HB5699 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5699

 

Introduced , by Rep. Jack D. Franks

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that repair and replacement parts transferred as part of a goodwill repair of exempt farm machinery and equipment are also exempt from the taxes imposed under the Acts.


LRB099 16995 HLH 41347 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5699LRB099 16995 HLH 41347 b

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

 

 

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

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23    (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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1replacement parts for the machinery and equipment, including
2machinery and equipment purchased for lease, and including
3implements of husbandry defined in Section 1-130 of the
4Illinois Vehicle Code, farm machinery and agricultural
5chemical and fertilizer spreaders, and nurse wagons required to
6be registered under Section 3-809 of the Illinois Vehicle Code,
7but excluding other motor vehicles required to be registered
8under the Illinois Vehicle Code. Horticultural polyhouses or
9hoop houses used for propagating, growing, or overwintering
10plants shall be considered farm machinery and equipment under
11this item (11). Agricultural chemical tender tanks and dry
12boxes shall include units sold separately from a motor vehicle
13required to be licensed and units sold mounted on a motor
14vehicle required to be licensed if the selling price of the
15tender is separately stated.
16    Farm machinery and equipment shall include precision
17farming equipment that is installed or purchased to be
18installed on farm machinery and equipment including, but not
19limited to, tractors, harvesters, sprayers, planters, seeders,
20or spreaders. Precision farming equipment includes, but is not
21limited to, soil testing sensors, computers, monitors,
22software, global positioning and mapping systems, and other
23such equipment.
24    Farm machinery and equipment also includes computers,
25sensors, software, and related equipment used primarily in the
26computer-assisted operation of production agriculture

 

 

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6    Repair and replacement parts transferred as part of a
7goodwill repair of exempt farm machinery and equipment shall
8also be exempt from the tax imposed by this Act. For purposes
9of this item (11), "goodwill repair" means a repair made by a
10seller for no charge that a seller is not obligated to make.
11    (12) Until June 30, 2013, fuel and petroleum products sold
12to or used by an air common carrier, certified by the carrier
13to be used for consumption, shipment, or storage in the conduct
14of its business as an air common carrier, for a flight destined
15for or returning from a location or locations outside the
16United States without regard to previous or subsequent domestic
17stopovers.
18    Beginning July 1, 2013, fuel and petroleum products sold to
19or used by an air carrier, certified by the carrier to be used
20for consumption, shipment, or storage in the conduct of its
21business as an air common carrier, for a flight that (i) is
22engaged in foreign trade or is engaged in trade between the
23United States and any of its possessions and (ii) transports at
24least one individual or package for hire from the city of
25origination to the city of final destination on the same
26aircraft, without regard to a change in the flight number of

 

 

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

 

 

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1equipment purchased for lease, but excluding motor vehicles
2required to be registered under the Illinois Vehicle Code. The
3changes made to this Section by Public Act 97-767 apply on and
4after July 1, 2003, but no claim for credit or refund is
5allowed on or after August 16, 2013 (the effective date of
6Public Act 98-456) for such taxes paid during the period
7beginning July 1, 2003 and ending on August 16, 2013 (the
8effective date of Public Act 98-456).
9    (17) Until July 1, 2003, distillation machinery and
10equipment, sold as a unit or kit, assembled or installed by the
11retailer, certified by the user to be used only for the
12production of ethyl alcohol that will be used for consumption
13as motor fuel or as a component of motor fuel for the personal
14use of the user, and not subject to sale or resale.
15    (18) Manufacturing and assembling machinery and equipment
16used primarily in the process of manufacturing or assembling
17tangible personal property for wholesale or retail sale or
18lease, whether that sale or lease is made directly by the
19manufacturer or by some other person, whether the materials
20used in the process are owned by the manufacturer or some other
21person, or whether that sale or lease is made apart from or as
22an incident to the seller's engaging in the service occupation
23of producing machines, tools, dies, jigs, patterns, gauges, or
24other similar items of no commercial value on special order for
25a particular purchaser. The exemption provided by this
26paragraph (18) does not include machinery and equipment used in

 

 

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1(i) the generation of electricity for wholesale or retail sale;
2(ii) the generation or treatment of natural or artificial gas
3for wholesale or retail sale that is delivered to customers
4through pipes, pipelines, or mains; or (iii) the treatment of
5water for wholesale or retail sale that is delivered to
6customers through pipes, pipelines, or mains. The provisions of
7Public Act 98-583 are declaratory of existing law as to the
8meaning and scope of this exemption.
9    (19) Personal property delivered to a purchaser or
10purchaser's donee inside Illinois when the purchase order for
11that personal property was received by a florist located
12outside Illinois who has a florist located inside Illinois
13deliver the personal property.
14    (20) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (21) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (21) is exempt from the provisions
22of Section 3-90, and the exemption provided for under this item
23(21) applies for all periods beginning May 30, 1995, but no
24claim for credit or refund is allowed on or after January 1,
252008 for such taxes paid during the period beginning May 30,
262000 and ending on January 1, 2008.

 

 

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

 

 

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

 

 

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1who reside within the declared disaster area.
2    (25) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is used in the
5performance of infrastructure repairs in this State, including
6but not limited to municipal roads and streets, access roads,
7bridges, sidewalks, waste disposal systems, water and sewer
8line extensions, water distribution and purification
9facilities, storm water drainage and retention facilities, and
10sewage treatment facilities, resulting from a State or
11federally declared disaster in Illinois or bordering Illinois
12when such repairs are initiated on facilities located in the
13declared disaster area within 6 months after the disaster.
14    (26) Beginning July 1, 1999, game or game birds purchased
15at a "game breeding and hunting preserve area" as that term is
16used in the Wildlife Code. This paragraph is exempt from the
17provisions of Section 3-90.
18    (27) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the Department
22to be organized and operated exclusively for educational
23purposes. For purposes of this exemption, "a corporation,
24limited liability company, society, association, foundation,
25or institution organized and operated exclusively for
26educational purposes" means all tax-supported public schools,

 

 

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1private schools that offer systematic instruction in useful
2branches of learning by methods common to public schools and
3that compare favorably in their scope and intensity with the
4course of study presented in tax-supported schools, and
5vocational or technical schools or institutes organized and
6operated exclusively to provide a course of study of not less
7than 6 weeks duration and designed to prepare individuals to
8follow a trade or to pursue a manual, technical, mechanical,
9industrial, business, or commercial occupation.
10    (28) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-90.
24    (29) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and other

 

 

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1items, and replacement parts for these machines. Beginning
2January 1, 2002 and through June 30, 2003, machines and parts
3for machines used in commercial, coin-operated amusement and
4vending business if a use or occupation tax is paid on the
5gross receipts derived from the use of the commercial,
6coin-operated amusement and vending machines. This paragraph
7is exempt from the provisions of Section 3-90.
8    (30) Beginning January 1, 2001 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages, soft
11drinks, and food that has been prepared for immediate
12consumption) and prescription and nonprescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (31) Beginning on the effective date of this amendatory Act
22of the 92nd General Assembly, computers and communications
23equipment utilized for any hospital purpose and equipment used
24in the diagnosis, analysis, or treatment of hospital patients
25purchased by a lessor who leases the equipment, under a lease
26of one year or longer executed or in effect at the time the

 

 

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

 

 

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1Section 1g of the Retailers' Occupation Tax Act. If the
2property is leased in a manner that does not qualify for this
3exemption or used in any other nonexempt manner, the lessor
4shall be liable for the tax imposed under this Act or the
5Service Use Tax Act, as the case may be, based on the fair
6market value of the property at the time the nonqualifying use
7occurs. No lessor shall collect or attempt to collect an amount
8(however designated) that purports to reimburse that lessor for
9the tax imposed by this Act or the Service Use Tax Act, as the
10case may be, if the tax has not been paid by the lessor. If a
11lessor improperly collects any such amount from the lessee, the
12lessee shall have a legal right to claim a refund of that
13amount from the lessor. If, however, that amount is not
14refunded to the lessee for any reason, the lessor is liable to
15pay that amount to the Department. This paragraph is exempt
16from the provisions of Section 3-90.
17    (33) On and after July 1, 2003 and through June 30, 2004,
18the use in this State of motor vehicles of the second division
19with a gross vehicle weight in excess of 8,000 pounds and that
20are subject to the commercial distribution fee imposed under
21Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
221, 2004 and through June 30, 2005, the use in this State of
23motor vehicles of the second division: (i) with a gross vehicle
24weight rating in excess of 8,000 pounds; (ii) that are subject
25to the commercial distribution fee imposed under Section
263-815.1 of the Illinois Vehicle Code; and (iii) that are

 

 

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1primarily used for commercial purposes. Through June 30, 2005,
2this exemption applies to repair and replacement parts added
3after the initial purchase of such a motor vehicle if that
4motor vehicle is used in a manner that would qualify for the
5rolling stock exemption otherwise provided for in this Act. For
6purposes of this paragraph, the term "used for commercial
7purposes" means the transportation of persons or property in
8furtherance of any commercial or industrial enterprise,
9whether for-hire or not.
10    (34) Beginning January 1, 2008, tangible personal property
11used in the construction or maintenance of a community water
12supply, as defined under Section 3.145 of the Environmental
13Protection Act, that is operated by a not-for-profit
14corporation that holds a valid water supply permit issued under
15Title IV of the Environmental Protection Act. This paragraph is
16exempt from the provisions of Section 3-90.
17    (35) Beginning January 1, 2010, materials, parts,
18equipment, components, and furnishings incorporated into or
19upon an aircraft as part of the modification, refurbishment,
20completion, replacement, repair, or maintenance of the
21aircraft. This exemption includes consumable supplies used in
22the modification, refurbishment, completion, replacement,
23repair, and maintenance of aircraft, but excludes any
24materials, parts, equipment, components, and consumable
25supplies used in the modification, replacement, repair, and
26maintenance of aircraft engines or power plants, whether such

 

 

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1engines or power plants are installed or uninstalled upon any
2such aircraft. "Consumable supplies" include, but are not
3limited to, adhesive, tape, sandpaper, general purpose
4lubricants, cleaning solution, latex gloves, and protective
5films. This exemption applies only to the use of qualifying
6tangible personal property by persons who modify, refurbish,
7complete, repair, replace, or maintain aircraft and who (i)
8hold an Air Agency Certificate and are empowered to operate an
9approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations. The exemption does not include aircraft operated
13by a commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part 129
15of the Federal Aviation Regulations. The changes made to this
16paragraph (35) by Public Act 98-534 are declarative of existing
17law.
18    (36) Tangible personal property purchased by a
19public-facilities corporation, as described in Section
2011-65-10 of the Illinois Municipal Code, for purposes of
21constructing or furnishing a municipal convention hall, but
22only if the legal title to the municipal convention hall is
23transferred to the municipality without any further
24consideration by or on behalf of the municipality at the time
25of the completion of the municipal convention hall or upon the
26retirement or redemption of any bonds or other debt instruments

 

 

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1issued by the public-facilities corporation in connection with
2the development of the municipal convention hall. This
3exemption includes existing public-facilities corporations as
4provided in Section 11-65-25 of the Illinois Municipal Code.
5This paragraph is exempt from the provisions of Section 3-90.
6(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
798-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
81-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
97-29-15.)
 
10    Section 10. The Service Use Tax Act is amended by changing
11Section 3-5 as follows:
 
12    (35 ILCS 110/3-5)
13    Sec. 3-5. Exemptions. Use of the following tangible
14personal property is exempt from the tax imposed by this Act:
15    (1) Personal property purchased from a corporation,
16society, association, foundation, institution, or
17organization, other than a limited liability company, that is
18organized and operated as a not-for-profit service enterprise
19for the benefit of persons 65 years of age or older if the
20personal property was not purchased by the enterprise for the
21purpose of resale by the enterprise.
22    (2) Personal property purchased by a non-profit Illinois
23county fair association for use in conducting, operating, or
24promoting the county fair.

 

 

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1    (3) Personal property purchased by a not-for-profit arts or
2cultural organization that establishes, by proof required by
3the Department by rule, that it has received an exemption under
4Section 501(c)(3) of the Internal Revenue Code and that is
5organized and operated primarily for the presentation or
6support of arts or cultural programming, activities, or
7services. These organizations include, but are not limited to,
8music and dramatic arts organizations such as symphony
9orchestras and theatrical groups, arts and cultural service
10organizations, local arts councils, visual arts organizations,
11and media arts organizations. On and after the effective date
12of this amendatory Act of the 92nd General Assembly, however,
13an entity otherwise eligible for this exemption shall not make
14tax-free purchases unless it has an active identification
15number issued by the Department.
16    (4) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (5) Until July 1, 2003 and beginning again on September 1,
212004 through August 30, 2014, graphic arts machinery and
22equipment, including repair and replacement parts, both new and
23used, and including that manufactured on special order or
24purchased for lease, certified by the purchaser to be used
25primarily for graphic arts production. Equipment includes
26chemicals or chemicals acting as catalysts but only if the

 

 

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

 

 

HB5699- 21 -LRB099 16995 HLH 41347 b

1installed on farm machinery and equipment including, but not
2limited to, tractors, harvesters, sprayers, planters, seeders,
3or spreaders. Precision farming equipment includes, but is not
4limited to, soil testing sensors, computers, monitors,
5software, global positioning and mapping systems, and other
6such equipment.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals. This item (7) is exempt from the
14provisions of Section 3-75.
15    Repair and replacement parts transferred as part of a
16goodwill repair of exempt farm machinery and equipment shall
17also be exempt from the tax imposed by this Act. For purposes
18of this item (7), "goodwill repair" means a repair made by a
19seller for no charge that a seller is not obligated to make.
20    (8) Until June 30, 2013, fuel and petroleum products sold
21to or used by an air common carrier, certified by the carrier
22to be used for consumption, shipment, or storage in the conduct
23of its business as an air common carrier, for a flight destined
24for or returning from a location or locations outside the
25United States without regard to previous or subsequent domestic
26stopovers.

 

 

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1    Beginning July 1, 2013, fuel and petroleum products sold to
2or used by an air carrier, certified by the carrier to be used
3for consumption, shipment, or storage in the conduct of its
4business as an air common carrier, for a flight that (i) is
5engaged in foreign trade or is engaged in trade between the
6United States and any of its possessions and (ii) transports at
7least one individual or package for hire from the city of
8origination to the city of final destination on the same
9aircraft, without regard to a change in the flight number of
10that aircraft.
11    (9) Proceeds of mandatory service charges separately
12stated on customers' bills for the purchase and consumption of
13food and beverages acquired as an incident to the purchase of a
14service from a serviceman, to the extent that the proceeds of
15the service charge are in fact turned over as tips or as a
16substitute for tips to the employees who participate directly
17in preparing, serving, hosting or cleaning up the food or
18beverage function with respect to which the service charge is
19imposed.
20    (10) Until July 1, 2003, oil field exploration, drilling,
21and production equipment, including (i) rigs and parts of rigs,
22rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
23tubular goods, including casing and drill strings, (iii) pumps
24and pump-jack units, (iv) storage tanks and flow lines, (v) any
25individual replacement part for oil field exploration,
26drilling, and production equipment, and (vi) machinery and

 

 

HB5699- 23 -LRB099 16995 HLH 41347 b

1equipment purchased for lease; but excluding motor vehicles
2required to be registered under the Illinois Vehicle Code.
3    (11) Proceeds from the sale of photoprocessing machinery
4and equipment, including repair and replacement parts, both new
5and used, including that manufactured on special order,
6certified by the purchaser to be used primarily for
7photoprocessing, and including photoprocessing machinery and
8equipment purchased for lease.
9    (12) Coal and aggregate exploration, mining, off-highway
10hauling, processing, maintenance, and reclamation equipment,
11including replacement parts and equipment, and including
12equipment purchased for lease, but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code. The
14changes made to this Section by Public Act 97-767 apply on and
15after July 1, 2003, but no claim for credit or refund is
16allowed on or after August 16, 2013 (the effective date of
17Public Act 98-456) for such taxes paid during the period
18beginning July 1, 2003 and ending on August 16, 2013 (the
19effective date of Public Act 98-456).
20    (13) Semen used for artificial insemination of livestock
21for direct agricultural production.
22    (14) Horses, or interests in horses, registered with and
23meeting the requirements of any of the Arabian Horse Club
24Registry of America, Appaloosa Horse Club, American Quarter
25Horse Association, United States Trotting Association, or
26Jockey Club, as appropriate, used for purposes of breeding or

 

 

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1racing for prizes. This item (14) is exempt from the provisions
2of Section 3-75, and the exemption provided for under this item
3(14) applies for all periods beginning May 30, 1995, but no
4claim for credit or refund is allowed on or after the effective
5date of this amendatory Act of the 95th General Assembly for
6such taxes paid during the period beginning May 30, 2000 and
7ending on the effective date of this amendatory Act of the 95th
8General Assembly.
9    (15) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients purchased by a
12lessor who leases the equipment, under a lease of one year or
13longer executed or in effect at the time the lessor would
14otherwise be subject to the tax imposed by this Act, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. If the equipment is leased in a
18manner that does not qualify for this exemption or is used in
19any other non-exempt manner, the lessor shall be liable for the
20tax imposed under this Act or the Use Tax Act, as the case may
21be, based on the fair market value of the property at the time
22the non-qualifying use occurs. No lessor shall collect or
23attempt to collect an amount (however designated) that purports
24to reimburse that lessor for the tax imposed by this Act or the
25Use Tax Act, as the case may be, if the tax has not been paid by
26the lessor. If a lessor improperly collects any such amount

 

 

HB5699- 25 -LRB099 16995 HLH 41347 b

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

 

 

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1before December 31, 2004, personal property that is donated for
2disaster relief to be used in a State or federally declared
3disaster area in Illinois or bordering Illinois by a
4manufacturer or retailer that is registered in this State to a
5corporation, society, association, foundation, or institution
6that has been issued a sales tax exemption identification
7number by the Department that assists victims of the disaster
8who reside within the declared disaster area.
9    (18) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is used in the
12performance of infrastructure repairs in this State, including
13but not limited to municipal roads and streets, access roads,
14bridges, sidewalks, waste disposal systems, water and sewer
15line extensions, water distribution and purification
16facilities, storm water drainage and retention facilities, and
17sewage treatment facilities, resulting from a State or
18federally declared disaster in Illinois or bordering Illinois
19when such repairs are initiated on facilities located in the
20declared disaster area within 6 months after the disaster.
21    (19) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-75.
25    (20) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

HB5699- 27 -LRB099 16995 HLH 41347 b

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

 

 

HB5699- 28 -LRB099 16995 HLH 41347 b

1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-75.
5    (22) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-75.
15    (23) Beginning August 23, 2001 and through June 30, 2016,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the ID/DD Community Care Act, the MC/DD Act, or the

 

 

HB5699- 29 -LRB099 16995 HLH 41347 b

1Specialized Mental Health Rehabilitation Act of 2013.
2    (24) Beginning on the effective date of this amendatory Act
3of the 92nd General Assembly, computers and communications
4equipment utilized for any hospital purpose and equipment used
5in the diagnosis, analysis, or treatment of hospital patients
6purchased by a lessor who leases the equipment, under a lease
7of one year or longer executed or in effect at the time the
8lessor would otherwise be subject to the tax imposed by this
9Act, to a hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. If the equipment is leased in a
12manner that does not qualify for this exemption or is used in
13any other nonexempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Use Tax Act, as the case may
15be, based on the fair market value of the property at the time
16the nonqualifying use occurs. No lessor shall collect or
17attempt to collect an amount (however designated) that purports
18to reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid by
20the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that amount
23is not refunded to the lessee for any reason, the lessor is
24liable to pay that amount to the Department. This paragraph is
25exempt from the provisions of Section 3-75.
26    (25) Beginning on the effective date of this amendatory Act

 

 

HB5699- 30 -LRB099 16995 HLH 41347 b

1of the 92nd General Assembly, personal property purchased by a
2lessor who leases the property, under a lease of one year or
3longer executed or in effect at the time the lessor would
4otherwise be subject to the tax imposed by this Act, to a
5governmental body that has been issued an active tax exemption
6identification number by the Department under Section 1g of the
7Retailers' Occupation Tax Act. If the property is leased in a
8manner that does not qualify for this exemption or is used in
9any other nonexempt manner, the lessor shall be liable for the
10tax imposed under this Act or the Use Tax Act, as the case may
11be, based on the fair market value of the property at the time
12the nonqualifying use occurs. No lessor shall collect or
13attempt to collect an amount (however designated) that purports
14to reimburse that lessor for the tax imposed by this Act or the
15Use Tax Act, as the case may be, if the tax has not been paid by
16the lessor. If a lessor improperly collects any such amount
17from the lessee, the lessee shall have a legal right to claim a
18refund of that amount from the lessor. If, however, that amount
19is not refunded to the lessee for any reason, the lessor is
20liable to pay that amount to the Department. This paragraph is
21exempt from the provisions of Section 3-75.
22    (26) Beginning January 1, 2008, tangible personal property
23used in the construction or maintenance of a community water
24supply, as defined under Section 3.145 of the Environmental
25Protection Act, that is operated by a not-for-profit
26corporation that holds a valid water supply permit issued under

 

 

HB5699- 31 -LRB099 16995 HLH 41347 b

1Title IV of the Environmental Protection Act. This paragraph is
2exempt from the provisions of Section 3-75.
3    (27) Beginning January 1, 2010, materials, parts,
4equipment, components, and furnishings incorporated into or
5upon an aircraft as part of the modification, refurbishment,
6completion, replacement, repair, or maintenance of the
7aircraft. This exemption includes consumable supplies used in
8the modification, refurbishment, completion, replacement,
9repair, and maintenance of aircraft, but excludes any
10materials, parts, equipment, components, and consumable
11supplies used in the modification, replacement, repair, and
12maintenance of aircraft engines or power plants, whether such
13engines or power plants are installed or uninstalled upon any
14such aircraft. "Consumable supplies" include, but are not
15limited to, adhesive, tape, sandpaper, general purpose
16lubricants, cleaning solution, latex gloves, and protective
17films. This exemption applies only to the use of qualifying
18tangible personal property transferred incident to the
19modification, refurbishment, completion, replacement, repair,
20or maintenance of aircraft by persons who (i) hold an Air
21Agency Certificate and are empowered to operate an approved
22repair station by the Federal Aviation Administration, (ii)
23have a Class IV Rating, and (iii) conduct operations in
24accordance with Part 145 of the Federal Aviation Regulations.
25The exemption does not include aircraft operated by a
26commercial air carrier providing scheduled passenger air

 

 

HB5699- 32 -LRB099 16995 HLH 41347 b

1service pursuant to authority issued under Part 121 or Part 129
2of the Federal Aviation Regulations. The changes made to this
3paragraph (27) by Public Act 98-534 are declarative of existing
4law.
5    (28) Tangible personal property purchased by a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt instruments
14issued by the public-facilities corporation in connection with
15the development of the municipal convention hall. This
16exemption includes existing public-facilities corporations as
17provided in Section 11-65-25 of the Illinois Municipal Code.
18This paragraph is exempt from the provisions of Section 3-75.
19(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2098-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
217-16-14; 99-180, eff. 7-29-15.)
 
22    Section 15. The Service Occupation Tax Act is amended by
23changing Section 3-5 as follows:
 
24    (35 ILCS 115/3-5)

 

 

HB5699- 33 -LRB099 16995 HLH 41347 b

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

 

 

HB5699- 34 -LRB099 16995 HLH 41347 b

1number issued by the Department.
2    (4) Legal tender, currency, medallions, or gold or silver
3coinage issued by the State of Illinois, the government of the
4United States of America, or the government of any foreign
5country, and bullion.
6    (5) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product.
15    (6) Personal property sold by a teacher-sponsored student
16organization affiliated with an elementary or secondary school
17located in Illinois.
18    (7) Farm machinery and equipment, both new and used,
19including that manufactured on special order, certified by the
20purchaser to be used primarily for production agriculture or
21State or federal agricultural programs, including individual
22replacement parts for the machinery and equipment, including
23machinery and equipment purchased for lease, and including
24implements of husbandry defined in Section 1-130 of the
25Illinois Vehicle Code, farm machinery and agricultural
26chemical and fertilizer spreaders, and nurse wagons required to

 

 

HB5699- 35 -LRB099 16995 HLH 41347 b

1be registered under Section 3-809 of the Illinois Vehicle Code,
2but excluding other motor vehicles required to be registered
3under the Illinois Vehicle Code. Horticultural polyhouses or
4hoop houses used for propagating, growing, or overwintering
5plants shall be considered farm machinery and equipment under
6this item (7). Agricultural chemical tender tanks and dry boxes
7shall include units sold separately from a motor vehicle
8required to be licensed and units sold mounted on a motor
9vehicle required to be licensed if the selling price of the
10tender is separately stated.
11    Farm machinery and equipment shall include precision
12farming equipment that is installed or purchased to be
13installed on farm machinery and equipment including, but not
14limited to, tractors, harvesters, sprayers, planters, seeders,
15or spreaders. Precision farming equipment includes, but is not
16limited to, soil testing sensors, computers, monitors,
17software, global positioning and mapping systems, and other
18such equipment.
19    Farm machinery and equipment also includes computers,
20sensors, software, and related equipment used primarily in the
21computer-assisted operation of production agriculture
22facilities, equipment, and activities such as, but not limited
23to, the collection, monitoring, and correlation of animal and
24crop data for the purpose of formulating animal diets and
25agricultural chemicals. This item (7) is exempt from the
26provisions of Section 3-55.

 

 

HB5699- 36 -LRB099 16995 HLH 41347 b

1    Repair and replacement parts transferred as part of a
2goodwill repair of exempt farm machinery and equipment shall
3also be exempt from the tax imposed by this Act. For purposes
4of this item (7), "goodwill repair" means a repair made by a
5seller for no charge that a seller is not obligated to make.
6    (8) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the conduct
9of its business as an air common carrier, for a flight destined
10for or returning from a location or locations outside the
11United States without regard to previous or subsequent domestic
12stopovers.
13    Beginning July 1, 2013, fuel and petroleum products sold to
14or used by an air carrier, certified by the carrier to be used
15for consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports at
19least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23    (9) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages, to the extent that the proceeds of the
26service charge are in fact turned over as tips or as a

 

 

HB5699- 37 -LRB099 16995 HLH 41347 b

1substitute for tips to the employees who participate directly
2in preparing, serving, hosting or cleaning up the food or
3beverage function with respect to which the service charge is
4imposed.
5    (10) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of rigs,
7rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
8tubular goods, including casing and drill strings, (iii) pumps
9and pump-jack units, (iv) storage tanks and flow lines, (v) any
10individual replacement part for oil field exploration,
11drilling, and production equipment, and (vi) machinery and
12equipment purchased for lease; but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code.
14    (11) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including that
16manufactured on special order, certified by the purchaser to be
17used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19    (12) Coal and aggregate exploration, mining, off-highway
20hauling, processing, maintenance, and reclamation equipment,
21including replacement parts and equipment, and including
22equipment purchased for lease, but excluding motor vehicles
23required to be registered under the Illinois Vehicle Code. The
24changes made to this Section by Public Act 97-767 apply on and
25after July 1, 2003, but no claim for credit or refund is
26allowed on or after August 16, 2013 (the effective date of

 

 

HB5699- 38 -LRB099 16995 HLH 41347 b

1Public Act 98-456) for such taxes paid during the period
2beginning July 1, 2003 and ending on August 16, 2013 (the
3effective date of Public Act 98-456).
4    (13) Beginning January 1, 1992 and through June 30, 2016,
5food for human consumption that is to be consumed off the
6premises where it is sold (other than alcoholic beverages, soft
7drinks and food that has been prepared for immediate
8consumption) and prescription and non-prescription medicines,
9drugs, medical appliances, and insulin, urine testing
10materials, syringes, and needles used by diabetics, for human
11use, when purchased for use by a person receiving medical
12assistance under Article V of the Illinois Public Aid Code who
13resides in a licensed long-term care facility, as defined in
14the Nursing Home Care Act, or in a licensed facility as defined
15in the ID/DD Community Care Act, the MC/DD Act, or the
16Specialized Mental Health Rehabilitation Act of 2013.
17    (14) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (15) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (15) is exempt from the provisions
25of Section 3-55, and the exemption provided for under this item
26(15) applies for all periods beginning May 30, 1995, but no

 

 

HB5699- 39 -LRB099 16995 HLH 41347 b

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

 

 

HB5699- 40 -LRB099 16995 HLH 41347 b

1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (19) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in the
6performance of infrastructure repairs in this State, including
7but not limited to municipal roads and streets, access roads,
8bridges, sidewalks, waste disposal systems, water and sewer
9line extensions, water distribution and purification
10facilities, storm water drainage and retention facilities, and
11sewage treatment facilities, resulting from a State or
12federally declared disaster in Illinois or bordering Illinois
13when such repairs are initiated on facilities located in the
14declared disaster area within 6 months after the disaster.
15    (20) Beginning July 1, 1999, game or game birds sold at a
16"game breeding and hunting preserve area" as that term is used
17in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-55.
19    (21) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the Department
23to be organized and operated exclusively for educational
24purposes. For purposes of this exemption, "a corporation,
25limited liability company, society, association, foundation,
26or institution organized and operated exclusively for

 

 

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1educational purposes" means all tax-supported public schools,
2private schools that offer systematic instruction in useful
3branches of learning by methods common to public schools and
4that compare favorably in their scope and intensity with the
5course of study presented in tax-supported schools, and
6vocational or technical schools or institutes organized and
7operated exclusively to provide a course of study of not less
8than 6 weeks duration and designed to prepare individuals to
9follow a trade or to pursue a manual, technical, mechanical,
10industrial, business, or commercial occupation.
11    (22) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-55.
25    (23) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

 

 

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1serve hot food and beverages, including coffee, soup, and other
2items, and replacement parts for these machines. Beginning
3January 1, 2002 and through June 30, 2003, machines and parts
4for machines used in commercial, coin-operated amusement and
5vending business if a use or occupation tax is paid on the
6gross receipts derived from the use of the commercial,
7coin-operated amusement and vending machines. This paragraph
8is exempt from the provisions of Section 3-55.
9    (24) Beginning on the effective date of this amendatory Act
10of the 92nd General Assembly, computers and communications
11equipment utilized for any hospital purpose and equipment used
12in the diagnosis, analysis, or treatment of hospital patients
13sold to a lessor who leases the equipment, under a lease of one
14year or longer executed or in effect at the time of the
15purchase, to a hospital that has been issued an active tax
16exemption identification number by the Department under
17Section 1g of the Retailers' Occupation Tax Act. This paragraph
18is exempt from the provisions of Section 3-55.
19    (25) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, personal property sold to a
21lessor who leases the property, under a lease of one year or
22longer executed or in effect at the time of the purchase, to a
23governmental body that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. This paragraph is exempt from
26the provisions of Section 3-55.

 

 

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1    (26) Beginning on January 1, 2002 and through June 30,
22016, tangible personal property purchased from an Illinois
3retailer by a taxpayer engaged in centralized purchasing
4activities in Illinois who will, upon receipt of the property
5in Illinois, temporarily store the property in Illinois (i) for
6the purpose of subsequently transporting it outside this State
7for use or consumption thereafter solely outside this State or
8(ii) for the purpose of being processed, fabricated, or
9manufactured into, attached to, or incorporated into other
10tangible personal property to be transported outside this State
11and thereafter used or consumed solely outside this State. The
12Director of Revenue shall, pursuant to rules adopted in
13accordance with the Illinois Administrative Procedure Act,
14issue a permit to any taxpayer in good standing with the
15Department who is eligible for the exemption under this
16paragraph (26). The permit issued under this paragraph (26)
17shall authorize the holder, to the extent and in the manner
18specified in the rules adopted under this Act, to purchase
19tangible personal property from a retailer exempt from the
20taxes imposed by this Act. Taxpayers shall maintain all
21necessary books and records to substantiate the use and
22consumption of all such tangible personal property outside of
23the State of Illinois.
24    (27) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued under
3Title IV of the Environmental Protection Act. This paragraph is
4exempt from the provisions of Section 3-55.
5    (28) Tangible personal property sold to a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt instruments
14issued by the public-facilities corporation in connection with
15the development of the municipal convention hall. This
16exemption includes existing public-facilities corporations as
17provided in Section 11-65-25 of the Illinois Municipal Code.
18This paragraph is exempt from the provisions of Section 3-55.
19    (29) Beginning January 1, 2010, materials, parts,
20equipment, components, and furnishings incorporated into or
21upon an aircraft as part of the modification, refurbishment,
22completion, replacement, repair, or maintenance of the
23aircraft. This exemption includes consumable supplies used in
24the modification, refurbishment, completion, replacement,
25repair, and maintenance of aircraft, but excludes any
26materials, parts, equipment, components, and consumable

 

 

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1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to the transfer of
8qualifying tangible personal property incident to the
9modification, refurbishment, completion, replacement, repair,
10or maintenance of an aircraft by persons who (i) hold an Air
11Agency Certificate and are empowered to operate an approved
12repair station by the Federal Aviation Administration, (ii)
13have a Class IV Rating, and (iii) conduct operations in
14accordance with Part 145 of the Federal Aviation Regulations.
15The exemption does not include aircraft operated by a
16commercial air carrier providing scheduled passenger air
17service pursuant to authority issued under Part 121 or Part 129
18of the Federal Aviation Regulations. The changes made to this
19paragraph (29) by Public Act 98-534 are declarative of existing
20law.
21(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2298-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
237-16-14; 99-180, eff. 7-29-15.)
 
24    Section 20. The Retailers' Occupation Tax Act is amended by
25changing Section 2-5 as follows:
 

 

 

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

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (2) is exempt from the
15provisions of Section 2-70.
16    Repair and replacement parts transferred as part of a
17goodwill repair of exempt farm machinery and equipment shall
18also be exempt from the tax imposed by this Act. For purposes
19of this item (2), "goodwill repair" means a repair made by a
20seller for no charge that a seller is not obligated to make.
21    (3) Until July 1, 2003, distillation machinery and
22equipment, sold as a unit or kit, assembled or installed by the
23retailer, certified by the user to be used only for the
24production of ethyl alcohol that will be used for consumption
25as motor fuel or as a component of motor fuel for the personal
26use of the user, and not subject to sale or resale.

 

 

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1    (4) Until July 1, 2003 and beginning again September 1,
22004 through August 30, 2014, graphic arts machinery and
3equipment, including repair and replacement parts, both new and
4used, and including that manufactured on special order or
5purchased for lease, certified by the purchaser to be used
6primarily for graphic arts production. Equipment includes
7chemicals or chemicals acting as catalysts but only if the
8chemicals or chemicals acting as catalysts effect a direct and
9immediate change upon a graphic arts product.
10    (5) A motor vehicle that is used for automobile renting, as
11defined in the Automobile Renting Occupation and Use Tax Act.
12This paragraph is exempt from the provisions of Section 2-70.
13    (6) Personal property sold by a teacher-sponsored student
14organization affiliated with an elementary or secondary school
15located in Illinois.
16    (7) Until July 1, 2003, proceeds of that portion of the
17selling price of a passenger car the sale of which is subject
18to the Replacement Vehicle Tax.
19    (8) Personal property sold to an Illinois county fair
20association for use in conducting, operating, or promoting the
21county fair.
22    (9) Personal property sold to a not-for-profit arts or
23cultural organization that establishes, by proof required by
24the Department by rule, that it has received an exemption under
25Section 501(c)(3) of the Internal Revenue Code and that is
26organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (10) Personal property sold by a corporation, society,
12association, foundation, institution, or organization, other
13than a limited liability company, that is organized and
14operated as a not-for-profit service enterprise for the benefit
15of persons 65 years of age or older if the personal property
16was not purchased by the enterprise for the purpose of resale
17by the enterprise.
18    (11) Personal property sold to a governmental body, to a
19corporation, society, association, foundation, or institution
20organized and operated exclusively for charitable, religious,
21or educational purposes, or to a not-for-profit corporation,
22society, association, foundation, institution, or organization
23that has no compensated officers or employees and that is
24organized and operated primarily for the recreation of persons
2555 years of age or older. A limited liability company may
26qualify for the exemption under this paragraph only if the

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active
5identification number issued by the Department.
6    (12) Tangible personal property sold to interstate
7carriers for hire for use as rolling stock moving in interstate
8commerce or to lessors under leases of one year or longer
9executed or in effect at the time of purchase by interstate
10carriers for hire for use as rolling stock moving in interstate
11commerce and equipment operated by a telecommunications
12provider, licensed as a common carrier by the Federal
13Communications Commission, which is permanently installed in
14or affixed to aircraft moving in interstate commerce.
15    (12-5) On and after July 1, 2003 and through June 30, 2004,
16motor vehicles of the second division with a gross vehicle
17weight in excess of 8,000 pounds that are subject to the
18commercial distribution fee imposed under Section 3-815.1 of
19the Illinois Vehicle Code. Beginning on July 1, 2004 and
20through June 30, 2005, the use in this State of motor vehicles
21of the second division: (i) with a gross vehicle weight rating
22in excess of 8,000 pounds; (ii) that are subject to the
23commercial distribution fee imposed under Section 3-815.1 of
24the Illinois Vehicle Code; and (iii) that are primarily used
25for commercial purposes. Through June 30, 2005, this exemption
26applies to repair and replacement parts added after the initial

 

 

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1purchase of such a motor vehicle if that motor vehicle is used
2in a manner that would qualify for the rolling stock exemption
3otherwise provided for in this Act. For purposes of this
4paragraph, "used for commercial purposes" means the
5transportation of persons or property in furtherance of any
6commercial or industrial enterprise whether for-hire or not.
7    (13) Proceeds from sales to owners, lessors, or shippers of
8tangible personal property that is utilized by interstate
9carriers for hire for use as rolling stock moving in interstate
10commerce and equipment operated by a telecommunications
11provider, licensed as a common carrier by the Federal
12Communications Commission, which is permanently installed in
13or affixed to aircraft moving in interstate commerce.
14    (14) Machinery and equipment that will be used by the
15purchaser, or a lessee of the purchaser, primarily in the
16process of manufacturing or assembling tangible personal
17property for wholesale or retail sale or lease, whether the
18sale or lease is made directly by the manufacturer or by some
19other person, whether the materials used in the process are
20owned by the manufacturer or some other person, or whether the
21sale or lease is made apart from or as an incident to the
22seller's engaging in the service occupation of producing
23machines, tools, dies, jigs, patterns, gauges, or other similar
24items of no commercial value on special order for a particular
25purchaser. The exemption provided by this paragraph (14) does
26not include machinery and equipment used in (i) the generation

 

 

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1of electricity for wholesale or retail sale; (ii) the
2generation or treatment of natural or artificial gas for
3wholesale or retail sale that is delivered to customers through
4pipes, pipelines, or mains; or (iii) the treatment of water for
5wholesale or retail sale that is delivered to customers through
6pipes, pipelines, or mains. The provisions of Public Act 98-583
7are declaratory of existing law as to the meaning and scope of
8this exemption.
9    (15) Proceeds of mandatory service charges separately
10stated on customers' bills for purchase and consumption of food
11and beverages, to the extent that the proceeds of the service
12charge are in fact turned over as tips or as a substitute for
13tips to the employees who participate directly in preparing,
14serving, hosting or cleaning up the food or beverage function
15with respect to which the service charge is imposed.
16    (16) Petroleum products sold to a purchaser if the seller
17is prohibited by federal law from charging tax to the
18purchaser.
19    (17) Tangible personal property sold to a common carrier by
20rail or motor that receives the physical possession of the
21property in Illinois and that transports the property, or
22shares with another common carrier in the transportation of the
23property, out of Illinois on a standard uniform bill of lading
24showing the seller of the property as the shipper or consignor
25of the property to a destination outside Illinois, for use
26outside Illinois.

 

 

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1    (18) Legal tender, currency, medallions, or gold or silver
2coinage issued by the State of Illinois, the government of the
3United States of America, or the government of any foreign
4country, and bullion.
5    (19) Until July 1 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of rigs,
7rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
8tubular goods, including casing and drill strings, (iii) pumps
9and pump-jack units, (iv) storage tanks and flow lines, (v) any
10individual replacement part for oil field exploration,
11drilling, and production equipment, and (vi) machinery and
12equipment purchased for lease; but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code.
14    (20) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including that
16manufactured on special order, certified by the purchaser to be
17used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19    (21) Coal and aggregate exploration, mining, off-highway
20hauling, processing, maintenance, and reclamation equipment,
21including replacement parts and equipment, and including
22equipment purchased for lease, but excluding motor vehicles
23required to be registered under the Illinois Vehicle Code. The
24changes made to this Section by Public Act 97-767 apply on and
25after July 1, 2003, but no claim for credit or refund is
26allowed on or after August 16, 2013 (the effective date of

 

 

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1Public Act 98-456) for such taxes paid during the period
2beginning July 1, 2003 and ending on August 16, 2013 (the
3effective date of Public Act 98-456).
4    (22) Until June 30, 2013, fuel and petroleum products sold
5to or used by an air carrier, certified by the carrier to be
6used for consumption, shipment, or storage in the conduct of
7its business as an air common carrier, for a flight destined
8for or returning from a location or locations outside the
9United States without regard to previous or subsequent domestic
10stopovers.
11    Beginning July 1, 2013, fuel and petroleum products sold to
12or used by an air carrier, certified by the carrier to be used
13for consumption, shipment, or storage in the conduct of its
14business as an air common carrier, for a flight that (i) is
15engaged in foreign trade or is engaged in trade between the
16United States and any of its possessions and (ii) transports at
17least one individual or package for hire from the city of
18origination to the city of final destination on the same
19aircraft, without regard to a change in the flight number of
20that aircraft.
21    (23) A transaction in which the purchase order is received
22by a florist who is located outside Illinois, but who has a
23florist located in Illinois deliver the property to the
24purchaser or the purchaser's donee in Illinois.
25    (24) Fuel consumed or used in the operation of ships,
26barges, or vessels that are used primarily in or for the

 

 

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1transportation of property or the conveyance of persons for
2hire on rivers bordering on this State if the fuel is delivered
3by the seller to the purchaser's barge, ship, or vessel while
4it is afloat upon that bordering river.
5    (25) Except as provided in item (25-5) of this Section, a
6motor vehicle sold in this State to a nonresident even though
7the motor vehicle is delivered to the nonresident in this
8State, if the motor vehicle is not to be titled in this State,
9and if a drive-away permit is issued to the motor vehicle as
10provided in Section 3-603 of the Illinois Vehicle Code or if
11the nonresident purchaser has vehicle registration plates to
12transfer to the motor vehicle upon returning to his or her home
13state. The issuance of the drive-away permit or having the
14out-of-state registration plates to be transferred is prima
15facie evidence that the motor vehicle will not be titled in
16this State.
17    (25-5) The exemption under item (25) does not apply if the
18state in which the motor vehicle will be titled does not allow
19a reciprocal exemption for a motor vehicle sold and delivered
20in that state to an Illinois resident but titled in Illinois.
21The tax collected under this Act on the sale of a motor vehicle
22in this State to a resident of another state that does not
23allow a reciprocal exemption shall be imposed at a rate equal
24to the state's rate of tax on taxable property in the state in
25which the purchaser is a resident, except that the tax shall
26not exceed the tax that would otherwise be imposed under this

 

 

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1Act. At the time of the sale, the purchaser shall execute a
2statement, signed under penalty of perjury, of his or her
3intent to title the vehicle in the state in which the purchaser
4is a resident within 30 days after the sale and of the fact of
5the payment to the State of Illinois of tax in an amount
6equivalent to the state's rate of tax on taxable property in
7his or her state of residence and shall submit the statement to
8the appropriate tax collection agency in his or her state of
9residence. In addition, the retailer must retain a signed copy
10of the statement in his or her records. Nothing in this item
11shall be construed to require the removal of the vehicle from
12this state following the filing of an intent to title the
13vehicle in the purchaser's state of residence if the purchaser
14titles the vehicle in his or her state of residence within 30
15days after the date of sale. The tax collected under this Act
16in accordance with this item (25-5) shall be proportionately
17distributed as if the tax were collected at the 6.25% general
18rate imposed under this Act.
19    (25-7) Beginning on July 1, 2007, no tax is imposed under
20this Act on the sale of an aircraft, as defined in Section 3 of
21the Illinois Aeronautics Act, if all of the following
22conditions are met:
23        (1) the aircraft leaves this State within 15 days after
24    the later of either the issuance of the final billing for
25    the sale of the aircraft, or the authorized approval for
26    return to service, completion of the maintenance record

 

 

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1    entry, and completion of the test flight and ground test
2    for inspection, as required by 14 C.F.R. 91.407;
3        (2) the aircraft is not based or registered in this
4    State after the sale of the aircraft; and
5        (3) the seller retains in his or her books and records
6    and provides to the Department a signed and dated
7    certification from the purchaser, on a form prescribed by
8    the Department, certifying that the requirements of this
9    item (25-7) are met. The certificate must also include the
10    name and address of the purchaser, the address of the
11    location where the aircraft is to be titled or registered,
12    the address of the primary physical location of the
13    aircraft, and other information that the Department may
14    reasonably require.
15    For purposes of this item (25-7):
16    "Based in this State" means hangared, stored, or otherwise
17used, excluding post-sale customizations as defined in this
18Section, for 10 or more days in each 12-month period
19immediately following the date of the sale of the aircraft.
20    "Registered in this State" means an aircraft registered
21with the Department of Transportation, Aeronautics Division,
22or titled or registered with the Federal Aviation
23Administration to an address located in this State.
24    This paragraph (25-7) is exempt from the provisions of
25Section 2-70.
26    (26) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (27) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (27) is exempt from the provisions
8of Section 2-70, and the exemption provided for under this item
9(27) applies for all periods beginning May 30, 1995, but no
10claim for credit or refund is allowed on or after January 1,
112008 (the effective date of Public Act 95-88) for such taxes
12paid during the period beginning May 30, 2000 and ending on
13January 1, 2008 (the effective date of Public Act 95-88).
14    (28) Computers and communications equipment utilized for
15any hospital purpose and equipment used in the diagnosis,
16analysis, or treatment of hospital patients sold to a lessor
17who leases the equipment, under a lease of one year or longer
18executed or in effect at the time of the purchase, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21this Act.
22    (29) Personal property sold to a lessor who leases the
23property, under a lease of one year or longer executed or in
24effect at the time of the purchase, to a governmental body that
25has been issued an active tax exemption identification number
26by the Department under Section 1g of this Act.

 

 

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1    (30) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is donated for
4disaster relief to be used in a State or federally declared
5disaster area in Illinois or bordering Illinois by a
6manufacturer or retailer that is registered in this State to a
7corporation, society, association, foundation, or institution
8that has been issued a sales tax exemption identification
9number by the Department that assists victims of the disaster
10who reside within the declared disaster area.
11    (31) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is used in the
14performance of infrastructure repairs in this State, including
15but not limited to municipal roads and streets, access roads,
16bridges, sidewalks, waste disposal systems, water and sewer
17line extensions, water distribution and purification
18facilities, storm water drainage and retention facilities, and
19sewage treatment facilities, resulting from a State or
20federally declared disaster in Illinois or bordering Illinois
21when such repairs are initiated on facilities located in the
22declared disaster area within 6 months after the disaster.
23    (32) Beginning July 1, 1999, game or game birds sold at a
24"game breeding and hunting preserve area" as that term is used
25in the Wildlife Code. This paragraph is exempt from the
26provisions of Section 2-70.

 

 

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

 

 

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1private home instruction or (ii) for which the fundraising
2entity purchases the personal property sold at the events from
3another individual or entity that sold the property for the
4purpose of resale by the fundraising entity and that profits
5from the sale to the fundraising entity. This paragraph is
6exempt from the provisions of Section 2-70.
7    (35) Beginning January 1, 2000 and through December 31,
82001, new or used automatic vending machines that prepare and
9serve hot food and beverages, including coffee, soup, and other
10items, and replacement parts for these machines. Beginning
11January 1, 2002 and through June 30, 2003, machines and parts
12for machines used in commercial, coin-operated amusement and
13vending business if a use or occupation tax is paid on the
14gross receipts derived from the use of the commercial,
15coin-operated amusement and vending machines. This paragraph
16is exempt from the provisions of Section 2-70.
17    (35-5) Beginning August 23, 2001 and through June 30, 2016,
18food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages, soft
20drinks, and food that has been prepared for immediate
21consumption) and prescription and nonprescription medicines,
22drugs, medical appliances, and insulin, urine testing
23materials, syringes, and needles used by diabetics, for human
24use, when purchased for use by a person receiving medical
25assistance under Article V of the Illinois Public Aid Code who
26resides in a licensed long-term care facility, as defined in

 

 

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1the Nursing Home Care Act, or a licensed facility as defined in
2the ID/DD Community Care Act, the MC/DD Act, or the Specialized
3Mental Health Rehabilitation Act of 2013.
4    (36) Beginning August 2, 2001, computers and
5communications equipment utilized for any hospital purpose and
6equipment used in the diagnosis, analysis, or treatment of
7hospital patients sold to a lessor who leases the equipment,
8under a lease of one year or longer executed or in effect at
9the time of the purchase, to a hospital that has been issued an
10active tax exemption identification number by the Department
11under Section 1g of this Act. This paragraph is exempt from the
12provisions of Section 2-70.
13    (37) Beginning August 2, 2001, personal property sold to a
14lessor who leases the property, under a lease of one year or
15longer executed or in effect at the time of the purchase, to a
16governmental body that has been issued an active tax exemption
17identification number by the Department under Section 1g of
18this Act. This paragraph is exempt from the provisions of
19Section 2-70.
20    (38) Beginning on January 1, 2002 and through June 30,
212016, tangible personal property purchased from an Illinois
22retailer by a taxpayer engaged in centralized purchasing
23activities in Illinois who will, upon receipt of the property
24in Illinois, temporarily store the property in Illinois (i) for
25the purpose of subsequently transporting it outside this State
26for use or consumption thereafter solely outside this State or

 

 

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1(ii) for the purpose of being processed, fabricated, or
2manufactured into, attached to, or incorporated into other
3tangible personal property to be transported outside this State
4and thereafter used or consumed solely outside this State. The
5Director of Revenue shall, pursuant to rules adopted in
6accordance with the Illinois Administrative Procedure Act,
7issue a permit to any taxpayer in good standing with the
8Department who is eligible for the exemption under this
9paragraph (38). The permit issued under this paragraph (38)
10shall authorize the holder, to the extent and in the manner
11specified in the rules adopted under this Act, to purchase
12tangible personal property from a retailer exempt from the
13taxes imposed by this Act. Taxpayers shall maintain all
14necessary books and records to substantiate the use and
15consumption of all such tangible personal property outside of
16the State of Illinois.
17    (39) Beginning January 1, 2008, tangible personal property
18used in the construction or maintenance of a community water
19supply, as defined under Section 3.145 of the Environmental
20Protection Act, that is operated by a not-for-profit
21corporation that holds a valid water supply permit issued under
22Title IV of the Environmental Protection Act. This paragraph is
23exempt from the provisions of Section 2-70.
24    (40) Beginning January 1, 2010, materials, parts,
25equipment, components, and furnishings incorporated into or
26upon an aircraft as part of the modification, refurbishment,

 

 

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1completion, replacement, repair, or maintenance of the
2aircraft. This exemption includes consumable supplies used in
3the modification, refurbishment, completion, replacement,
4repair, and maintenance of aircraft, but excludes any
5materials, parts, equipment, components, and consumable
6supplies used in the modification, replacement, repair, and
7maintenance of aircraft engines or power plants, whether such
8engines or power plants are installed or uninstalled upon any
9such aircraft. "Consumable supplies" include, but are not
10limited to, adhesive, tape, sandpaper, general purpose
11lubricants, cleaning solution, latex gloves, and protective
12films. This exemption applies only to the sale of qualifying
13tangible personal property to persons who modify, refurbish,
14complete, replace, or maintain an aircraft and who (i) hold an
15Air Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations. The changes made to this
23paragraph (40) by Public Act 98-534 are declarative of existing
24law.
25    (41) Tangible personal property sold to a
26public-facilities corporation, as described in Section

 

 

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111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt instruments
8issued by the public-facilities corporation in connection with
9the development of the municipal convention hall. This
10exemption includes existing public-facilities corporations as
11provided in Section 11-65-25 of the Illinois Municipal Code.
12This paragraph is exempt from the provisions of Section 2-70.
13(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1498-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
151-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
167-29-15.)