State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 001 ][ Conference Committee Report 002 ]

90_SB0730enr

      625 ILCS 5/2-121          from Ch. 95 1/2, par. 2-121
          Amends provisions  of  the  Vehicle  Code  prohibiting  a
      municipality  from imposing a tax or license fee upon vehicle
      owners under  specified  circumstances.   Imposes  a  similar
      prohibition  upon  counties.  Declares  ordinances enacted by
      counties that are inconsistent with  the  prohibition  to  be
      null and void, and provides for the refund and forgiveness of
      money  paid  or owed to a county on or after January 1, 1993.
      Preempts home rule powers.
                                                     LRB9001010NTsb
SB730 Enrolled                                 LRB9001010NTsb
 1        AN ACT concerning transportation, amending named Acts.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  3.   The  Use  Tax  Act  is  amended by changing
 5    Section 3-55 as follows:
 6        (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
 7        Sec. 3-55.  Multistate exemption.  To prevent  actual  or
 8    likely  multistate taxation, the tax imposed by this Act does
 9    not apply to the use of tangible personal  property  in  this
10    State under the following circumstances:
11        (a)  The   use,  in  this  State,  of  tangible  personal
12    property  acquired  outside  this  State  by  a   nonresident
13    individual  and brought into this State by the individual for
14    his or her own use while temporarily  within  this  State  or
15    while passing through this State.
16        (b)  The   use,  in  this  State,  of  tangible  personal
17    property by an interstate carrier for hire as  rolling  stock
18    moving  in interstate commerce or by lessors under a lease of
19    one year or longer executed or  in  effect  at  the  time  of
20    purchase of tangible personal property by interstate carriers
21    for-hire  for  use  as  rolling  stock  moving  in interstate
22    commerce as long  as  so  used  by  the  interstate  carriers
23    for-hire,  and  equipment  operated  by  a telecommunications
24    provider,  licensed  as  a  common  carrier  by  the  Federal
25    Communications Commission, which is permanently installed  in
26    or affixed to aircraft moving in interstate commerce.
27        (c)  The  use,  in  this  State,  by  owners, lessors, or
28    shippers of tangible personal property that  is  utilized  by
29    interstate  carriers for hire for use as rolling stock moving
30    in interstate commerce as long as so used by  the  interstate
31    carriers    for   hire,   and   equipment   operated   by   a
SB730 Enrolled             -2-                 LRB9001010NTsb
 1    telecommunications provider, licensed as a common carrier  by
 2    the  Federal  Communications Commission, which is permanently
 3    installed in or affixed  to  aircraft  moving  in  interstate
 4    commerce.
 5        (d)  The   use,  in  this  State,  of  tangible  personal
 6    property that is acquired outside this State and caused to be
 7    brought into this State by a person who has  already  paid  a
 8    tax in another State in respect to the sale, purchase, or use
 9    of  that  property,  to  the  extent of the amount of the tax
10    properly due and paid in the other State.
11        (e)  The temporary storage, in this  State,  of  tangible
12    personal  property  that  is  acquired outside this State and
13    that, after being brought into this  State  and  stored  here
14    temporarily,   is  used  solely  outside  this  State  or  is
15    physically attached to or incorporated  into  other  tangible
16    personal  property that is used solely outside this State, or
17    is  altered  by   converting,   fabricating,   manufacturing,
18    printing,  processing,  or  shaping, and, as altered, is used
19    solely outside this State.
20        (f)  The temporary storage  in  this  State  of  building
21    materials and fixtures that are acquired either in this State
22    or  outside  this State by an Illinois registered combination
23    retailer and construction contractor, and that the  purchaser
24    thereafter  uses  outside  this  State  by incorporating that
25    property into real estate located outside this State.
26        (g)  The use or purchase of tangible personal property by
27    a common carrier by rail or motor that receives the  physical
28    possession  of  the property in Illinois, and that transports
29    the property, or shares with another common  carrier  in  the
30    transportation of the property, out of Illinois on a standard
31    uniform  bill of lading showing the seller of the property as
32    the shipper or consignor of the  property  to  a  destination
33    outside Illinois, for use outside Illinois.
34        (h)  The  use, in this State, of a motor vehicle that was
SB730 Enrolled             -3-                 LRB9001010NTsb
 1    sold in this State to a nonresident, even  though  the  motor
 2    vehicle is delivered to the nonresident in this State, if the
 3    motor  vehicle  is  not  to be titled in this State, and if a
 4    driveaway decal permit is issued  to  the  motor  vehicle  as
 5    provided  in Section 3-603 of the Illinois Vehicle Code or if
 6    the nonresident purchaser has vehicle registration plates  to
 7    transfer  to  the  motor vehicle upon returning to his or her
 8    home state. The issuance of the  driveaway  decal  permit  or
 9    having the out-of-state registration plates to be transferred
10    shall be prima facie evidence that the motor vehicle will not
11    be titled in this State.
12    (Source: P.A.  86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
13    86-953; 86-1394; 86-1475; 87-1263.)
14        Section 4. The Retailers' Occupation Tax Act  is  amended
15    by changing Section 2-5 as follows:
16        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
17        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
18    the  sale  of  the  following  tangible personal property are
19    exempt from the tax imposed by this Act:
20        (1)  Farm chemicals.
21        (2)  Farm machinery and equipment,  both  new  and  used,
22    including  that  manufactured  on special order, certified by
23    the purchaser to be used primarily for production agriculture
24    or  State  or  federal   agricultural   programs,   including
25    individual replacement parts for the machinery and equipment,
26    and  including  machinery  and equipment purchased for lease,
27    but excluding motor vehicles required to be registered  under
28    the Illinois Vehicle Code.
29        (3)  Distillation machinery and equipment, sold as a unit
30    or  kit, assembled or installed by the retailer, certified by
31    the user to be used only for the production of ethyl  alcohol
32    that  will  be  used  for  consumption  as motor fuel or as a
SB730 Enrolled             -4-                 LRB9001010NTsb
 1    component of motor fuel for the personal use of the user, and
 2    not subject to sale or resale.
 3        (4)  Graphic  arts  machinery  and  equipment,  including
 4    repair  and  replacement  parts,  both  new  and  used,   and
 5    including that manufactured on special order or purchased for
 6    lease,  certified  by  the purchaser to be used primarily for
 7    graphic arts production.
 8        (5)  A motor vehicle  of  the  first  division,  a  motor
 9    vehicle of the second division that is a self-contained motor
10    vehicle  designed  or permanently converted to provide living
11    quarters for  recreational,  camping,  or  travel  use,  with
12    direct  walk  through  access to the living quarters from the
13    driver's seat, or a motor vehicle of the second division that
14    is of the van configuration designed for  the  transportation
15    of not less than 7 nor more than 16 passengers, as defined in
16    Section  1-146 of the Illinois Vehicle Code, that is used for
17    automobile renting, as  defined  in  the  Automobile  Renting
18    Occupation and Use Tax Act.
19        (6)  Personal   property   sold  by  a  teacher-sponsored
20    student  organization  affiliated  with  an   elementary   or
21    secondary school located in Illinois.
22        (7)  Proceeds  of  that portion of the selling price of a
23    passenger car the sale of which is subject to the Replacement
24    Vehicle Tax.
25        (8)  Personal property sold to an  Illinois  county  fair
26    association  for  use  in conducting, operating, or promoting
27    the county fair.
28        (9)  Personal property sold to a not-for-profit music  or
29    dramatic   arts   organization  that  establishes,  by  proof
30    required by the Department by rule, that it has  received  an
31    exemption  under  Section  501(c) (3) of the Internal Revenue
32    Code and that is organized and operated for the  presentation
33    of live public performances of musical or theatrical works on
34    a regular basis.
SB730 Enrolled             -5-                 LRB9001010NTsb
 1        (10)  Personal  property  sold by a corporation, society,
 2    association, foundation, institution, or organization,  other
 3    than  a  limited  liability  company,  that  is organized and
 4    operated as  a  not-for-profit  service  enterprise  for  the
 5    benefit  of  persons 65 years of age or older if the personal
 6    property was not purchased by the enterprise for the  purpose
 7    of resale by the enterprise.
 8        (11)  Personal property sold to a governmental body, to a
 9    corporation, society, association, foundation, or institution
10    organized and operated exclusively for charitable, religious,
11    or  educational purposes, or to a not-for-profit corporation,
12    society,    association,    foundation,    institution,    or
13    organization that has no compensated  officers  or  employees
14    and   that  is  organized  and  operated  primarily  for  the
15    recreation of persons 55 years of age  or  older.  A  limited
16    liability  company  may  qualify for the exemption under this
17    paragraph only if the limited liability company is  organized
18    and  operated  exclusively  for  educational purposes. On and
19    after July 1, 1987, however, no entity otherwise eligible for
20    this exemption shall make tax-free purchases unless it has an
21    active identification number issued by the Department.
22        (12)  Personal property sold to interstate  carriers  for
23    hire  for  use as rolling stock moving in interstate commerce
24    or to lessors under leases of one year or longer executed  or
25    in  effect at the time of purchase by interstate carriers for
26    hire for use as rolling stock moving in  interstate  commerce
27    and  equipment  operated  by  a  telecommunications provider,
28    licensed as a common carrier by  the  Federal  Communications
29    Commission,  which  is permanently installed in or affixed to
30    aircraft moving in interstate commerce.
31        (13)  Proceeds from sales to owners, lessors, or shippers
32    of tangible personal property that is utilized by  interstate
33    carriers  for  hire  for  use  as  rolling  stock  moving  in
34    interstate    commerce    and   equipment   operated   by   a
SB730 Enrolled             -6-                 LRB9001010NTsb
 1    telecommunications provider, licensed as a common carrier  by
 2    the  Federal  Communications Commission, which is permanently
 3    installed in or affixed  to  aircraft  moving  in  interstate
 4    commerce.
 5        (14)  Machinery  and  equipment  that will be used by the
 6    purchaser, or a lessee of the  purchaser,  primarily  in  the
 7    process  of  manufacturing  or  assembling  tangible personal
 8    property for wholesale or retail sale or lease,  whether  the
 9    sale or lease is made directly by the manufacturer or by some
10    other  person,  whether the materials used in the process are
11    owned by the manufacturer or some other  person,  or  whether
12    the sale or lease is made apart from or as an incident to the
13    seller's  engaging  in  the  service  occupation of producing
14    machines, tools,  dies,  jigs,  patterns,  gauges,  or  other
15    similar  items  of no commercial value on special order for a
16    particular purchaser.
17        (15)  Proceeds of mandatory  service  charges  separately
18    stated  on  customers'  bills for purchase and consumption of
19    food and beverages, to the extent that the  proceeds  of  the
20    service  charge  are  in  fact  turned  over  as tips or as a
21    substitute for tips to the employees who participate directly
22    in preparing, serving, hosting or cleaning  up  the  food  or
23    beverage function with respect to which the service charge is
24    imposed.
25        (16)  Petroleum  products  sold  to  a  purchaser  if the
26    seller is prohibited by federal law from charging tax to  the
27    purchaser.
28        (17)  Tangible personal property sold to a common carrier
29    by rail or motor that receives the physical possession of the
30    property  in  Illinois  and  that transports the property, or
31    shares with another common carrier in the  transportation  of
32    the  property,  out of Illinois on a standard uniform bill of
33    lading showing the seller of the property as the  shipper  or
34    consignor  of the property to a destination outside Illinois,
SB730 Enrolled             -7-                 LRB9001010NTsb
 1    for use outside Illinois.
 2        (18)  Legal tender,  currency,  medallions,  or  gold  or
 3    silver   coinage   issued  by  the  State  of  Illinois,  the
 4    government of the United States of America, or the government
 5    of any foreign country, and bullion.
 6        (19)  Oil field  exploration,  drilling,  and  production
 7    equipment, including (i) rigs and parts of rigs, rotary rigs,
 8    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
 9    goods, including casing and drill strings,  (iii)  pumps  and
10    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
11    individual  replacement  part  for  oil  field   exploration,
12    drilling,  and  production  equipment, and (vi) machinery and
13    equipment purchased for lease; but excluding  motor  vehicles
14    required to be registered under the Illinois Vehicle Code.
15        (20)  Photoprocessing  machinery and equipment, including
16    repair and replacement parts, both new  and  used,  including
17    that   manufactured   on  special  order,  certified  by  the
18    purchaser to  be  used  primarily  for  photoprocessing,  and
19    including  photoprocessing  machinery and equipment purchased
20    for lease.
21        (21)  Coal  exploration,  mining,   offhighway   hauling,
22    processing, maintenance, and reclamation equipment, including
23    replacement  parts  and  equipment,  and  including equipment
24    purchased for lease, but excluding motor vehicles required to
25    be registered under the Illinois Vehicle Code.
26        (22)  Fuel and petroleum products sold to or used  by  an
27    air  carrier,  certified  by  the  carrier  to  be  used  for
28    consumption,  shipment,  or  storage  in  the  conduct of its
29    business as an air common carrier, for a flight destined  for
30    or  returning from a location or locations outside the United
31    States without regard  to  previous  or  subsequent  domestic
32    stopovers.
33        (23)  A  transaction  in  which  the  purchase  order  is
34    received  by  a  florist who is located outside Illinois, but
SB730 Enrolled             -8-                 LRB9001010NTsb
 1    who has a florist located in Illinois deliver the property to
 2    the purchaser or the purchaser's donee in Illinois.
 3        (24)  Fuel consumed or used in the  operation  of  ships,
 4    barges,  or  vessels  that  are  used primarily in or for the
 5    transportation of property or the conveyance of  persons  for
 6    hire  on  rivers  bordering  on  this  State  if  the fuel is
 7    delivered by the seller to the purchaser's  barge,  ship,  or
 8    vessel while it is afloat upon that bordering river.
 9        (25)  A motor vehicle sold in this State to a nonresident
10    even though the motor vehicle is delivered to the nonresident
11    in  this  State,  if the motor vehicle is not to be titled in
12    this State, and if a driveaway decal permit is issued to  the
13    motor  vehicle  as  provided in Section 3-603 of the Illinois
14    Vehicle Code or if  the  nonresident  purchaser  has  vehicle
15    registration  plates  to  transfer  to the motor vehicle upon
16    returning to his or her home  state.   The  issuance  of  the
17    driveaway   decal   permit   or   having   the   out-of-state
18    registration plates to be transferred is prima facie evidence
19    that the motor vehicle will not be titled in this State.
20        (26)  Semen used for artificial insemination of livestock
21    for direct agricultural production.
22        (27)  Horses, or interests in horses, registered with and
23    meeting  the  requirements  of  any of the Arabian Horse Club
24    Registry of America, Appaloosa Horse Club,  American  Quarter
25    Horse  Association,  United  States  Trotting Association, or
26    Jockey Club, as appropriate, used for purposes of breeding or
27    racing for prizes.
28        (28)   Computers and  communications  equipment  utilized
29    for any hospital purpose and equipment used in the diagnosis,
30    analysis,  or treatment of hospital patients sold to a lessor
31    who leases the equipment, under a lease of one year or longer
32    executed or in effect at the  time  of  the  purchase,  to  a
33    hospital  that  has  been  issued  an  active  tax  exemption
34    identification  number  by the Department under Section 1g of
SB730 Enrolled             -9-                 LRB9001010NTsb
 1    this Act.
 2        (29)   Personal property sold to a lessor who leases  the
 3    property,  under a lease of one year or longer executed or in
 4    effect at the time of the purchase, to  a  governmental  body
 5    that  has  been issued an active tax exemption identification
 6    number by the Department under Section 1g of this Act.
 7        (30)   Beginning with taxable years ending  on  or  after
 8    December  31, 1995 and ending with taxable years ending on or
 9    before December 31, 2004, personal property that  is  donated
10    for  disaster  relief  to  be  used  in  a State or federally
11    declared disaster area in Illinois or bordering Illinois by a
12    manufacturer or retailer that is registered in this State  to
13    a   corporation,   society,   association,   foundation,   or
14    institution  that  has  been  issued  a  sales  tax exemption
15    identification number by the Department that assists  victims
16    of the disaster who reside within the declared disaster area.
17        (31)   Beginning  with  taxable  years ending on or after
18    December 31, 1995 and ending with taxable years ending on  or
19    before  December  31, 2004, personal property that is used in
20    the performance of  infrastructure  repairs  in  this  State,
21    including  but  not  limited  to municipal roads and streets,
22    access roads, bridges,  sidewalks,  waste  disposal  systems,
23    water  and  sewer  line  extensions,  water  distribution and
24    purification facilities, storm water drainage  and  retention
25    facilities, and sewage treatment facilities, resulting from a
26    State or federally declared disaster in Illinois or bordering
27    Illinois  when  such  repairs  are  initiated  on  facilities
28    located  in  the declared disaster area within 6 months after
29    the disaster.
30    (Source: P.A. 88-337; 88-480; 88-547; 88-670,  eff.  12-2-94;
31    89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
32    8-17-95;  89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
33    eff. 8-9-96; revised 8-21-96.)
SB730 Enrolled             -10-                LRB9001010NTsb
 1        Section 5.  The  Illinois  Vehicle  Code  is  amended  by
 2    changing Section 11-304 as follows:
 3        (625 ILCS 5/11-304) (from Ch. 95 1/2, par. 11-304)
 4        Sec.   11-304.  Local  traffic-control  devices;  tourist
 5    oriented businesses signs.
 6        Local authorities and road district highway commissioners
 7    in their respective maintenance jurisdiction shall place  and
 8    maintain  such  traffic-control  devices  upon highways under
 9    their maintenance jurisdiction as are  required  to  indicate
10    and  carry  out  the  provisions  of  this Chapter, and local
11    traffic ordinances or to regulate, warn,  or  guide  traffic.
12    All  such  traffic control devices shall conform to the State
13    Manual and Specifications and shall be justified  by  traffic
14    warrants  stated  in the Manual. Placement of traffic-control
15    devices on township or road  district  roads  also  shall  be
16    subject  to  the  written  approval of the county engineer or
17    superintendent of highways.
18        Local authorities and road district highway commissioners
19    in their respective maintenance jurisdictions shall have  the
20    authority  to  install  signs,  in conformance with the State
21    Manual and specifications, alerting motorists of the  tourist
22    oriented   businesses   available   on   roads   under  local
23    jurisdiction in rural areas  as  may  be  required  to  guide
24    motorists  to  the businesses. The local authorities and road
25    district highway commissioners shall also have the  authority
26    to  sell  or  lease  space  on  these  signs to the owners or
27    operators of the businesses.
28    (Source: P.A. 87-217.)
29        Section 10.  The Motor Vehicle Retail  Installment  Sales
30    Act is amended by changing Section 11.1 as follows:
31        (815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)
SB730 Enrolled             -11-                LRB9001010NTsb
 1        Sec. 11.1.  A seller in a retail installment contract may
 2    add   a   "documentary  fee"  for  processing  documents  and
 3    performing services related to closing of a sale. The maximum
 4    amount that may be charged by a seller for a documentary  fee
 5    is the base documentary fee beginning January 1, 1992, of $40
 6    which and shall be subject to an annual rate adjustment equal
 7    to the percentage of change in the Bureau of Labor Statistics
 8    Consumer Price Index. Every retail installment contract under
 9    this  Act  shall  contain  or  be  accompanied  by  a  notice
10    containing the following information:
11        "DOCUMENTARY  FEE.   A DOCUMENTARY FEE IS NOT AN OFFICIAL
12    FEE.  A DOCUMENTARY FEE IS NOT REQUIRED BY LAW,  BUT  MAY  BE
13    CHARGED  TO  BUYERS  FOR  HANDLING  DOCUMENTS  AND PERFORMING
14    SERVICES RELATED TO CLOSING OF A SALE. THE  BASE  DOCUMENTARY
15    FEE  BEGINNING  JANUARY 1, 1992, WAS $40.  THE MAXIMUM AMOUNT
16    THAT MAY BE  CHARGED  FOR  A  DOCUMENTARY  FEE  IS  THE  BASE
17    DOCUMENTARY  FEE  OF  MAY  NOT  EXCEED $40 WHICH AND SHALL BE
18    SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL TO THE  PERCENTAGE
19    OF  CHANGE  IN  THE BUREAU OF LABOR STATISTICS CONSUMER PRICE
20    INDEX. THIS NOTICE IS REQUIRED BY LAW.
21    (Source: P.A. 87-625.)

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