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92_SB0617enr
SB617 Enrolled LRB9205192SMdv
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17 Illinois county fair association for use in conducting,
18 operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit arts
20 or cultural organization that establishes, by proof required
21 by the Department by rule, that it has received an exemption
22 under Section 501(c)(3) of the Internal Revenue Code and that
23 is organized and operated for the presentation or support of
24 arts or cultural programming, activities, or services. These
25 organizations include, but are not limited to, music and
26 dramatic arts organizations such as symphony orchestras and
27 theatrical groups, arts and cultural service organizations,
28 local arts councils, visual arts organizations, and media
29 arts organizations.
30 (4) Personal property purchased by a governmental body,
31 by a corporation, society, association, foundation, or
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1 institution organized and operated exclusively for
2 charitable, religious, or educational purposes, or by a
3 not-for-profit corporation, society, association, foundation,
4 institution, or organization that has no compensated officers
5 or employees and that is organized and operated primarily for
6 the recreation of persons 55 years of age or older. A limited
7 liability company may qualify for the exemption under this
8 paragraph only if the limited liability company is organized
9 and operated exclusively for educational purposes. On and
10 after July 1, 1987, however, no entity otherwise eligible for
11 this exemption shall make tax-free purchases unless it has an
12 active exemption identification number issued by the
13 Department.
14 (5) A passenger car that is a replacement vehicle to the
15 extent that the purchase price of the car is subject to the
16 Replacement Vehicle Tax.
17 (6) Graphic arts machinery and equipment, including
18 repair and replacement parts, both new and used, and
19 including that manufactured on special order, certified by
20 the purchaser to be used primarily for graphic arts
21 production, and including machinery and equipment purchased
22 for lease.
23 (7) Farm chemicals.
24 (8) Legal tender, currency, medallions, or gold or
25 silver coinage issued by the State of Illinois, the
26 government of the United States of America, or the government
27 of any foreign country, and bullion.
28 (9) Personal property purchased from a teacher-sponsored
29 student organization affiliated with an elementary or
30 secondary school located in Illinois.
31 (10) A motor vehicle of the first division, a motor
32 vehicle of the second division that is a self-contained motor
33 vehicle designed or permanently converted to provide living
34 quarters for recreational, camping, or travel use, with
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1 direct walk through to the living quarters from the driver's
2 seat, or a motor vehicle of the second division that is of
3 the van configuration designed for the transportation of not
4 less than 7 nor more than 16 passengers, as defined in
5 Section 1-146 of the Illinois Vehicle Code, that is used for
6 automobile renting, as defined in the Automobile Renting
7 Occupation and Use Tax Act.
8 (11) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (11). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
34 and other such equipment.
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1 Farm machinery and equipment also includes computers,
2 sensors, software, and related equipment used primarily in
3 the computer-assisted operation of production agriculture
4 facilities, equipment, and activities such as, but not
5 limited to, the collection, monitoring, and correlation of
6 animal and crop data for the purpose of formulating animal
7 diets and agricultural chemicals. This item (11) is exempt
8 from the provisions of Section 3-90.
9 (12) Fuel and petroleum products sold to or used by an
10 air common carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (13) Proceeds of mandatory service charges separately
17 stated on customers' bills for the purchase and consumption
18 of food and beverages purchased at retail from a retailer, to
19 the extent that the proceeds of the service charge are in
20 fact turned over as tips or as a substitute for tips to the
21 employees who participate directly in preparing, serving,
22 hosting or cleaning up the food or beverage function with
23 respect to which the service charge is imposed.
24 (14) Oil field exploration, drilling, and production
25 equipment, including (i) rigs and parts of rigs, rotary rigs,
26 cable tool rigs, and workover rigs, (ii) pipe and tubular
27 goods, including casing and drill strings, (iii) pumps and
28 pump-jack units, (iv) storage tanks and flow lines, (v) any
29 individual replacement part for oil field exploration,
30 drilling, and production equipment, and (vi) machinery and
31 equipment purchased for lease; but excluding motor vehicles
32 required to be registered under the Illinois Vehicle Code.
33 (15) Photoprocessing machinery and equipment, including
34 repair and replacement parts, both new and used, including
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1 that manufactured on special order, certified by the
2 purchaser to be used primarily for photoprocessing, and
3 including photoprocessing machinery and equipment purchased
4 for lease.
5 (16) Coal exploration, mining, offhighway hauling,
6 processing, maintenance, and reclamation equipment, including
7 replacement parts and equipment, and including equipment
8 purchased for lease, but excluding motor vehicles required to
9 be registered under the Illinois Vehicle Code.
10 (17) Distillation machinery and equipment, sold as a
11 unit or kit, assembled or installed by the retailer,
12 certified by the user to be used only for the production of
13 ethyl alcohol that will be used for consumption as motor fuel
14 or as a component of motor fuel for the personal use of the
15 user, and not subject to sale or resale.
16 (18) Manufacturing and assembling machinery and
17 equipment used primarily in the process of manufacturing or
18 assembling tangible personal property for wholesale or retail
19 sale or lease, whether that sale or lease is made directly by
20 the manufacturer or by some other person, whether the
21 materials used in the process are owned by the manufacturer
22 or some other person, or whether that sale or lease is made
23 apart from or as an incident to the seller's engaging in the
24 service occupation of producing machines, tools, dies, jigs,
25 patterns, gauges, or other similar items of no commercial
26 value on special order for a particular purchaser.
27 (19) Personal property delivered to a purchaser or
28 purchaser's donee inside Illinois when the purchase order for
29 that personal property was received by a florist located
30 outside Illinois who has a florist located inside Illinois
31 deliver the personal property.
32 (20) Semen used for artificial insemination of livestock
33 for direct agricultural production.
34 (21) Horses, or interests in horses, registered with and
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1 meeting the requirements of any of the Arabian Horse Club
2 Registry of America, Appaloosa Horse Club, American Quarter
3 Horse Association, United States Trotting Association, or
4 Jockey Club, as appropriate, used for purposes of breeding or
5 racing for prizes.
6 (22) Computers and communications equipment utilized for
7 any hospital purpose and equipment used in the diagnosis,
8 analysis, or treatment of hospital patients purchased by a
9 lessor who leases the equipment, under a lease of one year or
10 longer executed or in effect at the time the lessor would
11 otherwise be subject to the tax imposed by this Act, to a
12 hospital that has been issued an active tax exemption
13 identification number by the Department under Section 1g of
14 the Retailers' Occupation Tax Act. If the equipment is
15 leased in a manner that does not qualify for this exemption
16 or is used in any other nonexempt manner, the lessor shall be
17 liable for the tax imposed under this Act or the Service Use
18 Tax Act, as the case may be, based on the fair market value
19 of the property at the time the nonqualifying use occurs. No
20 lessor shall collect or attempt to collect an amount (however
21 designated) that purports to reimburse that lessor for the
22 tax imposed by this Act or the Service Use Tax Act, as the
23 case may be, if the tax has not been paid by the lessor. If
24 a lessor improperly collects any such amount from the lessee,
25 the lessee shall have a legal right to claim a refund of that
26 amount from the lessor. If, however, that amount is not
27 refunded to the lessee for any reason, the lessor is liable
28 to pay that amount to the Department.
29 (23) Personal property purchased by a lessor who leases
30 the property, under a lease of one year or longer executed
31 or in effect at the time the lessor would otherwise be
32 subject to the tax imposed by this Act, to a governmental
33 body that has been issued an active sales tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act. If the property is leased
2 in a manner that does not qualify for this exemption or used
3 in any other nonexempt manner, the lessor shall be liable for
4 the tax imposed under this Act or the Service Use Tax Act, as
5 the case may be, based on the fair market value of the
6 property at the time the nonqualifying use occurs. No lessor
7 shall collect or attempt to collect an amount (however
8 designated) that purports to reimburse that lessor for the
9 tax imposed by this Act or the Service Use Tax Act, as the
10 case may be, if the tax has not been paid by the lessor. If
11 a lessor improperly collects any such amount from the lessee,
12 the lessee shall have a legal right to claim a refund of that
13 amount from the lessor. If, however, that amount is not
14 refunded to the lessee for any reason, the lessor is liable
15 to pay that amount to the Department.
16 (24) Beginning with taxable years ending on or after
17 December 31, 1995 and ending with taxable years ending on or
18 before December 31, 2004, personal property that is donated
19 for disaster relief to be used in a State or federally
20 declared disaster area in Illinois or bordering Illinois by a
21 manufacturer or retailer that is registered in this State to
22 a corporation, society, association, foundation, or
23 institution that has been issued a sales tax exemption
24 identification number by the Department that assists victims
25 of the disaster who reside within the declared disaster area.
26 (25) Beginning with taxable years ending on or after
27 December 31, 1995 and ending with taxable years ending on or
28 before December 31, 2004, personal property that is used in
29 the performance of infrastructure repairs in this State,
30 including but not limited to municipal roads and streets,
31 access roads, bridges, sidewalks, waste disposal systems,
32 water and sewer line extensions, water distribution and
33 purification facilities, storm water drainage and retention
34 facilities, and sewage treatment facilities, resulting from a
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1 State or federally declared disaster in Illinois or bordering
2 Illinois when such repairs are initiated on facilities
3 located in the declared disaster area within 6 months after
4 the disaster.
5 (26) Beginning July 1, 1999, game or game birds
6 purchased at a "game breeding and hunting preserve area" or
7 an "exotic game hunting area" as those terms are used in the
8 Wildlife Code or at a hunting enclosure approved through
9 rules adopted by the Department of Natural Resources. This
10 paragraph is exempt from the provisions of Section 3-90.
11 (27) A motor vehicle, as that term is defined in Section
12 1-146 of the Illinois Vehicle Code, that is donated to a
13 corporation, limited liability company, society, association,
14 foundation, or institution that is determined by the
15 Department to be organized and operated exclusively for
16 educational purposes. For purposes of this exemption, "a
17 corporation, limited liability company, society, association,
18 foundation, or institution organized and operated exclusively
19 for educational purposes" means all tax-supported public
20 schools, private schools that offer systematic instruction in
21 useful branches of learning by methods common to public
22 schools and that compare favorably in their scope and
23 intensity with the course of study presented in tax-supported
24 schools, and vocational or technical schools or institutes
25 organized and operated exclusively to provide a course of
26 study of not less than 6 weeks duration and designed to
27 prepare individuals to follow a trade or to pursue a manual,
28 technical, mechanical, industrial, business, or commercial
29 occupation.
30 (28) Beginning January 1, 2000, personal property,
31 including food, purchased through fundraising events for the
32 benefit of a public or private elementary or secondary
33 school, a group of those schools, or one or more school
34 districts if the events are sponsored by an entity recognized
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1 by the school district that consists primarily of volunteers
2 and includes parents and teachers of the school children.
3 This paragraph does not apply to fundraising events (i) for
4 the benefit of private home instruction or (ii) for which the
5 fundraising entity purchases the personal property sold at
6 the events from another individual or entity that sold the
7 property for the purpose of resale by the fundraising entity
8 and that profits from the sale to the fundraising entity.
9 This paragraph is exempt from the provisions of Section 3-90.
10 (29) Beginning January 1, 2000, new or used automatic
11 vending machines that prepare and serve hot food and
12 beverages, including coffee, soup, and other items, and
13 replacement parts for these machines. This paragraph is
14 exempt from the provisions of Section 3-90.
15 (30) Food for human consumption that is to be consumed
16 off the premises where it is sold (other than alcoholic
17 beverages, soft drinks, and food that has been prepared for
18 immediate consumption) and prescription and nonprescription
19 medicines, drugs, medical appliances, and insulin, urine
20 testing materials, syringes, and needles used by diabetics,
21 for human use, when purchased for use by a person receiving
22 medical assistance under Article 5 of the Illinois Public Aid
23 Code who resides in a licensed long-term care facility, as
24 defined in the Nursing Home Care Act.
25 (31) Beginning on the effective date of this amendatory
26 Act of the 92nd General Assembly, computers and
27 communications equipment utilized for any hospital purpose
28 and equipment used in the diagnosis, analysis, or treatment
29 of hospital patients purchased by a lessor who leases the
30 equipment, under a lease of one year or longer executed or in
31 effect at the time the lessor would otherwise be subject to
32 the tax imposed by this Act, to a hospital that has been
33 issued an active tax exemption identification number by the
34 Department under Section 1g of the Retailers' Occupation Tax
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1 Act. If the equipment is leased in a manner that does not
2 qualify for this exemption or is used in any other nonexempt
3 manner, the lessor shall be liable for the tax imposed under
4 this Act or the Service Use Tax Act, as the case may be,
5 based on the fair market value of the property at the time
6 the nonqualifying use occurs. No lessor shall collect or
7 attempt to collect an amount (however designated) that
8 purports to reimburse that lessor for the tax imposed by this
9 Act or the Service Use Tax Act, as the case may be, if the
10 tax has not been paid by the lessor. If a lessor improperly
11 collects any such amount from the lessee, the lessee shall
12 have a legal right to claim a refund of that amount from the
13 lessor. If, however, that amount is not refunded to the
14 lessee for any reason, the lessor is liable to pay that
15 amount to the Department. This paragraph is exempt from the
16 provisions of Section 3-90.
17 (32) Beginning on the effective date of this amendatory
18 Act of the 92nd General Assembly, personal property purchased
19 by a lessor who leases the property, under a lease of one
20 year or longer executed or in effect at the time the lessor
21 would otherwise be subject to the tax imposed by this Act, to
22 a governmental body that has been issued an active sales tax
23 exemption identification number by the Department under
24 Section 1g of the Retailers' Occupation Tax Act. If the
25 property is leased in a manner that does not qualify for this
26 exemption or used in any other nonexempt manner, the lessor
27 shall be liable for the tax imposed under this Act or the
28 Service Use Tax Act, as the case may be, based on the fair
29 market value of the property at the time the nonqualifying
30 use occurs. No lessor shall collect or attempt to collect an
31 amount (however designated) that purports to reimburse that
32 lessor for the tax imposed by this Act or the Service Use Tax
33 Act, as the case may be, if the tax has not been paid by the
34 lessor. If a lessor improperly collects any such amount from
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1 the lessee, the lessee shall have a legal right to claim a
2 refund of that amount from the lessor. If, however, that
3 amount is not refunded to the lessee for any reason, the
4 lessor is liable to pay that amount to the Department. This
5 paragraph is exempt from the provisions of Section 3-90.
6 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
7 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
8 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
9 eff. 8-20-99; 91-901, eff. 1-1-01.)
10 Section 10. The Service Use Tax Act is amended by
11 changing Section 3-5 as follows:
12 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
13 Sec. 3-5. Exemptions. Use of the following tangible
14 personal property is exempt from the tax imposed by this Act:
15 (1) Personal property purchased from a corporation,
16 society, association, foundation, institution, or
17 organization, other than a limited liability company, that is
18 organized and operated as a not-for-profit service enterprise
19 for the benefit of persons 65 years of age or older if the
20 personal property was not purchased by the enterprise for the
21 purpose of resale by the enterprise.
22 (2) Personal property purchased by a non-profit Illinois
23 county fair association for use in conducting, operating, or
24 promoting the county fair.
25 (3) Personal property purchased by a not-for-profit arts
26 or cultural organization that establishes, by proof required
27 by the Department by rule, that it has received an exemption
28 under Section 501(c)(3) of the Internal Revenue Code and that
29 is organized and operated for the presentation or support of
30 arts or cultural programming, activities, or services. These
31 organizations include, but are not limited to, music and
32 dramatic arts organizations such as symphony orchestras and
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1 theatrical groups, arts and cultural service organizations,
2 local arts councils, visual arts organizations, and media
3 arts organizations.
4 (4) 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 (5) Graphic arts machinery and equipment, including
9 repair and replacement parts, both new and used, and
10 including that manufactured on special order or purchased for
11 lease, certified by the purchaser to be used primarily for
12 graphic arts production.
13 (6) Personal property purchased from a teacher-sponsored
14 student organization affiliated with an elementary or
15 secondary school located in Illinois.
16 (7) Farm machinery and equipment, both new and used,
17 including that manufactured on special order, certified by
18 the purchaser to be used primarily for production agriculture
19 or State or federal agricultural programs, including
20 individual replacement parts for the machinery and equipment,
21 including machinery and equipment purchased for lease, and
22 including implements of husbandry defined in Section 1-130 of
23 the Illinois Vehicle Code, farm machinery and agricultural
24 chemical and fertilizer spreaders, and nurse wagons required
25 to be registered under Section 3-809 of the Illinois Vehicle
26 Code, but excluding other motor vehicles required to be
27 registered under the Illinois Vehicle Code. Horticultural
28 polyhouses or hoop houses used for propagating, growing, or
29 overwintering plants shall be considered farm machinery and
30 equipment under this item (7). Agricultural chemical tender
31 tanks and dry boxes shall include units sold separately from
32 a motor vehicle required to be licensed and units sold
33 mounted on a motor vehicle required to be licensed if the
34 selling price of the tender is separately stated.
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1 Farm machinery and equipment shall include precision
2 farming equipment that is installed or purchased to be
3 installed on farm machinery and equipment including, but not
4 limited to, tractors, harvesters, sprayers, planters,
5 seeders, or spreaders. Precision farming equipment includes,
6 but is not limited to, soil testing sensors, computers,
7 monitors, software, global positioning and mapping systems,
8 and other such equipment.
9 Farm machinery and equipment also includes computers,
10 sensors, software, and related equipment used primarily in
11 the computer-assisted operation of production agriculture
12 facilities, equipment, and activities such as, but not
13 limited to, the collection, monitoring, and correlation of
14 animal and crop data for the purpose of formulating animal
15 diets and agricultural chemicals. This item (7) is exempt
16 from the provisions of Section 3-75.
17 (8) Fuel and petroleum products sold to or used by an
18 air common carrier, certified by the carrier to be used for
19 consumption, shipment, or storage in the conduct of its
20 business as an air common carrier, for a flight destined for
21 or returning from a location or locations outside the United
22 States without regard to previous or subsequent domestic
23 stopovers.
24 (9) Proceeds of mandatory service charges separately
25 stated on customers' bills for the purchase and consumption
26 of food and beverages acquired as an incident to the purchase
27 of a service from a serviceman, to the extent that the
28 proceeds of the service charge are in fact turned over as
29 tips or as a substitute for tips to the employees who
30 participate directly in preparing, serving, hosting or
31 cleaning up the food or beverage function with respect to
32 which the service charge is imposed.
33 (10) Oil field exploration, drilling, and production
34 equipment, including (i) rigs and parts of rigs, rotary rigs,
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1 cable tool rigs, and workover rigs, (ii) pipe and tubular
2 goods, including casing and drill strings, (iii) pumps and
3 pump-jack units, (iv) storage tanks and flow lines, (v) any
4 individual replacement part for oil field exploration,
5 drilling, and production equipment, and (vi) machinery and
6 equipment purchased for lease; but excluding motor vehicles
7 required to be registered under the Illinois Vehicle Code.
8 (11) Proceeds from the sale of photoprocessing machinery
9 and equipment, including repair and replacement parts, both
10 new and used, including that manufactured on special order,
11 certified by the purchaser to be used primarily for
12 photoprocessing, and including photoprocessing machinery and
13 equipment purchased for lease.
14 (12) Coal exploration, mining, offhighway hauling,
15 processing, maintenance, and reclamation equipment, including
16 replacement parts and equipment, and including equipment
17 purchased for lease, but excluding motor vehicles required to
18 be registered under the Illinois Vehicle Code.
19 (13) Semen used for artificial insemination of livestock
20 for direct agricultural production.
21 (14) Horses, or interests in horses, registered with and
22 meeting the requirements of any of the Arabian Horse Club
23 Registry of America, Appaloosa Horse Club, American Quarter
24 Horse Association, United States Trotting Association, or
25 Jockey Club, as appropriate, used for purposes of breeding or
26 racing for prizes.
27 (15) Computers and communications equipment utilized for
28 any hospital purpose and equipment used in the diagnosis,
29 analysis, or treatment of hospital patients purchased by a
30 lessor who leases the equipment, under a lease of one year or
31 longer executed or in effect at the time the lessor would
32 otherwise be subject to the tax imposed by this Act, to a
33 hospital that has been issued an active tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act. If the equipment is leased
2 in a manner that does not qualify for this exemption or is
3 used in any other non-exempt manner, the lessor shall be
4 liable for the tax imposed under this Act or the Use Tax Act,
5 as the case may be, based on the fair market value of the
6 property at the time the non-qualifying use occurs. No
7 lessor shall collect or attempt to collect an amount (however
8 designated) that purports to reimburse that lessor for the
9 tax imposed by this Act or the Use Tax Act, as the case may
10 be, if the tax has not been paid by the lessor. If a lessor
11 improperly collects any such amount from the lessee, the
12 lessee shall have a legal right to claim a refund of that
13 amount from the lessor. If, however, that amount is not
14 refunded to the lessee for any reason, the lessor is liable
15 to pay that amount to the Department.
16 (16) Personal property purchased by a lessor who leases
17 the property, under a lease of one year or longer executed or
18 in effect at the time the lessor would otherwise be subject
19 to the tax imposed by this Act, to a governmental body that
20 has been issued an active tax exemption identification number
21 by the Department under Section 1g of the Retailers'
22 Occupation Tax Act. If the property is leased in a manner
23 that does not qualify for this exemption or is used in any
24 other non-exempt manner, the lessor shall be liable for the
25 tax imposed under this Act or the Use Tax Act, as the case
26 may be, based on the fair market value of the property at the
27 time the non-qualifying use occurs. No lessor shall collect
28 or attempt to collect an amount (however designated) that
29 purports to reimburse that lessor for the tax imposed by this
30 Act or the Use Tax Act, as the case may be, if the tax has
31 not been paid by the lessor. If a lessor improperly collects
32 any such amount from the lessee, the lessee shall have a
33 legal right to claim a refund of that amount from the lessor.
34 If, however, that amount is not refunded to the lessee for
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1 any reason, the lessor is liable to pay that amount to the
2 Department.
3 (17) Beginning with taxable years ending on or after
4 December 31, 1995 and ending with taxable years ending on or
5 before December 31, 2004, personal property that is donated
6 for disaster relief to be used in a State or federally
7 declared disaster area in Illinois or bordering Illinois by a
8 manufacturer or retailer that is registered in this State to
9 a corporation, society, association, foundation, or
10 institution that has been issued a sales tax exemption
11 identification number by the Department that assists victims
12 of the disaster who reside within the declared disaster area.
13 (18) Beginning with taxable years ending on or after
14 December 31, 1995 and ending with taxable years ending on or
15 before December 31, 2004, personal property that is used in
16 the performance of infrastructure repairs in this State,
17 including but not limited to municipal roads and streets,
18 access roads, bridges, sidewalks, waste disposal systems,
19 water and sewer line extensions, water distribution and
20 purification facilities, storm water drainage and retention
21 facilities, and sewage treatment facilities, resulting from a
22 State or federally declared disaster in Illinois or bordering
23 Illinois when such repairs are initiated on facilities
24 located in the declared disaster area within 6 months after
25 the disaster.
26 (19) Beginning July 1, 1999, game or game birds
27 purchased at a "game breeding and hunting preserve area" or
28 an "exotic game hunting area" as those terms are used in the
29 Wildlife Code or at a hunting enclosure approved through
30 rules adopted by the Department of Natural Resources. This
31 paragraph is exempt from the provisions of Section 3-75.
32 (20) (19) A motor vehicle, as that term is defined in
33 Section 1-146 of the Illinois Vehicle Code, that is donated
34 to a corporation, limited liability company, society,
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1 association, foundation, or institution that is determined by
2 the Department to be organized and operated exclusively for
3 educational purposes. For purposes of this exemption, "a
4 corporation, limited liability company, society, association,
5 foundation, or institution organized and operated exclusively
6 for educational purposes" means all tax-supported public
7 schools, private schools that offer systematic instruction in
8 useful branches of learning by methods common to public
9 schools and that compare favorably in their scope and
10 intensity with the course of study presented in tax-supported
11 schools, and vocational or technical schools or institutes
12 organized and operated exclusively to provide a course of
13 study of not less than 6 weeks duration and designed to
14 prepare individuals to follow a trade or to pursue a manual,
15 technical, mechanical, industrial, business, or commercial
16 occupation.
17 (21) (20) Beginning January 1, 2000, personal property,
18 including food, purchased through fundraising events for the
19 benefit of a public or private elementary or secondary
20 school, a group of those schools, or one or more school
21 districts if the events are sponsored by an entity recognized
22 by the school district that consists primarily of volunteers
23 and includes parents and teachers of the school children.
24 This paragraph does not apply to fundraising events (i) for
25 the benefit of private home instruction or (ii) for which the
26 fundraising entity purchases the personal property sold at
27 the events from another individual or entity that sold the
28 property for the purpose of resale by the fundraising entity
29 and that profits from the sale to the fundraising entity.
30 This paragraph is exempt from the provisions of Section 3-75.
31 (22) (19) Beginning January 1, 2000, new or used
32 automatic vending machines that prepare and serve hot food
33 and beverages, including coffee, soup, and other items, and
34 replacement parts for these machines. This paragraph is
SB617 Enrolled -18- LRB9205192SMdv
1 exempt from the provisions of Section 3-75.
2 (23) Beginning on the effective date of this amendatory
3 Act of the 92nd General Assembly, computers and
4 communications equipment utilized for any hospital purpose
5 and equipment used in the diagnosis, analysis, or treatment
6 of hospital patients purchased by a lessor who leases the
7 equipment, under a lease of one year or longer executed or in
8 effect at the time the lessor would otherwise be subject to
9 the tax imposed by this Act, to a hospital that has been
10 issued an active tax exemption identification number by the
11 Department under Section 1g of the Retailers' Occupation Tax
12 Act. If the equipment is leased in a manner that does not
13 qualify for this exemption or is used in any other nonexempt
14 manner, the lessor shall be liable for the tax imposed under
15 this Act or the Use Tax Act, as the case may be, based on the
16 fair market value of the property at the time the
17 nonqualifying use occurs. No lessor shall collect or attempt
18 to collect an amount (however designated) that purports to
19 reimburse that lessor for the tax imposed by this Act or the
20 Use Tax Act, as the case may be, if the tax has not been paid
21 by the lessor. If a lessor improperly collects any such
22 amount from the lessee, the lessee shall have a legal right
23 to claim a refund of that amount from the lessor. If,
24 however, that amount is not refunded to the lessee for any
25 reason, the lessor is liable to pay that amount to the
26 Department. This paragraph is exempt from the provisions of
27 Section 3-75.
28 (24) Beginning on the effective date of this amendatory
29 Act of the 92nd General Assembly, personal property purchased
30 by a lessor who leases the property, under a lease of one
31 year or longer executed or in effect at the time the lessor
32 would otherwise be subject to the tax imposed by this Act, to
33 a governmental body that has been issued an active tax
34 exemption identification number by the Department under
SB617 Enrolled -19- LRB9205192SMdv
1 Section 1g of the Retailers' Occupation Tax Act. If the
2 property is leased in a manner that does not qualify for this
3 exemption or is used in any other nonexempt manner, the
4 lessor shall be liable for the tax imposed under this Act or
5 the Use Tax Act, as the case may be, based on the fair market
6 value of the property at the time the nonqualifying use
7 occurs. No lessor shall collect or attempt to collect an
8 amount (however designated) that purports to reimburse that
9 lessor for the tax imposed by this Act or the Use Tax Act, as
10 the case may be, if the tax has not been paid by the lessor.
11 If a lessor improperly collects any such amount from the
12 lessee, the lessee shall have a legal right to claim a refund
13 of that amount from the lessor. If, however, that amount is
14 not refunded to the lessee for any reason, the lessor is
15 liable to pay that amount to the Department. This paragraph
16 is exempt from the provisions of Section 3-75.
17 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
18 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
19 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
20 eff. 8-20-99; revised 9-29-99.)
21 Section 15. The Service Occupation Tax Act is amended by
22 changing Section 3-5 as follows:
23 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
24 Sec. 3-5. Exemptions. The following tangible personal
25 property is exempt from the tax imposed by this Act:
26 (1) Personal property sold by a corporation, society,
27 association, foundation, institution, or organization, other
28 than a limited liability company, that is organized and
29 operated as a not-for-profit service enterprise for the
30 benefit of persons 65 years of age or older if the personal
31 property was not purchased by the enterprise for the purpose
32 of resale by the enterprise.
SB617 Enrolled -20- LRB9205192SMdv
1 (2) Personal property purchased by a not-for-profit
2 Illinois county fair association for use in conducting,
3 operating, or promoting the county fair.
4 (3) Personal property purchased by any not-for-profit
5 arts or cultural organization that establishes, by proof
6 required by the Department by rule, that it has received an
7 exemption under Section 501(c)(3) of the Internal Revenue
8 Code and that is organized and operated for the presentation
9 or support of arts or cultural programming, activities, or
10 services. These organizations include, but are not limited
11 to, music and dramatic arts organizations such as symphony
12 orchestras and theatrical groups, arts and cultural service
13 organizations, local arts councils, visual arts
14 organizations, and media arts organizations.
15 (4) Legal tender, currency, medallions, or gold or
16 silver coinage issued by the State of Illinois, the
17 government of the United States of America, or the government
18 of any foreign country, and bullion.
19 (5) Graphic arts machinery and equipment, including
20 repair and replacement parts, both new and used, and
21 including that manufactured on special order or purchased for
22 lease, certified by the purchaser to be used primarily for
23 graphic arts production.
24 (6) Personal property sold by a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (7) Farm machinery and equipment, both new and used,
28 including that manufactured on special order, certified by
29 the purchaser to be used primarily for production agriculture
30 or State or federal agricultural programs, including
31 individual replacement parts for the machinery and equipment,
32 including machinery and equipment purchased for lease, and
33 including implements of husbandry defined in Section 1-130 of
34 the Illinois Vehicle Code, farm machinery and agricultural
SB617 Enrolled -21- LRB9205192SMdv
1 chemical and fertilizer spreaders, and nurse wagons required
2 to be registered under Section 3-809 of the Illinois Vehicle
3 Code, but excluding other motor vehicles required to be
4 registered under the Illinois Vehicle Code. Horticultural
5 polyhouses or hoop houses used for propagating, growing, or
6 overwintering plants shall be considered farm machinery and
7 equipment under this item (7). Agricultural chemical tender
8 tanks and dry boxes shall include units sold separately from
9 a motor vehicle required to be licensed and units sold
10 mounted on a motor vehicle required to be licensed if the
11 selling price of the tender is separately stated.
12 Farm machinery and equipment shall include precision
13 farming equipment that is installed or purchased to be
14 installed on farm machinery and equipment including, but not
15 limited to, tractors, harvesters, sprayers, planters,
16 seeders, or spreaders. Precision farming equipment includes,
17 but is not limited to, soil testing sensors, computers,
18 monitors, software, global positioning and mapping systems,
19 and other such equipment.
20 Farm machinery and equipment also includes computers,
21 sensors, software, and related equipment used primarily in
22 the computer-assisted operation of production agriculture
23 facilities, equipment, and activities such as, but not
24 limited to, the collection, monitoring, and correlation of
25 animal and crop data for the purpose of formulating animal
26 diets and agricultural chemicals. This item (7) is exempt
27 from the provisions of Section 3-55.
28 (8) Fuel and petroleum products sold to or used by an
29 air common 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.
SB617 Enrolled -22- LRB9205192SMdv
1 (9) Proceeds of mandatory service charges separately
2 stated on customers' bills for the purchase and consumption
3 of food and beverages, to the extent that the proceeds of the
4 service charge are in fact turned over as tips or as a
5 substitute for tips to the employees who participate directly
6 in preparing, serving, hosting or cleaning up the food or
7 beverage function with respect to which the service charge is
8 imposed.
9 (10) Oil field exploration, drilling, and production
10 equipment, including (i) rigs and parts of rigs, rotary rigs,
11 cable tool rigs, and workover rigs, (ii) pipe and tubular
12 goods, including casing and drill strings, (iii) pumps and
13 pump-jack units, (iv) storage tanks and flow lines, (v) any
14 individual replacement part for oil field exploration,
15 drilling, and production equipment, and (vi) machinery and
16 equipment purchased for lease; but excluding motor vehicles
17 required to be registered under the Illinois Vehicle Code.
18 (11) Photoprocessing machinery and equipment, including
19 repair and replacement parts, both new and used, including
20 that manufactured on special order, certified by the
21 purchaser to be used primarily for photoprocessing, and
22 including photoprocessing machinery and equipment purchased
23 for lease.
24 (12) Coal exploration, mining, offhighway hauling,
25 processing, maintenance, and reclamation equipment, including
26 replacement parts and equipment, and including equipment
27 purchased for lease, but excluding motor vehicles required to
28 be registered under the Illinois Vehicle Code.
29 (13) Food for human consumption that is to be consumed
30 off the premises where it is sold (other than alcoholic
31 beverages, soft drinks and food that has been prepared for
32 immediate consumption) and prescription and non-prescription
33 medicines, drugs, medical appliances, and insulin, urine
34 testing materials, syringes, and needles used by diabetics,
SB617 Enrolled -23- LRB9205192SMdv
1 for human use, when purchased for use by a person receiving
2 medical assistance under Article 5 of the Illinois Public Aid
3 Code who resides in a licensed long-term care facility, as
4 defined in the Nursing Home Care Act.
5 (14) Semen used for artificial insemination of livestock
6 for direct agricultural production.
7 (15) Horses, or interests in horses, registered with and
8 meeting the requirements of any of the Arabian Horse Club
9 Registry of America, Appaloosa Horse Club, American Quarter
10 Horse Association, United States Trotting Association, or
11 Jockey Club, as appropriate, used for purposes of breeding or
12 racing for prizes.
13 (16) Computers and communications equipment utilized for
14 any hospital purpose and equipment used in the diagnosis,
15 analysis, or treatment of hospital patients sold to a lessor
16 who leases the equipment, under a lease of one year or longer
17 executed or in effect at the time of the purchase, to a
18 hospital that has been issued an active tax exemption
19 identification number by the Department under Section 1g of
20 the Retailers' Occupation Tax Act.
21 (17) Personal property sold to a lessor who leases the
22 property, under a lease of one year or longer executed or in
23 effect at the time of the purchase, to a governmental body
24 that has been issued an active tax exemption identification
25 number by the Department under Section 1g of the Retailers'
26 Occupation Tax Act.
27 (18) Beginning with taxable years ending on or after
28 December 31, 1995 and ending with taxable years ending on or
29 before December 31, 2004, personal property that is donated
30 for disaster relief to be used in a State or federally
31 declared disaster area in Illinois or bordering Illinois by a
32 manufacturer or retailer that is registered in this State to
33 a corporation, society, association, foundation, or
34 institution that has been issued a sales tax exemption
SB617 Enrolled -24- LRB9205192SMdv
1 identification number by the Department that assists victims
2 of the disaster who reside within the declared disaster area.
3 (19) Beginning with taxable years ending on or after
4 December 31, 1995 and ending with taxable years ending on or
5 before December 31, 2004, personal property that is used in
6 the performance of infrastructure repairs in this State,
7 including but not limited to municipal roads and streets,
8 access roads, bridges, sidewalks, waste disposal systems,
9 water and sewer line extensions, water distribution and
10 purification facilities, storm water drainage and retention
11 facilities, and sewage treatment facilities, resulting from a
12 State or federally declared disaster in Illinois or bordering
13 Illinois when such repairs are initiated on facilities
14 located in the declared disaster area within 6 months after
15 the disaster.
16 (20) Beginning July 1, 1999, game or game birds sold at
17 a "game breeding and hunting preserve area" or an "exotic
18 game hunting area" as those terms are used in the Wildlife
19 Code or at a hunting enclosure approved through rules adopted
20 by the Department of Natural Resources. This paragraph is
21 exempt from the provisions of Section 3-55.
22 (21) (20) A motor vehicle, as that term is defined in
23 Section 1-146 of the Illinois Vehicle Code, that is donated
24 to a corporation, limited liability company, society,
25 association, foundation, or institution that is determined by
26 the Department to be organized and operated exclusively for
27 educational purposes. For purposes of this exemption, "a
28 corporation, limited liability company, society, association,
29 foundation, or institution organized and operated exclusively
30 for educational purposes" means all tax-supported public
31 schools, private schools that offer systematic instruction in
32 useful branches of learning by methods common to public
33 schools and that compare favorably in their scope and
34 intensity with the course of study presented in tax-supported
SB617 Enrolled -25- LRB9205192SMdv
1 schools, and vocational or technical schools or institutes
2 organized and operated exclusively to provide a course of
3 study of not less than 6 weeks duration and designed to
4 prepare individuals to follow a trade or to pursue a manual,
5 technical, mechanical, industrial, business, or commercial
6 occupation.
7 (22) (21) Beginning January 1, 2000, personal property,
8 including food, purchased through fundraising events for the
9 benefit of a public or private elementary or secondary
10 school, a group of those schools, or one or more school
11 districts if the events are sponsored by an entity recognized
12 by the school district that consists primarily of volunteers
13 and includes parents and teachers of the school children.
14 This paragraph does not apply to fundraising events (i) for
15 the benefit of private home instruction or (ii) for which the
16 fundraising entity purchases the personal property sold at
17 the events from another individual or entity that sold the
18 property for the purpose of resale by the fundraising entity
19 and that profits from the sale to the fundraising entity.
20 This paragraph is exempt from the provisions of Section 3-55.
21 (23) (20) Beginning January 1, 2000, new or used
22 automatic vending machines that prepare and serve hot food
23 and beverages, including coffee, soup, and other items, and
24 replacement parts for these machines. This paragraph is
25 exempt from the provisions of Section 3-55.
26 (24) Beginning on the effective date of this amendatory
27 Act of the 92nd General Assembly, computers and
28 communications equipment utilized for any hospital purpose
29 and equipment used in the diagnosis, analysis, or treatment
30 of hospital patients sold to a lessor who leases the
31 equipment, under a lease of one year or longer executed or in
32 effect at the time of the purchase, to a hospital that has
33 been issued an active tax exemption identification number by
34 the Department under Section 1g of the Retailers' Occupation
SB617 Enrolled -26- LRB9205192SMdv
1 Tax Act. This paragraph is exempt from the provisions of
2 Section 3-55.
3 (25) Beginning on the effective date of this amendatory
4 Act of the 92nd General Assembly, personal property sold to a
5 lessor who leases the property, under a lease of one year or
6 longer executed or in effect at the time of the purchase, to
7 a governmental body that has been issued an active tax
8 exemption identification number by the Department under
9 Section 1g of the Retailers' Occupation Tax Act. This
10 paragraph is exempt from the provisions of Section 3-55.
11 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
12 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
13 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637,
14 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)
15 Section 20. The Retailers' Occupation Tax Act is amended
16 by changing Section 2-5 as follows:
17 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
18 Sec. 2-5. Exemptions. Gross receipts from proceeds from
19 the sale of the following tangible personal property are
20 exempt from the tax imposed by this Act:
21 (1) Farm chemicals.
22 (2) Farm machinery and equipment, both new and used,
23 including that manufactured on special order, certified by
24 the purchaser to be used primarily for production agriculture
25 or State or federal agricultural programs, including
26 individual replacement parts for the machinery and equipment,
27 including machinery and equipment purchased for lease, and
28 including implements of husbandry defined in Section 1-130 of
29 the Illinois Vehicle Code, farm machinery and agricultural
30 chemical and fertilizer spreaders, and nurse wagons required
31 to be registered under Section 3-809 of the Illinois Vehicle
32 Code, but excluding other motor vehicles required to be
SB617 Enrolled -27- LRB9205192SMdv
1 registered under the Illinois Vehicle Code. Horticultural
2 polyhouses or hoop houses used for propagating, growing, or
3 overwintering plants shall be considered farm machinery and
4 equipment under this item (2). Agricultural chemical tender
5 tanks and dry boxes shall include units sold separately from
6 a motor vehicle required to be licensed and units sold
7 mounted on a motor vehicle required to be licensed, if the
8 selling price of the tender is separately stated.
9 Farm machinery and equipment shall include precision
10 farming equipment that is installed or purchased to be
11 installed on farm machinery and equipment including, but not
12 limited to, tractors, harvesters, sprayers, planters,
13 seeders, or spreaders. Precision farming equipment includes,
14 but is not limited to, soil testing sensors, computers,
15 monitors, software, global positioning and mapping systems,
16 and other such equipment.
17 Farm machinery and equipment also includes computers,
18 sensors, software, and related equipment used primarily in
19 the computer-assisted operation of production agriculture
20 facilities, equipment, and activities such as, but not
21 limited to, the collection, monitoring, and correlation of
22 animal and crop data for the purpose of formulating animal
23 diets and agricultural chemicals. This item (7) is exempt
24 from the provisions of Section 2-70.
25 (3) Distillation machinery and equipment, sold as a unit
26 or kit, assembled or installed by the retailer, certified by
27 the user to be used only for the production of ethyl alcohol
28 that will be used for consumption as motor fuel or as a
29 component of motor fuel for the personal use of the user, and
30 not subject to sale or resale.
31 (4) Graphic arts machinery and equipment, including
32 repair and replacement parts, both new and used, and
33 including that manufactured on special order or purchased for
34 lease, certified by the purchaser to be used primarily for
SB617 Enrolled -28- LRB9205192SMdv
1 graphic arts production.
2 (5) A motor vehicle of the first division, a motor
3 vehicle of the second division that is a self-contained motor
4 vehicle designed or permanently converted to provide living
5 quarters for recreational, camping, or travel use, with
6 direct walk through access to the living quarters from the
7 driver's seat, or a motor vehicle of the second division that
8 is of the van configuration designed for the transportation
9 of not less than 7 nor more than 16 passengers, as defined in
10 Section 1-146 of the Illinois Vehicle Code, that is used for
11 automobile renting, as defined in the Automobile Renting
12 Occupation and Use Tax Act.
13 (6) Personal property sold by a teacher-sponsored
14 student organization affiliated with an elementary or
15 secondary school located in Illinois.
16 (7) Proceeds of that portion of the selling price of a
17 passenger car the sale of which is subject to the Replacement
18 Vehicle Tax.
19 (8) Personal property sold to an Illinois county fair
20 association for use in conducting, operating, or promoting
21 the county fair.
22 (9) Personal property sold to a not-for-profit arts or
23 cultural organization that establishes, by proof required by
24 the Department by rule, that it has received an exemption
25 under Section 501(c)(3) of the Internal Revenue Code and that
26 is organized and operated for the presentation or support of
27 arts or cultural programming, activities, or services. These
28 organizations include, but are not limited to, music and
29 dramatic arts organizations such as symphony orchestras and
30 theatrical groups, arts and cultural service organizations,
31 local arts councils, visual arts organizations, and media
32 arts organizations.
33 (10) Personal property sold by a corporation, society,
34 association, foundation, institution, or organization, other
SB617 Enrolled -29- LRB9205192SMdv
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
SB617 Enrolled -30- LRB9205192SMdv
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
SB617 Enrolled -31- LRB9205192SMdv
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.
SB617 Enrolled -32- LRB9205192SMdv
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 driveaway decal permit is issued to the
11 motor vehicle as provided in Section 3-603 of the Illinois
12 Vehicle Code or if the nonresident purchaser has vehicle
13 registration plates to transfer to the motor vehicle upon
14 returning to his or her home state. The issuance of the
15 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
SB617 Enrolled -33- LRB9205192SMdv
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) (32) A motor vehicle, as that term is defined in
SB617 Enrolled -34- LRB9205192SMdv
1 Section 1-146 of the Illinois Vehicle Code, that is donated
2 to a corporation, limited liability company, society,
3 association, foundation, or institution that is determined by
4 the 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) (33) 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) (32) Beginning January 1, 2000, new or used
34 automatic vending machines that prepare and serve hot food
SB617 Enrolled -35- LRB9205192SMdv
1 and beverages, including coffee, soup, and other items, and
2 replacement parts for these machines. This paragraph is
3 exempt from the provisions of Section 2-70.
4 (36) Beginning on the effective date of this amendatory
5 Act of the 92nd General Assembly, computers and
6 communications equipment utilized for any hospital purpose
7 and equipment used in the diagnosis, analysis, or treatment
8 of hospital patients sold to a lessor who leases the
9 equipment, under a lease of one year or longer executed or in
10 effect at the time of the purchase, to a hospital that has
11 been issued an active tax exemption identification number by
12 the Department under Section 1g of this Act. This paragraph
13 is exempt from the provisions of Section 2-70.
14 (37) Beginning on the effective date of this amendatory
15 Act of the 92nd General Assembly, personal property sold to a
16 lessor who leases the property, under a lease of one year or
17 longer executed or in effect at the time of the purchase, to
18 a governmental body that has been issued an active tax
19 exemption identification number by the Department under
20 Section 1g of this Act. This paragraph is exempt from the
21 provisions of Section 2-70.
22 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98;
23 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff.
24 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533,
25 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99;
26 revised 9-28-99.)
27 Section 99. Effective date. This Act takes effect upon
28 becoming law.
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