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91_SB1194
LRB9105936LDpkC
1 AN ACT to preserve live horse racing in this State,
2 amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Use Tax Act is amended by changing
6 Section 3-5 as follows:
7 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
8 Sec. 3-5. Exemptions. Use of the following tangible
9 personal property is exempt from the tax imposed by this Act:
10 (1) Personal property purchased from a corporation,
11 society, association, foundation, institution, or
12 organization, other than a limited liability company, that is
13 organized and operated as a not-for-profit service enterprise
14 for the benefit of persons 65 years of age or older if the
15 personal property was not purchased by the enterprise for the
16 purpose of resale by the enterprise.
17 (2) Personal property purchased by a not-for-profit
18 Illinois county fair association for use in conducting,
19 operating, or promoting the county fair.
20 (3) Personal property purchased by a not-for-profit
21 music or dramatic arts organization that establishes, by
22 proof required by the Department by rule, that it has
23 received an exemption under Section 501(c)(3) of the Internal
24 Revenue Code and that is organized and operated for the
25 presentation of live public performances of musical or
26 theatrical works on a regular basis.
27 (4) Personal property purchased by a governmental body,
28 by a corporation, society, association, foundation, or
29 institution organized and operated exclusively for
30 charitable, religious, or educational purposes, or by a
31 not-for-profit corporation, society, association, foundation,
-2- LRB9105936LDpkC
1 institution, or organization that has no compensated officers
2 or employees and that is organized and operated primarily for
3 the recreation of persons 55 years of age or older. A limited
4 liability company may qualify for the exemption under this
5 paragraph only if the limited liability company is organized
6 and operated exclusively for educational purposes. On and
7 after July 1, 1987, however, no entity otherwise eligible for
8 this exemption shall make tax-free purchases unless it has an
9 active exemption identification number issued by the
10 Department.
11 (5) A passenger car that is a replacement vehicle to the
12 extent that the purchase price of the car is subject to the
13 Replacement Vehicle Tax.
14 (6) Graphic arts machinery and equipment, including
15 repair and replacement parts, both new and used, and
16 including that manufactured on special order, certified by
17 the purchaser to be used primarily for graphic arts
18 production, and including machinery and equipment purchased
19 for lease.
20 (7) Farm chemicals.
21 (8) 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 (9) Personal property purchased from a teacher-sponsored
26 student organization affiliated with an elementary or
27 secondary school located in Illinois.
28 (10) A motor vehicle of the first division, a motor
29 vehicle of the second division that is a self-contained motor
30 vehicle designed or permanently converted to provide living
31 quarters for recreational, camping, or travel use, with
32 direct walk through to the living quarters from the driver's
33 seat, or a motor vehicle of the second division that is of
34 the van configuration designed for the transportation of not
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1 less than 7 nor more than 16 passengers, as defined in
2 Section 1-146 of the Illinois Vehicle Code, that is used for
3 automobile renting, as defined in the Automobile Renting
4 Occupation and Use Tax Act.
5 (11) Farm machinery and equipment, both new and used,
6 including that manufactured on special order, certified by
7 the purchaser to be used primarily for production agriculture
8 or State or federal agricultural programs, including
9 individual replacement parts for the machinery and equipment,
10 including machinery and equipment purchased for lease, and
11 including implements of husbandry defined in Section 1-130 of
12 the Illinois Vehicle Code, farm machinery and agricultural
13 chemical and fertilizer spreaders, and nurse wagons required
14 to be registered under Section 3-809 of the Illinois Vehicle
15 Code, but excluding other motor vehicles required to be
16 registered under the Illinois Vehicle Code. Horticultural
17 polyhouses or hoop houses used for propagating, growing, or
18 overwintering plants shall be considered farm machinery and
19 equipment under this item (11). Agricultural chemical tender
20 tanks and dry boxes shall include units sold separately from
21 a motor vehicle required to be licensed and units sold
22 mounted on a motor vehicle required to be licensed if the
23 selling price of the tender is separately stated.
24 Farm machinery and equipment shall include precision
25 farming equipment that is installed or purchased to be
26 installed on farm machinery and equipment including, but not
27 limited to, tractors, harvesters, sprayers, planters,
28 seeders, or spreaders. Precision farming equipment includes,
29 but is not limited to, soil testing sensors, computers,
30 monitors, software, global positioning and mapping systems,
31 and other such equipment.
32 Farm machinery and equipment also includes computers,
33 sensors, software, and related equipment used primarily in
34 the computer-assisted operation of production agriculture
-4- LRB9105936LDpkC
1 facilities, equipment, and activities such as, but not
2 limited to, the collection, monitoring, and correlation of
3 animal and crop data for the purpose of formulating animal
4 diets and agricultural chemicals. This item (11) is exempt
5 from the provisions of Section 3-90.
6 (12) Fuel and petroleum products sold to or used by an
7 air common carrier, certified by the carrier to be used for
8 consumption, shipment, or storage in the conduct of its
9 business as an air common carrier, for a flight destined for
10 or returning from a location or locations outside the United
11 States without regard to previous or subsequent domestic
12 stopovers.
13 (13) Proceeds of mandatory service charges separately
14 stated on customers' bills for the purchase and consumption
15 of food and beverages purchased at retail from a retailer, to
16 the extent that the proceeds of the service charge are in
17 fact turned over as tips or as a substitute for tips to the
18 employees who participate directly in preparing, serving,
19 hosting or cleaning up the food or beverage function with
20 respect to which the service charge is imposed.
21 (14) Oil field exploration, drilling, and production
22 equipment, including (i) rigs and parts of rigs, rotary rigs,
23 cable tool rigs, and workover rigs, (ii) pipe and tubular
24 goods, including casing and drill strings, (iii) pumps and
25 pump-jack units, (iv) storage tanks and flow lines, (v) any
26 individual replacement part for oil field exploration,
27 drilling, and production equipment, and (vi) machinery and
28 equipment purchased for lease; but excluding motor vehicles
29 required to be registered under the Illinois Vehicle Code.
30 (15) Photoprocessing machinery and equipment, including
31 repair and replacement parts, both new and used, including
32 that manufactured on special order, certified by the
33 purchaser to be used primarily for photoprocessing, and
34 including photoprocessing machinery and equipment purchased
-5- LRB9105936LDpkC
1 for lease.
2 (16) Coal exploration, mining, offhighway hauling,
3 processing, maintenance, and reclamation equipment, including
4 replacement parts and equipment, and including equipment
5 purchased for lease, but excluding motor vehicles required to
6 be registered under the Illinois Vehicle Code.
7 (17) Distillation machinery and equipment, sold as a
8 unit or kit, assembled or installed by the retailer,
9 certified by the user to be used only for the production of
10 ethyl alcohol that will be used for consumption as motor fuel
11 or as a component of motor fuel for the personal use of the
12 user, and not subject to sale or resale.
13 (18) Manufacturing and assembling machinery and
14 equipment used primarily in the process of manufacturing or
15 assembling tangible personal property for wholesale or retail
16 sale or lease, whether that sale or lease is made directly by
17 the manufacturer or by some other person, whether the
18 materials used in the process are owned by the manufacturer
19 or some other person, or whether that sale or lease is made
20 apart from or as an incident to the seller's engaging in the
21 service occupation of producing machines, tools, dies, jigs,
22 patterns, gauges, or other similar items of no commercial
23 value on special order for a particular purchaser.
24 (19) Personal property delivered to a purchaser or
25 purchaser's donee inside Illinois when the purchase order for
26 that personal property was received by a florist located
27 outside Illinois who has a florist located inside Illinois
28 deliver the personal property.
29 (20) Semen used for artificial insemination of livestock
30 for direct agricultural production.
31 (21) Horses, or interests in horses, registered with and
32 meeting the requirements of any of the Arabian Horse Club
33 Registry of America, Appaloosa Horse Club, American Quarter
34 Horse Association, United States Trotting Association, or
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1 Jockey Club, as appropriate, used for purposes of breeding or
2 racing for prizes and the feed, supplies, and equipment used
3 to raise those horses by the owners, breeders, and trainers
4 of the horses.
5 (22) Computers and communications equipment utilized for
6 any hospital purpose and equipment used in the diagnosis,
7 analysis, or treatment of hospital patients purchased by a
8 lessor who leases the equipment, under a lease of one year or
9 longer executed or in effect at the time the lessor would
10 otherwise be subject to the tax imposed by this Act, to a
11 hospital that has been issued an active tax exemption
12 identification number by the Department under Section 1g of
13 the Retailers' Occupation Tax Act. If the equipment is
14 leased in a manner that does not qualify for this exemption
15 or is used in any other non-exempt manner, the lessor shall
16 be liable for the tax imposed under this Act or the Service
17 Use Tax Act, as the case may be, based on the fair market
18 value of the property at the time the non-qualifying use
19 occurs. No lessor shall collect or attempt to collect an
20 amount (however designated) that purports to reimburse that
21 lessor for the tax imposed by this Act or the Service Use Tax
22 Act, as the case may be, if the tax has not been paid by the
23 lessor. If a lessor improperly collects any such amount from
24 the lessee, the lessee shall have a legal right to claim a
25 refund of that amount from the lessor. If, however, that
26 amount is not refunded to the lessee for any reason, the
27 lessor is liable to pay that amount to the Department.
28 (23) Personal property purchased by a lessor who leases
29 the property, under a lease of one year or longer executed
30 or in effect at the time the lessor would otherwise be
31 subject to the tax imposed by this Act, to a governmental
32 body that has been issued an active sales tax exemption
33 identification number by the Department under Section 1g of
34 the Retailers' Occupation Tax Act. If the property is leased
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1 in a manner that does not qualify for this exemption or used
2 in any other non-exempt manner, the lessor shall be liable
3 for the tax imposed under this Act or the Service Use Tax
4 Act, as the case may be, based on the fair market value of
5 the property at the time the non-qualifying use occurs. No
6 lessor shall collect or attempt to collect an amount (however
7 designated) that purports to reimburse that lessor for the
8 tax imposed by this Act or the Service Use Tax Act, as the
9 case may be, if the tax has not been paid by the lessor. If
10 a lessor improperly collects any such amount from the lessee,
11 the lessee shall have a legal right to claim a refund of that
12 amount from the lessor. If, however, that amount is not
13 refunded to the lessee for any reason, the lessor is liable
14 to pay that amount to the Department.
15 (24) Beginning with taxable years ending on or after
16 December 31, 1995 and ending with taxable years ending on or
17 before December 31, 2004, personal property that is donated
18 for disaster relief to be used in a State or federally
19 declared disaster area in Illinois or bordering Illinois by a
20 manufacturer or retailer that is registered in this State to
21 a corporation, society, association, foundation, or
22 institution that has been issued a sales tax exemption
23 identification number by the Department that assists victims
24 of the disaster who reside within the declared disaster area.
25 (25) Beginning with taxable years ending on or after
26 December 31, 1995 and ending with taxable years ending on or
27 before December 31, 2004, personal property that is used in
28 the performance of infrastructure repairs in this State,
29 including but not limited to municipal roads and streets,
30 access roads, bridges, sidewalks, waste disposal systems,
31 water and sewer line extensions, water distribution and
32 purification facilities, storm water drainage and retention
33 facilities, and sewage treatment facilities, resulting from a
34 State or federally declared disaster in Illinois or bordering
-8- LRB9105936LDpkC
1 Illinois when such repairs are initiated on facilities
2 located in the declared disaster area within 6 months after
3 the disaster.
4 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
5 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
6 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
7 eff. 12-12-97; 90-605, eff. 6-30-98.)
8 Section 10. The Service Use Tax Act is amended by
9 changing Section 3-5 as follows:
10 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
11 Sec. 3-5. Exemptions. Use of the following tangible
12 personal property is exempt from the tax imposed by this Act:
13 (1) Personal property purchased from a corporation,
14 society, association, foundation, institution, or
15 organization, other than a limited liability company, that is
16 organized and operated as a not-for-profit service enterprise
17 for the benefit of persons 65 years of age or older if the
18 personal property was not purchased by the enterprise for the
19 purpose of resale by the enterprise.
20 (2) Personal property purchased by a non-profit Illinois
21 county fair association for use in conducting, operating, or
22 promoting the county fair.
23 (3) Personal property purchased by a not-for-profit
24 music or dramatic arts organization that establishes, by
25 proof required by the Department by rule, that it has
26 received an exemption under Section 501(c)(3) of the Internal
27 Revenue Code and that is organized and operated for the
28 presentation of live public performances of musical or
29 theatrical works on a regular basis.
30 (4) Legal tender, currency, medallions, or gold or
31 silver coinage issued by the State of Illinois, the
32 government of the United States of America, or the government
-9- LRB9105936LDpkC
1 of any foreign country, and bullion.
2 (5) Graphic arts machinery and equipment, including
3 repair and replacement parts, both new and used, and
4 including that manufactured on special order or purchased for
5 lease, certified by the purchaser to be used primarily for
6 graphic arts production.
7 (6) Personal property purchased from a teacher-sponsored
8 student organization affiliated with an elementary or
9 secondary school located in Illinois.
10 (7) 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 (7). 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,
-10- LRB9105936LDpkC
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 (7) is exempt
10 from the provisions of Section 3-75.
11 (8) 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 (9) Proceeds of mandatory service charges separately
19 stated on customers' bills for the purchase and consumption
20 of food and beverages acquired as an incident to the purchase
21 of a service from a serviceman, to the extent that the
22 proceeds of the service charge are in fact turned over as
23 tips or as a substitute for tips to the employees who
24 participate directly in preparing, serving, hosting or
25 cleaning up the food or beverage function with respect to
26 which the service charge is imposed.
27 (10) Oil field exploration, drilling, and production
28 equipment, including (i) rigs and parts of rigs, rotary rigs,
29 cable tool rigs, and workover rigs, (ii) pipe and tubular
30 goods, including casing and drill strings, (iii) pumps and
31 pump-jack units, (iv) storage tanks and flow lines, (v) any
32 individual replacement part for oil field exploration,
33 drilling, and production equipment, and (vi) machinery and
34 equipment purchased for lease; but excluding motor vehicles
-11- LRB9105936LDpkC
1 required to be registered under the Illinois Vehicle Code.
2 (11) Proceeds from the sale of photoprocessing machinery
3 and equipment, including repair and replacement parts, both
4 new and used, including that manufactured on special order,
5 certified by the purchaser to be used primarily for
6 photoprocessing, and including photoprocessing machinery and
7 equipment purchased for lease.
8 (12) Coal exploration, mining, offhighway hauling,
9 processing, maintenance, and reclamation equipment, including
10 replacement parts and equipment, and including equipment
11 purchased for lease, but excluding motor vehicles required to
12 be registered under the Illinois Vehicle Code.
13 (13) Semen used for artificial insemination of livestock
14 for direct agricultural production.
15 (14) Horses, or interests in horses, registered with and
16 meeting the requirements of any of the Arabian Horse Club
17 Registry of America, Appaloosa Horse Club, American Quarter
18 Horse Association, United States Trotting Association, or
19 Jockey Club, as appropriate, used for purposes of breeding or
20 racing for prizes and the feed, supplies, and equipment used
21 to raise those horses by the owners, breeders, and trainers
22 of the horses.
23 (15) Computers and communications equipment utilized for
24 any hospital purpose and equipment used in the diagnosis,
25 analysis, or treatment of hospital patients purchased by a
26 lessor who leases the equipment, under a lease of one year or
27 longer executed or in effect at the time the lessor would
28 otherwise be subject to the tax imposed by this Act, to a
29 hospital that has been issued an active tax exemption
30 identification number by the Department under Section 1g of
31 the Retailers' Occupation Tax Act. If the equipment is leased
32 in a manner that does not qualify for this exemption or is
33 used in any other non-exempt manner, the lessor shall be
34 liable for the tax imposed under this Act or the Use Tax Act,
-12- LRB9105936LDpkC
1 as the case may be, based on the fair market value of the
2 property at the time the non-qualifying use occurs. No
3 lessor shall collect or attempt to collect an amount (however
4 designated) that purports to reimburse that lessor for the
5 tax imposed by this Act or the Use Tax Act, as the case may
6 be, if the tax has not been paid by the lessor. If a lessor
7 improperly collects any such amount from the lessee, the
8 lessee shall have a legal right to claim a refund of that
9 amount from the lessor. If, however, that amount is not
10 refunded to the lessee for any reason, the lessor is liable
11 to pay that amount to the Department.
12 (16) Personal property purchased by a lessor who leases
13 the property, under a lease of one year or longer executed or
14 in effect at the time the lessor would otherwise be subject
15 to the tax imposed by this Act, to a governmental body that
16 has been issued an active tax exemption identification number
17 by the Department under Section 1g of the Retailers'
18 Occupation Tax Act. If the property is leased in a manner
19 that does not qualify for this exemption or is used in any
20 other non-exempt manner, the lessor shall be liable for the
21 tax imposed under this Act or the Use Tax Act, as the case
22 may be, based on the fair market value of the property at the
23 time the non-qualifying use occurs. No lessor shall collect
24 or attempt to collect an amount (however designated) that
25 purports to reimburse that lessor for the tax imposed by this
26 Act or the Use Tax Act, as the case may be, if the tax has
27 not been paid by the lessor. If a lessor improperly collects
28 any such amount from the lessee, the lessee shall have a
29 legal right to claim a refund of that amount from the lessor.
30 If, however, that amount is not refunded to the lessee for
31 any reason, the lessor is liable to pay that amount to the
32 Department.
33 (17) Beginning with taxable years ending on or after
34 December 31, 1995 and ending with taxable years ending on or
-13- LRB9105936LDpkC
1 before December 31, 2004, personal property that is donated
2 for disaster relief to be used in a State or federally
3 declared disaster area in Illinois or bordering Illinois by a
4 manufacturer or retailer that is registered in this State to
5 a corporation, society, association, foundation, or
6 institution that has been issued a sales tax exemption
7 identification number by the Department that assists victims
8 of the disaster who reside within the declared disaster area.
9 (18) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is used in
12 the performance of infrastructure repairs in this State,
13 including but not limited to municipal roads and streets,
14 access roads, bridges, sidewalks, waste disposal systems,
15 water and sewer line extensions, water distribution and
16 purification facilities, storm water drainage and retention
17 facilities, and sewage treatment facilities, resulting from a
18 State or federally declared disaster in Illinois or bordering
19 Illinois when such repairs are initiated on facilities
20 located in the declared disaster area within 6 months after
21 the disaster.
22 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
23 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
24 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
25 eff. 12-12-97; 90-605, eff. 6-30-98.)
26 Section 15. The Service Occupation Tax Act is amended by
27 changing Section 3-5 as follows:
28 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
29 Sec. 3-5. Exemptions. The following tangible personal
30 property is exempt from the tax imposed by this Act:
31 (1) Personal property sold by a corporation, society,
32 association, foundation, institution, or organization, other
-14- LRB9105936LDpkC
1 than a limited liability company, that is organized and
2 operated as a not-for-profit service enterprise for the
3 benefit of persons 65 years of age or older if the personal
4 property was not purchased by the enterprise for the purpose
5 of resale by the enterprise.
6 (2) Personal property purchased by a not-for-profit
7 Illinois county fair association for use in conducting,
8 operating, or promoting the county fair.
9 (3) Personal property purchased by any not-for-profit
10 music or dramatic arts organization that establishes, by
11 proof required by the Department by rule, that it has
12 received an exemption under Section 501(c)(3) of the
13 Internal Revenue Code and that is organized and operated for
14 the presentation of live public performances of musical or
15 theatrical works on a regular basis.
16 (4) Legal tender, currency, medallions, or gold or
17 silver coinage issued by the State of Illinois, the
18 government of the United States of America, or the government
19 of any foreign country, and bullion.
20 (5) Graphic arts machinery and equipment, including
21 repair and replacement parts, both new and used, and
22 including that manufactured on special order or purchased for
23 lease, certified by the purchaser to be used primarily for
24 graphic arts production.
25 (6) Personal property sold by a teacher-sponsored
26 student organization affiliated with an elementary or
27 secondary school located in Illinois.
28 (7) Farm machinery and equipment, both new and used,
29 including that manufactured on special order, certified by
30 the purchaser to be used primarily for production agriculture
31 or State or federal agricultural programs, including
32 individual replacement parts for the machinery and equipment,
33 including machinery and equipment purchased for lease, and
34 including implements of husbandry defined in Section 1-130 of
-15- LRB9105936LDpkC
1 the Illinois Vehicle Code, farm machinery and agricultural
2 chemical and fertilizer spreaders, and nurse wagons required
3 to be registered under Section 3-809 of the Illinois Vehicle
4 Code, but excluding other motor vehicles required to be
5 registered under the Illinois Vehicle Code. Horticultural
6 polyhouses or hoop houses used for propagating, growing, or
7 overwintering plants shall be considered farm machinery and
8 equipment under this item (7). Agricultural chemical tender
9 tanks and dry boxes shall include units sold separately from
10 a motor vehicle required to be licensed and units sold
11 mounted on a motor vehicle required to be licensed if the
12 selling price of the tender is separately stated.
13 Farm machinery and equipment shall include precision
14 farming equipment that is installed or purchased to be
15 installed on farm machinery and equipment including, but not
16 limited to, tractors, harvesters, sprayers, planters,
17 seeders, or spreaders. Precision farming equipment includes,
18 but is not limited to, soil testing sensors, computers,
19 monitors, software, global positioning and mapping systems,
20 and other such equipment.
21 Farm machinery and equipment also includes computers,
22 sensors, software, and related equipment used primarily in
23 the computer-assisted operation of production agriculture
24 facilities, equipment, and activities such as, but not
25 limited to, the collection, monitoring, and correlation of
26 animal and crop data for the purpose of formulating animal
27 diets and agricultural chemicals. This item (7) is exempt
28 from the provisions of Section 3-55 3-75.
29 (8) Fuel and petroleum products sold to or used by an
30 air common carrier, certified by the carrier to be used for
31 consumption, shipment, or storage in the conduct of its
32 business as an air common carrier, for a flight destined for
33 or returning from a location or locations outside the United
34 States without regard to previous or subsequent domestic
-16- LRB9105936LDpkC
1 stopovers.
2 (9) Proceeds of mandatory service charges separately
3 stated on customers' bills for the purchase and consumption
4 of 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 (10) Oil field exploration, drilling, and production
11 equipment, including (i) rigs and parts of rigs, rotary rigs,
12 cable tool rigs, and workover rigs, (ii) pipe and tubular
13 goods, including casing and drill strings, (iii) pumps and
14 pump-jack units, (iv) storage tanks and flow lines, (v) any
15 individual replacement part for oil field exploration,
16 drilling, and production equipment, and (vi) machinery and
17 equipment purchased for lease; but excluding motor vehicles
18 required to be registered under the Illinois Vehicle Code.
19 (11) Photoprocessing machinery and equipment, including
20 repair and replacement parts, both new and used, including
21 that manufactured on special order, certified by the
22 purchaser to be used primarily for photoprocessing, and
23 including photoprocessing machinery and equipment purchased
24 for lease.
25 (12) Coal exploration, mining, offhighway hauling,
26 processing, maintenance, and reclamation equipment, including
27 replacement parts and equipment, and including equipment
28 purchased for lease, but excluding motor vehicles required to
29 be registered under the Illinois Vehicle Code.
30 (13) Food for human consumption that is to be consumed
31 off the premises where it is sold (other than alcoholic
32 beverages, soft drinks and food that has been prepared for
33 immediate consumption) and prescription and non-prescription
34 medicines, drugs, medical appliances, and insulin, urine
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1 testing materials, syringes, and needles used by diabetics,
2 for human use, when purchased for use by a person receiving
3 medical assistance under Article 5 of the Illinois Public Aid
4 Code who resides in a licensed long-term care facility, as
5 defined in the Nursing Home Care Act.
6 (14) Semen used for artificial insemination of livestock
7 for direct agricultural production.
8 (15) Horses, or interests in horses, registered with and
9 meeting the requirements of any of the Arabian Horse Club
10 Registry of America, Appaloosa Horse Club, American Quarter
11 Horse Association, United States Trotting Association, or
12 Jockey Club, as appropriate, used for purposes of breeding or
13 racing for prizes and the feed, supplies, and equipment used
14 to raise those horses by the owners, breeders, and trainers
15 of the horses.
16 (16) Computers and communications equipment utilized for
17 any hospital purpose and equipment used in the diagnosis,
18 analysis, or treatment of hospital patients sold to a lessor
19 who leases the equipment, under a lease of one year or longer
20 executed or in effect at the time of the purchase, to a
21 hospital that has been issued an active tax exemption
22 identification number by the Department under Section 1g of
23 the Retailers' Occupation Tax Act.
24 (17) Personal property sold to a lessor who leases the
25 property, under a lease of one year or longer executed or in
26 effect at the time of the purchase, to a governmental body
27 that has been issued an active tax exemption identification
28 number by the Department under Section 1g of the Retailers'
29 Occupation Tax Act.
30 (18) Beginning with taxable years ending on or after
31 December 31, 1995 and ending with taxable years ending on or
32 before December 31, 2004, personal property that is donated
33 for disaster relief to be used in a State or federally
34 declared disaster area in Illinois or bordering Illinois by a
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1 manufacturer or retailer that is registered in this State to
2 a corporation, society, association, foundation, or
3 institution that has been issued a sales tax exemption
4 identification number by the Department that assists victims
5 of the disaster who reside within the declared disaster area.
6 (19) 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 used in
9 the performance of infrastructure repairs in this State,
10 including but not limited to municipal roads and streets,
11 access roads, bridges, sidewalks, waste disposal systems,
12 water and sewer line extensions, water distribution and
13 purification facilities, storm water drainage and retention
14 facilities, and sewage treatment facilities, resulting from a
15 State or federally declared disaster in Illinois or bordering
16 Illinois when such repairs are initiated on facilities
17 located in the declared disaster area within 6 months after
18 the disaster.
19 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
20 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
21 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
22 eff. 12-12-97; 90-605, eff. 6-30-98; revised 2-10-99.)
23 Section 20. The Retailers' Occupation Tax Act is amended
24 by changing Section 2-5 as follows:
25 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
26 Sec. 2-5. Exemptions. Gross receipts from proceeds from
27 the sale of the following tangible personal property are
28 exempt from the tax imposed by this Act:
29 (1) Farm chemicals.
30 (2) Farm machinery and equipment, both new and used,
31 including that manufactured on special order, certified by
32 the purchaser to be used primarily for production agriculture
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1 or State or federal agricultural programs, including
2 individual replacement parts for the machinery and equipment,
3 including machinery and equipment purchased for lease, and
4 including implements of husbandry defined in Section 1-130 of
5 the Illinois Vehicle Code, farm machinery and agricultural
6 chemical and fertilizer spreaders, and nurse wagons required
7 to be registered under Section 3-809 of the Illinois Vehicle
8 Code, but excluding other motor vehicles required to be
9 registered under the Illinois Vehicle Code. Horticultural
10 polyhouses or hoop houses used for propagating, growing, or
11 overwintering plants shall be considered farm machinery and
12 equipment under this item (2). Agricultural chemical tender
13 tanks and dry boxes shall include units sold separately from
14 a motor vehicle required to be licensed and units sold
15 mounted on a motor vehicle required to be licensed, if the
16 selling price of the tender is separately stated.
17 Farm machinery and equipment shall include precision
18 farming equipment that is installed or purchased to be
19 installed on farm machinery and equipment including, but not
20 limited to, tractors, harvesters, sprayers, planters,
21 seeders, or spreaders. Precision farming equipment includes,
22 but is not limited to, soil testing sensors, computers,
23 monitors, software, global positioning and mapping systems,
24 and other such equipment.
25 Farm machinery and equipment also includes computers,
26 sensors, software, and related equipment used primarily in
27 the computer-assisted operation of production agriculture
28 facilities, equipment, and activities such as, but not
29 limited to, the collection, monitoring, and correlation of
30 animal and crop data for the purpose of formulating animal
31 diets and agricultural chemicals. This item (7) is exempt
32 from the provisions of Section 2-70 3-75.
33 (3) Distillation machinery and equipment, sold as a unit
34 or kit, assembled or installed by the retailer, certified by
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1 the user to be used only for the production of ethyl alcohol
2 that will be used for consumption as motor fuel or as a
3 component of motor fuel for the personal use of the user, and
4 not subject to sale or resale.
5 (4) Graphic arts machinery and equipment, including
6 repair and replacement parts, both new and used, and
7 including that manufactured on special order or purchased for
8 lease, certified by the purchaser to be used primarily for
9 graphic arts production.
10 (5) A motor vehicle of the first division, a motor
11 vehicle of the second division that is a self-contained motor
12 vehicle designed or permanently converted to provide living
13 quarters for recreational, camping, or travel use, with
14 direct walk through access to the living quarters from the
15 driver's seat, or a motor vehicle of the second division that
16 is of the van configuration designed for the transportation
17 of not less than 7 nor more than 16 passengers, as defined in
18 Section 1-146 of the Illinois Vehicle Code, that is used for
19 automobile renting, as defined in the Automobile Renting
20 Occupation and Use Tax Act.
21 (6) Personal property sold by a teacher-sponsored
22 student organization affiliated with an elementary or
23 secondary school located in Illinois.
24 (7) Proceeds of that portion of the selling price of a
25 passenger car the sale of which is subject to the Replacement
26 Vehicle Tax.
27 (8) Personal property sold to an Illinois county fair
28 association for use in conducting, operating, or promoting
29 the county fair.
30 (9) Personal property sold to a not-for-profit music or
31 dramatic arts organization that establishes, by proof
32 required by the Department by rule, that it has received an
33 exemption under Section 501(c) (3) of the Internal Revenue
34 Code and that is organized and operated for the presentation
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1 of live public performances of musical or theatrical works on
2 a regular basis.
3 (10) Personal property sold by a corporation, society,
4 association, foundation, institution, or organization, other
5 than a limited liability company, that is organized and
6 operated as a not-for-profit service enterprise for the
7 benefit of persons 65 years of age or older if the personal
8 property was not purchased by the enterprise for the purpose
9 of resale by the enterprise.
10 (11) Personal property sold to a governmental body, to a
11 corporation, society, association, foundation, or institution
12 organized and operated exclusively for charitable, religious,
13 or educational purposes, or to a not-for-profit corporation,
14 society, association, foundation, institution, or
15 organization that has no compensated officers or employees
16 and that is organized and operated primarily for the
17 recreation of persons 55 years of age or older. A limited
18 liability company may qualify for the exemption under this
19 paragraph only if the limited liability company is organized
20 and operated exclusively for educational purposes. On and
21 after July 1, 1987, however, no entity otherwise eligible for
22 this exemption shall make tax-free purchases unless it has an
23 active identification number issued by the Department.
24 (12) Personal property sold to interstate carriers for
25 hire for use as rolling stock moving in interstate commerce
26 or to lessors under leases of one year or longer executed or
27 in effect at the time of purchase by interstate carriers for
28 hire for use as rolling stock moving in interstate commerce
29 and equipment operated by a telecommunications provider,
30 licensed as a common carrier by the Federal Communications
31 Commission, which is permanently installed in or affixed to
32 aircraft moving in interstate commerce.
33 (13) Proceeds from sales to owners, lessors, or shippers
34 of tangible personal property that is utilized by interstate
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1 carriers for hire for use as rolling stock moving in
2 interstate commerce and equipment operated by a
3 telecommunications provider, licensed as a common carrier by
4 the Federal Communications Commission, which is permanently
5 installed in or affixed to aircraft moving in interstate
6 commerce.
7 (14) Machinery and equipment that will be used by the
8 purchaser, or a lessee of the purchaser, primarily in the
9 process of manufacturing or assembling tangible personal
10 property for wholesale or retail sale or lease, whether the
11 sale or lease is made directly by the manufacturer or by some
12 other person, whether the materials used in the process are
13 owned by the manufacturer or some other person, or whether
14 the sale or lease is made apart from or as an incident to the
15 seller's engaging in the service occupation of producing
16 machines, tools, dies, jigs, patterns, gauges, or other
17 similar items of no commercial value on special order for a
18 particular purchaser.
19 (15) Proceeds of mandatory service charges separately
20 stated on customers' bills for purchase and consumption of
21 food and beverages, to the extent that the proceeds of the
22 service charge are in fact turned over as tips or as a
23 substitute for tips to the employees who participate directly
24 in preparing, serving, hosting or cleaning up the food or
25 beverage function with respect to which the service charge is
26 imposed.
27 (16) Petroleum products sold to a purchaser if the
28 seller is prohibited by federal law from charging tax to the
29 purchaser.
30 (17) Tangible personal property sold to a common carrier
31 by rail or motor that receives the physical possession of the
32 property in Illinois and that transports the property, or
33 shares with another common carrier in the transportation of
34 the property, out of Illinois on a standard uniform bill of
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1 lading showing the seller of the property as the shipper or
2 consignor of the property to a destination outside Illinois,
3 for use outside Illinois.
4 (18) Legal tender, currency, medallions, or gold or
5 silver coinage issued by the State of Illinois, the
6 government of the United States of America, or the government
7 of any foreign country, and bullion.
8 (19) Oil field exploration, drilling, and production
9 equipment, including (i) rigs and parts of rigs, rotary rigs,
10 cable tool rigs, and workover rigs, (ii) pipe and tubular
11 goods, including casing and drill strings, (iii) pumps and
12 pump-jack units, (iv) storage tanks and flow lines, (v) any
13 individual replacement part for oil field exploration,
14 drilling, and production equipment, and (vi) machinery and
15 equipment purchased for lease; but excluding motor vehicles
16 required to be registered under the Illinois Vehicle Code.
17 (20) Photoprocessing machinery and equipment, including
18 repair and replacement parts, both new and used, including
19 that manufactured on special order, certified by the
20 purchaser to be used primarily for photoprocessing, and
21 including photoprocessing machinery and equipment purchased
22 for lease.
23 (21) Coal exploration, mining, offhighway hauling,
24 processing, maintenance, and reclamation equipment, including
25 replacement parts and equipment, and including equipment
26 purchased for lease, but excluding motor vehicles required to
27 be registered under the Illinois Vehicle Code.
28 (22) Fuel and petroleum products sold to or used by an
29 air carrier, certified by the carrier to be used for
30 consumption, shipment, or storage in the conduct of its
31 business as an air common carrier, for a flight destined for
32 or returning from a location or locations outside the United
33 States without regard to previous or subsequent domestic
34 stopovers.
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1 (23) A transaction in which the purchase order is
2 received by a florist who is located outside Illinois, but
3 who has a florist located in Illinois deliver the property to
4 the purchaser or the purchaser's donee in Illinois.
5 (24) Fuel consumed or used in the operation of ships,
6 barges, or vessels that are used primarily in or for the
7 transportation of property or the conveyance of persons for
8 hire on rivers bordering on this State if the fuel is
9 delivered by the seller to the purchaser's barge, ship, or
10 vessel while it is afloat upon that bordering river.
11 (25) A motor vehicle sold in this State to a nonresident
12 even though the motor vehicle is delivered to the nonresident
13 in this State, if the motor vehicle is not to be titled in
14 this State, and if a driveaway decal permit is issued to the
15 motor vehicle as provided in Section 3-603 of the Illinois
16 Vehicle Code or if the nonresident purchaser has vehicle
17 registration plates to transfer to the motor vehicle upon
18 returning to his or her home state. The issuance of the
19 driveaway decal permit or having the out-of-state
20 registration plates to be transferred is prima facie evidence
21 that the motor vehicle will not be titled in this State.
22 (26) Semen used for artificial insemination of livestock
23 for direct agricultural production.
24 (27) 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 and the feed, supplies, and equipment used
30 to raise those horses by the owners, breeders, and trainers
31 of the horses.
32 (28) Computers and communications equipment utilized for
33 any hospital purpose and equipment used in the diagnosis,
34 analysis, or treatment of hospital patients sold to a lessor
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1 who leases the equipment, under a lease of one year or longer
2 executed or in effect at the time of the purchase, to a
3 hospital that has been issued an active tax exemption
4 identification number by the Department under Section 1g of
5 this Act.
6 (29) Personal property sold to a lessor who leases the
7 property, under a lease of one year or longer executed or in
8 effect at the time of the purchase, to a governmental body
9 that has been issued an active tax exemption identification
10 number by the Department under Section 1g of this Act.
11 (30) Beginning with taxable years ending on or after
12 December 31, 1995 and ending with taxable years ending on or
13 before December 31, 2004, personal property that is donated
14 for disaster relief to be used in a State or federally
15 declared disaster area in Illinois or bordering Illinois by a
16 manufacturer or retailer that is registered in this State to
17 a corporation, society, association, foundation, or
18 institution that has been issued a sales tax exemption
19 identification number by the Department that assists victims
20 of the disaster who reside within the declared disaster area.
21 (31) Beginning with taxable years ending on or after
22 December 31, 1995 and ending with taxable years ending on or
23 before December 31, 2004, personal property that is used in
24 the performance of infrastructure repairs in this State,
25 including but not limited to municipal roads and streets,
26 access roads, bridges, sidewalks, waste disposal systems,
27 water and sewer line extensions, water distribution and
28 purification facilities, storm water drainage and retention
29 facilities, and sewage treatment facilities, resulting from a
30 State or federally declared disaster in Illinois or bordering
31 Illinois when such repairs are initiated on facilities
32 located in the declared disaster area within 6 months after
33 the disaster.
34 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
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1 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
2 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
3 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98;
4 revised 2-10-99.)
5 Section 25. The Illinois Horse Racing Act of 1975 is
6 amended by changing Sections 3.04, 18, 26, 27, 27.1, 28, 29,
7 and 49 as follows:
8 (230 ILCS 5/3.04) (from Ch. 8, par. 37-3.04)
9 Sec. 3.04. "Director of mutuels" means the individual
10 representing the Board in the supervision and verification of
11 the pari-mutuel wagering pool totals for each racing day,
12 which verification shall be the basis for computing State
13 privilege or pari-mutuel taxes, licensee commissions and
14 purses.
15 (Source: P.A. 89-16, eff. 5-30-95.)
16 (230 ILCS 5/18) (from Ch. 8, par. 37-18)
17 Sec. 18. (a) Together with its application, each
18 applicant for racing dates shall deliver to the Board a
19 certified check or bank draft payable to the order of the
20 Board for $1,000. In the event the applicant applies for
21 racing dates in 2 or 3 successive calendar years as provided
22 in subsection (b) of Section 21, the fee shall be $2,000.
23 Filing fees shall not be refunded in the event the
24 application is denied.
25 (b) In addition to the filing fee of $1000 and the fees
26 provided in subsection (j) of Section 20, each organization
27 licensee shall pay a license fee of $100 for each racing
28 program on which its daily pari-mutuel handle is $400,000 or
29 more but less than $700,000, and a license fee of $200 for
30 each racing program on which its daily pari-mutuel handle is
31 $700,000 or more. The additional fees required to be paid
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1 under this Section by this amendatory Act of 1982 shall be
2 remitted by the organization licensee to the Illinois Racing
3 Board with each day's graduated privilege tax or pari-mutuel
4 tax and breakage as provided under Section 27.
5 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the
6 "Illinois Municipal Code," approved May 29, 1961, as now or
7 hereafter amended, shall not apply to any license under this
8 Act.
9 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)
10 (230 ILCS 5/26) (from Ch. 8, par. 37-26)
11 Sec. 26. Wagering.
12 (a) Any licensee may conduct and supervise the
13 pari-mutuel system of wagering, as defined in Section 3.12 of
14 this Act, on horse races conducted by an Illinois
15 organization licensee or conducted at a racetrack located in
16 another state or country and televised in Illinois in
17 accordance with subsection (g) of Section 26 of this Act.
18 Subject to the prior consent of the Board, licensees may
19 supplement any pari-mutuel pool in order to guarantee a
20 minimum distribution. Such pari-mutuel method of wagering
21 shall not, under any circumstances if conducted under the
22 provisions of this Act, be held or construed to be unlawful,
23 other statutes of this State to the contrary notwithstanding.
24 Subject to rules for advance wagering promulgated by the
25 Board, any licensee may accept wagers up to 2 calendar days
26 in advance of the day of the race wagered upon occurs.
27 (b) No other method of betting, pool making, wagering or
28 gambling shall be used or permitted by the licensee. Each
29 licensee may retain, subject to the payment of all applicable
30 taxes and purses, an amount not to exceed 17% of all money
31 wagered under subsection (a) of this Section, except as may
32 otherwise be permitted under this Act.
33 (b-5) An individual may place a wager under the
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1 pari-mutuel system from any licensed location authorized
2 under this Act provided that wager is electronically recorded
3 in the manner described in Section 3.12 of this Act. Any
4 wager made electronically by an individual while physically
5 on the premises of a licensee shall be deemed to have been
6 made at the premises of that licensee.
7 (c) The sum held by any licensee for payment of
8 outstanding pari-mutuel tickets, if unclaimed prior to
9 December 31 of the next year, shall be retained by the
10 licensee for payment of such tickets until that date. Within
11 10 days thereafter, the balance of such sum remaining
12 unclaimed, less any uncashed supplements contributed by such
13 licensee for the purpose of guaranteeing minimum
14 distributions of any pari-mutuel pool, shall, be paid to the
15 Illinois Veterans' Rehabilitation Fund of the State treasury,
16 from
5 any amount otherwise payable to the purse account at the
6 race track with which the wagering facility is affiliated
7 in the succeeding calendar year, an amount equal to 2% of
8 the differential in total Illinois pari-mutuel handle on
9 Illinois horse races at the wagering facility between
10 that calendar year in question and 1994 provided,
11 however, that a wagering facility shall not be entitled
12 to any such payment until the Board certifies in writing
13 to the wagering facility the amount to which the wagering
14 facility is entitled and a schedule for payment of the
15 amount to the wagering facility, based on: (i) the racing
16 dates awarded to the race track affiliated with the
17 wagering facility during the succeeding year; (ii) the
18 sums available or anticipated to be available in the
19 purse account of the race track affiliated with the
20 wagering facility for purses during the succeeding year;
21 and (iii) the need to ensure reasonable purse levels
22 during the payment period. The Board's certification
23 shall be provided no later than January 31 of the
24 succeeding year. In the event a wagering facility
25 entitled to a payment under this paragraph (13) is
26 affiliated with a race track that maintains purse
27 accounts for both standardbred and thoroughbred racing,
28 the amount to be paid to the wagering facility shall be
29 divided between each purse account pro rata, based on the
30 amount of Illinois handle on Illinois standardbred and
31 thoroughbred racing respectively at the wagering facility
32 during the previous calendar year. Annually, the General
33 Assembly shall appropriate sufficient funds from the
34 General Revenue Fund to the Department of Agriculture for
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1 the amounts certified by the Illinois Racing Board in
2 January and shall transfer said funds to each eligible
3 racing facility in accordance with the provisions of this
4 subparagraph (13).
5 (h) The Board may approve and license the conduct of
6 inter-track wagering and simulcast wagering by inter-track
7 wagering licensees and inter-track wagering location
8 licensees subject to the following terms and conditions:
9 (1) Any person licensed to conduct a race meeting
10 at a track where 60 or more days of racing were conducted
11 during the immediately preceding calendar year or where
12 over the 5 immediately preceding calendar years an
13 average of 30 or more days of racing were conducted
14 annually or at a track located in a county that is
15 bounded by the Mississippi River, which has a population
16 of less than 150,000 according to the 1990 decennial
17 census, and an average of at least 60 days of racing per
18 year between 1985 and 1993 may be issued an inter-track
19 wagering license. Any such person having operating
20 control of the racing facility may also receive up to 6
21 inter-track wagering location licenses. In no event shall
22 more than 6 inter-track wagering locations be established
23 for each eligible race track, except that an eligible
24 race track located in a county that has a population of
25 more than 230,000 and that is bounded by the Mississippi
26 River may establish up to 7 inter-track wagering
27 locations. An application for said license shall be filed
28 with the Board prior to such dates as may be fixed by the
29 Board. With an application for an inter-track wagering
30 location license there shall be delivered to the Board a
31 certified check or bank draft payable to the order of the
32 Board for an amount equal to $500. The application shall
33 be on forms prescribed and furnished by the Board. The
34 application shall comply with all other rules,
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1 regulations and conditions imposed by the Board in
2 connection therewith.
3 (2) The Board shall examine the applications with
4 respect to their conformity with this Act and the rules
5 and regulations imposed by the Board. If found to be in
6 compliance with the Act and rules and regulations of the
7 Board, the Board may then issue a license to conduct
8 inter-track wagering and simulcast wagering to such
9 applicant. All such applications shall be acted upon by
10 the Board at a meeting to be held on such date as may be
11 fixed by the Board.
12 (3) In granting licenses to conduct inter-track
13 wagering and simulcast wagering, the Board shall give due
14 consideration to the best interests of the public, of
15 horse racing, and of maximizing revenue to the State.
16 (4) Prior to the issuance of a license to conduct
17 inter-track wagering and simulcast wagering, the
18 applicant shall file with the Board a bond payable to the
19 State of Illinois in the sum of $50,000, executed by the
20 applicant and a surety company or companies authorized to
21 do business in this State, and conditioned upon (i) the
22 payment by the licensee of all taxes due under Section 27
23 or 27.1 and any other monies due and payable under this
24 Act, and (ii) distribution by the licensee, upon
25 presentation of the winning ticket or tickets, of all
26 sums payable to the patrons of pari-mutuel pools.
27 (5) Each license to conduct inter-track wagering
28 and simulcast wagering shall specify the person to whom
29 it is issued, the dates on which such wagering is
30 permitted, and the track or location where the wagering
31 is to be conducted.
32 (6) All wagering under such license is subject to
33 this Act and to the rules and regulations from time to
34 time prescribed by the Board, and every such license
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1 issued by the Board shall contain a recital to that
2 effect.
3 (7) An inter-track wagering licensee or inter-track
4 wagering location licensee may accept wagers at the track
5 or location where it is licensed, or as otherwise
6 provided under this Act.
7 (8) Inter-track wagering or simulcast wagering
8 shall not be conducted at any track less than 5 miles
9 from a track at which a racing meeting is in progress.
10 (8.1) Inter-track wagering location licensees who
11 derive their licenses from a particular organization
12 licensee shall conduct inter-track wagering and simulcast
13 wagering only at locations which are either within 90
14 miles of that race track where the particular
15 organization licensee is licensed to conduct racing, or
16 within 135 miles of that race track where the particular
17 organization licensee is licensed to conduct racing in
18 the case of race tracks in counties of less than 400,000
19 that were operating on or before June 1, 1986. However,
20 inter-track wagering and simulcast wagering shall not be
21 conducted by those licensees at any location within 5
22 miles of any race track at which a horse race meeting has
23 been licensed in the current year, unless the person
24 having operating control of such race track has given its
25 written consent to such inter-track wagering location
26 licensees, which consent must be filed with the Board at
27 or prior to the time application is made.
28 (8.2) Inter-track wagering or simulcast wagering
29 shall not be conducted by an inter-track wagering
30 location licensee at any location within 500 feet of an
31 existing church or existing school, nor within 500 feet
32 of the residences of more than 50 registered voters
33 without receiving written permission from a majority of
34 the registered voters at such residences. Such written
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1 permission statements shall be filed with the Board. The
2 distance of 500 feet shall be measured to the nearest
3 part of any building used for worship services, education
4 programs, residential purposes, or conducting inter-track
5 wagering by an inter-track wagering location licensee,
6 and not to property boundaries. However, inter-track
7 wagering or simulcast wagering may be conducted at a site
8 within 500 feet of a church, school or residences of 50
9 or more registered voters if such church, school or
10 residences have been erected or established, or such
11 voters have been registered, after the Board issues the
12 original inter-track wagering location license at the
13 site in question. Inter-track wagering location licensees
14 may conduct inter-track wagering and simulcast wagering
15 only in areas that are zoned for commercial or
16 manufacturing purposes or in areas for which a special
17 use has been approved by the local zoning authority.
18 However, no license to conduct inter-track wagering and
19 simulcast wagering shall be granted by the Board with
20 respect to any inter-track wagering location within the
21 jurisdiction of any local zoning authority which has, by
22 ordinance or by resolution, prohibited the establishment
23 of an inter-track wagering location within its
24 jurisdiction. However, inter-track wagering and
25 simulcast wagering may be conducted at a site if such
26 ordinance or resolution is enacted after the Board
27 licenses the original inter-track wagering location
28 licensee for the site in question.
29 (9) (Blank).
30 (10) An inter-track wagering licensee or an
31 inter-track wagering location licensee may retain,
32 subject to the payment of the privilege taxes and the
33 purses, an amount not to exceed 17% of all money wagered.
34 Each program of racing conducted by each inter-track
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1 wagering licensee or inter-track wagering location
2 licensee shall be considered a separate racing day for
3 the purpose of determining the daily handle and computing
4 the privilege tax on such daily handle as provided in
5 Section 27.1.
6 (10.1) Except as provided in subsection (g) of
7 Section 27 of this Act, inter-track wagering location
8 licensees shall pay 1% of the pari-mutuel handle at each
9 location to the municipality in which such location is
10 situated and 1% of the pari-mutuel handle at each
11 location to the county in which such location is
12 situated. In the event that an inter-track wagering
13 location licensee is situated in an unincorporated area
14 of a county, such licensee shall pay 2% of the
15 pari-mutuel handle from such location to such county.
16 (10.2) Notwithstanding any other provision of this
17 Act, with respect to intertrack wagering at a race track
18 located in a county that has a population of more than
19 230,000 and that is bounded by the Mississippi River
20 ("the first race track"), or at a facility operated by an
21 inter-track wagering licensee or inter-track wagering
22 location licensee that derives its license from the
23 organization licensee that operates the first race track,
24 on races conducted at the first race track or on races
25 conducted at another Illinois race track and
26 simultaneously televised to the first race track or to a
27 facility operated by an inter-track wagering licensee or
28 inter-track wagering location licensee that derives its
29 license from the organization licensee that operates the
30 first race track, those moneys shall be allocated as
31 follows:
32 (A) That portion of all moneys wagered on
33 standardbred racing that is required under this Act
34 to be paid to purses shall be paid to purses for
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1 standardbred races.
2 (B) That portion of all moneys wagered on
3 thoroughbred racing that is required under this Act
4 to be paid to purses shall be paid to purses for
5 thoroughbred races.
6 (11) (A) After payment of the privilege or
7 pari-mutuel tax, any other applicable taxes, and the
8 costs and expenses in connection with the gathering,
9 transmission, and dissemination of all data necessary to
10 the conduct of inter-track wagering, the remainder of the
11 monies retained under either Section 26 or Section 26.2
12 of this Act by the inter-track wagering licensee on
13 inter-track wagering shall be allocated with 50% to be
14 split between the 2 participating licensees and 50% to
15 purses, except that an intertrack wagering licensee that
16 derives its license from a track located in a county with
17 a population in excess of 230,000 and that borders the
18 Mississippi River shall not divide any remaining
19 retention with the Illinois organization licensee that
20 provides the race or races, and an intertrack wagering
21 licensee that accepts wagers on races conducted by an
22 organization licensee that conducts a race meet in a
23 county with a population in excess of 230,000 and that
24 borders the Mississippi River shall not divide any
25 remaining retention with that organization licensee.
26 (B) From the sums permitted to be retained pursuant
27 to this Act, each inter-track wagering location licensee
28 shall pay (i) the privilege or pari-mutuel tax to the
29 State; (ii) 8.5% 4% of the pari-mutuel handle on
30 intertrack wagering at such location on races as purses,
31 except that an intertrack wagering location licensee that
32 derives its license from a track located in a county with
33 a population in excess of 230,000 and that borders the
34 Mississippi River shall retain all purse moneys for its
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1 own purse account consistent with distribution set forth
2 in this subsection (h), and intertrack wagering location
3 licensees that accept wagers on races conducted by an
4 organization licensee located in a county with a
5 population in excess of 230,000 and that borders the
6 Mississippi River shall distribute all purse moneys to
7 purses at the operating host track; (iii) except as
8 provided in subsection (g) of Section 27 of this Act, 1%
9 of the pari-mutuel handle wagered on inter-track wagering
10 and simulcast wagering at each inter-track wagering
11 location licensee facility to the Horse Racing Tax
12 Allocation Fund, provided that, to the extent the total
13 amount collected and distributed to the Horse Racing Tax
14 Allocation Fund under this subsection (h) during any
15 calendar year exceeds the amount collected and
16 distributed to the Horse Racing Tax Allocation Fund
17 during calendar year 1994, that excess amount shall be
18 redistributed (I) to all inter-track wagering location
19 licensees, based on each licensee's pro-rata share of the
20 total handle from inter-track wagering and simulcast
21 wagering for all inter-track wagering location licensees
22 during the calendar year in which this provision is
23 applicable; then (II) the amounts redistributed to each
24 inter-track wagering location licensee as described in
25 subpart (I) shall be further redistributed as provided in
26 subparagraph (B) of paragraph (5) of subsection (g) of
27 this Section 26 provided first, that the shares of those
28 amounts, which are to be redistributed to the host track
29 or to purses at the host track under subparagraph (B) of
30 paragraph (5) of subsection (g) of this Section 26 shall
31 be redistributed based on each host track's pro rata
32 share of the total inter-track wagering and simulcast
33 wagering handle at all host tracks during the calendar
34 year in question, and second, that any amounts
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1 redistributed as described in part (I) to an inter-track
2 wagering location licensee that accepts wagers on races
3 conducted by an organization licensee that conducts a
4 race meet in a county with a population in excess of
5 230,000 and that borders the Mississippi River shall be
6 further redistributed as provided in subparagraphs (D)
7 and (E) of paragraph (7) of subsection (g) of this
8 Section 26, with the portion of that further
9 redistribution allocated to purses at that organization
10 licensee to be divided between standardbred purses and
11 thoroughbred purses based on the amounts otherwise
12 allocated to purses at that organization licensee during
13 the calendar year in question; and (iv) 8% of the
14 pari-mutuel handle on inter-track wagering wagered at
15 such location to satisfy all costs and expenses of
16 conducting its wagering. The remainder of the monies
17 retained by the inter-track wagering location licensee
18 shall be allocated 40% to the location licensee and 60%
19 to the organization licensee which provides the Illinois
20 races to the location, except that an intertrack wagering
21 location licensee that derives its license from a track
22 located in a county with a population in excess of
23 230,000 and that borders the Mississippi River shall not
24 divide any remaining retention with the organization
25 licensee that provides the race or races and an
26 intertrack wagering location licensee that accepts wagers
27 on races conducted by an organization licensee that
28 conducts a race meet in a county with a population in
29 excess of 230,000 and that borders the Mississippi River
30 shall not divide any remaining retention with the
31 organization licensee. Notwithstanding the provisions of
32 clauses (ii) and (iv) of this paragraph, in the case of
33 the additional inter-track wagering location licenses
34 authorized under paragraph (1) of this subsection (h) by
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1 this amendatory Act of 1991, those licensees shall pay
2 the following amounts as purses: during the first 12
3 months the licensee is in operation, 4.5% of the
4 pari-mutuel handle wagered at the location on races;
5 during the second 12 months, 4.5%; during the third 12
6 months, 5%; during the fourth 12 months, 5.5%; and during
7 the fifth 12 months and thereafter, 6%. The following
8 amounts shall be retained by the licensee to satisfy all
9 costs and expenses of conducting its wagering: during the
10 first 12 months the licensee is in operation, 7.5% of the
11 pari-mutuel handle wagered at the location; during the
12 second 12 months, 7.5%; during the third 12 months, 7%;
13 during the fourth 12 months, 6.5%; and during the fifth
14 12 months and thereafter, 6%. For additional intertrack
15 wagering location licensees authorized under this
16 amendatory Act of 1995, purses for the first 12 months
17 the licensee is in operation shall be 5% of the
18 pari-mutuel wagered at the location, purses for the
19 second 12 months the licensee is in operation shall be 5
20 1/2%, and purses thereafter shall be 6%. For additional
21 intertrack location licensees authorized under this
22 amendatory Act of 1995, the licensee shall be allowed to
23 retain to satisfy all costs and expenses: 7% of the
24 pari-mutuel handle wagered at the location during its
25 first 12 months of operation, 6.5% during its second 12
26 months of operation, and 6% thereafter.
27 (C) There is hereby created the Horse Racing Tax
28 Allocation Fund.
29 All monies paid into the Horse Racing Tax Allocation
30 Fund pursuant to this paragraph (11) by inter-track
31 wagering location licensees located in park districts of
32 500,000 population or less, or in a municipality that is
33 not included within any park district but is included
34 within a conservation district and is the county seat of
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1 a county that (i) is contiguous to the state of Indiana
2 and (ii) has a 1990 population of 88,257 according to the
3 United States Bureau of the Census, and operating on May
4 1, 1994 shall be allocated by appropriation as follows:
5 Two-sevenths to the Department of Agriculture.
6 Fifty percent of this two-sevenths shall be used to
7 promote the Illinois horse racing and breeding
8 industry, and shall be distributed by the Department
9 of Agriculture upon the advice of a 9-member
10 committee appointed by the Governor consisting of
11 the following members: the Director of Agriculture,
12 who shall serve as chairman; 2 representatives of
13 organization licensees conducting thoroughbred race
14 meetings in this State, recommended by those
15 licensees; 2 representatives of organization
16 licensees conducting standardbred race meetings in
17 this State, recommended by those licensees; a
18 representative of the Illinois Thoroughbred Breeders
19 and Owners Foundation, recommended by that
20 Foundation; a representative of the Illinois
21 Standardbred Owners and Breeders Association,
22 recommended by that Association; a representative of
23 the Horsemen's Benevolent and Protective Association
24 or any successor organization thereto established in
25 Illinois comprised of the largest number of owners
26 and trainers, recommended by that Association or
27 that successor organization; and a representative of
28 the Illinois Harness Horsemen's Association,
29 recommended by that Association. Committee members
30 shall serve for terms of 2 years, commencing January
31 1 of each even-numbered year. If a representative
32 of any of the above-named entities has not been
33 recommended by January 1 of any even-numbered year,
34 the Governor shall appoint a committee member to
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1 fill that position. Committee members shall receive
2 no compensation for their services as members but
3 shall be reimbursed for all actual and necessary
4 expenses and disbursements incurred in the
5 performance of their official duties. The remaining
6 50% of this two-sevenths shall be distributed to
7 county fairs for premiums and rehabilitation as set
8 forth in the Agricultural Fair Act;
9 Four-sevenths to park districts or
10 municipalities that do not have a park district of
11 500,000 population or less for museum purposes (if
12 an inter-track wagering location licensee is located
13 in such a park district) or to conservation
14 districts for museum purposes (if an inter-track
15 wagering location licensee is located in a
16 municipality that is not included within any park
17 district but is included within a conservation
18 district and is the county seat of a county that (i)
19 is contiguous to the state of Indiana and (ii) has a
20 1990 population of 88,257 according to the United
21 States Bureau of the Census, except that if the
22 conservation district does not maintain a museum,
23 the monies shall be allocated equally between the
24 county and the municipality in which the inter-track
25 wagering location licensee is located for general
26 purposes) or to a municipal recreation board for
27 park purposes (if an inter-track wagering location
28 licensee is located in a municipality that is not
29 included within any park district and park
30 maintenance is the function of the municipal
31 recreation board and the municipality has a 1990
32 population of 9,302 according to the United States
33 Bureau of the Census); provided that the monies are
34 distributed to each park district or conservation
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1 district or municipality that does not have a park
2 district in an amount equal to four-sevenths of the
3 amount collected by each inter-track wagering
4 location licensee within the park district or
5 conservation district or municipality for the Fund.
6 Monies that were paid into the Horse Racing Tax
7 Allocation Fund before the effective date of this
8 amendatory Act of 1991 by an inter-track wagering
9 location licensee located in a municipality that is
10 not included within any park district but is
11 included within a conservation district as provided
12 in this paragraph shall, as soon as practicable
13 after the effective date of this amendatory Act of
14 1991, be allocated and paid to that conservation
15 district as provided in this paragraph. Any park
16 district or municipality not maintaining a museum
17 may deposit the monies in the corporate fund of the
18 park district or municipality where the inter-track
19 wagering location is located, to be used for general
20 purposes; and
21 One-seventh to the Agricultural Premium Fund to
22 be used for distribution to agricultural home
23 economics extension councils in accordance with "An
24 Act in relation to additional support and finances
25 for the Agricultural and Home Economic Extension
26 Councils in the several counties of this State and
27 making an appropriation therefor", approved July 24,
28 1967.
29 All other monies paid into the Horse Racing Tax
30 Allocation Fund pursuant to this paragraph (11) shall be
31 allocated by appropriation as follows:
32 Two-sevenths to the Department of Agriculture.
33 Fifty percent of this two-sevenths shall be used to
34 promote the Illinois horse racing and breeding
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1 industry, and shall be distributed by the Department
2 of Agriculture upon the advice of a 9-member
3 committee appointed by the Governor consisting of
4 the following members: the Director of Agriculture,
5 who shall serve as chairman; 2 representatives of
6 organization licensees conducting thoroughbred race
7 meetings in this State, recommended by those
8 licensees; 2 representatives of organization
9 licensees conducting standardbred race meetings in
10 this State, recommended by those licensees; a
11 representative of the Illinois Thoroughbred Breeders
12 and Owners Foundation, recommended by that
13 Foundation; a representative of the Illinois
14 Standardbred Owners and Breeders Association,
15 recommended by that Association; a representative of
16 the Horsemen's Benevolent and Protective Association
17 or any successor organization thereto established in
18 Illinois comprised of the largest number of owners
19 and trainers, recommended by that Association or
20 that successor organization; and a representative of
21 the Illinois Harness Horsemen's Association,
22 recommended by that Association. Committee members
23 shall serve for terms of 2 years, commencing January
24 1 of each even-numbered year. If a representative
25 of any of the above-named entities has not been
26 recommended by January 1 of any even-numbered year,
27 the Governor shall appoint a committee member to
28 fill that position. Committee members shall receive
29 no compensation for their services as members but
30 shall be reimbursed for all actual and necessary
31 expenses and disbursements incurred in the
32 performance of their official duties. The remaining
33 50% of this two-sevenths shall be distributed to
34 county fairs for premiums and rehabilitation as set
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1 forth in the Agricultural Fair Act;
2 Four-sevenths to museums and aquariums located
3 in park districts of over 500,000 population;
4 provided that the monies are distributed in
5 accordance with the previous year's distribution of
6 the maintenance tax for such museums and aquariums
7 as provided in Section 2 of the Park District
8 Aquarium and Museum Act; and
9 One-seventh to the Agricultural Premium Fund to
10 be used for distribution to agricultural home
11 economics extension councils in accordance with "An
12 Act in relation to additional support and finances
13 for the Agricultural and Home Economic Extension
14 Councils in the several counties of this State and
15 making an appropriation therefor", approved July 24,
16 1967.
17 (D) Except as provided in paragraph (11) of
18 this subsection (h), with respect to purse
19 allocation from intertrack wagering, the monies so
20 retained shall be divided as follows:
21 (i) If the inter-track wagering licensee,
22 except an intertrack wagering licensee that
23 derives its license from an organization
24 licensee located in a county with a population
25 in excess of 230,000 and bounded by the
26 Mississippi River, is not conducting its own
27 race meeting during the same dates, then the
28 entire purse allocation shall be to purses at
29 the track where the races wagered on are being
30 conducted.
31 (ii) If the inter-track wagering
32 licensee, except an intertrack wagering
33 licensee that derives its license from an
34 organization licensee located in a county with
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1 a population in excess of 230,000 and bounded
2 by the Mississippi River, is also conducting
3 its own race meeting during the same dates,
4 then the purse allocation shall be as follows:
5 50% to purses at the track where the races
6 wagered on are being conducted; 50% to purses
7 at the track where the inter-track wagering
8 licensee is accepting such wagers.
9 (iii) If the inter-track wagering is
10 being conducted by an inter-track wagering
11 location licensee, except an intertrack
12 wagering location licensee that derives its
13 license from an organization licensee located
14 in a county with a population in excess of
15 230,000 and bounded by the Mississippi River,
16 the entire purse allocation for Illinois races
17 shall be to purses at the track where the race
18 meeting being wagered on is being held.
19 (12) The Board shall have all powers necessary and
20 proper to fully supervise and control the conduct of
21 inter-track wagering and simulcast wagering by
22 inter-track wagering licensees and inter-track wagering
23 location licensees, including, but not limited to the
24 following:
25 (A) The Board is vested with power to
26 promulgate reasonable rules and regulations for the
27 purpose of administering the conduct of this
28 wagering and to prescribe reasonable rules,
29 regulations and conditions under which such wagering
30 shall be held and conducted. Such rules and
31 regulations are to provide for the prevention of
32 practices detrimental to the public interest and for
33 the best interests of said wagering and to impose
34 penalties for violations thereof.
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1 (B) The Board, and any person or persons to
2 whom it delegates this power, is vested with the
3 power to enter the facilities of any licensee to
4 determine whether there has been compliance with the
5 provisions of this Act and the rules and regulations
6 relating to the conduct of such wagering.
7 (C) The Board, and any person or persons to
8 whom it delegates this power, may eject or exclude
9 from any licensee's facilities, any person whose
10 conduct or reputation is such that his presence on
11 such premises may, in the opinion of the Board, call
12 into the question the honesty and integrity of, or
13 interfere with the orderly conduct of such wagering;
14 provided, however, that no person shall be excluded
15 or ejected from such premises solely on the grounds
16 of race, color, creed, national origin, ancestry, or
17 sex.
18 (D) (Blank).
19 (E) The Board is vested with the power to
20 appoint delegates to execute any of the powers
21 granted to it under this Section for the purpose of
22 administering this wagering and any rules and
23 regulations promulgated in accordance with this Act.
24 (F) The Board shall name and appoint a State
25 director of this wagering who shall be a
26 representative of the Board and whose duty it shall
27 be to supervise the conduct of inter-track wagering
28 as may be provided for by the rules and regulations
29 of the Board; such rules and regulation shall
30 specify the method of appointment and the Director's
31 powers, authority and duties.
32 (G) The Board is vested with the power to
33 impose civil penalties of up to $5,000 against
34 individuals and up to $10,000 against licensees for
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1 each violation of any provision of this Act relating
2 to the conduct of this wagering, any rules adopted
3 by the Board, any order of the Board or any other
4 action which in the Board's discretion, is a
5 detriment or impediment to such wagering.
6 (13) The Department of Agriculture may enter into
7 agreements with licensees authorizing such licensees to
8 conduct inter-track wagering on races to be held at the
9 licensed race meetings conducted by the Department of
10 Agriculture. Such agreement shall specify the races of
11 the Department of Agriculture's licensed race meeting
12 upon which the licensees will conduct wagering. In the
13 event that a licensee conducts inter-track pari-mutuel
14 wagering on races from the Illinois State Fair or DuQuoin
15 State Fair which are in addition to the licensee's
16 previously approved racing program, those races shall be
17 considered a separate racing day for the purpose of
18 determining the daily handle and computing the privilege
19 or pari-mutuel tax on that daily handle as provided in
20 Sections 27 and 27.1. Such agreements shall be approved
21 by the Board before such wagering may be conducted. In
22 determining whether to grant approval, the Board shall
23 give due consideration to the best interests of the
24 public and of horse racing. The provisions of paragraphs
25 (1), (8), (8.1), and (8.2) of subsection (h) of this
26 Section which are not specified in this paragraph (13)
27 shall not apply to licensed race meetings conducted by
28 the Department of Agriculture at the Illinois State Fair
29 in Sangamon County or the DuQuoin State Fair in Perry
30 County, or to any wagering conducted on those race
31 meetings.
32 (h-5) Notwithstanding any provision of this Act to the
33 contrary, after the payment of all applicable fees and taxes
34 and except as provided in Section 27(g), the remainder of
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1 moneys retained from wagering by an organization licensee,
2 inter-track wagering licensee, or an inter-track wagering
3 location license shall be divided as follows: (i) 50% to the
4 licensee or licensees to be distributed as provided in this
5 Act, and (ii) 50% to purses.
6 (i) Notwithstanding the other provisions of this Act,
7 the conduct of wagering at wagering facilities is authorized
8 on all days, except as limited by subsection (b) of Section
9 19 of this Act.
10 (Source: P.A. 88-358; 88-572, eff. 8-11-94; 88-661, eff.
11 9-16-94; 89-16, eff. 5-30-95.)
12 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
13 Sec. 27. (a) In addition to the organization license fee
14 provided by this Act, until January 1, 2000, a graduated
15 privilege tax is hereby imposed for conducting the
16 pari-mutuel system of wagering permitted under this Act.
17 Except as provided in subsection (g) of Section 27 of this
18 Act, all of the breakage of each racing day held by any
19 licensee in the State shall be paid to the State. Such daily
20 graduated privilege tax shall be paid by the licensee from
21 the amount permitted to be retained under this Act. Each
22 day's graduated privilege tax, breakage, and Horse Racing Tax
23 Allocation funds shall be remitted to the Department of
24 Revenue within 48 hours after the close of the racing day
25 upon which it is assessed or within such other time as the
26 Board prescribes. The privilege tax hereby imposed, until
27 January 1, 2000, shall be a flat tax at the rate of 2% of the
28 daily pari-mutuel handle except as provided in Section 27.1.
29 In addition, every organization licensee, except as
30 provided in Section 27.1 of this Act, which conducts multiple
31 wagering shall pay, until January 1, 2000, as a privilege tax
32 on multiple wagers an amount equal to 1.25% of all moneys
33 wagered each day on such multiple wagers, plus an additional
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1 amount equal to 3.5% of the amount wagered each day on any
2 other multiple wager which involves a single betting interest
3 on 3 or more horses. The licensee shall remit the amount of
4 such taxes to the Department of Revenue within 48 hours after
5 the close of the racing day on which it is assessed or within
6 such other time as the Board prescribes.
7 This subsection (a) shall be inoperative and of no force
8 and effect on and after January 1, 2000.
9 (a-5) Beginning on January 1, 2000, a flat pari-mutuel
10 tax at the rate of 1.5% of the daily pari-mutuel handle is
11 imposed, which shall be remitted to the Department of Revenue
12 within 48 hours after the close of the racing day upon which
13 it is assessed or within such other time as the Board
14 prescribes.
15 (b) On or before January 1, 2000, in the event that any
16 organization licensee conducts 2 separate programs of races
17 on any day, each such program shall be considered a separate
18 racing day for purposes of determining the daily handle and
19 computing the privilege tax on such daily handle as provided
20 in subsection (a) of this Section.
21 (c) Licensees shall at all times keep accurate books and
22 records of all monies wagered on each day of a race meeting
23 and of the taxes paid to the Department of Revenue under the
24 provisions of this Section. The Board or its duly authorized
25 representative or representatives shall at all reasonable
26 times have access to such records for the purpose of
27 examining and checking the same and ascertaining whether the
28 proper amount of taxes is being paid as provided. The Board
29 shall require verified reports and a statement of the total
30 of all monies wagered daily at each wagering facility upon
31 which the taxes are assessed and may prescribe forms upon
32 which such reports and statement shall be made.
33 (d) Any licensee failing or refusing to pay the amount
34 of any tax due under this Section shall be guilty of a
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1 business offense and upon conviction shall be fined not more
2 than $5,000 in addition to the amount found due as tax under
3 this Section. Each day's violation shall constitute a
4 separate offense. All fines paid into Court by a licensee
5 hereunder shall be transmitted and paid over by the Clerk of
6 the Court to the Board.
7 (e) No other license fee, privilege tax, excise tax, or
8 racing fee, except as provided in this Act, shall be assessed
9 or collected from any such licensee by the State.
10 (f) No other license fee, privilege tax, excise tax or
11 racing fee shall be assessed or collected from any such
12 licensee by units of local government except as provided in
13 paragraph 10.1 of subsection (h) and subsection (f) of
14 Section 26 of this Act. However, any municipality that has a
15 Board licensed horse race meeting at a race track wholly
16 within its corporate boundaries or a township that has a
17 Board licensed horse race meeting at a race track wholly
18 within the unincorporated area of the township may charge a
19 local amusement tax not to exceed 10¢ per admission to such
20 horse race meeting by the enactment of an ordinance.
21 However, any municipality or county that has a Board licensed
22 inter-track wagering location facility wholly within its
23 corporate boundaries may each impose an admission fee not to
24 exceed $1.00 per admission to such inter-track wagering
25 location facility, so that a total of not more than $2.00 per
26 admission may be imposed. Except as provided in subparagraph
27 (g) of Section 27 of this Act, the inter-track wagering
28 location licensee shall collect any and all such fees and
29 within 48 hours remit the fees to the Board, which shall,
30 pursuant to rule, cause the fees to be distributed to the
31 county or municipality.
32 (g) Notwithstanding any provision in this Act to the
33 contrary, if in any calendar year the total taxes and fees
34 required to be collected from licensees and distributed under
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1 this Act to all State and local governmental authorities
2 exceeds the amount of such taxes and fees distributed to each
3 State and local governmental authority to which each State
4 and local governmental authority was entitled under this Act
5 for calendar year 1994, then the first $11 million of that
6 excess amount shall be allocated at the earliest possible
7 date for distribution as purse money for the succeeding
8 calendar year. Upon reaching the 1994 level, and until the
9 excess amount of taxes and fees exceeds $11 million, the
10 Board shall direct all licensees to cease paying the subject
11 taxes and fees and the Board shall direct all licensees to
12 allocate any such excess amount for purses as follows:
13 (i) the excess amount shall be initially divided
14 between thoroughbred and standardbred purses based on the
15 thoroughbred's and standardbred's respective percentages
16 of total Illinois live wagering in calendar year 1994;
17 (ii) each thoroughbred and standardbred
18 organization licensee issued an organization licensee in
19 that succeeding allocation year (provided that licensee
20 was also an organization licensee during the preceding
21 year) shall be allocated an amount equal to the product
22 of its percentage of total Illinois live thoroughbred or
23 standardbred wagering in calendar year 1994 (the total to
24 be determined based on the sum of 1994 on-track wagering
25 for all organization licensees issued organization
26 licenses in both the allocation year and the preceding
27 year) multiplied by the total amount allocated for
28 standardbred or thoroughbred purses, provided that the
29 first $1,500,000 of the amount allocated to standardbred
30 purses under item (i) shall be allocated to the
31 Department of Agriculture to be expended with the
32 assistance and advice of the Illinois Standardbred
33 Breeders Funds Advisory Board for the purposes listed in
34 subsection (g) of Section 31 of this Act, before the
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1 amount allocated to standardbred purses under item (i) is
2 allocated to standardbred organization licensees in the
3 succeeding allocation year.
4 To the extent the excess amount of taxes and fees to be
5 collected and distributed to State and local governmental
6 authorities exceeds $11 million, that excess amount shall be
7 collected and distributed to State and local authorities as
8 provided for under this Act.
9 (Source: P.A. 88-495; 89-16, eff. 5-30-95; 89-499, eff.
10 6-28-96.)
11 (230 ILCS 5/27.1) (from Ch. 8, par. 37-27.1)
12 Sec. 27.1. Every organization licensee whose track
13 facilities are operating in counties under 400,000 population
14 on or before June 1, 1986, shall be subject to a daily
15 graduated tax of 1% of the first $400,000 of daily
16 pari-mutuel handle and 2% of such handle in excess of
17 $400,000.
18 Every inter-track wagering licensee and inter-track
19 wagering location licensee shall be subject to a daily
20 graduated tax of 1% of the first $400,000 of its daily
21 pari-mutuel handle and 2% of such handle in excess of
22 $400,000.
23 Every organization licensee whose track facilities are
24 operating in counties under 400,000 population on or before
25 June 1, 1986, every inter-track wagering licensee and
26 inter-track wagering location licensee, shall pay, until
27 January 1, 2000, as a privilege tax on multiple wagers an
28 amount equal to .75% of all moneys wagered each day on such
29 multiple wagers, plus, until January 1, 2000, an additional
30 amount equal to 2.5% of the amount wagered each day on any
31 other multiple wager which involves a single betting interest
32 on 3 or more horses.
33 This Section is repealed on January 1, 2000.
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1 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)
2 (230 ILCS 5/28) (from Ch. 8, par. 37-28)
3 Sec. 28. Except as provided in subsection (g) of Section
4 27 of this Act, moneys collected shall be distributed
5 according to the provisions of this Section 28.
6 (a) Thirty per cent of the total of all monies received
7 by the State as privilege taxes shall be paid into the
8 Metropolitan Fair and Exposition Authority Reconstruction
9 Fund in the State treasury until such Fund contains
10 sufficient money to pay in full, both principal and interest,
11 all of the outstanding bonds issued pursuant to the Fair and
12 Exposition Authority Reconstruction Act, approved July 31,
13 1967, as amended, and thereafter shall be paid into the
14 Metropolitan Exposition Auditorium and Office Building Fund
15 in the State Treasury.
16 (b) Four and one-half per cent of the total of all
17 monies received by the State as privilege taxes shall be paid
18 into the State treasury into a special Fund to be known as
19 the "Metropolitan Exposition, Auditorium, and Office Building
20 Fund".
21 (c) Fifty per cent of the total of all monies received
22 by the State as privilege taxes under the provisions of this
23 Act shall be paid into the "Agricultural Premium Fund".
24 (d) Seven per cent of the total of all monies received
25 by the State as privilege taxes shall be paid into the Fair
26 and Exposition Fund in the State treasury; provided, however,
27 that when all bonds issued prior to July 1, 1984 by the
28 Metropolitan Fair and Exposition Authority shall have been
29 paid or payment shall have been provided for upon a refunding
30 of those bonds, thereafter 1/12 of $1,665,662 of such monies
31 shall be paid each month into the Build Illinois Fund, and
32 the remainder into the Fair and Exposition Fund. All excess
33 monies shall be allocated to the Department of Agriculture
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1 for distribution to county fairs for premiums and
2 rehabilitation as set forth in the Agricultural Fair Act.
3 (e) The monies provided for in Section 30 shall be paid
4 into the Illinois Thoroughbred Breeders Fund.
5 (f) The monies provided for in Section 31 shall be paid
6 into the Illinois Standardbred Breeders Fund.
7 (g) From That part representing 1/2 of the total
8 breakage in Thoroughbred, Harness, Appaloosa, Arabian, and
9 Quarter Horse racing in the State (i) 50% shall be paid into
10 the "Illinois Race Track Improvement Fund" as established in
11 Section 32, (ii) 25% shall be allocated to purse accounts for
12 each licensee, and (iii) 25% shall be allocated to the
13 licensee.
14 (h) All other monies received by the Board under this
15 Act shall be paid into the General Revenue Fund of the State.
16 (i) The salaries of the Board members, secretary,
17 stewards, directors of mutuels, veterinarians,
18 representatives, accountants, clerks, stenographers,
19 inspectors and other employees of the Board, and all expenses
20 of the Board incident to the administration of this Act,
21 including, but not limited to, all expenses and salaries
22 incident to the taking of saliva and urine samples in
23 accordance with the rules and regulations of the Board shall
24 be paid out of the Agricultural Premium Fund.
25 (j) The Agricultural Premium Fund shall also be used:
26 (1) for the expenses of operating the Illinois
27 State Fair and the DuQuoin State Fair, including the
28 payment of prize money or premiums;
29 (2) for the distribution to county fairs,
30 vocational agriculture section fairs, agricultural
31 societies, and agricultural extension clubs in accordance
32 with the "Agricultural Fair Act", as amended;
33 (3) for payment of prize monies and premiums
34 awarded and for expenses incurred in connection with the
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1 International Livestock Exposition and the Mid-Continent
2 Livestock Exposition held in Illinois, which premiums,
3 and awards must be approved, and paid by the Illinois
4 Department of Agriculture;
5 (4) for personal service of county agricultural
6 advisors and county home advisors;
7 (5) for distribution to agricultural home economic
8 extension councils in accordance with "An Act in relation
9 to additional support and finance for the Agricultural
10 and Home Economic Extension Councils in the several
11 counties in this State and making an appropriation
12 therefor", approved July 24, 1967, as amended;
13 (6) for research on equine disease, including a
14 development center therefor;
15 (7) for training scholarships for study on equine
16 diseases to students at the University of Illinois
17 College of Veterinary Medicine;
18 (8) for the rehabilitation, repair and maintenance
19 of the Illinois and DuQuoin State Fair Grounds and the
20 structures and facilities thereon and the construction of
21 permanent improvements on such Fair Grounds, including
22 such structures, facilities and property located on such
23 State Fair Grounds which are under the custody and
24 control of the Department of Agriculture;
25 (9) for the expenses of the Department of
26 Agriculture under Section 6.01a of "The Civil
27 Administrative Code of Illinois", as amended;
28 (10) for the expenses of the Department of Commerce
29 and Community Affairs under Sections 6.18a, 46.24, 46.25
30 and 46.26 of "The Civil Administrative Code of Illinois",
31 as amended;
32 (11) for remodeling, expanding, and reconstructing
33 facilities destroyed by fire of any Fair and Exposition
34 Authority in counties with a population of 1,000,000 or
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1 more inhabitants;
2 (12) for the purpose of assisting in the care and
3 general rehabilitation of disabled veterans of any war
4 and their surviving spouses and orphans;
5 (13) for expenses of the Department of State Police
6 for duties performed under this Act;
7 (14) for the Department of Agriculture for soil
8 surveys and soil and water conservation purposes;
9 (15) for the Department of Agriculture for grants
10 to the City of Chicago for conducting the Chicagofest.
11 (k) To the extent that monies paid by the Board to the
12 Agricultural Premium Fund are in the opinion of the Governor
13 in excess of the amount necessary for the purposes herein
14 stated, the Governor shall notify the Comptroller and the
15 State Treasurer of such fact, who, upon receipt of such
16 notification, shall transfer such excess monies from the
17 Agricultural Premium Fund to the General Revenue Fund.
18 (Source: P.A. 89-16, eff. 5-30-95.)
19 (230 ILCS 5/29) (from Ch. 8, par. 37-29)
20 Sec. 29. (a) After the privilege or pari-mutuel tax
21 established in Sections 26(f), 27, and 27.1 is paid to the
22 State from the monies retained by the organization licensee
23 pursuant to Sections 26, 26.2, and 26.3, the remainder of
24 those monies retained pursuant to Sections 26 and 26.2,
25 except as provided in subsection (g) of Section 27 of this
26 Act, shall be allocated evenly to the organization licensee
27 and as purses.
28 (b) (Blank).
29 (c) (Blank).
30 (d) Each organization licensee and inter-track wagering
31 licensee from the money retained for purses as set forth in
32 subsection (a) of this Section, shall pay to an organization
33 representing the largest number of horse owners and trainers
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1 which has negotiated a contract with the organization
2 licensee for such purpose an amount equal to at least 1% of
3 the organization licensee's and inter-track wagering
4 licensee's retention of the pari-mutuel handle for the racing
5 season. Each inter-track wagering location licensee, from
6 the 4% of its handle required to be paid as purses under
7 paragraph (11) of subsection (h) of Section 26 of this Act,
8 shall pay to the contractually established representative
9 organization 2% of that 4%, provided that the payments so
10 made to the organization shall not exceed a total of $125,000
11 in any calendar year. Such contract shall be negotiated and
12 signed prior to the beginning of the racing season.
13 (Source: P.A. 89-16, eff. 5-30-95.)
14 (230 ILCS 5/49) (from Ch. 8, par. 37-49)
15 Sec. 49. The General Assembly declares that it is the
16 policy of this State to foster the running of the
17 Hambletonian Stakes in Illinois. Should the Hambletonian
18 stakes no longer be run in Illinois then it is the policy of
19 the State to foster a race or races at the DuQuoin State
20 Fair, the Illinois State Fair, and the Illinois county fairs
21 for the benefit of the harness horse racing industry. In
22 order to further this policy, the Board shall keep a record
23 of the moneys deposited in the Agricultural Premium Fund
24 which are derived from the third and fourth races conducted
25 on each Friday and Saturday during each harness racing
26 meeting licensed under this Act, provided that each such
27 Friday and Saturday program has at least 11 races. Each year,
28 from the moneys in the Agricultural Premium Fund provided
29 from such races, an appropriation shall be made to the
30 Department of Agriculture to be used to supplement the purses
31 offered for, and for other expenses in connection with, the
32 Hambletonian Stakes or other harness races as authorized in
33 this Section.
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1 In addition, the Board shall keep a record of the moneys
2 deposited in the Agricultural Premium Fund that are derived
3 from the third and fourth races conducted on each Sunday
4 during each harness racing meeting licensed under this Act.
5 From the moneys in the Agricultural Premium Fund provided
6 from Sunday races, an appropriation shall be made to the
7 Department of Agriculture to be used to supplement purses
8 offered for, and other expenses in connection with, Illinois
9 county fairs conducting live harness racing.
10 (Source: P.A. 86-1458.)
11 Section 99. Effective date. This Act takes effect
12 January 1, 2000.