Bill Amendment: IL HB5159 | 2015-2016 | 99th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: REVENUE-TECH
Status: 2016-04-22 - House Committee Amendment No. 1 Rule 19(a) / Re-referred to Rules Committee [HB5159 Detail]
Download: Illinois-2015-HB5159-House_Amendment_001.html
Bill Title: REVENUE-TECH
Status: 2016-04-22 - House Committee Amendment No. 1 Rule 19(a) / Re-referred to Rules Committee [HB5159 Detail]
Download: Illinois-2015-HB5159-House_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 5159
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2 | AMENDMENT NO. ______. Amend House Bill 5159 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Use Tax Act is amended by changing Section | ||||||
5 | 3-5 as follows:
| ||||||
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
| ||||||
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 |
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| |||||||
1 | Illinois county
fair association for use in conducting, | ||||||
2 | operating, or promoting the
county fair.
| ||||||
3 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
4 | cultural organization that establishes, by proof required by | ||||||
5 | the
Department by
rule, that it has received an exemption under | ||||||
6 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
7 | organized and operated primarily for the
presentation
or | ||||||
8 | support of arts or cultural programming, activities, or | ||||||
9 | services. These
organizations include, but are not limited to, | ||||||
10 | music and dramatic arts
organizations such as symphony | ||||||
11 | orchestras and theatrical groups, arts and
cultural service | ||||||
12 | organizations, local arts councils, visual arts organizations,
| ||||||
13 | and media arts organizations.
On and after the effective date | ||||||
14 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
15 | an entity otherwise eligible for this exemption shall not
make | ||||||
16 | tax-free purchases unless it has an active identification | ||||||
17 | number issued by
the Department.
| ||||||
18 | (4) Personal property purchased by a governmental body, by | ||||||
19 | a
corporation, society, association, foundation, or | ||||||
20 | institution organized and
operated exclusively for charitable, | ||||||
21 | religious, or educational purposes, or
by a not-for-profit | ||||||
22 | corporation, society, association, foundation,
institution, or | ||||||
23 | organization that has no compensated officers or employees
and | ||||||
24 | that is organized and operated primarily for the recreation of | ||||||
25 | persons
55 years of age or older. A limited liability company | ||||||
26 | may qualify for the
exemption under this paragraph only if the |
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| |||||||
1 | limited liability company is
organized and operated | ||||||
2 | exclusively for educational purposes. On and after July
1, | ||||||
3 | 1987, however, no entity otherwise eligible for this exemption | ||||||
4 | shall make
tax-free purchases unless it has an active exemption | ||||||
5 | identification number
issued by the Department.
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6 | (5) Until July 1, 2003, a passenger car that is a | ||||||
7 | replacement vehicle to
the extent that the
purchase price of | ||||||
8 | the car is subject to the Replacement Vehicle Tax.
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9 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
10 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
11 | equipment, including
repair and replacement
parts, both new and | ||||||
12 | used, and including that manufactured on special order,
| ||||||
13 | certified by the purchaser to be used primarily for graphic | ||||||
14 | arts production,
and including machinery and equipment | ||||||
15 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
16 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
17 | acting as catalysts effect a direct and immediate change
upon a | ||||||
18 | graphic arts product.
| ||||||
19 | (7) Farm chemicals.
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20 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
21 | coinage issued by
the State of Illinois, the government of the | ||||||
22 | United States of America, or the
government of any foreign | ||||||
23 | country, and bullion.
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24 | (9) Personal property purchased from a teacher-sponsored | ||||||
25 | student
organization affiliated with an elementary or | ||||||
26 | secondary school located in
Illinois.
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1 | (10) A motor vehicle that is used for automobile renting, | ||||||
2 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
3 | Act.
| ||||||
4 | (11) Farm machinery and equipment, both new and used,
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5 | including that manufactured on special order, certified by the | ||||||
6 | purchaser
to be used primarily for production agriculture or | ||||||
7 | State or federal
agricultural programs, including individual | ||||||
8 | replacement parts for
the machinery and equipment, including | ||||||
9 | machinery and equipment
purchased
for lease,
and including | ||||||
10 | implements of husbandry defined in Section 1-130 of
the | ||||||
11 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
12 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
13 | be registered
under Section 3-809 of the Illinois Vehicle Code,
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14 | but excluding other motor
vehicles required to be
registered | ||||||
15 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
16 | hoop houses used for propagating, growing, or
overwintering | ||||||
17 | plants shall be considered farm machinery and equipment under
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18 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
19 | boxes shall include units sold
separately from a motor vehicle | ||||||
20 | required to be licensed and units sold mounted
on a motor | ||||||
21 | vehicle required to be licensed if the selling price of the | ||||||
22 | tender
is separately stated.
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23 | Farm machinery and equipment shall include precision | ||||||
24 | farming equipment
that is
installed or purchased to be | ||||||
25 | installed on farm machinery and equipment
including, but not | ||||||
26 | limited to, tractors, harvesters, sprayers, planters,
seeders, |
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1 | or spreaders.
Precision farming equipment includes, but is not | ||||||
2 | limited to, soil testing
sensors, computers, monitors, | ||||||
3 | software, global positioning
and mapping systems, and other | ||||||
4 | such equipment.
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5 | Farm machinery and equipment also includes computers, | ||||||
6 | sensors, software, and
related equipment used primarily in the
| ||||||
7 | computer-assisted operation of production agriculture | ||||||
8 | facilities, equipment,
and
activities such as, but not limited | ||||||
9 | to,
the collection, monitoring, and correlation of
animal and | ||||||
10 | crop data for the purpose of
formulating animal diets and | ||||||
11 | agricultural chemicals. This item (11) is exempt
from the | ||||||
12 | provisions of
Section 3-90.
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13 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
14 | to or used by an air common
carrier, certified by the carrier | ||||||
15 | to be used for consumption, shipment, or
storage in the conduct | ||||||
16 | of its business as an air common carrier, for a
flight destined | ||||||
17 | for or returning from a location or locations
outside the | ||||||
18 | United States without regard to previous or subsequent domestic
| ||||||
19 | stopovers.
| ||||||
20 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
21 | or used by an air carrier, certified by the carrier to be used | ||||||
22 | for consumption, shipment, or storage in the conduct of its | ||||||
23 | business as an air common carrier, for a flight that (i) is | ||||||
24 | engaged in foreign trade or is engaged in trade between the | ||||||
25 | United States and any of its possessions and (ii) transports at | ||||||
26 | least one individual or package for hire from the city of |
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1 | origination to the city of final destination on the same | ||||||
2 | aircraft, without regard to a change in the flight number of | ||||||
3 | that aircraft. | ||||||
4 | (13) Proceeds of mandatory service charges separately
| ||||||
5 | stated on customers' bills for the purchase and consumption of | ||||||
6 | food and
beverages purchased at retail from a retailer, to the | ||||||
7 | extent that the proceeds
of the service charge are in fact | ||||||
8 | turned over as tips or as a substitute
for tips to the | ||||||
9 | employees who participate directly in preparing, serving,
| ||||||
10 | hosting or cleaning up the food or beverage function with | ||||||
11 | respect to which
the service charge is imposed.
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12 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
13 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
14 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
15 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
16 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
17 | individual replacement part for oil
field exploration, | ||||||
18 | drilling, and production equipment, and (vi) machinery and
| ||||||
19 | equipment purchased
for lease; but excluding motor vehicles | ||||||
20 | required to be registered under the
Illinois Vehicle Code.
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21 | (15) Photoprocessing machinery and equipment, including | ||||||
22 | repair and
replacement parts, both new and used, including that
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23 | manufactured on special order, certified by the purchaser to be | ||||||
24 | used
primarily for photoprocessing, and including
| ||||||
25 | photoprocessing machinery and equipment purchased for lease.
| ||||||
26 | (16) Coal and aggregate exploration, mining, off-highway |
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| |||||||
1 | hauling,
processing, maintenance, and reclamation equipment,
| ||||||
2 | including replacement parts and equipment, and
including | ||||||
3 | equipment purchased for lease, but excluding motor
vehicles | ||||||
4 | required to be registered under the Illinois Vehicle Code. The | ||||||
5 | changes made to this Section by Public Act 97-767 apply on and | ||||||
6 | after July 1, 2003, but no claim for credit or refund is | ||||||
7 | allowed on or after August 16, 2013 (the effective date of | ||||||
8 | Public Act 98-456)
for such taxes paid during the period | ||||||
9 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
10 | effective date of Public Act 98-456).
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11 | (17) Until July 1, 2003, distillation machinery and | ||||||
12 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
13 | retailer, certified by the user to be used
only for the | ||||||
14 | production of ethyl alcohol that will be used for consumption
| ||||||
15 | as motor fuel or as a component of motor fuel for the personal | ||||||
16 | use of the
user, and not subject to sale or resale.
| ||||||
17 | (18) Manufacturing and assembling machinery and equipment | ||||||
18 | used
primarily in the process of manufacturing or assembling | ||||||
19 | tangible
personal property for wholesale or retail sale or | ||||||
20 | lease, whether that sale
or lease is made directly by the | ||||||
21 | manufacturer or by some other person,
whether the materials | ||||||
22 | used in the process are
owned by the manufacturer or some other | ||||||
23 | person, or whether that sale or
lease is made apart from or as | ||||||
24 | an incident to the seller's engaging in
the service occupation | ||||||
25 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
26 | other similar items of no commercial value on
special order for |
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1 | a particular purchaser. The exemption provided by this | ||||||
2 | paragraph (18) does not include machinery and equipment used in | ||||||
3 | (i) the generation of electricity for wholesale or retail sale; | ||||||
4 | (ii) the generation or treatment of natural or artificial gas | ||||||
5 | for wholesale or retail sale that is delivered to customers | ||||||
6 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
7 | water for wholesale or retail sale that is delivered to | ||||||
8 | customers through pipes, pipelines, or mains. The provisions of | ||||||
9 | Public Act 98-583 are declaratory of existing law as to the | ||||||
10 | meaning and scope of this exemption.
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11 | (19) Personal property delivered to a purchaser or | ||||||
12 | purchaser's donee
inside Illinois when the purchase order for | ||||||
13 | that personal property was
received by a florist located | ||||||
14 | outside Illinois who has a florist located
inside Illinois | ||||||
15 | deliver the personal property.
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16 | (20) Semen used for artificial insemination of livestock | ||||||
17 | for direct
agricultural production.
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18 | (21) Horses, or interests in horses, registered with and | ||||||
19 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
20 | Registry of America, Appaloosa Horse Club, American Quarter
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21 | Horse Association, United States
Trotting Association, or | ||||||
22 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
23 | racing for prizes. This item (21) is exempt from the provisions | ||||||
24 | of Section 3-90, and the exemption provided for under this item | ||||||
25 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
26 | claim for credit or refund is allowed on or after January 1, |
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| |||||||
1 | 2008
for such taxes paid during the period beginning May 30, | ||||||
2 | 2000 and ending on January 1, 2008.
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3 | (22) Computers and communications equipment utilized for | ||||||
4 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
5 | analysis, or treatment of hospital patients purchased by a | ||||||
6 | lessor who leases
the
equipment, under a lease of one year or | ||||||
7 | longer executed or in effect at the
time the lessor would | ||||||
8 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
9 | 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 non-exempt 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
non-qualifying 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
| ||||||
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.
| ||||||
26 | (23) Personal property purchased by a lessor who leases the
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1 | property, under
a
lease of
one year or longer executed or in | ||||||
2 | effect at the time
the lessor would otherwise be subject to the | ||||||
3 | tax imposed by this Act,
to a governmental body
that has been | ||||||
4 | issued an active sales tax exemption identification number by | ||||||
5 | the
Department under Section 1g of the Retailers' Occupation | ||||||
6 | Tax Act.
If the
property is leased in a manner that does not | ||||||
7 | qualify for
this exemption
or used in any other non-exempt | ||||||
8 | manner, the lessor shall be liable for the
tax imposed under | ||||||
9 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
10 | on the fair market value of the property at the time the
| ||||||
11 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
12 | to collect an
amount (however
designated) that purports to | ||||||
13 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
14 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
15 | paid by the lessor. If a lessor improperly collects any such | ||||||
16 | amount from the
lessee, the lessee shall have a legal right to | ||||||
17 | claim a refund of that amount
from the lessor. If, however, | ||||||
18 | that amount is not refunded to the lessee for
any reason, the | ||||||
19 | lessor is liable to pay that amount to the Department.
| ||||||
20 | (24) Beginning with taxable years ending on or after | ||||||
21 | December
31, 1995
and
ending with taxable years ending on or | ||||||
22 | before December 31, 2004,
personal property that is
donated for | ||||||
23 | disaster relief to be used in a State or federally declared
| ||||||
24 | disaster area in Illinois or bordering Illinois by a | ||||||
25 | manufacturer or retailer
that is registered in this State to a | ||||||
26 | corporation, society, association,
foundation, or institution |
| |||||||
| |||||||
1 | that has been issued a sales tax exemption
identification | ||||||
2 | number by the Department that assists victims of the disaster
| ||||||
3 | who reside within the declared disaster area.
| ||||||
4 | (25) Beginning with taxable years ending on or after | ||||||
5 | December
31, 1995 and
ending with taxable years ending on or | ||||||
6 | before December 31, 2004, personal
property that is used in the | ||||||
7 | performance of infrastructure repairs in this
State, including | ||||||
8 | but not limited to municipal roads and streets, access roads,
| ||||||
9 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
10 | line extensions,
water distribution and purification | ||||||
11 | facilities, storm water drainage and
retention facilities, and | ||||||
12 | sewage treatment facilities, resulting from a State
or | ||||||
13 | federally declared disaster in Illinois or bordering Illinois | ||||||
14 | when such
repairs are initiated on facilities located in the | ||||||
15 | declared disaster area
within 6 months after the disaster.
| ||||||
16 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
17 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
18 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
19 | provisions
of
Section 3-90.
| ||||||
20 | (27) A motor vehicle, as that term is defined in Section | ||||||
21 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
22 | corporation, limited liability company,
society, association, | ||||||
23 | foundation, or institution that is determined by the
Department | ||||||
24 | to be organized and operated exclusively for educational | ||||||
25 | purposes.
For purposes of this exemption, "a corporation, | ||||||
26 | limited liability company,
society, association, foundation, |
| |||||||
| |||||||
1 | or institution organized and operated
exclusively for | ||||||
2 | educational purposes" means all tax-supported public schools,
| ||||||
3 | private schools that offer systematic instruction in useful | ||||||
4 | branches of
learning by methods common to public schools and | ||||||
5 | that compare favorably in
their scope and intensity with the | ||||||
6 | course of study presented in tax-supported
schools, and | ||||||
7 | vocational or technical schools or institutes organized and
| ||||||
8 | operated exclusively to provide a course of study of not less | ||||||
9 | than 6 weeks
duration and designed to prepare individuals to | ||||||
10 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
11 | industrial, business, or commercial
occupation.
| ||||||
12 | (28) Beginning January 1, 2000, personal property, | ||||||
13 | including
food,
purchased through fundraising
events for the | ||||||
14 | benefit of
a public or private elementary or
secondary school, | ||||||
15 | a group of those schools, or one or more school
districts if | ||||||
16 | the events are
sponsored by an entity recognized by the school | ||||||
17 | district that consists
primarily of volunteers and includes
| ||||||
18 | parents and teachers of the school children. This paragraph | ||||||
19 | does not apply
to fundraising
events (i) for the benefit of | ||||||
20 | private home instruction or (ii)
for which the fundraising | ||||||
21 | entity purchases the personal property sold at
the events from | ||||||
22 | another individual or entity that sold the property for the
| ||||||
23 | purpose of resale by the fundraising entity and that
profits | ||||||
24 | from the sale to the
fundraising entity. This paragraph is | ||||||
25 | exempt
from the provisions
of Section 3-90.
| ||||||
26 | (29) Beginning January 1, 2000 and through December 31, |
| |||||||
| |||||||
1 | 2001, new or
used automatic vending
machines that prepare and | ||||||
2 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
3 | items, and replacement parts for these machines.
Beginning | ||||||
4 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
5 | for machines used in
commercial, coin-operated amusement and | ||||||
6 | vending business if a use or occupation
tax is paid on the | ||||||
7 | gross receipts derived from the use of the commercial,
| ||||||
8 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
9 | is exempt from the provisions of Section 3-90.
| ||||||
10 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
11 | food for human consumption that is to be consumed off the | ||||||
12 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
13 | drinks, and food that
has been prepared for immediate | ||||||
14 | consumption) and prescription and
nonprescription medicines, | ||||||
15 | drugs, medical appliances, and insulin, urine
testing | ||||||
16 | materials, syringes, and needles used by diabetics, for human | ||||||
17 | use, when
purchased for use by a person receiving medical | ||||||
18 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
19 | resides in a licensed long-term care facility,
as defined in | ||||||
20 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
21 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
22 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
23 | (31) Beginning on
the effective date of this amendatory Act | ||||||
24 | of the 92nd General Assembly,
computers and communications | ||||||
25 | equipment
utilized for any hospital purpose and equipment used | ||||||
26 | in the diagnosis,
analysis, or treatment of hospital patients |
| |||||||
| |||||||
1 | purchased by a lessor who leases
the equipment, under a lease | ||||||
2 | of one year or longer executed or in effect at the
time the | ||||||
3 | lessor would otherwise be subject to the tax imposed by this | ||||||
4 | Act, to a
hospital that has been issued an active tax exemption | ||||||
5 | identification number by
the Department under Section 1g of the | ||||||
6 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
7 | manner that does not qualify for this exemption or is
used in | ||||||
8 | any other nonexempt manner, the lessor shall be liable for the | ||||||
9 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
10 | case may be, based on
the fair market value of the property at | ||||||
11 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
12 | or attempt to collect an amount (however
designated) that | ||||||
13 | purports to reimburse that lessor for the tax imposed by this
| ||||||
14 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
15 | has not been
paid by the lessor. If a lessor improperly | ||||||
16 | collects any such amount from the
lessee, the lessee shall have | ||||||
17 | a legal right to claim a refund of that amount
from the lessor. | ||||||
18 | If, however, that amount is not refunded to the lessee for
any | ||||||
19 | reason, the lessor is liable to pay that amount to the | ||||||
20 | Department.
This paragraph is exempt from the provisions of | ||||||
21 | Section 3-90.
| ||||||
22 | (32) Beginning on
the effective date of this amendatory Act | ||||||
23 | of the 92nd General Assembly,
personal property purchased by a | ||||||
24 | lessor who leases the property,
under a lease of one year or | ||||||
25 | longer executed or in effect at the time the
lessor would | ||||||
26 | otherwise be subject to the tax imposed by this Act, to a
|
| |||||||
| |||||||
1 | governmental body that has been issued an active sales tax | ||||||
2 | exemption
identification number by the Department under | ||||||
3 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
4 | property is leased in a manner that does not
qualify for this | ||||||
5 | exemption or used in any other nonexempt manner, the lessor
| ||||||
6 | shall be liable for the tax imposed under this Act or the | ||||||
7 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
8 | market value of the property at the time
the nonqualifying use | ||||||
9 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
10 | (however designated) that purports to reimburse that lessor for | ||||||
11 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
12 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
13 | lessor improperly collects any such
amount from the lessee, the | ||||||
14 | lessee shall have a legal right to claim a refund
of that | ||||||
15 | amount from the lessor. If, however, that amount is not | ||||||
16 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
17 | pay that amount to the
Department. This paragraph is exempt | ||||||
18 | from the provisions of Section 3-90.
| ||||||
19 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
20 | the use in this State of motor vehicles of
the second division | ||||||
21 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
22 | are subject to the commercial distribution fee imposed under | ||||||
23 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
24 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
25 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
26 | weight rating in excess of 8,000 pounds; (ii) that are subject |
| |||||||
| |||||||
1 | to the commercial distribution fee imposed under Section | ||||||
2 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
3 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
4 | this exemption applies to repair and
replacement parts added | ||||||
5 | after the initial purchase of such a motor vehicle if
that | ||||||
6 | motor
vehicle is used in a manner that would qualify for the | ||||||
7 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
8 | purposes of this paragraph, the term "used for commercial | ||||||
9 | purposes" means the transportation of persons or property in | ||||||
10 | furtherance of any commercial or industrial enterprise, | ||||||
11 | whether for-hire or not.
| ||||||
12 | (34) Beginning January 1, 2008, tangible personal property | ||||||
13 | used in the construction or maintenance of a community water | ||||||
14 | supply, as defined under Section 3.145 of the Environmental | ||||||
15 | Protection Act, that is operated by a not-for-profit | ||||||
16 | corporation that holds a valid water supply permit issued under | ||||||
17 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
18 | exempt from the provisions of Section 3-90. | ||||||
19 | (35) Beginning January 1, 2010, materials, parts, | ||||||
20 | equipment, components, and furnishings incorporated into or | ||||||
21 | upon an aircraft as part of the modification, refurbishment, | ||||||
22 | completion, replacement, repair, or maintenance of the | ||||||
23 | aircraft. This exemption includes consumable supplies used in | ||||||
24 | the modification, refurbishment, completion, replacement, | ||||||
25 | repair, and maintenance of aircraft, but excludes any | ||||||
26 | materials, parts, equipment, components, and consumable |
| |||||||
| |||||||
1 | supplies used in the modification, replacement, repair, and | ||||||
2 | maintenance of aircraft engines or power plants, whether such | ||||||
3 | engines or power plants are installed or uninstalled upon any | ||||||
4 | such aircraft. "Consumable supplies" include, but are not | ||||||
5 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
6 | lubricants, cleaning solution, latex gloves, and protective | ||||||
7 | films. This exemption applies only to the use of qualifying | ||||||
8 | tangible personal property by persons who modify, refurbish, | ||||||
9 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
10 | hold an Air Agency Certificate and are empowered to operate an | ||||||
11 | approved repair station by the Federal Aviation | ||||||
12 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
13 | operations in accordance with Part 145 of the Federal Aviation | ||||||
14 | Regulations. The exemption does not include aircraft operated | ||||||
15 | by a commercial air carrier providing scheduled passenger air | ||||||
16 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
17 | of the Federal Aviation Regulations. The changes made to this | ||||||
18 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
19 | law. | ||||||
20 | (36) Tangible personal property purchased by a | ||||||
21 | public-facilities corporation, as described in Section | ||||||
22 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
23 | constructing or furnishing a municipal convention hall, but | ||||||
24 | only if the legal title to the municipal convention hall is | ||||||
25 | transferred to the municipality without any further | ||||||
26 | consideration by or on behalf of the municipality at the time |
| |||||||
| |||||||
1 | of the completion of the municipal convention hall or upon the | ||||||
2 | retirement or redemption of any bonds or other debt instruments | ||||||
3 | issued by the public-facilities corporation in connection with | ||||||
4 | the development of the municipal convention hall. This | ||||||
5 | exemption includes existing public-facilities corporations as | ||||||
6 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
7 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
8 | (37) Personal property purchased by a veterans | ||||||
9 | organization. To be eligible for the exemption under this | ||||||
10 | paragraph, the veterans organization must have an active | ||||||
11 | identification number issued by
the Department. For the | ||||||
12 | purposes of this paragraph (37), the term "veterans | ||||||
13 | organization" means an association or other entity organized | ||||||
14 | for the benefit of veterans that has been recognized or | ||||||
15 | chartered by the United States Congress and includes, but is | ||||||
16 | not limited to, the American Legion, the Legion of Honor, the | ||||||
17 | Patriot Guard, the Missing in America Project, the Veterans of | ||||||
18 | Foreign Wars, and the Vietnam Veterans of America. This | ||||||
19 | paragraph is exempt from the provisions of Section 3-90. | ||||||
20 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
21 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
22 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
23 | 7-29-15.)
| ||||||
24 | Section 10. The Service Use Tax Act is amended by changing | ||||||
25 | Section 3-5 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 110/3-5)
| ||||||
2 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
3 | personal property
is exempt from the tax imposed by this Act:
| ||||||
4 | (1) Personal property purchased from a corporation, | ||||||
5 | society,
association, foundation, institution, or | ||||||
6 | organization, other than a limited
liability company, that is | ||||||
7 | organized and operated as a not-for-profit service
enterprise | ||||||
8 | for the benefit of persons 65 years of age or older if the | ||||||
9 | personal
property was not purchased by the enterprise for the | ||||||
10 | purpose of resale by the
enterprise.
| ||||||
11 | (2) Personal property purchased by a non-profit Illinois | ||||||
12 | county fair
association for use in conducting, operating, or | ||||||
13 | promoting the county fair.
| ||||||
14 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
15 | cultural
organization that establishes, by proof required by | ||||||
16 | the Department by rule,
that it has received an exemption under | ||||||
17 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
18 | organized and operated primarily for the
presentation
or | ||||||
19 | support of arts or cultural programming, activities, or | ||||||
20 | services. These
organizations include, but are not limited to, | ||||||
21 | music and dramatic arts
organizations such as symphony | ||||||
22 | orchestras and theatrical groups, arts and
cultural service | ||||||
23 | organizations, local arts councils, visual arts organizations,
| ||||||
24 | and media arts organizations.
On and after the effective date | ||||||
25 | of this amendatory Act of the 92nd General
Assembly, however, |
| |||||||
| |||||||
1 | an entity otherwise eligible for this exemption shall not
make | ||||||
2 | tax-free purchases unless it has an active identification | ||||||
3 | number issued by
the Department.
| ||||||
4 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
5 | coinage issued
by the State of Illinois, the government of the | ||||||
6 | United States of America,
or the government of any foreign | ||||||
7 | country, and bullion.
| ||||||
8 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
9 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
10 | equipment, including
repair and
replacement parts, both new and | ||||||
11 | used, and including that manufactured on
special order or | ||||||
12 | purchased for lease, certified by the purchaser to be used
| ||||||
13 | primarily for graphic arts production.
Equipment includes | ||||||
14 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
15 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
16 | immediate
change upon a graphic arts product.
| ||||||
17 | (6) Personal property purchased from a teacher-sponsored | ||||||
18 | student
organization affiliated with an elementary or | ||||||
19 | secondary school located
in Illinois.
| ||||||
20 | (7) Farm machinery and equipment, both new and used, | ||||||
21 | including that
manufactured on special order, certified by the | ||||||
22 | purchaser to be used
primarily for production agriculture or | ||||||
23 | State or federal agricultural
programs, including individual | ||||||
24 | replacement parts for the machinery and
equipment, including | ||||||
25 | machinery and equipment purchased for lease,
and including | ||||||
26 | implements of husbandry defined in Section 1-130 of
the |
| |||||||
| |||||||
1 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
2 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
3 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
4 | but
excluding other motor vehicles required to be registered | ||||||
5 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
6 | hoop houses used for propagating, growing, or
overwintering | ||||||
7 | plants shall be considered farm machinery and equipment under
| ||||||
8 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
9 | shall include units sold
separately from a motor vehicle | ||||||
10 | required to be licensed and units sold mounted
on a motor | ||||||
11 | vehicle required to be licensed if the selling price of the | ||||||
12 | tender
is separately stated.
| ||||||
13 | Farm machinery and equipment shall include precision | ||||||
14 | farming equipment
that is
installed or purchased to be | ||||||
15 | installed on farm machinery and equipment
including, but not | ||||||
16 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
17 | or spreaders.
Precision farming equipment includes, but is not | ||||||
18 | limited to,
soil testing sensors, computers, monitors, | ||||||
19 | software, global positioning
and mapping systems, and other | ||||||
20 | such equipment.
| ||||||
21 | Farm machinery and equipment also includes computers, | ||||||
22 | sensors, software, and
related equipment used primarily in the
| ||||||
23 | computer-assisted operation of production agriculture | ||||||
24 | facilities, equipment,
and activities such as, but
not limited | ||||||
25 | to,
the collection, monitoring, and correlation of
animal and | ||||||
26 | crop data for the purpose of
formulating animal diets and |
| |||||||
| |||||||
1 | agricultural chemicals. This item (7) is exempt
from the | ||||||
2 | provisions of
Section 3-75.
| ||||||
3 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
4 | to or used by an air common
carrier, certified by the carrier | ||||||
5 | to be used for consumption, shipment, or
storage in the conduct | ||||||
6 | of its business as an air common carrier, for a
flight destined | ||||||
7 | for or returning from a location or locations
outside the | ||||||
8 | United States without regard to previous or subsequent domestic
| ||||||
9 | stopovers.
| ||||||
10 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
11 | or used by an air carrier, certified by the carrier to be used | ||||||
12 | for consumption, shipment, or storage in the conduct of its | ||||||
13 | business as an air common carrier, for a flight that (i) is | ||||||
14 | engaged in foreign trade or is engaged in trade between the | ||||||
15 | United States and any of its possessions and (ii) transports at | ||||||
16 | least one individual or package for hire from the city of | ||||||
17 | origination to the city of final destination on the same | ||||||
18 | aircraft, without regard to a change in the flight number of | ||||||
19 | that aircraft. | ||||||
20 | (9) Proceeds of mandatory service charges separately | ||||||
21 | stated on
customers' bills for the purchase and consumption of | ||||||
22 | food and beverages
acquired as an incident to the purchase of a | ||||||
23 | service from a serviceman, to
the extent that the proceeds of | ||||||
24 | the service charge are in fact
turned over as tips or as a | ||||||
25 | substitute for tips to the employees who
participate directly | ||||||
26 | in preparing, serving, hosting or cleaning up the
food or |
| |||||||
| |||||||
1 | beverage function with respect to which the service charge is | ||||||
2 | imposed.
| ||||||
3 | (10) 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 | ||||||
10 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
11 | required to be registered under the Illinois
Vehicle Code.
| ||||||
12 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
13 | and
equipment, including repair and replacement parts, both new | ||||||
14 | and
used, including that manufactured on special order, | ||||||
15 | certified by the
purchaser to be used primarily for | ||||||
16 | photoprocessing, and including
photoprocessing machinery and | ||||||
17 | equipment purchased for lease.
| ||||||
18 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
19 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
20 | including
replacement parts and equipment, and including
| ||||||
21 | equipment purchased for lease, but excluding motor vehicles | ||||||
22 | required to be
registered under the Illinois Vehicle Code. The | ||||||
23 | changes made to this Section by Public Act 97-767 apply on and | ||||||
24 | after July 1, 2003, but no claim for credit or refund is | ||||||
25 | allowed on or after August 16, 2013 (the effective date of | ||||||
26 | Public Act 98-456)
for such taxes paid during the period |
| |||||||
| |||||||
1 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
2 | effective date of Public Act 98-456).
| ||||||
3 | (13) Semen used for artificial insemination of livestock | ||||||
4 | for direct
agricultural production.
| ||||||
5 | (14) Horses, or interests in horses, registered with and | ||||||
6 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
7 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
8 | Horse Association, United States
Trotting Association, or | ||||||
9 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
10 | racing for prizes. This item (14) is exempt from the provisions | ||||||
11 | of Section 3-75, and the exemption provided for under this item | ||||||
12 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
13 | claim for credit or refund is allowed on or after the effective | ||||||
14 | date of this amendatory Act of the 95th General Assembly for | ||||||
15 | such taxes paid during the period beginning May 30, 2000 and | ||||||
16 | ending on the effective date of this amendatory Act of the 95th | ||||||
17 | General Assembly.
| ||||||
18 | (15) Computers and communications equipment utilized for | ||||||
19 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
20 | analysis, or treatment of hospital patients purchased by a | ||||||
21 | lessor who leases
the
equipment, under a lease of one year or | ||||||
22 | longer executed or in effect at the
time
the lessor would | ||||||
23 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
24 | hospital
that has been issued an active tax exemption | ||||||
25 | identification number by the
Department under Section 1g of the | ||||||
26 | Retailers' Occupation Tax Act.
If the
equipment is leased in a |
| |||||||
| |||||||
1 | manner that does not qualify for
this exemption
or is used in | ||||||
2 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
3 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
4 | be, based on the fair market value of the property at the time | ||||||
5 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
6 | attempt to collect an
amount (however
designated) that purports | ||||||
7 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
8 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
9 | the lessor. If a lessor improperly collects any such amount | ||||||
10 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
11 | refund of that amount
from the lessor. If, however, that amount | ||||||
12 | is not refunded to the lessee for
any reason, the lessor is | ||||||
13 | liable to pay that amount to the Department.
| ||||||
14 | (16) Personal property purchased by a lessor who leases the
| ||||||
15 | property, under
a
lease of one year or longer executed or in | ||||||
16 | effect at the time
the lessor would otherwise be subject to the | ||||||
17 | tax imposed by this Act,
to a governmental body
that has been | ||||||
18 | issued an active tax exemption identification number by the
| ||||||
19 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
20 | Act.
If the
property is leased in a manner that does not | ||||||
21 | qualify for
this exemption
or is used in any other non-exempt | ||||||
22 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
23 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
24 | fair market value of the property at the time the
| ||||||
25 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
26 | to collect an
amount (however
designated) that purports to |
| |||||||
| |||||||
1 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
2 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
3 | the lessor. If a lessor improperly collects any such amount | ||||||
4 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
5 | refund of that amount
from the lessor. If, however, that amount | ||||||
6 | is not refunded to the lessee for
any reason, the lessor is | ||||||
7 | liable to pay that amount to the Department.
| ||||||
8 | (17) 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 | (18) 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 |
| |||||||
| |||||||
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 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
5 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
6 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
7 | provisions
of
Section 3-75.
| ||||||
8 | (20) 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 | (21) Beginning January 1, 2000, personal property, |
| |||||||
| |||||||
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 3-75.
| ||||||
14 | (22) 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 3-75.
| ||||||
24 | (23) 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 |
| |||||||
| |||||||
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 in a licensed facility as defined | ||||||
9 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
10 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
11 | (24) Beginning on the effective date of this amendatory Act | ||||||
12 | of the 92nd
General Assembly, computers and communications | ||||||
13 | equipment
utilized for any hospital purpose and equipment used | ||||||
14 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
15 | purchased by a lessor who leases
the equipment, under a lease | ||||||
16 | of one year or longer executed or in effect at the
time the | ||||||
17 | lessor would otherwise be subject to the tax imposed by this | ||||||
18 | Act, to a
hospital that has been issued an active tax exemption | ||||||
19 | identification number by
the Department under Section 1g of the | ||||||
20 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
21 | manner that does not qualify for this exemption or is
used in | ||||||
22 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
23 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
24 | be, based on the
fair market value of the property at the time | ||||||
25 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
26 | attempt to collect an amount (however
designated) that purports |
| |||||||
| |||||||
1 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
2 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
3 | the lessor. If a lessor improperly collects any such amount | ||||||
4 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
5 | refund of that amount
from the lessor. If, however, that amount | ||||||
6 | is not refunded to the lessee for
any reason, the lessor is | ||||||
7 | liable to pay that amount to the Department.
This paragraph is | ||||||
8 | exempt from the provisions of Section 3-75.
| ||||||
9 | (25) Beginning
on the effective date of this amendatory Act | ||||||
10 | of the 92nd General Assembly,
personal property purchased by a | ||||||
11 | lessor
who leases the property, under a lease of one year or | ||||||
12 | longer executed or in
effect at the time the lessor would | ||||||
13 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
14 | governmental body 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 property is leased in a | ||||||
17 | manner that does not
qualify for this exemption or is used in | ||||||
18 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
19 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
20 | be, based on the fair market value of the property at the time
| ||||||
21 | the nonqualifying use occurs. No lessor shall collect or | ||||||
22 | attempt to collect
an amount (however designated) that purports | ||||||
23 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
24 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
25 | the lessor. If a lessor improperly collects any such amount
| ||||||
26 | from the lessee, the lessee shall have a legal right to claim a |
| |||||||
| |||||||
1 | refund of that
amount from the lessor. If, however, that amount | ||||||
2 | is not refunded to the lessee
for any reason, the lessor is | ||||||
3 | liable to pay that amount to the Department.
This paragraph is | ||||||
4 | exempt from the provisions of Section 3-75.
| ||||||
5 | (26) Beginning January 1, 2008, tangible personal property | ||||||
6 | used in the construction or maintenance of a community water | ||||||
7 | supply, as defined under Section 3.145 of the Environmental | ||||||
8 | Protection Act, that is operated by a not-for-profit | ||||||
9 | corporation that holds a valid water supply permit issued under | ||||||
10 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
11 | exempt from the provisions of Section 3-75.
| ||||||
12 | (27) Beginning January 1, 2010, materials, parts, | ||||||
13 | equipment, components, and furnishings incorporated into or | ||||||
14 | upon an aircraft as part of the modification, refurbishment, | ||||||
15 | completion, replacement, repair, or maintenance of the | ||||||
16 | aircraft. This exemption includes consumable supplies used in | ||||||
17 | the modification, refurbishment, completion, replacement, | ||||||
18 | repair, and maintenance of aircraft, but excludes any | ||||||
19 | materials, parts, equipment, components, and consumable | ||||||
20 | supplies used in the modification, replacement, repair, and | ||||||
21 | maintenance of aircraft engines or power plants, whether such | ||||||
22 | engines or power plants are installed or uninstalled upon any | ||||||
23 | such aircraft. "Consumable supplies" include, but are not | ||||||
24 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
25 | lubricants, cleaning solution, latex gloves, and protective | ||||||
26 | films. This exemption applies only to the use of qualifying |
| |||||||
| |||||||
1 | tangible personal property transferred incident to the | ||||||
2 | modification, refurbishment, completion, replacement, repair, | ||||||
3 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
4 | Agency Certificate and are empowered to operate an approved | ||||||
5 | repair station by the Federal Aviation Administration, (ii) | ||||||
6 | have a Class IV Rating, and (iii) conduct operations in | ||||||
7 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
8 | The exemption does not include aircraft operated by a | ||||||
9 | commercial air carrier providing scheduled passenger air | ||||||
10 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
11 | of the Federal Aviation Regulations. The changes made to this | ||||||
12 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
13 | law. | ||||||
14 | (28) Tangible personal property purchased by a | ||||||
15 | public-facilities corporation, as described in Section | ||||||
16 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
17 | constructing or furnishing a municipal convention hall, but | ||||||
18 | only if the legal title to the municipal convention hall is | ||||||
19 | transferred to the municipality without any further | ||||||
20 | consideration by or on behalf of the municipality at the time | ||||||
21 | of the completion of the municipal convention hall or upon the | ||||||
22 | retirement or redemption of any bonds or other debt instruments | ||||||
23 | issued by the public-facilities corporation in connection with | ||||||
24 | the development of the municipal convention hall. This | ||||||
25 | exemption includes existing public-facilities corporations as | ||||||
26 | provided in Section 11-65-25 of the Illinois Municipal Code. |
| |||||||
| |||||||
1 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
2 | (29) Personal property purchased by a veterans | ||||||
3 | organization. To be eligible for the exemption under this | ||||||
4 | paragraph, the veterans organization must have an active | ||||||
5 | identification number issued by
the Department. For the | ||||||
6 | purposes of this paragraph (29), the term "veterans | ||||||
7 | organization" means an association or other entity organized | ||||||
8 | for the benefit of veterans that has been recognized or | ||||||
9 | chartered by the United States Congress and includes, but is | ||||||
10 | not limited to, the American Legion, the Legion of Honor, the | ||||||
11 | Patriot Guard, the Missing in America Project, the Veterans of | ||||||
12 | Foreign Wars, and the Vietnam Veterans of America. This | ||||||
13 | paragraph is exempt from the provisions of Section 3-75. | ||||||
14 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
15 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
16 | 7-16-14; 99-180, eff. 7-29-15.)
| ||||||
17 | Section 15. The Service Occupation Tax Act is amended by | ||||||
18 | changing Section 3-5 as follows:
| ||||||
19 | (35 ILCS 115/3-5)
| ||||||
20 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
21 | property is
exempt from the tax imposed by this Act:
| ||||||
22 | (1) Personal property sold by a corporation, society, | ||||||
23 | association,
foundation, institution, or organization, other | ||||||
24 | than a limited liability
company, that is organized and |
| |||||||
| |||||||
1 | operated as a not-for-profit service enterprise
for the benefit | ||||||
2 | of persons 65 years of age or older if the personal property
| ||||||
3 | was not purchased by the enterprise for the purpose of resale | ||||||
4 | by the
enterprise.
| ||||||
5 | (2) Personal property purchased by a not-for-profit | ||||||
6 | Illinois county fair
association for use in conducting, | ||||||
7 | operating, or promoting the county fair.
| ||||||
8 | (3) Personal property purchased by any not-for-profit
arts | ||||||
9 | or cultural organization that establishes, by proof required by | ||||||
10 | the
Department by
rule, that it has received an exemption under | ||||||
11 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
12 | organized and operated primarily for the
presentation
or | ||||||
13 | support of arts or cultural programming, activities, or | ||||||
14 | services. These
organizations include, but are not limited to, | ||||||
15 | music and dramatic arts
organizations such as symphony | ||||||
16 | orchestras and theatrical groups, arts and
cultural service | ||||||
17 | organizations, local arts councils, visual arts organizations,
| ||||||
18 | and media arts organizations.
On and after the effective date | ||||||
19 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
20 | an entity otherwise eligible for this exemption shall not
make | ||||||
21 | tax-free purchases unless it has an active identification | ||||||
22 | number issued by
the Department.
| ||||||
23 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
24 | coinage
issued by the State of Illinois, the government of the | ||||||
25 | United States of
America, or the government of any foreign | ||||||
26 | country, and bullion.
|
| |||||||
| |||||||
1 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
2 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
3 | equipment, including
repair and
replacement parts, both new and | ||||||
4 | used, and including that manufactured on
special order or | ||||||
5 | purchased for lease, certified by the purchaser to be used
| ||||||
6 | primarily for graphic arts production.
Equipment includes | ||||||
7 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
8 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
9 | immediate change
upon a graphic arts product.
| ||||||
10 | (6) Personal property sold by a teacher-sponsored student | ||||||
11 | organization
affiliated with an elementary or secondary school | ||||||
12 | located in Illinois.
| ||||||
13 | (7) Farm machinery and equipment, both new and used, | ||||||
14 | including that
manufactured on special order, certified by the | ||||||
15 | purchaser to be used
primarily for production agriculture or | ||||||
16 | State or federal agricultural
programs, including individual | ||||||
17 | replacement parts for the machinery and
equipment, including | ||||||
18 | machinery and equipment purchased for lease,
and including | ||||||
19 | implements of husbandry defined in Section 1-130 of
the | ||||||
20 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
21 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
22 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
23 | but
excluding other motor vehicles required to be registered | ||||||
24 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
25 | hoop houses used for propagating, growing, or
overwintering | ||||||
26 | plants shall be considered farm machinery and equipment under
|
| |||||||
| |||||||
1 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
2 | shall include units sold
separately from a motor vehicle | ||||||
3 | required to be licensed and units sold mounted
on a motor | ||||||
4 | vehicle required to be licensed if the selling price of the | ||||||
5 | tender
is separately stated.
| ||||||
6 | Farm machinery and equipment shall include precision | ||||||
7 | farming equipment
that is
installed or purchased to be | ||||||
8 | installed on farm machinery and equipment
including, but not | ||||||
9 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
10 | or spreaders.
Precision farming equipment includes, but is not | ||||||
11 | limited to,
soil testing sensors, computers, monitors, | ||||||
12 | software, global positioning
and mapping systems, and other | ||||||
13 | such equipment.
| ||||||
14 | Farm machinery and equipment also includes computers, | ||||||
15 | sensors, software, and
related equipment used primarily in the
| ||||||
16 | computer-assisted operation of production agriculture | ||||||
17 | facilities, equipment,
and activities such as, but
not limited | ||||||
18 | to,
the collection, monitoring, and correlation of
animal and | ||||||
19 | crop data for the purpose of
formulating animal diets and | ||||||
20 | agricultural chemicals. This item (7) is exempt
from the | ||||||
21 | provisions of
Section 3-55.
| ||||||
22 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
23 | to or used by an air common
carrier, certified by the carrier | ||||||
24 | to be used for consumption, shipment,
or storage in the conduct | ||||||
25 | of its business as an air common carrier, for
a flight destined | ||||||
26 | for or returning from a location or locations
outside the |
| |||||||
| |||||||
1 | United States without regard to previous or subsequent domestic
| ||||||
2 | stopovers.
| ||||||
3 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
4 | or used by an air carrier, certified by the carrier to be used | ||||||
5 | for consumption, shipment, or storage in the conduct of its | ||||||
6 | business as an air common carrier, for a flight that (i) is | ||||||
7 | engaged in foreign trade or is engaged in trade between the | ||||||
8 | United States and any of its possessions and (ii) transports at | ||||||
9 | least one individual or package for hire from the city of | ||||||
10 | origination to the city of final destination on the same | ||||||
11 | aircraft, without regard to a change in the flight number of | ||||||
12 | that aircraft. | ||||||
13 | (9) Proceeds of mandatory service charges separately
| ||||||
14 | stated on customers' bills for the purchase and consumption of | ||||||
15 | food and
beverages, to the extent that the proceeds of the | ||||||
16 | service charge are in fact
turned over as tips or as a | ||||||
17 | substitute for tips to the employees who
participate directly | ||||||
18 | in preparing, serving, hosting or cleaning up the
food or | ||||||
19 | beverage function with respect to which the service charge is | ||||||
20 | imposed.
| ||||||
21 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
22 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
23 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
24 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
25 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
26 | individual replacement part for oil field exploration,
|
| |||||||
| |||||||
1 | drilling, and production equipment, and (vi) machinery and | ||||||
2 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
3 | required to be registered under the Illinois
Vehicle Code.
| ||||||
4 | (11) Photoprocessing machinery and equipment, including | ||||||
5 | repair and
replacement parts, both new and used, including that | ||||||
6 | manufactured on
special order, certified by the purchaser to be | ||||||
7 | used primarily for
photoprocessing, and including | ||||||
8 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
9 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
10 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
11 | including
replacement parts and equipment, and including
| ||||||
12 | equipment
purchased for lease, but excluding motor vehicles | ||||||
13 | required to be registered
under the Illinois Vehicle Code. The | ||||||
14 | changes made to this Section by Public Act 97-767 apply on and | ||||||
15 | after July 1, 2003, but no claim for credit or refund is | ||||||
16 | allowed on or after August 16, 2013 (the effective date of | ||||||
17 | Public Act 98-456)
for such taxes paid during the period | ||||||
18 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
19 | effective date of Public Act 98-456).
| ||||||
20 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
21 | food for human consumption that is to be consumed off the | ||||||
22 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
23 | drinks and food that
has been prepared for immediate | ||||||
24 | consumption) and prescription and
non-prescription medicines, | ||||||
25 | drugs, medical appliances, and insulin, urine
testing | ||||||
26 | materials, syringes, and needles used by diabetics, for human |
| |||||||
| |||||||
1 | use,
when purchased for use by a person receiving medical | ||||||
2 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
3 | resides in a licensed
long-term care facility, as defined in | ||||||
4 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
5 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
6 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
7 | (14) Semen used for artificial insemination of livestock | ||||||
8 | for direct
agricultural production.
| ||||||
9 | (15) 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 (15) is exempt from the provisions | ||||||
15 | of Section 3-55, and the exemption provided for under this item | ||||||
16 | (15) 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 | (16) 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 |
| |||||||
| |||||||
1 | identification number by the
Department under Section 1g of the | ||||||
2 | Retailers' Occupation Tax Act.
| ||||||
3 | (17) 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 the Retailers' Occupation | ||||||
8 | Tax Act.
| ||||||
9 | (18) Beginning with taxable years ending on or after | ||||||
10 | December
31, 1995
and
ending with taxable years ending on or | ||||||
11 | before December 31, 2004,
personal property that is
donated for | ||||||
12 | disaster relief to be used in a State or federally declared
| ||||||
13 | disaster area in Illinois or bordering Illinois by a | ||||||
14 | manufacturer or retailer
that is registered in this State to a | ||||||
15 | corporation, society, association,
foundation, or institution | ||||||
16 | that has been issued a sales tax exemption
identification | ||||||
17 | number by the Department that assists victims of the disaster
| ||||||
18 | who reside within the declared disaster area.
| ||||||
19 | (19) Beginning with taxable years ending on or after | ||||||
20 | December
31, 1995 and
ending with taxable years ending on or | ||||||
21 | before December 31, 2004, personal
property that is used in the | ||||||
22 | performance of infrastructure repairs in this
State, including | ||||||
23 | but not limited to municipal roads and streets, access roads,
| ||||||
24 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
25 | line extensions,
water distribution and purification | ||||||
26 | facilities, storm water drainage and
retention facilities, and |
| |||||||
| |||||||
1 | sewage treatment facilities, resulting from a State
or | ||||||
2 | federally declared disaster in Illinois or bordering Illinois | ||||||
3 | when such
repairs are initiated on facilities located in the | ||||||
4 | declared disaster area
within 6 months after the disaster.
| ||||||
5 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
6 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
7 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
8 | provisions
of
Section 3-55.
| ||||||
9 | (21) A motor vehicle, as that term is defined in Section | ||||||
10 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
11 | corporation, limited liability
company, society, association, | ||||||
12 | foundation, or institution that is determined by
the Department | ||||||
13 | to be organized and operated exclusively for educational
| ||||||
14 | purposes. For purposes of this exemption, "a corporation, | ||||||
15 | limited liability
company, society, association, foundation, | ||||||
16 | or institution organized and
operated
exclusively for | ||||||
17 | educational purposes" means all tax-supported public schools,
| ||||||
18 | private schools that offer systematic instruction in useful | ||||||
19 | branches of
learning by methods common to public schools and | ||||||
20 | that compare favorably in
their scope and intensity with the | ||||||
21 | course of study presented in tax-supported
schools, and | ||||||
22 | vocational or technical schools or institutes organized and
| ||||||
23 | operated exclusively to provide a course of study of not less | ||||||
24 | than 6 weeks
duration and designed to prepare individuals to | ||||||
25 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
26 | industrial, business, or commercial
occupation.
|
| |||||||
| |||||||
1 | (22) Beginning January 1, 2000, personal property, | ||||||
2 | including
food,
purchased through fundraising
events for the | ||||||
3 | benefit of
a public or private elementary or
secondary school, | ||||||
4 | a group of those schools, or one or more school
districts if | ||||||
5 | the events are
sponsored by an entity recognized by the school | ||||||
6 | district that consists
primarily of volunteers and includes
| ||||||
7 | parents and teachers of the school children. This paragraph | ||||||
8 | does not apply
to fundraising
events (i) for the benefit of | ||||||
9 | private home instruction or (ii)
for which the fundraising | ||||||
10 | entity purchases the personal property sold at
the events from | ||||||
11 | another individual or entity that sold the property for the
| ||||||
12 | purpose of resale by the fundraising entity and that
profits | ||||||
13 | from the sale to the
fundraising entity. This paragraph is | ||||||
14 | exempt
from the provisions
of Section 3-55.
| ||||||
15 | (23) Beginning January 1, 2000
and through December 31, | ||||||
16 | 2001, new or used automatic vending
machines that prepare and | ||||||
17 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
18 | items, and replacement parts for these machines.
Beginning | ||||||
19 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
20 | for
machines used in commercial, coin-operated amusement
and | ||||||
21 | vending business if a use or occupation tax is paid on the | ||||||
22 | gross receipts
derived from
the use of the commercial, | ||||||
23 | coin-operated amusement and vending machines.
This paragraph | ||||||
24 | is exempt from the provisions of Section 3-55.
| ||||||
25 | (24) Beginning
on the effective date of this amendatory Act | ||||||
26 | of the 92nd General Assembly,
computers and communications |
| |||||||
| |||||||
1 | equipment
utilized for any hospital purpose and equipment used | ||||||
2 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
3 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
4 | year or longer executed or in effect at the
time of the | ||||||
5 | purchase, to a hospital that has been issued an active tax
| ||||||
6 | exemption identification number by the Department under | ||||||
7 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
8 | is exempt from the provisions of
Section 3-55.
| ||||||
9 | (25) Beginning
on the effective date of this amendatory Act | ||||||
10 | of the 92nd General Assembly,
personal property sold to a | ||||||
11 | lessor who
leases the property, under a lease of one year or | ||||||
12 | longer executed or in effect
at the time of the purchase, to a | ||||||
13 | governmental body that has been issued an
active tax exemption | ||||||
14 | identification number by the Department under Section 1g
of the | ||||||
15 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
16 | the
provisions of Section 3-55.
| ||||||
17 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
18 | 2016, tangible personal property
purchased
from an Illinois | ||||||
19 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
20 | activities in Illinois who will, upon receipt of the property | ||||||
21 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
22 | the purpose of subsequently
transporting it outside this State | ||||||
23 | for use or consumption thereafter solely
outside this State or | ||||||
24 | (ii) for the purpose of being processed, fabricated, or
| ||||||
25 | manufactured into, attached to, or incorporated into other | ||||||
26 | tangible personal
property to be transported outside this State |
| |||||||
| |||||||
1 | and thereafter used or consumed
solely outside this State. The | ||||||
2 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
3 | accordance with the Illinois Administrative Procedure Act, | ||||||
4 | issue a
permit to any taxpayer in good standing with the | ||||||
5 | Department who is eligible for
the exemption under this | ||||||
6 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
7 | shall authorize the holder, to the extent and
in the manner | ||||||
8 | specified in the rules adopted under this Act, to purchase
| ||||||
9 | tangible personal property from a retailer exempt from the | ||||||
10 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
11 | necessary books and records to
substantiate the use and | ||||||
12 | consumption of all such tangible personal property
outside of | ||||||
13 | the State of Illinois.
| ||||||
14 | (27) Beginning January 1, 2008, tangible personal property | ||||||
15 | used in the construction or maintenance of a community water | ||||||
16 | supply, as defined under Section 3.145 of the Environmental | ||||||
17 | Protection Act, that is operated by a not-for-profit | ||||||
18 | corporation that holds a valid water supply permit issued under | ||||||
19 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
20 | exempt from the provisions of Section 3-55.
| ||||||
21 | (28) Tangible personal property sold to 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 |
| |||||||
| |||||||
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 3-55. | ||||||
9 | (29) Beginning January 1, 2010, materials, parts, | ||||||
10 | equipment, components, and furnishings incorporated into or | ||||||
11 | upon an aircraft as part of the modification, refurbishment, | ||||||
12 | completion, replacement, repair, or maintenance of the | ||||||
13 | aircraft. This exemption includes consumable supplies used in | ||||||
14 | the modification, refurbishment, completion, replacement, | ||||||
15 | repair, and maintenance of aircraft, but excludes any | ||||||
16 | materials, parts, equipment, components, and consumable | ||||||
17 | supplies used in the modification, replacement, repair, and | ||||||
18 | maintenance of aircraft engines or power plants, whether such | ||||||
19 | engines or power plants are installed or uninstalled upon any | ||||||
20 | such aircraft. "Consumable supplies" include, but are not | ||||||
21 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
22 | lubricants, cleaning solution, latex gloves, and protective | ||||||
23 | films. This exemption applies only to the transfer of | ||||||
24 | qualifying tangible personal property incident to the | ||||||
25 | modification, refurbishment, completion, replacement, repair, | ||||||
26 | or maintenance of an aircraft by persons who (i) hold an Air |
| |||||||
| |||||||
1 | Agency Certificate and are empowered to operate an approved | ||||||
2 | repair station by the Federal Aviation Administration, (ii) | ||||||
3 | have a Class IV Rating, and (iii) conduct operations in | ||||||
4 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
5 | The exemption does not include aircraft operated by a | ||||||
6 | commercial air carrier providing scheduled passenger air | ||||||
7 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
8 | of the Federal Aviation Regulations. The changes made to this | ||||||
9 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
10 | law. | ||||||
11 | (30) Personal property purchased by a veterans | ||||||
12 | organization. To be eligible for the exemption under this | ||||||
13 | paragraph, the veterans organization must have an active | ||||||
14 | identification number issued by
the Department. For the | ||||||
15 | purposes of this paragraph (30), the term "veterans | ||||||
16 | organization" means an association or other entity organized | ||||||
17 | for the benefit of veterans that has been recognized or | ||||||
18 | chartered by the United States Congress and includes, but is | ||||||
19 | not limited to, the American Legion, the Legion of Honor, the | ||||||
20 | Patriot Guard, the Missing in America Project, the Veterans of | ||||||
21 | Foreign Wars, and the Vietnam Veterans of America. This | ||||||
22 | paragraph is exempt from the provisions of Section 3-55. | ||||||
23 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
24 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
25 | 7-16-14; 99-180, eff. 7-29-15.)
|
| |||||||
| |||||||
1 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
2 | changing Section 2-5 as follows:
| ||||||
3 | (35 ILCS 120/2-5)
| ||||||
4 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
5 | sale of
the following tangible personal property are exempt | ||||||
6 | from the tax imposed
by this Act:
| ||||||
7 | (1) Farm chemicals.
| ||||||
8 | (2) Farm machinery and equipment, both new and used, | ||||||
9 | including that
manufactured on special order, certified by the | ||||||
10 | purchaser to be used
primarily for production agriculture or | ||||||
11 | State or federal agricultural
programs, including individual | ||||||
12 | replacement parts for the machinery and
equipment, including | ||||||
13 | machinery and equipment purchased for lease,
and including | ||||||
14 | implements of husbandry defined in Section 1-130 of
the | ||||||
15 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
16 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
17 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
18 | but
excluding other motor vehicles required to be registered | ||||||
19 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
20 | hoop houses used for propagating, growing, or
overwintering | ||||||
21 | plants shall be considered farm machinery and equipment under
| ||||||
22 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
23 | shall include units sold
separately from a motor vehicle | ||||||
24 | required to be licensed and units sold mounted
on a motor | ||||||
25 | vehicle required to be licensed, if the selling price of the |
| |||||||
| |||||||
1 | tender
is separately stated.
| ||||||
2 | Farm machinery and equipment shall include precision | ||||||
3 | farming equipment
that is
installed or purchased to be | ||||||
4 | installed on farm machinery and equipment
including, but not | ||||||
5 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
6 | or spreaders.
Precision farming equipment includes, but is not | ||||||
7 | limited to,
soil testing sensors, computers, monitors, | ||||||
8 | software, global positioning
and mapping systems, and other | ||||||
9 | such equipment.
| ||||||
10 | Farm machinery and equipment also includes computers, | ||||||
11 | sensors, software, and
related equipment used primarily in the
| ||||||
12 | computer-assisted operation of production agriculture | ||||||
13 | facilities, equipment,
and activities such as, but
not limited | ||||||
14 | to,
the collection, monitoring, and correlation of
animal and | ||||||
15 | crop data for the purpose of
formulating animal diets and | ||||||
16 | agricultural chemicals. This item (2) is exempt
from the | ||||||
17 | provisions of
Section 2-70.
| ||||||
18 | (3) Until July 1, 2003, distillation machinery and | ||||||
19 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
20 | retailer, certified by the user to be used
only for the | ||||||
21 | production of ethyl alcohol that will be used for consumption
| ||||||
22 | as motor fuel or as a component of motor fuel for the personal | ||||||
23 | use of the
user, and not subject to sale or resale.
| ||||||
24 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
25 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
26 | equipment, including
repair and
replacement parts, both new and |
| |||||||
| |||||||
1 | used, and including that manufactured on
special order or | ||||||
2 | purchased for lease, certified by the purchaser to be used
| ||||||
3 | primarily for graphic arts production.
Equipment includes | ||||||
4 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
5 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
6 | immediate
change upon a
graphic arts product.
| ||||||
7 | (5) A motor vehicle that is used for automobile renting, as | ||||||
8 | defined in the Automobile Renting Occupation and Use Tax Act. | ||||||
9 | This paragraph is exempt from
the provisions of Section 2-70.
| ||||||
10 | (6) Personal property sold by a teacher-sponsored student | ||||||
11 | organization
affiliated with an elementary or secondary school | ||||||
12 | located in Illinois.
| ||||||
13 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
14 | selling price of
a passenger car the
sale of which is subject | ||||||
15 | to the Replacement Vehicle Tax.
| ||||||
16 | (8) Personal property sold to an Illinois county fair | ||||||
17 | association for
use in conducting, operating, or promoting the | ||||||
18 | county fair.
| ||||||
19 | (9) Personal property sold to 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 | ||||||
24 | support of arts or cultural programming, activities, or | ||||||
25 | services. These
organizations include, but are not limited to, | ||||||
26 | music and dramatic arts
organizations such as symphony |
| |||||||
| |||||||
1 | orchestras and theatrical groups, arts and
cultural service | ||||||
2 | organizations, local arts councils, visual arts organizations,
| ||||||
3 | and media arts organizations.
On and after the effective date | ||||||
4 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
5 | an entity otherwise eligible for this exemption shall not
make | ||||||
6 | tax-free purchases unless it has an active identification | ||||||
7 | number issued by
the Department.
| ||||||
8 | (10) Personal property sold by a corporation, society, | ||||||
9 | association,
foundation, institution, or organization, other | ||||||
10 | than a limited liability
company, that is organized and | ||||||
11 | operated as a not-for-profit service enterprise
for the benefit | ||||||
12 | of persons 65 years of age or older if the personal property
| ||||||
13 | was not purchased by the enterprise for the purpose of resale | ||||||
14 | by the
enterprise.
| ||||||
15 | (11) Personal property sold to a governmental body, to a | ||||||
16 | corporation,
society, association, foundation, or institution | ||||||
17 | organized and operated
exclusively for charitable, religious, | ||||||
18 | or educational purposes, or to a
not-for-profit corporation, | ||||||
19 | society, association, foundation, institution,
or organization | ||||||
20 | that has no compensated officers or employees and that is
| ||||||
21 | organized and operated primarily for the recreation of persons | ||||||
22 | 55 years of
age or older. A limited liability company may | ||||||
23 | qualify for the exemption under
this paragraph only if the | ||||||
24 | limited liability company is organized and operated
| ||||||
25 | exclusively for educational purposes. On and after July 1, | ||||||
26 | 1987, however, no
entity otherwise eligible for this exemption |
| |||||||
| |||||||
1 | shall make tax-free purchases
unless it has an active | ||||||
2 | identification number issued by the Department.
| ||||||
3 | (12) Tangible personal property sold to
interstate | ||||||
4 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
5 | commerce or to lessors under leases of
one year or longer | ||||||
6 | executed or in effect at the time of purchase by
interstate | ||||||
7 | carriers for hire for use as rolling stock moving in interstate
| ||||||
8 | commerce and equipment operated by a telecommunications | ||||||
9 | provider, licensed as a
common carrier by the Federal | ||||||
10 | Communications Commission, which is permanently
installed in | ||||||
11 | or affixed to aircraft moving in interstate commerce.
| ||||||
12 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
13 | motor vehicles of the second division
with a gross vehicle | ||||||
14 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
15 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
16 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
17 | through June 30, 2005, the use in this State of motor vehicles | ||||||
18 | of the second division: (i) with a gross vehicle weight rating | ||||||
19 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
20 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
21 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
22 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
23 | applies to repair and replacement parts added
after the
initial | ||||||
24 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
25 | in a
manner that
would qualify for the rolling stock exemption | ||||||
26 | otherwise provided for in this
Act. For purposes of this |
| |||||||
| |||||||
1 | paragraph, "used for commercial purposes" means the | ||||||
2 | transportation of persons or property in furtherance of any | ||||||
3 | commercial or industrial enterprise whether for-hire or not.
| ||||||
4 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
5 | tangible personal property that is utilized by interstate | ||||||
6 | carriers for
hire for use as rolling stock moving in interstate | ||||||
7 | commerce
and equipment operated by a telecommunications | ||||||
8 | provider, licensed as a
common carrier by the Federal | ||||||
9 | Communications Commission, which is
permanently installed in | ||||||
10 | or affixed to aircraft moving in interstate commerce.
| ||||||
11 | (14) Machinery and equipment that will be used by the | ||||||
12 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
13 | process of manufacturing or
assembling tangible personal | ||||||
14 | property for wholesale or retail sale or
lease, whether the | ||||||
15 | sale or lease is made directly by the manufacturer or by
some | ||||||
16 | other person, whether the materials used in the process are | ||||||
17 | owned by
the manufacturer or some other person, or whether the | ||||||
18 | sale or lease is made
apart from or as an incident to the | ||||||
19 | seller's engaging in the service
occupation of producing | ||||||
20 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
21 | items of no commercial value on special order for a particular
| ||||||
22 | purchaser. The exemption provided by this paragraph (14) does | ||||||
23 | not include machinery and equipment used in (i) the generation | ||||||
24 | of electricity for wholesale or retail sale; (ii) the | ||||||
25 | generation or treatment of natural or artificial gas for | ||||||
26 | wholesale or retail sale that is delivered to customers through |
| |||||||
| |||||||
1 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
2 | wholesale or retail sale that is delivered to customers through | ||||||
3 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
4 | are declaratory of existing law as to the meaning and scope of | ||||||
5 | this exemption.
| ||||||
6 | (15) Proceeds of mandatory service charges separately | ||||||
7 | stated on
customers' bills for purchase and consumption of food | ||||||
8 | and beverages, to the
extent that the proceeds of the service | ||||||
9 | charge are in fact turned over as
tips or as a substitute for | ||||||
10 | tips to the employees who participate directly
in preparing, | ||||||
11 | serving, hosting or cleaning up the food or beverage function
| ||||||
12 | with respect to which the service charge is imposed.
| ||||||
13 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
14 | is prohibited by federal law from charging tax to the | ||||||
15 | purchaser.
| ||||||
16 | (17) Tangible personal property sold to a common carrier by | ||||||
17 | rail or
motor that
receives the physical possession of the | ||||||
18 | property in Illinois and that
transports the property, or | ||||||
19 | shares with another common carrier in the
transportation of the | ||||||
20 | property, out of Illinois on a standard uniform bill
of lading | ||||||
21 | showing the seller of the property as the shipper or consignor | ||||||
22 | of
the property to a destination outside Illinois, for use | ||||||
23 | outside Illinois.
| ||||||
24 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
25 | coinage
issued by the State of Illinois, the government of the | ||||||
26 | United States of
America, or the government of any foreign |
| |||||||
| |||||||
1 | country, and bullion.
| ||||||
2 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
3 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
4 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
5 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
6 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
7 | individual replacement part for oil field exploration,
| ||||||
8 | drilling, and production equipment, and (vi) machinery and | ||||||
9 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
10 | required to be registered under the Illinois
Vehicle Code.
| ||||||
11 | (20) Photoprocessing machinery and equipment, including | ||||||
12 | repair and
replacement parts, both new and used, including that | ||||||
13 | manufactured on
special order, certified by the purchaser to be | ||||||
14 | used primarily for
photoprocessing, and including | ||||||
15 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
16 | (21) Coal and aggregate exploration, mining, off-highway | ||||||
17 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
18 | including
replacement parts and equipment, and including
| ||||||
19 | equipment purchased for lease, but excluding motor vehicles | ||||||
20 | required to be
registered under the Illinois Vehicle Code. The | ||||||
21 | changes made to this Section by Public Act 97-767 apply on and | ||||||
22 | after July 1, 2003, but no claim for credit or refund is | ||||||
23 | allowed on or after August 16, 2013 (the effective date of | ||||||
24 | Public Act 98-456)
for such taxes paid during the period | ||||||
25 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
26 | effective date of Public Act 98-456).
|
| |||||||
| |||||||
1 | (22) Until June 30, 2013, fuel and petroleum products sold | ||||||
2 | to or used by an air carrier,
certified by the carrier to be | ||||||
3 | used for consumption, shipment, or storage
in the conduct of | ||||||
4 | its business as an air common carrier, for a flight
destined | ||||||
5 | for or returning from a location or locations
outside the | ||||||
6 | United States without regard to previous or subsequent domestic
| ||||||
7 | stopovers.
| ||||||
8 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
9 | or used by an air carrier, certified by the carrier to be used | ||||||
10 | for consumption, shipment, or storage in the conduct of its | ||||||
11 | business as an air common carrier, for a flight that (i) is | ||||||
12 | engaged in foreign trade or is engaged in trade between the | ||||||
13 | United States and any of its possessions and (ii) transports at | ||||||
14 | least one individual or package for hire from the city of | ||||||
15 | origination to the city of final destination on the same | ||||||
16 | aircraft, without regard to a change in the flight number of | ||||||
17 | that aircraft. | ||||||
18 | (23) A transaction in which the purchase order is received | ||||||
19 | by a florist
who is located outside Illinois, but who has a | ||||||
20 | florist located in Illinois
deliver the property to the | ||||||
21 | purchaser or the purchaser's donee in Illinois.
| ||||||
22 | (24) Fuel consumed or used in the operation of ships, | ||||||
23 | barges, or vessels
that are used primarily in or for the | ||||||
24 | transportation of property or the
conveyance of persons for | ||||||
25 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
26 | by the seller to the purchaser's barge, ship, or vessel
while |
| |||||||
| |||||||
1 | it is afloat upon that bordering river.
| ||||||
2 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
3 | motor vehicle sold in this State to a nonresident even though | ||||||
4 | the
motor vehicle is delivered to the nonresident in this | ||||||
5 | State, if the motor
vehicle is not to be titled in this State, | ||||||
6 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
7 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
8 | the nonresident purchaser has vehicle registration
plates to | ||||||
9 | transfer to the motor vehicle upon returning to his or her home
| ||||||
10 | state. The issuance of the drive-away permit or having
the
| ||||||
11 | out-of-state registration plates to be transferred is prima | ||||||
12 | facie evidence
that the motor vehicle will not be titled in | ||||||
13 | this State.
| ||||||
14 | (25-5) The exemption under item (25) does not apply if the | ||||||
15 | state in which the motor vehicle will be titled does not allow | ||||||
16 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
17 | in that state to an Illinois resident but titled in Illinois. | ||||||
18 | The tax collected under this Act on the sale of a motor vehicle | ||||||
19 | in this State to a resident of another state that does not | ||||||
20 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
21 | to the state's rate of tax on taxable property in the state in | ||||||
22 | which the purchaser is a resident, except that the tax shall | ||||||
23 | not exceed the tax that would otherwise be imposed under this | ||||||
24 | Act. At the time of the sale, the purchaser shall execute a | ||||||
25 | statement, signed under penalty of perjury, of his or her | ||||||
26 | intent to title the vehicle in the state in which the purchaser |
| |||||||
| |||||||
1 | is a resident within 30 days after the sale and of the fact of | ||||||
2 | the payment to the State of Illinois of tax in an amount | ||||||
3 | equivalent to the state's rate of tax on taxable property in | ||||||
4 | his or her state of residence and shall submit the statement to | ||||||
5 | the appropriate tax collection agency in his or her state of | ||||||
6 | residence. In addition, the retailer must retain a signed copy | ||||||
7 | of the statement in his or her records. Nothing in this item | ||||||
8 | shall be construed to require the removal of the vehicle from | ||||||
9 | this state following the filing of an intent to title the | ||||||
10 | vehicle in the purchaser's state of residence if the purchaser | ||||||
11 | titles the vehicle in his or her state of residence within 30 | ||||||
12 | days after the date of sale. The tax collected under this Act | ||||||
13 | in accordance with this item (25-5) shall be proportionately | ||||||
14 | distributed as if the tax were collected at the 6.25% general | ||||||
15 | rate imposed under this Act.
| ||||||
16 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
17 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
18 | the Illinois Aeronautics Act, if all of the following | ||||||
19 | conditions are met: | ||||||
20 | (1) the aircraft leaves this State within 15 days after | ||||||
21 | the later of either the issuance of the final billing for | ||||||
22 | the sale of the aircraft, or the authorized approval for | ||||||
23 | return to service, completion of the maintenance record | ||||||
24 | entry, and completion of the test flight and ground test | ||||||
25 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
26 | (2) the aircraft is not based or registered in this |
| |||||||
| |||||||
1 | State after the sale of the aircraft; and | ||||||
2 | (3) the seller retains in his or her books and records | ||||||
3 | and provides to the Department a signed and dated | ||||||
4 | certification from the purchaser, on a form prescribed by | ||||||
5 | the Department, certifying that the requirements of this | ||||||
6 | item (25-7) are met. The certificate must also include the | ||||||
7 | name and address of the purchaser, the address of the | ||||||
8 | location where the aircraft is to be titled or registered, | ||||||
9 | the address of the primary physical location of the | ||||||
10 | aircraft, and other information that the Department may | ||||||
11 | reasonably require. | ||||||
12 | For purposes of this item (25-7): | ||||||
13 | "Based in this State" means hangared, stored, or otherwise | ||||||
14 | used, excluding post-sale customizations as defined in this | ||||||
15 | Section, for 10 or more days in each 12-month period | ||||||
16 | immediately following the date of the sale of the aircraft. | ||||||
17 | "Registered in this State" means an aircraft registered | ||||||
18 | with the Department of Transportation, Aeronautics Division, | ||||||
19 | or titled or registered with the Federal Aviation | ||||||
20 | Administration to an address located in this State. | ||||||
21 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
22 | Section 2-70.
| ||||||
23 | (26) Semen used for artificial insemination of livestock | ||||||
24 | for direct
agricultural production.
| ||||||
25 | (27) Horses, or interests in horses, registered with and | ||||||
26 | meeting the
requirements of any of the
Arabian Horse Club |
| |||||||
| |||||||
1 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
2 | Horse Association, United States
Trotting Association, or | ||||||
3 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
4 | racing for prizes. This item (27) is exempt from the provisions | ||||||
5 | of Section 2-70, and the exemption provided for under this item | ||||||
6 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
7 | claim for credit or refund is allowed on or after January 1, | ||||||
8 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
9 | paid during the period beginning May 30, 2000 and ending on | ||||||
10 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
11 | (28) Computers and communications equipment utilized for | ||||||
12 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
13 | analysis, or treatment of hospital patients sold to a lessor | ||||||
14 | who leases the
equipment, under a lease of one year or longer | ||||||
15 | executed or in effect at the
time of the purchase, to a
| ||||||
16 | hospital
that has been issued an active tax exemption | ||||||
17 | identification number by the
Department under Section 1g of | ||||||
18 | this Act.
| ||||||
19 | (29) Personal property sold to a lessor who leases the
| ||||||
20 | property, under a
lease of one year or longer executed or in | ||||||
21 | effect at the time of the purchase,
to a governmental body
that | ||||||
22 | has been issued an active tax exemption identification number | ||||||
23 | by the
Department under Section 1g of this Act.
| ||||||
24 | (30) Beginning with taxable years ending on or after | ||||||
25 | December
31, 1995
and
ending with taxable years ending on or | ||||||
26 | before December 31, 2004,
personal property that is
donated for |
| |||||||
| |||||||
1 | disaster relief to be used in a State or federally declared
| ||||||
2 | disaster area in Illinois or bordering Illinois by a | ||||||
3 | manufacturer or retailer
that is registered in this State to a | ||||||
4 | corporation, society, association,
foundation, or institution | ||||||
5 | that has been issued a sales tax exemption
identification | ||||||
6 | number by the Department that assists victims of the disaster
| ||||||
7 | who reside within the declared disaster area.
| ||||||
8 | (31) 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 used in the | ||||||
11 | performance of infrastructure repairs in this
State, including | ||||||
12 | but not limited to municipal roads and streets, access roads,
| ||||||
13 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
14 | line extensions,
water distribution and purification | ||||||
15 | facilities, storm water drainage and
retention facilities, and | ||||||
16 | sewage treatment facilities, resulting from a State
or | ||||||
17 | federally declared disaster in Illinois or bordering Illinois | ||||||
18 | when such
repairs are initiated on facilities located in the | ||||||
19 | declared disaster area
within 6 months after the disaster.
| ||||||
20 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
21 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
22 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
23 | provisions
of
Section 2-70.
| ||||||
24 | (33) A motor vehicle, as that term is defined in Section | ||||||
25 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
26 | corporation, limited liability
company, society, association, |
| |||||||
| |||||||
1 | foundation, or institution that is determined by
the Department | ||||||
2 | to be organized and operated exclusively for educational
| ||||||
3 | purposes. For purposes of this exemption, "a corporation, | ||||||
4 | limited liability
company, society, association, foundation, | ||||||
5 | or institution organized and
operated
exclusively for | ||||||
6 | educational purposes" means all tax-supported public schools,
| ||||||
7 | private schools that offer systematic instruction in useful | ||||||
8 | branches of
learning by methods common to public schools and | ||||||
9 | that compare favorably in
their scope and intensity with the | ||||||
10 | course of study presented in tax-supported
schools, and | ||||||
11 | vocational or technical schools or institutes organized and
| ||||||
12 | operated exclusively to provide a course of study of not less | ||||||
13 | than 6 weeks
duration and designed to prepare individuals to | ||||||
14 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
15 | industrial, business, or commercial
occupation.
| ||||||
16 | (34) Beginning January 1, 2000, personal property, | ||||||
17 | including food, purchased
through fundraising events for the | ||||||
18 | benefit of a public or private elementary or
secondary school, | ||||||
19 | a group of those schools, or one or more school districts if
| ||||||
20 | the events are sponsored by an entity recognized by the school | ||||||
21 | district that
consists primarily of volunteers and includes | ||||||
22 | parents and teachers of the
school children. This paragraph | ||||||
23 | does not apply to fundraising events (i) for
the benefit of | ||||||
24 | private home instruction or (ii) for which the fundraising
| ||||||
25 | entity purchases the personal property sold at the events from | ||||||
26 | another
individual or entity that sold the property for the |
| |||||||
| |||||||
1 | purpose of resale by the
fundraising entity and that profits | ||||||
2 | from the sale to the fundraising entity.
This paragraph is | ||||||
3 | exempt from the provisions of Section 2-70.
| ||||||
4 | (35) Beginning January 1, 2000 and through December 31, | ||||||
5 | 2001, new or used
automatic vending machines that prepare and | ||||||
6 | serve hot food and beverages,
including coffee, soup, and other | ||||||
7 | items, and replacement parts for these
machines. Beginning | ||||||
8 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
9 | for machines used in
commercial, coin-operated amusement and | ||||||
10 | vending business if a use or occupation
tax is paid on the | ||||||
11 | gross receipts derived from the use of the commercial,
| ||||||
12 | coin-operated amusement and vending machines. This paragraph | ||||||
13 | is exempt from
the provisions of Section 2-70.
| ||||||
14 | (35-5) Beginning August 23, 2001 and through June 30, 2016, | ||||||
15 | food for human consumption that is to be consumed off
the | ||||||
16 | premises where it is sold (other than alcoholic beverages, soft | ||||||
17 | drinks,
and food that has been prepared for immediate | ||||||
18 | consumption) and prescription
and nonprescription medicines, | ||||||
19 | drugs, medical appliances, and insulin, urine
testing | ||||||
20 | materials, syringes, and needles used by diabetics, for human | ||||||
21 | use, when
purchased for use by a person receiving medical | ||||||
22 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
23 | resides in a licensed long-term care facility,
as defined in | ||||||
24 | the Nursing Home Care Act, or a licensed facility as defined in | ||||||
25 | the ID/DD Community Care Act, the MC/DD Act, or the Specialized | ||||||
26 | Mental Health Rehabilitation Act of 2013.
|
| |||||||
| |||||||
1 | (36) Beginning August 2, 2001, computers and | ||||||
2 | communications equipment
utilized for any hospital purpose and | ||||||
3 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
4 | hospital patients sold to a lessor who leases the
equipment, | ||||||
5 | under a lease of one year or longer executed or in effect at | ||||||
6 | the
time of the purchase, to a hospital that has been issued an | ||||||
7 | active tax
exemption identification number by the Department | ||||||
8 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
9 | provisions of Section 2-70.
| ||||||
10 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
11 | lessor who
leases the property, under a lease of one year or | ||||||
12 | longer executed or in effect
at the time of the purchase, to a | ||||||
13 | governmental body that has been issued an
active tax exemption | ||||||
14 | identification number by the Department under Section 1g
of | ||||||
15 | this Act. This paragraph is exempt from the provisions of | ||||||
16 | Section 2-70.
| ||||||
17 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
18 | 2016, tangible personal property purchased
from an Illinois | ||||||
19 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
20 | activities in Illinois who will, upon receipt of the property | ||||||
21 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
22 | the purpose of subsequently
transporting it outside this State | ||||||
23 | for use or consumption thereafter solely
outside this State or | ||||||
24 | (ii) for the purpose of being processed, fabricated, or
| ||||||
25 | manufactured into, attached to, or incorporated into other | ||||||
26 | tangible personal
property to be transported outside this State |
| |||||||
| |||||||
1 | and thereafter used or consumed
solely outside this State. The | ||||||
2 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
3 | accordance with the Illinois Administrative Procedure Act, | ||||||
4 | issue a
permit to any taxpayer in good standing with the | ||||||
5 | Department who is eligible for
the exemption under this | ||||||
6 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
7 | shall authorize the holder, to the extent and
in the manner | ||||||
8 | specified in the rules adopted under this Act, to purchase
| ||||||
9 | tangible personal property from a retailer exempt from the | ||||||
10 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
11 | necessary books and records to
substantiate the use and | ||||||
12 | consumption of all such tangible personal property
outside of | ||||||
13 | the State of Illinois.
| ||||||
14 | (39) Beginning January 1, 2008, tangible personal property | ||||||
15 | used in the construction or maintenance of a community water | ||||||
16 | supply, as defined under Section 3.145 of the Environmental | ||||||
17 | Protection Act, that is operated by a not-for-profit | ||||||
18 | corporation that holds a valid water supply permit issued under | ||||||
19 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
20 | exempt from the provisions of Section 2-70.
| ||||||
21 | (40) Beginning January 1, 2010, materials, parts, | ||||||
22 | equipment, components, and furnishings incorporated into or | ||||||
23 | upon an aircraft as part of the modification, refurbishment, | ||||||
24 | completion, replacement, repair, or maintenance of the | ||||||
25 | aircraft. This exemption includes consumable supplies used in | ||||||
26 | the modification, refurbishment, completion, replacement, |
| |||||||
| |||||||
1 | repair, and maintenance of aircraft, but excludes any | ||||||
2 | materials, parts, equipment, components, and consumable | ||||||
3 | supplies used in the modification, replacement, repair, and | ||||||
4 | maintenance of aircraft engines or power plants, whether such | ||||||
5 | engines or power plants are installed or uninstalled upon any | ||||||
6 | such aircraft. "Consumable supplies" include, but are not | ||||||
7 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
8 | lubricants, cleaning solution, latex gloves, and protective | ||||||
9 | films. This exemption applies only to the sale of qualifying | ||||||
10 | tangible personal property to persons who modify, refurbish, | ||||||
11 | complete, replace, or maintain an aircraft and who (i) hold an | ||||||
12 | Air Agency Certificate and are empowered to operate an approved | ||||||
13 | repair station by the Federal Aviation Administration, (ii) | ||||||
14 | have a Class IV Rating, and (iii) conduct operations in | ||||||
15 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
16 | The exemption does not include aircraft operated by a | ||||||
17 | commercial air carrier providing scheduled passenger air | ||||||
18 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
19 | of the Federal Aviation Regulations. The changes made to this | ||||||
20 | paragraph (40) by Public Act 98-534 are declarative of existing | ||||||
21 | law. | ||||||
22 | (41) Tangible personal property sold to a | ||||||
23 | public-facilities corporation, as described in Section | ||||||
24 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
25 | constructing or furnishing a municipal convention hall, but | ||||||
26 | only if the legal title to the municipal convention hall is |
| |||||||
| |||||||
1 | transferred to the municipality without any further | ||||||
2 | consideration by or on behalf of the municipality at the time | ||||||
3 | of the completion of the municipal convention hall or upon the | ||||||
4 | retirement or redemption of any bonds or other debt instruments | ||||||
5 | issued by the public-facilities corporation in connection with | ||||||
6 | the development of the municipal convention hall. This | ||||||
7 | exemption includes existing public-facilities corporations as | ||||||
8 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
9 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
10 | (42) Personal property purchased by a veterans | ||||||
11 | organization. To be eligible for the exemption under this | ||||||
12 | paragraph, the veterans organization must have an active | ||||||
13 | identification number issued by
the Department. For the | ||||||
14 | purposes of this paragraph (42), the term "veterans | ||||||
15 | organization" means an association or other entity organized | ||||||
16 | for the benefit of veterans that has been recognized or | ||||||
17 | chartered by the United States Congress and includes, but is | ||||||
18 | not limited to, the American Legion, the Legion of Honor, the | ||||||
19 | Patriot Guard, the Missing in America Project, the Veterans of | ||||||
20 | Foreign Wars, and the Vietnam Veterans of America. This | ||||||
21 | paragraph is exempt from the provisions of Section 2-70. | ||||||
22 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
23 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
24 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
25 | 7-29-15.)
|
| |||||||
| |||||||
1 | Section 25. The Property Tax Code is amended by changing | ||||||
2 | Section 15-65 as follows:
| ||||||
3 | (35 ILCS 200/15-65)
| ||||||
4 | Sec. 15-65. Charitable purposes. All property of the | ||||||
5 | following is exempt
when actually and exclusively used for | ||||||
6 | charitable or beneficent purposes, and
not leased or otherwise | ||||||
7 | used with a view to profit:
| ||||||
8 | (a) Institutions of public charity.
| ||||||
9 | (b) Beneficent and charitable organizations | ||||||
10 | incorporated in any state of
the United States, including | ||||||
11 | organizations whose owner, and no other person,
uses the | ||||||
12 | property exclusively for the distribution, sale, or resale | ||||||
13 | of donated
goods and related activities and uses all the | ||||||
14 | income from those activities to
support the charitable, | ||||||
15 | religious or beneficent activities of the owner,
whether or | ||||||
16 | not such activities occur on the property.
| ||||||
17 | (c) Old people's homes, facilities for persons with a | ||||||
18 | developmental
disability, and not-for-profit organizations | ||||||
19 | providing services or facilities
related to the goals of | ||||||
20 | educational, social and physical development, if, upon
| ||||||
21 | making application for the exemption, the applicant | ||||||
22 | provides affirmative
evidence that the home or facility or | ||||||
23 | organization is an exempt organization
under paragraph (3) | ||||||
24 | of Section 501(c) of the Internal Revenue Code or its
| ||||||
25 | successor, and either: (i) the bylaws of the home or |
| |||||||
| |||||||
1 | facility or not-for-profit
organization provide for a | ||||||
2 | waiver or reduction, based on an individual's
ability to | ||||||
3 | pay, of any entrance fee, assignment of assets, or fee for | ||||||
4 | services,
or (ii) the home or facility is qualified, built | ||||||
5 | or financed under Section 202
of the National Housing Act | ||||||
6 | of 1959, as amended.
| ||||||
7 | An applicant that has been granted an exemption under | ||||||
8 | this subsection on
the basis that its bylaws provide for a | ||||||
9 | waiver or reduction, based on an
individual's ability to | ||||||
10 | pay, of any entrance fee, assignment of assets, or fee
for | ||||||
11 | services may be periodically reviewed by the Department to | ||||||
12 | determine if the
waiver or reduction was a past policy or | ||||||
13 | is a current policy. The Department
may revoke the | ||||||
14 | exemption if it finds that the policy for waiver or | ||||||
15 | reduction is
no longer current.
| ||||||
16 | If a not-for-profit organization leases property that | ||||||
17 | is otherwise exempt
under this subsection to an | ||||||
18 | organization that conducts an activity on the
leased | ||||||
19 | premises that would entitle the lessee to an exemption from | ||||||
20 | real estate
taxes if the lessee were the owner of the | ||||||
21 | property, then the leased property
is exempt.
| ||||||
22 | (d) Not-for-profit health maintenance organizations | ||||||
23 | certified by the
Director of the Illinois Department of | ||||||
24 | Insurance under the Health Maintenance
Organization Act, | ||||||
25 | including any health maintenance organization that
| ||||||
26 | provides services to members at prepaid rates approved by |
| |||||||
| |||||||
1 | the Illinois
Department of Insurance if the membership of | ||||||
2 | the organization is sufficiently
large or of indefinite | ||||||
3 | classes so that the community is benefited by its
| ||||||
4 | operation. No exemption shall apply to any hospital or | ||||||
5 | health maintenance
organization which has been adjudicated | ||||||
6 | by a court of competent jurisdiction to
have denied | ||||||
7 | admission to any person because of race, color, creed, sex | ||||||
8 | or
national origin.
| ||||||
9 | (e) All free public libraries.
| ||||||
10 | (f) Historical societies.
| ||||||
11 | (g) Veterans organizations. For the purposes of this | ||||||
12 | subsection (g), the term "veterans organization" means an | ||||||
13 | association or other entity organized for the benefit of | ||||||
14 | veterans that has been recognized or chartered by the | ||||||
15 | United States Congress and includes, but is not limited to, | ||||||
16 | the American Legion, the Legion of Honor, the Patriot | ||||||
17 | Guard, the Missing in America Project, the Veterans of | ||||||
18 | Foreign Wars, and the Vietnam Veterans of America. | ||||||
19 | Property otherwise qualifying for an exemption under this | ||||||
20 | Section shall not
lose its exemption because the legal title is | ||||||
21 | held (i) by an entity that is
organized solely to hold that | ||||||
22 | title and that qualifies under paragraph (2) of
Section 501(c) | ||||||
23 | of the Internal Revenue Code or its successor, whether or not
| ||||||
24 | that entity receives rent from the charitable organization for | ||||||
25 | the repair and
maintenance of the property, (ii) by an entity | ||||||
26 | that is organized as
a
partnership or limited liability |
| |||||||
| |||||||
1 | company, in which the charitable organization, or an affiliate | ||||||
2 | or
subsidiary of the charitable organization, is a general | ||||||
3 | partner of the partnership or managing member of the limited | ||||||
4 | liability company, for the
purposes of owning and operating a | ||||||
5 | residential rental property that has
received an allocation of | ||||||
6 | Low Income Housing Tax Credits for 100%
of the dwelling units | ||||||
7 | under Section 42 of the Internal Revenue
Code of 1986, as | ||||||
8 | amended, or (iii) for any assessment year including and | ||||||
9 | subsequent to
January 1, 1996 for which an application for | ||||||
10 | exemption has been filed and a
decision on which has not become | ||||||
11 | final and nonappealable, by a limited
liability company | ||||||
12 | organized under the Limited Liability Company Act provided
that | ||||||
13 | (A) the limited liability
company's sole member or
members, as | ||||||
14 | that term is used in Section 1-5 of the Limited Liability | ||||||
15 | Company
Act, are the institutions of public charity that | ||||||
16 | actually and exclusively use
the property for charitable and | ||||||
17 | beneficent purposes; (B) the limited liability company is a | ||||||
18 | disregarded entity for federal and Illinois income tax purposes | ||||||
19 | and, as a result, the limited liability company is deemed | ||||||
20 | exempt from income tax liability by virtue of the Internal | ||||||
21 | Revenue Code Section 501(c)(3) status of its sole member or | ||||||
22 | members; and (C) the limited
liability company does not lease | ||||||
23 | the property or otherwise use it with a view
to profit.
| ||||||
24 | (Source: P.A. 96-763, eff. 8-25-09.)".
|