Bill Text: IL HB0497 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the exemption for coal and aggregate exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment is exempt from the Acts' automatic sunset provisions. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 10-5)

Status: (Introduced) 2017-03-31 - Rule 19(a) / Re-referred to Rules Committee [HB0497 Detail]

Download: Illinois-2017-HB0497-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0497

Introduced , by Rep. Jerry Costello, II

SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the exemption for coal and aggregate exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment is exempt from the Acts' automatic sunset provisions. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB0497LRB100 00278 HLH 10282 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
6 (35 ILCS 105/3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11 (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25 (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

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1the car is subject to the Replacement Vehicle Tax.
2 (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12 (7) Farm chemicals.
13 (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17 (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20 (10) A motor vehicle that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23 (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

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1replacement parts for the machinery and equipment, including
2machinery and equipment purchased for lease, and including
3implements of husbandry defined in Section 1-130 of the
4Illinois Vehicle Code, farm machinery and agricultural
5chemical and fertilizer spreaders, and nurse wagons required to
6be registered under Section 3-809 of the Illinois Vehicle Code,
7but excluding other motor vehicles required to be registered
8under the Illinois Vehicle Code. Horticultural polyhouses or
9hoop houses used for propagating, growing, or overwintering
10plants shall be considered farm machinery and equipment under
11this item (11). Agricultural chemical tender tanks and dry
12boxes shall include units sold separately from a motor vehicle
13required to be licensed and units sold mounted on a motor
14vehicle required to be licensed if the selling price of the
15tender is separately stated.
16 Farm machinery and equipment shall include precision
17farming equipment that is installed or purchased to be
18installed on farm machinery and equipment including, but not
19limited to, tractors, harvesters, sprayers, planters, seeders,
20or spreaders. Precision farming equipment includes, but is not
21limited to, soil testing sensors, computers, monitors,
22software, global positioning and mapping systems, and other
23such equipment.
24 Farm machinery and equipment also includes computers,
25sensors, software, and related equipment used primarily in the
26computer-assisted operation of production agriculture

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6 (12) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the conduct
9of its business as an air common carrier, for a flight destined
10for or returning from a location or locations outside the
11United States without regard to previous or subsequent domestic
12stopovers.
13 Beginning July 1, 2013, fuel and petroleum products sold to
14or used by an air carrier, certified by the carrier to be used
15for consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports at
19least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23 (13) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages purchased at retail from a retailer, to the
26extent that the proceeds of the service charge are in fact

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1turned over as tips or as a substitute for tips to the
2employees who participate directly in preparing, serving,
3hosting or cleaning up the food or beverage function with
4respect to which the service charge is imposed.
5 (14) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of rigs,
7rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
8tubular goods, including casing and drill strings, (iii) pumps
9and pump-jack units, (iv) storage tanks and flow lines, (v) any
10individual replacement part for oil field exploration,
11drilling, and production equipment, and (vi) machinery and
12equipment purchased for lease; but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code.
14 (15) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including that
16manufactured on special order, certified by the purchaser to be
17used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19 (16) Coal and aggregate exploration, mining, off-highway
20hauling, processing, maintenance, and reclamation equipment,
21including replacement parts and equipment, and including
22equipment purchased for lease, but excluding motor vehicles
23required to be registered under the Illinois Vehicle Code. The
24changes made to this Section by Public Act 97-767 apply on and
25after July 1, 2003, but no claim for credit or refund is
26allowed on or after August 16, 2013 (the effective date of

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1Public Act 98-456) for such taxes paid during the period
2beginning July 1, 2003 and ending on August 16, 2013 (the
3effective date of Public Act 98-456). This item (16) is exempt
4from the provisions of Section 3-90.
5 (17) Until July 1, 2003, distillation machinery and
6equipment, sold as a unit or kit, assembled or installed by the
7retailer, certified by the user to be used only for the
8production of ethyl alcohol that will be used for consumption
9as motor fuel or as a component of motor fuel for the personal
10use of the user, and not subject to sale or resale.
11 (18) Manufacturing and assembling machinery and equipment
12used primarily in the process of manufacturing or assembling
13tangible personal property for wholesale or retail sale or
14lease, whether that sale or lease is made directly by the
15manufacturer or by some other person, whether the materials
16used in the process are owned by the manufacturer or some other
17person, or whether that sale or lease is made apart from or as
18an incident to the seller's engaging in the service occupation
19of producing machines, tools, dies, jigs, patterns, gauges, or
20other similar items of no commercial value on special order for
21a particular purchaser. The exemption provided by this
22paragraph (18) does not include machinery and equipment used in
23(i) the generation of electricity for wholesale or retail sale;
24(ii) the generation or treatment of natural or artificial gas
25for wholesale or retail sale that is delivered to customers
26through pipes, pipelines, or mains; or (iii) the treatment of

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1water for wholesale or retail sale that is delivered to
2customers through pipes, pipelines, or mains. The provisions of
3Public Act 98-583 are declaratory of existing law as to the
4meaning and scope of this exemption.
5 (19) Personal property delivered to a purchaser or
6purchaser's donee inside Illinois when the purchase order for
7that personal property was received by a florist located
8outside Illinois who has a florist located inside Illinois
9deliver the personal property.
10 (20) Semen used for artificial insemination of livestock
11for direct agricultural production.
12 (21) Horses, or interests in horses, registered with and
13meeting the requirements of any of the Arabian Horse Club
14Registry of America, Appaloosa Horse Club, American Quarter
15Horse Association, United States Trotting Association, or
16Jockey Club, as appropriate, used for purposes of breeding or
17racing for prizes. This item (21) is exempt from the provisions
18of Section 3-90, and the exemption provided for under this item
19(21) applies for all periods beginning May 30, 1995, but no
20claim for credit or refund is allowed on or after January 1,
212008 for such taxes paid during the period beginning May 30,
222000 and ending on January 1, 2008.
23 (22) Computers and communications equipment utilized for
24any hospital purpose and equipment used in the diagnosis,
25analysis, or treatment of hospital patients purchased by a
26lessor who leases the equipment, under a lease of one year or

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1longer executed or in effect at the time the lessor would
2otherwise be subject to the tax imposed by this Act, to a
3hospital that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. If the equipment is leased in a
6manner that does not qualify for this exemption or is used in
7any other non-exempt manner, the lessor shall be liable for the
8tax imposed under this Act or the Service Use Tax Act, as the
9case may be, based on the fair market value of the property at
10the time the non-qualifying use occurs. No lessor shall collect
11or attempt to collect an amount (however designated) that
12purports to reimburse that lessor for the tax imposed by this
13Act or the Service Use Tax Act, as the case may be, if the tax
14has not been paid by the lessor. If a lessor improperly
15collects any such amount from the lessee, the lessee shall have
16a legal right to claim a refund of that amount from the lessor.
17If, however, that amount is not refunded to the lessee for any
18reason, the lessor is liable to pay that amount to the
19Department.
20 (23) Personal property purchased by a lessor who leases the
21property, under a lease of one year or longer executed or in
22effect at the time the lessor would otherwise be subject to the
23tax imposed by this Act, to a governmental body that has been
24issued an active sales tax exemption identification number by
25the Department under Section 1g of the Retailers' Occupation
26Tax Act. If the property is leased in a manner that does not

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1qualify for this exemption or used in any other non-exempt
2manner, the lessor shall be liable for the tax imposed under
3this Act or the Service Use Tax Act, as the case may be, based
4on the fair market value of the property at the time the
5non-qualifying use occurs. No lessor shall collect or attempt
6to collect an amount (however designated) that purports to
7reimburse that lessor for the tax imposed by this Act or the
8Service Use Tax Act, as the case may be, if the tax has not been
9paid by the lessor. If a lessor improperly collects any such
10amount from the lessee, the lessee shall have a legal right to
11claim a refund of that amount from the lessor. If, however,
12that amount is not refunded to the lessee for any reason, the
13lessor is liable to pay that amount to the Department.
14 (24) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is donated for
17disaster relief to be used in a State or federally declared
18disaster area in Illinois or bordering Illinois by a
19manufacturer or retailer that is registered in this State to a
20corporation, society, association, foundation, or institution
21that has been issued a sales tax exemption identification
22number by the Department that assists victims of the disaster
23who reside within the declared disaster area.
24 (25) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is used in the

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1performance of infrastructure repairs in this State, including
2but not limited to municipal roads and streets, access roads,
3bridges, sidewalks, waste disposal systems, water and sewer
4line extensions, water distribution and purification
5facilities, storm water drainage and retention facilities, and
6sewage treatment facilities, resulting from a State or
7federally declared disaster in Illinois or bordering Illinois
8when such repairs are initiated on facilities located in the
9declared disaster area within 6 months after the disaster.
10 (26) Beginning July 1, 1999, game or game birds purchased
11at a "game breeding and hunting preserve area" as that term is
12used in the Wildlife Code. This paragraph is exempt from the
13provisions of Section 3-90.
14 (27) A motor vehicle, as that term is defined in Section
151-146 of the Illinois Vehicle Code, that is donated to a
16corporation, limited liability company, society, association,
17foundation, or institution that is determined by the Department
18to be organized and operated exclusively for educational
19purposes. For purposes of this exemption, "a corporation,
20limited liability company, society, association, foundation,
21or institution organized and operated exclusively for
22educational purposes" means all tax-supported public schools,
23private schools that offer systematic instruction in useful
24branches of learning by methods common to public schools and
25that compare favorably in their scope and intensity with the
26course of study presented in tax-supported schools, and

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1vocational or technical schools or institutes organized and
2operated exclusively to provide a course of study of not less
3than 6 weeks duration and designed to prepare individuals to
4follow a trade or to pursue a manual, technical, mechanical,
5industrial, business, or commercial occupation.
6 (28) Beginning January 1, 2000, personal property,
7including food, purchased through fundraising events for the
8benefit of a public or private elementary or secondary school,
9a group of those schools, or one or more school districts if
10the events are sponsored by an entity recognized by the school
11district that consists primarily of volunteers and includes
12parents and teachers of the school children. This paragraph
13does not apply to fundraising events (i) for the benefit of
14private home instruction or (ii) for which the fundraising
15entity purchases the personal property sold at the events from
16another individual or entity that sold the property for the
17purpose of resale by the fundraising entity and that profits
18from the sale to the fundraising entity. This paragraph is
19exempt from the provisions of Section 3-90.
20 (29) Beginning January 1, 2000 and through December 31,
212001, new or used automatic vending machines that prepare and
22serve hot food and beverages, including coffee, soup, and other
23items, and replacement parts for these machines. Beginning
24January 1, 2002 and through June 30, 2003, machines and parts
25for machines used in commercial, coin-operated amusement and
26vending business if a use or occupation tax is paid on the

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1gross receipts derived from the use of the commercial,
2coin-operated amusement and vending machines. This paragraph
3is exempt from the provisions of Section 3-90.
4 (30) Beginning January 1, 2001 and through June 30, 2016,
5food for human consumption that is to be consumed off the
6premises where it is sold (other than alcoholic beverages, soft
7drinks, and food that has been prepared for immediate
8consumption) and prescription and nonprescription medicines,
9drugs, medical appliances, and insulin, urine testing
10materials, syringes, and needles used by diabetics, for human
11use, when purchased for use by a person receiving medical
12assistance under Article V of the Illinois Public Aid Code who
13resides in a licensed long-term care facility, as defined in
14the Nursing Home Care Act, or in a licensed facility as defined
15in the ID/DD Community Care Act, the MC/DD Act, or the
16Specialized Mental Health Rehabilitation Act of 2013.
17 (31) Beginning on the effective date of this amendatory Act
18of the 92nd General Assembly, computers and communications
19equipment utilized for any hospital purpose and equipment used
20in the diagnosis, analysis, or treatment of hospital patients
21purchased by a lessor who leases the equipment, under a lease
22of one year or longer executed or in effect at the time the
23lessor would otherwise be subject to the tax imposed by this
24Act, to a hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of the
26Retailers' Occupation Tax Act. If the equipment is leased in a

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1manner that does not qualify for this exemption or is used in
2any other nonexempt manner, the lessor shall be liable for the
3tax imposed under this Act or the Service Use Tax Act, as the
4case may be, based on the fair market value of the property at
5the time the nonqualifying use occurs. No lessor shall collect
6or attempt to collect an amount (however designated) that
7purports to reimburse that lessor for the tax imposed by this
8Act or the Service Use Tax Act, as the case may be, if the tax
9has not been paid by the lessor. If a lessor improperly
10collects any such amount from the lessee, the lessee shall have
11a legal right to claim a refund of that amount from the lessor.
12If, however, that amount is not refunded to the lessee for any
13reason, the lessor is liable to pay that amount to the
14Department. This paragraph is exempt from the provisions of
15Section 3-90.
16 (32) Beginning on the effective date of this amendatory Act
17of the 92nd General Assembly, personal property purchased by a
18lessor who leases the property, under a lease of one year or
19longer executed or in effect at the time the lessor would
20otherwise be subject to the tax imposed by this Act, to a
21governmental body that has been issued an active sales tax
22exemption identification number by the Department under
23Section 1g of the Retailers' Occupation Tax Act. If the
24property is leased in a manner that does not qualify for this
25exemption or used in any other nonexempt manner, the lessor
26shall be liable for the tax imposed under this Act or the

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1Service Use Tax Act, as the case may be, based on the fair
2market value of the property at the time the nonqualifying use
3occurs. No lessor shall collect or attempt to collect an amount
4(however designated) that purports to reimburse that lessor for
5the tax imposed by this Act or the Service Use Tax Act, as the
6case may be, if the tax has not been paid by the lessor. If a
7lessor improperly collects any such amount from the lessee, the
8lessee shall have a legal right to claim a refund of that
9amount from the lessor. If, however, that amount is not
10refunded to the lessee for any reason, the lessor is liable to
11pay that amount to the Department. This paragraph is exempt
12from the provisions of Section 3-90.
13 (33) On and after July 1, 2003 and through June 30, 2004,
14the use in this State of motor vehicles of the second division
15with a gross vehicle weight in excess of 8,000 pounds and that
16are subject to the commercial distribution fee imposed under
17Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
181, 2004 and through June 30, 2005, the use in this State of
19motor vehicles of the second division: (i) with a gross vehicle
20weight rating in excess of 8,000 pounds; (ii) that are subject
21to the commercial distribution fee imposed under Section
223-815.1 of the Illinois Vehicle Code; and (iii) that are
23primarily used for commercial purposes. Through June 30, 2005,
24this exemption applies to repair and replacement parts added
25after the initial purchase of such a motor vehicle if that
26motor vehicle is used in a manner that would qualify for the

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1rolling stock exemption otherwise provided for in this Act. For
2purposes of this paragraph, the term "used for commercial
3purposes" means the transportation of persons or property in
4furtherance of any commercial or industrial enterprise,
5whether for-hire or not.
6 (34) Beginning January 1, 2008, tangible personal property
7used in the construction or maintenance of a community water
8supply, as defined under Section 3.145 of the Environmental
9Protection Act, that is operated by a not-for-profit
10corporation that holds a valid water supply permit issued under
11Title IV of the Environmental Protection Act. This paragraph is
12exempt from the provisions of Section 3-90.
13 (35) Beginning January 1, 2010, materials, parts,
14equipment, components, and furnishings incorporated into or
15upon an aircraft as part of the modification, refurbishment,
16completion, replacement, repair, or maintenance of the
17aircraft. This exemption includes consumable supplies used in
18the modification, refurbishment, completion, replacement,
19repair, and maintenance of aircraft, but excludes any
20materials, parts, equipment, components, and consumable
21supplies used in the modification, replacement, repair, and
22maintenance of aircraft engines or power plants, whether such
23engines or power plants are installed or uninstalled upon any
24such aircraft. "Consumable supplies" include, but are not
25limited to, adhesive, tape, sandpaper, general purpose
26lubricants, cleaning solution, latex gloves, and protective

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1films. This exemption applies only to the use of qualifying
2tangible personal property by persons who modify, refurbish,
3complete, repair, replace, or maintain aircraft and who (i)
4hold an Air Agency Certificate and are empowered to operate an
5approved repair station by the Federal Aviation
6Administration, (ii) have a Class IV Rating, and (iii) conduct
7operations in accordance with Part 145 of the Federal Aviation
8Regulations. The exemption does not include aircraft operated
9by a commercial air carrier providing scheduled passenger air
10service pursuant to authority issued under Part 121 or Part 129
11of the Federal Aviation Regulations. The changes made to this
12paragraph (35) by Public Act 98-534 are declarative of existing
13law.
14 (36) Tangible personal property purchased by a
15public-facilities corporation, as described in Section
1611-65-10 of the Illinois Municipal Code, for purposes of
17constructing or furnishing a municipal convention hall, but
18only if the legal title to the municipal convention hall is
19transferred to the municipality without any further
20consideration by or on behalf of the municipality at the time
21of the completion of the municipal convention hall or upon the
22retirement or redemption of any bonds or other debt instruments
23issued by the public-facilities corporation in connection with
24the development of the municipal convention hall. This
25exemption includes existing public-facilities corporations as
26provided in Section 11-65-25 of the Illinois Municipal Code.

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1This paragraph is exempt from the provisions of Section 3-90.
2 (37) Beginning January 1, 2017, menstrual pads, tampons,
3and menstrual cups.
4(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
598-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
61-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
77-29-15; 99-855, eff. 8-19-16.)
8 Section 10. The Service Use Tax Act is amended by changing
9Section 3-5 as follows:
10 (35 ILCS 110/3-5)
11 Sec. 3-5. Exemptions. Use of the following tangible
12personal property is exempt from the tax imposed by this Act:
13 (1) Personal property purchased from a corporation,
14society, association, foundation, institution, or
15organization, other than a limited liability company, that is
16organized and operated as a not-for-profit service enterprise
17for the benefit of persons 65 years of age or older if the
18personal property was not purchased by the enterprise for the
19purpose of resale by the enterprise.
20 (2) Personal property purchased by a non-profit Illinois
21county fair association for use in conducting, operating, or
22promoting the county fair.
23 (3) Personal property purchased by a not-for-profit arts or
24cultural organization that establishes, by proof required by

HB0497- 19 -LRB100 00278 HLH 10282 b
1the Department by rule, that it has received an exemption under
2Section 501(c)(3) of the Internal Revenue Code and that is
3organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after the effective date
10of this amendatory Act of the 92nd General Assembly, however,
11an entity otherwise eligible for this exemption shall not make
12tax-free purchases unless it has an active identification
13number issued by the Department.
14 (4) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18 (5) Until July 1, 2003 and beginning again on September 1,
192004 through August 30, 2014, graphic arts machinery and
20equipment, including repair and replacement parts, both new and
21used, and including that manufactured on special order or
22purchased for lease, certified by the purchaser to be used
23primarily for graphic arts production. Equipment includes
24chemicals or chemicals acting as catalysts but only if the
25chemicals or chemicals acting as catalysts effect a direct and
26immediate change upon a graphic arts product.

HB0497- 20 -LRB100 00278 HLH 10282 b
1 (6) Personal property purchased from a teacher-sponsored
2student organization affiliated with an elementary or
3secondary school located in Illinois.
4 (7) Farm machinery and equipment, both new and used,
5including that manufactured on special order, certified by the
6purchaser to be used primarily for production agriculture or
7State or federal agricultural programs, including individual
8replacement parts for the machinery and equipment, including
9machinery and equipment purchased for lease, and including
10implements of husbandry defined in Section 1-130 of the
11Illinois Vehicle Code, farm machinery and agricultural
12chemical and fertilizer spreaders, and nurse wagons required to
13be registered under Section 3-809 of the Illinois Vehicle Code,
14but excluding other motor vehicles required to be registered
15under the Illinois Vehicle Code. Horticultural polyhouses or
16hoop houses used for propagating, growing, or overwintering
17plants shall be considered farm machinery and equipment under
18this item (7). Agricultural chemical tender tanks and dry boxes
19shall include units sold separately from a motor vehicle
20required to be licensed and units sold mounted on a motor
21vehicle required to be licensed if the selling price of the
22tender is separately stated.
23 Farm machinery and equipment shall include precision
24farming equipment that is installed or purchased to be
25installed on farm machinery and equipment including, but not
26limited to, tractors, harvesters, sprayers, planters, seeders,

HB0497- 21 -LRB100 00278 HLH 10282 b
1or spreaders. Precision farming equipment includes, but is not
2limited to, soil testing sensors, computers, monitors,
3software, global positioning and mapping systems, and other
4such equipment.
5 Farm machinery and equipment also includes computers,
6sensors, software, and related equipment used primarily in the
7computer-assisted operation of production agriculture
8facilities, equipment, and activities such as, but not limited
9to, the collection, monitoring, and correlation of animal and
10crop data for the purpose of formulating animal diets and
11agricultural chemicals. This item (7) is exempt from the
12provisions of Section 3-75.
13 (8) Until June 30, 2013, fuel and petroleum products sold
14to or used by an air common carrier, certified by the carrier
15to be used for consumption, shipment, or storage in the conduct
16of its business as an air common carrier, for a flight destined
17for or returning from a location or locations outside the
18United States without regard to previous or subsequent domestic
19stopovers.
20 Beginning July 1, 2013, fuel and petroleum products sold to
21or used by an air carrier, certified by the carrier to be used
22for consumption, shipment, or storage in the conduct of its
23business as an air common carrier, for a flight that (i) is
24engaged in foreign trade or is engaged in trade between the
25United States and any of its possessions and (ii) transports at
26least one individual or package for hire from the city of

HB0497- 22 -LRB100 00278 HLH 10282 b
1origination to the city of final destination on the same
2aircraft, without regard to a change in the flight number of
3that aircraft.
4 (9) Proceeds of mandatory service charges separately
5stated on customers' bills for the purchase and consumption of
6food and beverages acquired as an incident to the purchase of a
7service from a serviceman, to the extent that the proceeds of
8the service charge are in fact turned over as tips or as a
9substitute for tips to the employees who participate directly
10in preparing, serving, hosting or cleaning up the food or
11beverage function with respect to which the service charge is
12imposed.
13 (10) Until July 1, 2003, oil field exploration, drilling,
14and production equipment, including (i) rigs and parts of rigs,
15rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
16tubular goods, including casing and drill strings, (iii) pumps
17and pump-jack units, (iv) storage tanks and flow lines, (v) any
18individual replacement part for oil field exploration,
19drilling, and production equipment, and (vi) machinery and
20equipment purchased for lease; but excluding motor vehicles
21required to be registered under the Illinois Vehicle Code.
22 (11) Proceeds from the sale of photoprocessing machinery
23and equipment, including repair and replacement parts, both new
24and used, including that manufactured on special order,
25certified by the purchaser to be used primarily for
26photoprocessing, and including photoprocessing machinery and

HB0497- 23 -LRB100 00278 HLH 10282 b
1equipment purchased for lease.
2 (12) Coal and aggregate exploration, mining, off-highway
3hauling, processing, maintenance, and reclamation equipment,
4including replacement parts and equipment, and including
5equipment purchased for lease, but excluding motor vehicles
6required to be registered under the Illinois Vehicle Code. The
7changes made to this Section by Public Act 97-767 apply on and
8after July 1, 2003, but no claim for credit or refund is
9allowed on or after August 16, 2013 (the effective date of
10Public Act 98-456) for such taxes paid during the period
11beginning July 1, 2003 and ending on August 16, 2013 (the
12effective date of Public Act 98-456). This item (12) is exempt
13from the provisions of Section 3-75.
14 (13) Semen used for artificial insemination of livestock
15for direct agricultural production.
16 (14) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (14) is exempt from the provisions
22of Section 3-75, and the exemption provided for under this item
23(14) applies for all periods beginning May 30, 1995, but no
24claim for credit or refund is allowed on or after the effective
25date of this amendatory Act of the 95th General Assembly for
26such taxes paid during the period beginning May 30, 2000 and

HB0497- 24 -LRB100 00278 HLH 10282 b
1ending on the effective date of this amendatory Act of the 95th
2General Assembly.
3 (15) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients purchased by a
6lessor who leases the equipment, under a lease of one year or
7longer executed or in effect at the time the lessor would
8otherwise be subject to the tax imposed by this Act, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. If the equipment is leased in a
12manner that does not qualify for this exemption or is used in
13any other non-exempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Use Tax Act, as the case may
15be, based on the fair market value of the property at the time
16the non-qualifying use occurs. No lessor shall collect or
17attempt to collect an amount (however designated) that purports
18to reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid by
20the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that amount
23is not refunded to the lessee for any reason, the lessor is
24liable to pay that amount to the Department.
25 (16) Personal property purchased by a lessor who leases the
26property, under a lease of one year or longer executed or in

HB0497- 25 -LRB100 00278 HLH 10282 b
1effect at the time the lessor would otherwise be subject to the
2tax imposed by this Act, to a governmental body that has been
3issued an active tax exemption identification number by the
4Department under Section 1g of the Retailers' Occupation Tax
5Act. If the property is leased in a manner that does not
6qualify for this exemption or is used in any other non-exempt
7manner, the lessor shall be liable for the tax imposed under
8this Act or the Use Tax Act, as the case may be, based on the
9fair market value of the property at the time the
10non-qualifying use occurs. No lessor shall collect or attempt
11to collect an amount (however designated) that purports to
12reimburse that lessor for the tax imposed by this Act or the
13Use Tax Act, as the case may be, if the tax has not been paid by
14the lessor. If a lessor improperly collects any such amount
15from the lessee, the lessee shall have a legal right to claim a
16refund of that amount from the lessor. If, however, that amount
17is not refunded to the lessee for any reason, the lessor is
18liable to pay that amount to the Department.
19 (17) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated for
22disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

HB0497- 26 -LRB100 00278 HLH 10282 b
1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3 (18) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in the
6performance of infrastructure repairs in this State, including
7but not limited to municipal roads and streets, access roads,
8bridges, sidewalks, waste disposal systems, water and sewer
9line extensions, water distribution and purification
10facilities, storm water drainage and retention facilities, and
11sewage treatment facilities, resulting from a State or
12federally declared disaster in Illinois or bordering Illinois
13when such repairs are initiated on facilities located in the
14declared disaster area within 6 months after the disaster.
15 (19) Beginning July 1, 1999, game or game birds purchased
16at a "game breeding and hunting preserve area" as that term is
17used in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-75.
19 (20) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the Department
23to be organized and operated exclusively for educational
24purposes. For purposes of this exemption, "a corporation,
25limited liability company, society, association, foundation,
26or institution organized and operated exclusively for

HB0497- 27 -LRB100 00278 HLH 10282 b
1educational purposes" means all tax-supported public schools,
2private schools that offer systematic instruction in useful
3branches of learning by methods common to public schools and
4that compare favorably in their scope and intensity with the
5course of study presented in tax-supported schools, and
6vocational or technical schools or institutes organized and
7operated exclusively to provide a course of study of not less
8than 6 weeks duration and designed to prepare individuals to
9follow a trade or to pursue a manual, technical, mechanical,
10industrial, business, or commercial occupation.
11 (21) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-75.
25 (22) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

HB0497- 28 -LRB100 00278 HLH 10282 b
1serve hot food and beverages, including coffee, soup, and other
2items, and replacement parts for these machines. Beginning
3January 1, 2002 and through June 30, 2003, machines and parts
4for machines used in commercial, coin-operated amusement and
5vending business if a use or occupation tax is paid on the
6gross receipts derived from the use of the commercial,
7coin-operated amusement and vending machines. This paragraph
8is exempt from the provisions of Section 3-75.
9 (23) Beginning August 23, 2001 and through June 30, 2016,
10food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages, soft
12drinks, and food that has been prepared for immediate
13consumption) and prescription and nonprescription medicines,
14drugs, medical appliances, and insulin, urine testing
15materials, syringes, and needles used by diabetics, for human
16use, when purchased for use by a person receiving medical
17assistance under Article V of the Illinois Public Aid Code who
18resides in a licensed long-term care facility, as defined in
19the Nursing Home Care Act, or in a licensed facility as defined
20in the ID/DD Community Care Act, the MC/DD Act, or the
21Specialized Mental Health Rehabilitation Act of 2013.
22 (24) Beginning on the effective date of this amendatory Act
23of the 92nd General Assembly, computers and communications
24equipment utilized for any hospital purpose and equipment used
25in the diagnosis, analysis, or treatment of hospital patients
26purchased by a lessor who leases the equipment, under a lease

HB0497- 29 -LRB100 00278 HLH 10282 b
1of one year or longer executed or in effect at the time the
2lessor would otherwise be subject to the tax imposed by this
3Act, to a hospital that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. If the equipment is leased in a
6manner that does not qualify for this exemption or is used in
7any other nonexempt manner, the lessor shall be liable for the
8tax imposed under this Act or the Use Tax Act, as the case may
9be, based on the fair market value of the property at the time
10the nonqualifying use occurs. No lessor shall collect or
11attempt to collect an amount (however designated) that purports
12to reimburse that lessor for the tax imposed by this Act or the
13Use Tax Act, as the case may be, if the tax has not been paid by
14the lessor. If a lessor improperly collects any such amount
15from the lessee, the lessee shall have a legal right to claim a
16refund of that amount from the lessor. If, however, that amount
17is not refunded to the lessee for any reason, the lessor is
18liable to pay that amount to the Department. This paragraph is
19exempt from the provisions of Section 3-75.
20 (25) Beginning on the effective date of this amendatory Act
21of the 92nd General Assembly, personal property purchased by a
22lessor who leases the property, under a lease of one year or
23longer executed or in effect at the time the lessor would
24otherwise be subject to the tax imposed by this Act, to a
25governmental body that has been issued an active tax exemption
26identification number by the Department under Section 1g of the

HB0497- 30 -LRB100 00278 HLH 10282 b
1Retailers' Occupation Tax Act. If the property is leased in a
2manner that does not qualify for this exemption or is used in
3any other nonexempt manner, the lessor shall be liable for the
4tax imposed under this Act or the Use Tax Act, as the case may
5be, based on the fair market value of the property at the time
6the nonqualifying use occurs. No lessor shall collect or
7attempt to collect an amount (however designated) that purports
8to reimburse that lessor for the tax imposed by this Act or the
9Use Tax Act, as the case may be, if the tax has not been paid by
10the lessor. If a lessor improperly collects any such amount
11from the lessee, the lessee shall have a legal right to claim a
12refund of that amount from the lessor. If, however, that amount
13is not refunded to the lessee for any reason, the lessor is
14liable to pay that amount to the Department. This paragraph is
15exempt from the provisions of Section 3-75.
16 (26) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued under
21Title IV of the Environmental Protection Act. This paragraph is
22exempt from the provisions of Section 3-75.
23 (27) Beginning January 1, 2010, materials, parts,
24equipment, components, and furnishings incorporated into or
25upon an aircraft as part of the modification, refurbishment,
26completion, replacement, repair, or maintenance of the

HB0497- 31 -LRB100 00278 HLH 10282 b
1aircraft. This exemption includes consumable supplies used in
2the modification, refurbishment, completion, replacement,
3repair, and maintenance of aircraft, but excludes any
4materials, parts, equipment, components, and consumable
5supplies used in the modification, replacement, repair, and
6maintenance of aircraft engines or power plants, whether such
7engines or power plants are installed or uninstalled upon any
8such aircraft. "Consumable supplies" include, but are not
9limited to, adhesive, tape, sandpaper, general purpose
10lubricants, cleaning solution, latex gloves, and protective
11films. This exemption applies only to the use of qualifying
12tangible personal property transferred incident to the
13modification, refurbishment, completion, replacement, repair,
14or maintenance of aircraft by persons who (i) hold an Air
15Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations. The changes made to this
23paragraph (27) by Public Act 98-534 are declarative of existing
24law.
25 (28) Tangible personal property purchased by a
26public-facilities corporation, as described in Section

HB0497- 32 -LRB100 00278 HLH 10282 b
111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt instruments
8issued by the public-facilities corporation in connection with
9the development of the municipal convention hall. This
10exemption includes existing public-facilities corporations as
11provided in Section 11-65-25 of the Illinois Municipal Code.
12This paragraph is exempt from the provisions of Section 3-75.
13 (29) Beginning January 1, 2017, menstrual pads, tampons,
14and menstrual cups.
15(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1698-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
177-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
18 Section 15. The Service Occupation Tax Act is amended by
19changing Section 3-5 as follows:
20 (35 ILCS 115/3-5)
21 Sec. 3-5. Exemptions. The following tangible personal
22property is exempt from the tax imposed by this Act:
23 (1) Personal property sold by a corporation, society,
24association, foundation, institution, or organization, other

HB0497- 33 -LRB100 00278 HLH 10282 b
1than a limited liability company, that is organized and
2operated as a not-for-profit service enterprise for the benefit
3of persons 65 years of age or older if the personal property
4was not purchased by the enterprise for the purpose of resale
5by the enterprise.
6 (2) Personal property purchased by a not-for-profit
7Illinois county fair association for use in conducting,
8operating, or promoting the county fair.
9 (3) Personal property purchased by any not-for-profit arts
10or cultural organization that establishes, by proof required by
11the Department by rule, that it has received an exemption under
12Section 501(c)(3) of the Internal Revenue Code and that is
13organized and operated primarily for the presentation or
14support of arts or cultural programming, activities, or
15services. These organizations include, but are not limited to,
16music and dramatic arts organizations such as symphony
17orchestras and theatrical groups, arts and cultural service
18organizations, local arts councils, visual arts organizations,
19and media arts organizations. On and after the effective date
20of this amendatory Act of the 92nd General Assembly, however,
21an entity otherwise eligible for this exemption shall not make
22tax-free purchases unless it has an active identification
23number issued by the Department.
24 (4) Legal tender, currency, medallions, or gold or silver
25coinage issued by the State of Illinois, the government of the
26United States of America, or the government of any foreign

HB0497- 34 -LRB100 00278 HLH 10282 b
1country, and bullion.
2 (5) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order or
6purchased for lease, certified by the purchaser to be used
7primarily for graphic arts production. Equipment includes
8chemicals or chemicals acting as catalysts but only if the
9chemicals or chemicals acting as catalysts effect a direct and
10immediate change upon a graphic arts product.
11 (6) Personal property sold by a teacher-sponsored student
12organization affiliated with an elementary or secondary school
13located in Illinois.
14 (7) Farm machinery and equipment, both new and used,
15including that manufactured on special order, certified by the
16purchaser to be used primarily for production agriculture or
17State or federal agricultural programs, including individual
18replacement parts for the machinery and equipment, including
19machinery and equipment purchased for lease, and including
20implements of husbandry defined in Section 1-130 of the
21Illinois Vehicle Code, farm machinery and agricultural
22chemical and fertilizer spreaders, and nurse wagons required to
23be registered under Section 3-809 of the Illinois Vehicle Code,
24but excluding other motor vehicles required to be registered
25under the Illinois Vehicle Code. Horticultural polyhouses or
26hoop houses used for propagating, growing, or overwintering

HB0497- 35 -LRB100 00278 HLH 10282 b
1plants shall be considered farm machinery and equipment under
2this item (7). Agricultural chemical tender tanks and dry boxes
3shall include units sold separately from a motor vehicle
4required to be licensed and units sold mounted on a motor
5vehicle required to be licensed if the selling price of the
6tender is separately stated.
7 Farm machinery and equipment shall include precision
8farming equipment that is installed or purchased to be
9installed on farm machinery and equipment including, but not
10limited to, tractors, harvesters, sprayers, planters, seeders,
11or spreaders. Precision farming equipment includes, but is not
12limited to, soil testing sensors, computers, monitors,
13software, global positioning and mapping systems, and other
14such equipment.
15 Farm machinery and equipment also includes computers,
16sensors, software, and related equipment used primarily in the
17computer-assisted operation of production agriculture
18facilities, equipment, and activities such as, but not limited
19to, the collection, monitoring, and correlation of animal and
20crop data for the purpose of formulating animal diets and
21agricultural chemicals. This item (7) is exempt from the
22provisions of Section 3-55.
23 (8) Until June 30, 2013, fuel and petroleum products sold
24to or used by an air common carrier, certified by the carrier
25to be used for consumption, shipment, or storage in the conduct
26of its business as an air common carrier, for a flight destined

HB0497- 36 -LRB100 00278 HLH 10282 b
1for or returning from a location or locations outside the
2United States without regard to previous or subsequent domestic
3stopovers.
4 Beginning July 1, 2013, fuel and petroleum products sold to
5or used by an air carrier, certified by the carrier to be used
6for consumption, shipment, or storage in the conduct of its
7business as an air common carrier, for a flight that (i) is
8engaged in foreign trade or is engaged in trade between the
9United States and any of its possessions and (ii) transports at
10least one individual or package for hire from the city of
11origination to the city of final destination on the same
12aircraft, without regard to a change in the flight number of
13that aircraft.
14 (9) Proceeds of mandatory service charges separately
15stated on customers' bills for the purchase and consumption of
16food and beverages, to the extent that the proceeds of the
17service charge are in fact turned over as tips or as a
18substitute for tips to the employees who participate directly
19in preparing, serving, hosting or cleaning up the food or
20beverage function with respect to which the service charge is
21imposed.
22 (10) Until July 1, 2003, oil field exploration, drilling,
23and production equipment, including (i) rigs and parts of rigs,
24rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
25tubular goods, including casing and drill strings, (iii) pumps
26and pump-jack units, (iv) storage tanks and flow lines, (v) any

HB0497- 37 -LRB100 00278 HLH 10282 b
1individual replacement part for oil field exploration,
2drilling, and production equipment, and (vi) machinery and
3equipment purchased for lease; but excluding motor vehicles
4required to be registered under the Illinois Vehicle Code.
5 (11) Photoprocessing machinery and equipment, including
6repair and replacement parts, both new and used, including that
7manufactured on special order, certified by the purchaser to be
8used primarily for photoprocessing, and including
9photoprocessing machinery and equipment purchased for lease.
10 (12) Coal and aggregate exploration, mining, off-highway
11hauling, processing, maintenance, and reclamation equipment,
12including replacement parts and equipment, and including
13equipment purchased for lease, but excluding motor vehicles
14required to be registered under the Illinois Vehicle Code. The
15changes made to this Section by Public Act 97-767 apply on and
16after July 1, 2003, but no claim for credit or refund is
17allowed on or after August 16, 2013 (the effective date of
18Public Act 98-456) for such taxes paid during the period
19beginning July 1, 2003 and ending on August 16, 2013 (the
20effective date of Public Act 98-456). This item (12) is exempt
21from the provisions of Section 3-55.
22 (13) Beginning January 1, 1992 and through June 30, 2016,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks and food that has been prepared for immediate
26consumption) and prescription and non-prescription medicines,

HB0497- 38 -LRB100 00278 HLH 10282 b
1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or in a licensed facility as defined
7in the ID/DD Community Care Act, the MC/DD Act, or the
8Specialized Mental Health Rehabilitation Act of 2013.
9 (14) Semen used for artificial insemination of livestock
10for direct agricultural production.
11 (15) Horses, or interests in horses, registered with and
12meeting the requirements of any of the Arabian Horse Club
13Registry of America, Appaloosa Horse Club, American Quarter
14Horse Association, United States Trotting Association, or
15Jockey Club, as appropriate, used for purposes of breeding or
16racing for prizes. This item (15) is exempt from the provisions
17of Section 3-55, and the exemption provided for under this item
18(15) applies for all periods beginning May 30, 1995, but no
19claim for credit or refund is allowed on or after January 1,
202008 (the effective date of Public Act 95-88) for such taxes
21paid during the period beginning May 30, 2000 and ending on
22January 1, 2008 (the effective date of Public Act 95-88).
23 (16) Computers and communications equipment utilized for
24any hospital purpose and equipment used in the diagnosis,
25analysis, or treatment of hospital patients sold to a lessor
26who leases the equipment, under a lease of one year or longer

HB0497- 39 -LRB100 00278 HLH 10282 b
1executed or in effect at the time of the purchase, to a
2hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of the
4Retailers' Occupation Tax Act.
5 (17) Personal property sold to a lessor who leases the
6property, under a lease of one year or longer executed or in
7effect at the time of the purchase, to a governmental body that
8has been issued an active tax exemption identification number
9by the Department under Section 1g of the Retailers' Occupation
10Tax Act.
11 (18) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is donated for
14disaster relief to be used in a State or federally declared
15disaster area in Illinois or bordering Illinois by a
16manufacturer or retailer that is registered in this State to a
17corporation, society, association, foundation, or institution
18that has been issued a sales tax exemption identification
19number by the Department that assists victims of the disaster
20who reside within the declared disaster area.
21 (19) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is used in the
24performance of infrastructure repairs in this State, including
25but not limited to municipal roads and streets, access roads,
26bridges, sidewalks, waste disposal systems, water and sewer

HB0497- 40 -LRB100 00278 HLH 10282 b
1line extensions, water distribution and purification
2facilities, storm water drainage and retention facilities, and
3sewage treatment facilities, resulting from a State or
4federally declared disaster in Illinois or bordering Illinois
5when such repairs are initiated on facilities located in the
6declared disaster area within 6 months after the disaster.
7 (20) Beginning July 1, 1999, game or game birds sold at a
8"game breeding and hunting preserve area" as that term is used
9in the Wildlife Code. This paragraph is exempt from the
10provisions of Section 3-55.
11 (21) A motor vehicle, as that term is defined in Section
121-146 of the Illinois Vehicle Code, that is donated to a
13corporation, limited liability company, society, association,
14foundation, or institution that is determined by the Department
15to be organized and operated exclusively for educational
16purposes. For purposes of this exemption, "a corporation,
17limited liability company, society, association, foundation,
18or institution organized and operated exclusively for
19educational purposes" means all tax-supported public schools,
20private schools that offer systematic instruction in useful
21branches of learning by methods common to public schools and
22that compare favorably in their scope and intensity with the
23course of study presented in tax-supported schools, and
24vocational or technical schools or institutes organized and
25operated exclusively to provide a course of study of not less
26than 6 weeks duration and designed to prepare individuals to

HB0497- 41 -LRB100 00278 HLH 10282 b
1follow a trade or to pursue a manual, technical, mechanical,
2industrial, business, or commercial occupation.
3 (22) Beginning January 1, 2000, personal property,
4including food, purchased through fundraising events for the
5benefit of a public or private elementary or secondary school,
6a group of those schools, or one or more school districts if
7the events are sponsored by an entity recognized by the school
8district that consists primarily of volunteers and includes
9parents and teachers of the school children. This paragraph
10does not apply to fundraising events (i) for the benefit of
11private home instruction or (ii) for which the fundraising
12entity purchases the personal property sold at the events from
13another individual or entity that sold the property for the
14purpose of resale by the fundraising entity and that profits
15from the sale to the fundraising entity. This paragraph is
16exempt from the provisions of Section 3-55.
17 (23) Beginning January 1, 2000 and through December 31,
182001, new or used automatic vending machines that prepare and
19serve hot food and beverages, including coffee, soup, and other
20items, and replacement parts for these machines. Beginning
21January 1, 2002 and through June 30, 2003, machines and parts
22for machines used in commercial, coin-operated amusement and
23vending business if a use or occupation tax is paid on the
24gross receipts derived from the use of the commercial,
25coin-operated amusement and vending machines. This paragraph
26is exempt from the provisions of Section 3-55.

HB0497- 42 -LRB100 00278 HLH 10282 b
1 (24) Beginning on the effective date of this amendatory Act
2of the 92nd General Assembly, computers and communications
3equipment utilized for any hospital purpose and equipment used
4in the diagnosis, analysis, or treatment of hospital patients
5sold to a lessor who leases the equipment, under a lease of one
6year or longer executed or in effect at the time of the
7purchase, to a hospital that has been issued an active tax
8exemption identification number by the Department under
9Section 1g of the Retailers' Occupation Tax Act. This paragraph
10is exempt from the provisions of Section 3-55.
11 (25) Beginning on the effective date of this amendatory Act
12of the 92nd General Assembly, personal property sold to a
13lessor who leases the property, under a lease of one year or
14longer executed or in effect at the time of the purchase, to a
15governmental body that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. This paragraph is exempt from
18the provisions of Section 3-55.
19 (26) Beginning on January 1, 2002 and through June 30,
202016, tangible personal property purchased from an Illinois
21retailer by a taxpayer engaged in centralized purchasing
22activities in Illinois who will, upon receipt of the property
23in Illinois, temporarily store the property in Illinois (i) for
24the purpose of subsequently transporting it outside this State
25for use or consumption thereafter solely outside this State or
26(ii) for the purpose of being processed, fabricated, or

HB0497- 43 -LRB100 00278 HLH 10282 b
1manufactured into, attached to, or incorporated into other
2tangible personal property to be transported outside this State
3and thereafter used or consumed solely outside this State. The
4Director of Revenue shall, pursuant to rules adopted in
5accordance with the Illinois Administrative Procedure Act,
6issue a permit to any taxpayer in good standing with the
7Department who is eligible for the exemption under this
8paragraph (26). The permit issued under this paragraph (26)
9shall authorize the holder, to the extent and in the manner
10specified in the rules adopted under this Act, to purchase
11tangible personal property from a retailer exempt from the
12taxes imposed by this Act. Taxpayers shall maintain all
13necessary books and records to substantiate the use and
14consumption of all such tangible personal property outside of
15the State of Illinois.
16 (27) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued under
21Title IV of the Environmental Protection Act. This paragraph is
22exempt from the provisions of Section 3-55.
23 (28) Tangible personal property sold to a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 3-55.
11 (29) Beginning January 1, 2010, materials, parts,
12equipment, components, and furnishings incorporated into or
13upon an aircraft as part of the modification, refurbishment,
14completion, replacement, repair, or maintenance of the
15aircraft. This exemption includes consumable supplies used in
16the modification, refurbishment, completion, replacement,
17repair, and maintenance of aircraft, but excludes any
18materials, parts, equipment, components, and consumable
19supplies used in the modification, replacement, repair, and
20maintenance of aircraft engines or power plants, whether such
21engines or power plants are installed or uninstalled upon any
22such aircraft. "Consumable supplies" include, but are not
23limited to, adhesive, tape, sandpaper, general purpose
24lubricants, cleaning solution, latex gloves, and protective
25films. This exemption applies only to the transfer of
26qualifying tangible personal property incident to the

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1modification, refurbishment, completion, replacement, repair,
2or maintenance of an aircraft by persons who (i) hold an Air
3Agency Certificate and are empowered to operate an approved
4repair station by the Federal Aviation Administration, (ii)
5have a Class IV Rating, and (iii) conduct operations in
6accordance with Part 145 of the Federal Aviation Regulations.
7The exemption does not include aircraft operated by a
8commercial air carrier providing scheduled passenger air
9service pursuant to authority issued under Part 121 or Part 129
10of the Federal Aviation Regulations. The changes made to this
11paragraph (29) by Public Act 98-534 are declarative of existing
12law.
13 (30) Beginning January 1, 2017, menstrual pads, tampons,
14and menstrual cups.
15(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1698-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
177-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
18 Section 20. The Retailers' Occupation Tax Act is amended by
19changing Section 2-5 as follows:
20 (35 ILCS 120/2-5)
21 Sec. 2-5. Exemptions. Gross receipts from proceeds from the
22sale of the following tangible personal property are exempt
23from the tax imposed by this Act:
24 (1) Farm chemicals.

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1 (2) Farm machinery and equipment, both new and used,
2including that manufactured on special order, certified by the
3purchaser to be used primarily for production agriculture or
4State or federal agricultural programs, including individual
5replacement parts for the machinery and equipment, including
6machinery and equipment purchased for lease, and including
7implements of husbandry defined in Section 1-130 of the
8Illinois Vehicle Code, farm machinery and agricultural
9chemical and fertilizer spreaders, and nurse wagons required to
10be registered under Section 3-809 of the Illinois Vehicle Code,
11but excluding other motor vehicles required to be registered
12under the Illinois Vehicle Code. Horticultural polyhouses or
13hoop houses used for propagating, growing, or overwintering
14plants shall be considered farm machinery and equipment under
15this item (2). Agricultural chemical tender tanks and dry boxes
16shall include units sold separately from a motor vehicle
17required to be licensed and units sold mounted on a motor
18vehicle required to be licensed, if the selling price of the
19tender is separately stated.
20 Farm machinery and equipment shall include precision
21farming equipment that is installed or purchased to be
22installed on farm machinery and equipment including, but not
23limited to, tractors, harvesters, sprayers, planters, seeders,
24or spreaders. Precision farming equipment includes, but is not
25limited to, soil testing sensors, computers, monitors,
26software, global positioning and mapping systems, and other

HB0497- 47 -LRB100 00278 HLH 10282 b
1such equipment.
2 Farm machinery and equipment also includes computers,
3sensors, software, and related equipment used primarily in the
4computer-assisted operation of production agriculture
5facilities, equipment, and activities such as, but not limited
6to, the collection, monitoring, and correlation of animal and
7crop data for the purpose of formulating animal diets and
8agricultural chemicals. This item (2) is exempt from the
9provisions of Section 2-70.
10 (3) Until July 1, 2003, distillation machinery and
11equipment, sold as a unit or kit, assembled or installed by the
12retailer, certified by the user to be used only for the
13production of ethyl alcohol that will be used for consumption
14as motor fuel or as a component of motor fuel for the personal
15use of the user, and not subject to sale or resale.
16 (4) Until July 1, 2003 and beginning again September 1,
172004 through August 30, 2014, graphic arts machinery and
18equipment, including repair and replacement parts, both new and
19used, and including that manufactured on special order or
20purchased for lease, certified by the purchaser to be used
21primarily for graphic arts production. Equipment includes
22chemicals or chemicals acting as catalysts but only if the
23chemicals or chemicals acting as catalysts effect a direct and
24immediate change upon a graphic arts product.
25 (5) A motor vehicle that is used for automobile renting, as
26defined in the Automobile Renting Occupation and Use Tax Act.

HB0497- 48 -LRB100 00278 HLH 10282 b
1This paragraph is exempt from the provisions of Section 2-70.
2 (6) Personal property sold by a teacher-sponsored student
3organization affiliated with an elementary or secondary school
4located in Illinois.
5 (7) Until July 1, 2003, proceeds of that portion of the
6selling price of a passenger car the sale of which is subject
7to the Replacement Vehicle Tax.
8 (8) Personal property sold to an Illinois county fair
9association for use in conducting, operating, or promoting the
10county fair.
11 (9) Personal property sold to a not-for-profit arts or
12cultural organization that establishes, by proof required by
13the Department by rule, that it has received an exemption under
14Section 501(c)(3) of the Internal Revenue Code and that is
15organized and operated primarily for the presentation or
16support of arts or cultural programming, activities, or
17services. These organizations include, but are not limited to,
18music and dramatic arts organizations such as symphony
19orchestras and theatrical groups, arts and cultural service
20organizations, local arts councils, visual arts organizations,
21and media arts organizations. On and after the effective date
22of this amendatory Act of the 92nd General Assembly, however,
23an entity otherwise eligible for this exemption shall not make
24tax-free purchases unless it has an active identification
25number issued by the Department.
26 (10) Personal property sold by a corporation, society,

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1association, foundation, institution, or organization, other
2than a limited liability company, that is organized and
3operated as a not-for-profit service enterprise for the benefit
4of persons 65 years of age or older if the personal property
5was not purchased by the enterprise for the purpose of resale
6by the enterprise.
7 (11) Personal property sold to a governmental body, to a
8corporation, society, association, foundation, or institution
9organized and operated exclusively for charitable, religious,
10or educational purposes, or to a not-for-profit corporation,
11society, association, foundation, institution, or organization
12that has no compensated officers or employees and that is
13organized and operated primarily for the recreation of persons
1455 years of age or older. A limited liability company may
15qualify for the exemption under this paragraph only if the
16limited liability company is organized and operated
17exclusively for educational purposes. On and after July 1,
181987, however, no entity otherwise eligible for this exemption
19shall make tax-free purchases unless it has an active
20identification number issued by the Department.
21 (12) Tangible personal property sold to interstate
22carriers for hire for use as rolling stock moving in interstate
23commerce or to lessors under leases of one year or longer
24executed or in effect at the time of purchase by interstate
25carriers for hire for use as rolling stock moving in interstate
26commerce and equipment operated by a telecommunications

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1provider, licensed as a common carrier by the Federal
2Communications Commission, which is permanently installed in
3or affixed to aircraft moving in interstate commerce.
4 (12-5) On and after July 1, 2003 and through June 30, 2004,
5motor vehicles of the second division with a gross vehicle
6weight in excess of 8,000 pounds that are subject to the
7commercial distribution fee imposed under Section 3-815.1 of
8the Illinois Vehicle Code. Beginning on July 1, 2004 and
9through June 30, 2005, the use in this State of motor vehicles
10of the second division: (i) with a gross vehicle weight rating
11in excess of 8,000 pounds; (ii) that are subject to the
12commercial distribution fee imposed under Section 3-815.1 of
13the Illinois Vehicle Code; and (iii) that are primarily used
14for commercial purposes. Through June 30, 2005, this exemption
15applies to repair and replacement parts added after the initial
16purchase of such a motor vehicle if that motor vehicle is used
17in a manner that would qualify for the rolling stock exemption
18otherwise provided for in this Act. For purposes of this
19paragraph, "used for commercial purposes" means the
20transportation of persons or property in furtherance of any
21commercial or industrial enterprise whether for-hire or not.
22 (13) Proceeds from sales to owners, lessors, or shippers of
23tangible personal property that is utilized by interstate
24carriers for hire for use as rolling stock moving in interstate
25commerce and equipment operated by a telecommunications
26provider, licensed as a common carrier by the Federal

HB0497- 51 -LRB100 00278 HLH 10282 b
1Communications Commission, which is permanently installed in
2or affixed to aircraft moving in interstate commerce.
3 (14) Machinery and equipment that will be used by the
4purchaser, or a lessee of the purchaser, primarily in the
5process of manufacturing or assembling tangible personal
6property for wholesale or retail sale or lease, whether the
7sale or lease is made directly by the manufacturer or by some
8other person, whether the materials used in the process are
9owned by the manufacturer or some other person, or whether the
10sale or lease is made apart from or as an incident to the
11seller's engaging in the service occupation of producing
12machines, tools, dies, jigs, patterns, gauges, or other similar
13items of no commercial value on special order for a particular
14purchaser. The exemption provided by this paragraph (14) does
15not include machinery and equipment used in (i) the generation
16of electricity for wholesale or retail sale; (ii) the
17generation or treatment of natural or artificial gas for
18wholesale or retail sale that is delivered to customers through
19pipes, pipelines, or mains; or (iii) the treatment of water for
20wholesale or retail sale that is delivered to customers through
21pipes, pipelines, or mains. The provisions of Public Act 98-583
22are declaratory of existing law as to the meaning and scope of
23this exemption.
24 (15) Proceeds of mandatory service charges separately
25stated on customers' bills for purchase and consumption of food
26and beverages, to the extent that the proceeds of the service

HB0497- 52 -LRB100 00278 HLH 10282 b
1charge are in fact turned over as tips or as a substitute for
2tips to the employees who participate directly in preparing,
3serving, hosting or cleaning up the food or beverage function
4with respect to which the service charge is imposed.
5 (16) Petroleum products sold to a purchaser if the seller
6is prohibited by federal law from charging tax to the
7purchaser.
8 (17) Tangible personal property sold to a common carrier by
9rail or motor that receives the physical possession of the
10property in Illinois and that transports the property, or
11shares with another common carrier in the transportation of the
12property, out of Illinois on a standard uniform bill of lading
13showing the seller of the property as the shipper or consignor
14of the property to a destination outside Illinois, for use
15outside Illinois.
16 (18) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20 (19) Until July 1 2003, oil field exploration, drilling,
21and production equipment, including (i) rigs and parts of rigs,
22rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
23tubular goods, including casing and drill strings, (iii) pumps
24and pump-jack units, (iv) storage tanks and flow lines, (v) any
25individual replacement part for oil field exploration,
26drilling, and production equipment, and (vi) machinery and

HB0497- 53 -LRB100 00278 HLH 10282 b
1equipment purchased for lease; but excluding motor vehicles
2required to be registered under the Illinois Vehicle Code.
3 (20) Photoprocessing machinery and equipment, including
4repair and replacement parts, both new and used, including that
5manufactured on special order, certified by the purchaser to be
6used primarily for photoprocessing, and including
7photoprocessing machinery and equipment purchased for lease.
8 (21) Coal and aggregate exploration, mining, off-highway
9hauling, processing, maintenance, and reclamation equipment,
10including replacement parts and equipment, and including
11equipment purchased for lease, but excluding motor vehicles
12required to be registered under the Illinois Vehicle Code. The
13changes made to this Section by Public Act 97-767 apply on and
14after July 1, 2003, but no claim for credit or refund is
15allowed on or after August 16, 2013 (the effective date of
16Public Act 98-456) for such taxes paid during the period
17beginning July 1, 2003 and ending on August 16, 2013 (the
18effective date of Public Act 98-456). This item (21) is exempt
19from the provisions of Section 2-70.
20 (22) Until June 30, 2013, fuel and petroleum products sold
21to or used by an air carrier, certified by the carrier to be
22used for consumption, shipment, or storage in the conduct of
23its business as an air common carrier, for a flight destined
24for or returning from a location or locations outside the
25United States without regard to previous or subsequent domestic
26stopovers.

HB0497- 54 -LRB100 00278 HLH 10282 b
1 Beginning July 1, 2013, fuel and petroleum products sold to
2or used by an air carrier, certified by the carrier to be used
3for consumption, shipment, or storage in the conduct of its
4business as an air common carrier, for a flight that (i) is
5engaged in foreign trade or is engaged in trade between the
6United States and any of its possessions and (ii) transports at
7least one individual or package for hire from the city of
8origination to the city of final destination on the same
9aircraft, without regard to a change in the flight number of
10that aircraft.
11 (23) A transaction in which the purchase order is received
12by a florist who is located outside Illinois, but who has a
13florist located in Illinois deliver the property to the
14purchaser or the purchaser's donee in Illinois.
15 (24) Fuel consumed or used in the operation of ships,
16barges, or vessels that are used primarily in or for the
17transportation of property or the conveyance of persons for
18hire on rivers bordering on this State if the fuel is delivered
19by the seller to the purchaser's barge, ship, or vessel while
20it is afloat upon that bordering river.
21 (25) Except as provided in item (25-5) of this Section, a
22motor vehicle sold in this State to a nonresident even though
23the motor vehicle is delivered to the nonresident in this
24State, if the motor vehicle is not to be titled in this State,
25and if a drive-away permit is issued to the motor vehicle as
26provided in Section 3-603 of the Illinois Vehicle Code or if

HB0497- 55 -LRB100 00278 HLH 10282 b
1the nonresident purchaser has vehicle registration plates to
2transfer to the motor vehicle upon returning to his or her home
3state. The issuance of the drive-away permit or having the
4out-of-state registration plates to be transferred is prima
5facie evidence that the motor vehicle will not be titled in
6this State.
7 (25-5) The exemption under item (25) does not apply if the
8state in which the motor vehicle will be titled does not allow
9a reciprocal exemption for a motor vehicle sold and delivered
10in that state to an Illinois resident but titled in Illinois.
11The tax collected under this Act on the sale of a motor vehicle
12in this State to a resident of another state that does not
13allow a reciprocal exemption shall be imposed at a rate equal
14to the state's rate of tax on taxable property in the state in
15which the purchaser is a resident, except that the tax shall
16not exceed the tax that would otherwise be imposed under this
17Act. At the time of the sale, the purchaser shall execute a
18statement, signed under penalty of perjury, of his or her
19intent to title the vehicle in the state in which the purchaser
20is a resident within 30 days after the sale and of the fact of
21the payment to the State of Illinois of tax in an amount
22equivalent to the state's rate of tax on taxable property in
23his or her state of residence and shall submit the statement to
24the appropriate tax collection agency in his or her state of
25residence. In addition, the retailer must retain a signed copy
26of the statement in his or her records. Nothing in this item

HB0497- 56 -LRB100 00278 HLH 10282 b
1shall be construed to require the removal of the vehicle from
2this state following the filing of an intent to title the
3vehicle in the purchaser's state of residence if the purchaser
4titles the vehicle in his or her state of residence within 30
5days after the date of sale. The tax collected under this Act
6in accordance with this item (25-5) shall be proportionately
7distributed as if the tax were collected at the 6.25% general
8rate imposed under this Act.
9 (25-7) Beginning on July 1, 2007, no tax is imposed under
10this Act on the sale of an aircraft, as defined in Section 3 of
11the Illinois Aeronautics Act, if all of the following
12conditions are met:
13 (1) the aircraft leaves this State within 15 days after
14 the later of either the issuance of the final billing for
15 the sale of the aircraft, or the authorized approval for
16 return to service, completion of the maintenance record
17 entry, and completion of the test flight and ground test
18 for inspection, as required by 14 C.F.R. 91.407;
19 (2) the aircraft is not based or registered in this
20 State after the sale of the aircraft; and
21 (3) the seller retains in his or her books and records
22 and provides to the Department a signed and dated
23 certification from the purchaser, on a form prescribed by
24 the Department, certifying that the requirements of this
25 item (25-7) are met. The certificate must also include the
26 name and address of the purchaser, the address of the

HB0497- 57 -LRB100 00278 HLH 10282 b
1 location where the aircraft is to be titled or registered,
2 the address of the primary physical location of the
3 aircraft, and other information that the Department may
4 reasonably require.
5 For purposes of this item (25-7):
6 "Based in this State" means hangared, stored, or otherwise
7used, excluding post-sale customizations as defined in this
8Section, for 10 or more days in each 12-month period
9immediately following the date of the sale of the aircraft.
10 "Registered in this State" means an aircraft registered
11with the Department of Transportation, Aeronautics Division,
12or titled or registered with the Federal Aviation
13Administration to an address located in this State.
14 This paragraph (25-7) is exempt from the provisions of
15Section 2-70.
16 (26) Semen used for artificial insemination of livestock
17for direct agricultural production.
18 (27) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (27) is exempt from the provisions
24of Section 2-70, and the exemption provided for under this item
25(27) applies for all periods beginning May 30, 1995, but no
26claim for credit or refund is allowed on or after January 1,

HB0497- 58 -LRB100 00278 HLH 10282 b
12008 (the effective date of Public Act 95-88) for such taxes
2paid during the period beginning May 30, 2000 and ending on
3January 1, 2008 (the effective date of Public Act 95-88).
4 (28) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients sold to a lessor
7who leases the equipment, under a lease of one year or longer
8executed or in effect at the time of the purchase, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11this Act.
12 (29) Personal property sold to a lessor who leases the
13property, under a lease of one year or longer executed or in
14effect at the time of the purchase, to a governmental body that
15has been issued an active tax exemption identification number
16by the Department under Section 1g of this Act.
17 (30) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated for
20disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

HB0497- 59 -LRB100 00278 HLH 10282 b
1 (31) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13 (32) Beginning July 1, 1999, game or game birds sold at a
14"game breeding and hunting preserve area" as that term is used
15in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 2-70.
17 (33) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

HB0497- 60 -LRB100 00278 HLH 10282 b
1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9 (34) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 2-70.
23 (35) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

HB0497- 61 -LRB100 00278 HLH 10282 b
1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 2-70.
7 (35-5) Beginning August 23, 2001 and through June 30, 2016,
8food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages, soft
10drinks, and food that has been prepared for immediate
11consumption) and prescription and nonprescription medicines,
12drugs, medical appliances, and insulin, urine testing
13materials, syringes, and needles used by diabetics, for human
14use, when purchased for use by a person receiving medical
15assistance under Article V of the Illinois Public Aid Code who
16resides in a licensed long-term care facility, as defined in
17the Nursing Home Care Act, or a licensed facility as defined in
18the ID/DD Community Care Act, the MC/DD Act, or the Specialized
19Mental Health Rehabilitation Act of 2013.
20 (36) Beginning August 2, 2001, computers and
21communications equipment utilized for any hospital purpose and
22equipment used in the diagnosis, analysis, or treatment of
23hospital patients sold to a lessor who leases the equipment,
24under a lease of one year or longer executed or in effect at
25the time of the purchase, to a hospital that has been issued an
26active tax exemption identification number by the Department

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1under Section 1g of this Act. This paragraph is exempt from the
2provisions of Section 2-70.
3 (37) Beginning August 2, 2001, personal property sold to a
4lessor who leases the property, under a lease of one year or
5longer executed or in effect at the time of the purchase, to a
6governmental body that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8this Act. This paragraph is exempt from the provisions of
9Section 2-70.
10 (38) Beginning on January 1, 2002 and through June 30,
112016, tangible personal property purchased from an Illinois
12retailer by a taxpayer engaged in centralized purchasing
13activities in Illinois who will, upon receipt of the property
14in Illinois, temporarily store the property in Illinois (i) for
15the purpose of subsequently transporting it outside this State
16for use or consumption thereafter solely outside this State or
17(ii) for the purpose of being processed, fabricated, or
18manufactured into, attached to, or incorporated into other
19tangible personal property to be transported outside this State
20and thereafter used or consumed solely outside this State. The
21Director of Revenue shall, pursuant to rules adopted in
22accordance with the Illinois Administrative Procedure Act,
23issue a permit to any taxpayer in good standing with the
24Department who is eligible for the exemption under this
25paragraph (38). The permit issued under this paragraph (38)
26shall authorize the holder, to the extent and in the manner

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1specified in the rules adopted under this Act, to purchase
2tangible personal property from a retailer exempt from the
3taxes imposed by this Act. Taxpayers shall maintain all
4necessary books and records to substantiate the use and
5consumption of all such tangible personal property outside of
6the State of Illinois.
7 (39) Beginning January 1, 2008, tangible personal property
8used in the construction or maintenance of a community water
9supply, as defined under Section 3.145 of the Environmental
10Protection Act, that is operated by a not-for-profit
11corporation that holds a valid water supply permit issued under
12Title IV of the Environmental Protection Act. This paragraph is
13exempt from the provisions of Section 2-70.
14 (40) Beginning January 1, 2010, materials, parts,
15equipment, components, and furnishings incorporated into or
16upon an aircraft as part of the modification, refurbishment,
17completion, replacement, repair, or maintenance of the
18aircraft. This exemption includes consumable supplies used in
19the modification, refurbishment, completion, replacement,
20repair, and maintenance of aircraft, but excludes any
21materials, parts, equipment, components, and consumable
22supplies used in the modification, replacement, repair, and
23maintenance of aircraft engines or power plants, whether such
24engines or power plants are installed or uninstalled upon any
25such aircraft. "Consumable supplies" include, but are not
26limited to, adhesive, tape, sandpaper, general purpose

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1lubricants, cleaning solution, latex gloves, and protective
2films. This exemption applies only to the sale of qualifying
3tangible personal property to persons who modify, refurbish,
4complete, replace, or maintain an aircraft and who (i) hold an
5Air Agency Certificate and are empowered to operate an approved
6repair station by the Federal Aviation Administration, (ii)
7have a Class IV Rating, and (iii) conduct operations in
8accordance with Part 145 of the Federal Aviation Regulations.
9The exemption does not include aircraft operated by a
10commercial air carrier providing scheduled passenger air
11service pursuant to authority issued under Part 121 or Part 129
12of the Federal Aviation Regulations. The changes made to this
13paragraph (40) by Public Act 98-534 are declarative of existing
14law.
15 (41) Tangible personal property sold to a
16public-facilities corporation, as described in Section
1711-65-10 of the Illinois Municipal Code, for purposes of
18constructing or furnishing a municipal convention hall, but
19only if the legal title to the municipal convention hall is
20transferred to the municipality without any further
21consideration by or on behalf of the municipality at the time
22of the completion of the municipal convention hall or upon the
23retirement or redemption of any bonds or other debt instruments
24issued by the public-facilities corporation in connection with
25the development of the municipal convention hall. This
26exemption includes existing public-facilities corporations as

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1provided in Section 11-65-25 of the Illinois Municipal Code.
2This paragraph is exempt from the provisions of Section 2-70.
3 (42) Beginning January 1, 2017, menstrual pads, tampons,
4and menstrual cups.
5(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
698-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
71-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
87-29-15; 99-855, eff. 8-19-16.)
9 Section 99. Effective date. This Act takes effect upon
10becoming law.
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