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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3343 Introduced , by Rep. Kay Hatcher SYNOPSIS AS INTRODUCED:
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| 35 ILCS 105/3-5 | | 35 ILCS 120/2-5 | | 625 ILCS 5/3-1001 | from Ch. 95 1/2, par. 3-1001 |
| Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the motor vehicle privilege tax provisions of the Illinois Vehicle Code. Exempts from these taxes motor vehicles sold to an Illinois resident who is a service member on active duty or returning to Illinois from active duty and who applies for registration in Illinois while on active duty or within one year after leaving active duty.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Use Tax Act is amended by changing Section |
| 5 | | 3-5 as follows:
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| 6 | | (35 ILCS 105/3-5)
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| 7 | | Sec. 3-5. Exemptions. Use of the following tangible |
| 8 | | personal property
is exempt from the tax imposed by this Act:
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| 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
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| 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.
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| 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.
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| 19 | | (3) Personal property purchased by a not-for-profit
arts or |
| 20 | | cultural organization that establishes, by proof required by |
| 21 | | the
Department by
rule, that it has received an exemption under |
| 22 | | Section 501(c)(3) of the Internal
Revenue Code and that is |
| 23 | | organized and operated primarily for the
presentation
or |
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| 1 | | support of arts or cultural programming, activities, or |
| 2 | | services. These
organizations include, but are not limited to, |
| 3 | | music and dramatic arts
organizations such as symphony |
| 4 | | orchestras and theatrical groups, arts and
cultural service |
| 5 | | organizations, local arts councils, visual arts organizations,
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| 6 | | and media arts organizations.
On and after the effective date |
| 7 | | of this amendatory Act of the 92nd General
Assembly, however, |
| 8 | | an entity otherwise eligible for this exemption shall not
make |
| 9 | | tax-free purchases unless it has an active identification |
| 10 | | number issued by
the Department.
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| 11 | | (4) Personal property purchased by a governmental body, by |
| 12 | | a
corporation, society, association, foundation, or |
| 13 | | institution organized and
operated exclusively for charitable, |
| 14 | | religious, or educational purposes, or
by a not-for-profit |
| 15 | | corporation, society, association, foundation,
institution, or |
| 16 | | organization that has no compensated officers or employees
and |
| 17 | | that is organized and operated primarily for the recreation of |
| 18 | | persons
55 years of age or older. A limited liability company |
| 19 | | may qualify for the
exemption under this paragraph only if the |
| 20 | | limited liability company is
organized and operated |
| 21 | | exclusively for educational purposes. On and after July
1, |
| 22 | | 1987, however, no entity otherwise eligible for this exemption |
| 23 | | shall make
tax-free purchases unless it has an active exemption |
| 24 | | identification number
issued by the Department.
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| 25 | | (5) Until July 1, 2003, a passenger car that is a |
| 26 | | replacement vehicle to
the extent that the
purchase price of |
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| 1 | | the car is subject to the Replacement Vehicle Tax.
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| 2 | | (6) Until July 1, 2003 and beginning again on September 1, |
| 3 | | 2004 through August 30, 2014, graphic arts machinery and |
| 4 | | equipment, including
repair and replacement
parts, both new and |
| 5 | | used, and including that manufactured on special order,
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| 6 | | certified by the purchaser to be used primarily for graphic |
| 7 | | arts production,
and including machinery and equipment |
| 8 | | purchased for lease.
Equipment includes chemicals or chemicals |
| 9 | | acting as catalysts but only if
the
chemicals or chemicals |
| 10 | | acting as catalysts effect a direct and immediate change
upon a |
| 11 | | graphic arts product.
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| 12 | | (7) Farm chemicals.
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| 13 | | (8) Legal tender, currency, medallions, or gold or silver |
| 14 | | coinage issued by
the State of Illinois, the government of the |
| 15 | | United States of America, or the
government of any foreign |
| 16 | | country, and bullion.
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| 17 | | (9) Personal property purchased from a teacher-sponsored |
| 18 | | student
organization affiliated with an elementary or |
| 19 | | secondary school located in
Illinois.
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| 20 | | (10) A motor vehicle of the first division, a motor vehicle |
| 21 | | of the
second division that is a self-contained motor vehicle |
| 22 | | designed or
permanently converted to provide living quarters |
| 23 | | for recreational, camping,
or travel use, with direct walk |
| 24 | | through to the living quarters from the
driver's seat, or a |
| 25 | | motor vehicle of the second division that is of the
van |
| 26 | | configuration designed for the transportation of not less than |
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| 1 | | 7 nor
more than 16 passengers, as defined in Section 1-146 of |
| 2 | | the Illinois
Vehicle Code, that is used for automobile renting, |
| 3 | | as defined in the
Automobile Renting Occupation and Use Tax |
| 4 | | Act.
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| 5 | | (11) Farm machinery and equipment, both new and used,
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| 6 | | including that manufactured on special order, certified by the |
| 7 | | purchaser
to be used primarily for production agriculture or |
| 8 | | State or federal
agricultural programs, including individual |
| 9 | | replacement parts for
the machinery and equipment, including |
| 10 | | machinery and equipment
purchased
for lease,
and including |
| 11 | | implements of husbandry defined in Section 1-130 of
the |
| 12 | | Illinois Vehicle Code, farm machinery and agricultural |
| 13 | | chemical and
fertilizer spreaders, and nurse wagons required to |
| 14 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
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| 15 | | but excluding other motor
vehicles required to be
registered |
| 16 | | under the Illinois Vehicle Code.
Horticultural polyhouses or |
| 17 | | hoop houses used for propagating, growing, or
overwintering |
| 18 | | plants shall be considered farm machinery and equipment under
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| 19 | | this item (11).
Agricultural chemical tender tanks and dry |
| 20 | | boxes shall include units sold
separately from a motor vehicle |
| 21 | | required to be licensed and units sold mounted
on a motor |
| 22 | | vehicle required to be licensed if the selling price of the |
| 23 | | tender
is separately stated.
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| 24 | | Farm machinery and equipment shall include precision |
| 25 | | farming equipment
that is
installed or purchased to be |
| 26 | | installed on farm machinery and equipment
including, but not |
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| 1 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
| 2 | | or spreaders.
Precision farming equipment includes, but is not |
| 3 | | limited to, soil testing
sensors, computers, monitors, |
| 4 | | software, global positioning
and mapping systems, and other |
| 5 | | such equipment.
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| 6 | | Farm machinery and equipment also includes computers, |
| 7 | | sensors, software, and
related equipment used primarily in the
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| 8 | | computer-assisted operation of production agriculture |
| 9 | | facilities, equipment,
and
activities such as, but not limited |
| 10 | | to,
the collection, monitoring, and correlation of
animal and |
| 11 | | crop data for the purpose of
formulating animal diets and |
| 12 | | agricultural chemicals. This item (11) is exempt
from the |
| 13 | | provisions of
Section 3-90.
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| 14 | | (12) Fuel and petroleum products sold to or used by an air |
| 15 | | common
carrier, certified by the carrier to be used for |
| 16 | | consumption, shipment, or
storage in the conduct of its |
| 17 | | business as an air common carrier, for a
flight destined for or |
| 18 | | returning from a location or locations
outside the United |
| 19 | | States without regard to previous or subsequent domestic
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| 20 | | stopovers.
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| 21 | | (13) Proceeds of mandatory service charges separately
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| 22 | | stated on customers' bills for the purchase and consumption of |
| 23 | | food and
beverages purchased at retail from a retailer, to the |
| 24 | | extent that the proceeds
of the service charge are in fact |
| 25 | | turned over as tips or as a substitute
for tips to the |
| 26 | | employees who participate directly in preparing, serving,
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| 1 | | hosting or cleaning up the food or beverage function with |
| 2 | | respect to which
the service charge is imposed.
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| 3 | | (14) Until July 1, 2003, oil field exploration, drilling, |
| 4 | | and production
equipment,
including (i) rigs and parts of rigs, |
| 5 | | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and |
| 6 | | tubular goods,
including casing and drill strings, (iii) pumps |
| 7 | | and pump-jack units, (iv)
storage tanks and flow lines, (v) any |
| 8 | | individual replacement part for oil
field exploration, |
| 9 | | drilling, and production equipment, and (vi) machinery and
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| 10 | | equipment purchased
for lease; but excluding motor vehicles |
| 11 | | required to be registered under the
Illinois Vehicle Code.
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| 12 | | (15) Photoprocessing machinery and equipment, including |
| 13 | | repair and
replacement parts, both new and used, including that
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| 14 | | manufactured on special order, certified by the purchaser to be |
| 15 | | used
primarily for photoprocessing, and including
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| 16 | | photoprocessing machinery and equipment purchased for lease.
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| 17 | | (16) Until July 1, 2003, and beginning again on the |
| 18 | | effective date of this amendatory Act of the 97th General |
| 19 | | Assembly and thereafter, coal and aggregate exploration, |
| 20 | | mining, offhighway hauling,
processing, maintenance, and |
| 21 | | reclamation equipment,
including replacement parts and |
| 22 | | equipment, and
including equipment purchased for lease, but |
| 23 | | excluding motor
vehicles required to be registered under the |
| 24 | | Illinois Vehicle Code.
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| 25 | | (17) Until July 1, 2003, distillation machinery and |
| 26 | | equipment, sold as a
unit or kit,
assembled or installed by the |
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| 1 | | retailer, certified by the user to be used
only for the |
| 2 | | production of ethyl alcohol that will be used for consumption
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| 3 | | as motor fuel or as a component of motor fuel for the personal |
| 4 | | use of the
user, and not subject to sale or resale.
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| 5 | | (18) Manufacturing and assembling machinery and equipment |
| 6 | | used
primarily in the process of manufacturing or assembling |
| 7 | | tangible
personal property for wholesale or retail sale or |
| 8 | | lease, whether that sale
or lease is made directly by the |
| 9 | | manufacturer or by some other person,
whether the materials |
| 10 | | used in the process are
owned by the manufacturer or some other |
| 11 | | person, or whether that sale or
lease is made apart from or as |
| 12 | | an incident to the seller's engaging in
the service occupation |
| 13 | | of producing machines, tools, dies, jigs,
patterns, gauges, or |
| 14 | | other similar items of no commercial value on
special order for |
| 15 | | a particular purchaser.
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| 16 | | (19) Personal property delivered to a purchaser or |
| 17 | | purchaser's donee
inside Illinois when the purchase order for |
| 18 | | that personal property was
received by a florist located |
| 19 | | outside Illinois who has a florist located
inside Illinois |
| 20 | | deliver the personal property.
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| 21 | | (20) Semen used for artificial insemination of livestock |
| 22 | | for direct
agricultural production.
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| 23 | | (21) Horses, or interests in horses, registered with and |
| 24 | | meeting the
requirements of any of the
Arabian Horse Club |
| 25 | | Registry of America, Appaloosa Horse Club, American Quarter
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| 26 | | Horse Association, United States
Trotting Association, or |
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| 1 | | Jockey Club, as appropriate, used for
purposes of breeding or |
| 2 | | racing for prizes. This item (21) is exempt from the provisions |
| 3 | | of Section 3-90, and the exemption provided for under this item |
| 4 | | (21) applies for all periods beginning May 30, 1995, but no |
| 5 | | claim for credit or refund is allowed on or after January 1, |
| 6 | | 2008
for such taxes paid during the period beginning May 30, |
| 7 | | 2000 and ending on January 1, 2008.
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| 8 | | (22) Computers and communications equipment utilized for |
| 9 | | any
hospital
purpose
and equipment used in the diagnosis,
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| 10 | | analysis, or treatment of hospital patients purchased by a |
| 11 | | lessor who leases
the
equipment, under a lease of one year or |
| 12 | | longer executed or in effect at the
time the lessor would |
| 13 | | otherwise be subject to the tax imposed by this Act, to a
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| 14 | | hospital
that has been issued an active tax exemption |
| 15 | | identification number by
the
Department under Section 1g of the |
| 16 | | Retailers' Occupation Tax Act. If the
equipment is leased in a |
| 17 | | manner that does not qualify for
this exemption or is used in |
| 18 | | any other non-exempt manner, the lessor
shall be liable for the
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| 19 | | tax imposed under this Act or the Service Use Tax Act, as the |
| 20 | | case may
be, based on the fair market value of the property at |
| 21 | | the time the
non-qualifying use occurs. No lessor shall collect |
| 22 | | or attempt to collect an
amount (however
designated) that |
| 23 | | purports to reimburse that lessor for the tax imposed by this
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| 24 | | Act or the Service Use Tax Act, as the case may be, if the tax |
| 25 | | has not been
paid by the lessor. If a lessor improperly |
| 26 | | collects any such amount from the
lessee, the lessee shall have |
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| 1 | | a legal right to claim a refund of that amount
from the lessor. |
| 2 | | If, however, that amount is not refunded to the lessee for
any |
| 3 | | reason, the lessor is liable to pay that amount to the |
| 4 | | Department.
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| 5 | | (23) Personal property purchased by a lessor who leases the
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| 6 | | property, under
a
lease of
one year or longer executed or in |
| 7 | | effect at the time
the lessor would otherwise be subject to the |
| 8 | | tax imposed by this Act,
to a governmental body
that has been |
| 9 | | issued an active sales tax exemption identification number by |
| 10 | | the
Department under Section 1g of the Retailers' Occupation |
| 11 | | Tax Act.
If the
property is leased in a manner that does not |
| 12 | | qualify for
this exemption
or used in any other non-exempt |
| 13 | | manner, the lessor shall be liable for the
tax imposed under |
| 14 | | this Act or the Service Use Tax Act, as the case may
be, based |
| 15 | | on the fair market value of the property at the time the
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| 16 | | non-qualifying use occurs. No lessor shall collect or attempt |
| 17 | | to collect an
amount (however
designated) that purports to |
| 18 | | reimburse that lessor for the tax imposed by this
Act or the |
| 19 | | Service Use Tax Act, as the case may be, if the tax has not been
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| 20 | | paid by the lessor. If a lessor improperly collects any such |
| 21 | | amount from the
lessee, the lessee shall have a legal right to |
| 22 | | claim a refund of that amount
from the lessor. If, however, |
| 23 | | that amount is not refunded to the lessee for
any reason, the |
| 24 | | lessor is liable to pay that amount to the Department.
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| 25 | | (24) Beginning with taxable years ending on or after |
| 26 | | December
31, 1995
and
ending with taxable years ending on or |
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| 1 | | before December 31, 2004,
personal property that is
donated for |
| 2 | | disaster relief to be used in a State or federally declared
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| 3 | | disaster area in Illinois or bordering Illinois by a |
| 4 | | manufacturer or retailer
that is registered in this State to a |
| 5 | | corporation, society, association,
foundation, or institution |
| 6 | | that has been issued a sales tax exemption
identification |
| 7 | | number by the Department that assists victims of the disaster
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| 8 | | who reside within the declared disaster area.
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| 9 | | (25) Beginning with taxable years ending on or after |
| 10 | | December
31, 1995 and
ending with taxable years ending on or |
| 11 | | before December 31, 2004, personal
property that is used in the |
| 12 | | performance of infrastructure repairs in this
State, including |
| 13 | | but not limited to municipal roads and streets, access roads,
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| 14 | | bridges, sidewalks, waste disposal systems, water and sewer |
| 15 | | line extensions,
water distribution and purification |
| 16 | | facilities, storm water drainage and
retention facilities, and |
| 17 | | sewage treatment facilities, resulting from a State
or |
| 18 | | federally declared disaster in Illinois or bordering Illinois |
| 19 | | when such
repairs are initiated on facilities located in the |
| 20 | | declared disaster area
within 6 months after the disaster.
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| 21 | | (26) Beginning July 1, 1999, game or game birds purchased |
| 22 | | at a "game
breeding
and hunting preserve area" as that term is
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| 23 | | used in
the Wildlife Code. This paragraph is exempt from the |
| 24 | | provisions
of
Section 3-90.
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| 25 | | (27) A motor vehicle, as that term is defined in Section |
| 26 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a |
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| 1 | | corporation, limited liability company,
society, association, |
| 2 | | foundation, or institution that is determined by the
Department |
| 3 | | to be organized and operated exclusively for educational |
| 4 | | purposes.
For purposes of this exemption, "a corporation, |
| 5 | | limited liability company,
society, association, foundation, |
| 6 | | or institution organized and operated
exclusively for |
| 7 | | educational purposes" means all tax-supported public schools,
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| 8 | | private schools that offer systematic instruction in useful |
| 9 | | branches of
learning by methods common to public schools and |
| 10 | | that compare favorably in
their scope and intensity with the |
| 11 | | course of study presented in tax-supported
schools, and |
| 12 | | vocational or technical schools or institutes organized and
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| 13 | | operated exclusively to provide a course of study of not less |
| 14 | | than 6 weeks
duration and designed to prepare individuals to |
| 15 | | follow a trade or to pursue a
manual, technical, mechanical, |
| 16 | | industrial, business, or commercial
occupation.
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| 17 | | (28) 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 school, |
| 20 | | a group of those schools, or one or more school
districts if |
| 21 | | the events are
sponsored by an entity recognized by the school |
| 22 | | district that consists
primarily of volunteers and includes
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| 23 | | parents and teachers of the school children. This paragraph |
| 24 | | does not apply
to fundraising
events (i) for the benefit of |
| 25 | | private home instruction or (ii)
for which the fundraising |
| 26 | | entity purchases the personal property sold at
the events from |
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| 1 | | another individual or entity that sold the property for the
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| 2 | | purpose of resale by the fundraising entity and that
profits |
| 3 | | from the sale to the
fundraising entity. This paragraph is |
| 4 | | exempt
from the provisions
of Section 3-90.
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| 5 | | (29) Beginning January 1, 2000 and through December 31, |
| 6 | | 2001, new or
used automatic vending
machines that prepare and |
| 7 | | serve hot food and beverages, including coffee, soup,
and
other |
| 8 | | items, and replacement parts for these machines.
Beginning |
| 9 | | January 1,
2002 and through June 30, 2003, machines and parts |
| 10 | | for machines used in
commercial, coin-operated amusement and |
| 11 | | vending business if a use or occupation
tax is paid on the |
| 12 | | gross receipts derived from the use of the commercial,
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| 13 | | coin-operated amusement and vending machines.
This
paragraph
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| 14 | | is exempt from the provisions of Section 3-90.
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| 15 | | (30) Beginning January 1, 2001 and through June 30, 2016, |
| 16 | | food for human consumption that is to be consumed off the |
| 17 | | premises
where it is sold (other than alcoholic beverages, soft |
| 18 | | drinks, and food that
has been prepared for immediate |
| 19 | | consumption) and prescription and
nonprescription medicines, |
| 20 | | drugs, medical appliances, and insulin, urine
testing |
| 21 | | materials, syringes, and needles used by diabetics, for human |
| 22 | | use, when
purchased for use by a person receiving medical |
| 23 | | assistance under Article V of
the Illinois Public Aid Code who |
| 24 | | resides in a licensed long-term care facility,
as defined in |
| 25 | | the Nursing Home Care Act, or in a licensed facility as defined |
| 26 | | in the ID/DD Community Care Act or the Specialized Mental |
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| 1 | | Health Rehabilitation Act.
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| 2 | | (31) Beginning on
the effective date of this amendatory Act |
| 3 | | of the 92nd General Assembly,
computers and communications |
| 4 | | equipment
utilized for any hospital purpose and equipment used |
| 5 | | in the diagnosis,
analysis, or treatment of hospital patients |
| 6 | | purchased by a lessor who leases
the equipment, under a lease |
| 7 | | of one year or longer executed or in effect at the
time the |
| 8 | | lessor would otherwise be subject to the tax imposed by this |
| 9 | | Act, to a
hospital that has been issued an active tax exemption |
| 10 | | identification number by
the Department under Section 1g of the |
| 11 | | Retailers' Occupation Tax Act. If the
equipment is leased in a |
| 12 | | manner that does not qualify for this exemption or is
used in |
| 13 | | any other nonexempt manner, the lessor shall be liable for the |
| 14 | | tax
imposed under this Act or the Service Use Tax Act, as the |
| 15 | | case may be, based on
the fair market value of the property at |
| 16 | | the time the nonqualifying use
occurs. No lessor shall collect |
| 17 | | or attempt to collect an amount (however
designated) that |
| 18 | | purports to reimburse that lessor for the tax imposed by this
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| 19 | | Act or the Service Use Tax Act, as the case may be, if the tax |
| 20 | | has not been
paid by the lessor. If a lessor improperly |
| 21 | | collects any such amount from the
lessee, the lessee shall have |
| 22 | | a legal right to claim a refund of that amount
from the lessor. |
| 23 | | If, however, that amount is not refunded to the lessee for
any |
| 24 | | reason, the lessor is liable to pay that amount to the |
| 25 | | Department.
This paragraph is exempt from the provisions of |
| 26 | | Section 3-90.
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| 1 | | (32) Beginning on
the effective date of this amendatory Act |
| 2 | | of the 92nd General Assembly,
personal property purchased by a |
| 3 | | lessor who leases the property,
under a lease of one year or |
| 4 | | longer executed or in effect at the time the
lessor would |
| 5 | | otherwise be subject to the tax imposed by this Act, to a
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| 6 | | governmental body that has been issued an active sales tax |
| 7 | | exemption
identification number by the Department under |
| 8 | | Section 1g of the Retailers'
Occupation Tax Act. If the |
| 9 | | property is leased in a manner that does not
qualify for this |
| 10 | | exemption or used in any other nonexempt manner, the lessor
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| 11 | | shall be liable for the tax imposed under this Act or the |
| 12 | | Service Use Tax Act,
as the case may be, based on the fair |
| 13 | | market value of the property at the time
the nonqualifying use |
| 14 | | occurs. No lessor shall collect or attempt to collect
an amount |
| 15 | | (however designated) that purports to reimburse that lessor for |
| 16 | | the
tax imposed by this Act or the Service Use Tax Act, as the |
| 17 | | case may be, if the
tax has not been paid by the lessor. If a |
| 18 | | lessor improperly collects any such
amount from the lessee, the |
| 19 | | lessee shall have a legal right to claim a refund
of that |
| 20 | | amount from the lessor. If, however, that amount is not |
| 21 | | refunded to
the lessee for any reason, the lessor is liable to |
| 22 | | pay that amount to the
Department. This paragraph is exempt |
| 23 | | from the provisions of Section 3-90.
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| 24 | | (33) On and after July 1, 2003 and through June 30, 2004, |
| 25 | | the use in this State of motor vehicles of
the second division |
| 26 | | with a gross vehicle weight in excess of 8,000 pounds and
that |
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| 1 | | are subject to the commercial distribution fee imposed under |
| 2 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July |
| 3 | | 1, 2004 and through June 30, 2005, the use in this State of |
| 4 | | motor vehicles of the second division: (i) with a gross vehicle |
| 5 | | weight rating in excess of 8,000 pounds; (ii) that are subject |
| 6 | | to the commercial distribution fee imposed under Section |
| 7 | | 3-815.1 of the Illinois Vehicle Code; and (iii) that are |
| 8 | | primarily used for commercial purposes. Through June 30, 2005, |
| 9 | | this exemption applies to repair and
replacement parts added |
| 10 | | after the initial purchase of such a motor vehicle if
that |
| 11 | | motor
vehicle is used in a manner that would qualify for the |
| 12 | | rolling stock exemption
otherwise provided for in this Act. For |
| 13 | | purposes of this paragraph, the term "used for commercial |
| 14 | | purposes" means the transportation of persons or property in |
| 15 | | furtherance of any commercial or industrial enterprise, |
| 16 | | whether for-hire or not.
|
| 17 | | (34) Beginning January 1, 2008, tangible personal property |
| 18 | | used in the construction or maintenance of a community water |
| 19 | | supply, as defined under Section 3.145 of the Environmental |
| 20 | | Protection Act, that is operated by a not-for-profit |
| 21 | | corporation that holds a valid water supply permit issued under |
| 22 | | Title IV of the Environmental Protection Act. This paragraph is |
| 23 | | exempt from the provisions of Section 3-90. |
| 24 | | (35) Beginning January 1, 2010, materials, parts, |
| 25 | | equipment, components, and furnishings incorporated into or |
| 26 | | upon an aircraft as part of the modification, refurbishment, |
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| 1 | | completion, replacement, repair, or maintenance of the |
| 2 | | aircraft. This exemption includes consumable supplies used in |
| 3 | | the modification, refurbishment, completion, replacement, |
| 4 | | repair, and maintenance of aircraft, but excludes any |
| 5 | | materials, parts, equipment, components, and consumable |
| 6 | | supplies used in the modification, replacement, repair, and |
| 7 | | maintenance of aircraft engines or power plants, whether such |
| 8 | | engines or power plants are installed or uninstalled upon any |
| 9 | | such aircraft. "Consumable supplies" include, but are not |
| 10 | | limited to, adhesive, tape, sandpaper, general purpose |
| 11 | | lubricants, cleaning solution, latex gloves, and protective |
| 12 | | films. This exemption applies only to those organizations that |
| 13 | | (i) hold an Air Agency Certificate and are empowered to operate |
| 14 | | an approved repair station by the Federal Aviation |
| 15 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
| 16 | | operations in accordance with Part 145 of the Federal Aviation |
| 17 | | Regulations. The exemption does not include aircraft operated |
| 18 | | by a commercial air carrier providing scheduled passenger air |
| 19 | | service pursuant to authority issued under Part 121 or Part 129 |
| 20 | | of the Federal Aviation Regulations. |
| 21 | | (36) Tangible personal property purchased by a |
| 22 | | public-facilities corporation, as described in Section |
| 23 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
| 24 | | constructing or furnishing a municipal convention hall, but |
| 25 | | only if the legal title to the municipal convention hall is |
| 26 | | transferred to the municipality without any further |
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| 1 | | consideration by or on behalf of the municipality at the time |
| 2 | | of the completion of the municipal convention hall or upon the |
| 3 | | retirement or redemption of any bonds or other debt instruments |
| 4 | | issued by the public-facilities corporation in connection with |
| 5 | | the development of the municipal convention hall. This |
| 6 | | exemption includes existing public-facilities corporations as |
| 7 | | provided in Section 11-65-25 of the Illinois Municipal Code. |
| 8 | | This paragraph is exempt from the provisions of Section 3-90. |
| 9 | | (37) A motor vehicle sold to an Illinois resident who is a |
| 10 | | service member on active duty or returning to Illinois from |
| 11 | | active duty and who applies for registration of the motor |
| 12 | | vehicle in Illinois while on active duty or within one year |
| 13 | | after leaving active duty. For purposes of this exemption: |
| 14 | | "active duty" means active duty pursuant to an executive order |
| 15 | | of the President of the United States, an act of the Congress |
| 16 | | of the United States, or an order of the Governor; and "service |
| 17 | | member" means a member of the armed services or reserve forces |
| 18 | | of the United States or a member of the Illinois National |
| 19 | | Guard. |
| 20 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; |
| 21 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. |
| 22 | | 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. |
| 23 | | 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)
|
| 24 | | Section 10. The Retailers' Occupation Tax Act is amended by |
| 25 | | changing Section 2-5 as follows:
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| 1 | | (35 ILCS 120/2-5)
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| 2 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from the |
| 3 | | sale of
the following tangible personal property are exempt |
| 4 | | from the tax imposed
by this Act:
|
| 5 | | (1) Farm chemicals.
|
| 6 | | (2) Farm machinery and equipment, both new and used, |
| 7 | | including that
manufactured on special order, certified by the |
| 8 | | purchaser to be used
primarily for production agriculture or |
| 9 | | State or federal agricultural
programs, including individual |
| 10 | | replacement parts for the machinery and
equipment, including |
| 11 | | machinery and equipment purchased for lease,
and including |
| 12 | | implements of husbandry defined in Section 1-130 of
the |
| 13 | | Illinois Vehicle Code, farm machinery and agricultural |
| 14 | | chemical and
fertilizer spreaders, and nurse wagons required to |
| 15 | | be registered
under Section 3-809 of the Illinois Vehicle Code,
|
| 16 | | but
excluding other motor vehicles required to be registered |
| 17 | | under the Illinois
Vehicle Code.
Horticultural polyhouses or |
| 18 | | hoop houses used for propagating, growing, or
overwintering |
| 19 | | plants shall be considered farm machinery and equipment under
|
| 20 | | this item (2).
Agricultural chemical tender tanks and dry boxes |
| 21 | | shall include units sold
separately from a motor vehicle |
| 22 | | required to be licensed and units sold mounted
on a motor |
| 23 | | vehicle required to be licensed, if the selling price of the |
| 24 | | tender
is separately stated.
|
| 25 | | Farm machinery and equipment shall include precision |
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| 1 | | farming equipment
that is
installed or purchased to be |
| 2 | | installed on farm machinery and equipment
including, but not |
| 3 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
| 4 | | or spreaders.
Precision farming equipment includes, but is not |
| 5 | | limited to,
soil testing sensors, computers, monitors, |
| 6 | | software, global positioning
and mapping systems, and other |
| 7 | | such equipment.
|
| 8 | | Farm machinery and equipment also includes computers, |
| 9 | | sensors, software, and
related equipment used primarily in the
|
| 10 | | computer-assisted operation of production agriculture |
| 11 | | facilities, equipment,
and activities such as, but
not limited |
| 12 | | to,
the collection, monitoring, and correlation of
animal and |
| 13 | | crop data for the purpose of
formulating animal diets and |
| 14 | | agricultural chemicals. This item (2) is exempt
from the |
| 15 | | provisions of
Section 2-70.
|
| 16 | | (3) Until July 1, 2003, distillation machinery and |
| 17 | | equipment, sold as a
unit or kit,
assembled or installed by the |
| 18 | | retailer, certified by the user to be used
only for the |
| 19 | | production of ethyl alcohol that will be used for consumption
|
| 20 | | as motor fuel or as a component of motor fuel for the personal |
| 21 | | use of the
user, and not subject to sale or resale.
|
| 22 | | (4) Until July 1, 2003 and beginning again September 1, |
| 23 | | 2004 through August 30, 2014, graphic arts machinery and |
| 24 | | equipment, including
repair and
replacement parts, both new and |
| 25 | | used, and including that manufactured on
special order or |
| 26 | | purchased for lease, certified by the purchaser to be used
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| 1 | | primarily for graphic arts production.
Equipment includes |
| 2 | | chemicals or
chemicals acting as catalysts but only if
the |
| 3 | | chemicals or chemicals acting as catalysts effect a direct and |
| 4 | | immediate
change upon a
graphic arts product.
|
| 5 | | (5) A motor vehicle of the first division, a motor vehicle |
| 6 | | of the second division that is a self contained motor vehicle |
| 7 | | designed or permanently converted to provide living quarters |
| 8 | | for recreational, camping, or travel use, with direct walk |
| 9 | | through access to the living quarters from the driver's seat, |
| 10 | | or a motor vehicle of the second division that is of the van |
| 11 | | configuration designed for the transportation of not less than |
| 12 | | 7 nor more than 16 passengers, as defined in Section 1-146 of |
| 13 | | the Illinois Vehicle Code, that is used for automobile renting, |
| 14 | | as defined in the Automobile Renting Occupation and Use Tax |
| 15 | | Act. This paragraph is exempt from
the provisions of Section |
| 16 | | 2-70.
|
| 17 | | (6) Personal property sold by a teacher-sponsored student |
| 18 | | organization
affiliated with an elementary or secondary school |
| 19 | | located in Illinois.
|
| 20 | | (7) Until July 1, 2003, proceeds of that portion of the |
| 21 | | selling price of
a passenger car the
sale of which is subject |
| 22 | | to the Replacement Vehicle Tax.
|
| 23 | | (8) Personal property sold to an Illinois county fair |
| 24 | | association for
use in conducting, operating, or promoting the |
| 25 | | county fair.
|
| 26 | | (9) Personal property sold to a not-for-profit arts
or |
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| 1 | | cultural organization that establishes, by proof required by |
| 2 | | the Department
by
rule, that it has received an exemption under |
| 3 | | Section 501(c)(3) of the
Internal Revenue Code and that is |
| 4 | | organized and operated primarily for the
presentation
or |
| 5 | | support of arts or cultural programming, activities, or |
| 6 | | services. These
organizations include, but are not limited to, |
| 7 | | music and dramatic arts
organizations such as symphony |
| 8 | | orchestras and theatrical groups, arts and
cultural service |
| 9 | | organizations, local arts councils, visual arts organizations,
|
| 10 | | and media arts organizations.
On and after the effective date |
| 11 | | of this amendatory Act of the 92nd General
Assembly, however, |
| 12 | | an entity otherwise eligible for this exemption shall not
make |
| 13 | | tax-free purchases unless it has an active identification |
| 14 | | number issued by
the Department.
|
| 15 | | (10) Personal property sold by a corporation, society, |
| 16 | | association,
foundation, institution, or organization, other |
| 17 | | than a limited liability
company, that is organized and |
| 18 | | operated as a not-for-profit service enterprise
for the benefit |
| 19 | | of persons 65 years of age or older if the personal property
|
| 20 | | was not purchased by the enterprise for the purpose of resale |
| 21 | | by the
enterprise.
|
| 22 | | (11) Personal property sold to a governmental body, to a |
| 23 | | corporation,
society, association, foundation, or institution |
| 24 | | organized and operated
exclusively for charitable, religious, |
| 25 | | or educational purposes, or to a
not-for-profit corporation, |
| 26 | | society, association, foundation, institution,
or organization |
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| 1 | | that has no compensated officers or employees and that is
|
| 2 | | organized and operated primarily for the recreation of persons |
| 3 | | 55 years of
age or older. A limited liability company may |
| 4 | | qualify for the exemption under
this paragraph only if the |
| 5 | | limited liability company is organized and operated
|
| 6 | | exclusively for educational purposes. On and after July 1, |
| 7 | | 1987, however, no
entity otherwise eligible for this exemption |
| 8 | | shall make tax-free purchases
unless it has an active |
| 9 | | identification number issued by the Department.
|
| 10 | | (12) Tangible personal property sold to
interstate |
| 11 | | carriers
for hire for use as
rolling stock moving in interstate |
| 12 | | commerce or to lessors under leases of
one year or longer |
| 13 | | executed or in effect at the time of purchase by
interstate |
| 14 | | carriers for hire for use as rolling stock moving in interstate
|
| 15 | | commerce and equipment operated by a telecommunications |
| 16 | | provider, licensed as a
common carrier by the Federal |
| 17 | | Communications Commission, which is permanently
installed in |
| 18 | | or affixed to aircraft moving in interstate commerce.
|
| 19 | | (12-5) On and after July 1, 2003 and through June 30, 2004, |
| 20 | | motor vehicles of the second division
with a gross vehicle |
| 21 | | weight in excess of 8,000 pounds
that
are
subject to the |
| 22 | | commercial distribution fee imposed under Section 3-815.1 of
|
| 23 | | the Illinois
Vehicle Code. Beginning on July 1, 2004 and |
| 24 | | through June 30, 2005, the use in this State of motor vehicles |
| 25 | | of the second division: (i) with a gross vehicle weight rating |
| 26 | | in excess of 8,000 pounds; (ii) that are subject to the |
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| 1 | | commercial distribution fee imposed under Section 3-815.1 of |
| 2 | | the Illinois Vehicle Code; and (iii) that are primarily used |
| 3 | | for commercial purposes. Through June 30, 2005, this
exemption |
| 4 | | applies to repair and replacement parts added
after the
initial |
| 5 | | purchase of such a motor vehicle if that motor vehicle is used |
| 6 | | in a
manner that
would qualify for the rolling stock exemption |
| 7 | | otherwise provided for in this
Act. For purposes of this |
| 8 | | paragraph, "used for commercial purposes" means the |
| 9 | | transportation of persons or property in furtherance of any |
| 10 | | commercial or industrial enterprise whether for-hire or not.
|
| 11 | | (13) Proceeds from sales to owners, lessors, or
shippers of
|
| 12 | | tangible personal property that is utilized by interstate |
| 13 | | carriers for
hire for use as rolling stock moving in interstate |
| 14 | | commerce
and equipment operated by a telecommunications |
| 15 | | provider, licensed as a
common carrier by the Federal |
| 16 | | Communications Commission, which is
permanently installed in |
| 17 | | or affixed to aircraft moving in interstate commerce.
|
| 18 | | (14) Machinery and equipment that will be used by the |
| 19 | | purchaser, or a
lessee of the purchaser, primarily in the |
| 20 | | process of manufacturing or
assembling tangible personal |
| 21 | | property for wholesale or retail sale or
lease, whether the |
| 22 | | sale or lease is made directly by the manufacturer or by
some |
| 23 | | other person, whether the materials used in the process are |
| 24 | | owned by
the manufacturer or some other person, or whether the |
| 25 | | sale or lease is made
apart from or as an incident to the |
| 26 | | seller's engaging in the service
occupation of producing |
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| 1 | | machines, tools, dies, jigs, patterns, gauges, or
other similar |
| 2 | | items of no commercial value on special order for a particular
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| 3 | | purchaser.
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| 4 | | (15) Proceeds of mandatory service charges separately |
| 5 | | stated on
customers' bills for purchase and consumption of food |
| 6 | | and beverages, to the
extent that the proceeds of the service |
| 7 | | charge are in fact turned over as
tips or as a substitute for |
| 8 | | tips to the employees who participate directly
in preparing, |
| 9 | | serving, hosting or cleaning up the food or beverage function
|
| 10 | | with respect to which the service charge is imposed.
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| 11 | | (16) Petroleum products sold to a purchaser if the seller
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| 12 | | is prohibited by federal law from charging tax to the |
| 13 | | purchaser.
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| 14 | | (17) Tangible personal property sold to a common carrier by |
| 15 | | rail or
motor that
receives the physical possession of the |
| 16 | | property in Illinois and that
transports the property, or |
| 17 | | shares with another common carrier in the
transportation of the |
| 18 | | property, out of Illinois on a standard uniform bill
of lading |
| 19 | | showing the seller of the property as the shipper or consignor |
| 20 | | of
the property to a destination outside Illinois, for use |
| 21 | | outside Illinois.
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| 22 | | (18) Legal tender, currency, medallions, or gold or silver |
| 23 | | coinage
issued by the State of Illinois, the government of the |
| 24 | | United States of
America, or the government of any foreign |
| 25 | | country, and bullion.
|
| 26 | | (19) Until July 1 2003, oil field exploration, drilling, |
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| 1 | | and production
equipment, including
(i) rigs and parts of rigs, |
| 2 | | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and |
| 3 | | tubular goods, including casing and
drill strings, (iii) pumps |
| 4 | | and pump-jack units, (iv) storage tanks and flow
lines, (v) any |
| 5 | | individual replacement part for oil field exploration,
|
| 6 | | drilling, and production equipment, and (vi) machinery and |
| 7 | | equipment purchased
for lease; but
excluding motor vehicles |
| 8 | | required to be registered under the Illinois
Vehicle Code.
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| 9 | | (20) Photoprocessing machinery and equipment, including |
| 10 | | repair and
replacement parts, both new and used, including that |
| 11 | | manufactured on
special order, certified by the purchaser to be |
| 12 | | used primarily for
photoprocessing, and including |
| 13 | | photoprocessing machinery and equipment
purchased for lease.
|
| 14 | | (21) Until July 1, 2003, and beginning again on the |
| 15 | | effective date of this amendatory Act of the 97th General |
| 16 | | Assembly and thereafter, coal and aggregate exploration, |
| 17 | | mining, offhighway hauling,
processing,
maintenance, and |
| 18 | | reclamation equipment, including
replacement parts and |
| 19 | | equipment, and including
equipment purchased for lease, but |
| 20 | | excluding motor vehicles required to be
registered under the |
| 21 | | Illinois Vehicle Code.
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| 22 | | (22) Fuel and petroleum products sold to or used by an air |
| 23 | | carrier,
certified by the carrier to be used for consumption, |
| 24 | | shipment, or storage
in the conduct of its business as an air |
| 25 | | common carrier, for a flight
destined for or returning from a |
| 26 | | location or locations
outside the United States without regard |
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| 1 | | to previous or subsequent domestic
stopovers.
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| 2 | | (23) A transaction in which the purchase order is received |
| 3 | | by a florist
who is located outside Illinois, but who has a |
| 4 | | florist located in Illinois
deliver the property to the |
| 5 | | purchaser or the purchaser's donee in Illinois.
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| 6 | | (24) Fuel consumed or used in the operation of ships, |
| 7 | | barges, or vessels
that are used primarily in or for the |
| 8 | | transportation of property or the
conveyance of persons for |
| 9 | | hire on rivers bordering on this State if the
fuel is delivered |
| 10 | | by the seller to the purchaser's barge, ship, or vessel
while |
| 11 | | it is afloat upon that bordering river.
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| 12 | | (25) Except as provided in item (25-5) of this Section, a
|
| 13 | | motor vehicle sold in this State to a nonresident even though |
| 14 | | the
motor vehicle is delivered to the nonresident in this |
| 15 | | State, if the motor
vehicle is not to be titled in this State, |
| 16 | | and if a drive-away permit
is issued to the motor vehicle as |
| 17 | | provided in Section 3-603 of the Illinois
Vehicle Code or if |
| 18 | | the nonresident purchaser has vehicle registration
plates to |
| 19 | | transfer to the motor vehicle upon returning to his or her home
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| 20 | | state. The issuance of the drive-away permit or having
the
|
| 21 | | out-of-state registration plates to be transferred is prima |
| 22 | | facie evidence
that the motor vehicle will not be titled in |
| 23 | | this State.
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| 24 | | (25-5) The exemption under item (25) does not apply if the |
| 25 | | state in which the motor vehicle will be titled does not allow |
| 26 | | a reciprocal exemption for a motor vehicle sold and delivered |
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| 1 | | in that state to an Illinois resident but titled in Illinois. |
| 2 | | The tax collected under this Act on the sale of a motor vehicle |
| 3 | | in this State to a resident of another state that does not |
| 4 | | allow a reciprocal exemption shall be imposed at a rate equal |
| 5 | | to the state's rate of tax on taxable property in the state in |
| 6 | | which the purchaser is a resident, except that the tax shall |
| 7 | | not exceed the tax that would otherwise be imposed under this |
| 8 | | Act. At the time of the sale, the purchaser shall execute a |
| 9 | | statement, signed under penalty of perjury, of his or her |
| 10 | | intent to title the vehicle in the state in which the purchaser |
| 11 | | is a resident within 30 days after the sale and of the fact of |
| 12 | | the payment to the State of Illinois of tax in an amount |
| 13 | | equivalent to the state's rate of tax on taxable property in |
| 14 | | his or her state of residence and shall submit the statement to |
| 15 | | the appropriate tax collection agency in his or her state of |
| 16 | | residence. In addition, the retailer must retain a signed copy |
| 17 | | of the statement in his or her records. Nothing in this item |
| 18 | | shall be construed to require the removal of the vehicle from |
| 19 | | this state following the filing of an intent to title the |
| 20 | | vehicle in the purchaser's state of residence if the purchaser |
| 21 | | titles the vehicle in his or her state of residence within 30 |
| 22 | | days after the date of sale. The tax collected under this Act |
| 23 | | in accordance with this item (25-5) shall be proportionately |
| 24 | | distributed as if the tax were collected at the 6.25% general |
| 25 | | rate imposed under this Act.
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| 26 | | (25-7) Beginning on July 1, 2007, no tax is imposed under |
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| 1 | | this Act on the sale of an aircraft, as defined in Section 3 of |
| 2 | | the Illinois Aeronautics Act, if all of the following |
| 3 | | conditions are met: |
| 4 | | (1) the aircraft leaves this State within 15 days after |
| 5 | | the later of either the issuance of the final billing for |
| 6 | | the sale of the aircraft, or the authorized approval for |
| 7 | | return to service, completion of the maintenance record |
| 8 | | entry, and completion of the test flight and ground test |
| 9 | | for inspection, as required by 14 C.F.R. 91.407; |
| 10 | | (2) the aircraft is not based or registered in this |
| 11 | | State after the sale of the aircraft; and |
| 12 | | (3) the seller retains in his or her books and records |
| 13 | | and provides to the Department a signed and dated |
| 14 | | certification from the purchaser, on a form prescribed by |
| 15 | | the Department, certifying that the requirements of this |
| 16 | | item (25-7) are met. The certificate must also include the |
| 17 | | name and address of the purchaser, the address of the |
| 18 | | location where the aircraft is to be titled or registered, |
| 19 | | the address of the primary physical location of the |
| 20 | | aircraft, and other information that the Department may |
| 21 | | reasonably require. |
| 22 | | For purposes of this item (25-7): |
| 23 | | "Based in this State" means hangared, stored, or otherwise |
| 24 | | used, excluding post-sale customizations as defined in this |
| 25 | | Section, for 10 or more days in each 12-month period |
| 26 | | immediately following the date of the sale of the aircraft. |
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| 1 | | "Registered in this State" means an aircraft registered |
| 2 | | with the Department of Transportation, Aeronautics Division, |
| 3 | | or titled or registered with the Federal Aviation |
| 4 | | Administration to an address located in this State. |
| 5 | | This paragraph (25-7) is exempt from the provisions
of
|
| 6 | | Section 2-70.
|
| 7 | | (26) Semen used for artificial insemination of livestock |
| 8 | | for direct
agricultural production.
|
| 9 | | (27) Horses, or interests in horses, registered with and |
| 10 | | meeting the
requirements of any of the
Arabian Horse Club |
| 11 | | Registry of America, Appaloosa Horse Club, American Quarter
|
| 12 | | Horse Association, United States
Trotting Association, or |
| 13 | | Jockey Club, as appropriate, used for
purposes of breeding or |
| 14 | | racing for prizes. This item (27) is exempt from the provisions |
| 15 | | of Section 2-70, and the exemption provided for under this item |
| 16 | | (27) applies for all periods beginning May 30, 1995, but no |
| 17 | | claim for credit or refund is allowed on or after January 1, |
| 18 | | 2008 (the effective date of Public Act 95-88)
for such taxes |
| 19 | | paid during the period beginning May 30, 2000 and ending on |
| 20 | | January 1, 2008 (the effective date of Public Act 95-88).
|
| 21 | | (28) Computers and communications equipment utilized for |
| 22 | | any
hospital
purpose
and equipment used in the diagnosis,
|
| 23 | | analysis, or treatment of hospital patients sold to a lessor |
| 24 | | who leases the
equipment, under a lease of one year or longer |
| 25 | | executed or in effect at the
time of the purchase, to a
|
| 26 | | hospital
that has been issued an active tax exemption |
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| 1 | | identification number by the
Department under Section 1g of |
| 2 | | this Act.
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| 3 | | (29) Personal property sold to a lessor who leases the
|
| 4 | | property, under a
lease of one year or longer executed or in |
| 5 | | effect at the time of the purchase,
to a governmental body
that |
| 6 | | has been issued an active tax exemption identification number |
| 7 | | by the
Department under Section 1g of this Act.
|
| 8 | | (30) Beginning with taxable years ending on or after |
| 9 | | December
31, 1995
and
ending with taxable years ending on or |
| 10 | | before December 31, 2004,
personal property that is
donated for |
| 11 | | disaster relief to be used in a State or federally declared
|
| 12 | | disaster area in Illinois or bordering Illinois by a |
| 13 | | manufacturer or retailer
that is registered in this State to a |
| 14 | | corporation, society, association,
foundation, or institution |
| 15 | | that has been issued a sales tax exemption
identification |
| 16 | | number by the Department that assists victims of the disaster
|
| 17 | | who reside within the declared disaster area.
|
| 18 | | (31) Beginning with taxable years ending on or after |
| 19 | | December
31, 1995 and
ending with taxable years ending on or |
| 20 | | before December 31, 2004, personal
property that is used in the |
| 21 | | performance of infrastructure repairs in this
State, including |
| 22 | | but not limited to municipal roads and streets, access roads,
|
| 23 | | bridges, sidewalks, waste disposal systems, water and sewer |
| 24 | | line extensions,
water distribution and purification |
| 25 | | facilities, storm water drainage and
retention facilities, and |
| 26 | | sewage treatment facilities, resulting from a State
or |
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| 1 | | federally declared disaster in Illinois or bordering Illinois |
| 2 | | when such
repairs are initiated on facilities located in the |
| 3 | | declared disaster area
within 6 months after the disaster.
|
| 4 | | (32) Beginning July 1, 1999, game or game birds sold at a |
| 5 | | "game breeding
and
hunting preserve area" as that term is used
|
| 6 | | in the
Wildlife Code. This paragraph is exempt from the |
| 7 | | provisions
of
Section 2-70.
|
| 8 | | (33) A motor vehicle, as that term is defined in Section |
| 9 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
| 10 | | corporation, limited liability
company, society, association, |
| 11 | | foundation, or institution that is determined by
the Department |
| 12 | | to be organized and operated exclusively for educational
|
| 13 | | purposes. For purposes of this exemption, "a corporation, |
| 14 | | limited liability
company, society, association, foundation, |
| 15 | | or institution organized and
operated
exclusively for |
| 16 | | educational purposes" means all tax-supported public schools,
|
| 17 | | private schools that offer systematic instruction in useful |
| 18 | | branches of
learning by methods common to public schools and |
| 19 | | that compare favorably in
their scope and intensity with the |
| 20 | | course of study presented in tax-supported
schools, and |
| 21 | | vocational or technical schools or institutes organized and
|
| 22 | | operated exclusively to provide a course of study of not less |
| 23 | | than 6 weeks
duration and designed to prepare individuals to |
| 24 | | follow a trade or to pursue a
manual, technical, mechanical, |
| 25 | | industrial, business, or commercial
occupation.
|
| 26 | | (34) Beginning January 1, 2000, personal property, |
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| 1 | | including food, purchased
through fundraising events for the |
| 2 | | benefit of a public or private elementary or
secondary school, |
| 3 | | a group of those schools, or one or more school districts if
|
| 4 | | the events are sponsored by an entity recognized by the school |
| 5 | | district that
consists primarily of volunteers and includes |
| 6 | | parents and teachers of the
school children. This paragraph |
| 7 | | does not apply to fundraising events (i) for
the benefit of |
| 8 | | private home instruction or (ii) for which the fundraising
|
| 9 | | entity purchases the personal property sold at the events from |
| 10 | | another
individual or entity that sold the property for the |
| 11 | | purpose of resale by the
fundraising entity and that profits |
| 12 | | from the sale to the fundraising entity.
This paragraph is |
| 13 | | exempt from the provisions of Section 2-70.
|
| 14 | | (35) Beginning January 1, 2000 and through December 31, |
| 15 | | 2001, new or used
automatic vending machines that prepare and |
| 16 | | serve hot food and beverages,
including coffee, soup, and other |
| 17 | | items, and replacement parts for these
machines. Beginning |
| 18 | | January 1, 2002 and through June 30, 2003, machines
and parts |
| 19 | | for machines used in
commercial, coin-operated amusement and |
| 20 | | vending business if a use or occupation
tax is paid on the |
| 21 | | gross receipts derived from the use of the commercial,
|
| 22 | | coin-operated amusement and vending machines. This paragraph |
| 23 | | is exempt from
the provisions of Section 2-70.
|
| 24 | | (35-5) Beginning August 23, 2001 and through June 30, 2016, |
| 25 | | food for human consumption that is to be consumed off
the |
| 26 | | premises where it is sold (other than alcoholic beverages, soft |
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| 1 | | drinks,
and food that has been prepared for immediate |
| 2 | | consumption) and prescription
and nonprescription medicines, |
| 3 | | drugs, medical appliances, and insulin, urine
testing |
| 4 | | materials, syringes, and needles used by diabetics, for human |
| 5 | | use, when
purchased for use by a person receiving medical |
| 6 | | assistance under Article V of
the Illinois Public Aid Code who |
| 7 | | resides in a licensed long-term care facility,
as defined in |
| 8 | | the Nursing Home Care Act, or a licensed facility as defined in |
| 9 | | the ID/DD Community Care Act or the Specialized Mental Health |
| 10 | | Rehabilitation Act.
|
| 11 | | (36) Beginning August 2, 2001, computers and |
| 12 | | communications equipment
utilized for any hospital purpose and |
| 13 | | equipment used in the diagnosis,
analysis, or treatment of |
| 14 | | hospital patients sold to a lessor who leases the
equipment, |
| 15 | | under a lease of one year or longer executed or in effect at |
| 16 | | the
time of the purchase, to a hospital that has been issued an |
| 17 | | active tax
exemption identification number by the Department |
| 18 | | under Section 1g of this Act.
This paragraph is exempt from the |
| 19 | | provisions of Section 2-70.
|
| 20 | | (37) Beginning August 2, 2001, 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 a |
| 23 | | governmental body that has been issued an
active tax exemption |
| 24 | | identification number by the Department under Section 1g
of |
| 25 | | this Act. This paragraph is exempt from the provisions of |
| 26 | | Section 2-70.
|
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| 1 | | (38) Beginning on January 1, 2002 and through June 30, |
| 2 | | 2016, tangible personal property purchased
from an Illinois |
| 3 | | retailer by a taxpayer engaged in centralized purchasing
|
| 4 | | activities in Illinois who will, upon receipt of the property |
| 5 | | in Illinois,
temporarily store the property in Illinois (i) for |
| 6 | | the purpose of subsequently
transporting it outside this State |
| 7 | | for use or consumption thereafter solely
outside this State or |
| 8 | | (ii) for the purpose of being processed, fabricated, or
|
| 9 | | manufactured into, attached to, or incorporated into other |
| 10 | | tangible personal
property to be transported outside this State |
| 11 | | and thereafter used or consumed
solely outside this State. The |
| 12 | | Director of Revenue shall, pursuant to rules
adopted in |
| 13 | | accordance with the Illinois Administrative Procedure Act, |
| 14 | | issue a
permit to any taxpayer in good standing with the |
| 15 | | Department who is eligible for
the exemption under this |
| 16 | | paragraph (38). The permit issued under
this paragraph (38) |
| 17 | | shall authorize the holder, to the extent and
in the manner |
| 18 | | specified in the rules adopted under this Act, to purchase
|
| 19 | | tangible personal property from a retailer exempt from the |
| 20 | | taxes imposed by
this Act. Taxpayers shall maintain all |
| 21 | | necessary books and records to
substantiate the use and |
| 22 | | consumption of all such tangible personal property
outside of |
| 23 | | the State of Illinois.
|
| 24 | | (39) Beginning January 1, 2008, tangible personal property |
| 25 | | used in the construction or maintenance of a community water |
| 26 | | supply, as defined under Section 3.145 of the Environmental |
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| 1 | | Protection Act, that is operated by a not-for-profit |
| 2 | | corporation that holds a valid water supply permit issued under |
| 3 | | Title IV of the Environmental Protection Act. This paragraph is |
| 4 | | exempt from the provisions of Section 2-70.
|
| 5 | | (40) Beginning January 1, 2010, materials, parts, |
| 6 | | equipment, components, and furnishings incorporated into or |
| 7 | | upon an aircraft as part of the modification, refurbishment, |
| 8 | | completion, replacement, repair, or maintenance of the |
| 9 | | aircraft. This exemption includes consumable supplies used in |
| 10 | | the modification, refurbishment, completion, replacement, |
| 11 | | repair, and maintenance of aircraft, but excludes any |
| 12 | | materials, parts, equipment, components, and consumable |
| 13 | | supplies used in the modification, replacement, repair, and |
| 14 | | maintenance of aircraft engines or power plants, whether such |
| 15 | | engines or power plants are installed or uninstalled upon any |
| 16 | | such aircraft. "Consumable supplies" include, but are not |
| 17 | | limited to, adhesive, tape, sandpaper, general purpose |
| 18 | | lubricants, cleaning solution, latex gloves, and protective |
| 19 | | films. This exemption applies only to those organizations that |
| 20 | | (i) hold an Air Agency Certificate and are empowered to operate |
| 21 | | an approved repair station by the Federal Aviation |
| 22 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
| 23 | | operations in accordance with Part 145 of the Federal Aviation |
| 24 | | Regulations. The exemption does not include aircraft operated |
| 25 | | by a commercial air carrier providing scheduled passenger air |
| 26 | | service pursuant to authority issued under Part 121 or Part 129 |
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| 1 | | of the Federal Aviation Regulations. |
| 2 | | (41) Tangible personal property sold to a |
| 3 | | public-facilities corporation, as described in Section |
| 4 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
| 5 | | constructing or furnishing a municipal convention hall, but |
| 6 | | only if the legal title to the municipal convention hall is |
| 7 | | transferred to the municipality without any further |
| 8 | | consideration by or on behalf of the municipality at the time |
| 9 | | of the completion of the municipal convention hall or upon the |
| 10 | | retirement or redemption of any bonds or other debt instruments |
| 11 | | issued by the public-facilities corporation in connection with |
| 12 | | the development of the municipal convention hall. This |
| 13 | | exemption includes existing public-facilities corporations as |
| 14 | | provided in Section 11-65-25 of the Illinois Municipal Code. |
| 15 | | This paragraph is exempt from the provisions of Section 2-70. |
| 16 | | (42) A motor vehicle sold to an Illinois resident who is a |
| 17 | | service member on active duty or returning to Illinois from |
| 18 | | active duty and who applies for registration of the motor |
| 19 | | vehicle in Illinois while on active duty or within one year |
| 20 | | after leaving active duty. For purposes of this exemption: |
| 21 | | "active duty" means active duty pursuant to an executive order |
| 22 | | of the President of the United States, an act of the Congress |
| 23 | | of the United States, or an order of the Governor; and "service |
| 24 | | member" means a member of the armed services or reserve forces |
| 25 | | of the United States or a member of the Illinois National |
| 26 | | Guard. |
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| 1 | | (Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; |
| 2 | | 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. |
| 3 | | 7-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. |
| 4 | | 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. |
| 5 | | 7-9-12.)
|
| 6 | | Section 15. The Illinois Vehicle Code is amended by |
| 7 | | changing Section 3-1001 as follows:
|
| 8 | | (625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
|
| 9 | | Sec. 3-1001. A tax is hereby imposed on the privilege of |
| 10 | | using, in this
State, any motor vehicle as defined in Section |
| 11 | | 1-146 of this Code acquired by
gift, transfer, or purchase, and |
| 12 | | having a year model designation preceding the
year of |
| 13 | | application for title by 5 or fewer years prior to October 1, |
| 14 | | 1985 and
10 or fewer years on and after October 1, 1985 and |
| 15 | | prior to January 1, 1988.
On and after January 1, 1988, the tax |
| 16 | | shall apply to all motor vehicles without
regard to model year. |
| 17 | | Except that the tax shall not apply
|
| 18 | | (i) if the use of the motor vehicle is otherwise taxed |
| 19 | | under the Use Tax
Act;
|
| 20 | | (ii) if the motor vehicle is bought and used by a
|
| 21 | | governmental agency or a society, association, foundation |
| 22 | | or institution
organized and operated exclusively for |
| 23 | | charitable, religious or
educational purposes;
|
| 24 | | (iii) if the use of the motor vehicle is not subject to |
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| 1 | | the Use Tax Act by
reason of subsection (a), (b), (c), (d), |
| 2 | | (e) or (f) of Section 3-55 of that Act
dealing with the |
| 3 | | prevention of actual or likely multistate taxation;
|
| 4 | | (iv) to implements of husbandry;
|
| 5 | | (v) when a junking certificate is issued pursuant to |
| 6 | | Section 3-117(a)
of this Code;
|
| 7 | | (vi) when a vehicle is subject to the replacement |
| 8 | | vehicle tax imposed
by Section 3-2001 of this Act;
|
| 9 | | (vii) when the transfer is a gift to a beneficiary in |
| 10 | | the
administration of an estate and the beneficiary is a |
| 11 | | surviving spouse.
|
| 12 | | The tax shall also not apply to a motor vehicle sold to an |
| 13 | | Illinois resident who is a service member on active duty or |
| 14 | | returning to Illinois from active duty and who applies for |
| 15 | | registration of the motor vehicle in Illinois while on active |
| 16 | | duty or within one year after leaving active duty. For purposes |
| 17 | | of this exemption: "active duty" means active duty pursuant to |
| 18 | | an executive order of the President of the United States, an |
| 19 | | act of the Congress of the United States, or an order of the |
| 20 | | Governor; and "service member" means a member of the armed |
| 21 | | services or reserve forces of the United States or a member of |
| 22 | | the Illinois National Guard. |
| 23 | | Prior to January 1, 1988, the rate of tax shall be 5% of |
| 24 | | the selling
price for each purchase of a motor vehicle covered |
| 25 | | by Section 3-1001 of
this Code. Except as hereinafter provided, |
| 26 | | beginning January 1, 1988, the
rate of tax shall be as follows |
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| 1 | | for transactions in which the selling price
of the motor |
| 2 | | vehicle is less than $15,000:
|
|
| 3 | | Number of Years Transpired After |
Applicable Tax |
|
| 4 | | Model Year of Motor Vehicle |
|
|
| 5 | | 1 or less |
$390 |
|
| 6 | | 2 |
290 |
|
| 7 | | 3 |
215 |
|
| 8 | | 4 |
165 |
|
| 9 | | 5 |
115 |
|
| 10 | | 6 |
90 |
|
| 11 | | 7 |
80 |
|
| 12 | | 8 |
65 |
|
| 13 | | 9 |
50 |
|
| 14 | | 10 |
40 |
|
| 15 | | over 10 |
25 |
|
| 16 | | Except as hereinafter provided, beginning January 1, 1988, the |
| 17 | | rate of
tax shall be as follows for transactions in which the |
| 18 | | selling price of the
motor vehicle is $15,000 or more:
|
|
| 19 | | Selling Price |
Applicable Tax |
|
| 20 | | $15,000 - $19,999 |
$ 750 |
|
| 21 | | $20,000 - $24,999 |
$1,000 |
|
| 22 | | $25,000 - $29,999 |
$1,250 |
|
| 23 | | $30,000 and over |
$1,500 |
|
| 24 | | For the following transactions, the tax rate shall be $15 for |
| 25 | | each
motor vehicle acquired in such transaction:
|
| 26 | | (i) when the transferee or purchaser is the spouse, |
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| 1 | | mother, father,
brother, sister or child of the transferor;
|
| 2 | | (ii) when the transfer is a gift to a beneficiary in |
| 3 | | the administration
of an estate and the beneficiary is not |
| 4 | | a surviving spouse;
|
| 5 | | (iii) when a motor vehicle which has once been |
| 6 | | subjected to the Illinois
retailers' occupation tax or use |
| 7 | | tax is transferred in connection with the
organization, |
| 8 | | reorganization, dissolution or partial liquidation of an
|
| 9 | | incorporated or unincorporated business wherein the |
| 10 | | beneficial ownership
is not changed.
|
| 11 | | A claim that the transaction is taxable under subparagraph |
| 12 | | (i) shall be
supported by such proof of family relationship as |
| 13 | | provided by rules of the
Department.
|
| 14 | | For a transaction in which a motorcycle, motor driven cycle |
| 15 | | or moped is acquired the tax rate shall be $25.
|
| 16 | | On and after October 1, 1985, 1/12 of $5,000,000 of the |
| 17 | | moneys received
by the Department of Revenue pursuant to this |
| 18 | | Section shall be paid each
month into the Build Illinois Fund |
| 19 | | and the remainder into the General
Revenue Fund.
|
| 20 | | The tax imposed by this Section shall be abated and no |
| 21 | | longer imposed
when the amount deposited to secure the bonds |
| 22 | | issued pursuant to the Build
Illinois Bond Act is sufficient to |
| 23 | | provide for the payment of the principal
of, and interest and |
| 24 | | premium, if any, on the bonds, as certified to the
State |
| 25 | | Comptroller and the Director of Revenue by the Director of the
|
| 26 | | Governor's Office of Management and Budget.
|