Bill Text: IL HB3878 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides a hunting sales tax holiday on specified dates for firearms and firearm ammunition that may be used for lawful hunting under the Wildlife Code. Provides for administration of the hunting sales tax holiday by the Department of Revenue. Provides the Department of Revenue with rulemaking authority, including emergency rulemaking authority. Amends the Illinois Administrative Procedure Act to allow emergency rulemaking. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced) 2017-05-12 - Added Co-Sponsor Rep. Reginald Phillips [HB3878 Detail]

Download: Illinois-2017-HB3878-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3878

Introduced , by Rep. Daniel V. Beiser

SYNOPSIS AS INTRODUCED:
5 ILCS 100/5-45 from Ch. 127, par. 1005-45
35 ILCS 105/3-5
35 ILCS 105/3-6.5 new
35 ILCS 120/2-5
35 ILCS 120/2-8.5 new

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides a hunting sales tax holiday on specified dates for firearms and firearm ammunition that may be used for lawful hunting under the Wildlife Code. Provides for administration of the hunting sales tax holiday by the Department of Revenue. Provides the Department of Revenue with rulemaking authority, including emergency rulemaking authority. Amends the Illinois Administrative Procedure Act to allow emergency rulemaking. Effective immediately.
LRB100 10228 HLH 20411 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB3878LRB100 10228 HLH 20411 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Administrative Procedure Act is
5amended by changing Section 5-45 as follows:
6 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
7 (Text of Section before amendment by P.A. 99-906)
8 Sec. 5-45. Emergency rulemaking.
9 (a) "Emergency" means the existence of any situation that
10any agency finds reasonably constitutes a threat to the public
11interest, safety, or welfare.
12 (b) If any agency finds that an emergency exists that
13requires adoption of a rule upon fewer days than is required by
14Section 5-40 and states in writing its reasons for that
15finding, the agency may adopt an emergency rule without prior
16notice or hearing upon filing a notice of emergency rulemaking
17with the Secretary of State under Section 5-70. The notice
18shall include the text of the emergency rule and shall be
19published in the Illinois Register. Consent orders or other
20court orders adopting settlements negotiated by an agency may
21be adopted under this Section. Subject to applicable
22constitutional or statutory provisions, an emergency rule
23becomes effective immediately upon filing under Section 5-65 or

HB3878- 2 -LRB100 10228 HLH 20411 b
1at a stated date less than 10 days thereafter. The agency's
2finding and a statement of the specific reasons for the finding
3shall be filed with the rule. The agency shall take reasonable
4and appropriate measures to make emergency rules known to the
5persons who may be affected by them.
6 (c) An emergency rule may be effective for a period of not
7longer than 150 days, but the agency's authority to adopt an
8identical rule under Section 5-40 is not precluded. No
9emergency rule may be adopted more than once in any 24-month 24
10month period, except that this limitation on the number of
11emergency rules that may be adopted in a 24-month 24 month
12period does not apply to (i) emergency rules that make
13additions to and deletions from the Drug Manual under Section
145-5.16 of the Illinois Public Aid Code or the generic drug
15formulary under Section 3.14 of the Illinois Food, Drug and
16Cosmetic Act, (ii) emergency rules adopted by the Pollution
17Control Board before July 1, 1997 to implement portions of the
18Livestock Management Facilities Act, (iii) emergency rules
19adopted by the Illinois Department of Public Health under
20subsections (a) through (i) of Section 2 of the Department of
21Public Health Act when necessary to protect the public's
22health, (iv) emergency rules adopted pursuant to subsection (n)
23of this Section, (v) emergency rules adopted pursuant to
24subsection (o) of this Section, or (vi) emergency rules adopted
25pursuant to subsection (c-5) of this Section. Two or more
26emergency rules having substantially the same purpose and

HB3878- 3 -LRB100 10228 HLH 20411 b
1effect shall be deemed to be a single rule for purposes of this
2Section.
3 (c-5) To facilitate the maintenance of the program of group
4health benefits provided to annuitants, survivors, and retired
5employees under the State Employees Group Insurance Act of
61971, rules to alter the contributions to be paid by the State,
7annuitants, survivors, retired employees, or any combination
8of those entities, for that program of group health benefits,
9shall be adopted as emergency rules. The adoption of those
10rules shall be considered an emergency and necessary for the
11public interest, safety, and welfare.
12 (d) In order to provide for the expeditious and timely
13implementation of the State's fiscal year 1999 budget,
14emergency rules to implement any provision of Public Act 90-587
15or 90-588 or any other budget initiative for fiscal year 1999
16may be adopted in accordance with this Section by the agency
17charged with administering that provision or initiative,
18except that the 24-month limitation on the adoption of
19emergency rules and the provisions of Sections 5-115 and 5-125
20do not apply to rules adopted under this subsection (d). The
21adoption of emergency rules authorized by this subsection (d)
22shall be deemed to be necessary for the public interest,
23safety, and welfare.
24 (e) In order to provide for the expeditious and timely
25implementation of the State's fiscal year 2000 budget,
26emergency rules to implement any provision of Public Act 91-24

HB3878- 4 -LRB100 10228 HLH 20411 b
1or any other budget initiative for fiscal year 2000 may be
2adopted in accordance with this Section by the agency charged
3with administering that provision or initiative, except that
4the 24-month limitation on the adoption of emergency rules and
5the provisions of Sections 5-115 and 5-125 do not apply to
6rules adopted under this subsection (e). The adoption of
7emergency rules authorized by this subsection (e) shall be
8deemed to be necessary for the public interest, safety, and
9welfare.
10 (f) In order to provide for the expeditious and timely
11implementation of the State's fiscal year 2001 budget,
12emergency rules to implement any provision of Public Act 91-712
13or any other budget initiative for fiscal year 2001 may be
14adopted in accordance with this Section by the agency charged
15with administering that provision or initiative, except that
16the 24-month limitation on the adoption of emergency rules and
17the provisions of Sections 5-115 and 5-125 do not apply to
18rules adopted under this subsection (f). The adoption of
19emergency rules authorized by this subsection (f) shall be
20deemed to be necessary for the public interest, safety, and
21welfare.
22 (g) In order to provide for the expeditious and timely
23implementation of the State's fiscal year 2002 budget,
24emergency rules to implement any provision of Public Act 92-10
25or any other budget initiative for fiscal year 2002 may be
26adopted in accordance with this Section by the agency charged

HB3878- 5 -LRB100 10228 HLH 20411 b
1with administering that provision or initiative, except that
2the 24-month limitation on the adoption of emergency rules and
3the provisions of Sections 5-115 and 5-125 do not apply to
4rules adopted under this subsection (g). The adoption of
5emergency rules authorized by this subsection (g) shall be
6deemed to be necessary for the public interest, safety, and
7welfare.
8 (h) In order to provide for the expeditious and timely
9implementation of the State's fiscal year 2003 budget,
10emergency rules to implement any provision of Public Act 92-597
11or any other budget initiative for fiscal year 2003 may be
12adopted in accordance with this Section by the agency charged
13with administering that provision or initiative, except that
14the 24-month limitation on the adoption of emergency rules and
15the provisions of Sections 5-115 and 5-125 do not apply to
16rules adopted under this subsection (h). The adoption of
17emergency rules authorized by this subsection (h) shall be
18deemed to be necessary for the public interest, safety, and
19welfare.
20 (i) In order to provide for the expeditious and timely
21implementation of the State's fiscal year 2004 budget,
22emergency rules to implement any provision of Public Act 93-20
23or any other budget initiative for fiscal year 2004 may be
24adopted in accordance with this Section by the agency charged
25with administering that provision or initiative, except that
26the 24-month limitation on the adoption of emergency rules and

HB3878- 6 -LRB100 10228 HLH 20411 b
1the provisions of Sections 5-115 and 5-125 do not apply to
2rules adopted under this subsection (i). The adoption of
3emergency rules authorized by this subsection (i) shall be
4deemed to be necessary for the public interest, safety, and
5welfare.
6 (j) In order to provide for the expeditious and timely
7implementation of the provisions of the State's fiscal year
82005 budget as provided under the Fiscal Year 2005 Budget
9Implementation (Human Services) Act, emergency rules to
10implement any provision of the Fiscal Year 2005 Budget
11Implementation (Human Services) Act may be adopted in
12accordance with this Section by the agency charged with
13administering that provision, except that the 24-month
14limitation on the adoption of emergency rules and the
15provisions of Sections 5-115 and 5-125 do not apply to rules
16adopted under this subsection (j). The Department of Public Aid
17may also adopt rules under this subsection (j) necessary to
18administer the Illinois Public Aid Code and the Children's
19Health Insurance Program Act. The adoption of emergency rules
20authorized by this subsection (j) shall be deemed to be
21necessary for the public interest, safety, and welfare.
22 (k) In order to provide for the expeditious and timely
23implementation of the provisions of the State's fiscal year
242006 budget, emergency rules to implement any provision of
25Public Act 94-48 or any other budget initiative for fiscal year
262006 may be adopted in accordance with this Section by the

HB3878- 7 -LRB100 10228 HLH 20411 b
1agency charged with administering that provision or
2initiative, except that the 24-month limitation on the adoption
3of emergency rules and the provisions of Sections 5-115 and
45-125 do not apply to rules adopted under this subsection (k).
5The Department of Healthcare and Family Services may also adopt
6rules under this subsection (k) necessary to administer the
7Illinois Public Aid Code, the Senior Citizens and Persons with
8Disabilities Property Tax Relief Act, the Senior Citizens and
9Disabled Persons Prescription Drug Discount Program Act (now
10the Illinois Prescription Drug Discount Program Act), and the
11Children's Health Insurance Program Act. The adoption of
12emergency rules authorized by this subsection (k) shall be
13deemed to be necessary for the public interest, safety, and
14welfare.
15 (l) In order to provide for the expeditious and timely
16implementation of the provisions of the State's fiscal year
172007 budget, the Department of Healthcare and Family Services
18may adopt emergency rules during fiscal year 2007, including
19rules effective July 1, 2007, in accordance with this
20subsection to the extent necessary to administer the
21Department's responsibilities with respect to amendments to
22the State plans and Illinois waivers approved by the federal
23Centers for Medicare and Medicaid Services necessitated by the
24requirements of Title XIX and Title XXI of the federal Social
25Security Act. The adoption of emergency rules authorized by
26this subsection (l) shall be deemed to be necessary for the

HB3878- 8 -LRB100 10228 HLH 20411 b
1public interest, safety, and welfare.
2 (m) In order to provide for the expeditious and timely
3implementation of the provisions of the State's fiscal year
42008 budget, the Department of Healthcare and Family Services
5may adopt emergency rules during fiscal year 2008, including
6rules effective July 1, 2008, in accordance with this
7subsection to the extent necessary to administer the
8Department's responsibilities with respect to amendments to
9the State plans and Illinois waivers approved by the federal
10Centers for Medicare and Medicaid Services necessitated by the
11requirements of Title XIX and Title XXI of the federal Social
12Security Act. The adoption of emergency rules authorized by
13this subsection (m) shall be deemed to be necessary for the
14public interest, safety, and welfare.
15 (n) In order to provide for the expeditious and timely
16implementation of the provisions of the State's fiscal year
172010 budget, emergency rules to implement any provision of
18Public Act 96-45 or any other budget initiative authorized by
19the 96th General Assembly for fiscal year 2010 may be adopted
20in accordance with this Section by the agency charged with
21administering that provision or initiative. The adoption of
22emergency rules authorized by this subsection (n) shall be
23deemed to be necessary for the public interest, safety, and
24welfare. The rulemaking authority granted in this subsection
25(n) shall apply only to rules promulgated during Fiscal Year
262010.

HB3878- 9 -LRB100 10228 HLH 20411 b
1 (o) In order to provide for the expeditious and timely
2implementation of the provisions of the State's fiscal year
32011 budget, emergency rules to implement any provision of
4Public Act 96-958 or any other budget initiative authorized by
5the 96th General Assembly for fiscal year 2011 may be adopted
6in accordance with this Section by the agency charged with
7administering that provision or initiative. The adoption of
8emergency rules authorized by this subsection (o) is deemed to
9be necessary for the public interest, safety, and welfare. The
10rulemaking authority granted in this subsection (o) applies
11only to rules promulgated on or after July 1, 2010 (the
12effective date of Public Act 96-958) through June 30, 2011.
13 (p) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 97-689,
15emergency rules to implement any provision of Public Act 97-689
16may be adopted in accordance with this subsection (p) by the
17agency charged with administering that provision or
18initiative. The 150-day limitation of the effective period of
19emergency rules does not apply to rules adopted under this
20subsection (p), and the effective period may continue through
21June 30, 2013. The 24-month limitation on the adoption of
22emergency rules does not apply to rules adopted under this
23subsection (p). The adoption of emergency rules authorized by
24this subsection (p) is deemed to be necessary for the public
25interest, safety, and welfare.
26 (q) In order to provide for the expeditious and timely

HB3878- 10 -LRB100 10228 HLH 20411 b
1implementation of the provisions of Articles 7, 8, 9, 11, and
212 of Public Act 98-104, emergency rules to implement any
3provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
4may be adopted in accordance with this subsection (q) by the
5agency charged with administering that provision or
6initiative. The 24-month limitation on the adoption of
7emergency rules does not apply to rules adopted under this
8subsection (q). The adoption of emergency rules authorized by
9this subsection (q) is deemed to be necessary for the public
10interest, safety, and welfare.
11 (r) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 98-651,
13emergency rules to implement Public Act 98-651 may be adopted
14in accordance with this subsection (r) by the Department of
15Healthcare and Family Services. The 24-month limitation on the
16adoption of emergency rules does not apply to rules adopted
17under this subsection (r). The adoption of emergency rules
18authorized by this subsection (r) is deemed to be necessary for
19the public interest, safety, and welfare.
20 (s) In order to provide for the expeditious and timely
21implementation of the provisions of Sections 5-5b.1 and 5A-2 of
22the Illinois Public Aid Code, emergency rules to implement any
23provision of Section 5-5b.1 or Section 5A-2 of the Illinois
24Public Aid Code may be adopted in accordance with this
25subsection (s) by the Department of Healthcare and Family
26Services. The rulemaking authority granted in this subsection

HB3878- 11 -LRB100 10228 HLH 20411 b
1(s) shall apply only to those rules adopted prior to July 1,
22015. Notwithstanding any other provision of this Section, any
3emergency rule adopted under this subsection (s) shall only
4apply to payments made for State fiscal year 2015. The adoption
5of emergency rules authorized by this subsection (s) is deemed
6to be necessary for the public interest, safety, and welfare.
7 (t) In order to provide for the expeditious and timely
8implementation of the provisions of Article II of Public Act
999-6, emergency rules to implement the changes made by Article
10II of Public Act 99-6 to the Emergency Telephone System Act may
11be adopted in accordance with this subsection (t) by the
12Department of State Police. The rulemaking authority granted in
13this subsection (t) shall apply only to those rules adopted
14prior to July 1, 2016. The 24-month limitation on the adoption
15of emergency rules does not apply to rules adopted under this
16subsection (t). The adoption of emergency rules authorized by
17this subsection (t) is deemed to be necessary for the public
18interest, safety, and welfare.
19 (u) In order to provide for the expeditious and timely
20implementation of the provisions of the Burn Victims Relief
21Act, emergency rules to implement any provision of the Act may
22be adopted in accordance with this subsection (u) by the
23Department of Insurance. The rulemaking authority granted in
24this subsection (u) shall apply only to those rules adopted
25prior to December 31, 2015. The adoption of emergency rules
26authorized by this subsection (u) is deemed to be necessary for

HB3878- 12 -LRB100 10228 HLH 20411 b
1the public interest, safety, and welfare.
2 (v) In order to provide for the expeditious and timely
3implementation of the provisions of Public Act 99-516 this
4amendatory Act of the 99th General Assembly, emergency rules to
5implement Public Act 99-516 this amendatory Act of the 99th
6General Assembly may be adopted in accordance with this
7subsection (v) by the Department of Healthcare and Family
8Services. The 24-month limitation on the adoption of emergency
9rules does not apply to rules adopted under this subsection
10(v). The adoption of emergency rules authorized by this
11subsection (v) is deemed to be necessary for the public
12interest, safety, and welfare.
13 (w) (v) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 99-796 this
15amendatory Act of the 99th General Assembly, emergency rules to
16implement the changes made by Public Act 99-796 this amendatory
17Act of the 99th General Assembly may be adopted in accordance
18with this subsection (w) (v) by the Adjutant General. The
19adoption of emergency rules authorized by this subsection (w)
20(v) is deemed to be necessary for the public interest, safety,
21and welfare.
22 (y) In order to provide for the expeditious and timely
23implementation of the provisions of this amendatory Act of the
24100th General Assembly, emergency rules to implement the
25changes made by this amendatory Act of the 100th General
26Assembly may be adopted in accordance with this subsection (x)

HB3878- 13 -LRB100 10228 HLH 20411 b
1by the Department of Revenue. The adoption of emergency rules
2authorized by this subsection (y) is deemed to be necessary for
3the public interest, safety, and welfare.
4(Source: P.A. 98-104, eff. 7-22-13; 98-463, eff. 8-16-13;
598-651, eff. 6-16-14; 99-2, eff. 3-26-15; 99-6, eff. 1-1-16;
699-143, eff. 7-27-15; 99-455, eff. 1-1-16; 99-516, eff.
76-30-16; 99-642, eff. 7-28-16; 99-796, eff. 1-1-17; revised
89-21-16.)
9 (Text of Section after amendment by P.A. 99-906)
10 Sec. 5-45. Emergency rulemaking.
11 (a) "Emergency" means the existence of any situation that
12any agency finds reasonably constitutes a threat to the public
13interest, safety, or welfare.
14 (b) If any agency finds that an emergency exists that
15requires adoption of a rule upon fewer days than is required by
16Section 5-40 and states in writing its reasons for that
17finding, the agency may adopt an emergency rule without prior
18notice or hearing upon filing a notice of emergency rulemaking
19with the Secretary of State under Section 5-70. The notice
20shall include the text of the emergency rule and shall be
21published in the Illinois Register. Consent orders or other
22court orders adopting settlements negotiated by an agency may
23be adopted under this Section. Subject to applicable
24constitutional or statutory provisions, an emergency rule
25becomes effective immediately upon filing under Section 5-65 or

HB3878- 14 -LRB100 10228 HLH 20411 b
1at a stated date less than 10 days thereafter. The agency's
2finding and a statement of the specific reasons for the finding
3shall be filed with the rule. The agency shall take reasonable
4and appropriate measures to make emergency rules known to the
5persons who may be affected by them.
6 (c) An emergency rule may be effective for a period of not
7longer than 150 days, but the agency's authority to adopt an
8identical rule under Section 5-40 is not precluded. No
9emergency rule may be adopted more than once in any 24-month
10period, except that this limitation on the number of emergency
11rules that may be adopted in a 24-month period does not apply
12to (i) emergency rules that make additions to and deletions
13from the Drug Manual under Section 5-5.16 of the Illinois
14Public Aid Code or the generic drug formulary under Section
153.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
16emergency rules adopted by the Pollution Control Board before
17July 1, 1997 to implement portions of the Livestock Management
18Facilities Act, (iii) emergency rules adopted by the Illinois
19Department of Public Health under subsections (a) through (i)
20of Section 2 of the Department of Public Health Act when
21necessary to protect the public's health, (iv) emergency rules
22adopted pursuant to subsection (n) of this Section, (v)
23emergency rules adopted pursuant to subsection (o) of this
24Section, or (vi) emergency rules adopted pursuant to subsection
25(c-5) of this Section. Two or more emergency rules having
26substantially the same purpose and effect shall be deemed to be

HB3878- 15 -LRB100 10228 HLH 20411 b
1a single rule for purposes of this Section.
2 (c-5) To facilitate the maintenance of the program of group
3health benefits provided to annuitants, survivors, and retired
4employees under the State Employees Group Insurance Act of
51971, rules to alter the contributions to be paid by the State,
6annuitants, survivors, retired employees, or any combination
7of those entities, for that program of group health benefits,
8shall be adopted as emergency rules. The adoption of those
9rules shall be considered an emergency and necessary for the
10public interest, safety, and welfare.
11 (d) In order to provide for the expeditious and timely
12implementation of the State's fiscal year 1999 budget,
13emergency rules to implement any provision of Public Act 90-587
14or 90-588 or any other budget initiative for fiscal year 1999
15may be adopted in accordance with this Section by the agency
16charged with administering that provision or initiative,
17except that the 24-month limitation on the adoption of
18emergency rules and the provisions of Sections 5-115 and 5-125
19do not apply to rules adopted under this subsection (d). The
20adoption of emergency rules authorized by this subsection (d)
21shall be deemed to be necessary for the public interest,
22safety, and welfare.
23 (e) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 2000 budget,
25emergency rules to implement any provision of Public Act 91-24
26or any other budget initiative for fiscal year 2000 may be

HB3878- 16 -LRB100 10228 HLH 20411 b
1adopted in accordance with this Section by the agency charged
2with administering that provision or initiative, except that
3the 24-month limitation on the adoption of emergency rules and
4the provisions of Sections 5-115 and 5-125 do not apply to
5rules adopted under this subsection (e). The adoption of
6emergency rules authorized by this subsection (e) shall be
7deemed to be necessary for the public interest, safety, and
8welfare.
9 (f) In order to provide for the expeditious and timely
10implementation of the State's fiscal year 2001 budget,
11emergency rules to implement any provision of Public Act 91-712
12or any other budget initiative for fiscal year 2001 may be
13adopted in accordance with this Section by the agency charged
14with administering that provision or initiative, except that
15the 24-month limitation on the adoption of emergency rules and
16the provisions of Sections 5-115 and 5-125 do not apply to
17rules adopted under this subsection (f). The adoption of
18emergency rules authorized by this subsection (f) shall be
19deemed to be necessary for the public interest, safety, and
20welfare.
21 (g) In order to provide for the expeditious and timely
22implementation of the State's fiscal year 2002 budget,
23emergency rules to implement any provision of Public Act 92-10
24or any other budget initiative for fiscal year 2002 may be
25adopted in accordance with this Section by the agency charged
26with administering that provision or initiative, except that

HB3878- 17 -LRB100 10228 HLH 20411 b
1the 24-month limitation on the adoption of emergency rules and
2the provisions of Sections 5-115 and 5-125 do not apply to
3rules adopted under this subsection (g). The adoption of
4emergency rules authorized by this subsection (g) shall be
5deemed to be necessary for the public interest, safety, and
6welfare.
7 (h) In order to provide for the expeditious and timely
8implementation of the State's fiscal year 2003 budget,
9emergency rules to implement any provision of Public Act 92-597
10or any other budget initiative for fiscal year 2003 may be
11adopted in accordance with this Section by the agency charged
12with administering that provision or initiative, except that
13the 24-month limitation on the adoption of emergency rules and
14the provisions of Sections 5-115 and 5-125 do not apply to
15rules adopted under this subsection (h). The adoption of
16emergency rules authorized by this subsection (h) shall be
17deemed to be necessary for the public interest, safety, and
18welfare.
19 (i) In order to provide for the expeditious and timely
20implementation of the State's fiscal year 2004 budget,
21emergency rules to implement any provision of Public Act 93-20
22or any other budget initiative for fiscal year 2004 may be
23adopted in accordance with this Section by the agency charged
24with administering that provision or initiative, except that
25the 24-month limitation on the adoption of emergency rules and
26the provisions of Sections 5-115 and 5-125 do not apply to

HB3878- 18 -LRB100 10228 HLH 20411 b
1rules adopted under this subsection (i). The adoption of
2emergency rules authorized by this subsection (i) shall be
3deemed to be necessary for the public interest, safety, and
4welfare.
5 (j) In order to provide for the expeditious and timely
6implementation of the provisions of the State's fiscal year
72005 budget as provided under the Fiscal Year 2005 Budget
8Implementation (Human Services) Act, emergency rules to
9implement any provision of the Fiscal Year 2005 Budget
10Implementation (Human Services) Act may be adopted in
11accordance with this Section by the agency charged with
12administering that provision, except that the 24-month
13limitation on the adoption of emergency rules and the
14provisions of Sections 5-115 and 5-125 do not apply to rules
15adopted under this subsection (j). The Department of Public Aid
16may also adopt rules under this subsection (j) necessary to
17administer the Illinois Public Aid Code and the Children's
18Health Insurance Program Act. The adoption of emergency rules
19authorized by this subsection (j) shall be deemed to be
20necessary for the public interest, safety, and welfare.
21 (k) In order to provide for the expeditious and timely
22implementation of the provisions of the State's fiscal year
232006 budget, emergency rules to implement any provision of
24Public Act 94-48 or any other budget initiative for fiscal year
252006 may be adopted in accordance with this Section by the
26agency charged with administering that provision or

HB3878- 19 -LRB100 10228 HLH 20411 b
1initiative, except that the 24-month limitation on the adoption
2of emergency rules and the provisions of Sections 5-115 and
35-125 do not apply to rules adopted under this subsection (k).
4The Department of Healthcare and Family Services may also adopt
5rules under this subsection (k) necessary to administer the
6Illinois Public Aid Code, the Senior Citizens and Persons with
7Disabilities Property Tax Relief Act, the Senior Citizens and
8Disabled Persons Prescription Drug Discount Program Act (now
9the Illinois Prescription Drug Discount Program Act), and the
10Children's Health Insurance Program Act. The adoption of
11emergency rules authorized by this subsection (k) shall be
12deemed to be necessary for the public interest, safety, and
13welfare.
14 (l) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162007 budget, the Department of Healthcare and Family Services
17may adopt emergency rules during fiscal year 2007, including
18rules effective July 1, 2007, in accordance with this
19subsection to the extent necessary to administer the
20Department's responsibilities with respect to amendments to
21the State plans and Illinois waivers approved by the federal
22Centers for Medicare and Medicaid Services necessitated by the
23requirements of Title XIX and Title XXI of the federal Social
24Security Act. The adoption of emergency rules authorized by
25this subsection (l) shall be deemed to be necessary for the
26public interest, safety, and welfare.

HB3878- 20 -LRB100 10228 HLH 20411 b
1 (m) In order to provide for the expeditious and timely
2implementation of the provisions of the State's fiscal year
32008 budget, the Department of Healthcare and Family Services
4may adopt emergency rules during fiscal year 2008, including
5rules effective July 1, 2008, in accordance with this
6subsection to the extent necessary to administer the
7Department's responsibilities with respect to amendments to
8the State plans and Illinois waivers approved by the federal
9Centers for Medicare and Medicaid Services necessitated by the
10requirements of Title XIX and Title XXI of the federal Social
11Security Act. The adoption of emergency rules authorized by
12this subsection (m) shall be deemed to be necessary for the
13public interest, safety, and welfare.
14 (n) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162010 budget, emergency rules to implement any provision of
17Public Act 96-45 or any other budget initiative authorized by
18the 96th General Assembly for fiscal year 2010 may be adopted
19in accordance with this Section by the agency charged with
20administering that provision or initiative. The adoption of
21emergency rules authorized by this subsection (n) shall be
22deemed to be necessary for the public interest, safety, and
23welfare. The rulemaking authority granted in this subsection
24(n) shall apply only to rules promulgated during Fiscal Year
252010.
26 (o) In order to provide for the expeditious and timely

HB3878- 21 -LRB100 10228 HLH 20411 b
1implementation of the provisions of the State's fiscal year
22011 budget, emergency rules to implement any provision of
3Public Act 96-958 or any other budget initiative authorized by
4the 96th General Assembly for fiscal year 2011 may be adopted
5in accordance with this Section by the agency charged with
6administering that provision or initiative. The adoption of
7emergency rules authorized by this subsection (o) is deemed to
8be necessary for the public interest, safety, and welfare. The
9rulemaking authority granted in this subsection (o) applies
10only to rules promulgated on or after July 1, 2010 (the
11effective date of Public Act 96-958) through June 30, 2011.
12 (p) In order to provide for the expeditious and timely
13implementation of the provisions of Public Act 97-689,
14emergency rules to implement any provision of Public Act 97-689
15may be adopted in accordance with this subsection (p) by the
16agency charged with administering that provision or
17initiative. The 150-day limitation of the effective period of
18emergency rules does not apply to rules adopted under this
19subsection (p), and the effective period may continue through
20June 30, 2013. The 24-month limitation on the adoption of
21emergency rules does not apply to rules adopted under this
22subsection (p). The adoption of emergency rules authorized by
23this subsection (p) is deemed to be necessary for the public
24interest, safety, and welfare.
25 (q) In order to provide for the expeditious and timely
26implementation of the provisions of Articles 7, 8, 9, 11, and

HB3878- 22 -LRB100 10228 HLH 20411 b
112 of Public Act 98-104, emergency rules to implement any
2provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
3may be adopted in accordance with this subsection (q) by the
4agency charged with administering that provision or
5initiative. The 24-month limitation on the adoption of
6emergency rules does not apply to rules adopted under this
7subsection (q). The adoption of emergency rules authorized by
8this subsection (q) is deemed to be necessary for the public
9interest, safety, and welfare.
10 (r) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 98-651,
12emergency rules to implement Public Act 98-651 may be adopted
13in accordance with this subsection (r) by the Department of
14Healthcare and Family Services. The 24-month limitation on the
15adoption of emergency rules does not apply to rules adopted
16under this subsection (r). The adoption of emergency rules
17authorized by this subsection (r) is deemed to be necessary for
18the public interest, safety, and welfare.
19 (s) In order to provide for the expeditious and timely
20implementation of the provisions of Sections 5-5b.1 and 5A-2 of
21the Illinois Public Aid Code, emergency rules to implement any
22provision of Section 5-5b.1 or Section 5A-2 of the Illinois
23Public Aid Code may be adopted in accordance with this
24subsection (s) by the Department of Healthcare and Family
25Services. The rulemaking authority granted in this subsection
26(s) shall apply only to those rules adopted prior to July 1,

HB3878- 23 -LRB100 10228 HLH 20411 b
12015. Notwithstanding any other provision of this Section, any
2emergency rule adopted under this subsection (s) shall only
3apply to payments made for State fiscal year 2015. The adoption
4of emergency rules authorized by this subsection (s) is deemed
5to be necessary for the public interest, safety, and welfare.
6 (t) In order to provide for the expeditious and timely
7implementation of the provisions of Article II of Public Act
899-6, emergency rules to implement the changes made by Article
9II of Public Act 99-6 to the Emergency Telephone System Act may
10be adopted in accordance with this subsection (t) by the
11Department of State Police. The rulemaking authority granted in
12this subsection (t) shall apply only to those rules adopted
13prior to July 1, 2016. The 24-month limitation on the adoption
14of emergency rules does not apply to rules adopted under this
15subsection (t). The adoption of emergency rules authorized by
16this subsection (t) is deemed to be necessary for the public
17interest, safety, and welfare.
18 (u) In order to provide for the expeditious and timely
19implementation of the provisions of the Burn Victims Relief
20Act, emergency rules to implement any provision of the Act may
21be adopted in accordance with this subsection (u) by the
22Department of Insurance. The rulemaking authority granted in
23this subsection (u) shall apply only to those rules adopted
24prior to December 31, 2015. The adoption of emergency rules
25authorized by this subsection (u) is deemed to be necessary for
26the public interest, safety, and welfare.

HB3878- 24 -LRB100 10228 HLH 20411 b
1 (v) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 99-516,
3emergency rules to implement Public Act 99-516 may be adopted
4in accordance with this subsection (v) by the Department of
5Healthcare and Family Services. The 24-month limitation on the
6adoption of emergency rules does not apply to rules adopted
7under this subsection (v). The adoption of emergency rules
8authorized by this subsection (v) is deemed to be necessary for
9the public interest, safety, and welfare.
10 (w) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 99-796,
12emergency rules to implement the changes made by Public Act
1399-796 may be adopted in accordance with this subsection (w) by
14the Adjutant General. The adoption of emergency rules
15authorized by this subsection (w) is deemed to be necessary for
16the public interest, safety, and welfare.
17 (x) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 99-906 this
19amendatory Act of the 99th General Assembly, emergency rules to
20implement subsection (i) of Section 16-115D, subsection (g) of
21Section 16-128A, and subsection (a) of Section 16-128B of the
22Public Utilities Act may be adopted in accordance with this
23subsection (x) by the Illinois Commerce Commission. The
24rulemaking authority granted in this subsection (x) shall apply
25only to those rules adopted within 180 days after June 1, 2017
26(the effective date of Public Act 99-906) this amendatory Act

HB3878- 25 -LRB100 10228 HLH 20411 b
1of the 99th General Assembly. The adoption of emergency rules
2authorized by this subsection (x) is deemed to be necessary for
3the public interest, safety, and welfare.
4 (y) In order to provide for the expeditious and timely
5implementation of the provisions of this amendatory Act of the
6100th General Assembly, emergency rules to implement the
7changes made by this amendatory Act of the 100th General
8Assembly may be adopted in accordance with this subsection (x)
9by the Department of Revenue. The adoption of emergency rules
10authorized by this subsection (y) is deemed to be necessary for
11the public interest, safety, and welfare.
12(Source: P.A. 98-104, eff. 7-22-13; 98-463, eff. 8-16-13;
1398-651, eff. 6-16-14; 99-2, eff. 3-26-15; 99-6, eff. 1-1-16;
1499-143, eff. 7-27-15; 99-455, eff. 1-1-16; 99-516, eff.
156-30-16; 99-642, eff. 7-28-16; 99-796, eff. 1-1-17; 99-906,
16eff. 6-1-17; revised 1-1-17.)
17 Section 10. The Use Tax Act is amended by changing Section
183-5 and by adding Section 3-6.5 as follows:
19 (35 ILCS 105/3-5)
20 Sec. 3-5. Exemptions. Use of the following tangible
21personal property is exempt from the tax imposed by this Act:
22 (1) Personal property purchased from a corporation,
23society, association, foundation, institution, or
24organization, other than a limited liability company, that is

HB3878- 26 -LRB100 10228 HLH 20411 b
1organized and operated as a not-for-profit service enterprise
2for the benefit of persons 65 years of age or older if the
3personal property was not purchased by the enterprise for the
4purpose of resale by the enterprise.
5 (2) Personal property purchased by a not-for-profit
6Illinois county fair association for use in conducting,
7operating, or promoting the county fair.
8 (3) Personal property purchased by a not-for-profit arts or
9cultural organization that establishes, by proof required by
10the Department by rule, that it has received an exemption under
11Section 501(c)(3) of the Internal Revenue Code and that is
12organized and operated primarily for the presentation or
13support of arts or cultural programming, activities, or
14services. These organizations include, but are not limited to,
15music and dramatic arts organizations such as symphony
16orchestras and theatrical groups, arts and cultural service
17organizations, local arts councils, visual arts organizations,
18and media arts organizations. On and after the effective date
19of this amendatory Act of the 92nd General Assembly, however,
20an entity otherwise eligible for this exemption shall not make
21tax-free purchases unless it has an active identification
22number issued by the Department.
23 (4) Personal property purchased by a governmental body, by
24a corporation, society, association, foundation, or
25institution organized and operated exclusively for charitable,
26religious, or educational purposes, or by a not-for-profit

HB3878- 27 -LRB100 10228 HLH 20411 b
1corporation, society, association, foundation, institution, or
2organization that has no compensated officers or employees and
3that is organized and operated primarily for the recreation of
4persons 55 years of age or older. A limited liability company
5may qualify for the exemption under this paragraph only if the
6limited liability company is organized and operated
7exclusively for educational purposes. On and after July 1,
81987, however, no entity otherwise eligible for this exemption
9shall make tax-free purchases unless it has an active exemption
10identification number issued by the Department.
11 (5) Until July 1, 2003, a passenger car that is a
12replacement vehicle to the extent that the purchase price of
13the car is subject to the Replacement Vehicle Tax.
14 (6) Until July 1, 2003 and beginning again on September 1,
152004 through August 30, 2014, graphic arts machinery and
16equipment, including repair and replacement parts, both new and
17used, and including that manufactured on special order,
18certified by the purchaser to be used primarily for graphic
19arts production, and including machinery and equipment
20purchased for lease. Equipment includes chemicals or chemicals
21acting as catalysts but only if the chemicals or chemicals
22acting as catalysts effect a direct and immediate change upon a
23graphic arts product.
24 (7) Farm chemicals.
25 (8) Legal tender, currency, medallions, or gold or silver
26coinage issued by the State of Illinois, the government of the

HB3878- 28 -LRB100 10228 HLH 20411 b
1United States of America, or the government of any foreign
2country, and bullion.
3 (9) Personal property purchased from a teacher-sponsored
4student organization affiliated with an elementary or
5secondary school located in Illinois.
6 (10) A motor vehicle that is used for automobile renting,
7as defined in the Automobile Renting Occupation and Use Tax
8Act.
9 (11) Farm machinery and equipment, both new and used,
10including that manufactured on special order, certified by the
11purchaser to be used primarily for production agriculture or
12State or federal agricultural programs, including individual
13replacement parts for the machinery and equipment, including
14machinery and equipment purchased for lease, and including
15implements of husbandry defined in Section 1-130 of the
16Illinois Vehicle Code, farm machinery and agricultural
17chemical and fertilizer spreaders, and nurse wagons required to
18be registered under Section 3-809 of the Illinois Vehicle Code,
19but excluding other motor vehicles required to be registered
20under the Illinois Vehicle Code. Horticultural polyhouses or
21hoop houses used for propagating, growing, or overwintering
22plants shall be considered farm machinery and equipment under
23this item (11). Agricultural chemical tender tanks and dry
24boxes shall include units sold separately from a motor vehicle
25required to be licensed and units sold mounted on a motor
26vehicle required to be licensed if the selling price of the

HB3878- 29 -LRB100 10228 HLH 20411 b
1tender is separately stated.
2 Farm machinery and equipment shall include precision
3farming equipment that is installed or purchased to be
4installed on farm machinery and equipment including, but not
5limited to, tractors, harvesters, sprayers, planters, seeders,
6or spreaders. Precision farming equipment includes, but is not
7limited to, soil testing sensors, computers, monitors,
8software, global positioning and mapping systems, and other
9such equipment.
10 Farm machinery and equipment also includes computers,
11sensors, software, and related equipment used primarily in the
12computer-assisted operation of production agriculture
13facilities, equipment, and activities such as, but not limited
14to, the collection, monitoring, and correlation of animal and
15crop data for the purpose of formulating animal diets and
16agricultural chemicals. This item (11) is exempt from the
17provisions of Section 3-90.
18 (12) Until June 30, 2013, fuel and petroleum products sold
19to or used by an air common carrier, certified by the carrier
20to be used for consumption, shipment, or storage in the conduct
21of its business as an air common carrier, for a flight destined
22for or returning from a location or locations outside the
23United States without regard to previous or subsequent domestic
24stopovers.
25 Beginning July 1, 2013, fuel and petroleum products sold to
26or used by an air carrier, certified by the carrier to be used

HB3878- 30 -LRB100 10228 HLH 20411 b
1for consumption, shipment, or storage in the conduct of its
2business as an air common carrier, for a flight that (i) is
3engaged in foreign trade or is engaged in trade between the
4United States and any of its possessions and (ii) transports at
5least one individual or package for hire from the city of
6origination to the city of final destination on the same
7aircraft, without regard to a change in the flight number of
8that aircraft.
9 (13) Proceeds of mandatory service charges separately
10stated on customers' bills for the purchase and consumption of
11food and beverages purchased at retail from a retailer, to the
12extent that the proceeds of the service charge are in fact
13turned over as tips or as a substitute for tips to the
14employees who participate directly in preparing, serving,
15hosting or cleaning up the food or beverage function with
16respect to which the service charge is imposed.
17 (14) 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 (15) Photoprocessing machinery and equipment, including

HB3878- 31 -LRB100 10228 HLH 20411 b
1repair and replacement parts, both new and used, including that
2manufactured on special order, certified by the purchaser to be
3used primarily for photoprocessing, and including
4photoprocessing machinery and equipment purchased for lease.
5 (16) Coal and aggregate exploration, mining, off-highway
6hauling, processing, maintenance, and reclamation equipment,
7including replacement parts and equipment, and including
8equipment purchased for lease, but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code. The
10changes made to this Section by Public Act 97-767 apply on and
11after July 1, 2003, but no claim for credit or refund is
12allowed on or after August 16, 2013 (the effective date of
13Public Act 98-456) for such taxes paid during the period
14beginning July 1, 2003 and ending on August 16, 2013 (the
15effective date of Public Act 98-456).
16 (17) Until July 1, 2003, distillation machinery and
17equipment, sold as a unit or kit, assembled or installed by the
18retailer, certified by the user to be used only for the
19production of ethyl alcohol that will be used for consumption
20as motor fuel or as a component of motor fuel for the personal
21use of the user, and not subject to sale or resale.
22 (18) Manufacturing and assembling machinery and equipment
23used primarily in the process of manufacturing or assembling
24tangible personal property for wholesale or retail sale or
25lease, whether that sale or lease is made directly by the
26manufacturer or by some other person, whether the materials

HB3878- 32 -LRB100 10228 HLH 20411 b
1used in the process are owned by the manufacturer or some other
2person, or whether that sale or lease is made apart from or as
3an incident to the seller's engaging in the service occupation
4of producing machines, tools, dies, jigs, patterns, gauges, or
5other similar items of no commercial value on special order for
6a particular purchaser. The exemption provided by this
7paragraph (18) does not include machinery and equipment used in
8(i) the generation of electricity for wholesale or retail sale;
9(ii) the generation or treatment of natural or artificial gas
10for wholesale or retail sale that is delivered to customers
11through pipes, pipelines, or mains; or (iii) the treatment of
12water for wholesale or retail sale that is delivered to
13customers through pipes, pipelines, or mains. The provisions of
14Public Act 98-583 are declaratory of existing law as to the
15meaning and scope of this exemption.
16 (19) Personal property delivered to a purchaser or
17purchaser's donee inside Illinois when the purchase order for
18that personal property was received by a florist located
19outside Illinois who has a florist located inside Illinois
20deliver the personal property.
21 (20) Semen used for artificial insemination of livestock
22for direct agricultural production.
23 (21) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

HB3878- 33 -LRB100 10228 HLH 20411 b
1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (21) is exempt from the provisions
3of Section 3-90, and the exemption provided for under this item
4(21) applies for all periods beginning May 30, 1995, but no
5claim for credit or refund is allowed on or after January 1,
62008 for such taxes paid during the period beginning May 30,
72000 and ending on January 1, 2008.
8 (22) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients purchased by a
11lessor who leases the equipment, under a lease of one year or
12longer executed or in effect at the time the lessor would
13otherwise be subject to the tax imposed by this Act, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of the
16Retailers' Occupation Tax Act. If the equipment is leased in a
17manner that does not qualify for this exemption or is used in
18any other non-exempt manner, the lessor shall be liable for the
19tax imposed under this Act or the Service Use Tax Act, as the
20case may be, based on the fair market value of the property at
21the time the non-qualifying use occurs. No lessor shall collect
22or attempt to collect an amount (however designated) that
23purports to reimburse that lessor for the tax imposed by this
24Act or the Service Use Tax Act, as the case may be, if the tax
25has not been paid by the lessor. If a lessor improperly
26collects any such amount from the lessee, the lessee shall have

HB3878- 34 -LRB100 10228 HLH 20411 b
1a legal right to claim a refund of that amount from the lessor.
2If, however, that amount is not refunded to the lessee for any
3reason, the lessor is liable to pay that amount to the
4Department.
5 (23) Personal property purchased by a lessor who leases the
6property, under a lease of one year or longer executed or in
7effect at the time the lessor would otherwise be subject to the
8tax imposed by this Act, to a governmental body that has been
9issued an active sales tax exemption identification number by
10the Department under Section 1g of the Retailers' Occupation
11Tax Act. If the property is leased in a manner that does not
12qualify for this exemption or used in any other non-exempt
13manner, the lessor shall be liable for the tax imposed under
14this Act or the Service Use Tax Act, as the case may be, based
15on the fair market value of the property at the time the
16non-qualifying use occurs. No lessor shall collect or attempt
17to collect an amount (however designated) that purports to
18reimburse that lessor for the tax imposed by this Act or the
19Service Use Tax Act, as the case may be, if the tax has not been
20paid by the lessor. If a lessor improperly collects any such
21amount from the lessee, the lessee shall have a legal right to
22claim a refund of that amount from the lessor. If, however,
23that amount is not refunded to the lessee for any reason, the
24lessor is liable to pay that amount to the Department.
25 (24) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

HB3878- 35 -LRB100 10228 HLH 20411 b
1before December 31, 2004, personal property that is donated for
2disaster relief to be used in a State or federally declared
3disaster area in Illinois or bordering Illinois by a
4manufacturer or retailer that is registered in this State to a
5corporation, society, association, foundation, or institution
6that has been issued a sales tax exemption identification
7number by the Department that assists victims of the disaster
8who reside within the declared disaster area.
9 (25) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is used in the
12performance of infrastructure repairs in this State, including
13but not limited to municipal roads and streets, access roads,
14bridges, sidewalks, waste disposal systems, water and sewer
15line extensions, water distribution and purification
16facilities, storm water drainage and retention facilities, and
17sewage treatment facilities, resulting from a State or
18federally declared disaster in Illinois or bordering Illinois
19when such repairs are initiated on facilities located in the
20declared disaster area within 6 months after the disaster.
21 (26) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-90.
25 (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

HB3878- 36 -LRB100 10228 HLH 20411 b
1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the Department
3to be organized and operated exclusively for educational
4purposes. For purposes of this exemption, "a corporation,
5limited liability company, society, association, foundation,
6or institution organized and operated exclusively for
7educational purposes" means all tax-supported public schools,
8private schools that offer systematic instruction in useful
9branches of learning by methods common to public schools and
10that compare favorably in their scope and intensity with the
11course of study presented in tax-supported schools, and
12vocational or technical schools or institutes organized and
13operated exclusively to provide a course of study of not less
14than 6 weeks duration and designed to prepare individuals to
15follow a trade or to pursue a manual, technical, mechanical,
16industrial, business, or commercial occupation.
17 (28) Beginning January 1, 2000, personal property,
18including food, purchased through fundraising events for the
19benefit of a public or private elementary or secondary school,
20a group of those schools, or one or more school districts if
21the events are sponsored by an entity recognized by the school
22district that consists primarily of volunteers and includes
23parents and teachers of the school children. This paragraph
24does not apply to fundraising events (i) for the benefit of
25private home instruction or (ii) for which the fundraising
26entity purchases the personal property sold at the events from

HB3878- 37 -LRB100 10228 HLH 20411 b
1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-90.
5 (29) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-90.
15 (30) Beginning January 1, 2001 and through June 30, 2016,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the ID/DD Community Care Act, the MC/DD Act, or the

HB3878- 38 -LRB100 10228 HLH 20411 b
1Specialized Mental Health Rehabilitation Act of 2013.
2 (31) Beginning on the effective date of this amendatory Act
3of the 92nd General Assembly, computers and communications
4equipment utilized for any hospital purpose and equipment used
5in the diagnosis, analysis, or treatment of hospital patients
6purchased by a lessor who leases the equipment, under a lease
7of one year or longer executed or in effect at the time the
8lessor would otherwise be subject to the tax imposed by this
9Act, to a hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. If the equipment is leased in a
12manner that does not qualify for this exemption or is used in
13any other nonexempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Service Use Tax Act, as the
15case may be, based on the fair market value of the property at
16the time the nonqualifying use occurs. No lessor shall collect
17or attempt to collect an amount (however designated) that
18purports to reimburse that lessor for the tax imposed by this
19Act or the Service Use Tax Act, as the case may be, if the tax
20has not been paid by the lessor. If a lessor improperly
21collects any such amount from the lessee, the lessee shall have
22a legal right to claim a refund of that amount from the lessor.
23If, however, that amount is not refunded to the lessee for any
24reason, the lessor is liable to pay that amount to the
25Department. This paragraph is exempt from the provisions of
26Section 3-90.

HB3878- 39 -LRB100 10228 HLH 20411 b
1 (32) Beginning on the effective date of this amendatory Act
2of the 92nd General Assembly, personal property purchased by a
3lessor who leases the property, under a lease of one year or
4longer executed or in effect at the time the lessor would
5otherwise be subject to the tax imposed by this Act, to a
6governmental body that has been issued an active sales tax
7exemption identification number by the Department under
8Section 1g of the Retailers' Occupation Tax Act. If the
9property is leased in a manner that does not qualify for this
10exemption or used in any other nonexempt manner, the lessor
11shall be liable for the tax imposed under this Act or the
12Service Use Tax Act, as the case may be, based on the fair
13market value of the property at the time the nonqualifying use
14occurs. No lessor shall collect or attempt to collect an amount
15(however designated) that purports to reimburse that lessor for
16the tax imposed by this Act or the Service Use Tax Act, as the
17case may be, if the tax has not been paid by the lessor. If a
18lessor improperly collects any such amount from the lessee, the
19lessee shall have a legal right to claim a refund of that
20amount from the lessor. If, however, that amount is not
21refunded to the lessee for any reason, the lessor is liable to
22pay that amount to the Department. This paragraph is exempt
23from the provisions of Section 3-90.
24 (33) On and after July 1, 2003 and through June 30, 2004,
25the use in this State of motor vehicles of the second division
26with a gross vehicle weight in excess of 8,000 pounds and that

HB3878- 40 -LRB100 10228 HLH 20411 b
1are subject to the commercial distribution fee imposed under
2Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
31, 2004 and through June 30, 2005, the use in this State of
4motor vehicles of the second division: (i) with a gross vehicle
5weight rating in excess of 8,000 pounds; (ii) that are subject
6to the commercial distribution fee imposed under Section
73-815.1 of the Illinois Vehicle Code; and (iii) that are
8primarily used for commercial purposes. Through June 30, 2005,
9this exemption applies to repair and replacement parts added
10after the initial purchase of such a motor vehicle if that
11motor vehicle is used in a manner that would qualify for the
12rolling stock exemption otherwise provided for in this Act. For
13purposes of this paragraph, the term "used for commercial
14purposes" means the transportation of persons or property in
15furtherance of any commercial or industrial enterprise,
16whether for-hire or not.
17 (34) Beginning January 1, 2008, tangible personal property
18used in the construction or maintenance of a community water
19supply, as defined under Section 3.145 of the Environmental
20Protection Act, that is operated by a not-for-profit
21corporation that holds a valid water supply permit issued under
22Title IV of the Environmental Protection Act. This paragraph is
23exempt from the provisions of Section 3-90.
24 (35) Beginning January 1, 2010, materials, parts,
25equipment, components, and furnishings incorporated into or
26upon an aircraft as part of the modification, refurbishment,

HB3878- 41 -LRB100 10228 HLH 20411 b
1completion, replacement, repair, or maintenance of the
2aircraft. This exemption includes consumable supplies used in
3the modification, refurbishment, completion, replacement,
4repair, and maintenance of aircraft, but excludes any
5materials, parts, equipment, components, and consumable
6supplies used in the modification, replacement, repair, and
7maintenance of aircraft engines or power plants, whether such
8engines or power plants are installed or uninstalled upon any
9such aircraft. "Consumable supplies" include, but are not
10limited to, adhesive, tape, sandpaper, general purpose
11lubricants, cleaning solution, latex gloves, and protective
12films. This exemption applies only to the use of qualifying
13tangible personal property by persons who modify, refurbish,
14complete, repair, replace, or maintain aircraft and who (i)
15hold an Air Agency Certificate and are empowered to operate an
16approved repair station by the Federal Aviation
17Administration, (ii) have a Class IV Rating, and (iii) conduct
18operations in accordance with Part 145 of the Federal Aviation
19Regulations. The exemption does not include aircraft operated
20by a commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part 129
22of the Federal Aviation Regulations. The changes made to this
23paragraph (35) by Public Act 98-534 are declarative of existing
24law.
25 (36) Tangible personal property purchased by a
26public-facilities corporation, as described in Section

HB3878- 42 -LRB100 10228 HLH 20411 b
111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt instruments
8issued by the public-facilities corporation in connection with
9the development of the municipal convention hall. This
10exemption includes existing public-facilities corporations as
11provided in Section 11-65-25 of the Illinois Municipal Code.
12This paragraph is exempt from the provisions of Section 3-90.
13 (37) Beginning January 1, 2017, menstrual pads, tampons,
14and menstrual cups.
15 (38) Beginning on September 24, 2017 and through September
1630, 2017, hunting sales tax holiday items, as defined in
17Section 3-6.5 of this Act.
18(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1998-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
201-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
217-29-15; 99-855, eff. 8-19-16.)
22 (35 ILCS 105/3-6.5 new)
23 Sec. 3-6.5. Hunting sales tax holiday items.
24 (a) Beginning on September 24, 2017 and through September
2530, 2017 (hereinafter referred to as the Hunting Sales Tax

HB3878- 43 -LRB100 10228 HLH 20411 b
1Holiday Period) the following items of tangible personal
2property are exempt as provided in Section 3-5:
3 (1) Firearms which may be used for lawful hunting under
4 the Wildlife Code.
5 (2) Firearm ammunition which may be used for lawful
6 hunting under the Wildlife Code.
7 (b) For purposes of this Section:
8 "Firearms" has the meaning provided in Section 1.1 of the
9Firearm Owners Identification Card Act, except that it is
10limited to those firearms which may be used for lawful hunting
11under the Wildlife Code.
12 "Firearm ammunition" has the meaning provided in Section
131.1 of the Firearm Owners Identification Card Act, except that
14it is limited to firearm ammunition which may be used for
15lawful hunting under the Wildlife Code.
16 (c) Administration. Notwithstanding any other provision of
17this Act, the exemption shall be administered by the Department
18under the provisions of this subsection (c).
19 (1) Bundled sales. Items that qualify for the exemption
20 that are bundled together with items that do not qualify
21 for the exemption and that are sold for one itemized price
22 will be subject to the exemption only if the value of the
23 items that qualify for the exemption exceeds the value of
24 the items that do not qualify for the exemption.
25 (2) Coupons and discounts. An unreimbursed discount by
26 the seller reduces the sales price of the property so that

HB3878- 44 -LRB100 10228 HLH 20411 b
1 the discounted sales price determines whether the sales
2 price is within a sales tax holiday price threshold. A
3 coupon or other reduction in the sales price is treated as
4 a discount if the seller is not reimbursed for the coupon
5 or reduction amount by a third party.
6 (3) Splitting of items normally sold together.
7 Articles that are normally sold as a single unit must
8 continue to be sold in that manner. Such articles cannot be
9 priced separately and sold as individual items in order to
10 obtain the exemption. For example, a box of ammunition
11 cannot have each round of ammunition sold separately so
12 that the sales price of each round is within a hunting
13 sales tax holiday price threshold.
14 (4) Rain checks. A rain check is a procedure that
15 allows a customer to purchase an item at a certain price at
16 a later time because the particular item was out of stock.
17 Eligible property that customers purchase during the
18 Hunting Sales Tax Holiday Period with the use of a rain
19 check will qualify for the 0% rate of tax regardless of
20 when the rain check was issued. Issuance of a rain check
21 during the Hunting Sales Tax Holiday Period will not
22 qualify eligible property for the exemption if the property
23 is actually purchased after the Hunting Sales Tax Holiday
24 Period.
25 (5) Exchanges. The procedure for an exchange in regards
26 to a sales tax holiday is as follows:

HB3878- 45 -LRB100 10228 HLH 20411 b
1 (A) If a customer purchases an item of eligible
2 property during the Hunting Sales Tax Holiday Period,
3 but later exchanges the item for a similar eligible
4 item, even if a different size, different color, or
5 other feature, no additional tax is due even if the
6 exchange is made after the Hunting Sales Tax Holiday
7 Period.
8 (B) If a customer purchases an item of eligible
9 property during the Hunting Sales Tax Holiday Period,
10 but after the Hunting Sales Tax Holiday Period has
11 ended, the customer returns the item and receives
12 credit on the purchase of a different item, the 6.25%
13 general merchandise sales tax rate is due on the sale
14 of the newly purchased item.
15 (C) If a customer purchases an item of eligible
16 property before the Hunting Sales Tax Holiday Period,
17 but during the Hunting Sales Tax Holiday Period the
18 customer returns the item and receives credit on the
19 purchase of a different item of eligible property, the
20 exemption shall be applied to the sale of the new item
21 if the new item is purchased during the Hunting Sales
22 Tax Holiday Period.
23 (6) Delivery charges. Delivery charges, including
24 shipping, handling and service charges, are part of the
25 sales price of eligible property.
26 (7) Order date and back orders. For the purpose of a

HB3878- 46 -LRB100 10228 HLH 20411 b
1 sales tax holiday, eligible property qualifies for the
2 exemption if: (i) the item is both delivered to and paid
3 for by the customer during the Hunting Sales Tax Holiday
4 Period or (ii) the customer orders and pays for the item
5 and the seller accepts the order during the Hunting Sales
6 Tax Holiday Period for immediate shipment, even if delivery
7 is made after the Hunting Sales Tax Holiday Period. The
8 seller accepts an order when the seller has taken action to
9 fill the order for immediate shipment. Actions to fill an
10 order include placement of an "in date" stamp on an order
11 or assignment of an "order number" to an order within the
12 Hunting Sales Tax Holiday Period. An order is for immediate
13 shipment when the customer does not request delayed
14 shipment. An order is for immediate shipment
15 notwithstanding that the shipment may be delayed because of
16 a backlog of orders or because stock is currently
17 unavailable to, or on back order by, the seller.
18 (8) Returns. For a 60-day period immediately after the
19 Hunting Sales Tax Holiday Period, if a customer returns an
20 item that would qualify for the 0% rate of tax, credit for
21 or refund of sales tax shall be given only at the 0% rate
22 unless the customer provides a receipt or invoice that
23 shows tax was paid at the 6.25% general merchandise rate,
24 or the seller has sufficient documentation to show that tax
25 was paid at the 6.25% general merchandise rate on the
26 specific item. This 60-day period is set solely for the

HB3878- 47 -LRB100 10228 HLH 20411 b
1 purpose of designating a time period during which the
2 customer must provide documentation that shows that the
3 appropriate sales tax rate was paid on returned
4 merchandise. The 60-day period is not intended to change a
5 seller's policy on the time period during which the seller
6 will accept returns.
7 (d) The Department may implement the provisions of this
8Section through the use of emergency rules, along with
9permanent rules filed concurrently with such emergency rules,
10in accordance with the provisions of Section 5-45 of the
11Illinois Administrative Procedure Act. For purposes of the
12Illinois Administrative Procedure Act, the adoption of rules to
13implement the provisions of this Section shall be deemed an
14emergency and necessary for the public interest, safety, and
15welfare.
16 Section 15. The Retailers' Occupation Tax Act is amended by
17changing Section 2-5 and by adding Section 2-8.5 as follows:
18 (35 ILCS 120/2-5)
19 Sec. 2-5. Exemptions. Gross receipts from proceeds from the
20sale of the following tangible personal property are exempt
21from the tax imposed by this Act:
22 (1) Farm chemicals.
23 (2) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the

HB3878- 48 -LRB100 10228 HLH 20411 b
1purchaser to be used primarily for production agriculture or
2State or federal agricultural programs, including individual
3replacement parts for the machinery and equipment, including
4machinery and equipment purchased for lease, and including
5implements of husbandry defined in Section 1-130 of the
6Illinois Vehicle Code, farm machinery and agricultural
7chemical and fertilizer spreaders, and nurse wagons required to
8be registered under Section 3-809 of the Illinois Vehicle Code,
9but excluding other motor vehicles required to be registered
10under the Illinois Vehicle Code. Horticultural polyhouses or
11hoop houses used for propagating, growing, or overwintering
12plants shall be considered farm machinery and equipment under
13this item (2). Agricultural chemical tender tanks and dry boxes
14shall include units sold separately from a motor vehicle
15required to be licensed and units sold mounted on a motor
16vehicle required to be licensed, if the selling price of the
17tender is separately stated.
18 Farm machinery and equipment shall include precision
19farming equipment that is installed or purchased to be
20installed on farm machinery and equipment including, but not
21limited to, tractors, harvesters, sprayers, planters, seeders,
22or spreaders. Precision farming equipment includes, but is not
23limited to, soil testing sensors, computers, monitors,
24software, global positioning and mapping systems, and other
25such equipment.
26 Farm machinery and equipment also includes computers,

HB3878- 49 -LRB100 10228 HLH 20411 b
1sensors, software, and related equipment used primarily in the
2computer-assisted operation of production agriculture
3facilities, equipment, and activities such as, but not limited
4to, the collection, monitoring, and correlation of animal and
5crop data for the purpose of formulating animal diets and
6agricultural chemicals. This item (2) is exempt from the
7provisions of Section 2-70.
8 (3) Until July 1, 2003, distillation machinery and
9equipment, sold as a unit or kit, assembled or installed by the
10retailer, certified by the user to be used only for the
11production of ethyl alcohol that will be used for consumption
12as motor fuel or as a component of motor fuel for the personal
13use of the user, and not subject to sale or resale.
14 (4) Until July 1, 2003 and beginning again September 1,
152004 through August 30, 2014, graphic arts machinery and
16equipment, including repair and replacement parts, both new and
17used, and including that manufactured on special order or
18purchased for lease, certified by the purchaser to be used
19primarily for graphic arts production. Equipment includes
20chemicals or chemicals acting as catalysts but only if the
21chemicals or chemicals acting as catalysts effect a direct and
22immediate change upon a graphic arts product.
23 (5) A motor vehicle that is used for automobile renting, as
24defined in the Automobile Renting Occupation and Use Tax Act.
25This paragraph is exempt from the provisions of Section 2-70.
26 (6) Personal property sold by a teacher-sponsored student

HB3878- 50 -LRB100 10228 HLH 20411 b
1organization affiliated with an elementary or secondary school
2located in Illinois.
3 (7) Until July 1, 2003, proceeds of that portion of the
4selling price of a passenger car the sale of which is subject
5to the Replacement Vehicle Tax.
6 (8) Personal property sold to an Illinois county fair
7association for use in conducting, operating, or promoting the
8county fair.
9 (9) Personal property sold to a not-for-profit arts or
10cultural organization that establishes, by proof required by
11the Department by rule, that it has received an exemption under
12Section 501(c)(3) of the Internal Revenue Code and that is
13organized and operated primarily for the presentation or
14support of arts or cultural programming, activities, or
15services. These organizations include, but are not limited to,
16music and dramatic arts organizations such as symphony
17orchestras and theatrical groups, arts and cultural service
18organizations, local arts councils, visual arts organizations,
19and media arts organizations. On and after the effective date
20of this amendatory Act of the 92nd General Assembly, however,
21an entity otherwise eligible for this exemption shall not make
22tax-free purchases unless it has an active identification
23number issued by the Department.
24 (10) Personal property sold by a corporation, society,
25association, foundation, institution, or organization, other
26than a limited liability company, that is organized and

HB3878- 51 -LRB100 10228 HLH 20411 b
1operated as a not-for-profit service enterprise for the benefit
2of persons 65 years of age or older if the personal property
3was not purchased by the enterprise for the purpose of resale
4by the enterprise.
5 (11) Personal property sold to a governmental body, to a
6corporation, society, association, foundation, or institution
7organized and operated exclusively for charitable, religious,
8or educational purposes, or to a not-for-profit corporation,
9society, association, foundation, institution, or organization
10that has no compensated officers or employees and that is
11organized and operated primarily for the recreation of persons
1255 years of age or older. A limited liability company may
13qualify for the exemption under this paragraph only if the
14limited liability company is organized and operated
15exclusively for educational purposes. On and after July 1,
161987, however, no entity otherwise eligible for this exemption
17shall make tax-free purchases unless it has an active
18identification number issued by the Department.
19 (12) Tangible personal property sold to interstate
20carriers for hire for use as rolling stock moving in interstate
21commerce or to lessors under leases of one year or longer
22executed or in effect at the time of purchase by interstate
23carriers for hire for use as rolling stock moving in interstate
24commerce and equipment operated by a telecommunications
25provider, licensed as a common carrier by the Federal
26Communications Commission, which is permanently installed in

HB3878- 52 -LRB100 10228 HLH 20411 b
1or affixed to aircraft moving in interstate commerce.
2 (12-5) On and after July 1, 2003 and through June 30, 2004,
3motor vehicles of the second division with a gross vehicle
4weight in excess of 8,000 pounds that are subject to the
5commercial distribution fee imposed under Section 3-815.1 of
6the Illinois Vehicle Code. Beginning on July 1, 2004 and
7through June 30, 2005, the use in this State of motor vehicles
8of the second division: (i) with a gross vehicle weight rating
9in excess of 8,000 pounds; (ii) that are subject to the
10commercial distribution fee imposed under Section 3-815.1 of
11the Illinois Vehicle Code; and (iii) that are primarily used
12for commercial purposes. Through June 30, 2005, this exemption
13applies to repair and replacement parts added after the initial
14purchase of such a motor vehicle if that motor vehicle is used
15in a manner that would qualify for the rolling stock exemption
16otherwise provided for in this Act. For purposes of this
17paragraph, "used for commercial purposes" means the
18transportation of persons or property in furtherance of any
19commercial or industrial enterprise whether for-hire or not.
20 (13) Proceeds from sales to owners, lessors, or shippers of
21tangible personal property that is utilized by interstate
22carriers for hire for use as rolling stock moving in interstate
23commerce and equipment operated by a telecommunications
24provider, licensed as a common carrier by the Federal
25Communications Commission, which is permanently installed in
26or affixed to aircraft moving in interstate commerce.

HB3878- 53 -LRB100 10228 HLH 20411 b
1 (14) Machinery and equipment that will be used by the
2purchaser, or a lessee of the purchaser, primarily in the
3process of manufacturing or assembling tangible personal
4property for wholesale or retail sale or lease, whether the
5sale or lease is made directly by the manufacturer or by some
6other person, whether the materials used in the process are
7owned by the manufacturer or some other person, or whether the
8sale or lease is made apart from or as an incident to the
9seller's engaging in the service occupation of producing
10machines, tools, dies, jigs, patterns, gauges, or other similar
11items of no commercial value on special order for a particular
12purchaser. The exemption provided by this paragraph (14) does
13not include machinery and equipment used in (i) the generation
14of electricity for wholesale or retail sale; (ii) the
15generation or treatment of natural or artificial gas for
16wholesale or retail sale that is delivered to customers through
17pipes, pipelines, or mains; or (iii) the treatment of water for
18wholesale or retail sale that is delivered to customers through
19pipes, pipelines, or mains. The provisions of Public Act 98-583
20are declaratory of existing law as to the meaning and scope of
21this exemption.
22 (15) Proceeds of mandatory service charges separately
23stated on customers' bills for purchase and consumption of food
24and beverages, to the extent that the proceeds of the service
25charge are in fact turned over as tips or as a substitute for
26tips to the employees who participate directly in preparing,

HB3878- 54 -LRB100 10228 HLH 20411 b
1serving, hosting or cleaning up the food or beverage function
2with respect to which the service charge is imposed.
3 (16) Petroleum products sold to a purchaser if the seller
4is prohibited by federal law from charging tax to the
5purchaser.
6 (17) Tangible personal property sold to a common carrier by
7rail or motor that receives the physical possession of the
8property in Illinois and that transports the property, or
9shares with another common carrier in the transportation of the
10property, out of Illinois on a standard uniform bill of lading
11showing the seller of the property as the shipper or consignor
12of the property to a destination outside Illinois, for use
13outside Illinois.
14 (18) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18 (19) Until July 1 2003, oil field exploration, drilling,
19and production equipment, including (i) rigs and parts of rigs,
20rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
21tubular goods, including casing and drill strings, (iii) pumps
22and pump-jack units, (iv) storage tanks and flow lines, (v) any
23individual replacement part for oil field exploration,
24drilling, and production equipment, and (vi) machinery and
25equipment purchased for lease; but excluding motor vehicles
26required to be registered under the Illinois Vehicle Code.

HB3878- 55 -LRB100 10228 HLH 20411 b
1 (20) Photoprocessing machinery and equipment, including
2repair and replacement parts, both new and used, including that
3manufactured on special order, certified by the purchaser to be
4used primarily for photoprocessing, and including
5photoprocessing machinery and equipment purchased for lease.
6 (21) Coal and aggregate exploration, mining, off-highway
7hauling, processing, maintenance, and reclamation equipment,
8including replacement parts and equipment, and including
9equipment purchased for lease, but excluding motor vehicles
10required to be registered under the Illinois Vehicle Code. The
11changes made to this Section by Public Act 97-767 apply on and
12after July 1, 2003, but no claim for credit or refund is
13allowed on or after August 16, 2013 (the effective date of
14Public Act 98-456) for such taxes paid during the period
15beginning July 1, 2003 and ending on August 16, 2013 (the
16effective date of Public Act 98-456).
17 (22) Until June 30, 2013, fuel and petroleum products sold
18to or used by an air carrier, certified by the carrier to be
19used for consumption, shipment, or storage in the conduct of
20its business as an air common carrier, for a flight destined
21for or returning from a location or locations outside the
22United States without regard to previous or subsequent domestic
23stopovers.
24 Beginning July 1, 2013, fuel and petroleum products sold to
25or used by an air carrier, certified by the carrier to be used
26for consumption, shipment, or storage in the conduct of its

HB3878- 56 -LRB100 10228 HLH 20411 b
1business as an air common carrier, for a flight that (i) is
2engaged in foreign trade or is engaged in trade between the
3United States and any of its possessions and (ii) transports at
4least one individual or package for hire from the city of
5origination to the city of final destination on the same
6aircraft, without regard to a change in the flight number of
7that aircraft.
8 (23) A transaction in which the purchase order is received
9by a florist who is located outside Illinois, but who has a
10florist located in Illinois deliver the property to the
11purchaser or the purchaser's donee in Illinois.
12 (24) Fuel consumed or used in the operation of ships,
13barges, or vessels that are used primarily in or for the
14transportation of property or the conveyance of persons for
15hire on rivers bordering on this State if the fuel is delivered
16by the seller to the purchaser's barge, ship, or vessel while
17it is afloat upon that bordering river.
18 (25) Except as provided in item (25-5) of this Section, a
19motor vehicle sold in this State to a nonresident even though
20the motor vehicle is delivered to the nonresident in this
21State, if the motor vehicle is not to be titled in this State,
22and if a drive-away permit is issued to the motor vehicle as
23provided in Section 3-603 of the Illinois Vehicle Code or if
24the nonresident purchaser has vehicle registration plates to
25transfer to the motor vehicle upon returning to his or her home
26state. The issuance of the drive-away permit or having the

HB3878- 57 -LRB100 10228 HLH 20411 b
1out-of-state registration plates to be transferred is prima
2facie evidence that the motor vehicle will not be titled in
3this State.
4 (25-5) The exemption under item (25) does not apply if the
5state in which the motor vehicle will be titled does not allow
6a reciprocal exemption for a motor vehicle sold and delivered
7in that state to an Illinois resident but titled in Illinois.
8The tax collected under this Act on the sale of a motor vehicle
9in this State to a resident of another state that does not
10allow a reciprocal exemption shall be imposed at a rate equal
11to the state's rate of tax on taxable property in the state in
12which the purchaser is a resident, except that the tax shall
13not exceed the tax that would otherwise be imposed under this
14Act. At the time of the sale, the purchaser shall execute a
15statement, signed under penalty of perjury, of his or her
16intent to title the vehicle in the state in which the purchaser
17is a resident within 30 days after the sale and of the fact of
18the payment to the State of Illinois of tax in an amount
19equivalent to the state's rate of tax on taxable property in
20his or her state of residence and shall submit the statement to
21the appropriate tax collection agency in his or her state of
22residence. In addition, the retailer must retain a signed copy
23of the statement in his or her records. Nothing in this item
24shall be construed to require the removal of the vehicle from
25this state following the filing of an intent to title the
26vehicle in the purchaser's state of residence if the purchaser

HB3878- 58 -LRB100 10228 HLH 20411 b
1titles the vehicle in his or her state of residence within 30
2days after the date of sale. The tax collected under this Act
3in accordance with this item (25-5) shall be proportionately
4distributed as if the tax were collected at the 6.25% general
5rate imposed under this Act.
6 (25-7) Beginning on July 1, 2007, no tax is imposed under
7this Act on the sale of an aircraft, as defined in Section 3 of
8the Illinois Aeronautics Act, if all of the following
9conditions are met:
10 (1) the aircraft leaves this State within 15 days after
11 the later of either the issuance of the final billing for
12 the sale of the aircraft, or the authorized approval for
13 return to service, completion of the maintenance record
14 entry, and completion of the test flight and ground test
15 for inspection, as required by 14 C.F.R. 91.407;
16 (2) the aircraft is not based or registered in this
17 State after the sale of the aircraft; and
18 (3) the seller retains in his or her books and records
19 and provides to the Department a signed and dated
20 certification from the purchaser, on a form prescribed by
21 the Department, certifying that the requirements of this
22 item (25-7) are met. The certificate must also include the
23 name and address of the purchaser, the address of the
24 location where the aircraft is to be titled or registered,
25 the address of the primary physical location of the
26 aircraft, and other information that the Department may

HB3878- 59 -LRB100 10228 HLH 20411 b
1 reasonably require.
2 For purposes of this item (25-7):
3 "Based in this State" means hangared, stored, or otherwise
4used, excluding post-sale customizations as defined in this
5Section, for 10 or more days in each 12-month period
6immediately following the date of the sale of the aircraft.
7 "Registered in this State" means an aircraft registered
8with the Department of Transportation, Aeronautics Division,
9or titled or registered with the Federal Aviation
10Administration to an address located in this State.
11 This paragraph (25-7) is exempt from the provisions of
12Section 2-70.
13 (26) Semen used for artificial insemination of livestock
14for direct agricultural production.
15 (27) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (27) is exempt from the provisions
21of Section 2-70, and the exemption provided for under this item
22(27) applies for all periods beginning May 30, 1995, but no
23claim for credit or refund is allowed on or after January 1,
242008 (the effective date of Public Act 95-88) for such taxes
25paid during the period beginning May 30, 2000 and ending on
26January 1, 2008 (the effective date of Public Act 95-88).

HB3878- 60 -LRB100 10228 HLH 20411 b
1 (28) Computers and communications equipment utilized for
2any hospital purpose and equipment used in the diagnosis,
3analysis, or treatment of hospital patients sold to a lessor
4who leases the equipment, under a lease of one year or longer
5executed or in effect at the time of the purchase, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8this Act.
9 (29) Personal property sold to a lessor who leases the
10property, under a lease of one year or longer executed or in
11effect at the time of the purchase, to a governmental body that
12has been issued an active tax exemption identification number
13by the Department under Section 1g of this Act.
14 (30) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is donated for
17disaster relief to be used in a State or federally declared
18disaster area in Illinois or bordering Illinois by a
19manufacturer or retailer that is registered in this State to a
20corporation, society, association, foundation, or institution
21that has been issued a sales tax exemption identification
22number by the Department that assists victims of the disaster
23who reside within the declared disaster area.
24 (31) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is used in the

HB3878- 61 -LRB100 10228 HLH 20411 b
1performance of infrastructure repairs in this State, including
2but not limited to municipal roads and streets, access roads,
3bridges, sidewalks, waste disposal systems, water and sewer
4line extensions, water distribution and purification
5facilities, storm water drainage and retention facilities, and
6sewage treatment facilities, resulting from a State or
7federally declared disaster in Illinois or bordering Illinois
8when such repairs are initiated on facilities located in the
9declared disaster area within 6 months after the disaster.
10 (32) Beginning July 1, 1999, game or game birds sold at a
11"game breeding and hunting preserve area" as that term is used
12in the Wildlife Code. This paragraph is exempt from the
13provisions of Section 2-70.
14 (33) A motor vehicle, as that term is defined in Section
151-146 of the Illinois Vehicle Code, that is donated to a
16corporation, limited liability company, society, association,
17foundation, or institution that is determined by the Department
18to be organized and operated exclusively for educational
19purposes. For purposes of this exemption, "a corporation,
20limited liability company, society, association, foundation,
21or institution organized and operated exclusively for
22educational purposes" means all tax-supported public schools,
23private schools that offer systematic instruction in useful
24branches of learning by methods common to public schools and
25that compare favorably in their scope and intensity with the
26course of study presented in tax-supported schools, and

HB3878- 62 -LRB100 10228 HLH 20411 b
1vocational or technical schools or institutes organized and
2operated exclusively to provide a course of study of not less
3than 6 weeks duration and designed to prepare individuals to
4follow a trade or to pursue a manual, technical, mechanical,
5industrial, business, or commercial occupation.
6 (34) Beginning January 1, 2000, personal property,
7including food, purchased through fundraising events for the
8benefit of a public or private elementary or secondary school,
9a group of those schools, or one or more school districts if
10the events are sponsored by an entity recognized by the school
11district that consists primarily of volunteers and includes
12parents and teachers of the school children. This paragraph
13does not apply to fundraising events (i) for the benefit of
14private home instruction or (ii) for which the fundraising
15entity purchases the personal property sold at the events from
16another individual or entity that sold the property for the
17purpose of resale by the fundraising entity and that profits
18from the sale to the fundraising entity. This paragraph is
19exempt from the provisions of Section 2-70.
20 (35) Beginning January 1, 2000 and through December 31,
212001, new or used automatic vending machines that prepare and
22serve hot food and beverages, including coffee, soup, and other
23items, and replacement parts for these machines. Beginning
24January 1, 2002 and through June 30, 2003, machines and parts
25for machines used in commercial, coin-operated amusement and
26vending business if a use or occupation tax is paid on the

HB3878- 63 -LRB100 10228 HLH 20411 b
1gross receipts derived from the use of the commercial,
2coin-operated amusement and vending machines. This paragraph
3is exempt from the provisions of Section 2-70.
4 (35-5) Beginning August 23, 2001 and through June 30, 2016,
5food for human consumption that is to be consumed off the
6premises where it is sold (other than alcoholic beverages, soft
7drinks, and food that has been prepared for immediate
8consumption) and prescription and nonprescription medicines,
9drugs, medical appliances, and insulin, urine testing
10materials, syringes, and needles used by diabetics, for human
11use, when purchased for use by a person receiving medical
12assistance under Article V of the Illinois Public Aid Code who
13resides in a licensed long-term care facility, as defined in
14the Nursing Home Care Act, or a licensed facility as defined in
15the ID/DD Community Care Act, the MC/DD Act, or the Specialized
16Mental Health Rehabilitation Act of 2013.
17 (36) Beginning August 2, 2001, computers and
18communications equipment utilized for any hospital purpose and
19equipment used in the diagnosis, analysis, or treatment of
20hospital patients sold to a lessor who leases the equipment,
21under a lease of one year or longer executed or in effect at
22the time of the purchase, to a hospital that has been issued an
23active tax exemption identification number by the Department
24under Section 1g of this Act. This paragraph is exempt from the
25provisions of Section 2-70.
26 (37) Beginning August 2, 2001, personal property sold to a

HB3878- 64 -LRB100 10228 HLH 20411 b
1lessor who leases the property, under a lease of one year or
2longer executed or in effect at the time of the purchase, to a
3governmental body that has been issued an active tax exemption
4identification number by the Department under Section 1g of
5this Act. This paragraph is exempt from the provisions of
6Section 2-70.
7 (38) Beginning on January 1, 2002 and through June 30,
82016, tangible personal property purchased from an Illinois
9retailer by a taxpayer engaged in centralized purchasing
10activities in Illinois who will, upon receipt of the property
11in Illinois, temporarily store the property in Illinois (i) for
12the purpose of subsequently transporting it outside this State
13for use or consumption thereafter solely outside this State or
14(ii) for the purpose of being processed, fabricated, or
15manufactured into, attached to, or incorporated into other
16tangible personal property to be transported outside this State
17and thereafter used or consumed solely outside this State. The
18Director of Revenue shall, pursuant to rules adopted in
19accordance with the Illinois Administrative Procedure Act,
20issue a permit to any taxpayer in good standing with the
21Department who is eligible for the exemption under this
22paragraph (38). The permit issued under this paragraph (38)
23shall authorize the holder, to the extent and in the manner
24specified in the rules adopted under this Act, to purchase
25tangible personal property from a retailer exempt from the
26taxes imposed by this Act. Taxpayers shall maintain all

HB3878- 65 -LRB100 10228 HLH 20411 b
1necessary books and records to substantiate the use and
2consumption of all such tangible personal property outside of
3the State of Illinois.
4 (39) Beginning January 1, 2008, tangible personal property
5used in the construction or maintenance of a community water
6supply, as defined under Section 3.145 of the Environmental
7Protection Act, that is operated by a not-for-profit
8corporation that holds a valid water supply permit issued under
9Title IV of the Environmental Protection Act. This paragraph is
10exempt from the provisions of Section 2-70.
11 (40) Beginning January 1, 2010, materials, parts,
12equipment, components, and furnishings incorporated into or
13upon an aircraft as part of the modification, refurbishment,
14completion, replacement, repair, or maintenance of the
15aircraft. This exemption includes consumable supplies used in
16the modification, refurbishment, completion, replacement,
17repair, and maintenance of aircraft, but excludes any
18materials, parts, equipment, components, and consumable
19supplies used in the modification, replacement, repair, and
20maintenance of aircraft engines or power plants, whether such
21engines or power plants are installed or uninstalled upon any
22such aircraft. "Consumable supplies" include, but are not
23limited to, adhesive, tape, sandpaper, general purpose
24lubricants, cleaning solution, latex gloves, and protective
25films. This exemption applies only to the sale of qualifying
26tangible personal property to persons who modify, refurbish,

HB3878- 66 -LRB100 10228 HLH 20411 b
1complete, replace, or maintain an aircraft and who (i) hold an
2Air Agency Certificate and are empowered to operate an approved
3repair station by the Federal Aviation Administration, (ii)
4have a Class IV Rating, and (iii) conduct operations in
5accordance with Part 145 of the Federal Aviation Regulations.
6The exemption does not include aircraft operated by a
7commercial air carrier providing scheduled passenger air
8service pursuant to authority issued under Part 121 or Part 129
9of the Federal Aviation Regulations. The changes made to this
10paragraph (40) by Public Act 98-534 are declarative of existing
11law.
12 (41) Tangible personal property sold to a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 2-70.
26 (42) Beginning January 1, 2017, menstrual pads, tampons,

HB3878- 67 -LRB100 10228 HLH 20411 b
1and menstrual cups.
2 (43) Beginning on September 24, 2017 and through September
330, 2017, hunting sales tax holiday items, as defined in
4Section 2-8.5 of this Act.
5(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
698-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
71-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.
87-29-15; 99-855, eff. 8-19-16.)
9 (35 ILCS 120/2-8.5 new)
10 Sec. 2-8.5. Hunting sales tax holiday items.
11 (a) Beginning on September 24, 2017 and through September
1230, 2017 (hereinafter referred to as the Hunting Sales Tax
13Holiday Period) the following items of tangible personal
14property are exempt as provided in Section 2-5:
15 (1) Firearms which may be used for lawful hunting under
16 the Wildlife Code.
17 (2) Firearm ammunition which may be used for lawful
18 hunting under the Wildlife Code.
19 (b) For purposes of this Section:
20 "Firearms" has the meaning provided in Section 1.1 of the
21Firearm Owners Identification Card Act, except that it is
22limited to those firearms which may be used for lawful hunting
23under the Wildlife Code.
24 "Firearm ammunition" has the meaning provided in Section
251.1 of the Firearm Owners Identification Card Act, except that

HB3878- 68 -LRB100 10228 HLH 20411 b
1it is limited to firearm ammunition which may be used for
2lawful hunting under the Wildlife Code.
3 (c) Administration. Notwithstanding any other provision of
4this Act, the exemption shall be administered by the Department
5under the provisions of this subsection (c).
6 (1) Bundled sales. Items that qualify for the exemption
7 that are bundled together with items that do not qualify
8 for the exemption and that are sold for one itemized price
9 will be subject to the exemption only if the value of the
10 items that qualify for the exemption exceeds the value of
11 the items that do not qualify for the exemption.
12 (2) Coupons and discounts. An unreimbursed discount by
13 the seller reduces the sales price of the property so that
14 the discounted sales price determines whether the sales
15 price is within a sales tax holiday price threshold. A
16 coupon or other reduction in the sales price is treated as
17 a discount if the seller is not reimbursed for the coupon
18 or reduction amount by a third party.
19 (3) Splitting of items normally sold together.
20 Articles that are normally sold as a single unit must
21 continue to be sold in that manner. Such articles cannot be
22 priced separately and sold as individual items in order to
23 obtain the exemption. For example, a box of ammunition
24 cannot have each round of ammunition sold separately so
25 that the sales price of each round is within a hunting
26 sales tax holiday price threshold.

HB3878- 69 -LRB100 10228 HLH 20411 b
1 (4) Rain checks. A rain check is a procedure that
2 allows a customer to purchase an item at a certain price at
3 a later time because the particular item was out of stock.
4 Eligible property that customers purchase during the
5 Hunting Sales Tax Holiday Period with the use of a rain
6 check will qualify for the 0% rate of tax regardless of
7 when the rain check was issued. Issuance of a rain check
8 during the Hunting Sales Tax Holiday Period will not
9 qualify eligible property for the exemption if the property
10 is actually purchased after the Hunting Sales Tax Holiday
11 Period.
12 (5) Exchanges. The procedure for an exchange in regards
13 to a sales tax holiday is as follows:
14 (A) If a customer purchases an item of eligible
15 property during the Hunting Sales Tax Holiday Period,
16 but later exchanges the item for a similar eligible
17 item, even if a different size, different color, or
18 other feature, no additional tax is due even if the
19 exchange is made after the Hunting Sales Tax Holiday
20 Period.
21 (B) If a customer purchases an item of eligible
22 property during the Hunting Sales Tax Holiday Period,
23 but after the Hunting Sales Tax Holiday Period has
24 ended, the customer returns the item and receives
25 credit on the purchase of a different item, the 6.25%
26 general merchandise sales tax rate is due on the sale

HB3878- 70 -LRB100 10228 HLH 20411 b
1 of the newly purchased item.
2 (C) If a customer purchases an item of eligible
3 property before the Hunting Sales Tax Holiday Period,
4 but during the Hunting Sales Tax Holiday Period the
5 customer returns the item and receives credit on the
6 purchase of a different item of eligible property, the
7 exemption shall be applied to the sale of the new item
8 if the new item is purchased during the Hunting Sales
9 Tax Holiday Period.
10 (6) Delivery charges. Delivery charges, including
11 shipping, handling and service charges, are part of the
12 sales price of eligible property.
13 (7) Order date and back orders. For the purpose of a
14 sales tax holiday, eligible property qualifies for the
15 exemption if: (i) the item is both delivered to and paid
16 for by the customer during the Hunting Sales Tax Holiday
17 Period or (ii) the customer orders and pays for the item
18 and the seller accepts the order during the Hunting Sales
19 Tax Holiday Period for immediate shipment, even if delivery
20 is made after the Hunting Sales Tax Holiday Period. The
21 seller accepts an order when the seller has taken action to
22 fill the order for immediate shipment. Actions to fill an
23 order include placement of an "in date" stamp on an order
24 or assignment of an "order number" to an order within the
25 Hunting Sales Tax Holiday Period. An order is for immediate
26 shipment when the customer does not request delayed

HB3878- 71 -LRB100 10228 HLH 20411 b
1 shipment. An order is for immediate shipment
2 notwithstanding that the shipment may be delayed because of
3 a backlog of orders or because stock is currently
4 unavailable to, or on back order by, the seller.
5 (8) Returns. For a 60-day period immediately after the
6 Hunting Sales Tax Holiday Period, if a customer returns an
7 item that would qualify for the 0% rate of tax, credit for
8 or refund of sales tax shall be given only at the 0% rate
9 unless the customer provides a receipt or invoice that
10 shows tax was paid at the 6.25% general merchandise rate,
11 or the seller has sufficient documentation to show that tax
12 was paid at the 6.25% general merchandise rate on the
13 specific item. This 60-day period is set solely for the
14 purpose of designating a time period during which the
15 customer must provide documentation that shows that the
16 appropriate sales tax rate was paid on returned
17 merchandise. The 60-day period is not intended to change a
18 seller's policy on the time period during which the seller
19 will accept returns.
20 (d) The Department may implement the provisions of this
21Section through the use of emergency rules, along with
22permanent rules filed concurrently with such emergency rules,
23in accordance with the provisions of Section 5-45 of the
24Illinois Administrative Procedure Act. For purposes of the
25Illinois Administrative Procedure Act, the adoption of rules to
26implement the provisions of this Section shall be deemed an

HB3878- 72 -LRB100 10228 HLH 20411 b
1emergency and necessary for the public interest, safety, and
2welfare.
3 Section 95. No acceleration or delay. Where this Act makes
4changes in a statute that is represented in this Act by text
5that is not yet or no longer in effect (for example, a Section
6represented by multiple versions), the use of that text does
7not accelerate or delay the taking effect of (i) the changes
8made by this Act or (ii) provisions derived from any other
9Public Act.
10 Section 99. Effective date. This Act takes effect upon
11becoming law.
feedback