Bill Amendment: IL SB0514 | 2015-2016 | 99th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: TAXATION-VARIOUS
Status: 2016-12-29 - Sent to the Governor [SB0514 Detail]
Download: Illinois-2015-SB0514-Senate_Amendment_001.html
Bill Title: TAXATION-VARIOUS
Status: 2016-12-29 - Sent to the Governor [SB0514 Detail]
Download: Illinois-2015-SB0514-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 514
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2 | AMENDMENT NO. ______. Amend Senate Bill 514 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Corporate Accountability for Tax | ||||||
5 | Expenditures Act is amended by changing Section 10 as follows:
| ||||||
6 | (20 ILCS 715/10)
| ||||||
7 | Sec. 10. Unified Economic Development Budget.
| ||||||
8 | (a) For each State fiscal year ending on or after June 30, | ||||||
9 | 2005, the
Department of Revenue shall
submit an annual Unified | ||||||
10 | Economic Development Budget to the General Assembly.
The
| ||||||
11 | Unified Economic Development Budget shall be due within 6 3 | ||||||
12 | months after the end
of the fiscal
year, and shall present all | ||||||
13 | types of development assistance granted during the
prior fiscal | ||||||
14 | year,
including:
| ||||||
15 | (1) The aggregate amount of uncollected or diverted | ||||||
16 | State tax revenues
resulting
from each type of development |
| |||||||
| |||||||
1 | assistance provided in the tax statutes, as
reported to the
| ||||||
2 | Department of Revenue on tax returns filed during the | ||||||
3 | fiscal year.
| ||||||
4 | (2) All State development assistance.
| ||||||
5 | (b) All data contained in the Unified Economic Development | ||||||
6 | Budget presented
to the
General Assembly shall be fully subject | ||||||
7 | to the Freedom of Information Act.
| ||||||
8 | (c) The Department of Revenue shall submit a report of the | ||||||
9 | amounts in
subdivision (a)(1)
of this Section to the | ||||||
10 | Department, which may append such report to the Unified
| ||||||
11 | Economic
Development Budget rather than separately reporting | ||||||
12 | such amounts.
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13 | (Source: P.A. 93-552, eff. 8-20-03.)
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14 | Section 10. The Use Tax Act is amended by changing Section | ||||||
15 | 3-5 as follows:
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16 | (35 ILCS 105/3-5)
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17 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
18 | personal property
is exempt from the tax imposed by this Act:
| ||||||
19 | (1) Personal property purchased from a corporation, | ||||||
20 | society, association,
foundation, institution, or | ||||||
21 | organization, other than a limited liability
company, that is | ||||||
22 | organized and operated as a not-for-profit service enterprise
| ||||||
23 | for the benefit of persons 65 years of age or older if the | ||||||
24 | personal property
was not purchased by the enterprise for the |
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| |||||||
1 | purpose of resale by the
enterprise.
| ||||||
2 | (2) Personal property purchased by a not-for-profit | ||||||
3 | Illinois county
fair association for use in conducting, | ||||||
4 | operating, or promoting the
county fair.
| ||||||
5 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
6 | cultural organization that establishes, by proof required by | ||||||
7 | the
Department by
rule, that it has received an exemption under | ||||||
8 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
9 | organized and operated primarily for the
presentation
or | ||||||
10 | support of arts or cultural programming, activities, or | ||||||
11 | services. These
organizations include, but are not limited to, | ||||||
12 | music and dramatic arts
organizations such as symphony | ||||||
13 | orchestras and theatrical groups, arts and
cultural service | ||||||
14 | organizations, local arts councils, visual arts organizations,
| ||||||
15 | and media arts organizations.
On and after the effective date | ||||||
16 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
17 | an entity otherwise eligible for this exemption shall not
make | ||||||
18 | tax-free purchases unless it has an active identification | ||||||
19 | number issued by
the Department.
| ||||||
20 | (4) Personal property purchased by a governmental body, by | ||||||
21 | a
corporation, society, association, foundation, or | ||||||
22 | institution organized and
operated exclusively for charitable, | ||||||
23 | religious, or educational purposes, or
by a not-for-profit | ||||||
24 | corporation, society, association, foundation,
institution, or | ||||||
25 | organization that has no compensated officers or employees
and | ||||||
26 | that is organized and operated primarily for the recreation of |
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| |||||||
1 | persons
55 years of age or older. A limited liability company | ||||||
2 | may qualify for the
exemption under this paragraph only if the | ||||||
3 | limited liability company is
organized and operated | ||||||
4 | exclusively for educational purposes. On and after July
1, | ||||||
5 | 1987, however, no entity otherwise eligible for this exemption | ||||||
6 | shall make
tax-free purchases unless it has an active exemption | ||||||
7 | identification number
issued by the Department.
| ||||||
8 | (5) Until July 1, 2003, a passenger car that is a | ||||||
9 | replacement vehicle to
the extent that the
purchase price of | ||||||
10 | the car is subject to the Replacement Vehicle Tax.
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11 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
12 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
13 | equipment, including
repair and replacement
parts, both new and | ||||||
14 | used, and including that manufactured on special order,
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15 | certified by the purchaser to be used primarily for graphic | ||||||
16 | arts production,
and including machinery and equipment | ||||||
17 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
18 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
19 | acting as catalysts effect a direct and immediate change
upon a | ||||||
20 | graphic arts product.
| ||||||
21 | (7) Farm chemicals.
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22 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
23 | coinage issued by
the State of Illinois, the government of the | ||||||
24 | United States of America, or the
government of any foreign | ||||||
25 | country, and bullion.
| ||||||
26 | (9) Personal property purchased from a teacher-sponsored |
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1 | student
organization affiliated with an elementary or | ||||||
2 | secondary school located in
Illinois.
| ||||||
3 | (10) A motor vehicle that is used for automobile renting, | ||||||
4 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
5 | Act.
| ||||||
6 | (11) Farm machinery and equipment, both new and used,
| ||||||
7 | including that manufactured on special order, certified by the | ||||||
8 | purchaser
to be used primarily for production agriculture or | ||||||
9 | State or federal
agricultural programs, including individual | ||||||
10 | replacement parts for
the machinery and equipment, including | ||||||
11 | machinery and equipment
purchased
for lease,
and including | ||||||
12 | implements of husbandry defined in Section 1-130 of
the | ||||||
13 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
14 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
15 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
16 | but excluding other motor
vehicles required to be
registered | ||||||
17 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
18 | hoop houses used for propagating, growing, or
overwintering | ||||||
19 | plants shall be considered farm machinery and equipment under
| ||||||
20 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
21 | boxes shall include units sold
separately from a motor vehicle | ||||||
22 | required to be licensed and units sold mounted
on a motor | ||||||
23 | vehicle required to be licensed if the selling price of the | ||||||
24 | tender
is separately stated.
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25 | Farm machinery and equipment shall include precision | ||||||
26 | farming equipment
that is
installed or purchased to be |
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1 | installed on farm machinery and equipment
including, but not | ||||||
2 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
3 | or spreaders.
Precision farming equipment includes, but is not | ||||||
4 | limited to, soil testing
sensors, computers, monitors, | ||||||
5 | software, global positioning
and mapping systems, and other | ||||||
6 | such equipment.
| ||||||
7 | Farm machinery and equipment also includes computers, | ||||||
8 | sensors, software, and
related equipment used primarily in the
| ||||||
9 | computer-assisted operation of production agriculture | ||||||
10 | facilities, equipment,
and
activities such as, but not limited | ||||||
11 | to,
the collection, monitoring, and correlation of
animal and | ||||||
12 | crop data for the purpose of
formulating animal diets and | ||||||
13 | agricultural chemicals. This item (11) is exempt
from the | ||||||
14 | provisions of
Section 3-90.
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15 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
16 | to or used by an air common
carrier, certified by the carrier | ||||||
17 | to be used for consumption, shipment, or
storage in the conduct | ||||||
18 | of its business as an air common carrier, for a
flight destined | ||||||
19 | for or returning from a location or locations
outside the | ||||||
20 | United States without regard to previous or subsequent domestic
| ||||||
21 | stopovers.
| ||||||
22 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
23 | or used by an air carrier, certified by the carrier to be used | ||||||
24 | for consumption, shipment, or storage in the conduct of its | ||||||
25 | business as an air common carrier, for a flight that (i) is | ||||||
26 | engaged in foreign trade or is engaged in trade between the |
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1 | United States and any of its possessions and (ii) transports at | ||||||
2 | least one individual or package for hire from the city of | ||||||
3 | origination to the city of final destination on the same | ||||||
4 | aircraft, without regard to a change in the flight number of | ||||||
5 | that aircraft. | ||||||
6 | (13) Proceeds of mandatory service charges separately
| ||||||
7 | stated on customers' bills for the purchase and consumption of | ||||||
8 | food and
beverages purchased at retail from a retailer, to the | ||||||
9 | extent that the proceeds
of the service charge are in fact | ||||||
10 | turned over as tips or as a substitute
for tips to the | ||||||
11 | employees who participate directly in preparing, serving,
| ||||||
12 | hosting or cleaning up the food or beverage function with | ||||||
13 | respect to which
the service charge is imposed.
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14 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
15 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
16 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
17 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
18 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
19 | individual replacement part for oil
field exploration, | ||||||
20 | drilling, and production equipment, and (vi) machinery and
| ||||||
21 | equipment purchased
for lease; but excluding motor vehicles | ||||||
22 | required to be registered under the
Illinois Vehicle Code.
| ||||||
23 | (15) Photoprocessing machinery and equipment, including | ||||||
24 | repair and
replacement parts, both new and used, including that
| ||||||
25 | manufactured on special order, certified by the purchaser to be | ||||||
26 | used
primarily for photoprocessing, and including
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1 | photoprocessing machinery and equipment purchased for lease.
| ||||||
2 | (16) Coal and aggregate exploration, mining, off-highway | ||||||
3 | hauling,
processing, maintenance, and reclamation equipment,
| ||||||
4 | including replacement parts and equipment, and
including | ||||||
5 | equipment purchased for lease, but excluding motor
vehicles | ||||||
6 | required to be registered under the Illinois Vehicle Code. The | ||||||
7 | changes made to this Section by Public Act 97-767 apply on and | ||||||
8 | after July 1, 2003, but no claim for credit or refund is | ||||||
9 | allowed on or after August 16, 2013 (the effective date of | ||||||
10 | Public Act 98-456)
for such taxes paid during the period | ||||||
11 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
12 | effective date of Public Act 98-456).
| ||||||
13 | (17) Until July 1, 2003, distillation machinery and | ||||||
14 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
15 | retailer, certified by the user to be used
only for the | ||||||
16 | production of ethyl alcohol that will be used for consumption
| ||||||
17 | as motor fuel or as a component of motor fuel for the personal | ||||||
18 | use of the
user, and not subject to sale or resale.
| ||||||
19 | (18) Manufacturing and assembling machinery and equipment | ||||||
20 | used
primarily in the process of manufacturing or assembling | ||||||
21 | tangible
personal property for wholesale or retail sale or | ||||||
22 | lease, whether that sale
or lease is made directly by the | ||||||
23 | manufacturer or by some other person,
whether the materials | ||||||
24 | used in the process are
owned by the manufacturer or some other | ||||||
25 | person, or whether that sale or
lease is made apart from or as | ||||||
26 | an incident to the seller's engaging in
the service occupation |
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| |||||||
1 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
2 | other similar items of no commercial value on
special order for | ||||||
3 | a particular purchaser. The exemption provided by this | ||||||
4 | paragraph (18) does not include machinery and equipment used in | ||||||
5 | (i) the generation of electricity for wholesale or retail sale; | ||||||
6 | (ii) the generation or treatment of natural or artificial gas | ||||||
7 | for wholesale or retail sale that is delivered to customers | ||||||
8 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
9 | water for wholesale or retail sale that is delivered to | ||||||
10 | customers through pipes, pipelines, or mains. The provisions of | ||||||
11 | Public Act 98-583 are declaratory of existing law as to the | ||||||
12 | meaning and scope of this exemption.
| ||||||
13 | (19) Personal property delivered to a purchaser or | ||||||
14 | purchaser's donee
inside Illinois when the purchase order for | ||||||
15 | that personal property was
received by a florist located | ||||||
16 | outside Illinois who has a florist located
inside Illinois | ||||||
17 | deliver the personal property.
| ||||||
18 | (20) Semen used for artificial insemination of livestock | ||||||
19 | for direct
agricultural production.
| ||||||
20 | (21) Horses, or interests in horses, registered with and | ||||||
21 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
22 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
23 | Horse Association, United States
Trotting Association, or | ||||||
24 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
25 | racing for prizes. This item (21) is exempt from the provisions | ||||||
26 | of Section 3-90, and the exemption provided for under this item |
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1 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
2 | claim for credit or refund is allowed on or after January 1, | ||||||
3 | 2008
for such taxes paid during the period beginning May 30, | ||||||
4 | 2000 and ending on January 1, 2008.
| ||||||
5 | (22) Computers and communications equipment utilized for | ||||||
6 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
7 | analysis, or treatment of hospital patients purchased by a | ||||||
8 | lessor who leases
the
equipment, under a lease of one year or | ||||||
9 | longer executed or in effect at the
time the lessor would | ||||||
10 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
11 | hospital
that has been issued an active tax exemption | ||||||
12 | identification number by
the
Department under Section 1g of the | ||||||
13 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
14 | manner that does not qualify for
this exemption or is used in | ||||||
15 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
16 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
17 | case may
be, based on the fair market value of the property at | ||||||
18 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
19 | or attempt to collect an
amount (however
designated) that | ||||||
20 | purports to reimburse that lessor for the tax imposed by this
| ||||||
21 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
22 | has not been
paid by the lessor. If a lessor improperly | ||||||
23 | collects any such amount from the
lessee, the lessee shall have | ||||||
24 | a legal right to claim a refund of that amount
from the lessor. | ||||||
25 | If, however, that amount is not refunded to the lessee for
any | ||||||
26 | reason, the lessor is liable to pay that amount to the |
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| |||||||
1 | Department.
| ||||||
2 | (23) Personal property purchased by a lessor who leases the
| ||||||
3 | property, under
a
lease of
one year or longer executed or in | ||||||
4 | effect at the time
the lessor would otherwise be subject to the | ||||||
5 | tax imposed by this Act,
to a governmental body
that has been | ||||||
6 | issued an active sales tax exemption identification number by | ||||||
7 | the
Department under Section 1g of the Retailers' Occupation | ||||||
8 | Tax Act.
If the
property is leased in a manner that does not | ||||||
9 | qualify for
this exemption
or used in any other non-exempt | ||||||
10 | manner, the lessor shall be liable for the
tax imposed under | ||||||
11 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
12 | on the fair market value of the property at the time the
| ||||||
13 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
14 | to collect an
amount (however
designated) that purports to | ||||||
15 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
16 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
17 | paid by the lessor. If a lessor improperly collects any such | ||||||
18 | amount from the
lessee, the lessee shall have a legal right to | ||||||
19 | claim a refund of that amount
from the lessor. If, however, | ||||||
20 | that amount is not refunded to the lessee for
any reason, the | ||||||
21 | lessor is liable to pay that amount to the Department.
| ||||||
22 | (24) Beginning with taxable years ending on or after | ||||||
23 | December
31, 1995
and
ending with taxable years ending on or | ||||||
24 | before December 31, 2004,
personal property that is
donated for | ||||||
25 | disaster relief to be used in a State or federally declared
| ||||||
26 | disaster area in Illinois or bordering Illinois by a |
| |||||||
| |||||||
1 | manufacturer or retailer
that is registered in this State to a | ||||||
2 | corporation, society, association,
foundation, or institution | ||||||
3 | that has been issued a sales tax exemption
identification | ||||||
4 | number by the Department that assists victims of the disaster
| ||||||
5 | who reside within the declared disaster area.
| ||||||
6 | (25) Beginning with taxable years ending on or after | ||||||
7 | December
31, 1995 and
ending with taxable years ending on or | ||||||
8 | before December 31, 2004, personal
property that is used in the | ||||||
9 | performance of infrastructure repairs in this
State, including | ||||||
10 | but not limited to municipal roads and streets, access roads,
| ||||||
11 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
12 | line extensions,
water distribution and purification | ||||||
13 | facilities, storm water drainage and
retention facilities, and | ||||||
14 | sewage treatment facilities, resulting from a State
or | ||||||
15 | federally declared disaster in Illinois or bordering Illinois | ||||||
16 | when such
repairs are initiated on facilities located in the | ||||||
17 | declared disaster area
within 6 months after the disaster.
| ||||||
18 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
19 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
20 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
21 | provisions
of
Section 3-90.
| ||||||
22 | (27) A motor vehicle, as that term is defined in Section | ||||||
23 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
24 | corporation, limited liability company,
society, association, | ||||||
25 | foundation, or institution that is determined by the
Department | ||||||
26 | to be organized and operated exclusively for educational |
| |||||||
| |||||||
1 | purposes.
For purposes of this exemption, "a corporation, | ||||||
2 | limited liability company,
society, association, foundation, | ||||||
3 | or institution organized and operated
exclusively for | ||||||
4 | educational purposes" means all tax-supported public schools,
| ||||||
5 | private schools that offer systematic instruction in useful | ||||||
6 | branches of
learning by methods common to public schools and | ||||||
7 | that compare favorably in
their scope and intensity with the | ||||||
8 | course of study presented in tax-supported
schools, and | ||||||
9 | vocational or technical schools or institutes organized and
| ||||||
10 | operated exclusively to provide a course of study of not less | ||||||
11 | than 6 weeks
duration and designed to prepare individuals to | ||||||
12 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
13 | industrial, business, or commercial
occupation.
| ||||||
14 | (28) Beginning January 1, 2000, personal property, | ||||||
15 | including
food,
purchased through fundraising
events for the | ||||||
16 | benefit of
a public or private elementary or
secondary school, | ||||||
17 | a group of those schools, or one or more school
districts if | ||||||
18 | the events are
sponsored by an entity recognized by the school | ||||||
19 | district that consists
primarily of volunteers and includes
| ||||||
20 | parents and teachers of the school children. This paragraph | ||||||
21 | does not apply
to fundraising
events (i) for the benefit of | ||||||
22 | private home instruction or (ii)
for which the fundraising | ||||||
23 | entity purchases the personal property sold at
the events from | ||||||
24 | another individual or entity that sold the property for the
| ||||||
25 | purpose of resale by the fundraising entity and that
profits | ||||||
26 | from the sale to the
fundraising entity. This paragraph is |
| |||||||
| |||||||
1 | exempt
from the provisions
of Section 3-90.
| ||||||
2 | (29) Beginning January 1, 2000 and through December 31, | ||||||
3 | 2001, new or
used automatic vending
machines that prepare and | ||||||
4 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
5 | items, and replacement parts for these machines.
Beginning | ||||||
6 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
7 | for machines used in
commercial, coin-operated amusement and | ||||||
8 | vending business if a use or occupation
tax is paid on the | ||||||
9 | gross receipts derived from the use of the commercial,
| ||||||
10 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
11 | is exempt from the provisions of Section 3-90.
| ||||||
12 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
13 | food for human consumption that is to be consumed off the | ||||||
14 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
15 | drinks, and food that
has been prepared for immediate | ||||||
16 | consumption) and prescription and
nonprescription medicines, | ||||||
17 | drugs, medical appliances, and insulin, urine
testing | ||||||
18 | materials, syringes, and needles used by diabetics, for human | ||||||
19 | use, when
purchased for use by a person receiving medical | ||||||
20 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
21 | resides in a licensed long-term care facility,
as defined in | ||||||
22 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
23 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
24 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
25 | (31) 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 | purchased by a lessor who leases
the equipment, under a lease | ||||||
4 | of one year or longer executed or in effect at the
time the | ||||||
5 | lessor would otherwise be subject to the tax imposed by this | ||||||
6 | Act, to a
hospital that has been issued an active tax exemption | ||||||
7 | identification number by
the Department under Section 1g of the | ||||||
8 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
9 | manner that does not qualify for this exemption or is
used in | ||||||
10 | any other nonexempt manner, the lessor shall be liable for the | ||||||
11 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
12 | case may be, based on
the fair market value of the property at | ||||||
13 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
14 | or attempt to collect an amount (however
designated) that | ||||||
15 | purports to reimburse that lessor for the tax imposed by this
| ||||||
16 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
17 | has not been
paid by the lessor. If a lessor improperly | ||||||
18 | collects any such amount from the
lessee, the lessee shall have | ||||||
19 | a legal right to claim a refund of that amount
from the lessor. | ||||||
20 | If, however, that amount is not refunded to the lessee for
any | ||||||
21 | reason, the lessor is liable to pay that amount to the | ||||||
22 | Department.
This paragraph is exempt from the provisions of | ||||||
23 | Section 3-90.
| ||||||
24 | (32) Beginning on
the effective date of this amendatory Act | ||||||
25 | of the 92nd General Assembly,
personal property purchased by a | ||||||
26 | lessor who leases the property,
under a lease of one year or |
| |||||||
| |||||||
1 | longer executed or in effect at the time the
lessor would | ||||||
2 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
3 | governmental body that has been issued an active sales tax | ||||||
4 | exemption
identification number by the Department under | ||||||
5 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
6 | property is leased in a manner that does not
qualify for this | ||||||
7 | exemption or used in any other nonexempt manner, the lessor
| ||||||
8 | shall be liable for the tax imposed under this Act or the | ||||||
9 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
10 | market value of the property at the time
the nonqualifying use | ||||||
11 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
12 | (however designated) that purports to reimburse that lessor for | ||||||
13 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
14 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
15 | lessor improperly collects any such
amount from the lessee, the | ||||||
16 | lessee shall have a legal right to claim a refund
of that | ||||||
17 | amount from the lessor. If, however, that amount is not | ||||||
18 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
19 | pay that amount to the
Department. This paragraph is exempt | ||||||
20 | from the provisions of Section 3-90.
| ||||||
21 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
22 | the use in this State of motor vehicles of
the second division | ||||||
23 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
24 | are subject to the commercial distribution fee imposed under | ||||||
25 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
26 | 1, 2004 and through June 30, 2005, the use in this State of |
| |||||||
| |||||||
1 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
2 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
3 | to the commercial distribution fee imposed under Section | ||||||
4 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
5 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
6 | this exemption applies to repair and
replacement parts added | ||||||
7 | after the initial purchase of such a motor vehicle if
that | ||||||
8 | motor
vehicle is used in a manner that would qualify for the | ||||||
9 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
10 | purposes of this paragraph, the term "used for commercial | ||||||
11 | purposes" means the transportation of persons or property in | ||||||
12 | furtherance of any commercial or industrial enterprise, | ||||||
13 | whether for-hire or not.
| ||||||
14 | (34) 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 3-90. | ||||||
21 | (35) 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 use of qualifying | ||||||
10 | tangible personal property by persons who modify, refurbish, | ||||||
11 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
12 | hold an Air Agency Certificate and are empowered to operate an | ||||||
13 | approved repair station by the Federal Aviation | ||||||
14 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
15 | operations in accordance with Part 145 of the Federal Aviation | ||||||
16 | Regulations. The exemption does not include aircraft operated | ||||||
17 | by a 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 (35) by Public Act 98-534 are declarative of existing | ||||||
21 | law. | ||||||
22 | (36) Tangible personal property purchased by 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 3-90. | ||||||
10 | (37) Personal property purchased by a purchaser who is | ||||||
11 | exempt from the tax imposed by this Act by operation of federal | ||||||
12 | law. This paragraph is exempt from the provisions of Section | ||||||
13 | 3-90. | ||||||
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; 98-574, eff. | ||||||
16 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
17 | 7-29-15.)
| ||||||
18 | Section 15. The Service Use Tax Act is amended by changing | ||||||
19 | Section 3-5 as follows:
| ||||||
20 | (35 ILCS 110/3-5)
| ||||||
21 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
22 | personal property
is exempt from the tax imposed by this Act:
| ||||||
23 | (1) Personal property purchased from a corporation, | ||||||
24 | society,
association, foundation, institution, or |
| |||||||
| |||||||
1 | organization, other than a limited
liability company, that is | ||||||
2 | organized and operated as a not-for-profit service
enterprise | ||||||
3 | for the benefit of persons 65 years of age or older if the | ||||||
4 | personal
property was not purchased by the enterprise for the | ||||||
5 | purpose of resale by the
enterprise.
| ||||||
6 | (2) Personal property purchased by a non-profit Illinois | ||||||
7 | county fair
association for use in conducting, operating, or | ||||||
8 | promoting the county fair.
| ||||||
9 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
10 | cultural
organization that establishes, by proof required by | ||||||
11 | the Department by rule,
that it has received an exemption under | ||||||
12 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
13 | organized and operated primarily for the
presentation
or | ||||||
14 | support of arts or cultural programming, activities, or | ||||||
15 | services. These
organizations include, but are not limited to, | ||||||
16 | music and dramatic arts
organizations such as symphony | ||||||
17 | orchestras and theatrical groups, arts and
cultural service | ||||||
18 | organizations, local arts councils, visual arts organizations,
| ||||||
19 | and media arts organizations.
On and after the effective date | ||||||
20 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
21 | an entity otherwise eligible for this exemption shall not
make | ||||||
22 | tax-free purchases unless it has an active identification | ||||||
23 | number issued by
the Department.
| ||||||
24 | (4) 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 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
3 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
4 | equipment, including
repair and
replacement parts, both new and | ||||||
5 | used, and including that manufactured on
special order or | ||||||
6 | purchased for lease, certified by the purchaser to be used
| ||||||
7 | primarily for graphic arts production.
Equipment includes | ||||||
8 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
9 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
10 | immediate
change upon a graphic arts product.
| ||||||
11 | (6) Personal property purchased from a teacher-sponsored | ||||||
12 | student
organization affiliated with an elementary or | ||||||
13 | secondary school located
in Illinois.
| ||||||
14 | (7) Farm machinery and equipment, both new and used, | ||||||
15 | including that
manufactured on special order, certified by the | ||||||
16 | purchaser to be used
primarily for production agriculture or | ||||||
17 | State or federal agricultural
programs, including individual | ||||||
18 | replacement parts for the machinery and
equipment, including | ||||||
19 | machinery and equipment purchased for lease,
and including | ||||||
20 | implements of husbandry defined in Section 1-130 of
the | ||||||
21 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
22 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
23 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
24 | but
excluding other motor vehicles required to be registered | ||||||
25 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
26 | hoop houses used for propagating, growing, or
overwintering |
| |||||||
| |||||||
1 | plants shall be considered farm machinery and equipment under
| ||||||
2 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
3 | shall include units sold
separately from a motor vehicle | ||||||
4 | required to be licensed and units sold mounted
on a motor | ||||||
5 | vehicle required to be licensed if the selling price of the | ||||||
6 | tender
is separately stated.
| ||||||
7 | Farm machinery and equipment shall include precision | ||||||
8 | farming equipment
that is
installed or purchased to be | ||||||
9 | installed on farm machinery and equipment
including, but not | ||||||
10 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
11 | or spreaders.
Precision farming equipment includes, but is not | ||||||
12 | limited to,
soil testing sensors, computers, monitors, | ||||||
13 | software, global positioning
and mapping systems, and other | ||||||
14 | such equipment.
| ||||||
15 | Farm machinery and equipment also includes computers, | ||||||
16 | sensors, software, and
related equipment used primarily in the
| ||||||
17 | computer-assisted operation of production agriculture | ||||||
18 | facilities, equipment,
and activities such as, but
not limited | ||||||
19 | to,
the collection, monitoring, and correlation of
animal and | ||||||
20 | crop data for the purpose of
formulating animal diets and | ||||||
21 | agricultural chemicals. This item (7) is exempt
from the | ||||||
22 | provisions of
Section 3-75.
| ||||||
23 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
24 | to or used by an air common
carrier, certified by the carrier | ||||||
25 | to be used for consumption, shipment, or
storage in the conduct | ||||||
26 | of its business as an air common carrier, for a
flight destined |
| |||||||
| |||||||
1 | for or returning from a location or locations
outside the | ||||||
2 | United States without regard to previous or subsequent domestic
| ||||||
3 | stopovers.
| ||||||
4 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
5 | or used by an air carrier, certified by the carrier to be used | ||||||
6 | for consumption, shipment, or storage in the conduct of its | ||||||
7 | business as an air common carrier, for a flight that (i) is | ||||||
8 | engaged in foreign trade or is engaged in trade between the | ||||||
9 | United States and any of its possessions and (ii) transports at | ||||||
10 | least one individual or package for hire from the city of | ||||||
11 | origination to the city of final destination on the same | ||||||
12 | aircraft, without regard to a change in the flight number of | ||||||
13 | that aircraft. | ||||||
14 | (9) Proceeds of mandatory service charges separately | ||||||
15 | stated on
customers' bills for the purchase and consumption of | ||||||
16 | food and beverages
acquired as an incident to the purchase of a | ||||||
17 | service from a serviceman, to
the extent that the proceeds of | ||||||
18 | the service charge are in fact
turned over as tips or as a | ||||||
19 | substitute for tips to the employees who
participate directly | ||||||
20 | in preparing, serving, hosting or cleaning up the
food or | ||||||
21 | beverage function with respect to which the service charge is | ||||||
22 | imposed.
| ||||||
23 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
24 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
25 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
26 | tubular goods, including casing and
drill strings, (iii) pumps |
| |||||||
| |||||||
1 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
2 | individual replacement part for oil field exploration,
| ||||||
3 | drilling, and production equipment, and (vi) machinery and | ||||||
4 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
5 | required to be registered under the Illinois
Vehicle Code.
| ||||||
6 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
7 | and
equipment, including repair and replacement parts, both new | ||||||
8 | and
used, including that manufactured on special order, | ||||||
9 | certified by the
purchaser to be used primarily for | ||||||
10 | photoprocessing, and including
photoprocessing machinery and | ||||||
11 | equipment purchased for lease.
| ||||||
12 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
13 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
14 | including
replacement parts and equipment, and including
| ||||||
15 | equipment purchased for lease, but excluding motor vehicles | ||||||
16 | required to be
registered under the Illinois Vehicle Code. The | ||||||
17 | changes made to this Section by Public Act 97-767 apply on and | ||||||
18 | after July 1, 2003, but no claim for credit or refund is | ||||||
19 | allowed on or after August 16, 2013 (the effective date of | ||||||
20 | Public Act 98-456)
for such taxes paid during the period | ||||||
21 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
22 | effective date of Public Act 98-456).
| ||||||
23 | (13) Semen used for artificial insemination of livestock | ||||||
24 | for direct
agricultural production.
| ||||||
25 | (14) 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 (14) is exempt from the provisions | ||||||
5 | of Section 3-75, and the exemption provided for under this item | ||||||
6 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
7 | claim for credit or refund is allowed on or after the effective | ||||||
8 | date of this amendatory Act of the 95th General Assembly for | ||||||
9 | such taxes paid during the period beginning May 30, 2000 and | ||||||
10 | ending on the effective date of this amendatory Act of the 95th | ||||||
11 | General Assembly.
| ||||||
12 | (15) Computers and communications equipment utilized for | ||||||
13 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
14 | analysis, or treatment of hospital patients purchased by a | ||||||
15 | lessor who leases
the
equipment, under a lease of one year or | ||||||
16 | longer executed or in effect at the
time
the lessor would | ||||||
17 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
18 | 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 non-exempt 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
non-qualifying 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.
| ||||||
8 | (16) Personal property purchased by a lessor who leases the
| ||||||
9 | property, under
a
lease of one year or longer executed or in | ||||||
10 | effect at the time
the lessor would otherwise be subject to the | ||||||
11 | tax imposed by this Act,
to a governmental body
that has been | ||||||
12 | issued an active tax exemption identification number by the
| ||||||
13 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
14 | Act.
If the
property is leased in a manner that does not | ||||||
15 | qualify for
this exemption
or is used in any other non-exempt | ||||||
16 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
17 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
18 | fair market value of the property at the time the
| ||||||
19 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
20 | to collect an
amount (however
designated) that purports to | ||||||
21 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
22 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
23 | the lessor. If a lessor improperly collects any such amount | ||||||
24 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
25 | refund of that amount
from the lessor. If, however, that amount | ||||||
26 | is not refunded to the lessee for
any reason, the lessor is |
| |||||||
| |||||||
1 | liable to pay that amount to the Department.
| ||||||
2 | (17) Beginning with taxable years ending on or after | ||||||
3 | December
31,
1995
and
ending with taxable years ending on or | ||||||
4 | before December 31, 2004,
personal property that is
donated for | ||||||
5 | disaster relief to be used in a State or federally declared
| ||||||
6 | disaster area in Illinois or bordering Illinois by a | ||||||
7 | manufacturer or retailer
that is registered in this State to a | ||||||
8 | corporation, society, association,
foundation, or institution | ||||||
9 | that has been issued a sales tax exemption
identification | ||||||
10 | number by the Department that assists victims of the disaster
| ||||||
11 | who reside within the declared disaster area.
| ||||||
12 | (18) Beginning with taxable years ending on or after | ||||||
13 | December
31, 1995 and
ending with taxable years ending on or | ||||||
14 | before December 31, 2004, personal
property that is used in the | ||||||
15 | performance of infrastructure repairs in this
State, including | ||||||
16 | but not limited to municipal roads and streets, access roads,
| ||||||
17 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
18 | line extensions,
water distribution and purification | ||||||
19 | facilities, storm water drainage and
retention facilities, and | ||||||
20 | sewage treatment facilities, resulting from a State
or | ||||||
21 | federally declared disaster in Illinois or bordering Illinois | ||||||
22 | when such
repairs are initiated on facilities located in the | ||||||
23 | declared disaster area
within 6 months after the disaster.
| ||||||
24 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
25 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
26 | used in
the Wildlife Code. This paragraph is exempt from the |
| |||||||
| |||||||
1 | provisions
of
Section 3-75.
| ||||||
2 | (20) A motor vehicle, as that term is defined in Section | ||||||
3 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
4 | corporation, limited liability
company, society, association, | ||||||
5 | foundation, or institution that is determined by
the Department | ||||||
6 | to be organized and operated exclusively for educational
| ||||||
7 | purposes. For purposes of this exemption, "a corporation, | ||||||
8 | limited liability
company, society, association, foundation, | ||||||
9 | or institution organized and
operated
exclusively for | ||||||
10 | educational purposes" means all tax-supported public schools,
| ||||||
11 | private schools that offer systematic instruction in useful | ||||||
12 | branches of
learning by methods common to public schools and | ||||||
13 | that compare favorably in
their scope and intensity with the | ||||||
14 | course of study presented in tax-supported
schools, and | ||||||
15 | vocational or technical schools or institutes organized and
| ||||||
16 | operated exclusively to provide a course of study of not less | ||||||
17 | than 6 weeks
duration and designed to prepare individuals to | ||||||
18 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
19 | industrial, business, or commercial
occupation.
| ||||||
20 | (21) Beginning January 1, 2000, personal property, | ||||||
21 | including
food,
purchased through fundraising
events for the | ||||||
22 | benefit of
a public or private elementary or
secondary school, | ||||||
23 | a group of those schools, or one or more school
districts if | ||||||
24 | the events are
sponsored by an entity recognized by the school | ||||||
25 | district that consists
primarily of volunteers and includes
| ||||||
26 | parents and teachers of the school children. This paragraph |
| |||||||
| |||||||
1 | does not apply
to fundraising
events (i) for the benefit of | ||||||
2 | private home instruction or (ii)
for which the fundraising | ||||||
3 | entity purchases the personal property sold at
the events from | ||||||
4 | another individual or entity that sold the property for the
| ||||||
5 | purpose of resale by the fundraising entity and that
profits | ||||||
6 | from the sale to the
fundraising entity. This paragraph is | ||||||
7 | exempt
from the provisions
of Section 3-75.
| ||||||
8 | (22) Beginning January 1, 2000
and through December 31, | ||||||
9 | 2001, new or used automatic vending
machines that prepare and | ||||||
10 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
11 | items, and replacement parts for these machines.
Beginning | ||||||
12 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
13 | for machines used in
commercial, coin-operated
amusement
and | ||||||
14 | vending business if a use or occupation tax is paid on the | ||||||
15 | gross receipts
derived from
the use of the commercial, | ||||||
16 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
17 | is exempt from the provisions of Section 3-75.
| ||||||
18 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
19 | food for human consumption that is to be consumed off the
| ||||||
20 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
21 | drinks, and food that
has been prepared for immediate | ||||||
22 | consumption) and prescription and
nonprescription medicines, | ||||||
23 | drugs, medical appliances, and insulin, urine
testing | ||||||
24 | materials, syringes, and needles used by diabetics, for human | ||||||
25 | use, when
purchased for use by a person receiving medical | ||||||
26 | assistance under Article V of
the Illinois Public Aid Code who |
| |||||||
| |||||||
1 | resides in a licensed long-term care facility,
as defined in | ||||||
2 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
3 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
4 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
5 | (24) Beginning on the effective date of this amendatory Act | ||||||
6 | of the 92nd
General Assembly, computers and communications | ||||||
7 | equipment
utilized for any hospital purpose and equipment used | ||||||
8 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
9 | purchased by a lessor who leases
the equipment, under a lease | ||||||
10 | of one year or longer executed or in effect at the
time the | ||||||
11 | lessor would otherwise be subject to the tax imposed by this | ||||||
12 | Act, to a
hospital that has been issued an active tax exemption | ||||||
13 | identification number by
the Department under Section 1g of the | ||||||
14 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
15 | manner that does not qualify for this exemption or is
used in | ||||||
16 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
17 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
18 | be, based on the
fair market value of the property at the time | ||||||
19 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
20 | attempt to collect an amount (however
designated) that purports | ||||||
21 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
22 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
23 | the lessor. If a lessor improperly collects any such amount | ||||||
24 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
25 | refund of that amount
from the lessor. If, however, that amount | ||||||
26 | is not refunded to the lessee for
any reason, the lessor is |
| |||||||
| |||||||
1 | liable to pay that amount to the Department.
This paragraph is | ||||||
2 | exempt from the provisions of Section 3-75.
| ||||||
3 | (25) Beginning
on the effective date of this amendatory Act | ||||||
4 | of the 92nd General Assembly,
personal property purchased by a | ||||||
5 | lessor
who leases the property, under a lease of one year or | ||||||
6 | longer executed or in
effect at the time the lessor would | ||||||
7 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
8 | governmental body that has been issued an active tax exemption
| ||||||
9 | identification number by the Department under Section 1g of the | ||||||
10 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
11 | manner that does not
qualify for this exemption or is used in | ||||||
12 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
13 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
14 | be, based on the fair market value of the property at the time
| ||||||
15 | the nonqualifying use occurs. No lessor shall collect or | ||||||
16 | attempt to collect
an amount (however designated) that purports | ||||||
17 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
18 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
19 | the lessor. If a lessor improperly collects any such amount
| ||||||
20 | from the lessee, the lessee shall have a legal right to claim a | ||||||
21 | refund of that
amount from the lessor. If, however, that amount | ||||||
22 | is not refunded to the lessee
for any reason, the lessor is | ||||||
23 | liable to pay that amount to the Department.
This paragraph is | ||||||
24 | exempt from the provisions of Section 3-75.
| ||||||
25 | (26) Beginning January 1, 2008, tangible personal property | ||||||
26 | used in the construction or maintenance of a community water |
| |||||||
| |||||||
1 | supply, as defined under Section 3.145 of the Environmental | ||||||
2 | Protection Act, that is operated by a not-for-profit | ||||||
3 | corporation that holds a valid water supply permit issued under | ||||||
4 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
5 | exempt from the provisions of Section 3-75.
| ||||||
6 | (27) Beginning January 1, 2010, materials, parts, | ||||||
7 | equipment, components, and furnishings incorporated into or | ||||||
8 | upon an aircraft as part of the modification, refurbishment, | ||||||
9 | completion, replacement, repair, or maintenance of the | ||||||
10 | aircraft. This exemption includes consumable supplies used in | ||||||
11 | the modification, refurbishment, completion, replacement, | ||||||
12 | repair, and maintenance of aircraft, but excludes any | ||||||
13 | materials, parts, equipment, components, and consumable | ||||||
14 | supplies used in the modification, replacement, repair, and | ||||||
15 | maintenance of aircraft engines or power plants, whether such | ||||||
16 | engines or power plants are installed or uninstalled upon any | ||||||
17 | such aircraft. "Consumable supplies" include, but are not | ||||||
18 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
19 | lubricants, cleaning solution, latex gloves, and protective | ||||||
20 | films. This exemption applies only to the use of qualifying | ||||||
21 | tangible personal property transferred incident to the | ||||||
22 | modification, refurbishment, completion, replacement, repair, | ||||||
23 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
24 | Agency Certificate and are empowered to operate an approved | ||||||
25 | repair station by the Federal Aviation Administration, (ii) | ||||||
26 | have a Class IV Rating, and (iii) conduct operations in |
| |||||||
| |||||||
1 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
2 | The exemption does not include aircraft operated by a | ||||||
3 | commercial air carrier providing scheduled passenger air | ||||||
4 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
5 | of the Federal Aviation Regulations. The changes made to this | ||||||
6 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
7 | law. | ||||||
8 | (28) Tangible personal property purchased by a | ||||||
9 | public-facilities corporation, as described in Section | ||||||
10 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
11 | constructing or furnishing a municipal convention hall, but | ||||||
12 | only if the legal title to the municipal convention hall is | ||||||
13 | transferred to the municipality without any further | ||||||
14 | consideration by or on behalf of the municipality at the time | ||||||
15 | of the completion of the municipal convention hall or upon the | ||||||
16 | retirement or redemption of any bonds or other debt instruments | ||||||
17 | issued by the public-facilities corporation in connection with | ||||||
18 | the development of the municipal convention hall. This | ||||||
19 | exemption includes existing public-facilities corporations as | ||||||
20 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
21 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
22 | (29) Personal property purchased by a purchaser who is | ||||||
23 | exempt from the tax imposed by this Act by operation of federal | ||||||
24 | law. This paragraph is exempt from the provisions of Section | ||||||
25 | 3-75. | ||||||
26 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; |
| |||||||
| |||||||
1 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
2 | 7-16-14; 99-180, eff. 7-29-15.)
| ||||||
3 | Section 20. The Service Occupation Tax Act is amended by | ||||||
4 | changing Section 3-5 as follows:
| ||||||
5 | (35 ILCS 115/3-5)
| ||||||
6 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
7 | property is
exempt from the tax imposed by this Act:
| ||||||
8 | (1) 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 | (2) Personal property purchased by a not-for-profit | ||||||
16 | Illinois county fair
association for use in conducting, | ||||||
17 | operating, or promoting the county fair.
| ||||||
18 | (3) Personal property purchased by any not-for-profit
arts | ||||||
19 | or cultural organization that establishes, by proof required by | ||||||
20 | the
Department by
rule, that it has received an exemption under | ||||||
21 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
22 | organized and operated primarily for the
presentation
or | ||||||
23 | support of arts or cultural programming, activities, or | ||||||
24 | services. These
organizations include, but are not limited to, |
| |||||||
| |||||||
1 | music and dramatic arts
organizations such as symphony | ||||||
2 | orchestras and theatrical groups, arts and
cultural service | ||||||
3 | organizations, local arts councils, visual arts organizations,
| ||||||
4 | and media arts organizations.
On and after the effective date | ||||||
5 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
6 | an entity otherwise eligible for this exemption shall not
make | ||||||
7 | tax-free purchases unless it has an active identification | ||||||
8 | number issued by
the Department.
| ||||||
9 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
10 | coinage
issued by the State of Illinois, the government of the | ||||||
11 | United States of
America, or the government of any foreign | ||||||
12 | country, and bullion.
| ||||||
13 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
14 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
15 | equipment, including
repair and
replacement parts, both new and | ||||||
16 | used, and including that manufactured on
special order or | ||||||
17 | purchased for lease, certified by the purchaser to be used
| ||||||
18 | primarily for graphic arts production.
Equipment includes | ||||||
19 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
20 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
21 | immediate change
upon a graphic arts product.
| ||||||
22 | (6) Personal property sold by a teacher-sponsored student | ||||||
23 | organization
affiliated with an elementary or secondary school | ||||||
24 | located in Illinois.
| ||||||
25 | (7) Farm machinery and equipment, both new and used, | ||||||
26 | including that
manufactured on special order, certified by the |
| |||||||
| |||||||
1 | purchaser to be used
primarily for production agriculture or | ||||||
2 | State or federal agricultural
programs, including individual | ||||||
3 | replacement parts for the machinery and
equipment, including | ||||||
4 | machinery and equipment purchased for lease,
and including | ||||||
5 | implements of husbandry defined in Section 1-130 of
the | ||||||
6 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
7 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
8 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
9 | but
excluding other motor vehicles required to be registered | ||||||
10 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
11 | hoop houses used for propagating, growing, or
overwintering | ||||||
12 | plants shall be considered farm machinery and equipment under
| ||||||
13 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
14 | shall include units sold
separately from a motor vehicle | ||||||
15 | required to be licensed and units sold mounted
on a motor | ||||||
16 | vehicle required to be licensed if the selling price of the | ||||||
17 | tender
is separately stated.
| ||||||
18 | Farm machinery and equipment shall include precision | ||||||
19 | farming equipment
that is
installed or purchased to be | ||||||
20 | installed on farm machinery and equipment
including, but not | ||||||
21 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
22 | or spreaders.
Precision farming equipment includes, but is not | ||||||
23 | limited to,
soil testing sensors, computers, monitors, | ||||||
24 | software, global positioning
and mapping systems, and other | ||||||
25 | such equipment.
| ||||||
26 | Farm machinery and equipment also includes computers, |
| |||||||
| |||||||
1 | sensors, software, and
related equipment used primarily in the
| ||||||
2 | computer-assisted operation of production agriculture | ||||||
3 | facilities, equipment,
and activities such as, but
not limited | ||||||
4 | to,
the collection, monitoring, and correlation of
animal and | ||||||
5 | crop data for the purpose of
formulating animal diets and | ||||||
6 | agricultural chemicals. This item (7) is exempt
from the | ||||||
7 | provisions of
Section 3-55.
| ||||||
8 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
9 | to or used by an air common
carrier, certified by the carrier | ||||||
10 | to be used for consumption, shipment,
or storage in the conduct | ||||||
11 | of its business as an air common carrier, for
a flight destined | ||||||
12 | for or returning from a location or locations
outside the | ||||||
13 | United States without regard to previous or subsequent domestic
| ||||||
14 | stopovers.
| ||||||
15 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
16 | or used by an air carrier, certified by the carrier to be used | ||||||
17 | for consumption, shipment, or storage in the conduct of its | ||||||
18 | business as an air common carrier, for a flight that (i) is | ||||||
19 | engaged in foreign trade or is engaged in trade between the | ||||||
20 | United States and any of its possessions and (ii) transports at | ||||||
21 | least one individual or package for hire from the city of | ||||||
22 | origination to the city of final destination on the same | ||||||
23 | aircraft, without regard to a change in the flight number of | ||||||
24 | that aircraft. | ||||||
25 | (9) Proceeds of mandatory service charges separately
| ||||||
26 | stated on customers' bills for the purchase and consumption of |
| |||||||
| |||||||
1 | food and
beverages, to the extent that the proceeds of the | ||||||
2 | service charge are in fact
turned over as tips or as a | ||||||
3 | substitute for tips to the employees who
participate directly | ||||||
4 | in preparing, serving, hosting or cleaning up the
food or | ||||||
5 | beverage function with respect to which the service charge is | ||||||
6 | imposed.
| ||||||
7 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
8 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
9 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
10 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
11 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
12 | individual replacement part for oil field exploration,
| ||||||
13 | drilling, and production equipment, and (vi) machinery and | ||||||
14 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
15 | required to be registered under the Illinois
Vehicle Code.
| ||||||
16 | (11) Photoprocessing machinery and equipment, including | ||||||
17 | repair and
replacement parts, both new and used, including that | ||||||
18 | manufactured on
special order, certified by the purchaser to be | ||||||
19 | used primarily for
photoprocessing, and including | ||||||
20 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
21 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
22 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
23 | including
replacement parts and equipment, and including
| ||||||
24 | equipment
purchased for lease, but excluding motor vehicles | ||||||
25 | required to be registered
under the Illinois Vehicle Code. The | ||||||
26 | changes made to this Section by Public Act 97-767 apply on and |
| |||||||
| |||||||
1 | after July 1, 2003, but no claim for credit or refund is | ||||||
2 | allowed on or after August 16, 2013 (the effective date of | ||||||
3 | Public Act 98-456)
for such taxes paid during the period | ||||||
4 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
5 | effective date of Public Act 98-456).
| ||||||
6 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
7 | food for human consumption that is to be consumed off the | ||||||
8 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
9 | drinks and food that
has been prepared for immediate | ||||||
10 | consumption) and prescription and
non-prescription medicines, | ||||||
11 | drugs, medical appliances, and insulin, urine
testing | ||||||
12 | materials, syringes, and needles used by diabetics, for human | ||||||
13 | use,
when purchased for use by a person receiving medical | ||||||
14 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
15 | resides in a licensed
long-term care facility, as defined in | ||||||
16 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
17 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
18 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
19 | (14) Semen used for artificial insemination of livestock | ||||||
20 | for direct
agricultural production.
| ||||||
21 | (15) Horses, or interests in horses, registered with and | ||||||
22 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
23 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
24 | Horse Association, United States
Trotting Association, or | ||||||
25 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
26 | racing for prizes. This item (15) is exempt from the provisions |
| |||||||
| |||||||
1 | of Section 3-55, and the exemption provided for under this item | ||||||
2 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
3 | claim for credit or refund is allowed on or after January 1, | ||||||
4 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
5 | paid during the period beginning May 30, 2000 and ending on | ||||||
6 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
7 | (16) Computers and communications equipment utilized for | ||||||
8 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
9 | analysis, or treatment of hospital patients sold to a lessor | ||||||
10 | who leases the
equipment, under a lease of one year or longer | ||||||
11 | executed or in effect at the
time of the purchase, to a
| ||||||
12 | hospital
that has been issued an active tax exemption | ||||||
13 | identification number by the
Department under Section 1g of the | ||||||
14 | Retailers' Occupation Tax Act.
| ||||||
15 | (17) Personal property sold to a lessor who leases the
| ||||||
16 | property, under a
lease of one year or longer executed or in | ||||||
17 | effect at the time of the purchase,
to a governmental body
that | ||||||
18 | has been issued an active tax exemption identification number | ||||||
19 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
20 | Tax Act.
| ||||||
21 | (18) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995
and
ending with taxable years ending on or | ||||||
23 | before December 31, 2004,
personal property that is
donated for | ||||||
24 | disaster relief to be used in a State or federally declared
| ||||||
25 | disaster area in Illinois or bordering Illinois by a | ||||||
26 | manufacturer or retailer
that is registered in this State to a |
| |||||||
| |||||||
1 | corporation, society, association,
foundation, or institution | ||||||
2 | that has been issued a sales tax exemption
identification | ||||||
3 | number by the Department that assists victims of the disaster
| ||||||
4 | who reside within the declared disaster area.
| ||||||
5 | (19) Beginning with taxable years ending on or after | ||||||
6 | December
31, 1995 and
ending with taxable years ending on or | ||||||
7 | before December 31, 2004, personal
property that is used in the | ||||||
8 | performance of infrastructure repairs in this
State, including | ||||||
9 | but not limited to municipal roads and streets, access roads,
| ||||||
10 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
11 | line extensions,
water distribution and purification | ||||||
12 | facilities, storm water drainage and
retention facilities, and | ||||||
13 | sewage treatment facilities, resulting from a State
or | ||||||
14 | federally declared disaster in Illinois or bordering Illinois | ||||||
15 | when such
repairs are initiated on facilities located in the | ||||||
16 | declared disaster area
within 6 months after the disaster.
| ||||||
17 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
18 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
19 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
20 | provisions
of
Section 3-55.
| ||||||
21 | (21) A motor vehicle, as that term is defined in Section | ||||||
22 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
23 | corporation, limited liability
company, society, association, | ||||||
24 | foundation, or institution that is determined by
the Department | ||||||
25 | to be organized and operated exclusively for educational
| ||||||
26 | purposes. For purposes of this exemption, "a corporation, |
| |||||||
| |||||||
1 | limited liability
company, society, association, foundation, | ||||||
2 | or institution organized and
operated
exclusively for | ||||||
3 | educational purposes" means all tax-supported public schools,
| ||||||
4 | private schools that offer systematic instruction in useful | ||||||
5 | branches of
learning by methods common to public schools and | ||||||
6 | that compare favorably in
their scope and intensity with the | ||||||
7 | course of study presented in tax-supported
schools, and | ||||||
8 | vocational or technical schools or institutes organized and
| ||||||
9 | operated exclusively to provide a course of study of not less | ||||||
10 | than 6 weeks
duration and designed to prepare individuals to | ||||||
11 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
12 | industrial, business, or commercial
occupation.
| ||||||
13 | (22) Beginning January 1, 2000, personal property, | ||||||
14 | including
food,
purchased through fundraising
events for the | ||||||
15 | benefit of
a public or private elementary or
secondary school, | ||||||
16 | a group of those schools, or one or more school
districts if | ||||||
17 | the events are
sponsored by an entity recognized by the school | ||||||
18 | district that consists
primarily of volunteers and includes
| ||||||
19 | parents and teachers of the school children. This paragraph | ||||||
20 | does not apply
to fundraising
events (i) for the benefit of | ||||||
21 | private home instruction or (ii)
for which the fundraising | ||||||
22 | entity purchases the personal property sold at
the events from | ||||||
23 | another individual or entity that sold the property for the
| ||||||
24 | purpose of resale by the fundraising entity and that
profits | ||||||
25 | from the sale to the
fundraising entity. This paragraph is | ||||||
26 | exempt
from the provisions
of Section 3-55.
|
| |||||||
| |||||||
1 | (23) Beginning January 1, 2000
and through December 31, | ||||||
2 | 2001, new or used automatic vending
machines that prepare and | ||||||
3 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
4 | items, and replacement parts for these machines.
Beginning | ||||||
5 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
6 | for
machines used in commercial, coin-operated amusement
and | ||||||
7 | vending business if a use or occupation tax is paid on the | ||||||
8 | gross receipts
derived from
the use of the commercial, | ||||||
9 | coin-operated amusement and vending machines.
This paragraph | ||||||
10 | is exempt from the provisions of Section 3-55.
| ||||||
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 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
16 | year or longer executed or in effect at the
time of the | ||||||
17 | purchase, to a hospital that has been issued an active tax
| ||||||
18 | exemption identification number by the Department under | ||||||
19 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
20 | is exempt from the provisions of
Section 3-55.
| ||||||
21 | (25) Beginning
on the effective date of this amendatory Act | ||||||
22 | of the 92nd General Assembly,
personal property sold to a | ||||||
23 | lessor who
leases the property, under a lease of one year or | ||||||
24 | longer executed or in effect
at the time of the purchase, to a | ||||||
25 | governmental body that has been issued an
active tax exemption | ||||||
26 | identification number by the Department under Section 1g
of the |
| |||||||
| |||||||
1 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
2 | the
provisions of Section 3-55.
| ||||||
3 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
4 | 2016, tangible personal property
purchased
from an Illinois | ||||||
5 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
6 | activities in Illinois who will, upon receipt of the property | ||||||
7 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
8 | the purpose of subsequently
transporting it outside this State | ||||||
9 | for use or consumption thereafter solely
outside this State or | ||||||
10 | (ii) for the purpose of being processed, fabricated, or
| ||||||
11 | manufactured into, attached to, or incorporated into other | ||||||
12 | tangible personal
property to be transported outside this State | ||||||
13 | and thereafter used or consumed
solely outside this State. The | ||||||
14 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
15 | accordance with the Illinois Administrative Procedure Act, | ||||||
16 | issue a
permit to any taxpayer in good standing with the | ||||||
17 | Department who is eligible for
the exemption under this | ||||||
18 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
19 | shall authorize the holder, to the extent and
in the manner | ||||||
20 | specified in the rules adopted under this Act, to purchase
| ||||||
21 | tangible personal property from a retailer exempt from the | ||||||
22 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
23 | necessary books and records to
substantiate the use and | ||||||
24 | consumption of all such tangible personal property
outside of | ||||||
25 | the State of Illinois.
| ||||||
26 | (27) Beginning January 1, 2008, tangible personal property |
| |||||||
| |||||||
1 | used in the construction or maintenance of a community water | ||||||
2 | supply, as defined under Section 3.145 of the Environmental | ||||||
3 | Protection Act, that is operated by a not-for-profit | ||||||
4 | corporation that holds a valid water supply permit issued under | ||||||
5 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
6 | exempt from the provisions of Section 3-55.
| ||||||
7 | (28) Tangible personal property sold to a | ||||||
8 | public-facilities corporation, as described in Section | ||||||
9 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
10 | constructing or furnishing a municipal convention hall, but | ||||||
11 | only if the legal title to the municipal convention hall is | ||||||
12 | transferred to the municipality without any further | ||||||
13 | consideration by or on behalf of the municipality at the time | ||||||
14 | of the completion of the municipal convention hall or upon the | ||||||
15 | retirement or redemption of any bonds or other debt instruments | ||||||
16 | issued by the public-facilities corporation in connection with | ||||||
17 | the development of the municipal convention hall. This | ||||||
18 | exemption includes existing public-facilities corporations as | ||||||
19 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
20 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
21 | (29) 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 transfer of | ||||||
10 | qualifying tangible personal property incident to the | ||||||
11 | modification, refurbishment, completion, replacement, repair, | ||||||
12 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
13 | Agency Certificate and are empowered to operate an approved | ||||||
14 | repair station by the Federal Aviation Administration, (ii) | ||||||
15 | have a Class IV Rating, and (iii) conduct operations in | ||||||
16 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
17 | The exemption does not include aircraft operated by a | ||||||
18 | commercial air carrier providing scheduled passenger air | ||||||
19 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
20 | of the Federal Aviation Regulations. The changes made to this | ||||||
21 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
22 | law. | ||||||
23 | (30) Personal property purchased by a purchaser who is | ||||||
24 | exempt from use tax by operation of federal law. This paragraph | ||||||
25 | is exempt from the provisions of Section 3-55. | ||||||
26 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; |
| |||||||
| |||||||
1 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
2 | 7-16-14; 99-180, eff. 7-29-15.)
| ||||||
3 | Section 25. The Retailers' Occupation Tax Act is amended by | ||||||
4 | changing Section 2-5 as follows:
| ||||||
5 | (35 ILCS 120/2-5)
| ||||||
6 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
7 | sale of
the following tangible personal property are exempt | ||||||
8 | from the tax imposed
by this Act:
| ||||||
9 | (1) Farm chemicals.
| ||||||
10 | (2) Farm machinery and equipment, both new and used, | ||||||
11 | including that
manufactured on special order, certified by the | ||||||
12 | purchaser to be used
primarily for production agriculture or | ||||||
13 | State or federal agricultural
programs, including individual | ||||||
14 | replacement parts for the machinery and
equipment, including | ||||||
15 | machinery and equipment purchased for lease,
and including | ||||||
16 | implements of husbandry defined in Section 1-130 of
the | ||||||
17 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
18 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
19 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
20 | but
excluding other motor vehicles required to be registered | ||||||
21 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
22 | hoop houses used for propagating, growing, or
overwintering | ||||||
23 | plants shall be considered farm machinery and equipment under
| ||||||
24 | this item (2).
Agricultural chemical tender tanks and dry boxes |
| |||||||
| |||||||
1 | shall include units sold
separately from a motor vehicle | ||||||
2 | required to be licensed and units sold mounted
on a motor | ||||||
3 | vehicle required to be licensed, if the selling price of the | ||||||
4 | tender
is separately stated.
| ||||||
5 | Farm machinery and equipment shall include precision | ||||||
6 | farming equipment
that is
installed or purchased to be | ||||||
7 | installed on farm machinery and equipment
including, but not | ||||||
8 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
9 | or spreaders.
Precision farming equipment includes, but is not | ||||||
10 | limited to,
soil testing sensors, computers, monitors, | ||||||
11 | software, global positioning
and mapping systems, and other | ||||||
12 | such equipment.
| ||||||
13 | Farm machinery and equipment also includes computers, | ||||||
14 | sensors, software, and
related equipment used primarily in the
| ||||||
15 | computer-assisted operation of production agriculture | ||||||
16 | facilities, equipment,
and activities such as, but
not limited | ||||||
17 | to,
the collection, monitoring, and correlation of
animal and | ||||||
18 | crop data for the purpose of
formulating animal diets and | ||||||
19 | agricultural chemicals. This item (2) is exempt
from the | ||||||
20 | provisions of
Section 2-70.
| ||||||
21 | (3) Until July 1, 2003, distillation machinery and | ||||||
22 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
23 | retailer, certified by the user to be used
only for the | ||||||
24 | production of ethyl alcohol that will be used for consumption
| ||||||
25 | as motor fuel or as a component of motor fuel for the personal | ||||||
26 | use of the
user, and not subject to sale or resale.
|
| |||||||
| |||||||
1 | (4) Until July 1, 2003 and beginning again 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 | (5) A motor vehicle that is used for automobile renting, as | ||||||
11 | defined in the Automobile Renting Occupation and Use Tax Act. | ||||||
12 | This paragraph is exempt from
the provisions of Section 2-70.
| ||||||
13 | (6) Personal property sold by a teacher-sponsored student | ||||||
14 | organization
affiliated with an elementary or secondary school | ||||||
15 | located in Illinois.
| ||||||
16 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
17 | selling price of
a passenger car the
sale of which is subject | ||||||
18 | to the Replacement Vehicle Tax.
| ||||||
19 | (8) Personal property sold to an Illinois county fair | ||||||
20 | association for
use in conducting, operating, or promoting the | ||||||
21 | county fair.
| ||||||
22 | (9) Personal property sold to a not-for-profit arts
or | ||||||
23 | cultural organization that establishes, by proof required by | ||||||
24 | the Department
by
rule, that it has received an exemption under | ||||||
25 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
26 | organized and operated primarily for the
presentation
or |
| |||||||
| |||||||
1 | support of arts or cultural programming, activities, or | ||||||
2 | services. These
organizations include, but are not limited to, | ||||||
3 | music and dramatic arts
organizations such as symphony | ||||||
4 | orchestras and theatrical groups, arts and
cultural service | ||||||
5 | organizations, local arts councils, visual arts organizations,
| ||||||
6 | and media arts organizations.
On and after the effective date | ||||||
7 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
8 | an entity otherwise eligible for this exemption shall not
make | ||||||
9 | tax-free purchases unless it has an active identification | ||||||
10 | number issued by
the Department.
| ||||||
11 | (10) Personal property sold by a corporation, society, | ||||||
12 | association,
foundation, institution, or organization, other | ||||||
13 | than a limited liability
company, that is organized and | ||||||
14 | operated as a not-for-profit service enterprise
for the benefit | ||||||
15 | of persons 65 years of age or older if the personal property
| ||||||
16 | was not purchased by the enterprise for the purpose of resale | ||||||
17 | by the
enterprise.
| ||||||
18 | (11) Personal property sold to a governmental body, to a | ||||||
19 | corporation,
society, association, foundation, or institution | ||||||
20 | organized and operated
exclusively for charitable, religious, | ||||||
21 | or educational purposes, or to a
not-for-profit corporation, | ||||||
22 | society, association, foundation, institution,
or organization | ||||||
23 | that has no compensated officers or employees and that is
| ||||||
24 | organized and operated primarily for the recreation of persons | ||||||
25 | 55 years of
age or older. A limited liability company may | ||||||
26 | qualify for the exemption under
this paragraph only if the |
| |||||||
| |||||||
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 | ||||||
5 | identification number issued by the Department.
| ||||||
6 | (12) Tangible personal property sold to
interstate | ||||||
7 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
8 | commerce or to lessors under leases of
one year or longer | ||||||
9 | executed or in effect at the time of purchase by
interstate | ||||||
10 | carriers for hire for use as rolling stock moving in interstate
| ||||||
11 | commerce and equipment operated by a telecommunications | ||||||
12 | provider, licensed as a
common carrier by the Federal | ||||||
13 | Communications Commission, which is permanently
installed in | ||||||
14 | or affixed to aircraft moving in interstate commerce.
| ||||||
15 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
16 | motor vehicles of the second division
with a gross vehicle | ||||||
17 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
18 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
19 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
20 | through June 30, 2005, the use in this State of motor vehicles | ||||||
21 | of the second division: (i) with a gross vehicle weight rating | ||||||
22 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
23 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
24 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
25 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
26 | applies to repair and replacement parts added
after the
initial |
| |||||||
| |||||||
1 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
2 | in a
manner that
would qualify for the rolling stock exemption | ||||||
3 | otherwise provided for in this
Act. For purposes of this | ||||||
4 | paragraph, "used for commercial purposes" means the | ||||||
5 | transportation of persons or property in furtherance of any | ||||||
6 | commercial or industrial enterprise whether for-hire or not.
| ||||||
7 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
8 | tangible personal property that is utilized by interstate | ||||||
9 | carriers for
hire for use as rolling stock moving in interstate | ||||||
10 | commerce
and equipment operated by a telecommunications | ||||||
11 | provider, licensed as a
common carrier by the Federal | ||||||
12 | Communications Commission, which is
permanently installed in | ||||||
13 | or affixed to aircraft moving in interstate commerce.
| ||||||
14 | (14) Machinery and equipment that will be used by the | ||||||
15 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
16 | process of manufacturing or
assembling tangible personal | ||||||
17 | property for wholesale or retail sale or
lease, whether the | ||||||
18 | sale or lease is made directly by the manufacturer or by
some | ||||||
19 | other person, whether the materials used in the process are | ||||||
20 | owned by
the manufacturer or some other person, or whether the | ||||||
21 | sale or lease is made
apart from or as an incident to the | ||||||
22 | seller's engaging in the service
occupation of producing | ||||||
23 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
24 | items of no commercial value on special order for a particular
| ||||||
25 | purchaser. The exemption provided by this paragraph (14) does | ||||||
26 | not include machinery and equipment used in (i) the generation |
| |||||||
| |||||||
1 | of electricity for wholesale or retail sale; (ii) the | ||||||
2 | generation or treatment of natural or artificial gas for | ||||||
3 | wholesale or retail sale that is delivered to customers through | ||||||
4 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
5 | wholesale or retail sale that is delivered to customers through | ||||||
6 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
7 | are declaratory of existing law as to the meaning and scope of | ||||||
8 | this exemption.
| ||||||
9 | (15) Proceeds of mandatory service charges separately | ||||||
10 | stated on
customers' bills for purchase and consumption of food | ||||||
11 | and beverages, to the
extent that the proceeds of the service | ||||||
12 | charge are in fact turned over as
tips or as a substitute for | ||||||
13 | tips to the employees who participate directly
in preparing, | ||||||
14 | serving, hosting or cleaning up the food or beverage function
| ||||||
15 | with respect to which the service charge is imposed.
| ||||||
16 | (16) Personal property Petroleum products sold to a | ||||||
17 | purchaser if the purchaser is exempt from use tax seller
is | ||||||
18 | prohibited by operation of federal law from charging tax to the | ||||||
19 | purchaser . This paragraph is exempt
from the provisions of
| ||||||
20 | Section 2-70.
| ||||||
21 | (17) Tangible personal property sold to a common carrier by | ||||||
22 | rail or
motor that
receives the physical possession of the | ||||||
23 | property in Illinois and that
transports the property, or | ||||||
24 | shares with another common carrier in the
transportation of the | ||||||
25 | property, out of Illinois on a standard uniform bill
of lading | ||||||
26 | showing the seller of the property as the shipper or consignor |
| |||||||
| |||||||
1 | of
the property to a destination outside Illinois, for use | ||||||
2 | outside Illinois.
| ||||||
3 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
4 | coinage
issued by the State of Illinois, the government of the | ||||||
5 | United States of
America, or the government of any foreign | ||||||
6 | country, and bullion.
| ||||||
7 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
8 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
9 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
10 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
11 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
12 | individual replacement part for oil field exploration,
| ||||||
13 | drilling, and production equipment, and (vi) machinery and | ||||||
14 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
15 | required to be registered under the Illinois
Vehicle Code.
| ||||||
16 | (20) Photoprocessing machinery and equipment, including | ||||||
17 | repair and
replacement parts, both new and used, including that | ||||||
18 | manufactured on
special order, certified by the purchaser to be | ||||||
19 | used primarily for
photoprocessing, and including | ||||||
20 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
21 | (21) Coal and aggregate exploration, mining, off-highway | ||||||
22 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
23 | including
replacement parts and equipment, and including
| ||||||
24 | equipment purchased for lease, but excluding motor vehicles | ||||||
25 | required to be
registered under the Illinois Vehicle Code. The | ||||||
26 | changes made to this Section by Public Act 97-767 apply on and |
| |||||||
| |||||||
1 | after July 1, 2003, but no claim for credit or refund is | ||||||
2 | allowed on or after August 16, 2013 (the effective date of | ||||||
3 | Public Act 98-456)
for such taxes paid during the period | ||||||
4 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
5 | effective date of Public Act 98-456).
| ||||||
6 | (22) Until June 30, 2013, fuel and petroleum products sold | ||||||
7 | to or used by an air carrier,
certified by the carrier to be | ||||||
8 | used for consumption, shipment, or storage
in the conduct of | ||||||
9 | its business as an air common carrier, for a flight
destined | ||||||
10 | for or returning from a location or locations
outside the | ||||||
11 | United States without regard to previous or subsequent domestic
| ||||||
12 | stopovers.
| ||||||
13 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
14 | or used by an air carrier, certified by the carrier to be used | ||||||
15 | for consumption, shipment, or storage in the conduct of its | ||||||
16 | business as an air common carrier, for a flight that (i) is | ||||||
17 | engaged in foreign trade or is engaged in trade between the | ||||||
18 | United States and any of its possessions and (ii) transports at | ||||||
19 | least one individual or package for hire from the city of | ||||||
20 | origination to the city of final destination on the same | ||||||
21 | aircraft, without regard to a change in the flight number of | ||||||
22 | that aircraft. | ||||||
23 | (23) A transaction in which the purchase order is received | ||||||
24 | by a florist
who is located outside Illinois, but who has a | ||||||
25 | florist located in Illinois
deliver the property to the | ||||||
26 | purchaser or the purchaser's donee in Illinois.
|
| |||||||
| |||||||
1 | (24) Fuel consumed or used in the operation of ships, | ||||||
2 | barges, or vessels
that are used primarily in or for the | ||||||
3 | transportation of property or the
conveyance of persons for | ||||||
4 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
5 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
6 | it is afloat upon that bordering river.
| ||||||
7 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
8 | motor vehicle sold in this State to a nonresident even though | ||||||
9 | the
motor vehicle is delivered to the nonresident in this | ||||||
10 | State, if the motor
vehicle is not to be titled in this State, | ||||||
11 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
12 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
13 | the nonresident purchaser has vehicle registration
plates to | ||||||
14 | transfer to the motor vehicle upon returning to his or her home
| ||||||
15 | state. The issuance of the drive-away permit or having
the
| ||||||
16 | out-of-state registration plates to be transferred is prima | ||||||
17 | facie evidence
that the motor vehicle will not be titled in | ||||||
18 | this State.
| ||||||
19 | (25-5) The exemption under item (25) does not apply if the | ||||||
20 | state in which the motor vehicle will be titled does not allow | ||||||
21 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
22 | in that state to an Illinois resident but titled in Illinois. | ||||||
23 | The tax collected under this Act on the sale of a motor vehicle | ||||||
24 | in this State to a resident of another state that does not | ||||||
25 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
26 | to the state's rate of tax on taxable property in the state in |
| |||||||
| |||||||
1 | which the purchaser is a resident, except that the tax shall | ||||||
2 | not exceed the tax that would otherwise be imposed under this | ||||||
3 | Act. At the time of the sale, the purchaser shall execute a | ||||||
4 | statement, signed under penalty of perjury, of his or her | ||||||
5 | intent to title the vehicle in the state in which the purchaser | ||||||
6 | is a resident within 30 days after the sale and of the fact of | ||||||
7 | the payment to the State of Illinois of tax in an amount | ||||||
8 | equivalent to the state's rate of tax on taxable property in | ||||||
9 | his or her state of residence and shall submit the statement to | ||||||
10 | the appropriate tax collection agency in his or her state of | ||||||
11 | residence. In addition, the retailer must retain a signed copy | ||||||
12 | of the statement in his or her records. Nothing in this item | ||||||
13 | shall be construed to require the removal of the vehicle from | ||||||
14 | this state following the filing of an intent to title the | ||||||
15 | vehicle in the purchaser's state of residence if the purchaser | ||||||
16 | titles the vehicle in his or her state of residence within 30 | ||||||
17 | days after the date of sale. The tax collected under this Act | ||||||
18 | in accordance with this item (25-5) shall be proportionately | ||||||
19 | distributed as if the tax were collected at the 6.25% general | ||||||
20 | rate imposed under this Act.
| ||||||
21 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
22 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
23 | the Illinois Aeronautics Act, if all of the following | ||||||
24 | conditions are met: | ||||||
25 | (1) the aircraft leaves this State within 15 days after | ||||||
26 | the later of either the issuance of the final billing for |
| |||||||
| |||||||
1 | the sale of the aircraft, or the authorized approval for | ||||||
2 | return to service, completion of the maintenance record | ||||||
3 | entry, and completion of the test flight and ground test | ||||||
4 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
5 | (2) the aircraft is not based or registered in this | ||||||
6 | State after the sale of the aircraft; and | ||||||
7 | (3) the seller retains in his or her books and records | ||||||
8 | and provides to the Department a signed and dated | ||||||
9 | certification from the purchaser, on a form prescribed by | ||||||
10 | the Department, certifying that the requirements of this | ||||||
11 | item (25-7) are met. The certificate must also include the | ||||||
12 | name and address of the purchaser, the address of the | ||||||
13 | location where the aircraft is to be titled or registered, | ||||||
14 | the address of the primary physical location of the | ||||||
15 | aircraft, and other information that the Department may | ||||||
16 | reasonably require. | ||||||
17 | For purposes of this item (25-7): | ||||||
18 | "Based in this State" means hangared, stored, or otherwise | ||||||
19 | used, excluding post-sale customizations as defined in this | ||||||
20 | Section, for 10 or more days in each 12-month period | ||||||
21 | immediately following the date of the sale of the aircraft. | ||||||
22 | "Registered in this State" means an aircraft registered | ||||||
23 | with the Department of Transportation, Aeronautics Division, | ||||||
24 | or titled or registered with the Federal Aviation | ||||||
25 | Administration to an address located in this State. | ||||||
26 | This paragraph (25-7) is exempt from the provisions
of
|
| |||||||
| |||||||
1 | Section 2-70.
| ||||||
2 | (26) Semen used for artificial insemination of livestock | ||||||
3 | for direct
agricultural production.
| ||||||
4 | (27) Horses, or interests in horses, registered with and | ||||||
5 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
6 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
7 | Horse Association, United States
Trotting Association, or | ||||||
8 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
9 | racing for prizes. This item (27) is exempt from the provisions | ||||||
10 | of Section 2-70, and the exemption provided for under this item | ||||||
11 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
12 | claim for credit or refund is allowed on or after January 1, | ||||||
13 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
14 | paid during the period beginning May 30, 2000 and ending on | ||||||
15 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
16 | (28) Computers and communications equipment utilized for | ||||||
17 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
18 | analysis, or treatment of hospital patients sold to a lessor | ||||||
19 | who leases the
equipment, under a lease of one year or longer | ||||||
20 | executed or in effect at the
time of the purchase, to a
| ||||||
21 | hospital
that has been issued an active tax exemption | ||||||
22 | identification number by the
Department under Section 1g of | ||||||
23 | this Act.
| ||||||
24 | (29) Personal property sold to a lessor who leases the
| ||||||
25 | property, under a
lease of one year or longer executed or in | ||||||
26 | effect at the time of the purchase,
to a governmental body
that |
| |||||||
| |||||||
1 | has been issued an active tax exemption identification number | ||||||
2 | by the
Department under Section 1g of this Act.
| ||||||
3 | (30) Beginning with taxable years ending on or after | ||||||
4 | December
31, 1995
and
ending with taxable years ending on or | ||||||
5 | before December 31, 2004,
personal property that is
donated for | ||||||
6 | disaster relief to be used in a State or federally declared
| ||||||
7 | disaster area in Illinois or bordering Illinois by a | ||||||
8 | manufacturer or retailer
that is registered in this State to a | ||||||
9 | corporation, society, association,
foundation, or institution | ||||||
10 | that has been issued a sales tax exemption
identification | ||||||
11 | number by the Department that assists victims of the disaster
| ||||||
12 | who reside within the declared disaster area.
| ||||||
13 | (31) Beginning with taxable years ending on or after | ||||||
14 | December
31, 1995 and
ending with taxable years ending on or | ||||||
15 | before December 31, 2004, personal
property that is used in the | ||||||
16 | performance of infrastructure repairs in this
State, including | ||||||
17 | but not limited to municipal roads and streets, access roads,
| ||||||
18 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
19 | line extensions,
water distribution and purification | ||||||
20 | facilities, storm water drainage and
retention facilities, and | ||||||
21 | sewage treatment facilities, resulting from a State
or | ||||||
22 | federally declared disaster in Illinois or bordering Illinois | ||||||
23 | when such
repairs are initiated on facilities located in the | ||||||
24 | declared disaster area
within 6 months after the disaster.
| ||||||
25 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
26 | "game breeding
and
hunting preserve area" as that term is used
|
| |||||||
| |||||||
1 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
2 | provisions
of
Section 2-70.
| ||||||
3 | (33) A motor vehicle, as that term is defined in Section | ||||||
4 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
5 | corporation, limited liability
company, society, association, | ||||||
6 | foundation, or institution that is determined by
the Department | ||||||
7 | to be organized and operated exclusively for educational
| ||||||
8 | purposes. For purposes of this exemption, "a corporation, | ||||||
9 | limited liability
company, society, association, foundation, | ||||||
10 | or institution organized and
operated
exclusively for | ||||||
11 | educational purposes" means all tax-supported public schools,
| ||||||
12 | private schools that offer systematic instruction in useful | ||||||
13 | branches of
learning by methods common to public schools and | ||||||
14 | that compare favorably in
their scope and intensity with the | ||||||
15 | course of study presented in tax-supported
schools, and | ||||||
16 | vocational or technical schools or institutes organized and
| ||||||
17 | operated exclusively to provide a course of study of not less | ||||||
18 | than 6 weeks
duration and designed to prepare individuals to | ||||||
19 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
20 | industrial, business, or commercial
occupation.
| ||||||
21 | (34) Beginning January 1, 2000, personal property, | ||||||
22 | including food, purchased
through fundraising events for the | ||||||
23 | benefit of a public or private elementary or
secondary school, | ||||||
24 | a group of those schools, or one or more school districts if
| ||||||
25 | the events are sponsored by an entity recognized by the school | ||||||
26 | district that
consists primarily of volunteers and includes |
| |||||||
| |||||||
1 | parents and teachers of the
school children. This paragraph | ||||||
2 | does not apply to fundraising events (i) for
the benefit of | ||||||
3 | private home instruction or (ii) for which the fundraising
| ||||||
4 | entity purchases the personal property sold at the events from | ||||||
5 | another
individual or entity that sold the property for the | ||||||
6 | purpose of resale by the
fundraising entity and that profits | ||||||
7 | from the sale to the fundraising entity.
This paragraph is | ||||||
8 | exempt from the provisions of Section 2-70.
| ||||||
9 | (35) Beginning January 1, 2000 and through December 31, | ||||||
10 | 2001, new or used
automatic vending machines that prepare and | ||||||
11 | serve hot food and beverages,
including coffee, soup, and other | ||||||
12 | items, and replacement parts for these
machines. Beginning | ||||||
13 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
14 | for machines used in
commercial, coin-operated amusement and | ||||||
15 | vending business if a use or occupation
tax is paid on the | ||||||
16 | gross receipts derived from the use of the commercial,
| ||||||
17 | coin-operated amusement and vending machines. This paragraph | ||||||
18 | is exempt from
the provisions of Section 2-70.
| ||||||
19 | (35-5) Beginning August 23, 2001 and through June 30, 2016, | ||||||
20 | food for human consumption that is to be consumed off
the | ||||||
21 | premises where it is sold (other than alcoholic beverages, soft | ||||||
22 | drinks,
and food that has been prepared for immediate | ||||||
23 | consumption) and prescription
and nonprescription medicines, | ||||||
24 | drugs, medical appliances, and insulin, urine
testing | ||||||
25 | materials, syringes, and needles used by diabetics, for human | ||||||
26 | use, when
purchased for use by a person receiving medical |
| |||||||
| |||||||
1 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
2 | resides in a licensed long-term care facility,
as defined in | ||||||
3 | the Nursing Home Care Act, or a licensed facility as defined in | ||||||
4 | the ID/DD Community Care Act, the MC/DD Act, or the Specialized | ||||||
5 | Mental Health Rehabilitation Act of 2013.
| ||||||
6 | (36) Beginning August 2, 2001, computers and | ||||||
7 | communications equipment
utilized for any hospital purpose and | ||||||
8 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
9 | hospital patients sold to a lessor who leases the
equipment, | ||||||
10 | under a lease of one year or longer executed or in effect at | ||||||
11 | the
time of the purchase, to a hospital that has been issued an | ||||||
12 | active tax
exemption identification number by the Department | ||||||
13 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
14 | provisions of Section 2-70.
| ||||||
15 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
16 | lessor who
leases the property, under a lease of one year or | ||||||
17 | longer executed or in effect
at the time of the purchase, to a | ||||||
18 | governmental body that has been issued an
active tax exemption | ||||||
19 | identification number by the Department under Section 1g
of | ||||||
20 | this Act. This paragraph is exempt from the provisions of | ||||||
21 | Section 2-70.
| ||||||
22 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
23 | 2016, tangible personal property purchased
from an Illinois | ||||||
24 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
25 | activities in Illinois who will, upon receipt of the property | ||||||
26 | in Illinois,
temporarily store the property in Illinois (i) for |
| |||||||
| |||||||
1 | the purpose of subsequently
transporting it outside this State | ||||||
2 | for use or consumption thereafter solely
outside this State or | ||||||
3 | (ii) for the purpose of being processed, fabricated, or
| ||||||
4 | manufactured into, attached to, or incorporated into other | ||||||
5 | tangible personal
property to be transported outside this State | ||||||
6 | and thereafter used or consumed
solely outside this State. The | ||||||
7 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
8 | accordance with the Illinois Administrative Procedure Act, | ||||||
9 | issue a
permit to any taxpayer in good standing with the | ||||||
10 | Department who is eligible for
the exemption under this | ||||||
11 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
12 | shall authorize the holder, to the extent and
in the manner | ||||||
13 | specified in the rules adopted under this Act, to purchase
| ||||||
14 | tangible personal property from a retailer exempt from the | ||||||
15 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
16 | necessary books and records to
substantiate the use and | ||||||
17 | consumption of all such tangible personal property
outside of | ||||||
18 | the State of Illinois.
| ||||||
19 | (39) Beginning January 1, 2008, tangible personal property | ||||||
20 | used in the construction or maintenance of a community water | ||||||
21 | supply, as defined under Section 3.145 of the Environmental | ||||||
22 | Protection Act, that is operated by a not-for-profit | ||||||
23 | corporation that holds a valid water supply permit issued under | ||||||
24 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
25 | exempt from the provisions of Section 2-70.
| ||||||
26 | (40) Beginning January 1, 2010, materials, parts, |
| |||||||
| |||||||
1 | equipment, components, and furnishings incorporated into or | ||||||
2 | upon an aircraft as part of the modification, refurbishment, | ||||||
3 | completion, replacement, repair, or maintenance of the | ||||||
4 | aircraft. This exemption includes consumable supplies used in | ||||||
5 | the modification, refurbishment, completion, replacement, | ||||||
6 | repair, and maintenance of aircraft, but excludes any | ||||||
7 | materials, parts, equipment, components, and consumable | ||||||
8 | supplies used in the modification, replacement, repair, and | ||||||
9 | maintenance of aircraft engines or power plants, whether such | ||||||
10 | engines or power plants are installed or uninstalled upon any | ||||||
11 | such aircraft. "Consumable supplies" include, but are not | ||||||
12 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
13 | lubricants, cleaning solution, latex gloves, and protective | ||||||
14 | films. This exemption applies only to the sale of qualifying | ||||||
15 | tangible personal property to persons who modify, refurbish, | ||||||
16 | complete, replace, or maintain an aircraft and who (i) hold an | ||||||
17 | Air Agency Certificate and are empowered to operate an approved | ||||||
18 | repair station by the Federal Aviation Administration, (ii) | ||||||
19 | have a Class IV Rating, and (iii) conduct operations in | ||||||
20 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
21 | The exemption does not include aircraft operated by a | ||||||
22 | commercial air carrier providing scheduled passenger air | ||||||
23 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
24 | of the Federal Aviation Regulations. The changes made to this | ||||||
25 | paragraph (40) by Public Act 98-534 are declarative of existing | ||||||
26 | law. |
| |||||||
| |||||||
1 | (41) Tangible personal property sold to a | ||||||
2 | public-facilities corporation, as described in Section | ||||||
3 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
4 | constructing or furnishing a municipal convention hall, but | ||||||
5 | only if the legal title to the municipal convention hall is | ||||||
6 | transferred to the municipality without any further | ||||||
7 | consideration by or on behalf of the municipality at the time | ||||||
8 | of the completion of the municipal convention hall or upon the | ||||||
9 | retirement or redemption of any bonds or other debt instruments | ||||||
10 | issued by the public-facilities corporation in connection with | ||||||
11 | the development of the municipal convention hall. This | ||||||
12 | exemption includes existing public-facilities corporations as | ||||||
13 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
14 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
15 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
16 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
17 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
18 | 7-29-15.)
| ||||||
19 | Section 30. The Cigarette Tax Act is amended by changing | ||||||
20 | Section 18c as follows:
| ||||||
21 | (35 ILCS 130/18c)
| ||||||
22 | Sec. 18c.
Possession of
not less than 10 and not
more than
| ||||||
23 | 100 original packages of contraband cigarettes; penalty. With | ||||||
24 | the exception of licensed distributors and transporters, as |
| |||||||
| |||||||
1 | defined in Section 9c of this Act, possessing unstamped | ||||||
2 | original packages of cigarettes, and licensed distributors | ||||||
3 | possessing original packages of cigarettes that bear a tax | ||||||
4 | stamp of another state or taxing jurisdiction,
anyone | ||||||
5 | possessing
not less than 10
and not more than 100 packages of
| ||||||
6 | contraband cigarettes contained in original packages is
liable | ||||||
7 | to pay to the Department, for deposit into the Tax Compliance | ||||||
8 | and
Administration Fund, a penalty of $20 $10
for each such | ||||||
9 | package of
cigarettes, unless reasonable cause can be | ||||||
10 | established by the person upon whom
the penalty is imposed. | ||||||
11 | Reasonable cause shall be determined in each situation
in | ||||||
12 | accordance with rules adopted by the Department. The provisions | ||||||
13 | of the Uniform Penalty and Interest Act do not apply to this | ||||||
14 | Section.
| ||||||
15 | (Source: P.A. 96-782, eff. 1-1-10.)
| ||||||
16 | Section 35. The Counties Code is amended by changing | ||||||
17 | Sections 5-1032 and 5-1033 as follows:
| ||||||
18 | (55 ILCS 5/5-1032) (from Ch. 34, par. 5-1032)
| ||||||
19 | Sec. 5-1032. County Automobile Renting Occupation Tax. The | ||||||
20 | corporate
authorities of a county may impose a tax
upon all | ||||||
21 | persons engaged in the business of renting automobiles in the | ||||||
22 | county,
but outside any municipality, at the rate of not to | ||||||
23 | exceed 1% of the gross
receipts from such business. The tax | ||||||
24 | imposed by a county pursuant to this
Section and all civil |
| |||||||
| |||||||
1 | penalties that may be assessed as an Incident thereof
shall be | ||||||
2 | collected and enforced by the State Department of Revenue. The
| ||||||
3 | certificate of registration which is issued by the Department | ||||||
4 | to a retailer
under the " Retailers' Occupation Tax Act ", | ||||||
5 | approved June 23, 1933, as amended,
or under the " Automobile | ||||||
6 | Renting Occupation and Use Tax Act ", enacted by
the | ||||||
7 | Eighty-Second General Assembly, shall permit such person to | ||||||
8 | engage in
a business which is taxable under any ordinance or | ||||||
9 | resolution enacted pursuant
to this Section without | ||||||
10 | registering separately with the Department under
such | ||||||
11 | ordinance or resolution or under this Section. The Department | ||||||
12 | shall
have full power to administer and enforce this Section; | ||||||
13 | to collect all taxes
and penalties due hereunder; to dispose of | ||||||
14 | taxes and penalties so collected
in the manner hereinafter | ||||||
15 | provided, and to determine all rights to credit
memoranda, | ||||||
16 | arising on account of the erroneous payment of tax or penalty
| ||||||
17 | hereunder. In the administration of, and compliance with, this | ||||||
18 | Section,
the Department and persons who are subject to this | ||||||
19 | Section shall have the
same rights, remedies, privileges, | ||||||
20 | immunities, powers and duties, and be
subject to the same | ||||||
21 | conditions, restrictions, limitations, penalties and
| ||||||
22 | definitions of terms, and employ the same modes of procedure, | ||||||
23 | as are prescribed
in Sections 2 and 3 (in respect to all | ||||||
24 | provisions therein other than the
State rate of tax; and with | ||||||
25 | relation to the provisions of the " Retailers'
Occupation Tax " | ||||||
26 | referred to therein, except as to the disposition of taxes
and |
| |||||||
| |||||||
1 | penalties collected, and except for the provision allowing | ||||||
2 | retailers
a deduction from the tax to cover certain costs, and | ||||||
3 | except that credit
memoranda issued hereunder may not be used | ||||||
4 | to discharge any State tax
liability) of the " Automobile | ||||||
5 | Renting Occupation and Use Tax Act ", as the
same are now or may | ||||||
6 | hereafter be amended, as fully as if provisions
contained in | ||||||
7 | those Sections of said Act were set forth herein.
| ||||||
8 | Persons subject to any tax imposed pursuant to the | ||||||
9 | authority granted in
this Section may reimburse themselves for | ||||||
10 | their tax liability hereunder by
separately stating such tax as | ||||||
11 | an additional charge, which charge may be
stated in | ||||||
12 | combination, in a single amount, with State tax which sellers
| ||||||
13 | are required to collect under the " Automobile Renting | ||||||
14 | Occupation and Use
Tax Act " pursuant to such bracket schedules | ||||||
15 | as the Department may prescribe.
| ||||||
16 | Whenever the Department determines that a refund should be | ||||||
17 | made under
this Section to a claimant instead of issuing a | ||||||
18 | credit memorandum, the
Department shall notify the State | ||||||
19 | Comptroller, who shall cause the order to
be drawn for the | ||||||
20 | amount specified, and to the person named, in such
notification | ||||||
21 | from the Department. Such refund shall be paid by the State
| ||||||
22 | Treasurer out of the county automobile renting tax fund.
| ||||||
23 | The Department shall forthwith pay over to the State | ||||||
24 | Treasurer, ex-officio,
as trustee, all taxes and penalties | ||||||
25 | collected hereunder. On or before the
25th day of each calendar | ||||||
26 | month, the Department shall prepare and certify
to the |
| |||||||
| |||||||
1 | Comptroller the disbursement of stated sums of money to named | ||||||
2 | counties
from which rentors have paid taxes or penalties | ||||||
3 | hereunder to the Department
during the second preceding | ||||||
4 | calendar month. The amount to be paid to each
county shall be | ||||||
5 | the amount (not including credit memoranda) collected | ||||||
6 | hereunder
during the second preceding calendar month by the | ||||||
7 | Department, and not including
an amount equal to the amount of | ||||||
8 | refunds made during the second preceding
calendar month by the | ||||||
9 | Department on behalf of such county, less 2% of such
balance, | ||||||
10 | which sum shall be retained by the State Treasurer to cover the
| ||||||
11 | costs incurred by the Department in administering and enforcing | ||||||
12 | this
Section as provided herein. The Department at the time of | ||||||
13 | each monthly
disbursement to the counties shall prepare and | ||||||
14 | certify to the Comptroller
the amount, so retained by the State | ||||||
15 | Treasurer, to be paid into the General
Revenue Fund of the | ||||||
16 | State Treasury. Within 10 days after receipt, by the
| ||||||
17 | Comptroller, of the disbursement certification to the counties | ||||||
18 | and the
General Revenue Fund, provided for in this Section to | ||||||
19 | be given to the
Comptroller by the Department, the Comptroller | ||||||
20 | shall cause the orders to be
drawn for the respective amounts | ||||||
21 | in accordance with the directions
contained in such | ||||||
22 | certification.
| ||||||
23 | Nothing in this Section shall be construed to authorize a | ||||||
24 | county to
impose a tax upon the privilege of engaging in any | ||||||
25 | business which under the
constitution of the United States may | ||||||
26 | not be made the subject of taxation
by this State.
|
| |||||||
| |||||||
1 | An ordinance or resolution imposing or discontinuing the | ||||||
2 | tax under this Section or effecting a change in the rate | ||||||
3 | thereof shall be adopted and a certified copy thereof filed | ||||||
4 | with the Department either: (i) on or before the first day of | ||||||
5 | April, in which case the Department shall proceed to administer | ||||||
6 | and enforce this Section as of the first day of July next | ||||||
7 | following the adoption or filing; or (ii) on or before the | ||||||
8 | first day of October, in which case the Department shall | ||||||
9 | proceed to administer and enforce this Section as of the first | ||||||
10 | day of January next following the adoption and filing. | ||||||
11 | An ordinance or resolution imposing a tax hereunder or | ||||||
12 | effecting a change
in the rate thereof shall be effective on | ||||||
13 | the first day of the calendar
month next following the month in | ||||||
14 | which such ordinance or resolution is
passed. The corporate | ||||||
15 | authorities of any county which levies a tax authorized
by this | ||||||
16 | Section shall transmit to the Department of Revenue on or not | ||||||
17 | later
than 5 days after passage of the ordinance or resolution | ||||||
18 | a certified copy
of the ordinance or resolution imposing such | ||||||
19 | tax whereupon the Department
of Revenue shall proceed to | ||||||
20 | administer and enforce this Section on behalf
of such county as | ||||||
21 | of the effective date of the ordinance or resolution.
Upon a | ||||||
22 | change in rate of a tax levied hereunder, or upon the | ||||||
23 | discontinuance
of the tax, the corporate authorities of the | ||||||
24 | county shall on or not later
than 5 days after passage of the | ||||||
25 | ordinance or resolution discontinuing the
tax or effecting a | ||||||
26 | change in rate transmit to the Department of Revenue a
|
| |||||||
| |||||||
1 | certified copy of the ordinance or resolution effecting such | ||||||
2 | change or discontinuance.
| ||||||
3 | The Department of Revenue must upon the request of the | ||||||
4 | County Clerk or County
Board submit to a county a list of those | ||||||
5 | persons who are registered with
the Department to pay | ||||||
6 | automobile renting occupation tax within the unincorporated
| ||||||
7 | area of that governmental unit. This list shall contain only | ||||||
8 | the names
of persons who have paid the tax and not the amount | ||||||
9 | of tax paid by such person.
| ||||||
10 | This Section shall be known and may be cited as the "County | ||||||
11 | Automobile
Renting Occupation Tax Law".
| ||||||
12 | (Source: P.A. 86-962.)
| ||||||
13 | (55 ILCS 5/5-1033) (from Ch. 34, par. 5-1033)
| ||||||
14 | Sec. 5-1033. County Automobile Renting Use Tax. The | ||||||
15 | corporate
authorities of a county may impose a tax upon the | ||||||
16 | privilege of using, in
such county an automobile which is | ||||||
17 | rented from a rentor outside Illinois,
and which is titled or | ||||||
18 | registered with an agency of this State's
government, at a rate | ||||||
19 | not to exceed 1% of the rental price of such
automobile. Such | ||||||
20 | tax shall be collected from persons whose Illinois
address for | ||||||
21 | titling or registration purposes is given as being in the
| ||||||
22 | unincorporated area of such county. Such tax shall be collected | ||||||
23 | by the
Department of Revenue for any county imposing such tax. | ||||||
24 | Such tax must be
paid to the State, or an exemption | ||||||
25 | determination must be obtained from the
Department of Revenue, |
| |||||||
| |||||||
1 | before the title or certificate of registration for
the | ||||||
2 | property may be issued. The tax or proof of exemption may be
| ||||||
3 | transmitted to the Department by way of the State agency with | ||||||
4 | which, or
State officer with whom, the tangible personal | ||||||
5 | property must be titled or
registered if the Department and | ||||||
6 | such agency or State officer determine
that this procedure will | ||||||
7 | expedite the processing of applications for title
or | ||||||
8 | registration.
| ||||||
9 | The Department shall have full power to administer and | ||||||
10 | enforce this Section;
to collect all taxes, penalties and | ||||||
11 | interest due hereunder; to dispose of
taxes, penalties and | ||||||
12 | interest so collected in the manner hereinafter provided,
and | ||||||
13 | to determine all rights to credit memoranda or refunds arising | ||||||
14 | on account
of the erroneous payment of tax, penalty or interest | ||||||
15 | hereunder. In the
administration of, and compliance with, this | ||||||
16 | Section, the Department and
persons who are subject to this | ||||||
17 | Section shall have the same rights, remedies,
privileges, | ||||||
18 | immunities, powers and duties, and be subject to the same
| ||||||
19 | conditions, restrictions, limitations, penalties and | ||||||
20 | definitions of terms,
and employ the same modes of procedure, | ||||||
21 | as are prescribed in Sections 2 and
4 (except provisions | ||||||
22 | pertaining to the State rate of tax; and with relation
to the | ||||||
23 | provisions of the " Use Tax Act " referred to therein, except
| ||||||
24 | provisions concerning collection or refunding of the tax by | ||||||
25 | retailers, and
except the provisions of Section 19 pertaining | ||||||
26 | to claims by retailers and
except the last paragraph concerning |
| |||||||
| |||||||
1 | refunds, and except that credit
memoranda issued hereunder may | ||||||
2 | not be used to discharge any State tax
liability) of the | ||||||
3 | " Automobile Renting Occupation and Use Tax Act ",
as the same | ||||||
4 | are now or may hereafter be amended, which are not inconsistent
| ||||||
5 | with this Section, as fully as if provisions contained in those | ||||||
6 | Sections
of said Act were set forth herein.
| ||||||
7 | Whenever the Department determines that a refund should be | ||||||
8 | made under this
Section to a claimant instead of issuing a | ||||||
9 | credit memorandum, the Department
shall notify the State | ||||||
10 | Comptroller, who shall cause the order to be drawn
for the | ||||||
11 | amount specified, and to the person named, in such notification
| ||||||
12 | from the Department. Such refund shall be paid by the State | ||||||
13 | Treasurer out
of the county automobile renting tax fund.
| ||||||
14 | The Department shall forthwith pay over to the State | ||||||
15 | Treasurer, ex-officio,
as trustee, all taxes, penalties and | ||||||
16 | interest collected hereunder. On or
before the 25th day of each | ||||||
17 | calendar month, the Department shall prepare
and certify to the | ||||||
18 | State Comptroller the disbursement of stated sums of
money to | ||||||
19 | named counties from which the Department, during the second | ||||||
20 | preceding
calendar month, collected taxes hereunder from | ||||||
21 | persons whose Illinois address
for titling or registration | ||||||
22 | purposes is given as being in the unincorporated
area of such | ||||||
23 | county. The amount to be paid to each county shall be the
| ||||||
24 | amount (not including credit memoranda) collected hereunder | ||||||
25 | during the second
preceding calendar month by the Department, | ||||||
26 | and not including an amount
equal to the amount of refunds made |
| |||||||
| |||||||
1 | during the second preceding calendar
month by the Department on | ||||||
2 | behalf of such county, less 2% of such balance,
which sum shall | ||||||
3 | be retained by the State Treasurer to cover the costs
incurred | ||||||
4 | by the Department in administering and enforcing this Section | ||||||
5 | as
provided herein. The Department at the time of each monthly | ||||||
6 | disbursement
to the counties shall prepare and certify to the | ||||||
7 | State Comptroller the
amount, so retained by the State | ||||||
8 | Treasurer, to be paid into the General
Revenue Fund of the | ||||||
9 | State Treasury. Within 10 days after receipt, by the
State | ||||||
10 | Comptroller, of the disbursement certification to the counties | ||||||
11 | and
the General Revenue Fund, provided for in this Section to | ||||||
12 | be given to the
State Comptroller by the Department, the State | ||||||
13 | Comptroller shall cause the
orders to be drawn for the | ||||||
14 | respective amounts in accordance with the
directions contained | ||||||
15 | in such certification.
| ||||||
16 | An ordinance or resolution imposing or discontinuing the | ||||||
17 | tax under this Section or effecting a change in the rate | ||||||
18 | thereof shall be adopted and a certified copy thereof filed | ||||||
19 | with the Department either: (i) on or before the first day of | ||||||
20 | April, in which case the Department shall proceed to administer | ||||||
21 | and enforce this Section as of the first day of July next | ||||||
22 | following the adoption or filing; or (ii) on or before the | ||||||
23 | first day of October, in which case the Department shall | ||||||
24 | proceed to administer and enforce this Section as of the first | ||||||
25 | day of January next following the adoption and filing. | ||||||
26 | An ordinance or resolution imposing a tax hereunder or |
| |||||||
| |||||||
1 | effecting a change
in the rate thereof shall be effective on | ||||||
2 | the first day of the calendar
month next following the month in | ||||||
3 | which such ordinance or resolution is
passed. The corporate | ||||||
4 | authorities of any county which levies a tax authorized
by this | ||||||
5 | Section shall transmit to the Department of Revenue on or not | ||||||
6 | later
than 5 days after passage of the ordinance or resolution | ||||||
7 | a certified copy
of the ordinance or resolution imposing such | ||||||
8 | tax whereupon the Department
of Revenue shall proceed to | ||||||
9 | administer and enforce this Section on behalf
of such county as | ||||||
10 | of the effective date of the ordinance or resolution.
Upon a | ||||||
11 | change in rate of a tax levied hereunder, or upon the | ||||||
12 | discontinuance
of the tax, the corporate authorities of the | ||||||
13 | county shall, on or not later
than 5 days after passage of the | ||||||
14 | ordinance or resolution discontinuing the
tax or effecting a | ||||||
15 | change in rate, transmit to the Department of Revenue a
| ||||||
16 | certified copy of the ordinance or resolution effecting such | ||||||
17 | change or
discontinuance.
| ||||||
18 | This Section shall be known and may be cited as the "County | ||||||
19 | Automobile
Renting Use Tax Law".
| ||||||
20 | (Source: P.A. 86-962.)
| ||||||
21 | Section 40. The Illinois Municipal Code is amended by | ||||||
22 | changing Sections 8-11-7 and 8-11-8 as follows:
| ||||||
23 | (65 ILCS 5/8-11-7) (from Ch. 24, par. 8-11-7)
| ||||||
24 | Sec. 8-11-7. Municipal Automobile Renting Occupation Tax. |
| |||||||
| |||||||
1 | The corporate authorities of a municipality may impose
a tax | ||||||
2 | upon all persons engaged in the business of renting automobiles | ||||||
3 | in
the municipality at the rate of not to exceed 1% of the | ||||||
4 | gross receipts from
such business. The tax imposed by a | ||||||
5 | municipality pursuant to this Section
and all civil penalties | ||||||
6 | that may be assessed as an incident thereof shall
be collected | ||||||
7 | and enforced by the State Department of Revenue. The | ||||||
8 | certificate
of registration which is issued by the Department | ||||||
9 | to a retailer under the
Retailers' Occupation Tax Act or under | ||||||
10 | the Automobile Renting Occupation and Use Tax
Act shall permit | ||||||
11 | such
person to engage in a
business which is taxable under any | ||||||
12 | ordinance or resolution enacted pursuant
to this Section | ||||||
13 | without registering separately with the Department under
such | ||||||
14 | ordinance or resolution or under this Section. The Department | ||||||
15 | shall
have full power to administer and enforce this Section; | ||||||
16 | to collect all taxes
and penalties due hereunder; to dispose of | ||||||
17 | taxes and penalties so collected
in the manner hereinafter | ||||||
18 | provided; and to determine all rights to credit
memoranda, | ||||||
19 | arising on account of the erroneous payment of tax or penalty
| ||||||
20 | hereunder. In the administration of, and compliance with, this | ||||||
21 | Section,
the Department and persons who are subject to this | ||||||
22 | Section shall have the
same rights, remedies, privileges, | ||||||
23 | immunities, powers and duties, and be
subject to the same | ||||||
24 | conditions, restrictions, limitations, penalties and
| ||||||
25 | definitions of terms, and employ the same modes of procedure, | ||||||
26 | as are prescribed
in Sections 2 and 3 (in respect to all |
| |||||||
| |||||||
1 | provisions therein other than the
State rate of tax; and with | ||||||
2 | relation to the provisions of the " Retailers'
Occupation Tax " | ||||||
3 | referred to therein, except as to the disposition of taxes
and | ||||||
4 | penalties collected, and except for the provision allowing | ||||||
5 | retailers
a deduction from the tax to cover certain costs, and | ||||||
6 | except that credit
memoranda issued hereunder may not be used | ||||||
7 | to discharge any State tax
liability) of the Automobile Renting | ||||||
8 | Occupation and Use Tax Act, as fully
as if those provisions | ||||||
9 | were set forth herein.
| ||||||
10 | Persons subject to any tax imposed pursuant to the | ||||||
11 | authority granted in
this Section may reimburse themselves for | ||||||
12 | their tax liability hereunder
by separately stating such tax as | ||||||
13 | an additional charge, which charge may
be stated in | ||||||
14 | combination, in a single amount, with State tax which sellers
| ||||||
15 | are required to collect under the Automobile Renting Occupation | ||||||
16 | and
Use Tax Act pursuant to such bracket schedules as the | ||||||
17 | Department may
prescribe.
| ||||||
18 | Whenever the Department determines that a refund should be | ||||||
19 | made under this
Section to a claimant instead of issuing a | ||||||
20 | credit memorandum, the Department
shall notify the State | ||||||
21 | Comptroller, who shall cause the order to be drawn
for the | ||||||
22 | amount specified, and to the person named, in such notification
| ||||||
23 | from the Department. Such refund shall be paid by the State | ||||||
24 | Treasurer out
of the municipal automobile renting tax fund.
| ||||||
25 | The Department shall forthwith pay over to the State | ||||||
26 | Treasurer, ex-officio,
as trustee, all taxes and penalties |
| |||||||
| |||||||
1 | collected hereunder. On or before the
25th day of each calendar | ||||||
2 | month, the Department shall prepare and certify
to the | ||||||
3 | Comptroller the disbursement of stated sums of money to named
| ||||||
4 | municipalities, the municipalities to be those from which | ||||||
5 | rentors have paid
taxes or penalties hereunder to the | ||||||
6 | Department during the second preceding
calendar month. The | ||||||
7 | amount to be paid to each municipality shall be the
amount (not | ||||||
8 | including credit memoranda) collected hereunder during the
| ||||||
9 | second preceding calendar month by the Department, and not | ||||||
10 | including an
amount equal to the amount of refunds made during | ||||||
11 | the second preceding
calendar month by the Department on behalf | ||||||
12 | of such municipality, less 1.6%
of such balance, which sum | ||||||
13 | shall be retained by the State Treasurer to
cover the costs | ||||||
14 | incurred by the Department in administering and enforcing
this | ||||||
15 | Section as provided herein. The Department at the time of each
| ||||||
16 | monthly disbursement to the municipalities shall prepare and | ||||||
17 | certify to the
Comptroller the amount, so retained by the State | ||||||
18 | Treasurer, to be paid into
the General Revenue Fund of the | ||||||
19 | State Treasury. Within 10 days after
receipt, by the | ||||||
20 | Comptroller, of the disbursement certification to the
| ||||||
21 | municipalities and the General Revenue Fund, provided for in | ||||||
22 | this
Section to be given to the Comptroller by the Department, | ||||||
23 | the Comptroller
shall cause the orders to be drawn for the | ||||||
24 | respective amounts
in accordance with the directions contained | ||||||
25 | in such certification.
| ||||||
26 | Nothing in this Section shall be construed to authorize a |
| |||||||
| |||||||
1 | municipality
to impose a tax upon the privilege of engaging in | ||||||
2 | any business which under
the Constitution of the United States | ||||||
3 | may not be made the subject of taxation
by this State.
| ||||||
4 | An ordinance or resolution imposing or discontinuing the | ||||||
5 | tax under this Section or effecting a change in the rate | ||||||
6 | thereof shall be adopted and a certified copy thereof filed | ||||||
7 | with the Department either: (i) on or before the first day of | ||||||
8 | April, in which case the Department shall proceed to administer | ||||||
9 | and enforce this Section as of the first day of July next | ||||||
10 | following the adoption or filing; or (ii) on or before the | ||||||
11 | first day of October, in which case the Department shall | ||||||
12 | proceed to administer and enforce this Section as of the first | ||||||
13 | day of January next following the adoption and filing. | ||||||
14 | An ordinance or resolution imposing a tax hereunder or | ||||||
15 | effecting a change
in the rate thereof shall be effective on | ||||||
16 | the first day of the calendar
month next following publication | ||||||
17 | as provided in Section 1-2-4. The corporate
authorities of any | ||||||
18 | municipality which levies a tax authorized by this Section
| ||||||
19 | shall transmit to the Department of Revenue on or not later | ||||||
20 | than 5 days
after publication a certified copy of the ordinance | ||||||
21 | or resolution imposing
such tax whereupon the Department of | ||||||
22 | Revenue shall proceed to administer
and enforce this Section on | ||||||
23 | behalf of such municipality as of the effective
date of the | ||||||
24 | ordinance or resolution. Upon a change in rate of a tax levied
| ||||||
25 | hereunder, or upon the discontinuance of the tax, the corporate | ||||||
26 | authorities
of the municipality shall on or not later than 5 |
| |||||||
| |||||||
1 | days after publication
of the ordinance or resolution | ||||||
2 | discontinuing the tax or effecting a change
in rate transmit to | ||||||
3 | the Department of Revenue a certified copy of the
ordinance or | ||||||
4 | resolution effecting such change or discontinuance.
| ||||||
5 | The Department of Revenue must upon the request of the | ||||||
6 | municipal clerk,
city council or village board of trustees | ||||||
7 | submit to a city, village or
incorporated town a list of those | ||||||
8 | persons who are registered with the
Department to pay | ||||||
9 | automobile renting occupation tax within that
governmental | ||||||
10 | unit. This list shall contain only the names of persons who
| ||||||
11 | have paid the tax and not the amount of tax paid by such | ||||||
12 | person.
| ||||||
13 | As used in this Section, "municipal" and "municipality" | ||||||
14 | means a city, village
or incorporated town, including an | ||||||
15 | incorporated town which has superseded
a civil township.
| ||||||
16 | This Section shall be known and may be cited as the | ||||||
17 | "Municipal Automobile
Renting Occupation Tax Act".
| ||||||
18 | (Source: P.A. 86-1475.)
| ||||||
19 | (65 ILCS 5/8-11-8) (from Ch. 24, par. 8-11-8)
| ||||||
20 | Sec. 8-11-8. Municipal Automobile Renting Use Tax. The | ||||||
21 | corporate authorities of a municipality may impose a
tax upon | ||||||
22 | the privilege of using, in such municipality, an automobile | ||||||
23 | which
is rented from a rentor outside Illinois, and which is | ||||||
24 | titled or registered
with an agency of this State's government, | ||||||
25 | at a rate not to exceed 1% of
the rental price of such |
| |||||||
| |||||||
1 | automobile. Such tax shall be collected from persons
whose | ||||||
2 | Illinois address for titling or registration purposes is given | ||||||
3 | as
being in such municipality. Such tax shall be collected by | ||||||
4 | the Department
of Revenue for any municipality imposing such | ||||||
5 | tax. Such tax must be paid
to the State, or an exemption | ||||||
6 | determination must be obtained from the Department
of Revenue, | ||||||
7 | before the title or certificate of registration for the | ||||||
8 | property
may be issued. The tax or proof of exemption may be | ||||||
9 | transmitted to the
Department by way of the State agency with | ||||||
10 | which, or State officer with
whom, the tangible personal | ||||||
11 | property must be titled or registered if the
Department and | ||||||
12 | such agency or State officer determine that this procedure
will | ||||||
13 | expedite the processing of applications for title or | ||||||
14 | registration.
| ||||||
15 | The Department shall have full power to administer and | ||||||
16 | enforce this Section;
to collect all taxes, penalties and | ||||||
17 | interest due hereunder; to dispose of
taxes, penalties and | ||||||
18 | interest so collected in the manner hereinafter provided,
and | ||||||
19 | to determine all rights to credit memoranda or refunds arising | ||||||
20 | on account
of the erroneous payment of tax, penalty or interest | ||||||
21 | hereunder. In the
administration of, and compliance with, this | ||||||
22 | Section, the Department and
persons who are subject to this | ||||||
23 | Section shall have the same rights, remedies,
privileges, | ||||||
24 | immunities, powers and duties, and be subject to the same | ||||||
25 | conditions,
restrictions, limitations, penalties and | ||||||
26 | definitions of terms, and employ
the same modes of procedure as |
| |||||||
| |||||||
1 | are prescribed in Sections 2 and 4 (except
provisions | ||||||
2 | pertaining to the State rate of tax; and with relation to the
| ||||||
3 | provisions of the " Use Tax Act " referred to therein, except | ||||||
4 | provisions concerning
collection or refunding of the tax by | ||||||
5 | retailers, and except the provisions
of Section 19 pertaining | ||||||
6 | to claims by retailers and except the last paragraph
concerning | ||||||
7 | refunds, and except that credit memoranda issued hereunder may
| ||||||
8 | not be used to discharge any State tax liability) of the | ||||||
9 | " Automobile Renting
Occupation and Use Tax Act ", enacted by the | ||||||
10 | Eighty-second General Assembly,
as the same are now or may | ||||||
11 | hereafter be amended, which are not inconsistent
with this | ||||||
12 | Section, as fully as if provisions contained in those Sections
| ||||||
13 | of said Act were set forth herein.
| ||||||
14 | Whenever the Department determines that a refund should be | ||||||
15 | made under this
Section to a claimant instead of issuing a | ||||||
16 | credit memorandum, the Department
shall notify the State | ||||||
17 | Comptroller, who shall cause the order to be drawn
for the | ||||||
18 | amount specified, and to the person named, in such notification
| ||||||
19 | from the Department. Such refund shall be paid by the State | ||||||
20 | Treasurer out
of the municipal automobile renting tax fund.
| ||||||
21 | The Department shall forthwith pay over to the State | ||||||
22 | Treasurer, ex-officio,
as trustee, all taxes, penalties and | ||||||
23 | interest collected hereunder. On or
before the 25th day of each | ||||||
24 | calendar month, the Department shall prepare
and certify to the | ||||||
25 | State Comptroller the disbursement of stated sums of
money to | ||||||
26 | named municipalities, the municipality in each instance to be |
| |||||||
| |||||||
1 | that
municipality from which the Department, during the second | ||||||
2 | preceding calendar
month, collected taxes hereunder from | ||||||
3 | persons whose Illinois address for
titling or registration | ||||||
4 | purposes is given as being in such municipality.
The amount to | ||||||
5 | be paid to each municipality shall be the amount (not including
| ||||||
6 | credit memoranda) collected hereunder during the second | ||||||
7 | preceding calendar
month by the Department, and not including | ||||||
8 | an amount equal to the amount
of refunds made during the second | ||||||
9 | preceding calendar month by the Department
on behalf of such | ||||||
10 | municipality, less 1.6% of such balance, which sum shall
be | ||||||
11 | retained by the State Treasurer to cover the costs incurred by | ||||||
12 | the Department
in administering and enforcing this Section as | ||||||
13 | provided herein. The Department
at the time of each monthly | ||||||
14 | disbursement to the municipalities shall prepare
and certify to | ||||||
15 | the State Comptroller the amount, so retained by the State
| ||||||
16 | Treasurer, to be paid into the General Revenue Fund of the | ||||||
17 | State Treasury.
Within 10 days after receipt, by the State | ||||||
18 | Comptroller, of the disbursement
certification to the | ||||||
19 | municipalities and the General Revenue Fund, provided
or in | ||||||
20 | this Section to be given to the State Comptroller by the | ||||||
21 | Department,
the State Comptroller shall cause the orders to be | ||||||
22 | drawn for the respective
amounts in accordance with the | ||||||
23 | directions contained in such certification.
| ||||||
24 | An ordinance or resolution imposing or discontinuing the | ||||||
25 | tax under this Section or effecting a change in the rate | ||||||
26 | thereof shall be adopted and a certified copy thereof filed |
| |||||||
| |||||||
1 | with the Department either: (i) on or before the first day of | ||||||
2 | April, in which case the Department shall proceed to administer | ||||||
3 | and enforce this Section as of the first day of July next | ||||||
4 | following the adoption or filing; or (ii) on or before the | ||||||
5 | first day of October, in which case the Department shall | ||||||
6 | proceed to administer and enforce this Section as of the first | ||||||
7 | day of January next following the adoption and filing. | ||||||
8 | An ordinance or resolution imposing a tax hereunder or | ||||||
9 | effecting a change
in the rate thereof shall be effective on | ||||||
10 | the first day of the second calendar
month next following | ||||||
11 | publication as provided in Section 1-2-4. The corporate
| ||||||
12 | authorities of any municipality which levies a tax authorized | ||||||
13 | by this Section
shall transmit to the Department of Revenue not | ||||||
14 | later than 5 days after
publication a certified copy of the | ||||||
15 | ordinance or resolution imposing such
tax whereupon the | ||||||
16 | Department of Revenue shall proceed to administer and
enforce | ||||||
17 | this Section on behalf of such municipality as of the effective
| ||||||
18 | date of the ordinance or resolution. Upon a change in rate of a | ||||||
19 | tax levied
hereunder, or upon the discontinuance of the tax, | ||||||
20 | the corporate authorities
of the municipality shall, on or not | ||||||
21 | later than 5 days after publication
of the ordinance or | ||||||
22 | resolution discontinuing the tax or effecting a change
in rate, | ||||||
23 | transmit to the Department of Revenue a certified copy of the | ||||||
24 | ordinance
or resolution effecting such change or | ||||||
25 | discontinuance.
| ||||||
26 | As used in this Section, "Municipal" and "Municipality" |
| |||||||
| |||||||
1 | means a city, village
or incorporated town, including an | ||||||
2 | incorporated town which has superseded
a civil township.
| ||||||
3 | This Section shall be known and may be cited as the | ||||||
4 | "Municipal Automobile
Renting Use Tax Act".
| ||||||
5 | (Source: P.A. 84-149.)
| ||||||
6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.".
|