State of Illinois
92nd General Assembly
Legislation

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92_HB4974enr

 
HB4974 Enrolled                               LRB9213002LBprA

 1        AN ACT concerning motor vehicle decals.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Use  Tax  Act  is  amended  by  changing
 5    Section 3-55 as follows:

 6        (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
 7        Sec.  3-55.  Multistate  exemption.    The tax imposed by
 8    this Act does not apply  to  the  use  of  tangible  personal
 9    property in this State under the following circumstances:
10        (a)  The   use,  in  this  State,  of  tangible  personal
11    property  acquired  outside  this  State  by  a   nonresident
12    individual  and brought into this State by the individual for
13    his or her own use while temporarily  within  this  State  or
14    while passing through this State.
15        (b)  The   use,  in  this  State,  of  tangible  personal
16    property by an interstate carrier for hire as  rolling  stock
17    moving  in interstate commerce or by lessors under a lease of
18    one year or longer executed or  in  effect  at  the  time  of
19    purchase of tangible personal property by interstate carriers
20    for-hire  for  use  as  rolling  stock  moving  in interstate
21    commerce as long  as  so  used  by  the  interstate  carriers
22    for-hire,  and  equipment  operated  by  a telecommunications
23    provider,  licensed  as  a  common  carrier  by  the  Federal
24    Communications Commission, which is permanently installed  in
25    or affixed to aircraft moving in interstate commerce.
26        (c)  The  use,  in  this  State,  by  owners, lessors, or
27    shippers of tangible personal property that  is  utilized  by
28    interstate  carriers for hire for use as rolling stock moving
29    in interstate commerce as long as so used by  the  interstate
30    carriers    for   hire,   and   equipment   operated   by   a
31    telecommunications provider, licensed as a common carrier  by
 
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 1    the  Federal  Communications Commission, which is permanently
 2    installed in or affixed  to  aircraft  moving  in  interstate
 3    commerce.
 4        (d)  The   use,  in  this  State,  of  tangible  personal
 5    property that is acquired outside this State and caused to be
 6    brought into this State by a person who has  already  paid  a
 7    tax in another State in respect to the sale, purchase, or use
 8    of  that  property,  to  the  extent of the amount of the tax
 9    properly due and paid in the other State.
10        (e)  The temporary storage, in this  State,  of  tangible
11    personal  property  that  is  acquired outside this State and
12    that, after being brought into this  State  and  stored  here
13    temporarily,   is  used  solely  outside  this  State  or  is
14    physically attached to or incorporated  into  other  tangible
15    personal  property that is used solely outside this State, or
16    is  altered  by   converting,   fabricating,   manufacturing,
17    printing,  processing,  or  shaping, and, as altered, is used
18    solely outside this State.
19        (f)  The temporary storage  in  this  State  of  building
20    materials and fixtures that are acquired either in this State
21    or  outside  this State by an Illinois registered combination
22    retailer and construction contractor, and that the  purchaser
23    thereafter  uses  outside  this  State  by incorporating that
24    property into real estate located outside this State.
25        (g)  The use or purchase of tangible personal property by
26    a common carrier by rail or motor that receives the  physical
27    possession  of  the property in Illinois, and that transports
28    the property, or shares with another common  carrier  in  the
29    transportation of the property, out of Illinois on a standard
30    uniform  bill of lading showing the seller of the property as
31    the shipper or consignor of the  property  to  a  destination
32    outside Illinois, for use outside Illinois.
33        (h)  The  use, in this State, of a motor vehicle that was
34    sold in this State to a nonresident, even  though  the  motor
 
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 1    vehicle is delivered to the nonresident in this State, if the
 2    motor  vehicle  is  not  to be titled in this State, and if a
 3    drive-away driveaway decal permit  is  issued  to  the  motor
 4    vehicle  as provided in Section 3-603 of the Illinois Vehicle
 5    Code or if the nonresident purchaser has vehicle registration
 6    plates to transfer to the motor vehicle upon returning to his
 7    or her home state. The issuance of the  drive-away  driveaway
 8    decal  permit  or having the out-of-state registration plates
 9    to be transferred shall be  prima  facie  evidence  that  the
10    motor vehicle will not be titled in this State.
11        (i)  Beginning  July  1, 1999, the use, in this State, of
12    fuel acquired outside this State and brought into this  State
13    in  the  fuel  supply tanks of locomotives engaged in freight
14    hauling and passenger service for interstate  commerce.  This
15    subsection is exempt from the provisions of Section 3-90.
16        (j)  Beginning  on  January  1, 2002, the use of tangible
17    personal property purchased from an Illinois  retailer  by  a
18    taxpayer  engaged  in  centralized  purchasing  activities in
19    Illinois who will, upon receipt of the property in  Illinois,
20    temporarily  store  the  property  in  Illinois  (i)  for the
21    purpose of subsequently transporting it  outside  this  State
22    for  use  or consumption thereafter solely outside this State
23    or (ii) for the purpose of being  processed,  fabricated,  or
24    manufactured  into,  attached  to, or incorporated into other
25    tangible personal property to  be  transported  outside  this
26    State  and  thereafter  used  or consumed solely outside this
27    State.  The Director of  Revenue  shall,  pursuant  to  rules
28    adopted   in  accordance  with  the  Illinois  Administrative
29    Procedure Act,  issue  a  permit  to  any  taxpayer  in  good
30    standing   with  the  Department  who  is  eligible  for  the
31    exemption under this subsection (j).  The permit issued under
32    this subsection (j) shall authorize the holder, to the extent
33    and in the manner specified in the rules adopted  under  this
34    Act,  to  purchase tangible personal property from a retailer
 
HB4974 Enrolled             -4-               LRB9213002LBprA
 1    exempt from the taxes imposed by this Act.   Taxpayers  shall
 2    maintain  all necessary books and records to substantiate the
 3    use and consumption of all such  tangible  personal  property
 4    outside of the State of Illinois.
 5    (Source: P.A.  91-51,  eff.  6-30-99;  91-313,  eff. 7-29-99;
 6    91-587, eff.  8-14-99;  92-16,  eff.  6-28-01;  92-488,  eff.
 7    8-23-01.)

 8        Section 10.  The Retailers' Occupation Tax Act is amended
 9    by changing Section 2-5 as follows:

10        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
11        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
12    the  sale  of  the  following  tangible personal property are
13    exempt from the tax imposed by this Act:
14        (1)  Farm chemicals.
15        (2)  Farm machinery and equipment,  both  new  and  used,
16    including  that  manufactured  on special order, certified by
17    the purchaser to be used primarily for production agriculture
18    or  State  or  federal   agricultural   programs,   including
19    individual replacement parts for the machinery and equipment,
20    including  machinery  and  equipment purchased for lease, and
21    including implements of husbandry defined in Section 1-130 of
22    the Illinois Vehicle Code, farm  machinery  and  agricultural
23    chemical  and fertilizer spreaders, and nurse wagons required
24    to be registered under Section 3-809 of the Illinois  Vehicle
25    Code,  but  excluding  other  motor  vehicles  required to be
26    registered under the  Illinois  Vehicle  Code.  Horticultural
27    polyhouses  or  hoop houses used for propagating, growing, or
28    overwintering plants shall be considered farm  machinery  and
29    equipment  under  this item (2). Agricultural chemical tender
30    tanks and dry boxes shall include units sold separately  from
31    a  motor  vehicle  required  to  be  licensed  and units sold
32    mounted on a motor vehicle required to be  licensed,  if  the
 
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 1    selling price of the tender is separately stated.
 2        Farm  machinery  and  equipment  shall  include precision
 3    farming equipment  that  is  installed  or  purchased  to  be
 4    installed  on farm machinery and equipment including, but not
 5    limited  to,  tractors,   harvesters,   sprayers,   planters,
 6    seeders,  or spreaders. Precision farming equipment includes,
 7    but is not  limited  to,  soil  testing  sensors,  computers,
 8    monitors,  software,  global positioning and mapping systems,
 9    and other such equipment.
10        Farm machinery and  equipment  also  includes  computers,
11    sensors,  software,  and  related equipment used primarily in
12    the computer-assisted  operation  of  production  agriculture
13    facilities,  equipment,  and  activities  such  as,  but  not
14    limited  to,  the  collection, monitoring, and correlation of
15    animal and crop data for the purpose  of  formulating  animal
16    diets  and  agricultural  chemicals.  This item (7) is exempt
17    from the provisions of Section 2-70.
18        (3)  Distillation machinery and equipment, sold as a unit
19    or kit, assembled or installed by the retailer, certified  by
20    the  user to be used only for the production of ethyl alcohol
21    that will be used for consumption  as  motor  fuel  or  as  a
22    component of motor fuel for the personal use of the user, and
23    not subject to sale or resale.
24        (4)  Graphic  arts  machinery  and  equipment,  including
25    repair   and  replacement  parts,  both  new  and  used,  and
26    including that manufactured on special order or purchased for
27    lease, certified by the purchaser to be  used  primarily  for
28    graphic  arts  production.  Equipment  includes  chemicals or
29    chemicals acting as catalysts but only if  the  chemicals  or
30    chemicals  acting  as catalysts effect a direct and immediate
31    change upon a graphic arts product.
32        (5)  A motor vehicle  of  the  first  division,  a  motor
33    vehicle of the second division that is a self-contained motor
34    vehicle  designed  or permanently converted to provide living
 
HB4974 Enrolled             -6-               LRB9213002LBprA
 1    quarters for  recreational,  camping,  or  travel  use,  with
 2    direct  walk  through  access to the living quarters from the
 3    driver's seat, or a motor vehicle of the second division that
 4    is of the van configuration designed for  the  transportation
 5    of not less than 7 nor more than 16 passengers, as defined in
 6    Section  1-146 of the Illinois Vehicle Code, that is used for
 7    automobile renting, as  defined  in  the  Automobile  Renting
 8    Occupation and Use Tax Act.
 9        (6)  Personal   property   sold  by  a  teacher-sponsored
10    student  organization  affiliated  with  an   elementary   or
11    secondary school located in Illinois.
12        (7)  Proceeds  of  that portion of the selling price of a
13    passenger car the sale of which is subject to the Replacement
14    Vehicle Tax.
15        (8)  Personal property sold to an  Illinois  county  fair
16    association  for  use  in conducting, operating, or promoting
17    the county fair.
18        (9)  Personal property sold to a not-for-profit  arts  or
19    cultural  organization that establishes, by proof required by
20    the Department by rule, that it  has  received  an  exemption
21    under Section 501(c)(3) of the Internal Revenue Code and that
22    is  organized  and operated primarily for the presentation or
23    support of  arts  or  cultural  programming,  activities,  or
24    services.   These  organizations include, but are not limited
25    to, music and dramatic arts organizations  such  as  symphony
26    orchestras  and  theatrical groups, arts and cultural service
27    organizations,   local    arts    councils,    visual    arts
28    organizations, and media arts organizations. On and after the
29    effective  date  of  this  amendatory Act of the 92nd General
30    Assembly, however, an  entity  otherwise  eligible  for  this
31    exemption  shall not make tax-free purchases unless it has an
32    active identification number issued by the Department.
33        (10)  Personal property sold by a  corporation,  society,
34    association,  foundation, institution, or organization, other
 
HB4974 Enrolled             -7-               LRB9213002LBprA
 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        (11)  Personal property sold to a governmental body, to a
 7    corporation, society, association, foundation, or institution
 8    organized and operated exclusively for charitable, religious,
 9    or educational purposes, or to a not-for-profit  corporation,
10    society,    association,    foundation,    institution,    or
11    organization  that  has  no compensated officers or employees
12    and  that  is  organized  and  operated  primarily  for   the
13    recreation  of  persons  55  years of age or older. A limited
14    liability company may qualify for the  exemption  under  this
15    paragraph  only if the limited liability company is organized
16    and operated exclusively for  educational  purposes.  On  and
17    after July 1, 1987, however, no entity otherwise eligible for
18    this exemption shall make tax-free purchases unless it has an
19    active identification number issued by the Department.
20        (12)  Personal  property  sold to interstate carriers for
21    hire for use as rolling stock moving in  interstate  commerce
22    or  to lessors under leases of one year or longer executed or
23    in effect at the time of purchase by interstate carriers  for
24    hire  for  use as rolling stock moving in interstate commerce
25    and equipment  operated  by  a  telecommunications  provider,
26    licensed  as  a  common carrier by the Federal Communications
27    Commission, which is permanently installed in or  affixed  to
28    aircraft moving in interstate commerce.
29        (13)  Proceeds from sales to owners, lessors, or shippers
30    of  tangible personal property that is utilized by interstate
31    carriers  for  hire  for  use  as  rolling  stock  moving  in
32    interstate   commerce   and   equipment   operated    by    a
33    telecommunications  provider, licensed as a common carrier by
34    the Federal Communications Commission, which  is  permanently
 
HB4974 Enrolled             -8-               LRB9213002LBprA
 1    installed  in  or  affixed  to  aircraft moving in interstate
 2    commerce.
 3        (14)  Machinery and equipment that will be  used  by  the
 4    purchaser,  or  a  lessee  of the purchaser, primarily in the
 5    process of  manufacturing  or  assembling  tangible  personal
 6    property  for  wholesale or retail sale or lease, whether the
 7    sale or lease is made directly by the manufacturer or by some
 8    other person, whether the materials used in the  process  are
 9    owned  by  the  manufacturer or some other person, or whether
10    the sale or lease is made apart from or as an incident to the
11    seller's engaging in  the  service  occupation  of  producing
12    machines,  tools,  dies,  jigs,  patterns,  gauges,  or other
13    similar items of no commercial value on special order  for  a
14    particular purchaser.
15        (15)  Proceeds  of  mandatory  service charges separately
16    stated on customers' bills for purchase  and  consumption  of
17    food  and  beverages,  to the extent that the proceeds of the
18    service charge are in fact  turned  over  as  tips  or  as  a
19    substitute for tips to the employees who participate directly
20    in  preparing,  serving,  hosting  or cleaning up the food or
21    beverage function with respect to which the service charge is
22    imposed.
23        (16)  Petroleum products  sold  to  a  purchaser  if  the
24    seller  is prohibited by federal law from charging tax to the
25    purchaser.
26        (17)  Tangible personal property sold to a common carrier
27    by rail or motor that receives the physical possession of the
28    property in Illinois and that  transports  the  property,  or
29    shares  with  another common carrier in the transportation of
30    the property, out of Illinois on a standard uniform  bill  of
31    lading  showing  the seller of the property as the shipper or
32    consignor of the property to a destination outside  Illinois,
33    for use outside Illinois.
34        (18)  Legal  tender,  currency,  medallions,  or  gold or
 
HB4974 Enrolled             -9-               LRB9213002LBprA
 1    silver  coinage  issued  by  the  State  of   Illinois,   the
 2    government of the United States of America, or the government
 3    of any foreign country, and bullion.
 4        (19)  Oil  field  exploration,  drilling,  and production
 5    equipment, including (i) rigs and parts of rigs, rotary rigs,
 6    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
 7    goods,  including  casing  and drill strings, (iii) pumps and
 8    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
 9    individual   replacement  part  for  oil  field  exploration,
10    drilling, and production equipment, and  (vi)  machinery  and
11    equipment  purchased  for lease; but excluding motor vehicles
12    required to be registered under the Illinois Vehicle Code.
13        (20)  Photoprocessing machinery and equipment,  including
14    repair  and  replacement  parts, both new and used, including
15    that  manufactured  on  special  order,  certified   by   the
16    purchaser  to  be  used  primarily  for  photoprocessing, and
17    including photoprocessing machinery and  equipment  purchased
18    for lease.
19        (21)  Coal   exploration,   mining,  offhighway  hauling,
20    processing, maintenance, and reclamation equipment, including
21    replacement parts  and  equipment,  and  including  equipment
22    purchased for lease, but excluding motor vehicles required to
23    be registered under the Illinois Vehicle Code.
24        (22)  Fuel  and  petroleum products sold to or used by an
25    air  carrier,  certified  by  the  carrier  to  be  used  for
26    consumption, shipment, or  storage  in  the  conduct  of  its
27    business  as an air common carrier, for a flight destined for
28    or returning from a location or locations outside the  United
29    States  without  regard  to  previous  or subsequent domestic
30    stopovers.
31        (23)  A  transaction  in  which  the  purchase  order  is
32    received by a florist who is located  outside  Illinois,  but
33    who has a florist located in Illinois deliver the property to
34    the purchaser or the purchaser's donee in Illinois.
 
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 1        (24)  Fuel  consumed  or  used in the operation of ships,
 2    barges, or vessels that are used  primarily  in  or  for  the
 3    transportation  of  property or the conveyance of persons for
 4    hire on rivers  bordering  on  this  State  if  the  fuel  is
 5    delivered  by  the  seller to the purchaser's barge, ship, or
 6    vessel while it is afloat upon that bordering river.
 7        (25)  A motor vehicle sold in this State to a nonresident
 8    even though the motor vehicle is delivered to the nonresident
 9    in this State, if the motor vehicle is not to  be  titled  in
10    this  State,  and  if  a drive-away driveaway decal permit is
11    issued to the motor vehicle as provided in Section  3-603  of
12    the Illinois Vehicle Code or if the nonresident purchaser has
13    vehicle  registration plates to transfer to the motor vehicle
14    upon returning to his or her home state.  The issuance of the
15    drive-away driveaway decal permit or having the  out-of-state
16    registration plates to be transferred is prima facie evidence
17    that the motor vehicle will not be titled in this State.
18        (26)  Semen used for artificial insemination of livestock
19    for direct agricultural production.
20        (27)  Horses, or interests in horses, registered with and
21    meeting  the  requirements  of  any of the Arabian Horse Club
22    Registry of America, Appaloosa Horse Club,  American  Quarter
23    Horse  Association,  United  States  Trotting Association, or
24    Jockey Club, as appropriate, used for purposes of breeding or
25    racing for prizes.
26        (28)  Computers and communications equipment utilized for
27    any hospital purpose and equipment  used  in  the  diagnosis,
28    analysis,  or treatment of hospital patients sold to a lessor
29    who leases the equipment, under a lease of one year or longer
30    executed or in effect at the  time  of  the  purchase,  to  a
31    hospital  that  has  been  issued  an  active  tax  exemption
32    identification  number  by the Department under Section 1g of
33    this Act.
34        (29)  Personal property sold to a lessor who  leases  the
 
HB4974 Enrolled             -11-              LRB9213002LBprA
 1    property,  under a lease of one year or longer executed or in
 2    effect at the time of the purchase, to  a  governmental  body
 3    that  has  been issued an active tax exemption identification
 4    number by the Department under Section 1g of this Act.
 5        (30)  Beginning with taxable years  ending  on  or  after
 6    December  31, 1995 and ending with taxable years ending on or
 7    before December 31, 2004, personal property that  is  donated
 8    for  disaster  relief  to  be  used  in  a State or federally
 9    declared disaster area in Illinois or bordering Illinois by a
10    manufacturer or retailer that is registered in this State  to
11    a   corporation,   society,   association,   foundation,   or
12    institution  that  has  been  issued  a  sales  tax exemption
13    identification number by the Department that assists  victims
14    of the disaster who reside within the declared disaster area.
15        (31)  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 used in
18    the performance of  infrastructure  repairs  in  this  State,
19    including  but  not  limited  to municipal roads and streets,
20    access roads, bridges,  sidewalks,  waste  disposal  systems,
21    water  and  sewer  line  extensions,  water  distribution and
22    purification facilities, storm water drainage  and  retention
23    facilities, and sewage treatment facilities, resulting from a
24    State or federally declared disaster in Illinois or bordering
25    Illinois  when  such  repairs  are  initiated  on  facilities
26    located  in  the declared disaster area within 6 months after
27    the disaster.
28        (32)  Beginning July 1, 1999, game or game birds sold  at
29    a  "game  breeding  and  hunting preserve area" or an "exotic
30    game hunting area" as those terms are used  in  the  Wildlife
31    Code or at a hunting enclosure approved through rules adopted
32    by  the  Department  of Natural Resources.  This paragraph is
33    exempt from the provisions of Section 2-70.
34        (33)  A motor vehicle, as that term is defined in Section
 
HB4974 Enrolled             -12-              LRB9213002LBprA
 1    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
 2    corporation, limited liability company, society, association,
 3    foundation,   or   institution  that  is  determined  by  the
 4    Department to  be  organized  and  operated  exclusively  for
 5    educational  purposes.   For  purposes  of this exemption, "a
 6    corporation, limited liability company, society, association,
 7    foundation, or institution organized and operated exclusively
 8    for educational  purposes"  means  all  tax-supported  public
 9    schools, private schools that offer systematic instruction in
10    useful  branches  of  learning  by  methods  common to public
11    schools  and  that  compare  favorably  in  their  scope  and
12    intensity with the course of study presented in tax-supported
13    schools, and vocational or technical  schools  or  institutes
14    organized  and  operated  exclusively  to provide a course of
15    study of not less than  6  weeks  duration  and  designed  to
16    prepare  individuals to follow a trade or to pursue a manual,
17    technical, mechanical, industrial,  business,  or  commercial
18    occupation.
19        (34)  Beginning  January  1,  2000,   personal  property,
20    including  food, purchased through fundraising events for the
21    benefit of  a  public  or  private  elementary  or  secondary
22    school,  a  group  of  those  schools,  or one or more school
23    districts if the events are sponsored by an entity recognized
24    by the school district that consists primarily of  volunteers
25    and  includes  parents  and  teachers of the school children.
26    This paragraph does not apply to fundraising events  (i)  for
27    the benefit of private home instruction or (ii) for which the
28    fundraising  entity  purchases  the personal property sold at
29    the events from another individual or entity  that  sold  the
30    property  for the purpose of resale by the fundraising entity
31    and that profits from the sale  to  the  fundraising  entity.
32    This paragraph is exempt from the provisions of Section 2-70.
33        (35)  Beginning  January 1, 2000 and through December 31,
34    2001, new or used automatic vending machines that prepare and
 
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 1    serve hot food and beverages,  including  coffee,  soup,  and
 2    other  items,  and  replacement  parts  for  these  machines.
 3    Beginning  January  1,  2002, machines and parts for machines
 4    used  in  commercial,  coin-operated  amusement  and  vending
 5    business if a use or occupation tax  is  paid  on  the  gross
 6    receipts   derived   from   the   use   of   the  commercial,
 7    coin-operated amusement and vending machines. This  paragraph
 8    is exempt from the provisions of Section 2-70.
 9        (36)  Beginning  on the effective date of this amendatory
10    Act   of   the   92nd   General   Assembly,   computers   and
11    communications equipment utilized for  any  hospital  purpose
12    and  equipment  used in the diagnosis, analysis, or treatment
13    of  hospital  patients  sold  to  a  lessor  who  leases  the
14    equipment, under a lease of one year or longer executed or in
15    effect at the time of the purchase, to a  hospital  that  has
16    been  issued an active tax exemption identification number by
17    the Department under Section 1g of this Act.  This  paragraph
18    is exempt from the provisions of Section 2-70.
19        (37)  Beginning  on the effective date of this amendatory
20    Act of the 92nd General Assembly, personal property sold to a
21    lessor who leases the property, under a lease of one year  or
22    longer  executed or in effect at the time of the purchase, to
23    a governmental body  that  has  been  issued  an  active  tax
24    exemption  identification  number  by  the  Department  under
25    Section  1g  of  this Act.  This paragraph is exempt from the
26    provisions of Section 2-70.
27        (38) (36)  Beginning  on  January   1,   2002,   tangible
28    personal  property  purchased  from an Illinois retailer by a
29    taxpayer engaged  in  centralized  purchasing  activities  in
30    Illinois  who will, upon receipt of the property in Illinois,
31    temporarily store  the  property  in  Illinois  (i)  for  the
32    purpose  of  subsequently  transporting it outside this State
33    for use or consumption thereafter solely outside  this  State
34    or  (ii)  for  the purpose of being processed, fabricated, or
 
HB4974 Enrolled             -14-              LRB9213002LBprA
 1    manufactured into, attached to, or  incorporated  into  other
 2    tangible  personal  property  to  be transported outside this
 3    State and thereafter used or  consumed  solely  outside  this
 4    State.   The  Director  of  Revenue  shall, pursuant to rules
 5    adopted  in  accordance  with  the  Illinois   Administrative
 6    Procedure  Act,  issue  a  permit  to  any  taxpayer  in good
 7    standing  with  the  Department  who  is  eligible  for   the
 8    exemption  under this paragraph (38) (36).  The permit issued
 9    under this paragraph (38) (36) shall authorize the holder, to
10    the extent and in the manner specified in the  rules  adopted
11    under this Act, to purchase tangible personal property from a
12    retailer   exempt   from  the  taxes  imposed  by  this  Act.
13    Taxpayers shall maintain all necessary books and  records  to
14    substantiate  the  use  and  consumption of all such tangible
15    personal property outside of the State of Illinois.
16    (Source: P.A. 91-51,  eff.  6-30-99;  91-200,  eff.  7-20-99;
17    91-439,  eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637, eff.
18    8-20-99; 91-644, eff. 8-20-99; 92-16,  eff.  6-28-01;  92-35,
19    eff.  7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff. 8-10-01;
20    92-484, eff. 8-23-01; 92-488, eff. 8-23-01; revised 1-15-02.)

21        Section 15.  The Illinois  Vehicle  Code  is  amended  by
22    changing  Sections  3-403,  3-413,  3-603,  3-605, 3-701, and
23    3-811 as follows:

24        (625 ILCS 5/3-403) (from Ch. 95 1/2, par. 3-403)
25        Sec. 3-403.  Trip and Short-term permits.
26        (a)  The Secretary of State may issue a short-term permit
27    to operate a nonregistered first or second  division  vehicle
28    within  the State of Illinois for a period of not more than 7
29    5 days. Any second division vehicle operating on such  permit
30    may operate only on empty weight.  The fee for the short-term
31    permit shall be $6.
32        This  permit  may  also  be  issued to operate an unladen
 
HB4974 Enrolled             -15-              LRB9213002LBprA
 1    registered vehicle  which  is  suspended  under  the  Vehicle
 2    Emissions  Inspection  Law  and  allow it to be driven on the
 3    roads and highways of the State in order to  be  repaired  or
 4    when travelling to and from an emissions inspection station.
 5        (b)  The  Secretary  of  State may, subject to reciprocal
 6    agreements, arrangements or declarations made or entered into
 7    pursuant to Section 3-402, 3-402.4 or by  rule,  provide  for
 8    and  issue  registration  permits  for  the  use  of Illinois
 9    highways by vehicles of the second division on an  occasional
10    basis  or  for  a  specific  and  special  short-term use, in
11    compliance with rules  and  regulations  promulgated  by  the
12    Secretary of State, and upon payment of the prescribed fee as
13    follows:
14        One-trip permits.  A registration permit for one trip, or
15    one  round-trip into and out of Illinois, for a period not to
16    exceed 72  consecutive  hours  or  3  calendar  days  may  be
17    provided, for a fee as prescribed in Section 3-811.
18        One-Month permits.  A registration permit for 30 days may
19    be  provided  for  a fee of $13 for registration plus 1/10 of
20    the flat weight tax.  The minimum fee for such  permit  shall
21    be $31.
22        In-transit  permits.   A registration permit for one trip
23    may be provided for vehicles in transit by the  driveaway  or
24    towaway  method  and  operated by a transporter in compliance
25    with the Illinois Motor Carrier of Property Law, for a fee as
26    prescribed in Section 3-811.
27        Illinois Temporary Apportionment  Authorization  Permits.
28    An apportionment authorization permit for forty-five days for
29    the immediate operation of a vehicle upon application for and
30    prior  to  receiving  apportioned  credentials  or interstate
31    credentials from the State of Illinois.   The  fee  for  such
32    permit shall be $3.
33        Illinois   Temporary  Prorate  Authorization  Permit.   A
34    prorate authorization permit  for  forty-five  days  for  the
 
HB4974 Enrolled             -16-              LRB9213002LBprA
 1    immediate  operation  of  a  vehicle upon application for and
 2    prior  to  receiving  prorate   credentials   or   interstate
 3    credentials  from  the  State  of Illinois.  The fee for such
 4    permit shall be $3.
 5        (c)  The Secretary of State shall promulgate by such rule
 6    or regulation, schedules of fees and taxes for  such  permits
 7    and  in  computing  the  amount or amounts due, may round off
 8    such amount to the nearest full dollar amount.
 9        (d)  The Secretary of State shall further  prescribe  the
10    form   of   application  and  permit  and  may  require  such
11    information and  data  as  necessary  and  proper,  including
12    confirming  the  status  or identity of the applicant and the
13    vehicle in question.
14        (e)  Rules or regulations promulgated by the Secretary of
15    State under this Section shall  provide  for  reasonable  and
16    proper limitations and restrictions governing the application
17    for  and  issuance  and use of permits, and shall provide for
18    the number of permits per vehicle or per applicant, so as  to
19    preclude  evasion  of annual registration requirements as may
20    be required by this Act.
21        (f)  Any  permit  under  this  Section  is   subject   to
22    suspension or revocation under this Act, and in addition, any
23    such permit is subject to suspension or revocation should the
24    Secretary  of  State determine that the vehicle identified in
25    any permit should be properly registered in Illinois.  In the
26    event any such permit is suspended or revoked, the permit  is
27    then  null  and void, may not be re-instated, nor is a refund
28    therefor available.  The vehicle identified  in  such  permit
29    may  not  thereafter  be  operated  in Illinois without being
30    properly registered as provided in this Chapter.
31    (Source: P.A. 91-37, eff. 7-1-99.)

32        (625 ILCS 5/3-413) (from Ch. 95 1/2, par. 3-413)
33        Sec. 3-413.  Display of registration plates, registration
 
HB4974 Enrolled             -17-              LRB9213002LBprA
 1    stickers and drive-away driveway decal permits.
 2        (a)  Registration plates issued for a motor vehicle other
 3    than  a  motorcycle,  trailer,  semitrailer,   truck-tractor,
 4    apportioned  bus,  or  apportioned  truck  shall  be attached
 5    thereto,  one  in  the  front  and  one  in  the  rear.   The
 6    registration  plate  issued  for  a  motorcycle,  trailer  or
 7    semitrailer required  to  be  registered  hereunder  and  any
 8    apportionment  plate  issued to a bus under the provisions of
 9    this  Code  shall  be  attached  to  the  rear  thereof.  The
10    registration  plate  issued  for  a   truck-tractor   or   an
11    apportioned  truck  required to be registered hereunder shall
12    be attached to the front thereof.
13        (b)  Every registration  plate  shall  at  all  times  be
14    securely fastened in a horizontal position to the vehicle for
15    which  it  is issued so as to prevent the plate from swinging
16    and at a height of not less than 12 inches from  the  ground,
17    measuring  from  the  bottom  of  such  plate, in a place and
18    position to be clearly visible and shall be maintained  in  a
19    condition to be clearly legible, free from any materials that
20    would  obstruct  the visibility of the plate,  including, but
21    not limited to,  glass  covers  and  tinted  plastic  covers.
22    Clear  plastic  covers are permissible as long as they remain
23    clear and do not  obstruct  the  visibility  of  the  plates.
24    Registration  stickers  issued  as evidence of renewed annual
25    registration shall be  attached  to  registration  plates  as
26    required by the Secretary of State, and be clearly visible at
27    all times.
28        (c)  Every   drive-away   driveway  decal  permit  issued
29    pursuant to this Code shall be firmly attached to the  inside
30    windshield  of  the  motor  vehicle  in  the  such  a  manner
31    prescribed  by  the  Secretary  of  State.  that it cannot be
32    removed without being destroyed.  If a drive-away  permit  is
33    such  decal  permits  are  affixed  to a motor vehicle in any
34    other manner the permit shall be void and of no effect.
 
HB4974 Enrolled             -18-              LRB9213002LBprA
 1        (d)  The Illinois  prorate  decal  issued  to  a  foreign
 2    registered  vehicle  part  of a fleet prorated or apportioned
 3    with Illinois, shall be displayed on a registration plate and
 4    displayed on the front of such vehicle in the same manner  as
 5    an Illinois registration plate.
 6        (e)  The  registration  plate  issued  for  a camper body
 7    mounted on a truck displaying registration  plates  shall  be
 8    attached to the rear of the camper body.
 9        (f)  No  person  shall  operate a vehicle, nor permit the
10    operation of a vehicle, upon which is displayed  an  Illinois
11    registration plate, plates or registration stickers after the
12    termination  of  the  registration period for which issued or
13    after the expiration date set pursuant to Sections 3-414  and
14    3-414.1 of this Code.
15    (Source: P.A. 89-245, eff. 1-1-96; 89-375, eff. 8-18-95.)

16        (625 ILCS 5/3-603) (from Ch. 95 1/2, par. 3-603)
17        Sec.  3-603.  Application  for drive-away driveaway decal
18    permits.
19        (a)  A dealer who has sold a vehicle of a type  otherwise
20    required  to be registered under this Act to a nonresident of
21    this State who does not have currently valid registration  in
22    his home state, may provide for the operation of such vehicle
23    without  registration  from the place of sale to the place of
24    destination outside of the State of Illinois,  by  issuing  a
25    drive-away  permit  in the manner prescribed by the Secretary
26    of State endorsing the date of  sale  on  a  driveaway  decal
27    permit  containing  the  dealer's  name,  address and license
28    number and by affixing the permit decal to  such  vehicle  in
29    the  manner  prescribed  by the Secretary of State in Section
30    3-413. Any vehicle being operated pursuant  to  a  drive-away
31    driveaway  decal permit may not be used for any other purpose
32    and such permits shall be effective only for a period of 7 10
33    days from the date of sale.
 
HB4974 Enrolled             -19-              LRB9213002LBprA
 1        (b)  Any dealer may make application to the Secretary  of
 2    State  upon  the  appropriate  form  for drive-away driveaway
 3    decal permits for motor vehicles sold by such  dealer.  Along
 4    with  such  application  each applicant shall submit proof of
 5    his status as a bona fide dealer and any other information as
 6    may be required by the Secretary of State. A non-resident who
 7    has purchased a motor vehicle from a  person  who  is  not  a
 8    dealer,  may  likewise  apply to the Secretary of State for a
 9    drive-away driveaway  decal  permit  for  display  upon  such
10    vehicle  while  being  driven  from  Illinois to the State of
11    residence of the applicant. Along with such application,  the
12    applicant   shall  submit  proof  of  his  non-residence  and
13    eligibility for a reciprocal exemption from  registration  in
14    Illinois.
15        All  drive-away driveaway decal permits issued under such
16    application shall bear a distinguishing number and such other
17    features as may be required by the Secretary of State.
18    (Source: P.A. 80-1459.)

19        (625 ILCS 5/3-605) (from Ch. 95 1/2, par. 3-605)
20        Sec. 3-605. Manufacturers, engine and driveline component
21    manufacturers,  transporters,  repossessors  and  dealers  to
22    maintain records.
23        Every  manufacturer,  engine  and   driveline   component
24    manufacturer, repossessor, transporter or dealer shall keep a
25    written  record  of  the  persons  to  whom  such  drive-away
26    driveaway decal permits or special plates are assigned, which
27    record  shall  be open to inspection by any public officer or
28    any employee of the Secretary of State.
29    (Source: P.A. 76-2136.)

30        (625 ILCS 5/3-701) (from Ch. 95 1/2, par. 3-701)
31        Sec. 3-701. Operation of  vehicles  without  evidence  of
32    registration  -  Operation under mileage plates when odometer
 
HB4974 Enrolled             -20-              LRB9213002LBprA
 1    broken or disconnected.
 2        No person shall operate, nor  shall  an  owner  knowingly
 3    permit to be operated, upon any highway unless there shall be
 4    attached  thereto  and displayed thereon when and as required
 5    by law, proper  evidence  of  registration  in  Illinois,  as
 6    follows:
 7        (1)  A  vehicle  required to be registered in Illinois. A
 8    current and valid Illinois registration sticker  or  stickers
 9    and  plate  or  plates, or an Illinois temporary registration
10    permit, or a drive-away driveaway decal or in-transit permit,
11    issued therefor by the Secretary of State; or
12        (2)  A vehicle eligible for Reciprocity.  A  current  and
13    valid   reciprocal   foreign  registration  plate  or  plates
14    properly issued to such vehicle or a  temporary  registration
15    issued  therefor,  by the reciprocal State, and, in addition,
16    when required by the Secretary, a current and valid  Illinois
17    Reciprocity  Permit  or  Prorate Decal issued therefor by the
18    Secretary of State; or except as otherwise expressly provided
19    for in this Chapter.
20        No person shall operate, nor shall  any  owner  knowingly
21    permit to be operated, any vehicle of the second division for
22    which  the  owner has made an election to pay the mileage tax
23    in lieu of the annual flat weight tax, at any time  when  the
24    odometer  of  such  vehicle  is broken or disconnected, or is
25    inoperable or not operating.
26    (Source: P.A. 81-886.)

27        (625 ILCS 5/3-811) (from Ch. 95 1/2, par. 3-811)
28        Sec. 3-811. Drive-away Driveaway decals and other permits
29    - Fees.
30        (a)  Dealers  may  obtain  drive-away   driveaway   decal
31    permits for use as provided in this Code, for a fee of $6 per
32    permit.
33        (b)  Transporters   may   obtain   one-trip  permits  for
 
HB4974 Enrolled             -21-              LRB9213002LBprA
 1    vehicles in transit for use as provided in this Code,  for  a
 2    fee of $6 per permit.
 3        (c)  Non-residents   may  likewise  obtain  a  drive-away
 4    driveaway decal permit from the Secretary of State to  export
 5    a  motor  vehicle  purchased in Illinois, for a fee of $6 per
 6    permit.
 7        (d)  One-trip permits may be obtained for  an  occasional
 8    single  trip  by  a  vehicle  as  provided in this Code, upon
 9    payment of a fee of $19.
10        (e)  One month permits may likewise be obtained  for  the
11    fees  and taxes prescribed in this Code and as promulgated by
12    the Secretary of State.
13    (Source: P.A. 91-37, eff. 7-1-99.)

14        Section 99.  Effective date.  This Act takes effect  upon
15    becoming law.

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