SB2746sam002 99TH GENERAL ASSEMBLY

Sen. Melinda Bush

Filed: 4/14/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2746

2    AMENDMENT NO. ______. Amend Senate Bill 2746 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts or
4cultural organization that establishes, by proof required by
5the Department by rule, that it has received an exemption under
6Section 501(c)(3) of the Internal Revenue Code and that is
7organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after the effective date
14of this amendatory Act of the 92nd General Assembly, however,
15an entity otherwise eligible for this exemption shall not make
16tax-free purchases unless it has an active identification
17number issued by the Department.
18    (4) Personal property purchased by a governmental body, by
19a corporation, society, association, foundation, or
20institution organized and operated exclusively for charitable,
21religious, or educational purposes, or by a not-for-profit
22corporation, society, association, foundation, institution, or
23organization that has no compensated officers or employees and
24that is organized and operated primarily for the recreation of
25persons 55 years of age or older. A limited liability company
26may qualify 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 exemption
5identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon a
18graphic arts product.
19    (7) Farm chemicals.
20    (8) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (9) Personal property purchased from a teacher-sponsored
25student organization affiliated with an elementary or
26secondary school located in Illinois.

 

 

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1    (10) A motor vehicle that is used for automobile renting,
2as defined in the Automobile Renting Occupation and Use Tax
3Act.
4    (11) Farm machinery and equipment, both new and used,
5including that manufactured on special order, certified by the
6purchaser to be used primarily for production agriculture or
7State or federal agricultural programs, including individual
8replacement parts for the machinery and equipment, including
9machinery and equipment purchased for lease, and including
10implements of husbandry defined in Section 1-130 of the
11Illinois Vehicle Code, farm machinery and agricultural
12chemical and fertilizer spreaders, and nurse wagons required to
13be registered under Section 3-809 of the Illinois Vehicle Code,
14but excluding other motor vehicles required to be registered
15under the Illinois Vehicle Code. Horticultural polyhouses or
16hoop houses used for propagating, growing, or overwintering
17plants shall be considered farm machinery and equipment under
18this item (11). Agricultural chemical tender tanks and dry
19boxes shall include units sold separately from a motor vehicle
20required to be licensed and units sold mounted on a motor
21vehicle required to be licensed if the selling price of the
22tender is separately stated.
23    Farm machinery and equipment shall include precision
24farming equipment that is installed or purchased to be
25installed on farm machinery and equipment including, but not
26limited to, tractors, harvesters, sprayers, planters, seeders,

 

 

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1or spreaders. Precision farming equipment includes, but is not
2limited to, soil testing sensors, computers, monitors,
3software, global positioning and mapping systems, and other
4such equipment.
5    Farm machinery and equipment also includes computers,
6sensors, software, and related equipment used primarily in the
7computer-assisted operation of production agriculture
8facilities, equipment, and activities such as, but not limited
9to, the collection, monitoring, and correlation of animal and
10crop data for the purpose of formulating animal diets and
11agricultural chemicals. This item (11) is exempt from the
12provisions of Section 3-90.
13    (12) Until June 30, 2013, fuel and petroleum products sold
14to or used by an air common carrier, certified by the carrier
15to be used for consumption, shipment, or storage in the conduct
16of its business as an air common carrier, for a flight destined
17for or returning from a location or locations outside the
18United States without regard to previous or subsequent domestic
19stopovers.
20    Beginning July 1, 2013, fuel and petroleum products sold to
21or used by an air carrier, certified by the carrier to be used
22for consumption, shipment, or storage in the conduct of its
23business as an air common carrier, for a flight that (i) is
24engaged in foreign trade or is engaged in trade between the
25United States and any of its possessions and (ii) transports at
26least one individual or package for hire from the city of

 

 

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

 

 

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

 

 

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1a particular purchaser. The exemption provided by this
2paragraph (18) does not include machinery and equipment used in
3(i) the generation of electricity for wholesale or retail sale;
4(ii) the generation or treatment of natural or artificial gas
5for wholesale or retail sale that is delivered to customers
6through pipes, pipelines, or mains; or (iii) the treatment of
7water for wholesale or retail sale that is delivered to
8customers through pipes, pipelines, or mains. The provisions of
9Public Act 98-583 are declaratory of existing law as to the
10meaning and scope of this exemption.
11    (19) Personal property delivered to a purchaser or
12purchaser's donee inside Illinois when the purchase order for
13that personal property was received by a florist located
14outside Illinois who has a florist located inside Illinois
15deliver the personal property.
16    (20) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (21) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (21) is exempt from the provisions
24of Section 3-90, and the exemption provided for under this item
25(21) applies for all periods beginning May 30, 1995, but no
26claim for credit or refund is allowed on or after January 1,

 

 

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12008 for such taxes paid during the period beginning May 30,
22000 and ending on January 1, 2008.
3    (22) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients purchased by a
6lessor who leases the equipment, under a lease of one year or
7longer executed or in effect at the time the lessor would
8otherwise be subject to the tax imposed by this Act, to a
9hospital 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 non-exempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Service Use Tax Act, as the
15case may be, based on the fair market value of the property at
16the time the non-qualifying use occurs. No lessor shall collect
17or attempt to collect an amount (however designated) that
18purports to reimburse that lessor for the tax imposed by this
19Act or the Service Use Tax Act, as the case may be, if the tax
20has not been paid by the lessor. If a lessor improperly
21collects any such amount from the lessee, the lessee shall have
22a legal right to claim a refund of that amount from the lessor.
23If, however, that amount is not refunded to the lessee for any
24reason, the lessor is liable to pay that amount to the
25Department.
26    (23) Personal property purchased by a lessor who leases the

 

 

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

 

 

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1that has been issued a sales tax exemption identification
2number by the Department that assists victims of the disaster
3who reside within the declared disaster area.
4    (25) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is used in the
7performance of infrastructure repairs in this State, including
8but not limited to municipal roads and streets, access roads,
9bridges, sidewalks, waste disposal systems, water and sewer
10line extensions, water distribution and purification
11facilities, storm water drainage and retention facilities, and
12sewage treatment facilities, resulting from a State or
13federally declared disaster in Illinois or bordering Illinois
14when such repairs are initiated on facilities located in the
15declared disaster area within 6 months after the disaster.
16    (26) Beginning July 1, 1999, game or game birds purchased
17at a "game breeding and hunting preserve area" as that term is
18used in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-90.
20    (27) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the Department
24to be organized and operated exclusively for educational
25purposes. For purposes of this exemption, "a corporation,
26limited liability company, society, association, foundation,

 

 

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1or institution organized and operated exclusively for
2educational purposes" means all tax-supported public schools,
3private schools that offer systematic instruction in useful
4branches of learning by methods common to public schools and
5that compare favorably in their scope and intensity with the
6course of study presented in tax-supported schools, and
7vocational or technical schools or institutes organized and
8operated exclusively to provide a course of study of not less
9than 6 weeks duration and designed to prepare individuals to
10follow a trade or to pursue a manual, technical, mechanical,
11industrial, business, or commercial occupation.
12    (28) Beginning January 1, 2000, personal property,
13including food, purchased through fundraising events for the
14benefit of a public or private elementary or secondary school,
15a group of those schools, or one or more school districts if
16the events are sponsored by an entity recognized by the school
17district that consists primarily of volunteers and includes
18parents and teachers of the school children. This paragraph
19does not apply to fundraising events (i) for the benefit of
20private home instruction or (ii) for which the fundraising
21entity purchases the personal property sold at the events from
22another individual or entity that sold the property for the
23purpose of resale by the fundraising entity and that profits
24from the sale to the fundraising entity. This paragraph is
25exempt from the provisions of Section 3-90.
26    (29) Beginning January 1, 2000 and through December 31,

 

 

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12001, new or used automatic vending machines that prepare and
2serve hot food and beverages, including coffee, soup, and other
3items, and replacement parts for these machines. Beginning
4January 1, 2002 and through June 30, 2003, machines and parts
5for machines used in commercial, coin-operated amusement and
6vending business if a use or occupation tax is paid on the
7gross receipts derived from the use of the commercial,
8coin-operated amusement and vending machines. This paragraph
9is exempt from the provisions of Section 3-90.
10    (30) Beginning January 1, 2001 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks, and food that has been prepared for immediate
14consumption) and prescription and nonprescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or in a licensed facility as defined
21in the ID/DD Community Care Act, the MC/DD Act, or the
22Specialized Mental Health Rehabilitation Act of 2013.
23    (31) Beginning on the effective date of this amendatory Act
24of the 92nd General Assembly, computers and communications
25equipment utilized for any hospital purpose and equipment used
26in the diagnosis, analysis, or treatment of hospital patients

 

 

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

 

 

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1governmental body that has been issued an active sales tax
2exemption identification number by the Department under
3Section 1g of the Retailers' Occupation Tax Act. If the
4property is leased in a manner that does not qualify for this
5exemption or used in any other nonexempt manner, the lessor
6shall be liable for the tax imposed under this Act or the
7Service Use Tax Act, as the case may be, based on the fair
8market value of the property at the time the nonqualifying use
9occurs. No lessor shall collect or attempt to collect an amount
10(however designated) that purports to reimburse that lessor for
11the tax imposed by this Act or the Service Use Tax Act, as the
12case may be, if the tax has not been paid by the lessor. If a
13lessor improperly collects any such amount from the lessee, the
14lessee shall have a legal right to claim a refund of that
15amount from the lessor. If, however, that amount is not
16refunded to the lessee for any reason, the lessor is liable to
17pay that amount to the Department. This paragraph is exempt
18from the provisions of Section 3-90.
19    (33) On and after July 1, 2003 and through June 30, 2004,
20the use in this State of motor vehicles of the second division
21with a gross vehicle weight in excess of 8,000 pounds and that
22are subject to the commercial distribution fee imposed under
23Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
241, 2004 and through June 30, 2005, the use in this State of
25motor vehicles of the second division: (i) with a gross vehicle
26weight rating in excess of 8,000 pounds; (ii) that are subject

 

 

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1to the commercial distribution fee imposed under Section
23-815.1 of the Illinois Vehicle Code; and (iii) that are
3primarily used for commercial purposes. Through June 30, 2005,
4this exemption applies to repair and replacement parts added
5after the initial purchase of such a motor vehicle if that
6motor vehicle is used in a manner that would qualify for the
7rolling stock exemption otherwise provided for in this Act. For
8purposes of this paragraph, the term "used for commercial
9purposes" means the transportation of persons or property in
10furtherance of any commercial or industrial enterprise,
11whether for-hire or not.
12    (34) Beginning January 1, 2008, tangible personal property
13used in the construction or maintenance of a community water
14supply, as defined under Section 3.145 of the Environmental
15Protection Act, that is operated by a not-for-profit
16corporation that holds a valid water supply permit issued under
17Title IV of the Environmental Protection Act. This paragraph is
18exempt from the provisions of Section 3-90.
19    (35) 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 use of qualifying
8tangible personal property by persons who modify, refurbish,
9complete, repair, replace, or maintain aircraft and who (i)
10hold an Air Agency Certificate and are empowered to operate an
11approved repair station by the Federal Aviation
12Administration, (ii) have a Class IV Rating, and (iii) conduct
13operations in accordance with Part 145 of the Federal Aviation
14Regulations. The exemption does not include aircraft operated
15by a commercial air carrier providing scheduled passenger air
16service pursuant to authority issued under Part 121 or Part 129
17of the Federal Aviation Regulations. The changes made to this
18paragraph (35) by Public Act 98-534 are declarative of existing
19law.
20    (36) Tangible personal property purchased by a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt instruments
3issued by the public-facilities corporation in connection with
4the development of the municipal convention hall. This
5exemption includes existing public-facilities corporations as
6provided in Section 11-65-25 of the Illinois Municipal Code.
7This paragraph is exempt from the provisions of Section 3-90.
8    (37) Beginning January 1, 2017, menstrual pads and tampons.
9This paragraph is exempt from the provisions of Section 3-90.
10(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1198-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
121-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
137-29-15.)
 
14    Section 10. The Service Use Tax Act is amended by changing
15Section 3-5 as follows:
 
16    (35 ILCS 110/3-5)
17    Sec. 3-5. Exemptions. Use of the following tangible
18personal property is exempt from the tax imposed by this Act:
19    (1) Personal property purchased from a corporation,
20society, association, foundation, institution, or
21organization, other than a limited liability company, that is
22organized and operated as a not-for-profit service enterprise
23for the benefit of persons 65 years of age or older if the
24personal property was not purchased by the enterprise for the

 

 

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1purpose of resale by the enterprise.
2    (2) Personal property purchased by a non-profit Illinois
3county fair association for use in conducting, operating, or
4promoting the county fair.
5    (3) Personal property purchased by a not-for-profit arts or
6cultural organization that establishes, by proof required by
7the Department by rule, that it has received an exemption under
8Section 501(c)(3) of the Internal Revenue Code and that is
9organized and operated primarily for the presentation or
10support of arts or cultural programming, activities, or
11services. These organizations include, but are not limited to,
12music and dramatic arts organizations such as symphony
13orchestras and theatrical groups, arts and cultural service
14organizations, local arts councils, visual arts organizations,
15and media arts organizations. On and after the effective date
16of this amendatory Act of the 92nd General Assembly, however,
17an entity otherwise eligible for this exemption shall not make
18tax-free purchases unless it has an active identification
19number issued by the Department.
20    (4) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (5) Until July 1, 2003 and beginning again on September 1,
252004 through August 30, 2014, graphic arts machinery and
26equipment, including repair and replacement parts, both new and

 

 

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

 

 

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1vehicle required to be licensed if the selling price of the
2tender is separately stated.
3    Farm machinery and equipment shall include precision
4farming equipment that is installed or purchased to be
5installed on farm machinery and equipment including, but not
6limited to, tractors, harvesters, sprayers, planters, seeders,
7or spreaders. Precision farming equipment includes, but is not
8limited to, soil testing sensors, computers, monitors,
9software, global positioning and mapping systems, and other
10such equipment.
11    Farm machinery and equipment also includes computers,
12sensors, software, and related equipment used primarily in the
13computer-assisted operation of production agriculture
14facilities, equipment, and activities such as, but not limited
15to, the collection, monitoring, and correlation of animal and
16crop data for the purpose of formulating animal diets and
17agricultural chemicals. This item (7) is exempt from the
18provisions of Section 3-75.
19    (8) Until June 30, 2013, fuel and petroleum products sold
20to or used by an air common carrier, certified by the carrier
21to be used for consumption, shipment, or storage in the conduct
22of its business as an air common carrier, for a flight destined
23for or returning from a location or locations outside the
24United States without regard to previous or subsequent domestic
25stopovers.
26    Beginning July 1, 2013, fuel and petroleum products sold to

 

 

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

 

 

09900SB2746sam002- 23 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 24 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 25 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 26 -LRB099 17731 HLH 47384 a

1disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (18) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in the
11performance of infrastructure repairs in this State, including
12but not limited to municipal roads and streets, access roads,
13bridges, sidewalks, waste disposal systems, water and sewer
14line extensions, water distribution and purification
15facilities, storm water drainage and retention facilities, and
16sewage treatment facilities, resulting from a State or
17federally declared disaster in Illinois or bordering Illinois
18when such repairs are initiated on facilities located in the
19declared disaster area within 6 months after the disaster.
20    (19) Beginning July 1, 1999, game or game birds purchased
21at a "game breeding and hunting preserve area" as that term is
22used in the Wildlife Code. This paragraph is exempt from the
23provisions of Section 3-75.
24    (20) A motor vehicle, as that term is defined in Section
251-146 of the Illinois Vehicle Code, that is donated to a
26corporation, limited liability company, society, association,

 

 

09900SB2746sam002- 27 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 28 -LRB099 17731 HLH 47384 a

1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-75.
4    (22) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and other
7items, and replacement parts for these machines. Beginning
8January 1, 2002 and through June 30, 2003, machines and parts
9for machines used in commercial, coin-operated amusement and
10vending business if a use or occupation tax is paid on the
11gross receipts derived from the use of the commercial,
12coin-operated amusement and vending machines. This paragraph
13is exempt from the provisions of Section 3-75.
14    (23) Beginning August 23, 2001 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages, soft
17drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

 

 

09900SB2746sam002- 29 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 30 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 31 -LRB099 17731 HLH 47384 a

1exempt from the provisions of Section 3-75.
2    (27) Beginning January 1, 2010, materials, parts,
3equipment, components, and furnishings incorporated into or
4upon an aircraft as part of the modification, refurbishment,
5completion, replacement, repair, or maintenance of the
6aircraft. This exemption includes consumable supplies used in
7the modification, refurbishment, completion, replacement,
8repair, and maintenance of aircraft, but excludes any
9materials, parts, equipment, components, and consumable
10supplies used in the modification, replacement, repair, and
11maintenance of aircraft engines or power plants, whether such
12engines or power plants are installed or uninstalled upon any
13such aircraft. "Consumable supplies" include, but are not
14limited to, adhesive, tape, sandpaper, general purpose
15lubricants, cleaning solution, latex gloves, and protective
16films. This exemption applies only to the use of qualifying
17tangible personal property transferred incident to the
18modification, refurbishment, completion, replacement, repair,
19or maintenance of aircraft by persons who (i) hold an Air
20Agency Certificate and are empowered to operate an approved
21repair station by the Federal Aviation Administration, (ii)
22have a Class IV Rating, and (iii) conduct operations in
23accordance with Part 145 of the Federal Aviation Regulations.
24The exemption does not include aircraft operated by a
25commercial air carrier providing scheduled passenger air
26service pursuant to authority issued under Part 121 or Part 129

 

 

09900SB2746sam002- 32 -LRB099 17731 HLH 47384 a

1of the Federal Aviation Regulations. The changes made to this
2paragraph (27) by Public Act 98-534 are declarative of existing
3law.
4    (28) Tangible personal property purchased by a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt instruments
13issued by the public-facilities corporation in connection with
14the development of the municipal convention hall. This
15exemption includes existing public-facilities corporations as
16provided in Section 11-65-25 of the Illinois Municipal Code.
17This paragraph is exempt from the provisions of Section 3-75.
18    (29) Beginning January 1, 2017, menstrual pads and tampons.
19This paragraph is exempt from the provisions of Section 3-75.
20(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2198-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
227-16-14; 99-180, eff. 7-29-15.)
 
23    Section 15. The Service Occupation Tax Act is amended by
24changing Section 3-5 as follows:
 

 

 

09900SB2746sam002- 33 -LRB099 17731 HLH 47384 a

1    (35 ILCS 115/3-5)
2    Sec. 3-5. Exemptions. The following tangible personal
3property is exempt from the tax imposed by this Act:
4    (1) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the benefit
8of persons 65 years of age or older if the personal property
9was not purchased by the enterprise for the purpose of resale
10by the enterprise.
11    (2) Personal property purchased by a not-for-profit
12Illinois county fair association for use in conducting,
13operating, or promoting the county fair.
14    (3) Personal property purchased by any not-for-profit arts
15or cultural organization that establishes, by proof required by
16the Department by rule, that it has received an exemption under
17Section 501(c)(3) of the Internal Revenue Code and that is
18organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after the effective date
25of this amendatory Act of the 92nd General Assembly, however,
26an entity otherwise eligible for this exemption shall not make

 

 

09900SB2746sam002- 34 -LRB099 17731 HLH 47384 a

1tax-free purchases unless it has an active identification
2number issued by the Department.
3    (4) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7    (5) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new and
10used, and including that manufactured on special order or
11purchased for lease, certified by the purchaser to be used
12primarily for graphic arts production. Equipment includes
13chemicals or chemicals acting as catalysts but only if the
14chemicals or chemicals acting as catalysts effect a direct and
15immediate change upon a graphic arts product.
16    (6) Personal property sold by a teacher-sponsored student
17organization affiliated with an elementary or secondary school
18located in Illinois.
19    (7) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

 

 

09900SB2746sam002- 35 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 36 -LRB099 17731 HLH 47384 a

1provisions of Section 3-55.
2    (8) Until June 30, 2013, fuel and petroleum products sold
3to or used by an air common carrier, certified by the carrier
4to be used for consumption, shipment, or storage in the conduct
5of its business as an air common carrier, for a flight destined
6for or returning from a location or locations outside the
7United States without regard to previous or subsequent domestic
8stopovers.
9    Beginning July 1, 2013, fuel and petroleum products sold to
10or used by an air carrier, certified by the carrier to be used
11for consumption, shipment, or storage in the conduct of its
12business as an air common carrier, for a flight that (i) is
13engaged in foreign trade or is engaged in trade between the
14United States and any of its possessions and (ii) transports at
15least one individual or package for hire from the city of
16origination to the city of final destination on the same
17aircraft, without regard to a change in the flight number of
18that aircraft.
19    (9) Proceeds of mandatory service charges separately
20stated on customers' bills for the purchase and consumption of
21food and beverages, to the extent that the proceeds of the
22service charge are in fact turned over as tips or as a
23substitute for tips to the employees who participate directly
24in preparing, serving, hosting or cleaning up the food or
25beverage function with respect to which the service charge is
26imposed.

 

 

09900SB2746sam002- 37 -LRB099 17731 HLH 47384 a

1    (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of rigs,
3rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
4tubular goods, including casing and drill strings, (iii) pumps
5and pump-jack units, (iv) storage tanks and flow lines, (v) any
6individual replacement part for oil field exploration,
7drilling, and production equipment, and (vi) machinery and
8equipment purchased for lease; but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code.
10    (11) Photoprocessing machinery and equipment, including
11repair and replacement parts, both new and used, including that
12manufactured on special order, certified by the purchaser to be
13used primarily for photoprocessing, and including
14photoprocessing machinery and equipment purchased for lease.
15    (12) Coal and aggregate exploration, mining, off-highway
16hauling, processing, maintenance, and reclamation equipment,
17including replacement parts and equipment, and including
18equipment purchased for lease, but excluding motor vehicles
19required to be registered under the Illinois Vehicle Code. The
20changes made to this Section by Public Act 97-767 apply on and
21after July 1, 2003, but no claim for credit or refund is
22allowed on or after August 16, 2013 (the effective date of
23Public Act 98-456) for such taxes paid during the period
24beginning July 1, 2003 and ending on August 16, 2013 (the
25effective date of Public Act 98-456).
26    (13) Beginning January 1, 1992 and through June 30, 2016,

 

 

09900SB2746sam002- 38 -LRB099 17731 HLH 47384 a

1food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages, soft
3drinks and food that has been prepared for immediate
4consumption) and prescription and non-prescription medicines,
5drugs, medical appliances, and insulin, urine testing
6materials, syringes, and needles used by diabetics, for human
7use, when purchased for use by a person receiving medical
8assistance under Article V of the Illinois Public Aid Code who
9resides in a licensed long-term care facility, as defined in
10the Nursing Home Care Act, or in a licensed facility as defined
11in the ID/DD Community Care Act, the MC/DD Act, or the
12Specialized Mental Health Rehabilitation Act of 2013.
13    (14) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (15) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (15) is exempt from the provisions
21of Section 3-55, and the exemption provided for under this item
22(15) applies for all periods beginning May 30, 1995, but no
23claim for credit or refund is allowed on or after January 1,
242008 (the effective date of Public Act 95-88) for such taxes
25paid during the period beginning May 30, 2000 and ending on
26January 1, 2008 (the effective date of Public Act 95-88).

 

 

09900SB2746sam002- 39 -LRB099 17731 HLH 47384 a

1    (16) Computers and communications equipment utilized for
2any hospital purpose and equipment used in the diagnosis,
3analysis, or treatment of hospital patients sold to a lessor
4who leases the equipment, under a lease of one year or longer
5executed or in effect at the time of the purchase, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of the
8Retailers' Occupation Tax Act.
9    (17) Personal property sold to a lessor who leases the
10property, under a lease of one year or longer executed or in
11effect at the time of the purchase, to a governmental body that
12has been issued an active tax exemption identification number
13by the Department under Section 1g of the Retailers' Occupation
14Tax Act.
15    (18) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is donated for
18disaster relief to be used in a State or federally declared
19disaster area in Illinois or bordering Illinois by a
20manufacturer or retailer that is registered in this State to a
21corporation, society, association, foundation, or institution
22that has been issued a sales tax exemption identification
23number by the Department that assists victims of the disaster
24who reside within the declared disaster area.
25    (19) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

09900SB2746sam002- 40 -LRB099 17731 HLH 47384 a

1before December 31, 2004, personal property that is used in the
2performance of infrastructure repairs in this State, including
3but not limited to municipal roads and streets, access roads,
4bridges, sidewalks, waste disposal systems, water and sewer
5line extensions, water distribution and purification
6facilities, storm water drainage and retention facilities, and
7sewage treatment facilities, resulting from a State or
8federally declared disaster in Illinois or bordering Illinois
9when such repairs are initiated on facilities located in the
10declared disaster area within 6 months after the disaster.
11    (20) Beginning July 1, 1999, game or game birds sold at a
12"game breeding and hunting preserve area" as that term is used
13in the Wildlife Code. This paragraph is exempt from the
14provisions of Section 3-55.
15    (21) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the Department
19to be organized and operated exclusively for educational
20purposes. For purposes of this exemption, "a corporation,
21limited liability company, society, association, foundation,
22or institution organized and operated exclusively for
23educational purposes" means all tax-supported public schools,
24private schools that offer systematic instruction in useful
25branches of learning by methods common to public schools and
26that compare favorably in their scope and intensity with the

 

 

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1course of study presented in tax-supported schools, and
2vocational or technical schools or institutes organized and
3operated exclusively to provide a course of study of not less
4than 6 weeks duration and designed to prepare individuals to
5follow a trade or to pursue a manual, technical, mechanical,
6industrial, business, or commercial occupation.
7    (22) Beginning January 1, 2000, personal property,
8including food, purchased through fundraising events for the
9benefit of a public or private elementary or secondary school,
10a group of those schools, or one or more school districts if
11the events are sponsored by an entity recognized by the school
12district that consists primarily of volunteers and includes
13parents and teachers of the school children. This paragraph
14does not apply to fundraising events (i) for the benefit of
15private home instruction or (ii) for which the fundraising
16entity purchases the personal property sold at the events from
17another individual or entity that sold the property for the
18purpose of resale by the fundraising entity and that profits
19from the sale to the fundraising entity. This paragraph is
20exempt from the provisions of Section 3-55.
21    (23) Beginning January 1, 2000 and through December 31,
222001, new or used automatic vending machines that prepare and
23serve hot food and beverages, including coffee, soup, and other
24items, and replacement parts for these machines. Beginning
25January 1, 2002 and through June 30, 2003, machines and parts
26for machines used in commercial, coin-operated amusement and

 

 

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1vending business if a use or occupation tax is paid on the
2gross receipts derived from the use of the commercial,
3coin-operated amusement and vending machines. This paragraph
4is exempt from the provisions of Section 3-55.
5    (24) Beginning on the effective date of this amendatory Act
6of the 92nd General Assembly, computers and communications
7equipment utilized for any hospital purpose and equipment used
8in the diagnosis, analysis, or treatment of hospital patients
9sold to a lessor who leases the equipment, under a lease of one
10year or longer executed or in effect at the time of the
11purchase, to a hospital that has been issued an active tax
12exemption identification number by the Department under
13Section 1g of the Retailers' Occupation Tax Act. This paragraph
14is exempt from the provisions of Section 3-55.
15    (25) Beginning on the effective date of this amendatory Act
16of the 92nd General Assembly, personal property sold to a
17lessor who leases the property, under a lease of one year or
18longer executed or in effect at the time of the purchase, to a
19governmental body that has been issued an active tax exemption
20identification number by the Department under Section 1g of the
21Retailers' Occupation Tax Act. This paragraph is exempt from
22the provisions of Section 3-55.
23    (26) Beginning on January 1, 2002 and through June 30,
242016, tangible personal property purchased from an Illinois
25retailer by a taxpayer engaged in centralized purchasing
26activities in Illinois who will, upon receipt of the property

 

 

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1in Illinois, temporarily store the property in Illinois (i) for
2the purpose of subsequently transporting it outside this State
3for use or consumption thereafter solely outside this State or
4(ii) for the purpose of being processed, fabricated, or
5manufactured into, attached to, or incorporated into other
6tangible personal property to be transported outside this State
7and thereafter used or consumed solely outside this State. The
8Director of Revenue shall, pursuant to rules adopted in
9accordance with the Illinois Administrative Procedure Act,
10issue a permit to any taxpayer in good standing with the
11Department who is eligible for the exemption under this
12paragraph (26). The permit issued under this paragraph (26)
13shall authorize the holder, to the extent and in the manner
14specified in the rules adopted under this Act, to purchase
15tangible personal property from a retailer exempt from the
16taxes imposed by this Act. Taxpayers shall maintain all
17necessary books and records to substantiate the use and
18consumption of all such tangible personal property outside of
19the State of Illinois.
20    (27) Beginning January 1, 2008, tangible personal property
21used in the construction or maintenance of a community water
22supply, as defined under Section 3.145 of the Environmental
23Protection Act, that is operated by a not-for-profit
24corporation that holds a valid water supply permit issued under
25Title IV of the Environmental Protection Act. This paragraph is
26exempt from the provisions of Section 3-55.

 

 

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1    (28) Tangible personal property sold to a
2public-facilities corporation, as described in Section
311-65-10 of the Illinois Municipal Code, for purposes of
4constructing or furnishing a municipal convention hall, but
5only if the legal title to the municipal convention hall is
6transferred to the municipality without any further
7consideration by or on behalf of the municipality at the time
8of the completion of the municipal convention hall or upon the
9retirement or redemption of any bonds or other debt instruments
10issued by the public-facilities corporation in connection with
11the development of the municipal convention hall. This
12exemption includes existing public-facilities corporations as
13provided in Section 11-65-25 of the Illinois Municipal Code.
14This paragraph is exempt from the provisions of Section 3-55.
15    (29) Beginning January 1, 2010, materials, parts,
16equipment, components, and furnishings incorporated into or
17upon an aircraft as part of the modification, refurbishment,
18completion, replacement, repair, or maintenance of the
19aircraft. This exemption includes consumable supplies used in
20the modification, refurbishment, completion, replacement,
21repair, and maintenance of aircraft, but excludes any
22materials, parts, equipment, components, and consumable
23supplies used in the modification, replacement, repair, and
24maintenance of aircraft engines or power plants, whether such
25engines or power plants are installed or uninstalled upon any
26such aircraft. "Consumable supplies" include, but are not

 

 

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1limited to, adhesive, tape, sandpaper, general purpose
2lubricants, cleaning solution, latex gloves, and protective
3films. This exemption applies only to the transfer of
4qualifying tangible personal property incident to the
5modification, refurbishment, completion, replacement, repair,
6or maintenance of an aircraft by persons who (i) hold an Air
7Agency Certificate and are empowered to operate an approved
8repair station by the Federal Aviation Administration, (ii)
9have a Class IV Rating, and (iii) conduct operations in
10accordance with Part 145 of the Federal Aviation Regulations.
11The exemption does not include aircraft operated by a
12commercial air carrier providing scheduled passenger air
13service pursuant to authority issued under Part 121 or Part 129
14of the Federal Aviation Regulations. The changes made to this
15paragraph (29) by Public Act 98-534 are declarative of existing
16law.
17    (30) Beginning January 1, 2017, menstrual pads and tampons.
18This paragraph is exempt from the provisions of Section 3-55.
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 20. The Retailers' Occupation Tax Act is amended by
23changing Section 2-5 as follows:
 
24    (35 ILCS 120/2-5)

 

 

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1    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
2sale of the following tangible personal property are exempt
3from the tax imposed by this Act:
4    (1) Farm chemicals.
5    (2) Farm machinery and equipment, both new and used,
6including that manufactured on special order, certified by the
7purchaser to be used primarily for production agriculture or
8State or federal agricultural programs, including individual
9replacement parts for the machinery and equipment, including
10machinery and equipment purchased for lease, and including
11implements of husbandry defined in Section 1-130 of the
12Illinois Vehicle Code, farm machinery and agricultural
13chemical and fertilizer spreaders, and nurse wagons required to
14be registered under Section 3-809 of the Illinois Vehicle Code,
15but excluding other motor vehicles required to be registered
16under the Illinois Vehicle Code. Horticultural polyhouses or
17hoop houses used for propagating, growing, or overwintering
18plants shall be considered farm machinery and equipment under
19this item (2). Agricultural chemical tender tanks and dry boxes
20shall include units sold separately from a motor vehicle
21required to be licensed and units sold mounted on a motor
22vehicle required to be licensed, if the selling price of the
23tender is separately stated.
24    Farm machinery and equipment shall include precision
25farming equipment that is installed or purchased to be
26installed on farm machinery and equipment including, but not

 

 

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1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (2) is exempt from the
13provisions of Section 2-70.
14    (3) Until July 1, 2003, distillation machinery and
15equipment, sold as a unit or kit, assembled or installed by the
16retailer, certified by the user to be used only for the
17production of ethyl alcohol that will be used for consumption
18as motor fuel or as a component of motor fuel for the personal
19use of the user, and not subject to sale or resale.
20    (4) Until July 1, 2003 and beginning again 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    (5) A motor vehicle that is used for automobile renting, as
4defined in the Automobile Renting Occupation and Use Tax Act.
5This paragraph is exempt from the provisions of Section 2-70.
6    (6) Personal property sold by a teacher-sponsored student
7organization affiliated with an elementary or secondary school
8located in Illinois.
9    (7) Until July 1, 2003, proceeds of that portion of the
10selling price of a passenger car the sale of which is subject
11to the Replacement Vehicle Tax.
12    (8) Personal property sold to an Illinois county fair
13association for use in conducting, operating, or promoting the
14county fair.
15    (9) Personal property sold to a not-for-profit arts or
16cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after the effective date
26of this amendatory Act of the 92nd General Assembly, however,

 

 

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1an entity otherwise eligible for this exemption shall not make
2tax-free purchases unless it has an active identification
3number issued by the Department.
4    (10) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the benefit
8of persons 65 years of age or older if the personal property
9was not purchased by the enterprise for the purpose of resale
10by the enterprise.
11    (11) Personal property sold to a governmental body, to a
12corporation, society, association, foundation, or institution
13organized and operated exclusively for charitable, religious,
14or educational purposes, or to a not-for-profit corporation,
15society, association, foundation, institution, or organization
16that has no compensated officers or employees and that is
17organized and operated primarily for the recreation of persons
1855 years of age or older. A limited liability company may
19qualify 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
24identification number issued by the Department.
25    (12) Tangible personal property sold to interstate
26carriers for hire for use as rolling stock moving in interstate

 

 

09900SB2746sam002- 50 -LRB099 17731 HLH 47384 a

1commerce or to lessors under leases of one year or longer
2executed or in effect at the time of purchase by interstate
3carriers for hire for use as rolling stock moving in interstate
4commerce and equipment operated by a telecommunications
5provider, licensed as a common carrier by the Federal
6Communications Commission, which is permanently installed in
7or affixed to aircraft moving in interstate commerce.
8    (12-5) On and after July 1, 2003 and through June 30, 2004,
9motor vehicles of the second division with a gross vehicle
10weight in excess of 8,000 pounds that are subject to the
11commercial distribution fee imposed under Section 3-815.1 of
12the Illinois Vehicle Code. Beginning on July 1, 2004 and
13through June 30, 2005, the use in this State of motor vehicles
14of the second division: (i) with a gross vehicle weight rating
15in excess of 8,000 pounds; (ii) that are subject to the
16commercial distribution fee imposed under Section 3-815.1 of
17the Illinois Vehicle Code; and (iii) that are primarily used
18for commercial purposes. Through June 30, 2005, this exemption
19applies to repair and replacement parts added after the initial
20purchase of such a motor vehicle if that motor vehicle is used
21in a manner that would qualify for the rolling stock exemption
22otherwise provided for in this Act. For purposes of this
23paragraph, "used for commercial purposes" means the
24transportation of persons or property in furtherance of any
25commercial or industrial enterprise whether for-hire or not.
26    (13) Proceeds from sales to owners, lessors, or shippers of

 

 

09900SB2746sam002- 51 -LRB099 17731 HLH 47384 a

1tangible personal property that is utilized by interstate
2carriers for hire for use as rolling stock moving in interstate
3commerce and equipment operated by a telecommunications
4provider, licensed as a common carrier by the Federal
5Communications Commission, which is permanently installed in
6or affixed to aircraft moving in interstate commerce.
7    (14) Machinery and equipment that will be used by the
8purchaser, or a lessee of the purchaser, primarily in the
9process of manufacturing or assembling tangible personal
10property for wholesale or retail sale or lease, whether the
11sale or lease is made directly by the manufacturer or by some
12other person, whether the materials used in the process are
13owned by the manufacturer or some other person, or whether the
14sale or lease is made apart from or as an incident to the
15seller's engaging in the service occupation of producing
16machines, tools, dies, jigs, patterns, gauges, or other similar
17items of no commercial value on special order for a particular
18purchaser. The exemption provided by this paragraph (14) does
19not include machinery and equipment used in (i) the generation
20of electricity for wholesale or retail sale; (ii) the
21generation or treatment of natural or artificial gas for
22wholesale or retail sale that is delivered to customers through
23pipes, pipelines, or mains; or (iii) the treatment of water for
24wholesale or retail sale that is delivered to customers through
25pipes, pipelines, or mains. The provisions of Public Act 98-583
26are declaratory of existing law as to the meaning and scope of

 

 

09900SB2746sam002- 52 -LRB099 17731 HLH 47384 a

1this exemption.
2    (15) Proceeds of mandatory service charges separately
3stated on customers' bills for purchase and consumption of food
4and beverages, to the extent that the proceeds of the service
5charge are in fact turned over as tips or as a substitute for
6tips to the employees who participate directly in preparing,
7serving, hosting or cleaning up the food or beverage function
8with respect to which the service charge is imposed.
9    (16) Petroleum products sold to a purchaser if the seller
10is prohibited by federal law from charging tax to the
11purchaser.
12    (17) Tangible personal property sold to a common carrier by
13rail or motor that receives the physical possession of the
14property in Illinois and that transports the property, or
15shares with another common carrier in the transportation of the
16property, out of Illinois on a standard uniform bill of lading
17showing the seller of the property as the shipper or consignor
18of the property to a destination outside Illinois, for use
19outside Illinois.
20    (18) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (19) Until July 1 2003, oil field exploration, drilling,
25and production equipment, including (i) rigs and parts of rigs,
26rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

 

 

09900SB2746sam002- 53 -LRB099 17731 HLH 47384 a

1tubular goods, including casing and drill strings, (iii) pumps
2and pump-jack units, (iv) storage tanks and flow lines, (v) any
3individual replacement part for oil field exploration,
4drilling, and production equipment, and (vi) machinery and
5equipment purchased for lease; but excluding motor vehicles
6required to be registered under the Illinois Vehicle Code.
7    (20) Photoprocessing machinery and equipment, including
8repair and replacement parts, both new and used, including that
9manufactured on special order, certified by the purchaser to be
10used primarily for photoprocessing, and including
11photoprocessing machinery and equipment purchased for lease.
12    (21) Coal and aggregate exploration, mining, off-highway
13hauling, processing, maintenance, and reclamation equipment,
14including replacement parts and equipment, and including
15equipment purchased for lease, but excluding motor vehicles
16required to be registered under the Illinois Vehicle Code. The
17changes made to this Section by Public Act 97-767 apply on and
18after July 1, 2003, but no claim for credit or refund is
19allowed on or after August 16, 2013 (the effective date of
20Public Act 98-456) for such taxes paid during the period
21beginning July 1, 2003 and ending on August 16, 2013 (the
22effective date of Public Act 98-456).
23    (22) Until June 30, 2013, fuel and petroleum products sold
24to or used by an air carrier, certified by the carrier to be
25used for consumption, shipment, or storage in the conduct of
26its business as an air common carrier, for a flight destined

 

 

09900SB2746sam002- 54 -LRB099 17731 HLH 47384 a

1for or returning from a location or locations outside the
2United States without regard to previous or subsequent domestic
3stopovers.
4    Beginning July 1, 2013, fuel and petroleum products sold to
5or used by an air carrier, certified by the carrier to be used
6for consumption, shipment, or storage in the conduct of its
7business as an air common carrier, for a flight that (i) is
8engaged in foreign trade or is engaged in trade between the
9United States and any of its possessions and (ii) transports at
10least one individual or package for hire from the city of
11origination to the city of final destination on the same
12aircraft, without regard to a change in the flight number of
13that aircraft.
14    (23) A transaction in which the purchase order is received
15by a florist who is located outside Illinois, but who has a
16florist located in Illinois deliver the property to the
17purchaser or the purchaser's donee in Illinois.
18    (24) Fuel consumed or used in the operation of ships,
19barges, or vessels that are used primarily in or for the
20transportation of property or the conveyance of persons for
21hire on rivers bordering on this State if the fuel is delivered
22by the seller to the purchaser's barge, ship, or vessel while
23it is afloat upon that bordering river.
24    (25) Except as provided in item (25-5) of this Section, a
25motor vehicle sold in this State to a nonresident even though
26the motor vehicle is delivered to the nonresident in this

 

 

09900SB2746sam002- 55 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 56 -LRB099 17731 HLH 47384 a

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

 

 

09900SB2746sam002- 57 -LRB099 17731 HLH 47384 a

1    the Department, certifying that the requirements of this
2    item (25-7) are met. The certificate must also include the
3    name and address of the purchaser, the address of the
4    location where the aircraft is to be titled or registered,
5    the address of the primary physical location of the
6    aircraft, and other information that the Department may
7    reasonably require.
8    For purposes of this item (25-7):
9    "Based in this State" means hangared, stored, or otherwise
10used, excluding post-sale customizations as defined in this
11Section, for 10 or more days in each 12-month period
12immediately following the date of the sale of the aircraft.
13    "Registered in this State" means an aircraft registered
14with the Department of Transportation, Aeronautics Division,
15or titled or registered with the Federal Aviation
16Administration to an address located in this State.
17    This paragraph (25-7) is exempt from the provisions of
18Section 2-70.
19    (26) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (27) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (27) is exempt from the provisions

 

 

09900SB2746sam002- 58 -LRB099 17731 HLH 47384 a

1of Section 2-70, and the exemption provided for under this item
2(27) applies for all periods beginning May 30, 1995, but no
3claim for credit or refund is allowed on or after January 1,
42008 (the effective date of Public Act 95-88) for such taxes
5paid during the period beginning May 30, 2000 and ending on
6January 1, 2008 (the effective date of Public Act 95-88).
7    (28) Computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients sold to a lessor
10who leases the equipment, under a lease of one year or longer
11executed or in effect at the time of the purchase, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14this Act.
15    (29) Personal property sold to a lessor who leases the
16property, under a lease of one year or longer executed or in
17effect at the time of the purchase, to a governmental body that
18has been issued an active tax exemption identification number
19by the Department under Section 1g of this Act.
20    (30) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is donated for
23disaster relief to be used in a State or federally declared
24disaster area in Illinois or bordering Illinois by a
25manufacturer or retailer that is registered in this State to a
26corporation, society, association, foundation, or institution

 

 

09900SB2746sam002- 59 -LRB099 17731 HLH 47384 a

1that has been issued a sales tax exemption identification
2number by the Department that assists victims of the disaster
3who reside within the declared disaster area.
4    (31) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is used in the
7performance of infrastructure repairs in this State, including
8but not limited to municipal roads and streets, access roads,
9bridges, sidewalks, waste disposal systems, water and sewer
10line extensions, water distribution and purification
11facilities, storm water drainage and retention facilities, and
12sewage treatment facilities, resulting from a State or
13federally declared disaster in Illinois or bordering Illinois
14when such repairs are initiated on facilities located in the
15declared disaster area within 6 months after the disaster.
16    (32) Beginning July 1, 1999, game or game birds sold at a
17"game breeding and hunting preserve area" as that term is used
18in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 2-70.
20    (33) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the Department
24to be organized and operated exclusively for educational
25purposes. For purposes of this exemption, "a corporation,
26limited liability company, society, association, foundation,

 

 

09900SB2746sam002- 60 -LRB099 17731 HLH 47384 a

1or institution organized and operated exclusively for
2educational purposes" means all tax-supported public schools,
3private schools that offer systematic instruction in useful
4branches of learning by methods common to public schools and
5that compare favorably in their scope and intensity with the
6course of study presented in tax-supported schools, and
7vocational or technical schools or institutes organized and
8operated exclusively to provide a course of study of not less
9than 6 weeks duration and designed to prepare individuals to
10follow a trade or to pursue a manual, technical, mechanical,
11industrial, business, or commercial occupation.
12    (34) Beginning January 1, 2000, personal property,
13including food, purchased through fundraising events for the
14benefit of a public or private elementary or secondary school,
15a group of those schools, or one or more school districts if
16the events are sponsored by an entity recognized by the school
17district that consists primarily of volunteers and includes
18parents and teachers of the school children. This paragraph
19does not apply to fundraising events (i) for the benefit of
20private home instruction or (ii) for which the fundraising
21entity purchases the personal property sold at the events from
22another individual or entity that sold the property for the
23purpose of resale by the fundraising entity and that profits
24from the sale to the fundraising entity. This paragraph is
25exempt from the provisions of Section 2-70.
26    (35) Beginning January 1, 2000 and through December 31,

 

 

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12001, new or used automatic vending machines that prepare and
2serve hot food and beverages, including coffee, soup, and other
3items, and replacement parts for these machines. Beginning
4January 1, 2002 and through June 30, 2003, machines and parts
5for machines used in commercial, coin-operated amusement and
6vending business if a use or occupation tax is paid on the
7gross receipts derived from the use of the commercial,
8coin-operated amusement and vending machines. This paragraph
9is exempt from the provisions of Section 2-70.
10    (35-5) Beginning August 23, 2001 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks, and food that has been prepared for immediate
14consumption) and prescription and nonprescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or a licensed facility as defined in
21the ID/DD Community Care Act, the MC/DD Act, or the Specialized
22Mental Health Rehabilitation Act of 2013.
23    (36) Beginning August 2, 2001, computers and
24communications equipment utilized for any hospital purpose and
25equipment used in the diagnosis, analysis, or treatment of
26hospital patients sold to a lessor who leases the equipment,

 

 

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1under a lease of one year or longer executed or in effect at
2the time of the purchase, to a hospital that has been issued an
3active tax exemption identification number by the Department
4under Section 1g of this Act. This paragraph is exempt from the
5provisions of Section 2-70.
6    (37) Beginning August 2, 2001, personal property sold to a
7lessor who leases the property, under a lease of one year or
8longer executed or in effect at the time of the purchase, to a
9governmental body that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11this Act. This paragraph is exempt from the provisions of
12Section 2-70.
13    (38) Beginning on January 1, 2002 and through June 30,
142016, tangible personal property purchased from an Illinois
15retailer by a taxpayer engaged in centralized purchasing
16activities in Illinois who will, upon receipt of the property
17in Illinois, temporarily store the property in Illinois (i) for
18the purpose of subsequently transporting it outside this State
19for use or consumption thereafter solely outside this State or
20(ii) for the purpose of being processed, fabricated, or
21manufactured into, attached to, or incorporated into other
22tangible personal property to be transported outside this State
23and thereafter used or consumed solely outside this State. The
24Director of Revenue shall, pursuant to rules adopted in
25accordance with the Illinois Administrative Procedure Act,
26issue a permit to any taxpayer in good standing with the

 

 

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1Department who is eligible for the exemption under this
2paragraph (38). The permit issued under this paragraph (38)
3shall authorize the holder, to the extent and in the manner
4specified in the rules adopted under this Act, to purchase
5tangible personal property from a retailer exempt from the
6taxes imposed by this Act. Taxpayers shall maintain all
7necessary books and records to substantiate the use and
8consumption of all such tangible personal property outside of
9the State of Illinois.
10    (39) 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 2-70.
17    (40) 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 sale of qualifying
6tangible personal property to persons who modify, refurbish,
7complete, replace, or maintain an aircraft and who (i) hold an
8Air Agency Certificate and are empowered to operate an approved
9repair station by the Federal Aviation Administration, (ii)
10have a Class IV Rating, and (iii) conduct operations in
11accordance with Part 145 of the Federal Aviation Regulations.
12The exemption does not include aircraft operated by a
13commercial 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 (40) by Public Act 98-534 are declarative of existing
17law.
18    (41) Tangible personal property sold to 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 2-70.
6    (42) Beginning January 1, 2017, menstrual pads and tampons.
7This paragraph is exempt from the provisions of Section 2-70.
8(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
998-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
101-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
117-29-15.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".