Rep. Bill Mitchell
Filed: 3/8/2011
 
 


 




09700HB2477ham001LRB097 07323 PJG 51693 a



1
AMENDMENT TO HOUSE BILL 2477 




2 AMENDMENT NO. ______. Amend House Bill 2477 by replacing 
3everything after the enacting clause with the following:


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 
 
 
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1Illinois county
fair association for use in conducting, 
2operating, or promoting the
county fair.

3 (3) Personal property purchased by a not-for-profit
arts or 
4cultural organization that establishes, by proof required by 
5the
Department by
rule, that it has received an exemption under 
6Section 501(c)(3) of the Internal
Revenue Code and that is 
7organized and operated primarily for the
presentation
or 
8support of arts or cultural programming, activities, or 
9services. These
organizations include, but are not limited to, 
10music and dramatic arts
organizations such as symphony 
11orchestras and theatrical groups, arts and
cultural service 
12organizations, local arts councils, visual arts organizations,

13and media arts organizations.
On and after the effective date 
14of this amendatory Act of the 92nd General
Assembly, however, 
15an entity otherwise eligible for this exemption shall not
make 
16tax-free purchases unless it has an active identification 
17number issued by
the Department.

18 (4) Personal property purchased by a governmental body, by 
19a
corporation, society, association, foundation, or 
20institution organized and
operated exclusively for charitable, 
21religious, or educational purposes, or
by a not-for-profit 
22corporation, society, association, foundation,
institution, or 
23organization that has no compensated officers or employees
and 
24that is organized and operated primarily for the recreation of 
25persons
55 years of age or older. A limited liability company 
26may qualify for the
exemption under this paragraph only if the 
 
 
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1limited liability company is
organized and operated 
2exclusively for educational purposes. On and after July
1, 
31987, however, no entity otherwise eligible for this exemption 
4shall make
tax-free purchases unless it has an active exemption 
5identification number
issued by the Department.

6 (5) Until July 1, 2003, a passenger car that is a 
7replacement vehicle to
the extent that the
purchase price of 
8the car is subject to the Replacement Vehicle Tax.

9 (6) Until July 1, 2003 and beginning again on September 1, 
102004 through August 30, 2014, graphic arts machinery and 
11equipment, including
repair and replacement
parts, both new and 
12used, and including that manufactured on special order,

13certified by the purchaser to be used primarily for graphic 
14arts production,
and including machinery and equipment 
15purchased for lease.
Equipment includes chemicals or chemicals 
16acting as catalysts but only if
the
chemicals or chemicals 
17acting as catalysts effect a direct and immediate change
upon a 
18graphic arts product.

19 (7) Farm chemicals.

20 (8) Legal tender, currency, medallions, or gold or silver 
21coinage issued by
the State of Illinois, the government of the 
22United States of America, or the
government of any foreign 
23country, and bullion.

24 (9) Personal property purchased from a teacher-sponsored 
25student
organization affiliated with an elementary or 
26secondary school located in
Illinois.

 
 
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1 (10) A motor vehicle of the first division, a motor vehicle 
2of the
second division that is a self-contained motor vehicle 
3designed or
permanently converted to provide living quarters 
4for recreational, camping,
or travel use, with direct walk 
5through to the living quarters from the
driver's seat, or a 
6motor vehicle of the second division that is of the
van 
7configuration designed for the transportation of not less than 
87 nor
more than 16 passengers, as defined in Section 1-146 of 
9the Illinois
Vehicle Code, that is used for automobile renting, 
10as defined in the
Automobile Renting Occupation and Use Tax 
11Act.

12 (11) Farm machinery and equipment, both new and used,

13including that manufactured on special order, certified by the 
14purchaser
to be used primarily for production agriculture or 
15State or federal
agricultural programs, including individual 
16replacement parts for
the machinery and equipment, including 
17machinery and equipment
purchased
for lease,
and including 
18implements of husbandry defined in Section 1-130 of
the 
19Illinois Vehicle Code, farm machinery and agricultural 
20chemical and
fertilizer spreaders, and nurse wagons required to 
21be registered
under Section 3-809 of the Illinois Vehicle Code,

22but excluding other motor
vehicles required to be
registered 
23under the Illinois Vehicle Code.
Horticultural polyhouses or 
24hoop houses used for propagating, growing, or
overwintering 
25plants shall be considered farm machinery and equipment under

26this item (11).
Agricultural chemical tender tanks and dry 
 
 
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1boxes shall include units sold
separately from a motor vehicle 
2required to be licensed and units sold mounted
on a motor 
3vehicle required to be licensed if the selling price of the 
4tender
is separately stated.

5 Farm machinery and equipment shall include precision 
6farming equipment
that is
installed or purchased to be 
7installed on farm machinery and equipment
including, but not 
8limited to, tractors, harvesters, sprayers, planters,
seeders, 
9or spreaders.
Precision farming equipment includes, but is not 
10limited to, soil testing
sensors, computers, monitors, 
11software, global positioning
and mapping systems, and other 
12such equipment.

13 Farm machinery and equipment also includes computers, 
14sensors, software, and
related equipment used primarily in the

15computer-assisted operation of production agriculture 
16facilities, equipment,
and
activities such as, but not limited 
17to,
the collection, monitoring, and correlation of
animal and 
18crop data for the purpose of
formulating animal diets and 
19agricultural chemicals. This item (11) is exempt
from the 
20provisions of
Section 3-90.

21 (12) Fuel and petroleum products sold to or used by an air 
22common
carrier, certified by the carrier to be used for 
23consumption, shipment, or
storage in the conduct of its 
24business as an air common carrier, for a
flight destined for or 
25returning from a location or locations
outside the United 
26States without regard to previous or subsequent domestic

 
 
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1stopovers.

2 (13) Proceeds of mandatory service charges separately

3stated on customers' bills for the purchase and consumption of 
4food and
beverages purchased at retail from a retailer, to the 
5extent that the proceeds
of the service charge are in fact 
6turned over as tips or as a substitute
for tips to the 
7employees who participate directly in preparing, serving,

8hosting or cleaning up the food or beverage function with 
9respect to which
the service charge is imposed.

10 (14) Until July 1, 2003, oil field exploration, drilling, 
11and production
equipment,
including (i) rigs and parts of rigs, 
12rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and 
13tubular goods,
including casing and drill strings, (iii) pumps 
14and pump-jack units, (iv)
storage tanks and flow lines, (v) any 
15individual replacement part for oil
field exploration, 
16drilling, and production equipment, and (vi) machinery and

17equipment purchased
for lease; but excluding motor vehicles 
18required to be registered under the
Illinois Vehicle Code.

19 (15) Photoprocessing machinery and equipment, including 
20repair and
replacement parts, both new and used, including that

21manufactured on special order, certified by the purchaser to be 
22used
primarily for photoprocessing, and including

23photoprocessing machinery and equipment purchased for lease.

24 (16) Until July 1, 2003, coal exploration, mining, 
25offhighway hauling,
processing, maintenance, and reclamation 
26equipment,
including replacement parts and equipment, and

 
 
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1including equipment purchased for lease, but excluding motor

2vehicles required to be registered under the Illinois Vehicle 
3Code.

4 (17) Until July 1, 2003, distillation machinery and 
5equipment, sold as a
unit or kit,
assembled or installed by the 
6retailer, certified by the user to be used
only for the 
7production of ethyl alcohol that will be used for consumption

8as motor fuel or as a component of motor fuel for the personal 
9use of the
user, and not subject to sale or resale.

10 (18) Manufacturing and assembling machinery and equipment 
11used
primarily in the process of manufacturing or assembling 
12tangible
personal property for wholesale or retail sale or 
13lease, whether that sale
or lease is made directly by the 
14manufacturer or by some other person,
whether the materials 
15used in the process are
owned by the manufacturer or some other 
16person, or whether that sale or
lease is made apart from or as 
17an incident to the seller's engaging in
the service occupation 
18of producing machines, tools, dies, jigs,
patterns, gauges, or 
19other similar items of no commercial value on
special order for 
20a particular purchaser.

21 (19) Personal property delivered to a purchaser or 
22purchaser's donee
inside Illinois when the purchase order for 
23that personal property was
received by a florist located 
24outside Illinois who has a florist located
inside Illinois 
25deliver the personal property.

26 (20) Semen used for artificial insemination of livestock 
 
 
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1for direct
agricultural production.

2 (21) Horses, or interests in horses, registered with and 
3meeting the
requirements of any of the
Arabian Horse Club 
4Registry of America, Appaloosa Horse Club, American Quarter

5Horse Association, United States
Trotting Association, or 
6Jockey Club, as appropriate, used for
purposes of breeding or 
7racing for prizes. This item (21) is exempt from the provisions 
8of Section 3-90, and the exemption provided for under this item 
9(21) applies for all periods beginning May 30, 1995, but no 
10claim for credit or refund is allowed on or after January 1, 
112008
for such taxes paid during the period beginning May 30, 
122000 and ending on January 1, 2008.


13 (22) Computers and communications equipment utilized for 
14any
hospital
purpose
and equipment used in the diagnosis,

15analysis, or treatment of hospital patients purchased by a 
16lessor who leases
the
equipment, under a lease of one year or 
17longer executed or in effect at the
time the lessor would 
18otherwise be subject to the tax imposed by this Act, to a

19hospital
that has been issued an active tax exemption 
20identification number by
the
Department under Section 1g of the 
21Retailers' Occupation Tax Act. If the
equipment is leased in a 
22manner that does not qualify for
this exemption or is used in 
23any other non-exempt manner, the lessor
shall be liable for the

24tax imposed under this Act or the Service Use Tax Act, as the 
25case may
be, based on the fair market value of the property at 
26the time the
non-qualifying use occurs. No lessor shall collect 
 
 
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1or attempt to collect an
amount (however
designated) that 
2purports to reimburse that lessor for the tax imposed by this

3Act or the Service Use Tax Act, as the case may be, if the tax 
4has not been
paid by the lessor. If a lessor improperly 
5collects any such amount from the
lessee, the lessee shall have 
6a legal right to claim a refund of that amount
from the lessor. 
7If, however, that amount is not refunded to the lessee for
any 
8reason, the lessor is liable to pay that amount to the 
9Department.

10 (23) Personal property purchased by a lessor who leases the

11property, under
a
lease of
one year or longer executed or in 
12effect at the time
the lessor would otherwise be subject to the 
13tax imposed by this Act,
to a governmental body
that has been 
14issued an active sales tax exemption identification number by 
15the
Department under Section 1g of the Retailers' Occupation 
16Tax Act.
If the
property is leased in a manner that does not 
17qualify for
this exemption
or used in any other non-exempt 
18manner, the lessor shall be liable for the
tax imposed under 
19this Act or the Service Use Tax Act, as the case may
be, based 
20on the fair market value of the property at the time the

21non-qualifying use occurs. No lessor shall collect or attempt 
22to collect an
amount (however
designated) that purports to 
23reimburse that lessor for the tax imposed by this
Act or the 
24Service Use Tax Act, as the case may be, if the tax has not been

25paid by the lessor. If a lessor improperly collects any such 
26amount from the
lessee, the lessee shall have a legal right to 
 
 
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1claim a refund of that amount
from the lessor. If, however, 
2that amount is not refunded to the lessee for
any reason, the 
3lessor is liable to pay that amount to the Department.

4 (24) Beginning with taxable years ending on or after 
5December
31, 1995
and
ending with taxable years ending on or 
6before December 31, 2004,
personal property that is
donated for 
7disaster relief to be used in a State or federally declared

8disaster area in Illinois or bordering Illinois by a 
9manufacturer or retailer
that is registered in this State to a 
10corporation, society, association,
foundation, or institution 
11that has been issued a sales tax exemption
identification 
12number by the Department that assists victims of the disaster

13who reside within the declared disaster area.

14 (25) 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 used in the 
17performance of infrastructure repairs in this
State, including 
18but not limited to municipal roads and streets, access roads,

19bridges, sidewalks, waste disposal systems, water and sewer 
20line extensions,
water distribution and purification 
21facilities, storm water drainage and
retention facilities, and 
22sewage treatment facilities, resulting from a State
or 
23federally declared disaster in Illinois or bordering Illinois 
24when such
repairs are initiated on facilities located in the 
25declared disaster area
within 6 months after the disaster.

26 (26) Beginning July 1, 1999, game or game birds purchased 
 
 
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1at a "game
breeding
and hunting preserve area" or an "exotic 
2game hunting area" as those terms are
used in
the Wildlife Code 
3or at a hunting enclosure approved through rules adopted by
the

4Department of Natural Resources. This paragraph is exempt from 
5the provisions
of
Section 3-90.

6 (27) A motor vehicle, as that term is defined in Section 
71-146
of the
Illinois
Vehicle Code, that is donated to a 
8corporation, limited liability company,
society, association, 
9foundation, or institution that is determined by the
Department 
10to be organized and operated exclusively for educational 
11purposes.
For purposes of this exemption, "a corporation, 
12limited liability company,
society, association, foundation, 
13or institution organized and operated
exclusively for 
14educational purposes" means all tax-supported public schools,

15private schools that offer systematic instruction in useful 
16branches of
learning by methods common to public schools and 
17that compare favorably in
their scope and intensity with the 
18course of study presented in tax-supported
schools, and 
19vocational or technical schools or institutes organized and

20operated exclusively to provide a course of study of not less 
21than 6 weeks
duration and designed to prepare individuals to 
22follow a trade or to pursue a
manual, technical, mechanical, 
23industrial, business, or commercial
occupation.

24 (28) Beginning January 1, 2000, personal property, 
25including
food,
purchased through fundraising
events for the 
26benefit of
a public or private elementary or
secondary school, 
 
 
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1a group of those schools, or one or more school
districts if 
2the events are
sponsored by an entity recognized by the school 
3district that consists
primarily of volunteers and includes

4parents and teachers of the school children. This paragraph 
5does not apply
to fundraising
events (i) for the benefit of 
6private home instruction or (ii)
for which the fundraising 
7entity purchases the personal property sold at
the events from 
8another individual or entity that sold the property for the

9purpose of resale by the fundraising entity and that
profits 
10from the sale to the
fundraising entity. This paragraph is 
11exempt
from the provisions
of Section 3-90.

12 (29) Beginning January 1, 2000 and through December 31, 
132001, new or
used automatic vending
machines that prepare and 
14serve hot food and beverages, including coffee, soup,
and
other 
15items, and replacement parts for these machines.
Beginning 
16January 1,
2002 and through June 30, 2003, machines and parts 
17for machines used in
commercial, coin-operated amusement and 
18vending business if a use or occupation
tax is paid on the 
19gross receipts derived from the use of the commercial,

20coin-operated amusement and vending machines.
This
paragraph

21is exempt from the provisions of Section 3-90.

22 (30) Beginning January 1, 2001 and through June 30, 2011, 
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
nonprescription medicines, 
 
 
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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 MR/DD Community Care Act.

8 (31) Beginning on
the effective date of this amendatory Act 
9of the 92nd General Assembly,
computers and communications 
10equipment
utilized for any hospital purpose and equipment used 
11in the diagnosis,
analysis, or treatment of hospital patients 
12purchased by a lessor who leases
the equipment, under a lease 
13of one year or longer executed or in effect at the
time the 
14lessor would otherwise be subject to the tax imposed by this 
15Act, to a
hospital that has been issued an active tax exemption 
16identification number by
the Department under Section 1g of the 
17Retailers' Occupation Tax Act. If the
equipment is leased in a 
18manner that does not qualify for this exemption or is
used in 
19any other nonexempt manner, the lessor shall be liable for the 
20tax
imposed under this Act or the Service Use Tax Act, as the 
21case may be, based on
the fair market value of the property at 
22the time the nonqualifying use
occurs. No lessor shall collect 
23or attempt to collect an amount (however
designated) that 
24purports to reimburse that lessor for the tax imposed by this

25Act or the Service Use Tax Act, as the case may be, if the tax 
26has not been
paid by the lessor. If a lessor improperly 
 
 
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1collects any such amount from the
lessee, the lessee shall have 
2a legal right to claim a refund of that amount
from the lessor. 
3If, however, that amount is not refunded to the lessee for
any 
4reason, the lessor is liable to pay that amount to the 
5Department.
This paragraph is exempt from the provisions of 
6Section 3-90.

7 (32) Beginning on
the effective date of this amendatory Act 
8of the 92nd General Assembly,
personal property purchased by a 
9lessor who leases the property,
under a lease of one year or 
10longer executed or in effect at the time the
lessor would 
11otherwise be subject to the tax imposed by this Act, to a

12governmental body that has been issued an active sales tax 
13exemption
identification number by the Department under 
14Section 1g of the Retailers'
Occupation Tax Act. If the 
15property is leased in a manner that does not
qualify for this 
16exemption or used in any other nonexempt manner, the lessor

17shall be liable for the tax imposed under this Act or the 
18Service Use Tax Act,
as the case may be, based on the fair 
19market value of the property at the time
the nonqualifying use 
20occurs. No lessor shall collect or attempt to collect
an amount 
21(however designated) that purports to reimburse that lessor for 
22the
tax imposed by this Act or the Service Use Tax Act, as the 
23case may be, if the
tax has not been paid by the lessor. If a 
24lessor improperly collects any such
amount from the lessee, the 
25lessee shall have a legal right to claim a refund
of that 
26amount from the lessor. If, however, that amount is not 
 
 
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1refunded to
the lessee for any reason, the lessor is liable to 
2pay that amount to the
Department. This paragraph is exempt 
3from the provisions of Section 3-90.

4 (33) On and after July 1, 2003 and through June 30, 2004, 
5the use in this State of motor vehicles of
the second division 
6with a gross vehicle weight in excess of 8,000 pounds and
that 
7are subject to the commercial distribution fee imposed under 
8Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 
91, 2004 and through June 30, 2005, the use in this State of 
10motor vehicles of the second division: (i) with a gross vehicle 
11weight rating in excess of 8,000 pounds; (ii) that are subject 
12to the commercial distribution fee imposed under Section 
133-815.1 of the Illinois Vehicle Code; and (iii) that are 
14primarily used for commercial purposes. Through June 30, 2005, 
15this exemption applies to repair and
replacement parts added 
16after the initial purchase of such a motor vehicle if
that 
17motor
vehicle is used in a manner that would qualify for the 
18rolling stock exemption
otherwise provided for in this Act. For 
19purposes of this paragraph, the term "used for commercial 
20purposes" means the transportation of persons or property in 
21furtherance of any commercial or industrial enterprise, 
22whether for-hire or not.


23 (34) Beginning January 1, 2008, tangible personal property 
24used in the construction or maintenance of a community water 
25supply, as defined under Section 3.145 of the Environmental 
26Protection Act, that is operated by a not-for-profit 
 
 
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1corporation that holds a valid water supply permit issued under 
2Title IV of the Environmental Protection Act. This paragraph is 
3exempt from the provisions of Section 3-90.
4 (35) Beginning January 1, 2010, materials, parts, 
5equipment, components, and furnishings incorporated into or 
6upon an aircraft as part of the modification, refurbishment, 
7completion, replacement, repair, or maintenance of the 
8aircraft. This exemption includes consumable supplies used in 
9the modification, refurbishment, completion, replacement, 
10repair, and maintenance of aircraft, but excludes any 
11materials, parts, equipment, components, and consumable 
12supplies used in the modification, replacement, repair, and 
13maintenance of aircraft engines or power plants, whether such 
14engines or power plants are installed or uninstalled upon any 
15such aircraft. "Consumable supplies" include, but are not 
16limited to, adhesive, tape, sandpaper, general purpose 
17lubricants, cleaning solution, latex gloves, and protective 
18films. This exemption applies only to those organizations that 
19(i) hold an Air Agency Certificate and are empowered to operate 
20an approved repair station by the Federal Aviation 
21Administration, (ii) have a Class IV Rating, and (iii) conduct 
22operations in accordance with Part 145 of the Federal Aviation 
23Regulations. The exemption does not include aircraft operated 
24by a commercial air carrier providing scheduled passenger air 
25service pursuant to authority issued under Part 121 or Part 129 
26of the Federal Aviation Regulations. 
 
 
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1 (36) Tangible personal property purchased by a 
2public-facilities corporation, as described in Section 
311-65-10 of the Illinois Municipal Code, for purposes of 
4constructing or furnishing a municipal convention hall, but 
5only if the legal title to the municipal convention hall is 
6transferred to the municipality without any further 
7consideration by or on behalf of the municipality at the time 
8of the completion of the municipal convention hall or upon the 
9retirement or redemption of any bonds or other debt instruments 
10issued by the public-facilities corporation in connection with 
11the development of the municipal convention hall. This 
12exemption includes existing public-facilities corporations as 
13provided in Section 11-65-25 of the Illinois Municipal Code. 
14This paragraph is exempt from the provisions of Section 3-90.
15 (37) Beginning on July 1, 2011, that part of the selling 
16price of motor fuel or
gasohol that exceeds $3.00 per gallon. 
17This paragraph is exempt from the provisions of Section 3-90. 
18(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, 
19eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; 
2096-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. 
217-2-10.)



22 Section 10. The Service Use Tax Act is amended by changing 
23Section 3-5 as follows:



24 (35 ILCS 110/3-5)


 
 
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1 Sec. 3-5. Exemptions. Use of the following tangible 
2personal property
is exempt from the tax imposed by this Act:

3 (1) Personal property purchased from a corporation, 
4society,
association, foundation, institution, or 
5organization, other than a limited
liability company, that is 
6organized and operated as a not-for-profit service
enterprise 
7for the benefit of persons 65 years of age or older if the 
8personal
property was not purchased by the enterprise for the 
9purpose of resale by the
enterprise.

10 (2) Personal property purchased by a non-profit Illinois 
11county fair
association for use in conducting, operating, or 
12promoting the county fair.

13 (3) Personal property purchased by a not-for-profit arts
or 
14cultural
organization that establishes, by proof required by 
15the Department by rule,
that it has received an exemption under 
16Section 501(c)(3) of the Internal
Revenue Code and that is 
17organized and operated primarily for the
presentation
or 
18support of arts or cultural programming, activities, or 
19services. These
organizations include, but are not limited to, 
20music and dramatic arts
organizations such as symphony 
21orchestras and theatrical groups, arts and
cultural service 
22organizations, local arts councils, visual arts organizations,

23and media arts organizations.
On and after the effective date 
24of this amendatory Act of the 92nd General
Assembly, however, 
25an entity otherwise eligible for this exemption shall not
make 
26tax-free purchases unless it has an active identification 
 
 
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1number issued by
the Department.

2 (4) Legal tender, currency, medallions, or gold or silver 
3coinage issued
by the State of Illinois, the government of the 
4United States of America,
or the government of any foreign 
5country, and bullion.

6 (5) Until July 1, 2003 and beginning again on September 1, 
72004 through August 30, 2014, graphic arts machinery and 
8equipment, including
repair and
replacement parts, both new and 
9used, and including that manufactured on
special order or 
10purchased for lease, certified by the purchaser to be used

11primarily for graphic arts production.
Equipment includes 
12chemicals or
chemicals acting as catalysts but only if
the 
13chemicals or chemicals acting as catalysts effect a direct and 
14immediate
change upon a graphic arts product.

15 (6) Personal property purchased from a teacher-sponsored 
16student
organization affiliated with an elementary or 
17secondary school located
in Illinois.

18 (7) Farm machinery and equipment, both new and used, 
19including that
manufactured on special order, certified by the 
20purchaser to be used
primarily for production agriculture or 
21State or federal agricultural
programs, including individual 
22replacement parts for the machinery and
equipment, including 
23machinery and equipment purchased for lease,
and including 
24implements of husbandry defined in Section 1-130 of
the 
25Illinois Vehicle Code, farm machinery and agricultural 
26chemical and
fertilizer spreaders, and nurse wagons required to 
 
 
09700HB2477ham001- 20 -LRB097 07323 PJG 51693 a


1be registered
under Section 3-809 of the Illinois Vehicle Code,

2but
excluding other motor vehicles required to be registered 
3under the Illinois
Vehicle Code.
Horticultural polyhouses or 
4hoop houses used for propagating, growing, or
overwintering 
5plants shall be considered farm machinery and equipment under

6this item (7).
Agricultural chemical tender tanks and dry boxes 
7shall include units sold
separately from a motor vehicle 
8required to be licensed and units sold mounted
on a motor 
9vehicle required to be licensed if the selling price of the 
10tender
is separately stated.

11 Farm machinery and equipment shall include precision 
12farming equipment
that is
installed or purchased to be 
13installed on farm machinery and equipment
including, but not 
14limited to, tractors, harvesters, sprayers, planters,
seeders, 
15or spreaders.
Precision farming equipment includes, but is not 
16limited to,
soil testing sensors, computers, monitors, 
17software, global positioning
and mapping systems, and other 
18such equipment.

19 Farm machinery and equipment also includes computers, 
20sensors, software, and
related equipment used primarily in the

21computer-assisted operation of production agriculture 
22facilities, equipment,
and activities such as, but
not limited 
23to,
the collection, monitoring, and correlation of
animal and 
24crop data for the purpose of
formulating animal diets and 
25agricultural chemicals. This item (7) is exempt
from the 
26provisions of
Section 3-75.

 
 
09700HB2477ham001- 21 -LRB097 07323 PJG 51693 a


1 (8) Fuel and petroleum products sold to or used by an air 
2common
carrier, certified by the carrier to be used for 
3consumption, shipment, or
storage in the conduct of its 
4business as an air common carrier, for a
flight destined for or 
5returning from a location or locations
outside the United 
6States without regard to previous or subsequent domestic

7stopovers.

8 (9) Proceeds of mandatory service charges separately 
9stated on
customers' bills for the purchase and consumption of 
10food and beverages
acquired as an incident to the purchase of a 
11service from a serviceman, to
the extent that the proceeds of 
12the service charge are in fact
turned over as tips or as a 
13substitute for tips to the employees who
participate directly 
14in preparing, serving, hosting or cleaning up the
food or 
15beverage function with respect to which the service charge is 
16imposed.

17 (10) Until July 1, 2003, oil field exploration, drilling, 
18and production
equipment, including
(i) rigs and parts of rigs, 
19rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and 
20tubular goods, including casing and
drill strings, (iii) pumps 
21and pump-jack units, (iv) storage tanks and flow
lines, (v) any 
22individual replacement part for oil field exploration,

23drilling, and production equipment, and (vi) machinery and 
24equipment purchased
for lease; but
excluding motor vehicles 
25required to be registered under the Illinois
Vehicle Code.

26 (11) Proceeds from the sale of photoprocessing machinery 
 
 
09700HB2477ham001- 22 -LRB097 07323 PJG 51693 a


1and
equipment, including repair and replacement parts, both new 
2and
used, including that manufactured on special order, 
3certified by the
purchaser to be used primarily for 
4photoprocessing, and including
photoprocessing machinery and 
5equipment purchased for lease.

6 (12) Until July 1, 2003, coal exploration, mining, 
7offhighway hauling,
processing,
maintenance, and reclamation 
8equipment, including
replacement parts and equipment, and 
9including
equipment purchased for lease, but excluding motor 
10vehicles required to be
registered under the Illinois Vehicle 
11Code.

12 (13) Semen used for artificial insemination of livestock 
13for direct
agricultural production.

14 (14) Horses, or interests in horses, registered with and 
15meeting the
requirements of any of the
Arabian Horse Club 
16Registry of America, Appaloosa Horse Club, American Quarter

17Horse Association, United States
Trotting Association, or 
18Jockey Club, as appropriate, used for
purposes of breeding or 
19racing for prizes. This item (14) is exempt from the provisions 
20of Section 3-75, and the exemption provided for under this item 
21(14) applies for all periods beginning May 30, 1995, but no 
22claim for credit or refund is allowed on or after the effective 
23date of this amendatory Act of the 95th General Assembly for 
24such taxes paid during the period beginning May 30, 2000 and 
25ending on the effective date of this amendatory Act of the 95th 
26General Assembly.

 
 
09700HB2477ham001- 23 -LRB097 07323 PJG 51693 a


1 (15) Computers and communications equipment utilized for 
2any
hospital
purpose
and equipment used in the diagnosis,

3analysis, or treatment of hospital patients purchased by a 
4lessor who leases
the
equipment, under a lease of one year or 
5longer executed or in effect at the
time
the lessor would 
6otherwise be subject to the tax imposed by this Act,
to a

7hospital
that has been issued an active tax exemption 
8identification number by the
Department under Section 1g of the 
9Retailers' Occupation Tax Act.
If the
equipment is leased in a 
10manner that does not qualify for
this exemption
or is used in 
11any other non-exempt manner,
the lessor shall be liable for the

12tax imposed under this Act or the Use Tax Act, as the case may

13be, based on the fair market value of the property at the time 
14the
non-qualifying use occurs. No lessor shall collect or 
15attempt to collect an
amount (however
designated) that purports 
16to reimburse that lessor for the tax imposed by this
Act or the 
17Use Tax Act, as the case may be, if the tax has not been
paid by 
18the lessor. If a lessor improperly collects any such amount 
19from the
lessee, the lessee shall have a legal right to claim a 
20refund of that amount
from the lessor. If, however, that amount 
21is not refunded to the lessee for
any reason, the lessor is 
22liable to pay that amount to the Department.

23 (16) Personal property purchased by a lessor who leases the

24property, under
a
lease of one year or longer executed or in 
25effect at the time
the lessor would otherwise be subject to the 
26tax imposed by this Act,
to a governmental body
that has been 
 
 
09700HB2477ham001- 24 -LRB097 07323 PJG 51693 a


1issued an active tax exemption identification number by the

2Department under Section 1g of the Retailers' Occupation Tax 
3Act.
If the
property is leased in a manner that does not 
4qualify for
this exemption
or is used in any other non-exempt 
5manner,
the lessor shall be liable for the
tax imposed under 
6this Act or the Use Tax Act, as the case may
be, based on the 
7fair market value of the property at the time the

8non-qualifying use occurs. No lessor shall collect or attempt 
9to collect an
amount (however
designated) that purports to 
10reimburse that lessor for the tax imposed by this
Act or the 
11Use Tax Act, as the case may be, if the tax has not been
paid by 
12the lessor. If a lessor improperly collects any such amount 
13from the
lessee, the lessee shall have a legal right to claim a 
14refund of that amount
from the lessor. If, however, that amount 
15is not refunded to the lessee for
any reason, the lessor is 
16liable to pay that amount to the Department.

17 (17) 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.

 
 
09700HB2477ham001- 25 -LRB097 07323 PJG 51693 a


1 (18) 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 (19) Beginning July 1, 1999, game or game birds purchased 
14at a "game
breeding
and hunting preserve area" or an "exotic 
15game hunting area" as those terms are
used in
the Wildlife Code 
16or at a hunting enclosure approved through rules adopted by
the

17Department of Natural Resources. This paragraph is exempt from 
18the provisions
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 
 
 
09700HB2477ham001- 26 -LRB097 07323 PJG 51693 a


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 
 
 
09700HB2477ham001- 27 -LRB097 07323 PJG 51693 a


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, 2011, 
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 MR/DD Community Care Act.

21 (24) Beginning on the effective date of this amendatory Act 
22of the 92nd
General Assembly, computers and communications 
23equipment
utilized for any hospital purpose and equipment used 
24in the diagnosis,
analysis, or treatment of hospital patients 
25purchased by a lessor who leases
the equipment, under a lease 
26of one year or longer executed or in effect at the
time the 
 
 
09700HB2477ham001- 28 -LRB097 07323 PJG 51693 a


1lessor would otherwise be subject to the tax imposed by this 
2Act, to a
hospital that has been issued an active tax exemption 
3identification number by
the Department under Section 1g of the 
4Retailers' Occupation Tax Act. If the
equipment is leased in a 
5manner that does not qualify for this exemption or is
used in 
6any other nonexempt manner, the lessor shall be liable for the

7tax imposed under this Act or the Use Tax Act, as the case may 
8be, based on the
fair market value of the property at the time 
9the nonqualifying use occurs.
No lessor shall collect or 
10attempt to collect an amount (however
designated) that purports 
11to reimburse that lessor for the tax imposed by this
Act or the 
12Use Tax Act, as the case may be, if the tax has not been
paid by 
13the lessor. If a lessor improperly collects any such amount 
14from the
lessee, the lessee shall have a legal right to claim a 
15refund of that amount
from the lessor. If, however, that amount 
16is not refunded to the lessee for
any reason, the lessor is 
17liable to pay that amount to the Department.
This paragraph is 
18exempt from the provisions of Section 3-75.

19 (25) Beginning
on the effective date of this amendatory Act 
20of the 92nd General Assembly,
personal property purchased by a 
21lessor
who leases the property, under a lease of one year or 
22longer executed or in
effect at the time the lessor would 
23otherwise be subject to the tax imposed by
this Act, to a 
24governmental body that has been issued an active tax exemption

25identification number by the Department under Section 1g of the 
26Retailers'
Occupation Tax Act. If the property is leased in a 
 
 
09700HB2477ham001- 29 -LRB097 07323 PJG 51693 a


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 Use Tax Act,
as the case may 
4be, based on the fair market value of the property at the time

5the nonqualifying use occurs. No lessor shall collect or 
6attempt to collect
an amount (however designated) that purports 
7to reimburse that lessor for the
tax imposed by this Act or the 
8Use Tax Act, as the case may be, if the tax has
not been paid by 
9the lessor. If a lessor improperly collects any such amount

10from the lessee, the lessee shall have a legal right to claim a 
11refund of that
amount from the lessor. If, however, that amount 
12is not refunded to the lessee
for any reason, the lessor is 
13liable to pay that amount to the Department.
This paragraph is 
14exempt from the provisions of Section 3-75.

15 (26) Beginning January 1, 2008, tangible personal property 
16used in the construction or maintenance of a community water 
17supply, as defined under Section 3.145 of the Environmental 
18Protection Act, that is operated by a not-for-profit 
19corporation that holds a valid water supply permit issued under 
20Title IV of the Environmental Protection Act. This paragraph is 
21exempt from the provisions of Section 3-75.

22 (27) Beginning January 1, 2010, materials, parts, 
23equipment, components, and furnishings incorporated into or 
24upon an aircraft as part of the modification, refurbishment, 
25completion, replacement, repair, or maintenance of the 
26aircraft. This exemption includes consumable supplies used in 
 
 
09700HB2477ham001- 30 -LRB097 07323 PJG 51693 a


1the modification, refurbishment, completion, replacement, 
2repair, and maintenance of aircraft, but excludes any 
3materials, parts, equipment, components, and consumable 
4supplies used in the modification, replacement, repair, and 
5maintenance of aircraft engines or power plants, whether such 
6engines or power plants are installed or uninstalled upon any 
7such aircraft. "Consumable supplies" include, but are not 
8limited to, adhesive, tape, sandpaper, general purpose 
9lubricants, cleaning solution, latex gloves, and protective 
10films. This exemption applies only to those organizations that 
11(i) hold an Air Agency Certificate and are empowered to operate 
12an approved repair station by the Federal Aviation 
13Administration, (ii) have a Class IV Rating, and (iii) conduct 
14operations in accordance with Part 145 of the Federal Aviation 
15Regulations. The exemption does not include aircraft operated 
16by a commercial air carrier providing scheduled passenger air 
17service pursuant to authority issued under Part 121 or Part 129 
18of the Federal Aviation Regulations. 
19 (28) Tangible personal property purchased by a 
20public-facilities corporation, as described in Section 
2111-65-10 of the Illinois Municipal Code, for purposes of 
22constructing or furnishing a municipal convention hall, but 
23only if the legal title to the municipal convention hall is 
24transferred to the municipality without any further 
25consideration by or on behalf of the municipality at the time 
26of the completion of the municipal convention hall or upon the 
 
 
09700HB2477ham001- 31 -LRB097 07323 PJG 51693 a


1retirement or redemption of any bonds or other debt instruments 
2issued by the public-facilities corporation in connection with 
3the development of the municipal convention hall. This 
4exemption includes existing public-facilities corporations as 
5provided in Section 11-65-25 of the Illinois Municipal Code. 
6This paragraph is exempt from the provisions of Section 3-75.
7 (29) Beginning on July 1, 2011, that part of the selling 
8price of motor fuel or
gasohol that exceeds $3.00 per gallon. 
9This paragraph is exempt from the provisions of Section 3-75. 
10(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, 
11eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; 
1296-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. 
137-2-10.)



14 Section 15. The Service Occupation Tax Act is amended by 
15changing Section 3-5 as follows:



16 (35 ILCS 115/3-5)


17 Sec. 3-5. Exemptions. The following tangible personal 
18property is
exempt from the tax imposed by this Act:

19 (1) Personal property sold by a corporation, society, 
20association,
foundation, institution, or organization, other 
21than a limited liability
company, that is organized and 
22operated as a not-for-profit service enterprise
for the benefit 
23of persons 65 years of age or older if the personal property

24was not purchased by the enterprise for the purpose of resale 
 
 
09700HB2477ham001- 32 -LRB097 07323 PJG 51693 a


1by the
enterprise.

2 (2) Personal property purchased by a not-for-profit 
3Illinois county fair
association for use in conducting, 
4operating, or promoting the county fair.

5 (3) Personal property purchased by any not-for-profit
arts 
6or cultural organization that establishes, by proof required by 
7the
Department by
rule, that it has received an exemption under 
8Section 501(c)(3) of the
Internal Revenue Code and that is 
9organized and operated primarily for the
presentation
or 
10support of arts or cultural programming, activities, or 
11services. These
organizations include, but are not limited to, 
12music and dramatic arts
organizations such as symphony 
13orchestras and theatrical groups, arts and
cultural service 
14organizations, local arts councils, visual arts organizations,

15and media arts organizations.
On and after the effective date 
16of this amendatory Act of the 92nd General
Assembly, however, 
17an entity otherwise eligible for this exemption shall not
make 
18tax-free purchases unless it has an active identification 
19number issued by
the Department.

20 (4) Legal tender, currency, medallions, or gold or silver 
21coinage
issued by the State of Illinois, the government of the 
22United States of
America, or the government of any foreign 
23country, and bullion.

24 (5) Until July 1, 2003 and beginning again on September 1, 
252004 through August 30, 2014, graphic arts machinery and 
26equipment, including
repair and
replacement parts, both new and 
 
 
09700HB2477ham001- 33 -LRB097 07323 PJG 51693 a


1used, and including that manufactured on
special order or 
2purchased for lease, certified by the purchaser to be used

3primarily for graphic arts production.
Equipment includes 
4chemicals or chemicals acting as catalysts but only if
the

5chemicals or chemicals acting as catalysts effect a direct and 
6immediate change
upon a graphic arts product.

7 (6) Personal property sold by a teacher-sponsored student 
8organization
affiliated with an elementary or secondary school 
9located in Illinois.

10 (7) Farm machinery and equipment, both new and used, 
11including that
manufactured on special order, certified by the 
12purchaser to be used
primarily for production agriculture or 
13State or federal agricultural
programs, including individual 
14replacement parts for the machinery and
equipment, including 
15machinery and equipment purchased for lease,
and including 
16implements of husbandry defined in Section 1-130 of
the 
17Illinois Vehicle Code, farm machinery and agricultural 
18chemical and
fertilizer spreaders, and nurse wagons required to 
19be registered
under Section 3-809 of the Illinois Vehicle Code,

20but
excluding other motor vehicles required to be registered 
21under the Illinois
Vehicle
Code.
Horticultural polyhouses or 
22hoop houses used for propagating, growing, or
overwintering 
23plants shall be considered farm machinery and equipment under

24this item (7).
Agricultural chemical tender tanks and dry boxes 
25shall include units sold
separately from a motor vehicle 
26required to be licensed and units sold mounted
on a motor 
 
 
09700HB2477ham001- 34 -LRB097 07323 PJG 51693 a


1vehicle required to be licensed if the selling price of the 
2tender
is separately stated.

3 Farm machinery and equipment shall include precision 
4farming equipment
that is
installed or purchased to be 
5installed on farm machinery and equipment
including, but not 
6limited to, tractors, harvesters, sprayers, planters,
seeders, 
7or spreaders.
Precision farming equipment includes, but is not 
8limited to,
soil testing sensors, computers, monitors, 
9software, global positioning
and mapping systems, and other 
10such equipment.

11 Farm machinery and equipment also includes computers, 
12sensors, software, and
related equipment used primarily in the

13computer-assisted operation of production agriculture 
14facilities, equipment,
and activities such as, but
not limited 
15to,
the collection, monitoring, and correlation of
animal and 
16crop data for the purpose of
formulating animal diets and 
17agricultural chemicals. This item (7) is exempt
from the 
18provisions of
Section 3-55.

19 (8) Fuel and petroleum products sold to or used by an air 
20common
carrier, certified by the carrier to be used for 
21consumption, shipment,
or storage in the conduct of its 
22business as an air common carrier, for
a flight destined for or 
23returning from a location or locations
outside the United 
24States without regard to previous or subsequent domestic

25stopovers.

26 (9) Proceeds of mandatory service charges separately

 
 
09700HB2477ham001- 35 -LRB097 07323 PJG 51693 a


1stated on customers' bills for the purchase and consumption of 
2food and
beverages, to the extent that the proceeds of the 
3service charge are in fact
turned over as tips or as a 
4substitute for tips to the employees who
participate directly 
5in preparing, serving, hosting or cleaning up the
food or 
6beverage function with respect to which the service charge is 
7imposed.

8 (10) Until July 1, 2003, oil field exploration, drilling, 
9and production
equipment,
including (i) rigs and parts of rigs, 
10rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and 
11tubular goods, including casing and
drill strings, (iii) pumps 
12and pump-jack units, (iv) storage tanks and flow
lines, (v) any 
13individual replacement part for oil field exploration,

14drilling, and production equipment, and (vi) machinery and 
15equipment purchased
for lease; but
excluding motor vehicles 
16required to be registered under the Illinois
Vehicle Code.

17 (11) Photoprocessing machinery and equipment, including 
18repair and
replacement parts, both new and used, including that 
19manufactured on
special order, certified by the purchaser to be 
20used primarily for
photoprocessing, and including 
21photoprocessing machinery and equipment
purchased for lease.

22 (12) Until July 1, 2003, coal exploration, mining, 
23offhighway hauling,
processing,
maintenance, and reclamation 
24equipment, including
replacement parts and equipment, and 
25including
equipment
purchased for lease, but excluding motor 
26vehicles required to be registered
under the Illinois Vehicle 
 
 
09700HB2477ham001- 36 -LRB097 07323 PJG 51693 a


1Code.

2 (13) Beginning January 1, 1992 and through June 30, 2011, 
3food for human consumption that is to be consumed off the 
4premises
where it is sold (other than alcoholic beverages, soft 
5drinks and food that
has been prepared for immediate 
6consumption) and prescription and
non-prescription medicines, 
7drugs, medical appliances, and insulin, urine
testing 
8materials, syringes, and needles used by diabetics, for human 
9use,
when purchased for use by a person receiving medical 
10assistance under
Article V of the Illinois Public Aid Code who 
11resides in a licensed
long-term care facility, as defined in 
12the Nursing Home Care Act, or in a licensed facility as defined 
13in the MR/DD Community Care Act.

14 (14) Semen used for artificial insemination of livestock 
15for direct
agricultural production.

16 (15) 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 (15) is exempt from the provisions 
22of Section 3-55, and the exemption provided for under this item 
23(15) applies for all periods beginning May 30, 1995, but no 
24claim for credit or refund is allowed on or after January 1, 
252008 (the effective date of Public Act 95-88)
for such taxes 
26paid during the period beginning May 30, 2000 and ending on 
 
 
09700HB2477ham001- 37 -LRB097 07323 PJG 51693 a


1January 1, 2008 (the effective date of Public Act 95-88).

2 (16) Computers and communications equipment utilized for 
3any
hospital
purpose
and equipment used in the diagnosis,

4analysis, or treatment of hospital patients sold to a lessor 
5who leases the
equipment, under a lease of one year or longer 
6executed or in effect at the
time of the purchase, to a

7hospital
that has been issued an active tax exemption 
8identification number by the
Department under Section 1g of the 
9Retailers' Occupation Tax Act.

10 (17) Personal property sold to a lessor who leases the

11property, under a
lease of one year or longer executed or in 
12effect at the time of the purchase,
to a governmental body
that 
13has been issued an active tax exemption identification number 
14by the
Department under Section 1g of the Retailers' Occupation 
15Tax Act.

16 (18) Beginning with taxable years ending on or after 
17December
31, 1995
and
ending with taxable years ending on or 
18before December 31, 2004,
personal property that is
donated for 
19disaster relief to be used in a State or federally declared

20disaster area in Illinois or bordering Illinois by a 
21manufacturer or retailer
that is registered in this State to a 
22corporation, society, association,
foundation, or institution 
23that has been issued a sales tax exemption
identification 
24number by the Department that assists victims of the disaster

25who reside within the declared disaster area.

26 (19) Beginning with taxable years ending on or after 
 
 
09700HB2477ham001- 38 -LRB097 07323 PJG 51693 a


1December
31, 1995 and
ending with taxable years ending on or 
2before December 31, 2004, personal
property that is used in the 
3performance of infrastructure repairs in this
State, including 
4but not limited to municipal roads and streets, access roads,

5bridges, sidewalks, waste disposal systems, water and sewer 
6line extensions,
water distribution and purification 
7facilities, storm water drainage and
retention facilities, and 
8sewage treatment facilities, resulting from a State
or 
9federally declared disaster in Illinois or bordering Illinois 
10when such
repairs are initiated on facilities located in the 
11declared disaster area
within 6 months after the disaster.

12 (20) Beginning July 1, 1999, game or game birds sold at a 
13"game breeding
and
hunting preserve area" or an "exotic game 
14hunting area" as those terms are used
in the
Wildlife Code or 
15at a hunting enclosure approved through rules adopted by the

16Department of Natural Resources. This paragraph is exempt from 
17the provisions
of
Section 3-55.

18 (21) A motor vehicle, as that term is defined in Section 
191-146
of the
Illinois Vehicle Code, that is donated to a 
20corporation, limited liability
company, society, association, 
21foundation, or institution that is determined by
the Department 
22to be organized and operated exclusively for educational

23purposes. For purposes of this exemption, "a corporation, 
24limited liability
company, society, association, foundation, 
25or institution organized and
operated
exclusively for 
26educational purposes" means all tax-supported public schools,

 
 
09700HB2477ham001- 39 -LRB097 07323 PJG 51693 a


1private schools that offer systematic instruction in useful 
2branches of
learning by methods common to public schools and 
3that compare favorably in
their scope and intensity with the 
4course of study presented in tax-supported
schools, and 
5vocational or technical schools or institutes organized and

6operated exclusively to provide a course of study of not less 
7than 6 weeks
duration and designed to prepare individuals to 
8follow a trade or to pursue a
manual, technical, mechanical, 
9industrial, business, or commercial
occupation.

10 (22) Beginning January 1, 2000, personal property, 
11including
food,
purchased through fundraising
events for the 
12benefit of
a public or private elementary or
secondary school, 
13a group of those schools, or one or more school
districts if 
14the events are
sponsored by an entity recognized by the school 
15district that consists
primarily of volunteers and includes

16parents and teachers of the school children. This paragraph 
17does not apply
to fundraising
events (i) for the benefit of 
18private home instruction or (ii)
for which the fundraising 
19entity purchases the personal property sold at
the events from 
20another individual or entity that sold the property for the

21purpose of resale by the fundraising entity and that
profits 
22from the sale to the
fundraising entity. This paragraph is 
23exempt
from the provisions
of Section 3-55.

24 (23) Beginning January 1, 2000
and through December 31, 
252001, new or used automatic vending
machines that prepare and 
26serve hot food and beverages, including coffee, soup,
and
other 
 
 
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1items, and replacement parts for these machines.
Beginning 
2January 1,
2002 and through June 30, 2003, machines and parts 
3for
machines used in commercial, coin-operated amusement
and 
4vending business if a use or occupation tax is paid on the 
5gross receipts
derived from
the use of the commercial, 
6coin-operated amusement and vending machines.
This paragraph 
7is exempt from the provisions of Section 3-55.

8 (24) Beginning
on the effective date of this amendatory Act 
9of the 92nd General Assembly,
computers and communications 
10equipment
utilized for any hospital purpose and equipment used 
11in the diagnosis,
analysis, or treatment of hospital patients 
12sold to a lessor who leases the
equipment, under a lease of one 
13year or longer executed or in effect at the
time of the 
14purchase, to a hospital that has been issued an active tax

15exemption identification number by the Department under 
16Section 1g of the
Retailers' Occupation Tax Act. This paragraph 
17is exempt from the provisions of
Section 3-55.

18 (25) Beginning
on the effective date of this amendatory Act 
19of the 92nd General Assembly,
personal property sold to a 
20lessor who
leases the property, under a lease of one year or 
21longer executed or in effect
at the time of the purchase, to a 
22governmental body that has been issued an
active tax exemption 
23identification number by the Department under Section 1g
of the 
24Retailers' Occupation Tax Act. This paragraph is exempt from 
25the
provisions of Section 3-55.

26 (26) Beginning on January 1, 2002 and through June 30, 
 
 
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12011, tangible personal property
purchased
from an Illinois 
2retailer by a taxpayer engaged in centralized purchasing

3activities in Illinois who will, upon receipt of the property 
4in Illinois,
temporarily store the property in Illinois (i) for 
5the purpose of subsequently
transporting it outside this State 
6for use or consumption thereafter solely
outside this State or 
7(ii) for the purpose of being processed, fabricated, or

8manufactured into, attached to, or incorporated into other 
9tangible personal
property to be transported outside this State 
10and thereafter used or consumed
solely outside this State. The 
11Director of Revenue shall, pursuant to rules
adopted in 
12accordance with the Illinois Administrative Procedure Act, 
13issue a
permit to any taxpayer in good standing with the 
14Department who is eligible for
the exemption under this 
15paragraph (26). The permit issued under
this paragraph (26) 
16shall authorize the holder, to the extent and
in the manner 
17specified in the rules adopted under this Act, to purchase

18tangible personal property from a retailer exempt from the 
19taxes imposed by
this Act. Taxpayers shall maintain all 
20necessary books and records to
substantiate the use and 
21consumption of all such tangible personal property
outside of 
22the State of Illinois.

23 (27) Beginning January 1, 2008, tangible personal property 
24used in the construction or maintenance of a community water 
25supply, as defined under Section 3.145 of the Environmental 
26Protection Act, that is operated by a not-for-profit 
 
 
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1corporation that holds a valid water supply permit issued under 
2Title IV of the Environmental Protection Act. This paragraph is 
3exempt from the provisions of Section 3-55.

4 (28) Tangible personal property sold to a 
5public-facilities corporation, as described in Section 
611-65-10 of the Illinois Municipal Code, for purposes of 
7constructing or furnishing a municipal convention hall, but 
8only if the legal title to the municipal convention hall is 
9transferred to the municipality without any further 
10consideration by or on behalf of the municipality at the time 
11of the completion of the municipal convention hall or upon the 
12retirement or redemption of any bonds or other debt instruments 
13issued by the public-facilities corporation in connection with 
14the development of the municipal convention hall. This 
15exemption includes existing public-facilities corporations as 
16provided in Section 11-65-25 of the Illinois Municipal Code. 
17This paragraph is exempt from the provisions of Section 3-55. 
18 (29) Beginning January 1, 2010, materials, parts, 
19equipment, components, and furnishings incorporated into or 
20upon an aircraft as part of the modification, refurbishment, 
21completion, replacement, repair, or maintenance of the 
22aircraft. This exemption includes consumable supplies used in 
23the modification, refurbishment, completion, replacement, 
24repair, and maintenance of aircraft, but excludes any 
25materials, parts, equipment, components, and consumable 
26supplies used in the modification, replacement, repair, and 
 
 
09700HB2477ham001- 43 -LRB097 07323 PJG 51693 a


1maintenance of aircraft engines or power plants, whether such 
2engines or power plants are installed or uninstalled upon any 
3such aircraft. "Consumable supplies" include, but are not 
4limited to, adhesive, tape, sandpaper, general purpose 
5lubricants, cleaning solution, latex gloves, and protective 
6films. This exemption applies only to those organizations that 
7(i) hold an Air Agency Certificate and are empowered to operate 
8an approved repair station by the Federal Aviation 
9Administration, (ii) have a Class IV Rating, and (iii) conduct 
10operations in accordance with Part 145 of the Federal Aviation 
11Regulations. The exemption does not include aircraft operated 
12by a commercial air carrier providing scheduled passenger air 
13service pursuant to authority issued under Part 121 or Part 129 
14of the Federal Aviation Regulations.
15 (30) Beginning on July 1, 2011, that part of the selling 
16price of motor fuel or
gasohol that exceeds $3.00 per gallon. 
17This paragraph is exempt from the provisions of Section 3-55. 
18(Source: P.A. 95-88, eff. 1-1-08; 95-538, eff. 1-1-08; 95-876, 
19eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; 
2096-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. 
217-2-10.)



22 Section 20. The Retailers' Occupation Tax Act is amended by 
23changing Section 2-5 as follows:




24 (35 ILCS 120/2-5)


 
 
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1 Sec. 2-5. Exemptions. Gross receipts from proceeds from the 
2sale of
the following tangible personal property are exempt 
3from the tax imposed
by this Act:

4 (1) Farm chemicals.

5 (2) Farm machinery and equipment, both new and used, 
6including that
manufactured on special order, certified by the 
7purchaser to be used
primarily for production agriculture or 
8State or federal agricultural
programs, including individual 
9replacement parts for the machinery and
equipment, including 
10machinery and equipment purchased for lease,
and including 
11implements of husbandry defined in Section 1-130 of
the 
12Illinois Vehicle Code, farm machinery and agricultural 
13chemical and
fertilizer spreaders, and nurse wagons required to 
14be registered
under Section 3-809 of the Illinois Vehicle Code,

15but
excluding other motor vehicles required to be registered 
16under the Illinois
Vehicle Code.
Horticultural polyhouses or 
17hoop houses used for propagating, growing, or
overwintering 
18plants shall be considered farm machinery and equipment under

19this item (2).
Agricultural chemical tender tanks and dry boxes 
20shall include units sold
separately from a motor vehicle 
21required to be licensed and units sold mounted
on a motor 
22vehicle required to be licensed, if the selling price of the 
23tender
is separately stated.

24 Farm machinery and equipment shall include precision 
25farming equipment
that is
installed or purchased to be 
26installed on farm machinery and equipment
including, but not 
 
 
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1limited to, tractors, harvesters, sprayers, planters,
seeders, 
2or spreaders.
Precision farming equipment includes, but is not 
3limited to,
soil testing sensors, computers, monitors, 
4software, global positioning
and mapping systems, and other 
5such equipment.

6 Farm machinery and equipment also includes computers, 
7sensors, software, and
related equipment used primarily in the

8computer-assisted operation of production agriculture 
9facilities, equipment,
and activities such as, but
not limited 
10to,
the collection, monitoring, and correlation of
animal and 
11crop data for the purpose of
formulating animal diets and 
12agricultural chemicals. This item (7) is exempt
from the 
13provisions of
Section 2-70.

14 (3) Until July 1, 2003, distillation machinery and 
15equipment, sold as a
unit or kit,
assembled or installed by the 
16retailer, certified by the user to be used
only for the 
17production of ethyl alcohol that will be used for consumption

18as motor fuel or as a component of motor fuel for the personal 
19use of the
user, and not subject to sale or resale.

20 (4) Until July 1, 2003 and beginning again September 1, 
212004 through August 30, 2014, graphic arts machinery and 
22equipment, including
repair and
replacement parts, both new and 
23used, and including that manufactured on
special order or 
24purchased for lease, certified by the purchaser to be used

25primarily for graphic arts production.
Equipment includes 
26chemicals or
chemicals acting as catalysts but only if
the 
 
 
09700HB2477ham001- 46 -LRB097 07323 PJG 51693 a


1chemicals or chemicals acting as catalysts effect a direct and 
2immediate
change upon a
graphic arts product.

3 (5) A motor vehicle of the first division, a motor vehicle 
4of the second division that is a self contained motor vehicle 
5designed or permanently converted to provide living quarters 
6for recreational, camping, or travel use, with direct walk 
7through access to the living quarters from the driver's seat, 
8or a motor vehicle of the second division that is of the van 
9configuration designed for the transportation of not less than 
107 nor more than 16 passengers, as defined in Section 1-146 of 
11the Illinois Vehicle Code, that is used for automobile renting, 
12as defined in the Automobile Renting Occupation and Use Tax 
13Act. This paragraph is exempt from
the provisions of Section 
142-70.

15 (6) Personal property sold by a teacher-sponsored student 
16organization
affiliated with an elementary or secondary school 
17located in Illinois.

18 (7) Until July 1, 2003, proceeds of that portion of the 
19selling price of
a passenger car the
sale of which is subject 
20to the Replacement Vehicle Tax.

21 (8) Personal property sold to an Illinois county fair 
22association for
use in conducting, operating, or promoting the 
23county fair.

24 (9) Personal property sold to a not-for-profit arts
or 
25cultural organization that establishes, by proof required by 
26the Department
by
rule, that it has received an exemption under 
 
 
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1Section 501(c)(3) of the
Internal Revenue Code and that is 
2organized and operated primarily for the
presentation
or 
3support of arts or cultural programming, activities, or 
4services. These
organizations include, but are not limited to, 
5music and dramatic arts
organizations such as symphony 
6orchestras and theatrical groups, arts and
cultural service 
7organizations, local arts councils, visual arts organizations,

8and media arts organizations.
On and after the effective date 
9of this amendatory Act of the 92nd General
Assembly, however, 
10an entity otherwise eligible for this exemption shall not
make 
11tax-free purchases unless it has an active identification 
12number issued by
the Department.

13 (10) Personal property sold by a corporation, society, 
14association,
foundation, institution, or organization, other 
15than a limited liability
company, that is organized and 
16operated as a not-for-profit service enterprise
for the benefit 
17of persons 65 years of age or older if the personal property

18was not purchased by the enterprise for the purpose of resale 
19by the
enterprise.

20 (11) Personal property sold to a governmental body, to a 
21corporation,
society, association, foundation, or institution 
22organized and operated
exclusively for charitable, religious, 
23or educational purposes, or to a
not-for-profit corporation, 
24society, association, foundation, institution,
or organization 
25that has no compensated officers or employees and that is

26organized and operated primarily for the recreation of persons 
 
 
09700HB2477ham001- 48 -LRB097 07323 PJG 51693 a


155 years of
age or older. A limited liability company may 
2qualify for the exemption under
this paragraph only if the 
3limited liability company is organized and operated

4exclusively for educational purposes. On and after July 1, 
51987, however, no
entity otherwise eligible for this exemption 
6shall make tax-free purchases
unless it has an active 
7identification number issued by the Department.

8 (12) Tangible personal property sold to
interstate 
9carriers
for hire for use as
rolling stock moving in interstate 
10commerce or to lessors under leases of
one year or longer 
11executed or in effect at the time of purchase by
interstate 
12carriers for hire for use as rolling stock moving in interstate

13commerce and equipment operated by a telecommunications 
14provider, licensed as a
common carrier by the Federal 
15Communications Commission, which is permanently
installed in 
16or affixed to aircraft moving in interstate commerce.

17 (12-5) On and after July 1, 2003 and through June 30, 2004, 
18motor vehicles of the second division
with a gross vehicle 
19weight in excess of 8,000 pounds
that
are
subject to the 
20commercial distribution fee imposed under Section 3-815.1 of

21the Illinois
Vehicle Code. Beginning on July 1, 2004 and 
22through June 30, 2005, the use in this State of motor vehicles 
23of the second division: (i) with a gross vehicle weight rating 
24in excess of 8,000 pounds; (ii) that are subject to the 
25commercial distribution fee imposed under Section 3-815.1 of 
26the Illinois Vehicle Code; and (iii) that are primarily used 
 
 
09700HB2477ham001- 49 -LRB097 07323 PJG 51693 a


1for commercial purposes. Through June 30, 2005, this
exemption 
2applies to repair and replacement parts added
after the
initial 
3purchase of such a motor vehicle if that motor vehicle is used 
4in a
manner that
would qualify for the rolling stock exemption 
5otherwise provided for in this
Act. For purposes of this 
6paragraph, "used for commercial purposes" means the 
7transportation of persons or property in furtherance of any 
8commercial or industrial enterprise whether for-hire or not.


9 (13) Proceeds from sales to owners, lessors, or
shippers of

10tangible personal property that is utilized by interstate 
11carriers for
hire for use as rolling stock moving in interstate 
12commerce
and equipment operated by a telecommunications 
13provider, licensed as a
common carrier by the Federal 
14Communications Commission, which is
permanently installed in 
15or affixed to aircraft moving in interstate commerce.

16 (14) Machinery and equipment that will be used by the 
17purchaser, or a
lessee of the purchaser, primarily in the 
18process of manufacturing or
assembling tangible personal 
19property for wholesale or retail sale or
lease, whether the 
20sale or lease is made directly by the manufacturer or by
some 
21other person, whether the materials used in the process are 
22owned by
the manufacturer or some other person, or whether the 
23sale or lease is made
apart from or as an incident to the 
24seller's engaging in the service
occupation of producing 
25machines, tools, dies, jigs, patterns, gauges, or
other similar 
26items of no commercial value on special order for a particular

 
 
09700HB2477ham001- 50 -LRB097 07323 PJG 51693 a


1purchaser.

2 (15) Proceeds of mandatory service charges separately 
3stated on
customers' bills for purchase and consumption of food 
4and beverages, to the
extent that the proceeds of the service 
5charge are in fact turned over as
tips or as a substitute for 
6tips to the employees who participate directly
in preparing, 
7serving, hosting or cleaning up the food or beverage function

8with respect to which the service charge is imposed.

9 (16) Petroleum products sold to a purchaser if the seller

10is prohibited by federal law from charging tax to the 
11purchaser.

12 (17) Tangible personal property sold to a common carrier by 
13rail or
motor that
receives the physical possession of the 
14property in Illinois and that
transports the property, or 
15shares with another common carrier in the
transportation of the 
16property, out of Illinois on a standard uniform bill
of lading 
17showing the seller of the property as the shipper or consignor 
18of
the property to a destination outside Illinois, for use 
19outside Illinois.

20 (18) Legal tender, currency, medallions, or gold or silver 
21coinage
issued by the State of Illinois, the government of the 
22United States of
America, or the government of any foreign 
23country, and bullion.

24 (19) Until July 1 2003, oil field exploration, drilling, 
25and production
equipment, including
(i) rigs and parts of rigs, 
26rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and 
 
 
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1tubular goods, including casing and
drill strings, (iii) pumps 
2and pump-jack units, (iv) storage tanks and flow
lines, (v) any 
3individual replacement part for oil field exploration,

4drilling, and production equipment, and (vi) machinery and 
5equipment purchased
for lease; but
excluding motor vehicles 
6required to be registered under the Illinois
Vehicle Code.

7 (20) Photoprocessing machinery and equipment, including 
8repair and
replacement parts, both new and used, including that 
9manufactured on
special order, certified by the purchaser to be 
10used primarily for
photoprocessing, and including 
11photoprocessing machinery and equipment
purchased for lease.

12 (21) Until July 1, 2003, coal exploration, mining, 
13offhighway hauling,
processing,
maintenance, and reclamation 
14equipment, including
replacement parts and equipment, and 
15including
equipment purchased for lease, but excluding motor 
16vehicles required to be
registered under the Illinois Vehicle 
17Code.

18 (22) Fuel and petroleum products sold to or used by an air 
19carrier,
certified by the carrier to be used for consumption, 
20shipment, or storage
in the conduct of its business as an air 
21common carrier, for a flight
destined for or returning from a 
22location or locations
outside the United States without regard 
23to previous or subsequent domestic
stopovers.

24 (23) A transaction in which the purchase order is received 
25by a florist
who is located outside Illinois, but who has a 
26florist located in Illinois
deliver the property to the 
 
 
09700HB2477ham001- 52 -LRB097 07323 PJG 51693 a


1purchaser or the purchaser's donee in Illinois.

2 (24) Fuel consumed or used in the operation of ships, 
3barges, or vessels
that are used primarily in or for the 
4transportation of property or the
conveyance of persons for 
5hire on rivers bordering on this State if the
fuel is delivered 
6by the seller to the purchaser's barge, ship, or vessel
while 
7it is afloat upon that bordering river.

8 (25) Except as provided in item (25-5) of this Section, a

9motor vehicle sold in this State to a nonresident even though 
10the
motor vehicle is delivered to the nonresident in this 
11State, if the motor
vehicle is not to be titled in this State, 
12and if a drive-away permit
is issued to the motor vehicle as 
13provided in Section 3-603 of the Illinois
Vehicle Code or if 
14the nonresident purchaser has vehicle registration
plates to 
15transfer to the motor vehicle upon returning to his or her home

16state. The issuance of the drive-away permit or having
the

17out-of-state registration plates to be transferred is prima 
18facie evidence
that the motor vehicle will not be titled in 
19this State.

20 (25-5) The exemption under item (25) does not apply if the 
21state in which the motor vehicle will be titled does not allow 
22a reciprocal exemption for a motor vehicle sold and delivered 
23in that state to an Illinois resident but titled in Illinois. 
24The tax collected under this Act on the sale of a motor vehicle 
25in this State to a resident of another state that does not 
26allow a reciprocal exemption shall be imposed at a rate equal 
 
 
09700HB2477ham001- 53 -LRB097 07323 PJG 51693 a


1to the state's rate of tax on taxable property in the state in 
2which the purchaser is a resident, except that the tax shall 
3not exceed the tax that would otherwise be imposed under this 
4Act. At the time of the sale, the purchaser shall execute a 
5statement, signed under penalty of perjury, of his or her 
6intent to title the vehicle in the state in which the purchaser 
7is a resident within 30 days after the sale and of the fact of 
8the payment to the State of Illinois of tax in an amount 
9equivalent to the state's rate of tax on taxable property in 
10his or her state of residence and shall submit the statement to 
11the appropriate tax collection agency in his or her state of 
12residence. In addition, the retailer must retain a signed copy 
13of the statement in his or her records. Nothing in this item 
14shall be construed to require the removal of the vehicle from 
15this state following the filing of an intent to title the 
16vehicle in the purchaser's state of residence if the purchaser 
17titles the vehicle in his or her state of residence within 30 
18days after the date of sale. The tax collected under this Act 
19in accordance with this item (25-5) shall be proportionately 
20distributed as if the tax were collected at the 6.25% general 
21rate imposed under this Act.

22 (25-7) Beginning on July 1, 2007, no tax is imposed under 
23this Act on the sale of an aircraft, as defined in Section 3 of 
24the Illinois Aeronautics Act, if all of the following 
25conditions are met:
26  (1) the aircraft leaves this State within 15 days after 
 
 
09700HB2477ham001- 54 -LRB097 07323 PJG 51693 a


1 the later of either the issuance of the final billing for 
2 the sale of the aircraft, or the authorized approval for 
3 return to service, completion of the maintenance record 
4 entry, and completion of the test flight and ground test 
5 for inspection, as required by 14 C.F.R. 91.407;
6  (2) the aircraft is not based or registered in this 
7 State after the sale of the aircraft; and
8  (3) the seller retains in his or her books and records 
9 and provides to the Department a signed and dated 
10 certification from the purchaser, on a form prescribed by 
11 the Department, certifying that the requirements of this 
12 item (25-7) are met. The certificate must also include the 
13 name and address of the purchaser, the address of the 
14 location where the aircraft is to be titled or registered, 
15 the address of the primary physical location of the 
16 aircraft, and other information that the Department may 
17 reasonably require.
18 For purposes of this item (25-7):
19 "Based in this State" means hangared, stored, or otherwise 
20used, excluding post-sale customizations as defined in this 
21Section, for 10 or more days in each 12-month period 
22immediately following the date of the sale of the aircraft.
23 "Registered in this State" means an aircraft registered 
24with the Department of Transportation, Aeronautics Division, 
25or titled or registered with the Federal Aviation 
26Administration to an address located in this State.
 
 
09700HB2477ham001- 55 -LRB097 07323 PJG 51693 a


1 This paragraph (25-7) is exempt from the provisions
of

2Section 2-70.

3 (26) Semen used for artificial insemination of livestock 
4for direct
agricultural production.

5 (27) Horses, or interests in horses, registered with and 
6meeting the
requirements of any of the
Arabian Horse Club 
7Registry of America, Appaloosa Horse Club, American Quarter

8Horse Association, United States
Trotting Association, or 
9Jockey Club, as appropriate, used for
purposes of breeding or 
10racing for prizes. This item (27) is exempt from the provisions 
11of Section 2-70, and the exemption provided for under this item 
12(27) applies for all periods beginning May 30, 1995, but no 
13claim for credit or refund is allowed on or after January 1, 
142008 (the effective date of Public Act 95-88)
for such taxes 
15paid during the period beginning May 30, 2000 and ending on 
16January 1, 2008 (the effective date of Public Act 95-88).

17 (28) Computers and communications equipment utilized for 
18any
hospital
purpose
and equipment used in the diagnosis,

19analysis, or treatment of hospital patients sold to a lessor 
20who leases the
equipment, under a lease of one year or longer 
21executed or in effect at the
time of the purchase, to a

22hospital
that has been issued an active tax exemption 
23identification number by the
Department under Section 1g of 
24this Act.

25 (29) Personal property sold to a lessor who leases the

26property, under a
lease of one year or longer executed or in 
 
 
09700HB2477ham001- 56 -LRB097 07323 PJG 51693 a


1effect at the time of the purchase,
to a governmental body
that 
2has been issued an active tax exemption identification number 
3by the
Department under Section 1g of this Act.

4 (30) Beginning with taxable years ending on or after 
5December
31, 1995
and
ending with taxable years ending on or 
6before December 31, 2004,
personal property that is
donated for 
7disaster relief to be used in a State or federally declared

8disaster area in Illinois or bordering Illinois by a 
9manufacturer or retailer
that is registered in this State to a 
10corporation, society, association,
foundation, or institution 
11that has been issued a sales tax exemption
identification 
12number by the Department that assists victims of the disaster

13who reside within the declared disaster area.

14 (31) 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 used in the 
17performance of infrastructure repairs in this
State, including 
18but not limited to municipal roads and streets, access roads,

19bridges, sidewalks, waste disposal systems, water and sewer 
20line extensions,
water distribution and purification 
21facilities, storm water drainage and
retention facilities, and 
22sewage treatment facilities, resulting from a State
or 
23federally declared disaster in Illinois or bordering Illinois 
24when such
repairs are initiated on facilities located in the 
25declared disaster area
within 6 months after the disaster.

26 (32) Beginning July 1, 1999, game or game birds sold at a 
 
 
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1"game breeding
and
hunting preserve area" or an "exotic game 
2hunting area" as those terms are used
in the
Wildlife Code or 
3at a hunting enclosure approved through rules adopted by the

4Department of Natural Resources. This paragraph is exempt from 
5the provisions
of
Section 2-70.

6 (33) A motor vehicle, as that term is defined in Section 
71-146
of the
Illinois Vehicle Code, that is donated to a 
8corporation, limited liability
company, society, association, 
9foundation, or institution that is determined by
the Department 
10to be organized and operated exclusively for educational

11purposes. For purposes of this exemption, "a corporation, 
12limited liability
company, society, association, foundation, 
13or institution organized and
operated
exclusively for 
14educational purposes" means all tax-supported public schools,

15private schools that offer systematic instruction in useful 
16branches of
learning by methods common to public schools and 
17that compare favorably in
their scope and intensity with the 
18course of study presented in tax-supported
schools, and 
19vocational or technical schools or institutes organized and

20operated exclusively to provide a course of study of not less 
21than 6 weeks
duration and designed to prepare individuals to 
22follow a trade or to pursue a
manual, technical, mechanical, 
23industrial, business, or commercial
occupation.

24 (34) Beginning January 1, 2000, personal property, 
25including food, purchased
through fundraising events for the 
26benefit of a public or private elementary or
secondary school, 
 
 
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1a group of those schools, or one or more school districts if

2the events are sponsored by an entity recognized by the school 
3district that
consists primarily of volunteers and includes 
4parents and teachers of the
school children. This paragraph 
5does not apply to fundraising events (i) for
the benefit of 
6private home instruction or (ii) for which the fundraising

7entity purchases the personal property sold at the events from 
8another
individual or entity that sold the property for the 
9purpose of resale by the
fundraising entity and that profits 
10from the sale to the fundraising entity.
This paragraph is 
11exempt from the provisions of Section 2-70.

12 (35) Beginning January 1, 2000 and through December 31, 
132001, new or used
automatic vending machines that prepare and 
14serve hot food and beverages,
including coffee, soup, and other 
15items, and replacement parts for these
machines. Beginning 
16January 1, 2002 and through June 30, 2003, machines
and parts 
17for machines used in
commercial, coin-operated amusement and 
18vending business if a use or occupation
tax is paid on the 
19gross receipts derived from the use of the commercial,

20coin-operated amusement and vending machines. This paragraph 
21is exempt from
the provisions of Section 2-70.

22 (35-5) Beginning August 23, 2001 and through June 30, 2011, 
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 nonprescription medicines, 
 
 
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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 a licensed facility as defined in 
7the MR/DD Community Care Act.

8 (36) Beginning August 2, 2001, computers and 
9communications equipment
utilized for any hospital purpose and 
10equipment used in the diagnosis,
analysis, or treatment of 
11hospital patients sold to a lessor who leases the
equipment, 
12under a lease of one year or longer executed or in effect at 
13the
time of the purchase, to a hospital that has been issued an 
14active tax
exemption identification number by the Department 
15under Section 1g of this Act.
This paragraph is exempt from the 
16provisions of Section 2-70.

17 (37) Beginning August 2, 2001, personal property sold to a 
18lessor who
leases the property, under a lease of one year or 
19longer executed or in effect
at the time of the purchase, to a 
20governmental body that has been issued an
active tax exemption 
21identification number by the Department under Section 1g
of 
22this Act. This paragraph is exempt from the provisions of 
23Section 2-70.

24 (38) Beginning on January 1, 2002 and through June 30, 
252011, tangible personal property purchased
from an Illinois 
26retailer by a taxpayer engaged in centralized purchasing

 
 
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1activities in Illinois who will, upon receipt of the property 
2in Illinois,
temporarily store the property in Illinois (i) for 
3the purpose of subsequently
transporting it outside this State 
4for use or consumption thereafter solely
outside this State or 
5(ii) for the purpose of being processed, fabricated, or

6manufactured into, attached to, or incorporated into other 
7tangible personal
property to be transported outside this State 
8and thereafter used or consumed
solely outside this State. The 
9Director of Revenue shall, pursuant to rules
adopted in 
10accordance with the Illinois Administrative Procedure Act, 
11issue a
permit to any taxpayer in good standing with the 
12Department who is eligible for
the exemption under this 
13paragraph (38). The permit issued under
this paragraph (38) 
14shall authorize the holder, to the extent and
in the manner 
15specified in the rules adopted under this Act, to purchase

16tangible personal property from a retailer exempt from the 
17taxes imposed by
this Act. Taxpayers shall maintain all 
18necessary books and records to
substantiate the use and 
19consumption of all such tangible personal property
outside of 
20the State of Illinois.

21 (39) Beginning January 1, 2008, tangible personal property 
22used in the construction or maintenance of a community water 
23supply, as defined under Section 3.145 of the Environmental 
24Protection Act, that is operated by a not-for-profit 
25corporation that holds a valid water supply permit issued under 
26Title IV of the Environmental Protection Act. This paragraph is 
 
 
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1exempt from the provisions of Section 2-70.

2 (40) Beginning January 1, 2010, materials, parts, 
3equipment, components, and furnishings incorporated into or 
4upon an aircraft as part of the modification, refurbishment, 
5completion, replacement, repair, or maintenance of the 
6aircraft. This exemption includes consumable supplies used in 
7the modification, refurbishment, completion, replacement, 
8repair, and maintenance of aircraft, but excludes any 
9materials, parts, equipment, components, and consumable 
10supplies used in the modification, replacement, repair, and 
11maintenance of aircraft engines or power plants, whether such 
12engines or power plants are installed or uninstalled upon any 
13such aircraft. "Consumable supplies" include, but are not 
14limited to, adhesive, tape, sandpaper, general purpose 
15lubricants, cleaning solution, latex gloves, and protective 
16films. This exemption applies only to those organizations that 
17(i) hold an Air Agency Certificate and are empowered to operate 
18an approved repair station by the Federal Aviation 
19Administration, (ii) have a Class IV Rating, and (iii) conduct 
20operations in accordance with Part 145 of the Federal Aviation 
21Regulations. The exemption does not include aircraft operated 
22by a commercial air carrier providing scheduled passenger air 
23service pursuant to authority issued under Part 121 or Part 129 
24of the Federal Aviation Regulations. 
25 (41) Tangible personal property sold to a 
26public-facilities corporation, as described in Section 
 
 
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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 2-70.
13 (42) Beginning on July 1, 2011, that part of the selling 
14price of motor fuel or
gasohol that exceeds $3.00 per gallon. 
15This paragraph is exempt from the provisions of Section 2-70. 
16(Source: P.A. 95-88, eff. 1-1-08; 95-233, eff. 8-16-07; 95-304, 
17eff. 8-20-07; 95-538, eff. 1-1-08; 95-707, eff. 1-11-08; 
1895-876, eff. 8-21-08; 96-116, eff. 7-31-09; 96-339, eff. 
197-1-10; 96-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, 
20eff. 7-2-10.)




21 Section 99. Effective date. This Act takes effect upon 
22becoming law.".