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91_HB1905enr HB1905 Enrolled LRB9101538PTpk 1 AN ACT concerning cultural organizations. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Use Tax Act is amended by changing 5 Section 3-5 as follows: 6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 7 Sec. 3-5. Exemptions. Use of the following tangible 8 personal property is exempt from the tax imposed by this Act: 9 (1) Personal property purchased from a corporation, 10 society, association, foundation, institution, or 11 organization, other than a limited liability company, that is 12 organized and operated as a not-for-profit service enterprise 13 for the benefit of persons 65 years of age or older if the 14 personal property was not purchased by the enterprise for the 15 purpose of resale by the enterprise. 16 (2) Personal property purchased by a not-for-profit 17 Illinois county fair association for use in conducting, 18 operating, or promoting the county fair. 19 (3) Personal property purchased by a not-for-profit 20music or dramaticarts or cultural organization that 21 establishes, by proof required by the Department by rule, 22 that it has received an exemption under Section 501(c)(3) of 23 the Internal Revenue Code and that is organized and operated 24 for the presentation or support of arts or cultural 25 programming, activities, or services. These organizations 26 include, but are not limited to, music and dramatic arts 27 organizations such as symphony orchestras and theatrical 28 groups, arts and cultural service organizations, local arts 29 councils, visual arts organizations, and media arts 30 organizationsof live public performances of musical or31theatrical works on a regular basis. HB1905 Enrolled -2- LRB9101538PTpk 1 (4) Personal property purchased by a governmental body, 2 by a corporation, society, association, foundation, or 3 institution organized and operated exclusively for 4 charitable, religious, or educational purposes, or by a 5 not-for-profit corporation, society, association, foundation, 6 institution, or organization that has no compensated officers 7 or employees and that is organized and operated primarily for 8 the recreation of persons 55 years of age or older. A limited 9 liability company may qualify for the exemption under this 10 paragraph only if the limited liability company is organized 11 and operated exclusively for educational purposes. On and 12 after July 1, 1987, however, no entity otherwise eligible for 13 this exemption shall make tax-free purchases unless it has an 14 active exemption identification number issued by the 15 Department. 16 (5) A passenger car that is a replacement vehicle to the 17 extent that the purchase price of the car is subject to the 18 Replacement Vehicle Tax. 19 (6) Graphic arts machinery and equipment, including 20 repair and replacement parts, both new and used, and 21 including that manufactured on special order, certified by 22 the purchaser to be used primarily for graphic arts 23 production, and including machinery and equipment purchased 24 for lease. 25 (7) Farm chemicals. 26 (8) Legal tender, currency, medallions, or gold or 27 silver coinage issued by the State of Illinois, the 28 government of the United States of America, or the government 29 of any foreign country, and bullion. 30 (9) Personal property purchased from a teacher-sponsored 31 student organization affiliated with an elementary or 32 secondary school located in Illinois. 33 (10) A motor vehicle of the first division, a motor 34 vehicle of the second division that is a self-contained motor HB1905 Enrolled -3- LRB9101538PTpk 1 vehicle designed or permanently converted to provide living 2 quarters for recreational, camping, or travel use, with 3 direct walk through to the living quarters from the driver's 4 seat, or a motor vehicle of the second division that is of 5 the van configuration designed for the transportation of not 6 less than 7 nor more than 16 passengers, as defined in 7 Section 1-146 of the Illinois Vehicle Code, that is used for 8 automobile renting, as defined in the Automobile Renting 9 Occupation and Use Tax Act. 10 (11) Farm machinery and equipment, both new and used, 11 including that manufactured on special order, certified by 12 the purchaser to be used primarily for production agriculture 13 or State or federal agricultural programs, including 14 individual replacement parts for the machinery and equipment, 15 including machinery and equipment purchased for lease, and 16 including implements of husbandry defined in Section 1-130 of 17 the Illinois Vehicle Code, farm machinery and agricultural 18 chemical and fertilizer spreaders, and nurse wagons required 19 to be registered under Section 3-809 of the Illinois Vehicle 20 Code, but excluding other motor vehicles required to be 21 registered under the Illinois Vehicle Code. Horticultural 22 polyhouses or hoop houses used for propagating, growing, or 23 overwintering plants shall be considered farm machinery and 24 equipment under this item (11). Agricultural chemical tender 25 tanks and dry boxes shall include units sold separately from 26 a motor vehicle required to be licensed and units sold 27 mounted on a motor vehicle required to be licensed if the 28 selling price of the tender is separately stated. 29 Farm machinery and equipment shall include precision 30 farming equipment that is installed or purchased to be 31 installed on farm machinery and equipment including, but not 32 limited to, tractors, harvesters, sprayers, planters, 33 seeders, or spreaders. Precision farming equipment includes, 34 but is not limited to, soil testing sensors, computers, HB1905 Enrolled -4- LRB9101538PTpk 1 monitors, software, global positioning and mapping systems, 2 and other such equipment. 3 Farm machinery and equipment also includes computers, 4 sensors, software, and related equipment used primarily in 5 the computer-assisted operation of production agriculture 6 facilities, equipment, and activities such as, but not 7 limited to, the collection, monitoring, and correlation of 8 animal and crop data for the purpose of formulating animal 9 diets and agricultural chemicals. This item (11) is exempt 10 from the provisions of Section 3-90. 11 (12) Fuel and petroleum products sold to or used by an 12 air common carrier, certified by the carrier to be used for 13 consumption, shipment, or storage in the conduct of its 14 business as an air common carrier, for a flight destined for 15 or returning from a location or locations outside the United 16 States without regard to previous or subsequent domestic 17 stopovers. 18 (13) Proceeds of mandatory service charges separately 19 stated on customers' bills for the purchase and consumption 20 of food and beverages purchased at retail from a retailer, to 21 the extent that the proceeds of the service charge are in 22 fact turned over as tips or as a substitute for tips to the 23 employees who participate directly in preparing, serving, 24 hosting or cleaning up the food or beverage function with 25 respect to which the service charge is imposed. 26 (14) Oil field exploration, drilling, and production 27 equipment, including (i) rigs and parts of rigs, rotary rigs, 28 cable tool rigs, and workover rigs, (ii) pipe and tubular 29 goods, including casing and drill strings, (iii) pumps and 30 pump-jack units, (iv) storage tanks and flow lines, (v) any 31 individual replacement part for oil field exploration, 32 drilling, and production equipment, and (vi) machinery and 33 equipment purchased for lease; but excluding motor vehicles 34 required to be registered under the Illinois Vehicle Code. HB1905 Enrolled -5- LRB9101538PTpk 1 (15) Photoprocessing machinery and equipment, including 2 repair and replacement parts, both new and used, including 3 that manufactured on special order, certified by the 4 purchaser to be used primarily for photoprocessing, and 5 including photoprocessing machinery and equipment purchased 6 for lease. 7 (16) Coal exploration, mining, offhighway hauling, 8 processing, maintenance, and reclamation equipment, including 9 replacement parts and equipment, and including equipment 10 purchased for lease, but excluding motor vehicles required to 11 be registered under the Illinois Vehicle Code. 12 (17) Distillation machinery and equipment, sold as a 13 unit or kit, assembled or installed by the retailer, 14 certified by the user to be used only for the production of 15 ethyl alcohol that will be used for consumption as motor fuel 16 or as a component of motor fuel for the personal use of the 17 user, and not subject to sale or resale. 18 (18) Manufacturing and assembling machinery and 19 equipment used primarily in the process of manufacturing or 20 assembling tangible personal property for wholesale or retail 21 sale or lease, whether that sale or lease is made directly by 22 the manufacturer or by some other person, whether the 23 materials used in the process are owned by the manufacturer 24 or some other person, or whether that sale or lease is made 25 apart from or as an incident to the seller's engaging in the 26 service occupation of producing machines, tools, dies, jigs, 27 patterns, gauges, or other similar items of no commercial 28 value on special order for a particular purchaser. 29 (19) Personal property delivered to a purchaser or 30 purchaser's donee inside Illinois when the purchase order for 31 that personal property was received by a florist located 32 outside Illinois who has a florist located inside Illinois 33 deliver the personal property. 34 (20) Semen used for artificial insemination of livestock HB1905 Enrolled -6- LRB9101538PTpk 1 for direct agricultural production. 2 (21) Horses, or interests in horses, registered with and 3 meeting the requirements of any of the Arabian Horse Club 4 Registry of America, Appaloosa Horse Club, American Quarter 5 Horse Association, United States Trotting Association, or 6 Jockey Club, as appropriate, used for purposes of breeding or 7 racing for prizes. 8 (22) Computers and communications equipment utilized for 9 any hospital purpose and equipment used in the diagnosis, 10 analysis, or treatment of hospital patients purchased by a 11 lessor who leases the equipment, under a lease of one year or 12 longer executed or in effect at the time the lessor would 13 otherwise be subject to the tax imposed by this Act, to a 14 hospital that has been issued an active tax exemption 15 identification number by the Department under Section 1g of 16 the Retailers' Occupation Tax Act. If the equipment is 17 leased in a manner that does not qualify for this exemption 18 or is used in any other non-exempt manner, the lessor shall 19 be liable for the tax imposed under this Act or the Service 20 Use Tax Act, as the case may be, based on the fair market 21 value of the property at the time the non-qualifying use 22 occurs. No lessor shall collect or attempt to collect an 23 amount (however designated) that purports to reimburse that 24 lessor for the tax imposed by this Act or the Service Use Tax 25 Act, as the case may be, if the tax has not been paid by the 26 lessor. If a lessor improperly collects any such amount from 27 the lessee, the lessee shall have a legal right to claim a 28 refund of that amount from the lessor. If, however, that 29 amount is not refunded to the lessee for any reason, the 30 lessor is liable to pay that amount to the Department. 31 (23) Personal property purchased by a lessor who leases 32 the property, under a lease of one year or longer executed 33 or in effect at the time the lessor would otherwise be 34 subject to the tax imposed by this Act, to a governmental HB1905 Enrolled -7- LRB9101538PTpk 1 body that has been issued an active sales tax exemption 2 identification number by the Department under Section 1g of 3 the Retailers' Occupation Tax Act. If the property is leased 4 in a manner that does not qualify for this exemption or used 5 in any other non-exempt manner, the lessor shall be liable 6 for the tax imposed under this Act or the Service Use Tax 7 Act, as the case may be, based on the fair market value of 8 the property at the time the non-qualifying use occurs. No 9 lessor shall collect or attempt to collect an amount (however 10 designated) that purports to reimburse that lessor for the 11 tax imposed by this Act or the Service Use Tax Act, as the 12 case may be, if the tax has not been paid by the lessor. If 13 a lessor improperly collects any such amount from the lessee, 14 the lessee shall have a legal right to claim a refund of that 15 amount from the lessor. If, however, that amount is not 16 refunded to the lessee for any reason, the lessor is liable 17 to pay that amount to the Department. 18 (24) Beginning with taxable years ending on or after 19 December 31, 1995 and ending with taxable years ending on or 20 before December 31, 2004, personal property that is donated 21 for disaster relief to be used in a State or federally 22 declared disaster area in Illinois or bordering Illinois by a 23 manufacturer or retailer that is registered in this State to 24 a corporation, society, association, foundation, or 25 institution that has been issued a sales tax exemption 26 identification number by the Department that assists victims 27 of the disaster who reside within the declared disaster area. 28 (25) Beginning with taxable years ending on or after 29 December 31, 1995 and ending with taxable years ending on or 30 before December 31, 2004, personal property that is used in 31 the performance of infrastructure repairs in this State, 32 including but not limited to municipal roads and streets, 33 access roads, bridges, sidewalks, waste disposal systems, 34 water and sewer line extensions, water distribution and HB1905 Enrolled -8- LRB9101538PTpk 1 purification facilities, storm water drainage and retention 2 facilities, and sewage treatment facilities, resulting from a 3 State or federally declared disaster in Illinois or bordering 4 Illinois when such repairs are initiated on facilities 5 located in the declared disaster area within 6 months after 6 the disaster. 7 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 8 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 9 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 10 eff. 12-12-97; 90-605, eff. 6-30-98.) 11 Section 10. The Service Use Tax Act is amended by 12 changing Section 3-5 as follows: 13 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 14 Sec. 3-5. Exemptions. Use of the following tangible 15 personal property is exempt from the tax imposed by this Act: 16 (1) Personal property purchased from a corporation, 17 society, association, foundation, institution, or 18 organization, other than a limited liability company, that is 19 organized and operated as a not-for-profit service enterprise 20 for the benefit of persons 65 years of age or older if the 21 personal property was not purchased by the enterprise for the 22 purpose of resale by the enterprise. 23 (2) Personal property purchased by a non-profit Illinois 24 county fair association for use in conducting, operating, or 25 promoting the county fair. 26 (3) Personal property purchased by a not-for-profit 27music or dramaticarts or cultural organization that 28 establishes, by proof required by the Department by rule, 29 that it has received an exemption under Section 501(c)(3) of 30 the Internal Revenue Code and that is organized and operated 31 for the presentation or support of arts or cultural 32 programming, activities, or services. These organizations HB1905 Enrolled -9- LRB9101538PTpk 1 include, but are not limited to, music and dramatic arts 2 organizations such as symphony orchestras and theatrical 3 groups, arts and cultural service organizations, local arts 4 councils, visual arts organizations, and media arts 5 organizationsof live public performances of musical or6theatrical works on a regular basis. 7 (4) Legal tender, currency, medallions, or gold or 8 silver coinage issued by the State of Illinois, the 9 government of the United States of America, or the government 10 of any foreign country, and bullion. 11 (5) Graphic arts machinery and equipment, including 12 repair and replacement parts, both new and used, and 13 including that manufactured on special order or purchased for 14 lease, certified by the purchaser to be used primarily for 15 graphic arts production. 16 (6) Personal property purchased from a teacher-sponsored 17 student organization affiliated with an elementary or 18 secondary school located in Illinois. 19 (7) Farm machinery and equipment, both new and used, 20 including that manufactured on special order, certified by 21 the purchaser to be used primarily for production agriculture 22 or State or federal agricultural programs, including 23 individual replacement parts for the machinery and equipment, 24 including machinery and equipment purchased for lease, and 25 including implements of husbandry defined in Section 1-130 of 26 the Illinois Vehicle Code, farm machinery and agricultural 27 chemical and fertilizer spreaders, and nurse wagons required 28 to be registered under Section 3-809 of the Illinois Vehicle 29 Code, but excluding other motor vehicles required to be 30 registered under the Illinois Vehicle Code. Horticultural 31 polyhouses or hoop houses used for propagating, growing, or 32 overwintering plants shall be considered farm machinery and 33 equipment under this item (7). Agricultural chemical tender 34 tanks and dry boxes shall include units sold separately from HB1905 Enrolled -10- LRB9101538PTpk 1 a motor vehicle required to be licensed and units sold 2 mounted on a motor vehicle required to be licensed if the 3 selling price of the tender is separately stated. 4 Farm machinery and equipment shall include precision 5 farming equipment that is installed or purchased to be 6 installed on farm machinery and equipment including, but not 7 limited to, tractors, harvesters, sprayers, planters, 8 seeders, or spreaders. Precision farming equipment includes, 9 but is not limited to, soil testing sensors, computers, 10 monitors, software, global positioning and mapping systems, 11 and other such equipment. 12 Farm machinery and equipment also includes computers, 13 sensors, software, and related equipment used primarily in 14 the computer-assisted operation of production agriculture 15 facilities, equipment, and activities such as, but not 16 limited to, the collection, monitoring, and correlation of 17 animal and crop data for the purpose of formulating animal 18 diets and agricultural chemicals. This item (7) is exempt 19 from the provisions of Section 3-75. 20 (8) Fuel and petroleum products sold to or used by an 21 air common carrier, certified by the carrier to be used for 22 consumption, shipment, or storage in the conduct of its 23 business as an air common carrier, for a flight destined for 24 or returning from a location or locations outside the United 25 States without regard to previous or subsequent domestic 26 stopovers. 27 (9) Proceeds of mandatory service charges separately 28 stated on customers' bills for the purchase and consumption 29 of food and beverages acquired as an incident to the purchase 30 of a service from a serviceman, to the extent that the 31 proceeds of the service charge are in fact turned over as 32 tips or as a substitute for tips to the employees who 33 participate directly in preparing, serving, hosting or 34 cleaning up the food or beverage function with respect to HB1905 Enrolled -11- LRB9101538PTpk 1 which the service charge is imposed. 2 (10) Oil field exploration, drilling, and production 3 equipment, including (i) rigs and parts of rigs, rotary rigs, 4 cable tool rigs, and workover rigs, (ii) pipe and tubular 5 goods, including casing and drill strings, (iii) pumps and 6 pump-jack units, (iv) storage tanks and flow lines, (v) any 7 individual replacement part for oil field exploration, 8 drilling, and production equipment, and (vi) machinery and 9 equipment purchased for lease; but excluding motor vehicles 10 required to be registered under the Illinois Vehicle Code. 11 (11) Proceeds from the sale of photoprocessing machinery 12 and equipment, including repair and replacement parts, both 13 new and used, including that manufactured on special order, 14 certified by the purchaser to be used primarily for 15 photoprocessing, and including photoprocessing machinery and 16 equipment purchased for lease. 17 (12) Coal exploration, mining, offhighway hauling, 18 processing, maintenance, and reclamation equipment, including 19 replacement parts and equipment, and including equipment 20 purchased for lease, but excluding motor vehicles required to 21 be registered under the Illinois Vehicle Code. 22 (13) Semen used for artificial insemination of livestock 23 for direct agricultural production. 24 (14) Horses, or interests in horses, registered with and 25 meeting the requirements of any of the Arabian Horse Club 26 Registry of America, Appaloosa Horse Club, American Quarter 27 Horse Association, United States Trotting Association, or 28 Jockey Club, as appropriate, used for purposes of breeding or 29 racing for prizes. 30 (15) Computers and communications equipment utilized for 31 any hospital purpose and equipment used in the diagnosis, 32 analysis, or treatment of hospital patients purchased by a 33 lessor who leases the equipment, under a lease of one year or 34 longer executed or in effect at the time the lessor would HB1905 Enrolled -12- LRB9101538PTpk 1 otherwise be subject to the tax imposed by this Act, to a 2 hospital that has been issued an active tax exemption 3 identification number by the Department under Section 1g of 4 the Retailers' Occupation Tax Act. If the equipment is leased 5 in a manner that does not qualify for this exemption or is 6 used in any other non-exempt manner, the lessor shall be 7 liable for the tax imposed under this Act or the Use Tax Act, 8 as the case may be, based on the fair market value of the 9 property at the time the non-qualifying use occurs. No 10 lessor shall collect or attempt to collect an amount (however 11 designated) that purports to reimburse that lessor for the 12 tax imposed by this Act or the Use Tax Act, as the case may 13 be, if the tax has not been paid by the lessor. If a lessor 14 improperly collects any such amount from the lessee, the 15 lessee shall have a legal right to claim a refund of that 16 amount from the lessor. If, however, that amount is not 17 refunded to the lessee for any reason, the lessor is liable 18 to pay that amount to the Department. 19 (16) Personal property purchased by a lessor who leases 20 the property, under a lease of one year or longer executed or 21 in effect at the time the lessor would otherwise be subject 22 to the tax imposed by this Act, to a governmental body that 23 has been issued an active tax exemption identification number 24 by the Department under Section 1g of the Retailers' 25 Occupation Tax Act. If the property is leased in a manner 26 that does not qualify for this exemption or is used in any 27 other non-exempt manner, the lessor shall be liable for the 28 tax imposed under this Act or the Use Tax Act, as the case 29 may be, based on the fair market value of the property at the 30 time the non-qualifying use occurs. No lessor shall collect 31 or attempt to collect an amount (however designated) that 32 purports to reimburse that lessor for the tax imposed by this 33 Act or the Use Tax Act, as the case may be, if the tax has 34 not been paid by the lessor. If a lessor improperly collects HB1905 Enrolled -13- LRB9101538PTpk 1 any such amount from the lessee, the lessee shall have a 2 legal right to claim a refund of that amount from the lessor. 3 If, however, that amount is not refunded to the lessee for 4 any reason, the lessor is liable to pay that amount to the 5 Department. 6 (17) Beginning with taxable years ending on or after 7 December 31, 1995 and ending with taxable years ending on or 8 before December 31, 2004, personal property that is donated 9 for disaster relief to be used in a State or federally 10 declared disaster area in Illinois or bordering Illinois by a 11 manufacturer or retailer that is registered in this State to 12 a corporation, society, association, foundation, or 13 institution that has been issued a sales tax exemption 14 identification number by the Department that assists victims 15 of the disaster who reside within the declared disaster area. 16 (18) Beginning with taxable years ending on or after 17 December 31, 1995 and ending with taxable years ending on or 18 before December 31, 2004, personal property that is used in 19 the performance of infrastructure repairs in this State, 20 including but not limited to municipal roads and streets, 21 access roads, bridges, sidewalks, waste disposal systems, 22 water and sewer line extensions, water distribution and 23 purification facilities, storm water drainage and retention 24 facilities, and sewage treatment facilities, resulting from a 25 State or federally declared disaster in Illinois or bordering 26 Illinois when such repairs are initiated on facilities 27 located in the declared disaster area within 6 months after 28 the disaster. 29 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 30 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 31 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 32 eff. 12-12-97; 90-605, eff. 6-30-98.) 33 Section 15. The Service Occupation Tax Act is amended by HB1905 Enrolled -14- LRB9101538PTpk 1 changing Section 3-5 as follows: 2 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 3 Sec. 3-5. Exemptions. The following tangible personal 4 property is exempt from the tax imposed by this Act: 5 (1) Personal property sold by a corporation, society, 6 association, foundation, institution, or organization, other 7 than a limited liability company, that is organized and 8 operated as a not-for-profit service enterprise for the 9 benefit of persons 65 years of age or older if the personal 10 property was not purchased by the enterprise for the purpose 11 of resale by the enterprise. 12 (2) Personal property purchased by a not-for-profit 13 Illinois county fair association for use in conducting, 14 operating, or promoting the county fair. 15 (3) Personal property purchased by any not-for-profit 16music or dramaticarts or cultural organization that 17 establishes, by proof required by the Department by rule, 18 that it has received an exemption under Section 501(c)(3) of 19 the Internal Revenue Code and that is organized and operated 20 for the presentation or support of arts or cultural 21 programming, activities, or services. These organizations 22 include, but are not limited to, music and dramatic arts 23 organizations such as symphony orchestras and theatrical 24 groups, arts and cultural service organizations, local arts 25 councils, visual arts organizations, and media arts 26 organizationsof live public performances of musical or27theatrical works on a regular basis. 28 (4) Legal tender, currency, medallions, or gold or 29 silver coinage issued by the State of Illinois, the 30 government of the United States of America, or the government 31 of any foreign country, and bullion. 32 (5) Graphic arts machinery and equipment, including 33 repair and replacement parts, both new and used, and HB1905 Enrolled -15- LRB9101538PTpk 1 including that manufactured on special order or purchased for 2 lease, certified by the purchaser to be used primarily for 3 graphic arts production. 4 (6) Personal property sold by a teacher-sponsored 5 student organization affiliated with an elementary or 6 secondary school located in Illinois. 7 (7) Farm machinery and equipment, both new and used, 8 including that manufactured on special order, certified by 9 the purchaser to be used primarily for production agriculture 10 or State or federal agricultural programs, including 11 individual replacement parts for the machinery and equipment, 12 including machinery and equipment purchased for lease, and 13 including implements of husbandry defined in Section 1-130 of 14 the Illinois Vehicle Code, farm machinery and agricultural 15 chemical and fertilizer spreaders, and nurse wagons required 16 to be registered under Section 3-809 of the Illinois Vehicle 17 Code, but excluding other motor vehicles required to be 18 registered under the Illinois Vehicle Code. Horticultural 19 polyhouses or hoop houses used for propagating, growing, or 20 overwintering plants shall be considered farm machinery and 21 equipment under this item (7). Agricultural chemical tender 22 tanks and dry boxes shall include units sold separately from 23 a motor vehicle required to be licensed and units sold 24 mounted on a motor vehicle required to be licensed if the 25 selling price of the tender is separately stated. 26 Farm machinery and equipment shall include precision 27 farming equipment that is installed or purchased to be 28 installed on farm machinery and equipment including, but not 29 limited to, tractors, harvesters, sprayers, planters, 30 seeders, or spreaders. Precision farming equipment includes, 31 but is not limited to, soil testing sensors, computers, 32 monitors, software, global positioning and mapping systems, 33 and other such equipment. 34 Farm machinery and equipment also includes computers, HB1905 Enrolled -16- LRB9101538PTpk 1 sensors, software, and related equipment used primarily in 2 the computer-assisted operation of production agriculture 3 facilities, equipment, and activities such as, but not 4 limited to, the collection, monitoring, and correlation of 5 animal and crop data for the purpose of formulating animal 6 diets and agricultural chemicals. This item (7) is exempt 7 from the provisions of Section 3-75. 8 (8) Fuel and petroleum products sold to or used by an 9 air common carrier, certified by the carrier to be used for 10 consumption, shipment, or storage in the conduct of its 11 business as an air common carrier, for a flight destined for 12 or returning from a location or locations outside the United 13 States without regard to previous or subsequent domestic 14 stopovers. 15 (9) Proceeds of mandatory service charges separately 16 stated on customers' bills for the purchase and consumption 17 of food and beverages, to the extent that the proceeds of the 18 service charge are in fact turned over as tips or as a 19 substitute for tips to the employees who participate directly 20 in preparing, serving, hosting or cleaning up the food or 21 beverage function with respect to which the service charge is 22 imposed. 23 (10) Oil field exploration, drilling, and production 24 equipment, including (i) rigs and parts of rigs, rotary rigs, 25 cable tool rigs, and workover rigs, (ii) pipe and tubular 26 goods, including casing and drill strings, (iii) pumps and 27 pump-jack units, (iv) storage tanks and flow lines, (v) any 28 individual replacement part for oil field exploration, 29 drilling, and production equipment, and (vi) machinery and 30 equipment purchased for lease; but excluding motor vehicles 31 required to be registered under the Illinois Vehicle Code. 32 (11) Photoprocessing machinery and equipment, including 33 repair and replacement parts, both new and used, including 34 that manufactured on special order, certified by the HB1905 Enrolled -17- LRB9101538PTpk 1 purchaser to be used primarily for photoprocessing, and 2 including photoprocessing machinery and equipment purchased 3 for lease. 4 (12) Coal exploration, mining, offhighway hauling, 5 processing, maintenance, and reclamation equipment, including 6 replacement parts and equipment, and including equipment 7 purchased for lease, but excluding motor vehicles required to 8 be registered under the Illinois Vehicle Code. 9 (13) Food for human consumption that is to be consumed 10 off the premises where it is sold (other than alcoholic 11 beverages, soft drinks and food that has been prepared for 12 immediate consumption) and prescription and non-prescription 13 medicines, drugs, medical appliances, and insulin, urine 14 testing materials, syringes, and needles used by diabetics, 15 for human use, when purchased for use by a person receiving 16 medical assistance under Article 5 of the Illinois Public Aid 17 Code who resides in a licensed long-term care facility, as 18 defined in the Nursing Home Care Act. 19 (14) Semen used for artificial insemination of livestock 20 for direct agricultural production. 21 (15) Horses, or interests in horses, registered with and 22 meeting the requirements of any of the Arabian Horse Club 23 Registry of America, Appaloosa Horse Club, American Quarter 24 Horse Association, United States Trotting Association, or 25 Jockey Club, as appropriate, used for purposes of breeding or 26 racing for prizes. 27 (16) Computers and communications equipment utilized for 28 any hospital purpose and equipment used in the diagnosis, 29 analysis, or treatment of hospital patients sold to a lessor 30 who leases the equipment, under a lease of one year or longer 31 executed or in effect at the time of the purchase, to a 32 hospital that has been issued an active tax exemption 33 identification number by the Department under Section 1g of 34 the Retailers' Occupation Tax Act. HB1905 Enrolled -18- LRB9101538PTpk 1 (17) Personal property sold to a lessor who leases the 2 property, under a lease of one year or longer executed or in 3 effect at the time of the purchase, to a governmental body 4 that has been issued an active tax exemption identification 5 number by the Department under Section 1g of the Retailers' 6 Occupation Tax Act. 7 (18) 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 (19) 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. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 31 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 32 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 33 eff. 12-12-97; 90-605, eff. 6-30-98.) HB1905 Enrolled -19- LRB9101538PTpk 1 Section 20. The Retailers' Occupation Tax Act is amended 2 by changing Section 2-5 as follows: 3 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 4 Sec. 2-5. Exemptions. Gross receipts from proceeds from 5 the sale of the following tangible personal property are 6 exempt from the tax imposed by this Act: 7 (1) Farm chemicals. 8 (2) Farm machinery and equipment, both new and used, 9 including that manufactured on special order, certified by 10 the purchaser to be used primarily for production agriculture 11 or State or federal agricultural programs, including 12 individual replacement parts for the machinery and equipment, 13 including machinery and equipment purchased for lease, and 14 including implements of husbandry defined in Section 1-130 of 15 the Illinois Vehicle Code, farm machinery and agricultural 16 chemical and fertilizer spreaders, and nurse wagons required 17 to be registered under Section 3-809 of the Illinois Vehicle 18 Code, but excluding other motor vehicles required to be 19 registered under the Illinois Vehicle Code. Horticultural 20 polyhouses or hoop houses used for propagating, growing, or 21 overwintering plants shall be considered farm machinery and 22 equipment under this item (2). Agricultural chemical tender 23 tanks and dry boxes shall include units sold separately from 24 a motor vehicle required to be licensed and units sold 25 mounted on a motor vehicle required to be licensed, if the 26 selling price of the tender is separately stated. 27 Farm machinery and equipment shall include precision 28 farming equipment that is installed or purchased to be 29 installed on farm machinery and equipment including, but not 30 limited to, tractors, harvesters, sprayers, planters, 31 seeders, or spreaders. Precision farming equipment includes, 32 but is not limited to, soil testing sensors, computers, 33 monitors, software, global positioning and mapping systems, HB1905 Enrolled -20- LRB9101538PTpk 1 and other such equipment. 2 Farm machinery and equipment also includes computers, 3 sensors, software, and related equipment used primarily in 4 the computer-assisted operation of production agriculture 5 facilities, equipment, and activities such as, but not 6 limited to, the collection, monitoring, and correlation of 7 animal and crop data for the purpose of formulating animal 8 diets and agricultural chemicals. This item (7) is exempt 9 from the provisions of Section 3-75. 10 (3) Distillation machinery and equipment, sold as a unit 11 or kit, assembled or installed by the retailer, certified by 12 the user to be used only for the production of ethyl alcohol 13 that will be used for consumption as motor fuel or as a 14 component of motor fuel for the personal use of the user, and 15 not subject to sale or resale. 16 (4) Graphic arts machinery and equipment, including 17 repair and replacement parts, both new and used, and 18 including that manufactured on special order or purchased for 19 lease, certified by the purchaser to be used primarily for 20 graphic arts production. 21 (5) A motor vehicle of the first division, a motor 22 vehicle of the second division that is a self-contained motor 23 vehicle designed or permanently converted to provide living 24 quarters for recreational, camping, or travel use, with 25 direct walk through access to the living quarters from the 26 driver's seat, or a motor vehicle of the second division that 27 is of the van configuration designed for the transportation 28 of not less than 7 nor more than 16 passengers, as defined in 29 Section 1-146 of the Illinois Vehicle Code, that is used for 30 automobile renting, as defined in the Automobile Renting 31 Occupation and Use Tax Act. 32 (6) Personal property sold by a teacher-sponsored 33 student organization affiliated with an elementary or 34 secondary school located in Illinois. HB1905 Enrolled -21- LRB9101538PTpk 1 (7) Proceeds of that portion of the selling price of a 2 passenger car the sale of which is subject to the Replacement 3 Vehicle Tax. 4 (8) Personal property sold to an Illinois county fair 5 association for use in conducting, operating, or promoting 6 the county fair. 7 (9) Personal property sold to a not-for-profitmusic or8dramaticarts or cultural organization that establishes, by 9 proof required by the Department by rule, that it has 10 received an exemption under Section 501(c) (3) of the 11 Internal Revenue Code and that is organized and operated for 12 the presentation or support of arts or cultural programming, 13 activities, or services. These organizations include, but 14 are not limited to, music and dramatic arts organizations 15 such as symphony orchestras and theatrical groups, arts and 16 cultural service organizations, local arts councils, visual 17 arts organizations, and media arts organizationsof live18public performances of musical or theatrical works on a19regular basis. 20 (10) Personal property sold by a corporation, society, 21 association, foundation, institution, or organization, other 22 than a limited liability company, that is organized and 23 operated as a not-for-profit service enterprise for the 24 benefit of persons 65 years of age or older if the personal 25 property was not purchased by the enterprise for the purpose 26 of resale by the enterprise. 27 (11) Personal property sold to a governmental body, to a 28 corporation, society, association, foundation, or institution 29 organized and operated exclusively for charitable, religious, 30 or educational purposes, or to a not-for-profit corporation, 31 society, association, foundation, institution, or 32 organization that has no compensated officers or employees 33 and that is organized and operated primarily for the 34 recreation of persons 55 years of age or older. A limited HB1905 Enrolled -22- LRB9101538PTpk 1 liability company may qualify for the exemption under this 2 paragraph only if the limited liability company is organized 3 and operated exclusively for educational purposes. On and 4 after July 1, 1987, however, no entity otherwise eligible for 5 this exemption shall make tax-free purchases unless it has an 6 active identification number issued by the Department. 7 (12) Personal property sold to interstate carriers for 8 hire for use as rolling stock moving in interstate commerce 9 or to lessors under leases of one year or longer executed or 10 in effect at the time of purchase by interstate carriers for 11 hire for use as rolling stock moving in interstate commerce 12 and equipment operated by a telecommunications provider, 13 licensed as a common carrier by the Federal Communications 14 Commission, which is permanently installed in or affixed to 15 aircraft moving in interstate commerce. 16 (13) Proceeds from sales to owners, lessors, or shippers 17 of tangible personal property that is utilized by interstate 18 carriers for hire for use as rolling stock moving in 19 interstate commerce and equipment operated by a 20 telecommunications provider, licensed as a common carrier by 21 the Federal Communications Commission, which is permanently 22 installed in or affixed to aircraft moving in interstate 23 commerce. 24 (14) Machinery and equipment that will be used by the 25 purchaser, or a lessee of the purchaser, primarily in the 26 process of manufacturing or assembling tangible personal 27 property for wholesale or retail sale or lease, whether the 28 sale or lease is made directly by the manufacturer or by some 29 other person, whether the materials used in the process are 30 owned by the manufacturer or some other person, or whether 31 the sale or lease is made apart from or as an incident to the 32 seller's engaging in the service occupation of producing 33 machines, tools, dies, jigs, patterns, gauges, or other 34 similar items of no commercial value on special order for a HB1905 Enrolled -23- LRB9101538PTpk 1 particular purchaser. 2 (15) Proceeds of mandatory service charges separately 3 stated on customers' bills for purchase and consumption of 4 food and beverages, to the extent that the proceeds of the 5 service charge are in fact turned over as tips or as a 6 substitute for tips to the employees who participate directly 7 in preparing, serving, hosting or cleaning up the food or 8 beverage function with respect to which the service charge is 9 imposed. 10 (16) Petroleum products sold to a purchaser if the 11 seller is prohibited by federal law from charging tax to the 12 purchaser. 13 (17) Tangible personal property sold to a common carrier 14 by rail or motor that receives the physical possession of the 15 property in Illinois and that transports the property, or 16 shares with another common carrier in the transportation of 17 the property, out of Illinois on a standard uniform bill of 18 lading showing the seller of the property as the shipper or 19 consignor of the property to a destination outside Illinois, 20 for use outside Illinois. 21 (18) Legal tender, currency, medallions, or gold or 22 silver coinage issued by the State of Illinois, the 23 government of the United States of America, or the government 24 of any foreign country, and bullion. 25 (19) Oil field exploration, drilling, and production 26 equipment, including (i) rigs and parts of rigs, rotary rigs, 27 cable tool rigs, and workover rigs, (ii) pipe and tubular 28 goods, including casing and drill strings, (iii) pumps and 29 pump-jack units, (iv) storage tanks and flow lines, (v) any 30 individual replacement part for oil field exploration, 31 drilling, and production equipment, and (vi) machinery and 32 equipment purchased for lease; but excluding motor vehicles 33 required to be registered under the Illinois Vehicle Code. 34 (20) Photoprocessing machinery and equipment, including HB1905 Enrolled -24- LRB9101538PTpk 1 repair and replacement parts, both new and used, including 2 that manufactured on special order, certified by the 3 purchaser to be used primarily for photoprocessing, and 4 including photoprocessing machinery and equipment purchased 5 for lease. 6 (21) Coal exploration, mining, offhighway hauling, 7 processing, maintenance, and reclamation equipment, including 8 replacement parts and equipment, and including equipment 9 purchased for lease, but excluding motor vehicles required to 10 be registered under the Illinois Vehicle Code. 11 (22) Fuel and petroleum products sold to or used by an 12 air carrier, certified by the carrier to be used for 13 consumption, shipment, or storage in the conduct of its 14 business as an air common carrier, for a flight destined for 15 or returning from a location or locations outside the United 16 States without regard to previous or subsequent domestic 17 stopovers. 18 (23) A transaction in which the purchase order is 19 received by a florist who is located outside Illinois, but 20 who has a florist located in Illinois deliver the property to 21 the purchaser or the purchaser's donee in Illinois. 22 (24) Fuel consumed or used in the operation of ships, 23 barges, or vessels that are used primarily in or for the 24 transportation of property or the conveyance of persons for 25 hire on rivers bordering on this State if the fuel is 26 delivered by the seller to the purchaser's barge, ship, or 27 vessel while it is afloat upon that bordering river. 28 (25) A motor vehicle sold in this State to a nonresident 29 even though the motor vehicle is delivered to the nonresident 30 in this State, if the motor vehicle is not to be titled in 31 this State, and if a driveaway decal permit is issued to the 32 motor vehicle as provided in Section 3-603 of the Illinois 33 Vehicle Code or if the nonresident purchaser has vehicle 34 registration plates to transfer to the motor vehicle upon HB1905 Enrolled -25- LRB9101538PTpk 1 returning to his or her home state. The issuance of the 2 driveaway decal permit or having the out-of-state 3 registration plates to be transferred is prima facie evidence 4 that the motor vehicle will not be titled in this State. 5 (26) Semen used for artificial insemination of livestock 6 for direct agricultural production. 7 (27) Horses, or interests in horses, registered with and 8 meeting the requirements of any of the Arabian Horse Club 9 Registry of America, Appaloosa Horse Club, American Quarter 10 Horse Association, United States Trotting Association, or 11 Jockey Club, as appropriate, used for purposes of breeding or 12 racing for prizes. 13 (28) Computers and communications equipment utilized for 14 any hospital purpose and equipment used in the diagnosis, 15 analysis, or treatment of hospital patients sold to a lessor 16 who leases the equipment, under a lease of one year or longer 17 executed or in effect at the time of the purchase, to a 18 hospital that has been issued an active tax exemption 19 identification number by the Department under Section 1g of 20 this Act. 21 (29) Personal property sold to a lessor who leases the 22 property, under a lease of one year or longer executed or in 23 effect at the time of the purchase, to a governmental body 24 that has been issued an active tax exemption identification 25 number by the Department under Section 1g of this Act. 26 (30) Beginning with taxable years ending on or after 27 December 31, 1995 and ending with taxable years ending on or 28 before December 31, 2004, personal property that is donated 29 for disaster relief to be used in a State or federally 30 declared disaster area in Illinois or bordering Illinois by a 31 manufacturer or retailer that is registered in this State to 32 a corporation, society, association, foundation, or 33 institution that has been issued a sales tax exemption 34 identification number by the Department that assists victims HB1905 Enrolled -26- LRB9101538PTpk 1 of the disaster who reside within the declared disaster area. 2 (31) Beginning with taxable years ending on or after 3 December 31, 1995 and ending with taxable years ending on or 4 before December 31, 2004, personal property that is used in 5 the performance of infrastructure repairs in this State, 6 including but not limited to municipal roads and streets, 7 access roads, bridges, sidewalks, waste disposal systems, 8 water and sewer line extensions, water distribution and 9 purification facilities, storm water drainage and retention 10 facilities, and sewage treatment facilities, resulting from a 11 State or federally declared disaster in Illinois or bordering 12 Illinois when such repairs are initiated on facilities 13 located in the declared disaster area within 6 months after 14 the disaster. 15 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 16 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 17 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519, 18 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.) 19 Section 99. Effective date. This Act takes effect upon 20 becoming law.