collect
an amount (however designated) that purports | 5 |
| to reimburse that lessor for the
tax imposed by this Act or the | 6 |
| Use Tax Act, as the case may be, if the tax has
not been paid by | 7 |
| the lessor. If a lessor improperly collects any such amount
| 8 |
| from the lessee, the lessee shall have a legal right to claim a | 9 |
| refund of that
amount from the lessor. If, however, that amount | 10 |
| is not refunded to the lessee
for any reason, the lessor is | 11 |
| liable to pay that amount to the Department.
This paragraph is | 12 |
| exempt from the provisions of Section 3-75.
| 13 |
| (26) Beginning January 1, 2008, tangible personal property | 14 |
| used in the construction or maintenance of a community water | 15 |
| supply, as defined under Section 3.145 of the Environmental | 16 |
| Protection Act, that is operated by a not-for-profit | 17 |
| corporation that holds a valid water supply permit issued under | 18 |
| Title IV of the Environmental Protection Act. This paragraph is | 19 |
| exempt from the provisions of Section 3-75.
| 20 |
| (27) Building materials and personal property used in a | 21 |
| full service grocery store if those items qualify for an | 22 |
| exemption under the Food Desert Mitigation Act. This paragraph | 23 |
| is exempt from the provisions of Section 3-75. | 24 |
| (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | 25 |
| eff. 1-1-08; 95-876, eff. 8-21-08.)
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Section 10-20. The Service Occupation Tax Act is amended by | 2 |
| changing Section 3-5 as follows:
| 3 |
| (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| 4 |
| Sec. 3-5. Exemptions. The following tangible personal | 5 |
| property is
exempt from the tax imposed by this Act:
| 6 |
| (1) Personal property sold by a corporation, society, | 7 |
| association,
foundation, institution, or organization, other | 8 |
| than a limited liability
company, that is organized and | 9 |
| operated as a not-for-profit service enterprise
for the benefit | 10 |
| of persons 65 years of age or older if the personal property
| 11 |
| was not purchased by the enterprise for the purpose of resale | 12 |
| by the
enterprise.
| 13 |
| (2) Personal property purchased by a not-for-profit | 14 |
| Illinois county fair
association for use in conducting, | 15 |
| operating, or promoting the county fair.
| 16 |
| (3) Personal property purchased by any not-for-profit
arts | 17 |
| or cultural organization that establishes, by proof required by | 18 |
| the
Department by
rule, that it has received an exemption under | 19 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 20 |
| organized and operated primarily for the
presentation
or | 21 |
| support of arts or cultural programming, activities, or | 22 |
| services. These
organizations include, but are not limited to, | 23 |
| music and dramatic arts
organizations such as symphony | 24 |
| orchestras and theatrical groups, arts and
cultural service | 25 |
| organizations, local arts councils, visual arts organizations,
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| and media arts organizations.
On and after the effective date | 2 |
| of this amendatory Act of the 92nd General
Assembly, however, | 3 |
| an entity otherwise eligible for this exemption shall not
make | 4 |
| tax-free purchases unless it has an active identification | 5 |
| number issued by
the Department.
| 6 |
| (4) Legal tender, currency, medallions, or gold or silver | 7 |
| coinage
issued by the State of Illinois, the government of the | 8 |
| United States of
America, or the government of any foreign | 9 |
| country, and bullion.
| 10 |
| (5) Until July 1, 2003 and beginning again on September 1, | 11 |
| 2004, graphic arts machinery and equipment, including
repair | 12 |
| and
replacement parts, both new and used, and including that | 13 |
| manufactured on
special order or purchased for lease, certified | 14 |
| by the purchaser to be used
primarily for graphic arts | 15 |
| production.
Equipment includes chemicals or chemicals acting | 16 |
| as catalysts but only if
the
chemicals or chemicals acting as | 17 |
| catalysts effect a direct and immediate change
upon a graphic | 18 |
| arts product.
| 19 |
| (6) Personal property sold by a teacher-sponsored student | 20 |
| organization
affiliated with an elementary or secondary school | 21 |
| located in Illinois.
| 22 |
| (7) Farm machinery and equipment, both new and used, | 23 |
| including that
manufactured on special order, certified by the | 24 |
| purchaser to be used
primarily for production agriculture or | 25 |
| State or federal agricultural
programs, including individual | 26 |
| replacement parts for the machinery and
equipment, including |
|
|
|
09600SB1691ham002 |
- 54 - |
LRB096 11154 HLH 27539 a |
|
| 1 |
| machinery and equipment purchased for lease,
and including | 2 |
| implements of husbandry defined in Section 1-130 of
the | 3 |
| Illinois Vehicle Code, farm machinery and agricultural | 4 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 5 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 6 |
| but
excluding other motor vehicles required to be registered | 7 |
| under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 8 |
| hoop houses used for propagating, growing, or
overwintering | 9 |
| plants shall be considered farm machinery and equipment under
| 10 |
| this item (7).
Agricultural chemical tender tanks and dry boxes | 11 |
| shall include units sold
separately from a motor vehicle | 12 |
| required to be licensed and units sold mounted
on a motor | 13 |
| vehicle required to be licensed if the selling price of the | 14 |
| tender
is separately stated.
| 15 |
| Farm machinery and equipment shall include precision | 16 |
| farming equipment
that is
installed or purchased to be | 17 |
| installed on farm machinery and equipment
including, but not | 18 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 19 |
| or spreaders.
Precision farming equipment includes, but is not | 20 |
| limited to,
soil testing sensors, computers, monitors, | 21 |
| software, global positioning
and mapping systems, and other | 22 |
| such equipment.
| 23 |
| Farm machinery and equipment also includes computers, | 24 |
| sensors, software, and
related equipment used primarily in the
| 25 |
| computer-assisted operation of production agriculture | 26 |
| facilities, equipment,
and activities such as, but
not limited |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| to,
the collection, monitoring, and correlation of
animal and | 2 |
| crop data for the purpose of
formulating animal diets and | 3 |
| agricultural chemicals. This item (7) is exempt
from the | 4 |
| provisions of
Section 3-55.
| 5 |
| (8) Fuel and petroleum products sold to or used by an air | 6 |
| common
carrier, certified by the carrier to be used for | 7 |
| consumption, shipment,
or storage in the conduct of its | 8 |
| business as an air common carrier, for
a flight destined for or | 9 |
| returning from a location or locations
outside the United | 10 |
| States without regard to previous or subsequent domestic
| 11 |
| stopovers.
| 12 |
| (9) Proceeds of mandatory service charges separately
| 13 |
| stated on customers' bills for the purchase and consumption of | 14 |
| food and
beverages, to the extent that the proceeds of the | 15 |
| service charge are in fact
turned over as tips or as a | 16 |
| substitute for tips to the employees who
participate directly | 17 |
| in preparing, serving, hosting or cleaning up the
food or | 18 |
| beverage function with respect to which the service charge is | 19 |
| imposed.
| 20 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 21 |
| and production
equipment,
including (i) rigs and parts of rigs, | 22 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 23 |
| tubular goods, including casing and
drill strings, (iii) pumps | 24 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 25 |
| individual replacement part for oil field exploration,
| 26 |
| drilling, and production equipment, and (vi) machinery and |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| equipment purchased
for lease; but
excluding motor vehicles | 2 |
| required to be registered under the Illinois
Vehicle Code.
| 3 |
| (11) Photoprocessing machinery and equipment, including | 4 |
| repair and
replacement parts, both new and used, including that | 5 |
| manufactured on
special order, certified by the purchaser to be | 6 |
| used primarily for
photoprocessing, and including | 7 |
| photoprocessing machinery and equipment
purchased for lease.
| 8 |
| (12) Until July 1, 2003, coal exploration, mining, | 9 |
| offhighway hauling,
processing,
maintenance, and reclamation | 10 |
| equipment, including
replacement parts and equipment, and | 11 |
| including
equipment
purchased for lease, but excluding motor | 12 |
| vehicles required to be registered
under the Illinois Vehicle | 13 |
| Code.
| 14 |
| (13) Beginning January 1, 1992 and through June 30, 2011, | 15 |
| food for human consumption that is to be consumed off the | 16 |
| premises
where it is sold (other than alcoholic beverages, soft | 17 |
| drinks and food that
has been prepared for immediate | 18 |
| consumption) and prescription and
non-prescription medicines, | 19 |
| drugs, medical appliances, and insulin, urine
testing | 20 |
| materials, syringes, and needles used by diabetics, for human | 21 |
| use,
when purchased for use by a person receiving medical | 22 |
| assistance under
Article 5 of the Illinois Public Aid Code who | 23 |
| resides in a licensed
long-term care facility, as defined in | 24 |
| the Nursing Home Care Act.
| 25 |
| (14) Semen used for artificial insemination of livestock | 26 |
| for direct
agricultural production.
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| (15) Horses, or interests in horses, registered with and | 2 |
| meeting the
requirements of any of the
Arabian Horse Club | 3 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 4 |
| Horse Association, United States
Trotting Association, or | 5 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 6 |
| racing for prizes. This item (15) is exempt from the provisions | 7 |
| of Section 3-55, and the exemption provided for under this item | 8 |
| (15) applies for all periods beginning May 30, 1995, but no | 9 |
| claim for credit or refund is allowed on or after January 1, | 10 |
| 2008 (the effective date of Public Act 95-88)
for such taxes | 11 |
| paid during the period beginning May 30, 2000 and ending on | 12 |
| January 1, 2008 (the effective date of Public Act 95-88).
| 13 |
| (16) Computers and communications equipment utilized for | 14 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 15 |
| analysis, or treatment of hospital patients sold to a lessor | 16 |
| who leases the
equipment, under a lease of one year or longer | 17 |
| executed or in effect at the
time of the purchase, to a
| 18 |
| 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.
| 21 |
| (17) Personal property sold to a lessor who leases the
| 22 |
| property, under a
lease of one year or longer executed or in | 23 |
| effect at the time of the purchase,
to a governmental body
that | 24 |
| has been issued an active tax exemption identification number | 25 |
| by the
Department under Section 1g of the Retailers' Occupation | 26 |
| Tax Act.
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| (18) Beginning with taxable years ending on or after | 2 |
| December
31, 1995
and
ending with taxable years ending on or | 3 |
| before December 31, 2004,
personal property that is
donated for | 4 |
| disaster relief to be used in a State or federally declared
| 5 |
| disaster area in Illinois or bordering Illinois by a | 6 |
| manufacturer or retailer
that is registered in this State to a | 7 |
| corporation, society, association,
foundation, or institution | 8 |
| that has been issued a sales tax exemption
identification | 9 |
| number by the Department that assists victims of the disaster
| 10 |
| who reside within the declared disaster area.
| 11 |
| (19) Beginning with taxable years ending on or after | 12 |
| December
31, 1995 and
ending with taxable years ending on or | 13 |
| before December 31, 2004, personal
property that is used in the | 14 |
| performance of infrastructure repairs in this
State, including | 15 |
| but not limited to municipal roads and streets, access roads,
| 16 |
| bridges, sidewalks, waste disposal systems, water and sewer | 17 |
| line extensions,
water distribution and purification | 18 |
| facilities, storm water drainage and
retention facilities, and | 19 |
| sewage treatment facilities, resulting from a State
or | 20 |
| federally declared disaster in Illinois or bordering Illinois | 21 |
| when such
repairs are initiated on facilities located in the | 22 |
| declared disaster area
within 6 months after the disaster.
| 23 |
| (20) Beginning July 1, 1999, game or game birds sold at a | 24 |
| "game breeding
and
hunting preserve area" or an "exotic game | 25 |
| hunting area" as those terms are used
in the
Wildlife Code or | 26 |
| at a hunting enclosure approved through rules adopted by the
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Department of Natural Resources. This paragraph is exempt from | 2 |
| the provisions
of
Section 3-55.
| 3 |
| (21) A motor vehicle, as that term is defined in Section | 4 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 5 |
| corporation, limited liability
company, society, association, | 6 |
| foundation, or institution that is determined by
the Department | 7 |
| to be organized and operated exclusively for educational
| 8 |
| purposes. For purposes of this exemption, "a corporation, | 9 |
| limited liability
company, society, association, foundation, | 10 |
| or institution organized and
operated
exclusively for | 11 |
| educational purposes" means all tax-supported public schools,
| 12 |
| private schools that offer systematic instruction in useful | 13 |
| branches of
learning by methods common to public schools and | 14 |
| that compare favorably in
their scope and intensity with the | 15 |
| course of study presented in tax-supported
schools, and | 16 |
| vocational or technical schools or institutes organized and
| 17 |
| operated exclusively to provide a course of study of not less | 18 |
| than 6 weeks
duration and designed to prepare individuals to | 19 |
| follow a trade or to pursue a
manual, technical, mechanical, | 20 |
| industrial, business, or commercial
occupation.
| 21 |
| (22) Beginning January 1, 2000, personal property, | 22 |
| including
food,
purchased through fundraising
events for the | 23 |
| benefit of
a public or private elementary or
secondary school, | 24 |
| a group of those schools, or one or more school
districts if | 25 |
| the events are
sponsored by an entity recognized by the school | 26 |
| district that consists
primarily of volunteers and includes
|
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| parents and teachers of the school children. This paragraph | 2 |
| does not apply
to fundraising
events (i) for the benefit of | 3 |
| private home instruction or (ii)
for which the fundraising | 4 |
| entity purchases the personal property sold at
the events from | 5 |
| another individual or entity that sold the property for the
| 6 |
| purpose of resale by the fundraising entity and that
profits | 7 |
| from the sale to the
fundraising entity. This paragraph is | 8 |
| exempt
from the provisions
of Section 3-55.
| 9 |
| (23) Beginning January 1, 2000
and through December 31, | 10 |
| 2001, new or used automatic vending
machines that prepare and | 11 |
| serve hot food and beverages, including coffee, soup,
and
other | 12 |
| items, and replacement parts for these machines.
Beginning | 13 |
| January 1,
2002 and through June 30, 2003, machines and parts | 14 |
| for
machines used in commercial, coin-operated amusement
and | 15 |
| vending business if a use or occupation tax is paid on the | 16 |
| gross receipts
derived from
the use of the commercial, | 17 |
| coin-operated amusement and vending machines.
This paragraph | 18 |
| is exempt from the provisions of Section 3-55.
| 19 |
| (24) Beginning
on the effective date of this amendatory Act | 20 |
| of the 92nd General Assembly,
computers and communications | 21 |
| equipment
utilized for any hospital purpose and equipment used | 22 |
| in the diagnosis,
analysis, or treatment of hospital patients | 23 |
| sold to a lessor who leases the
equipment, under a lease of one | 24 |
| year or longer executed or in effect at the
time of the | 25 |
| purchase, to a hospital that has been issued an active tax
| 26 |
| exemption identification number by the Department under |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 2 |
| is exempt from the provisions of
Section 3-55.
| 3 |
| (25) Beginning
on the effective date of this amendatory Act | 4 |
| of the 92nd General Assembly,
personal property sold to a | 5 |
| lessor who
leases the property, under a lease of one year or | 6 |
| longer executed or in effect
at the time of the purchase, to a | 7 |
| governmental body that has been issued an
active tax exemption | 8 |
| identification number by the Department under Section 1g
of the | 9 |
| Retailers' Occupation Tax Act. This paragraph is exempt from | 10 |
| the
provisions of Section 3-55.
| 11 |
| (26) Beginning on January 1, 2002 and through June 30, | 12 |
| 2011, tangible personal property
purchased
from an Illinois | 13 |
| retailer by a taxpayer engaged in centralized purchasing
| 14 |
| activities in Illinois who will, upon receipt of the property | 15 |
| in Illinois,
temporarily store the property in Illinois (i) for | 16 |
| the purpose of subsequently
transporting it outside this State | 17 |
| for use or consumption thereafter solely
outside this State or | 18 |
| (ii) for the purpose of being processed, fabricated, or
| 19 |
| manufactured into, attached to, or incorporated into other | 20 |
| tangible personal
property to be transported outside this State | 21 |
| and thereafter used or consumed
solely outside this State. The | 22 |
| Director of Revenue shall, pursuant to rules
adopted in | 23 |
| accordance with the Illinois Administrative Procedure Act, | 24 |
| issue a
permit to any taxpayer in good standing with the | 25 |
| Department who is eligible for
the exemption under this | 26 |
| paragraph (26). The permit issued under
this paragraph (26) |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| shall authorize the holder, to the extent and
in the manner | 2 |
| specified in the rules adopted under this Act, to purchase
| 3 |
| tangible personal property from a retailer exempt from the | 4 |
| taxes imposed by
this Act. Taxpayers shall maintain all | 5 |
| necessary books and records to
substantiate the use and | 6 |
| consumption of all such tangible personal property
outside of | 7 |
| the State of Illinois.
| 8 |
| (27) Beginning January 1, 2008, tangible personal property | 9 |
| used in the construction or maintenance of a community water | 10 |
| supply, as defined under Section 3.145 of the Environmental | 11 |
| Protection Act, that is operated by a not-for-profit | 12 |
| corporation that holds a valid water supply permit issued under | 13 |
| Title IV of the Environmental Protection Act. This paragraph is | 14 |
| exempt from the provisions of Section 3-55.
| 15 |
| (28) Building materials and personal property used in a | 16 |
| full service grocery store if those items qualify for an | 17 |
| exemption under the Food Desert Mitigation Act. This paragraph | 18 |
| is exempt from the provisions of Section 3-55. | 19 |
| (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | 20 |
| eff. 1-1-08; 95-876, eff. 8-21-08.)
| 21 |
| Section 10-25. The Retailers' Occupation Tax Act is amended | 22 |
| by changing Section 2-5 as follows:
| 23 |
| (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| 24 |
| Sec. 2-5. Exemptions. Gross receipts from proceeds from the |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| sale of
the following tangible personal property are exempt | 2 |
| from the tax imposed
by this Act:
| 3 |
| (1) Farm chemicals.
| 4 |
| (2) 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 (2).
Agricultural chemical tender tanks and dry boxes | 19 |
| 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, |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| or spreaders.
Precision farming equipment includes, but is not | 2 |
| limited to,
soil testing sensors, computers, monitors, | 3 |
| software, global positioning
and mapping systems, and other | 4 |
| such equipment.
| 5 |
| Farm machinery and equipment also includes computers, | 6 |
| sensors, software, and
related equipment used primarily in the
| 7 |
| computer-assisted operation of production agriculture | 8 |
| facilities, equipment,
and activities such as, but
not limited | 9 |
| to,
the collection, monitoring, and correlation of
animal and | 10 |
| crop data for the purpose of
formulating animal diets and | 11 |
| agricultural chemicals. This item (7) is exempt
from the | 12 |
| provisions of
Section 2-70.
| 13 |
| (3) Until July 1, 2003, distillation machinery and | 14 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 15 |
| retailer, certified by the user to be used
only for the | 16 |
| production of ethyl alcohol that will be used for consumption
| 17 |
| as motor fuel or as a component of motor fuel for the personal | 18 |
| use of the
user, and not subject to sale or resale.
| 19 |
| (4) Until July 1, 2003 and beginning again September 1, | 20 |
| 2004, graphic arts machinery and equipment, including
repair | 21 |
| and
replacement parts, both new and used, and including that | 22 |
| manufactured on
special order or purchased for lease, certified | 23 |
| by the purchaser to be used
primarily for graphic arts | 24 |
| production.
Equipment includes chemicals or
chemicals acting | 25 |
| as catalysts but only if
the chemicals or chemicals acting as | 26 |
| catalysts effect a direct and immediate
change upon a
graphic |
|
|
|
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| 1 |
| arts product.
| 2 |
| (5) A motor vehicle of the first division, a motor vehicle | 3 |
| of the second division that is a self contained motor vehicle | 4 |
| designed or permanently converted to provide living quarters | 5 |
| for recreational, camping, or travel use, with direct walk | 6 |
| through access to the living quarters from the driver's seat, | 7 |
| or a motor vehicle of the second division that is of the van | 8 |
| configuration designed for the transportation of not less than | 9 |
| 7 nor more than 16 passengers, as defined in Section 1-146 of | 10 |
| the Illinois Vehicle Code, that is used for automobile renting, | 11 |
| as defined in the Automobile Renting Occupation and Use Tax | 12 |
| Act. This paragraph is exempt from
the provisions of Section | 13 |
| 2-70.
| 14 |
| (6) Personal property sold by a teacher-sponsored student | 15 |
| organization
affiliated with an elementary or secondary school | 16 |
| located in Illinois.
| 17 |
| (7) Until July 1, 2003, proceeds of that portion of the | 18 |
| selling price of
a passenger car the
sale of which is subject | 19 |
| to the Replacement Vehicle Tax.
| 20 |
| (8) Personal property sold to an Illinois county fair | 21 |
| association for
use in conducting, operating, or promoting the | 22 |
| county fair.
| 23 |
| (9) Personal property sold to a not-for-profit arts
or | 24 |
| cultural organization that establishes, by proof required by | 25 |
| the Department
by
rule, that it has received an exemption under | 26 |
| Section 501(c)(3) of the
Internal Revenue Code and that is |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| organized and operated primarily for the
presentation
or | 2 |
| support of arts or cultural programming, activities, or | 3 |
| services. These
organizations include, but are not limited to, | 4 |
| music and dramatic arts
organizations such as symphony | 5 |
| orchestras and theatrical groups, arts and
cultural service | 6 |
| organizations, local arts councils, visual arts organizations,
| 7 |
| and media arts organizations.
On and after the effective date | 8 |
| of this amendatory Act of the 92nd General
Assembly, however, | 9 |
| an entity otherwise eligible for this exemption shall not
make | 10 |
| tax-free purchases unless it has an active identification | 11 |
| number issued by
the Department.
| 12 |
| (10) Personal property sold by a corporation, society, | 13 |
| association,
foundation, institution, or organization, other | 14 |
| than a limited liability
company, that is organized and | 15 |
| operated as a not-for-profit service enterprise
for the benefit | 16 |
| of persons 65 years of age or older if the personal property
| 17 |
| was not purchased by the enterprise for the purpose of resale | 18 |
| by the
enterprise.
| 19 |
| (11) Personal property sold to a governmental body, to a | 20 |
| corporation,
society, association, foundation, or institution | 21 |
| organized and operated
exclusively for charitable, religious, | 22 |
| or educational purposes, or to a
not-for-profit corporation, | 23 |
| society, association, foundation, institution,
or organization | 24 |
| that has no compensated officers or employees and that is
| 25 |
| organized and operated primarily for the recreation of persons | 26 |
| 55 years of
age or older. A limited liability company may |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| qualify for the exemption under
this paragraph only if the | 2 |
| limited liability company is organized and operated
| 3 |
| exclusively for educational purposes. On and after July 1, | 4 |
| 1987, however, no
entity otherwise eligible for this exemption | 5 |
| shall make tax-free purchases
unless it has an active | 6 |
| identification number issued by the Department.
| 7 |
| (12) Tangible personal property sold to
interstate | 8 |
| carriers
for hire for use as
rolling stock moving in interstate | 9 |
| commerce or to lessors under leases of
one year or longer | 10 |
| executed or in effect at the time of purchase by
interstate | 11 |
| carriers for hire for use as rolling stock moving in interstate
| 12 |
| commerce and equipment operated by a telecommunications | 13 |
| provider, licensed as a
common carrier by the Federal | 14 |
| Communications Commission, which is permanently
installed in | 15 |
| or affixed to aircraft moving in interstate commerce.
| 16 |
| (12-5) On and after July 1, 2003 and through June 30, 2004, | 17 |
| motor vehicles of the second division
with a gross vehicle | 18 |
| weight in excess of 8,000 pounds
that
are
subject to the | 19 |
| commercial distribution fee imposed under Section 3-815.1 of
| 20 |
| the Illinois
Vehicle Code. Beginning on July 1, 2004 and | 21 |
| through June 30, 2005, the use in this State of motor vehicles | 22 |
| of the second division: (i) with a gross vehicle weight rating | 23 |
| in excess of 8,000 pounds; (ii) that are subject to the | 24 |
| commercial distribution fee imposed under Section 3-815.1 of | 25 |
| the Illinois Vehicle Code; and (iii) that are primarily used | 26 |
| for commercial purposes. Through June 30, 2005, this
exemption |
|
|
|
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|
| 1 |
| applies to repair and replacement parts added
after the
initial | 2 |
| purchase of such a motor vehicle if that motor vehicle is used | 3 |
| in a
manner that
would qualify for the rolling stock exemption | 4 |
| otherwise provided for in this
Act. For purposes of this | 5 |
| paragraph, "used for commercial purposes" means the | 6 |
| transportation of persons or property in furtherance of any | 7 |
| commercial or industrial enterprise whether for-hire or not.
| 8 |
| (13) Proceeds from sales to owners, lessors, or
shippers of
| 9 |
| tangible personal property that is utilized by interstate | 10 |
| carriers for
hire for use as rolling stock moving in interstate | 11 |
| commerce
and equipment operated by a telecommunications | 12 |
| provider, licensed as a
common carrier by the Federal | 13 |
| Communications Commission, which is
permanently installed in | 14 |
| or affixed to aircraft moving in interstate commerce.
| 15 |
| (14) Machinery and equipment that will be used by the | 16 |
| purchaser, or a
lessee of the purchaser, primarily in the | 17 |
| process of manufacturing or
assembling tangible personal | 18 |
| property for wholesale or retail sale or
lease, whether the | 19 |
| sale or lease is made directly by the manufacturer or by
some | 20 |
| other person, whether the materials used in the process are | 21 |
| owned by
the manufacturer or some other person, or whether the | 22 |
| sale or lease is made
apart from or as an incident to the | 23 |
| seller's engaging in the service
occupation of producing | 24 |
| machines, tools, dies, jigs, patterns, gauges, or
other similar | 25 |
| items of no commercial value on special order for a particular
| 26 |
| purchaser.
|
|
|
|
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|
| 1 |
| (15) Proceeds of mandatory service charges separately | 2 |
| stated on
customers' bills for purchase and consumption of food | 3 |
| and beverages, to the
extent that the proceeds of the service | 4 |
| charge are in fact turned over as
tips or as a substitute for | 5 |
| tips to the employees who participate directly
in preparing, | 6 |
| serving, hosting or cleaning up the food or beverage function
| 7 |
| with respect to which the service charge is imposed.
| 8 |
| (16) Petroleum products sold to a purchaser if the seller
| 9 |
| is prohibited by federal law from charging tax to the | 10 |
| purchaser.
| 11 |
| (17) Tangible personal property sold to a common carrier by | 12 |
| rail or
motor that
receives the physical possession of the | 13 |
| property in Illinois and that
transports the property, or | 14 |
| shares with another common carrier in the
transportation of the | 15 |
| property, out of Illinois on a standard uniform bill
of lading | 16 |
| showing the seller of the property as the shipper or consignor | 17 |
| of
the property to a destination outside Illinois, for use | 18 |
| outside Illinois.
| 19 |
| (18) Legal tender, currency, medallions, or gold or silver | 20 |
| coinage
issued by the State of Illinois, the government of the | 21 |
| United States of
America, or the government of any foreign | 22 |
| country, and bullion.
| 23 |
| (19) Until July 1 2003, oil field exploration, drilling, | 24 |
| and production
equipment, including
(i) rigs and parts of rigs, | 25 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 26 |
| tubular goods, including casing and
drill strings, (iii) pumps |
|
|
|
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|
| 1 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 2 |
| individual replacement part for oil field exploration,
| 3 |
| drilling, and production equipment, and (vi) machinery and | 4 |
| equipment purchased
for lease; but
excluding motor vehicles | 5 |
| required to be registered under the Illinois
Vehicle Code.
| 6 |
| (20) Photoprocessing machinery and equipment, including | 7 |
| repair and
replacement parts, both new and used, including that | 8 |
| manufactured on
special order, certified by the purchaser to be | 9 |
| used primarily for
photoprocessing, and including | 10 |
| photoprocessing machinery and equipment
purchased for lease.
| 11 |
| (21) Until July 1, 2003, coal exploration, mining, | 12 |
| offhighway hauling,
processing,
maintenance, and reclamation | 13 |
| equipment, including
replacement parts and equipment, and | 14 |
| including
equipment purchased for lease, but excluding motor | 15 |
| vehicles required to be
registered under the Illinois Vehicle | 16 |
| Code.
| 17 |
| (22) Fuel and petroleum products sold to or used by an air | 18 |
| carrier,
certified by the carrier to be used for consumption, | 19 |
| shipment, or storage
in the conduct of its business as an air | 20 |
| common carrier, for a flight
destined for or returning from a | 21 |
| location or locations
outside the United States without regard | 22 |
| to previous or subsequent domestic
stopovers.
| 23 |
| (23) A transaction in which the purchase order is received | 24 |
| by a florist
who is located outside Illinois, but who has a | 25 |
| florist located in Illinois
deliver the property to the | 26 |
| purchaser or the purchaser's donee in Illinois.
|
|
|
|
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|
| 1 |
| (24) Fuel consumed or used in the operation of ships, | 2 |
| barges, or vessels
that are used primarily in or for the | 3 |
| transportation of property or the
conveyance of persons for | 4 |
| hire on rivers bordering on this State if the
fuel is delivered | 5 |
| by the seller to the purchaser's barge, ship, or vessel
while | 6 |
| it is afloat upon that bordering river.
| 7 |
| (25) Except as provided in item (25-5) of this Section, a
| 8 |
| motor vehicle sold in this State to a nonresident even though | 9 |
| the
motor vehicle is delivered to the nonresident in this | 10 |
| State, if the motor
vehicle is not to be titled in this State, | 11 |
| and if a drive-away permit
is issued to the motor vehicle as | 12 |
| provided in Section 3-603 of the Illinois
Vehicle Code or if | 13 |
| the nonresident purchaser has vehicle registration
plates to | 14 |
| transfer to the motor vehicle upon returning to his or her home
| 15 |
| state. The issuance of the drive-away permit or having
the
| 16 |
| out-of-state registration plates to be transferred is prima | 17 |
| facie evidence
that the motor vehicle will not be titled in | 18 |
| this State.
| 19 |
| (25-5) The exemption under item (25) does not apply if the | 20 |
| state in which the motor vehicle will be titled does not allow | 21 |
| a reciprocal exemption for a motor vehicle sold and delivered | 22 |
| in that state to an Illinois resident but titled in Illinois. | 23 |
| The tax collected under this Act on the sale of a motor vehicle | 24 |
| in this State to a resident of another state that does not | 25 |
| allow a reciprocal exemption shall be imposed at a rate equal | 26 |
| to the state's rate of tax on taxable property in the state in |
|
|
|
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|
| 1 |
| which the purchaser is a resident, except that the tax shall | 2 |
| not exceed the tax that would otherwise be imposed under this | 3 |
| Act. At the time of the sale, the purchaser shall execute a | 4 |
| statement, signed under penalty of perjury, of his or her | 5 |
| intent to title the vehicle in the state in which the purchaser | 6 |
| is a resident within 30 days after the sale and of the fact of | 7 |
| the payment to the State of Illinois of tax in an amount | 8 |
| equivalent to the state's rate of tax on taxable property in | 9 |
| his or her state of residence and shall submit the statement to | 10 |
| the appropriate tax collection agency in his or her state of | 11 |
| residence. In addition, the retailer must retain a signed copy | 12 |
| of the statement in his or her records. Nothing in this item | 13 |
| shall be construed to require the removal of the vehicle from | 14 |
| this state following the filing of an intent to title the | 15 |
| vehicle in the purchaser's state of residence if the purchaser | 16 |
| titles the vehicle in his or her state of residence within 30 | 17 |
| days after the date of sale. The tax collected under this Act | 18 |
| in accordance with this item (25-5) shall be proportionately | 19 |
| distributed as if the tax were collected at the 6.25% general | 20 |
| rate imposed under this Act.
| 21 |
| (25-7) Beginning on July 1, 2007, no tax is imposed under | 22 |
| this Act on the sale of an aircraft, as defined in Section 3 of | 23 |
| the Illinois Aeronautics Act, if all of the following | 24 |
| conditions are met: | 25 |
| (1) the aircraft leaves this State within 15 days after | 26 |
| the later of either the issuance of the final billing for |
|
|
|
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|
| 1 |
| the sale of the aircraft, or the authorized approval for | 2 |
| return to service, completion of the maintenance record | 3 |
| entry, and completion of the test flight and ground test | 4 |
| for inspection, as required by 14 C.F.R. 91.407; | 5 |
| (2) the aircraft is not based or registered in this | 6 |
| State after the sale of the aircraft; and | 7 |
| (3) the seller retains in his or her books and records | 8 |
| and provides to the Department a signed and dated | 9 |
| certification from the purchaser, on a form prescribed by | 10 |
| the Department, certifying that the requirements of this | 11 |
| item (25-7) are met. The certificate must also include the | 12 |
| name and address of the purchaser, the address of the | 13 |
| location where the aircraft is to be titled or registered, | 14 |
| the address of the primary physical location of the | 15 |
| aircraft, and other information that the Department may | 16 |
| reasonably require. | 17 |
| For purposes of this item (25-7): | 18 |
| "Based in this State" means hangared, stored, or otherwise | 19 |
| used, excluding post-sale customizations as defined in this | 20 |
| Section, for 10 or more days in each 12-month period | 21 |
| immediately following the date of the sale of the aircraft. | 22 |
| "Registered in this State" means an aircraft registered | 23 |
| with the Department of Transportation, Aeronautics Division, | 24 |
| or titled or registered with the Federal Aviation | 25 |
| Administration to an address located in this State. | 26 |
| This paragraph (25-7) is exempt from the provisions
of
|
|
|
|
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|
| 1 |
| Section 2-70.
| 2 |
| (26) Semen used for artificial insemination of livestock | 3 |
| for direct
agricultural production.
| 4 |
| (27) Horses, or interests in horses, registered with and | 5 |
| meeting the
requirements of any of the
Arabian Horse Club | 6 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 7 |
| Horse Association, United States
Trotting Association, or | 8 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 9 |
| racing for prizes. This item (27) is exempt from the provisions | 10 |
| of Section 2-70, and the exemption provided for under this item | 11 |
| (27) applies for all periods beginning May 30, 1995, but no | 12 |
| claim for credit or refund is allowed on or after January 1, | 13 |
| 2008 (the effective date of Public Act 95-88)
for such taxes | 14 |
| paid during the period beginning May 30, 2000 and ending on | 15 |
| January 1, 2008 (the effective date of Public Act 95-88)
.
| 16 |
| (28) Computers and communications equipment utilized for | 17 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 18 |
| analysis, or treatment of hospital patients sold to a lessor | 19 |
| who leases the
equipment, under a lease of one year or longer | 20 |
| executed or in effect at the
time of the purchase, to a
| 21 |
| hospital
that has been issued an active tax exemption | 22 |
| identification number by the
Department under Section 1g of | 23 |
| this Act.
| 24 |
| (29) Personal property sold to a lessor who leases the
| 25 |
| property, under a
lease of one year or longer executed or in | 26 |
| effect at the time of the purchase,
to a governmental body
that |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| has been issued an active tax exemption identification number | 2 |
| by the
Department under Section 1g of this Act.
| 3 |
| (30) 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 |
| (31) 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 |
| (32) Beginning July 1, 1999, game or game birds sold at a | 26 |
| "game breeding
and
hunting preserve area" or an "exotic game |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| hunting area" as those terms are used
in the
Wildlife Code or | 2 |
| at a hunting enclosure approved through rules adopted by the
| 3 |
| Department of Natural Resources. This paragraph is exempt from | 4 |
| the provisions
of
Section 2-70.
| 5 |
| (33) A motor vehicle, as that term is defined in Section | 6 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 7 |
| corporation, limited liability
company, society, association, | 8 |
| foundation, or institution that is determined by
the Department | 9 |
| to be organized and operated exclusively for educational
| 10 |
| purposes. For purposes of this exemption, "a corporation, | 11 |
| limited liability
company, society, association, foundation, | 12 |
| or institution organized and
operated
exclusively for | 13 |
| educational purposes" means all tax-supported public schools,
| 14 |
| private schools that offer systematic instruction in useful | 15 |
| branches of
learning by methods common to public schools and | 16 |
| that compare favorably in
their scope and intensity with the | 17 |
| course of study presented in tax-supported
schools, and | 18 |
| vocational or technical schools or institutes organized and
| 19 |
| operated exclusively to provide a course of study of not less | 20 |
| than 6 weeks
duration and designed to prepare individuals to | 21 |
| follow a trade or to pursue a
manual, technical, mechanical, | 22 |
| industrial, business, or commercial
occupation.
| 23 |
| (34) Beginning January 1, 2000, personal property, | 24 |
| including food, purchased
through fundraising events for the | 25 |
| benefit of a public or private elementary or
secondary school, | 26 |
| a group of those schools, or one or more school districts if
|
|
|
|
09600SB1691ham002 |
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|
| 1 |
| the events are sponsored by an entity recognized by the school | 2 |
| district that
consists primarily of volunteers and includes | 3 |
| parents and teachers of the
school children. This paragraph | 4 |
| does not apply to fundraising events (i) for
the benefit of | 5 |
| private home instruction or (ii) for which the fundraising
| 6 |
| entity purchases the personal property sold at the events from | 7 |
| another
individual or entity that sold the property for the | 8 |
| purpose of resale by the
fundraising entity and that profits | 9 |
| from the sale to the fundraising entity.
This paragraph is | 10 |
| exempt from the provisions of Section 2-70.
| 11 |
| (35) Beginning January 1, 2000 and through December 31, | 12 |
| 2001, new or used
automatic vending machines that prepare and | 13 |
| serve hot food and beverages,
including coffee, soup, and other | 14 |
| items, and replacement parts for these
machines. Beginning | 15 |
| January 1, 2002 and through June 30, 2003, machines
and parts | 16 |
| for machines used in
commercial, coin-operated amusement and | 17 |
| vending business if a use or occupation
tax is paid on the | 18 |
| gross receipts derived from the use of the commercial,
| 19 |
| coin-operated amusement and vending machines. This paragraph | 20 |
| is exempt from
the provisions of Section 2-70.
| 21 |
| (35-5) Beginning August 23, 2001 and through June 30, 2011, | 22 |
| food for human consumption that is to be consumed off
the | 23 |
| premises where it is sold (other than alcoholic beverages, soft | 24 |
| drinks,
and food that has been prepared for immediate | 25 |
| consumption) and prescription
and nonprescription medicines, | 26 |
| drugs, medical appliances, and insulin, urine
testing |
|
|
|
09600SB1691ham002 |
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|
| 1 |
| materials, syringes, and needles used by diabetics, for human | 2 |
| use, when
purchased for use by a person receiving medical | 3 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 4 |
| resides in a licensed long-term care facility,
as defined in | 5 |
| the Nursing Home Care Act.
| 6 |
| (36) Beginning August 2, 2001, computers and | 7 |
| communications equipment
utilized for any hospital purpose and | 8 |
| equipment used in the diagnosis,
analysis, or treatment of | 9 |
| hospital patients sold to a lessor who leases the
equipment, | 10 |
| under a lease of one year or longer executed or in effect at | 11 |
| the
time of the purchase, to a hospital that has been issued an | 12 |
| active tax
exemption identification number by the Department | 13 |
| under Section 1g of this Act.
This paragraph is exempt from the | 14 |
| provisions of Section 2-70.
| 15 |
| (37) Beginning August 2, 2001, personal property sold to a | 16 |
| lessor who
leases the property, under a lease of one year or | 17 |
| longer executed or in effect
at the time of the purchase, to a | 18 |
| governmental body that has been issued an
active tax exemption | 19 |
| identification number by the Department under Section 1g
of | 20 |
| this Act. This paragraph is exempt from the provisions of | 21 |
| Section 2-70.
| 22 |
| (38) Beginning on January 1, 2002 and through June 30, | 23 |
| 2011, tangible personal property purchased
from an Illinois | 24 |
| retailer by a taxpayer engaged in centralized purchasing
| 25 |
| activities in Illinois who will, upon receipt of the property | 26 |
| in Illinois,
temporarily store the property in Illinois (i) for |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| the purpose of subsequently
transporting it outside this State | 2 |
| for use or consumption thereafter solely
outside this State or | 3 |
| (ii) for the purpose of being processed, fabricated, or
| 4 |
| manufactured into, attached to, or incorporated into other | 5 |
| tangible personal
property to be transported outside this State | 6 |
| and thereafter used or consumed
solely outside this State. The | 7 |
| Director of Revenue shall, pursuant to rules
adopted in | 8 |
| accordance with the Illinois Administrative Procedure Act, | 9 |
| issue a
permit to any taxpayer in good standing with the | 10 |
| Department who is eligible for
the exemption under this | 11 |
| paragraph (38). The permit issued under
this paragraph (38) | 12 |
| shall authorize the holder, to the extent and
in the manner | 13 |
| specified in the rules adopted under this Act, to purchase
| 14 |
| tangible personal property from a retailer exempt from the | 15 |
| taxes imposed by
this Act. Taxpayers shall maintain all | 16 |
| necessary books and records to
substantiate the use and | 17 |
| consumption of all such tangible personal property
outside of | 18 |
| the State of Illinois.
| 19 |
| (39) Beginning January 1, 2008, tangible personal property | 20 |
| used in the construction or maintenance of a community water | 21 |
| supply, as defined under Section 3.145 of the Environmental | 22 |
| Protection Act, that is operated by a not-for-profit | 23 |
| corporation that holds a valid water supply permit issued under | 24 |
| Title IV of the Environmental Protection Act. This paragraph is | 25 |
| exempt from the provisions of Section 2-70.
| 26 |
| (40) Building materials and personal property used in a |
|
|
|
09600SB1691ham002 |
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LRB096 11154 HLH 27539 a |
|
| 1 |
| full service grocery store if those items qualify for an | 2 |
| exemption under the Food Desert Mitigation Act. This paragraph | 3 |
| is exempt from the provisions of Section 2-70. | 4 |
| (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-233, | 5 |
| eff. 8-16-07; 95-304, eff. 8-20-07; 95-538, eff. 1-1-08; | 6 |
| 95-707, eff. 1-11-08; 95-876, eff. 8-21-08.)
| 7 |
| Section 10-30. The Gas Revenue Tax Act is amended by adding | 8 |
| Section 16 as follows: | 9 |
| (35 ILCS 615/16 new) | 10 |
| Sec. 16. Food desert mitigation credit. Credits may be | 11 |
| awarded against the tax imposed under this Act as provided in | 12 |
| the Food Desert Mitigation Act. This Section is exempt from the | 13 |
| provisions of Section 2a.3. | 14 |
| Section 10-35. The Electricity Excise Tax Law is amended by | 15 |
| adding Section 2-18 as follows: | 16 |
| (35 ILCS 640/2-18 new) | 17 |
| Sec. 2-18. Food desert mitigation credit. Credits may be | 18 |
| awarded against the tax imposed under this Act as provided in | 19 |
| the Food Desert Mitigation Act. This Section is exempt from the | 20 |
| provisions of Section 2-6.
| 21 |
| ARTICLE 99 |
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09600SB1691ham002 |
- 81 - |
LRB096 11154 HLH 27539 a |
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| 1 |
| Section 99-99. Effective date. This Act takes effect upon | 2 |
| becoming law.".
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