Bill Text: IL HB5735 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reinstates the graphic arts machinery and equipment exemption and the corresponding Manufacturer's Purchase Credit on and after January 1, 2019. Provides that those credits are exempt from the Acts' automatic sunset provisions. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB5735 Detail]
Download: Illinois-2017-HB5735-Introduced.html
| |||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||||||||
4 | Section 5. The Use Tax Act is amended by changing Sections | ||||||||||||||||||||||||||||||||||
5 | 3-5 and 3-85 as follows:
| ||||||||||||||||||||||||||||||||||
6 | (35 ILCS 105/3-5)
| ||||||||||||||||||||||||||||||||||
7 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||||||||||||||||||||||||||||||
8 | personal property is exempt from the tax imposed by this Act:
| ||||||||||||||||||||||||||||||||||
9 | (1) Personal property purchased from a corporation, | ||||||||||||||||||||||||||||||||||
10 | society, association,
foundation, institution, or | ||||||||||||||||||||||||||||||||||
11 | organization, other than a limited liability
company, that is | ||||||||||||||||||||||||||||||||||
12 | organized and operated as a not-for-profit service enterprise
| ||||||||||||||||||||||||||||||||||
13 | for the benefit of persons 65 years of age or older if the | ||||||||||||||||||||||||||||||||||
14 | personal property was not purchased by the enterprise for the | ||||||||||||||||||||||||||||||||||
15 | purpose of resale by the
enterprise.
| ||||||||||||||||||||||||||||||||||
16 | (2) Personal property purchased by a not-for-profit | ||||||||||||||||||||||||||||||||||
17 | Illinois county
fair association for use in conducting, | ||||||||||||||||||||||||||||||||||
18 | operating, or promoting the
county fair.
| ||||||||||||||||||||||||||||||||||
19 | (3) Personal property purchased by a not-for-profit
arts or | ||||||||||||||||||||||||||||||||||
20 | cultural organization that establishes, by proof required by | ||||||||||||||||||||||||||||||||||
21 | the
Department by
rule, that it has received an exemption under | ||||||||||||||||||||||||||||||||||
22 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||||||||||||||||||||||||||||||
23 | organized and operated primarily for the
presentation
or |
| |||||||
| |||||||
1 | support of arts or cultural programming, activities, or | ||||||
2 | services. These
organizations include, but are not limited to, | ||||||
3 | music and dramatic arts
organizations such as symphony | ||||||
4 | orchestras and theatrical groups, arts and
cultural service | ||||||
5 | organizations, local arts councils, visual arts organizations,
| ||||||
6 | and media arts organizations.
On and after July 1, 2001 ( the | ||||||
7 | effective date of Public Act 92-35) this amendatory Act of the | ||||||
8 | 92nd General
Assembly , however, an entity otherwise eligible | ||||||
9 | for this exemption shall not
make tax-free purchases unless it | ||||||
10 | has an active identification number issued by
the Department.
| ||||||
11 | (4) Personal property purchased by a governmental body, by | ||||||
12 | a
corporation, society, association, foundation, or | ||||||
13 | institution organized and
operated exclusively for charitable, | ||||||
14 | religious, or educational purposes, or
by a not-for-profit | ||||||
15 | corporation, society, association, foundation,
institution, or | ||||||
16 | organization that has no compensated officers or employees
and | ||||||
17 | that is organized and operated primarily for the recreation of | ||||||
18 | persons
55 years of age or older. A limited liability company | ||||||
19 | may qualify for the
exemption under this paragraph only if the | ||||||
20 | limited liability company is
organized and operated | ||||||
21 | exclusively for educational purposes. On and after July
1, | ||||||
22 | 1987, however, no entity otherwise eligible for this exemption | ||||||
23 | shall make
tax-free purchases unless it has an active exemption | ||||||
24 | identification number
issued by the Department.
| ||||||
25 | (5) Until July 1, 2003, a passenger car that is a | ||||||
26 | replacement vehicle to
the extent that the
purchase price of |
| |||||||
| |||||||
1 | the car is subject to the Replacement Vehicle Tax.
| ||||||
2 | (6) Until July 1, 2003 , and beginning again on September 1, | ||||||
3 | 2004 through August 30, 2014, and beginning again on January 1, | ||||||
4 | 2019, graphic arts machinery and equipment, including
repair | ||||||
5 | and replacement
parts, both new and used, and including that | ||||||
6 | manufactured on special order,
certified by the purchaser to be | ||||||
7 | used primarily for graphic arts production,
and including | ||||||
8 | machinery and equipment purchased for lease.
Equipment | ||||||
9 | includes chemicals or chemicals acting as catalysts but only if
| ||||||
10 | the
chemicals or chemicals acting as catalysts effect a direct | ||||||
11 | and immediate change
upon a graphic arts product. Beginning on | ||||||
12 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
13 | in the manufacturing and assembling machinery and equipment | ||||||
14 | exemption under paragraph (18). This item (6) is exempt
from | ||||||
15 | the provisions of
Section 3-90.
| ||||||
16 | (7) Farm chemicals.
| ||||||
17 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
18 | coinage issued by
the State of Illinois, the government of the | ||||||
19 | United States of America, or the
government of any foreign | ||||||
20 | country, and bullion.
| ||||||
21 | (9) Personal property purchased from a teacher-sponsored | ||||||
22 | student
organization affiliated with an elementary or | ||||||
23 | secondary school located in
Illinois.
| ||||||
24 | (10) A motor vehicle that is used for automobile renting, | ||||||
25 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
26 | Act.
|
| |||||||
| |||||||
1 | (11) Farm machinery and equipment, both new and used,
| ||||||
2 | including that manufactured on special order, certified by the | ||||||
3 | purchaser
to be used primarily for production agriculture or | ||||||
4 | State or federal
agricultural programs, including individual | ||||||
5 | replacement parts for
the machinery and equipment, including | ||||||
6 | machinery and equipment
purchased
for lease,
and including | ||||||
7 | implements of husbandry defined in Section 1-130 of
the | ||||||
8 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
9 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
10 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
11 | but excluding other motor
vehicles required to be
registered | ||||||
12 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
13 | hoop houses used for propagating, growing, or
overwintering | ||||||
14 | plants shall be considered farm machinery and equipment under
| ||||||
15 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
16 | boxes shall include units sold
separately from a motor vehicle | ||||||
17 | required to be licensed and units sold mounted
on a motor | ||||||
18 | vehicle required to be licensed if the selling price of the | ||||||
19 | tender
is separately stated.
| ||||||
20 | Farm machinery and equipment shall include precision | ||||||
21 | farming equipment
that is
installed or purchased to be | ||||||
22 | installed on farm machinery and equipment
including, but not | ||||||
23 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
24 | or spreaders.
Precision farming equipment includes, but is not | ||||||
25 | limited to, soil testing
sensors, computers, monitors, | ||||||
26 | software, global positioning
and mapping systems, and other |
| |||||||
| |||||||
1 | such equipment.
| ||||||
2 | Farm machinery and equipment also includes computers, | ||||||
3 | sensors, software, and
related equipment used primarily in the
| ||||||
4 | computer-assisted operation of production agriculture | ||||||
5 | facilities, equipment,
and
activities such as, but not limited | ||||||
6 | to,
the collection, monitoring, and correlation of
animal and | ||||||
7 | crop data for the purpose of
formulating animal diets and | ||||||
8 | agricultural chemicals. This item (11) is exempt
from the | ||||||
9 | provisions of
Section 3-90.
| ||||||
10 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
11 | to or used by an air common
carrier, certified by the carrier | ||||||
12 | to be used for consumption, shipment, or
storage in the conduct | ||||||
13 | of its business as an air common carrier, for a
flight destined | ||||||
14 | for or returning from a location or locations
outside the | ||||||
15 | United States without regard to previous or subsequent domestic
| ||||||
16 | stopovers.
| ||||||
17 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
18 | or used by an air carrier, certified by the carrier to be used | ||||||
19 | for consumption, shipment, or storage in the conduct of its | ||||||
20 | business as an air common carrier, for a flight that (i) is | ||||||
21 | engaged in foreign trade or is engaged in trade between the | ||||||
22 | United States and any of its possessions and (ii) transports at | ||||||
23 | least one individual or package for hire from the city of | ||||||
24 | origination to the city of final destination on the same | ||||||
25 | aircraft, without regard to a change in the flight number of | ||||||
26 | that aircraft. |
| |||||||
| |||||||
1 | (13) Proceeds of mandatory service charges separately
| ||||||
2 | stated on customers' bills for the purchase and consumption of | ||||||
3 | food and
beverages purchased at retail from a retailer, to the | ||||||
4 | extent that the proceeds
of the service charge are in fact | ||||||
5 | turned over as tips or as a substitute
for tips to the | ||||||
6 | employees who participate directly in preparing, serving,
| ||||||
7 | hosting or cleaning up the food or beverage function with | ||||||
8 | respect to which
the service charge is imposed.
| ||||||
9 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
10 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
11 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
12 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
13 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
14 | individual replacement part for oil
field exploration, | ||||||
15 | drilling, and production equipment, and (vi) machinery and
| ||||||
16 | equipment purchased
for lease; but excluding motor vehicles | ||||||
17 | required to be registered under the
Illinois Vehicle Code.
| ||||||
18 | (15) Photoprocessing machinery and equipment, including | ||||||
19 | repair and
replacement parts, both new and used, including that
| ||||||
20 | manufactured on special order, certified by the purchaser to be | ||||||
21 | used
primarily for photoprocessing, and including
| ||||||
22 | photoprocessing machinery and equipment purchased for lease.
| ||||||
23 | (16) Coal and aggregate exploration, mining, off-highway | ||||||
24 | hauling,
processing, maintenance, and reclamation equipment,
| ||||||
25 | including replacement parts and equipment, and
including | ||||||
26 | equipment purchased for lease, but excluding motor
vehicles |
| |||||||
| |||||||
1 | required to be registered under the Illinois Vehicle Code. The | ||||||
2 | changes made to this Section by Public Act 97-767 apply on and | ||||||
3 | after July 1, 2003, but no claim for credit or refund is | ||||||
4 | allowed on or after August 16, 2013 (the effective date of | ||||||
5 | Public Act 98-456)
for such taxes paid during the period | ||||||
6 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
7 | effective date of Public Act 98-456).
| ||||||
8 | (17) Until July 1, 2003, distillation machinery and | ||||||
9 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
10 | retailer, certified by the user to be used
only for the | ||||||
11 | production of ethyl alcohol that will be used for consumption
| ||||||
12 | as motor fuel or as a component of motor fuel for the personal | ||||||
13 | use of the
user, and not subject to sale or resale.
| ||||||
14 | (18) Manufacturing and assembling machinery and equipment | ||||||
15 | used
primarily in the process of manufacturing or assembling | ||||||
16 | tangible
personal property for wholesale or retail sale or | ||||||
17 | lease, whether that sale
or lease is made directly by the | ||||||
18 | manufacturer or by some other person,
whether the materials | ||||||
19 | used in the process are
owned by the manufacturer or some other | ||||||
20 | person, or whether that sale or
lease is made apart from or as | ||||||
21 | an incident to the seller's engaging in
the service occupation | ||||||
22 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
23 | other similar items of no commercial value on
special order for | ||||||
24 | a particular purchaser. The exemption provided by this | ||||||
25 | paragraph (18) does not include machinery and equipment used in | ||||||
26 | (i) the generation of electricity for wholesale or retail sale; |
| |||||||
| |||||||
1 | (ii) the generation or treatment of natural or artificial gas | ||||||
2 | for wholesale or retail sale that is delivered to customers | ||||||
3 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
4 | water for wholesale or retail sale that is delivered to | ||||||
5 | customers through pipes, pipelines, or mains. The provisions of | ||||||
6 | Public Act 98-583 are declaratory of existing law as to the | ||||||
7 | meaning and scope of this exemption. Beginning on July 1, 2017, | ||||||
8 | the exemption provided by this paragraph (18) includes, but is | ||||||
9 | not limited to, graphic arts machinery and equipment, as | ||||||
10 | defined in paragraph (6) of this Section.
| ||||||
11 | (19) Personal property delivered to a purchaser or | ||||||
12 | purchaser's donee
inside Illinois when the purchase order for | ||||||
13 | that personal property was
received by a florist located | ||||||
14 | outside Illinois who has a florist located
inside Illinois | ||||||
15 | deliver the personal property.
| ||||||
16 | (20) Semen used for artificial insemination of livestock | ||||||
17 | for direct
agricultural production.
| ||||||
18 | (21) Horses, or interests in horses, registered with and | ||||||
19 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
20 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
21 | Horse Association, United States
Trotting Association, or | ||||||
22 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
23 | racing for prizes. This item (21) is exempt from the provisions | ||||||
24 | of Section 3-90, and the exemption provided for under this item | ||||||
25 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
26 | claim for credit or refund is allowed on or after January 1, |
| |||||||
| |||||||
1 | 2008
for such taxes paid during the period beginning May 30, | ||||||
2 | 2000 and ending on January 1, 2008.
| ||||||
3 | (22) Computers and communications equipment utilized for | ||||||
4 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
5 | analysis, or treatment of hospital patients purchased by a | ||||||
6 | lessor who leases
the
equipment, under a lease of one year or | ||||||
7 | longer executed or in effect at the
time the lessor would | ||||||
8 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
9 | hospital
that has been issued an active tax exemption | ||||||
10 | identification number by
the
Department under Section 1g of the | ||||||
11 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
12 | manner that does not qualify for
this exemption or is used in | ||||||
13 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
14 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
15 | case may
be, based on the fair market value of the property at | ||||||
16 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
17 | or attempt to collect an
amount (however
designated) that | ||||||
18 | purports to reimburse that lessor for the tax imposed by this
| ||||||
19 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
20 | has not been
paid by the lessor. If a lessor improperly | ||||||
21 | collects any such amount from the
lessee, the lessee shall have | ||||||
22 | a legal right to claim a refund of that amount
from the lessor. | ||||||
23 | If, however, that amount is not refunded to the lessee for
any | ||||||
24 | reason, the lessor is liable to pay that amount to the | ||||||
25 | Department.
| ||||||
26 | (23) Personal property purchased by a lessor who leases the
|
| |||||||
| |||||||
1 | property, under
a
lease of
one year or longer executed or in | ||||||
2 | effect at the time
the lessor would otherwise be subject to the | ||||||
3 | tax imposed by this Act,
to a governmental body
that has been | ||||||
4 | issued an active sales tax exemption identification number by | ||||||
5 | the
Department under Section 1g of the Retailers' Occupation | ||||||
6 | Tax Act.
If the
property is leased in a manner that does not | ||||||
7 | qualify for
this exemption
or used in any other non-exempt | ||||||
8 | manner, the lessor shall be liable for the
tax imposed under | ||||||
9 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
10 | on the fair market value of the property at the time the
| ||||||
11 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
12 | to collect an
amount (however
designated) that purports to | ||||||
13 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
14 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
15 | paid by the lessor. If a lessor improperly collects any such | ||||||
16 | amount from the
lessee, the lessee shall have a legal right to | ||||||
17 | claim a refund of that amount
from the lessor. If, however, | ||||||
18 | that amount is not refunded to the lessee for
any reason, the | ||||||
19 | lessor is liable to pay that amount to the Department.
| ||||||
20 | (24) Beginning with taxable years ending on or after | ||||||
21 | December
31, 1995
and
ending with taxable years ending on or | ||||||
22 | before December 31, 2004,
personal property that is
donated for | ||||||
23 | disaster relief to be used in a State or federally declared
| ||||||
24 | disaster area in Illinois or bordering Illinois by a | ||||||
25 | manufacturer or retailer
that is registered in this State to a | ||||||
26 | corporation, society, association,
foundation, or institution |
| |||||||
| |||||||
1 | that has been issued a sales tax exemption
identification | ||||||
2 | number by the Department that assists victims of the disaster
| ||||||
3 | who reside within the declared disaster area.
| ||||||
4 | (25) Beginning with taxable years ending on or after | ||||||
5 | December
31, 1995 and
ending with taxable years ending on or | ||||||
6 | before December 31, 2004, personal
property that is used in the | ||||||
7 | performance of infrastructure repairs in this
State, including | ||||||
8 | but not limited to municipal roads and streets, access roads,
| ||||||
9 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
10 | line extensions,
water distribution and purification | ||||||
11 | facilities, storm water drainage and
retention facilities, and | ||||||
12 | sewage treatment facilities, resulting from a State
or | ||||||
13 | federally declared disaster in Illinois or bordering Illinois | ||||||
14 | when such
repairs are initiated on facilities located in the | ||||||
15 | declared disaster area
within 6 months after the disaster.
| ||||||
16 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
17 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
18 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
19 | provisions
of
Section 3-90.
| ||||||
20 | (27) A motor vehicle, as that term is defined in Section | ||||||
21 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
22 | corporation, limited liability company,
society, association, | ||||||
23 | foundation, or institution that is determined by the
Department | ||||||
24 | to be organized and operated exclusively for educational | ||||||
25 | purposes.
For purposes of this exemption, "a corporation, | ||||||
26 | limited liability company,
society, association, foundation, |
| |||||||
| |||||||
1 | or institution organized and operated
exclusively for | ||||||
2 | educational purposes" means all tax-supported public schools,
| ||||||
3 | private schools that offer systematic instruction in useful | ||||||
4 | branches of
learning by methods common to public schools and | ||||||
5 | that compare favorably in
their scope and intensity with the | ||||||
6 | course of study presented in tax-supported
schools, and | ||||||
7 | vocational or technical schools or institutes organized and
| ||||||
8 | operated exclusively to provide a course of study of not less | ||||||
9 | than 6 weeks
duration and designed to prepare individuals to | ||||||
10 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
11 | industrial, business, or commercial
occupation.
| ||||||
12 | (28) Beginning January 1, 2000, personal property, | ||||||
13 | including
food,
purchased through fundraising
events for the | ||||||
14 | benefit of
a public or private elementary or
secondary school, | ||||||
15 | a group of those schools, or one or more school
districts if | ||||||
16 | the events are
sponsored by an entity recognized by the school | ||||||
17 | district that consists
primarily of volunteers and includes
| ||||||
18 | parents and teachers of the school children. This paragraph | ||||||
19 | does not apply
to fundraising
events (i) for the benefit of | ||||||
20 | private home instruction or (ii)
for which the fundraising | ||||||
21 | entity purchases the personal property sold at
the events from | ||||||
22 | another individual or entity that sold the property for the
| ||||||
23 | purpose of resale by the fundraising entity and that
profits | ||||||
24 | from the sale to the
fundraising entity. This paragraph is | ||||||
25 | exempt
from the provisions
of Section 3-90.
| ||||||
26 | (29) Beginning January 1, 2000 and through December 31, |
| |||||||
| |||||||
1 | 2001, new or
used automatic vending
machines that prepare and | ||||||
2 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
3 | items, and replacement parts for these machines.
Beginning | ||||||
4 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
5 | for machines used in
commercial, coin-operated amusement and | ||||||
6 | vending business if a use or occupation
tax is paid on the | ||||||
7 | gross receipts derived from the use of the commercial,
| ||||||
8 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
9 | is exempt from the provisions of Section 3-90.
| ||||||
10 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
11 | food for human consumption that is to be consumed off the | ||||||
12 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
13 | drinks, and food that
has been prepared for immediate | ||||||
14 | consumption) and prescription and
nonprescription medicines, | ||||||
15 | drugs, medical appliances, and insulin, urine
testing | ||||||
16 | materials, syringes, and needles used by diabetics, for human | ||||||
17 | use, when
purchased for use by a person receiving medical | ||||||
18 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
19 | resides in a licensed long-term care facility,
as defined in | ||||||
20 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
21 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
22 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
23 | (31) Beginning on August 2, 2001 ( the effective date of | ||||||
24 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
25 | Assembly ,
computers and communications equipment
utilized for | ||||||
26 | any hospital purpose and equipment used in the diagnosis,
|
| |||||||
| |||||||
1 | analysis, or treatment of hospital patients purchased by a | ||||||
2 | lessor who leases
the equipment, under a lease of one year or | ||||||
3 | longer executed or in effect at the
time the lessor would | ||||||
4 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
5 | hospital that has been issued an active tax exemption | ||||||
6 | identification number by
the Department under Section 1g of the | ||||||
7 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
8 | manner that does not qualify for this exemption or is
used in | ||||||
9 | any other nonexempt manner, the lessor shall be liable for the | ||||||
10 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
11 | case may be, based on
the fair market value of the property at | ||||||
12 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
13 | or attempt to collect an amount (however
designated) that | ||||||
14 | purports to reimburse that lessor for the tax imposed by this
| ||||||
15 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
16 | has not been
paid by the lessor. If a lessor improperly | ||||||
17 | collects any such amount from the
lessee, the lessee shall have | ||||||
18 | a legal right to claim a refund of that amount
from the lessor. | ||||||
19 | If, however, that amount is not refunded to the lessee for
any | ||||||
20 | reason, the lessor is liable to pay that amount to the | ||||||
21 | Department.
This paragraph is exempt from the provisions of | ||||||
22 | Section 3-90.
| ||||||
23 | (32) Beginning on August 2, 2001 ( the effective date of | ||||||
24 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
25 | Assembly ,
personal property purchased by a lessor who leases | ||||||
26 | the property,
under a lease of one year or longer executed or |
| |||||||
| |||||||
1 | in effect at the time the
lessor would otherwise be subject to | ||||||
2 | the tax imposed by this Act, to a
governmental body that has | ||||||
3 | been issued an active sales tax exemption
identification number | ||||||
4 | by the Department under Section 1g of the Retailers'
Occupation | ||||||
5 | Tax Act. If the property is leased in a manner that does not
| ||||||
6 | qualify for this exemption or used in any other nonexempt | ||||||
7 | manner, the lessor
shall be liable for the tax imposed under | ||||||
8 | this Act or the Service Use Tax Act,
as the case may be, based | ||||||
9 | on the fair market value of the property at the time
the | ||||||
10 | nonqualifying use occurs. No lessor shall collect or attempt to | ||||||
11 | collect
an amount (however designated) that purports to | ||||||
12 | reimburse that lessor for the
tax imposed by this Act or the | ||||||
13 | Service Use Tax Act, as the case may be, if the
tax has not been | ||||||
14 | paid by the lessor. If a lessor improperly collects any such
| ||||||
15 | amount from the lessee, the lessee shall have a legal right to | ||||||
16 | claim a refund
of that amount from the lessor. If, however, | ||||||
17 | that amount is not refunded to
the lessee for any reason, the | ||||||
18 | lessor is liable to pay that amount to the
Department. This | ||||||
19 | paragraph is exempt from the provisions of Section 3-90.
| ||||||
20 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
21 | the use in this State of motor vehicles of
the second division | ||||||
22 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
23 | are subject to the commercial distribution fee imposed under | ||||||
24 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
25 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
26 | motor vehicles of the second division: (i) with a gross vehicle |
| |||||||
| |||||||
1 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
2 | to the commercial distribution fee imposed under Section | ||||||
3 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
4 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
5 | this exemption applies to repair and
replacement parts added | ||||||
6 | after the initial purchase of such a motor vehicle if
that | ||||||
7 | motor
vehicle is used in a manner that would qualify for the | ||||||
8 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
9 | purposes of this paragraph, the term "used for commercial | ||||||
10 | purposes" means the transportation of persons or property in | ||||||
11 | furtherance of any commercial or industrial enterprise, | ||||||
12 | whether for-hire or not.
| ||||||
13 | (34) Beginning January 1, 2008, tangible personal property | ||||||
14 | used in the construction or maintenance of a community water | ||||||
15 | supply, as defined under Section 3.145 of the Environmental | ||||||
16 | Protection Act, that is operated by a not-for-profit | ||||||
17 | corporation that holds a valid water supply permit issued under | ||||||
18 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
19 | exempt from the provisions of Section 3-90. | ||||||
20 | (35) Beginning January 1, 2010, materials, parts, | ||||||
21 | equipment, components, and furnishings incorporated into or | ||||||
22 | upon an aircraft as part of the modification, refurbishment, | ||||||
23 | completion, replacement, repair, or maintenance of the | ||||||
24 | aircraft. This exemption includes consumable supplies used in | ||||||
25 | the modification, refurbishment, completion, replacement, | ||||||
26 | repair, and maintenance of aircraft, but excludes any |
| |||||||
| |||||||
1 | materials, parts, equipment, components, and consumable | ||||||
2 | supplies used in the modification, replacement, repair, and | ||||||
3 | maintenance of aircraft engines or power plants, whether such | ||||||
4 | engines or power plants are installed or uninstalled upon any | ||||||
5 | such aircraft. "Consumable supplies" include, but are not | ||||||
6 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
7 | lubricants, cleaning solution, latex gloves, and protective | ||||||
8 | films. This exemption applies only to the use of qualifying | ||||||
9 | tangible personal property by persons who modify, refurbish, | ||||||
10 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
11 | hold an Air Agency Certificate and are empowered to operate an | ||||||
12 | approved repair station by the Federal Aviation | ||||||
13 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
14 | operations in accordance with Part 145 of the Federal Aviation | ||||||
15 | Regulations. The exemption does not include aircraft operated | ||||||
16 | by a commercial air carrier providing scheduled passenger air | ||||||
17 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
18 | of the Federal Aviation Regulations. The changes made to this | ||||||
19 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
20 | law. | ||||||
21 | (36) Tangible personal property purchased by a | ||||||
22 | public-facilities corporation, as described in Section | ||||||
23 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
24 | constructing or furnishing a municipal convention hall, but | ||||||
25 | only if the legal title to the municipal convention hall is | ||||||
26 | transferred to the municipality without any further |
| |||||||
| |||||||
1 | consideration by or on behalf of the municipality at the time | ||||||
2 | of the completion of the municipal convention hall or upon the | ||||||
3 | retirement or redemption of any bonds or other debt instruments | ||||||
4 | issued by the public-facilities corporation in connection with | ||||||
5 | the development of the municipal convention hall. This | ||||||
6 | exemption includes existing public-facilities corporations as | ||||||
7 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
8 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
9 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
10 | and menstrual cups. | ||||||
11 | (38) Merchandise that is subject to the Rental Purchase | ||||||
12 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
13 | that the item is purchased to be rented subject to a rental | ||||||
14 | purchase agreement, as defined in the Rental Purchase Agreement | ||||||
15 | Act, and provide proof of registration under the Rental | ||||||
16 | Purchase Agreement Occupation and Use Tax Act. This paragraph | ||||||
17 | is exempt from the provisions of Section 3-90. | ||||||
18 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
19 | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)
| ||||||
20 | (35 ILCS 105/3-85)
| ||||||
21 | Sec. 3-85. Manufacturer's Purchase Credit. For purchases | ||||||
22 | of machinery and
equipment made on and after January 1, 1995 | ||||||
23 | through June 30, 2003, and on and after September 1, 2004 | ||||||
24 | through August 30, 2014,
and on and after January 1, 2019, a
| ||||||
25 | purchaser of manufacturing
machinery and equipment that |
| |||||||
| |||||||
1 | qualifies for the exemption provided by
paragraph (18) of | ||||||
2 | Section 3-5 of this Act earns a credit in an amount equal to
a | ||||||
3 | fixed percentage of the tax which would have been incurred | ||||||
4 | under this Act on
those purchases.
For purchases of graphic | ||||||
5 | arts machinery and equipment made on or after July
1, 1996 and | ||||||
6 | through June 30, 2003, and on and after September 1, 2004 | ||||||
7 | through August 30, 2014, and on and after January 1, 2019, a | ||||||
8 | purchaser of graphic arts machinery
and equipment that | ||||||
9 | qualifies for
the exemption provided by paragraph (6) of | ||||||
10 | Section 3-5 of this Act earns a
credit in an amount equal to a | ||||||
11 | fixed percentage of the tax that would have been
incurred under | ||||||
12 | this Act on those purchases.
The credit earned for purchases of | ||||||
13 | manufacturing machinery and equipment or
graphic arts | ||||||
14 | machinery and equipment shall be referred to as the
| ||||||
15 | Manufacturer's Purchase
Credit.
A graphic arts producer is a | ||||||
16 | person engaged in graphic arts production as
defined in Section | ||||||
17 | 2-30 of the Retailers' Occupation Tax Act. Beginning July
1, | ||||||
18 | 1996, all references in this Section to manufacturers or | ||||||
19 | manufacturing shall
also be deemed to refer to graphic arts | ||||||
20 | producers or graphic arts production.
| ||||||
21 | The amount of credit shall be a percentage of the tax that | ||||||
22 | would have
been incurred on the purchase of manufacturing | ||||||
23 | machinery and equipment
or graphic arts machinery and equipment
| ||||||
24 | if the exemptions provided by paragraph (6) or paragraph
(18) | ||||||
25 | of Section 3-5
of this Act had not been applicable. The | ||||||
26 | percentage shall be as follows:
|
| |||||||
| |||||||
1 | (1) 15% for purchases made on or before June 30, 1995.
| ||||||
2 | (2) 25% for purchases made after June 30, 1995, and on | ||||||
3 | or before June 30,
1996.
| ||||||
4 | (3) 40% for purchases made after June 30, 1996, and on | ||||||
5 | or before June 30,
1997.
| ||||||
6 | (4) 50% for purchases made on or after July 1, 1997.
| ||||||
7 | (a) Manufacturer's Purchase Credit earned prior to July 1, | ||||||
8 | 2003. This subsection (a) applies to Manufacturer's Purchase | ||||||
9 | Credit earned prior to July 1, 2003. A purchaser of production | ||||||
10 | related tangible personal property desiring to use
the | ||||||
11 | Manufacturer's Purchase Credit shall certify to the seller | ||||||
12 | prior to
October 1, 2003 that the
purchaser is satisfying all | ||||||
13 | or part of the liability under the Use Tax Act or
the Service | ||||||
14 | Use Tax Act that is due on the
purchase of the production | ||||||
15 | related tangible personal property by use of
Manufacturer's | ||||||
16 | Purchase Credit. The Manufacturer's Purchase Credit
| ||||||
17 | certification must be dated and shall include the name and | ||||||
18 | address of the
purchaser, the purchaser's registration number, | ||||||
19 | if registered, the credit being
applied, and a statement that | ||||||
20 | the State Use Tax or Service Use Tax liability is
being | ||||||
21 | satisfied with the manufacturer's or graphic arts producer's
| ||||||
22 | accumulated purchase credit.
Certification may be incorporated | ||||||
23 | into the manufacturer's or graphic arts
producer's purchase | ||||||
24 | order.
Manufacturer's Purchase Credit certification provided | ||||||
25 | by the manufacturer
or graphic
arts producer prior to October | ||||||
26 | 1, 2003 may be used to
satisfy the retailer's or serviceman's |
| |||||||
| |||||||
1 | liability under the Retailers'
Occupation Tax Act or Service | ||||||
2 | Occupation Tax Act for the credit claimed, not to
exceed 6.25% | ||||||
3 | of the receipts subject to tax from a qualifying purchase, but
| ||||||
4 | only if the retailer or serviceman reports the Manufacturer's | ||||||
5 | Purchase Credit
claimed as required by the Department. A | ||||||
6 | Manufacturer's Purchase Credit
reported on any original or | ||||||
7 | amended return
filed under
this Act after October 20, 2003 | ||||||
8 | shall be disallowed. The Manufacturer's
Purchase Credit
earned | ||||||
9 | by purchase of exempt manufacturing machinery and equipment
or | ||||||
10 | graphic arts machinery and equipment is a non-transferable | ||||||
11 | credit. A
manufacturer or graphic arts producer that enters | ||||||
12 | into a
contract involving the installation of tangible personal | ||||||
13 | property
into real estate within a manufacturing or graphic | ||||||
14 | arts production facility
may, prior to October 1, 2003, | ||||||
15 | authorize a construction contractor
to utilize credit | ||||||
16 | accumulated by the manufacturer or graphic arts producer
to
| ||||||
17 | purchase the tangible personal property. A manufacturer or | ||||||
18 | graphic arts
producer
intending to use accumulated credit to | ||||||
19 | purchase such tangible personal
property shall execute a | ||||||
20 | written contract authorizing the contractor to utilize
a | ||||||
21 | specified dollar amount of credit. The contractor shall | ||||||
22 | furnish, prior to
October 1, 2003, the supplier
with the | ||||||
23 | manufacturer's or graphic arts producer's name, registration | ||||||
24 | or
resale
number, and a statement that a specific amount of the | ||||||
25 | Use Tax or Service Use
Tax liability, not to exceed 6.25% of | ||||||
26 | the selling price, is being satisfied
with the credit. The |
| |||||||
| |||||||
1 | manufacturer or graphic arts producer shall remain
liable to | ||||||
2 | timely report all
information required by the annual Report of | ||||||
3 | Manufacturer's Purchase Credit
Used for all credit utilized by | ||||||
4 | a construction contractor.
| ||||||
5 | No Manufacturer's Purchase Credit earned prior to July 1, | ||||||
6 | 2003 may be used after October 1, 2003. The Manufacturer's | ||||||
7 | Purchase Credit may be used to satisfy liability under the
Use | ||||||
8 | Tax Act or the Service Use Tax Act due on the purchase of | ||||||
9 | production
related tangible personal property (including | ||||||
10 | purchases by a manufacturer, by
a graphic arts producer, or by
| ||||||
11 | a lessor who rents or leases the use of the property to a | ||||||
12 | manufacturer or
graphic arts producer)
that does not otherwise | ||||||
13 | qualify
for the manufacturing machinery and equipment
| ||||||
14 | exemption or the graphic arts machinery and equipment | ||||||
15 | exemption.
"Production related
tangible personal property" | ||||||
16 | means (i) all tangible personal property used or
consumed by | ||||||
17 | the purchaser in a manufacturing facility in which a | ||||||
18 | manufacturing
process described in Section 2-45 of the | ||||||
19 | Retailers' Occupation Tax Act takes
place, including tangible | ||||||
20 | personal property purchased for incorporation into
real estate | ||||||
21 | within a manufacturing facility
and including, but not limited | ||||||
22 | to, tangible
personal property used or consumed in activities | ||||||
23 | such as preproduction material
handling, receiving, quality | ||||||
24 | control, inventory control, storage, staging, and
packaging | ||||||
25 | for shipping and transportation purposes; (ii) all tangible
| ||||||
26 | personal property used or consumed by the purchaser in a |
| |||||||
| |||||||
1 | graphic arts facility
in which graphic arts production as | ||||||
2 | described in Section 2-30 of the Retailers'
Occupation Tax Act | ||||||
3 | takes place, including tangible personal property purchased
| ||||||
4 | for incorporation into real estate within a graphic arts | ||||||
5 | facility and
including, but not limited to, all tangible | ||||||
6 | personal property used or consumed
in activities such as | ||||||
7 | graphic arts preliminary or pre-press production,
| ||||||
8 | pre-production material handling, receiving, quality control, | ||||||
9 | inventory
control, storage, staging, sorting, labeling, | ||||||
10 | mailing, tying, wrapping, and
packaging; and (iii) all tangible
| ||||||
11 | personal property used or consumed by the purchaser
for | ||||||
12 | research and development.
"Production related tangible | ||||||
13 | personal property" does not include (i) tangible
personal | ||||||
14 | property used, within or without a manufacturing facility, in | ||||||
15 | sales,
purchasing, accounting, fiscal management, marketing, | ||||||
16 | personnel recruitment or
selection, or landscaping or (ii) | ||||||
17 | tangible personal property required to be
titled or registered | ||||||
18 | with a department, agency, or unit of federal, state, or
local | ||||||
19 | government. The Manufacturer's Purchase Credit may be used, | ||||||
20 | prior to
October 1, 2003, to satisfy
the tax arising either | ||||||
21 | from the purchase of
machinery and equipment on or after | ||||||
22 | January 1,
1995 for which the exemption
provided by paragraph | ||||||
23 | (18) of Section 3-5 of this Act was
erroneously claimed, or the | ||||||
24 | purchase of machinery and equipment on or after
July 1, 1996 | ||||||
25 | for which the exemption provided by paragraph (6) of Section | ||||||
26 | 3-5
of this Act was erroneously claimed, but not in
|
| |||||||
| |||||||
1 | satisfaction of penalty, if any, and interest for failure to | ||||||
2 | pay the tax
when due. A
purchaser of production related | ||||||
3 | tangible personal property who is required to
pay Illinois Use | ||||||
4 | Tax or Service Use Tax on the purchase directly to the
| ||||||
5 | Department may, prior to October 1, 2003, utilize the | ||||||
6 | Manufacturer's
Purchase Credit in satisfaction of
the tax | ||||||
7 | arising from that purchase, but not in
satisfaction of penalty | ||||||
8 | and interest.
A purchaser who uses the Manufacturer's Purchase | ||||||
9 | Credit to purchase property
which is later determined not to be | ||||||
10 | production related tangible personal
property may be liable for | ||||||
11 | tax, penalty, and interest on the purchase of that
property as | ||||||
12 | of the date of purchase but shall be entitled to use the | ||||||
13 | disallowed
Manufacturer's Purchase
Credit, so long as it has | ||||||
14 | not expired and is used prior to October 1, 2003,
on qualifying | ||||||
15 | purchases of production
related tangible personal property not | ||||||
16 | previously subject to credit usage.
The Manufacturer's | ||||||
17 | Purchase Credit earned by a manufacturer or graphic arts
| ||||||
18 | producer
expires the last day of the second calendar year | ||||||
19 | following the
calendar year in which the credit arose. No | ||||||
20 | Manufacturer's Purchase Credit
may be used after September 30, | ||||||
21 | 2003
regardless of
when that credit was earned.
| ||||||
22 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
23 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
24 | Credit Earned for each calendar year
no later than the last day | ||||||
25 | of the sixth month following the calendar year in
which a | ||||||
26 | Manufacturer's Purchase Credit is earned. A Report of |
| |||||||
| |||||||
1 | Manufacturer's
Purchase Credit Earned shall be filed on forms | ||||||
2 | as prescribed or approved by the
Department and shall state, | ||||||
3 | for each month of the calendar year: (i) the total
purchase | ||||||
4 | price of all purchases of exempt manufacturing or graphic arts
| ||||||
5 | machinery on which the
credit was earned; (ii) the total State | ||||||
6 | Use Tax or Service Use Tax which would
have been due on those | ||||||
7 | items; (iii) the percentage used to calculate the amount
of | ||||||
8 | credit earned; (iv) the amount of credit earned; and (v) such | ||||||
9 | other
information as the Department may reasonably require. A | ||||||
10 | purchaser earning
Manufacturer's Purchase Credit shall | ||||||
11 | maintain records which identify, as to
each purchase of | ||||||
12 | manufacturing or graphic arts machinery and equipment
on which | ||||||
13 | the purchaser
earned Manufacturer's Purchase Credit, the | ||||||
14 | vendor (including, if applicable,
either the vendor's | ||||||
15 | registration number or Federal Employer Identification
| ||||||
16 | Number), the purchase price, and the amount of Manufacturer's | ||||||
17 | Purchase Credit
earned on each purchase.
| ||||||
18 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
19 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
20 | Credit Used for each calendar year no
later than the last day | ||||||
21 | of the sixth month following the calendar year in which
a | ||||||
22 | Manufacturer's Purchase Credit is used. A Report of | ||||||
23 | Manufacturer's Purchase
Credit Used
shall be filed on forms as | ||||||
24 | prescribed or approved by the Department and
shall state, for | ||||||
25 | each month of the calendar year: (i) the total purchase price
| ||||||
26 | of production related tangible personal property purchased |
| |||||||
| |||||||
1 | from Illinois
suppliers; (ii) the total purchase price of | ||||||
2 | production related tangible
personal property purchased from | ||||||
3 | out-of-state suppliers; (iii) the total amount
of credit used | ||||||
4 | during such month; and (iv) such
other information as the | ||||||
5 | Department may reasonably require. A purchaser using
| ||||||
6 | Manufacturer's Purchase Credit shall maintain records that | ||||||
7 | identify, as to
each purchase of production related tangible | ||||||
8 | personal property on which the
purchaser used Manufacturer's | ||||||
9 | Purchase Credit, the vendor (including, if
applicable, either | ||||||
10 | the vendor's registration number or Federal Employer
| ||||||
11 | Identification Number), the purchase price, and the amount of | ||||||
12 | Manufacturer's
Purchase Credit used on each purchase.
| ||||||
13 | No annual report shall be filed before May 1, 1996 or after | ||||||
14 | June 30,
2004. A purchaser that fails to
file an annual Report | ||||||
15 | of Manufacturer's Purchase Credit Earned or an annual
Report of | ||||||
16 | Manufacturer's
Purchase Credit Used by the last day of the | ||||||
17 | sixth month following the
end of the calendar year shall | ||||||
18 | forfeit all Manufacturer's Purchase Credit for
that calendar | ||||||
19 | year unless it establishes that its failure to file was due to
| ||||||
20 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
21 | be amended
to report and claim credit on qualifying purchases | ||||||
22 | not previously reported at
any time before the credit would | ||||||
23 | have expired, unless both the Department and
the purchaser have | ||||||
24 | agreed to an extension of
the statute of limitations for the | ||||||
25 | issuance of a notice of tax liability as
provided in Section 4 | ||||||
26 | of the Retailers' Occupation Tax Act. If the time for
|
| |||||||
| |||||||
1 | assessment or refund has been extended, then amended reports | ||||||
2 | for a calendar
year may be filed at any time prior to the date | ||||||
3 | to which the statute of
limitations for the calendar year or | ||||||
4 | portion thereof has been extended.
No Manufacturer's Purchase
| ||||||
5 | Credit report filed with the Department for periods prior to | ||||||
6 | January 1, 1995
shall be approved.
Manufacturer's Purchase | ||||||
7 | Credit claimed on an amended report may be used,
until October | ||||||
8 | 1, 2003, to
satisfy tax liability under the Use Tax Act or the | ||||||
9 | Service Use Tax Act (i) on
qualifying purchases of production | ||||||
10 | related tangible personal property made
after the date the | ||||||
11 | amended report is filed or (ii) assessed by the Department
on | ||||||
12 | qualifying purchases of production related tangible personal | ||||||
13 | property made
in the case of manufacturers
on or after January | ||||||
14 | 1, 1995, or in the case of graphic arts producers on or
after | ||||||
15 | July 1, 1996.
| ||||||
16 | If the purchaser is not the manufacturer or a graphic arts | ||||||
17 | producer, but
rents or
leases the use of the property to a | ||||||
18 | manufacturer or graphic arts producer,
the purchaser may earn,
| ||||||
19 | report, and use Manufacturer's Purchase Credit in the same | ||||||
20 | manner as a
manufacturer or graphic arts producer.
| ||||||
21 | A purchaser shall not be entitled to any Manufacturer's | ||||||
22 | Purchase
Credit for a purchase that is required to be reported | ||||||
23 | and is not timely
reported as provided in this Section. A | ||||||
24 | purchaser remains liable for (i) any
tax that was satisfied by | ||||||
25 | use of a Manufacturer's Purchase Credit, as of the
date of | ||||||
26 | purchase, if that use is not timely reported as required in |
| |||||||
| |||||||
1 | this
Section and (ii) for any applicable penalties and interest | ||||||
2 | for failing to pay
the tax when due. No Manufacturer's Purchase | ||||||
3 | Credit may be used after
September 30, 2003 to
satisfy any
tax | ||||||
4 | liability imposed under this Act, including any audit | ||||||
5 | liability.
| ||||||
6 | (b) Manufacturer's Purchase Credit earned on and after | ||||||
7 | September 1, 2004. This subsection (b) applies to | ||||||
8 | Manufacturer's Purchase Credit earned on and after September 1, | ||||||
9 | 2004. Manufacturer's Purchase Credit earned on or after | ||||||
10 | September 1, 2004 may only be used to satisfy the Use Tax or | ||||||
11 | Service Use Tax liability incurred on production related | ||||||
12 | tangible personal property purchased on or after September 1, | ||||||
13 | 2004. A purchaser of production related tangible personal | ||||||
14 | property desiring to use the Manufacturer's Purchase Credit | ||||||
15 | shall certify to the seller that the purchaser is satisfying | ||||||
16 | all or part of the liability under the Use Tax Act or the | ||||||
17 | Service Use Tax Act that is due on the purchase of the | ||||||
18 | production related tangible personal property by use of | ||||||
19 | Manufacturer's Purchase Credit. The Manufacturer's Purchase | ||||||
20 | Credit certification must be dated and shall include the name | ||||||
21 | and address of the purchaser, the purchaser's registration | ||||||
22 | number, if registered, the credit being applied, and a | ||||||
23 | statement that the State Use Tax or Service Use Tax liability | ||||||
24 | is being satisfied with the manufacturer's or graphic arts | ||||||
25 | producer's accumulated purchase credit. Certification may be | ||||||
26 | incorporated into the manufacturer's or graphic arts |
| |||||||
| |||||||
1 | producer's purchase order. Manufacturer's Purchase Credit | ||||||
2 | certification provided by the manufacturer or graphic arts | ||||||
3 | producer may be used to satisfy the retailer's or serviceman's | ||||||
4 | liability under the Retailers' Occupation Tax Act or Service | ||||||
5 | Occupation Tax Act for the credit claimed, not to exceed 6.25% | ||||||
6 | of the receipts subject to tax from a qualifying purchase, but | ||||||
7 | only if the retailer or serviceman reports the Manufacturer's | ||||||
8 | Purchase Credit claimed as required by the Department. The | ||||||
9 | Manufacturer's Purchase Credit earned by purchase of exempt | ||||||
10 | manufacturing machinery and equipment or graphic arts | ||||||
11 | machinery and equipment is a non-transferable credit. A | ||||||
12 | manufacturer or graphic arts producer that enters into a | ||||||
13 | contract involving the installation of tangible personal | ||||||
14 | property into real estate within a manufacturing or graphic | ||||||
15 | arts production facility may, on or after September 1, 2004, | ||||||
16 | authorize a construction contractor to utilize credit | ||||||
17 | accumulated by the manufacturer or graphic arts producer to | ||||||
18 | purchase the tangible personal property. A manufacturer or | ||||||
19 | graphic arts producer intending to use accumulated credit to | ||||||
20 | purchase such tangible personal property shall execute a | ||||||
21 | written contract authorizing the contractor to utilize a | ||||||
22 | specified dollar amount of credit. The contractor shall furnish | ||||||
23 | the supplier with the manufacturer's or graphic arts producer's | ||||||
24 | name, registration or resale number, and a statement that a | ||||||
25 | specific amount of the Use Tax or Service Use Tax liability, | ||||||
26 | not to exceed 6.25% of the selling price, is being satisfied |
| |||||||
| |||||||
1 | with the credit. The manufacturer or graphic arts producer | ||||||
2 | shall remain liable to timely report all information required | ||||||
3 | by the annual Report of Manufacturer's Purchase Credit Used for | ||||||
4 | all credit utilized by a construction contractor. | ||||||
5 | The Manufacturer's Purchase Credit may be used to satisfy | ||||||
6 | liability under the Use Tax Act or the Service Use Tax Act due | ||||||
7 | on the purchase, made on or after September 1, 2004, of | ||||||
8 | production related tangible personal property (including | ||||||
9 | purchases by a manufacturer, by a graphic arts producer, or by | ||||||
10 | a lessor who rents or leases the use of the property to a | ||||||
11 | manufacturer or graphic arts producer) that does not otherwise | ||||||
12 | qualify for the manufacturing machinery and equipment | ||||||
13 | exemption or the graphic arts machinery and equipment | ||||||
14 | exemption. "Production related tangible personal property" | ||||||
15 | means (i) all tangible personal property used or consumed by | ||||||
16 | the purchaser in a manufacturing facility in which a | ||||||
17 | manufacturing process described in Section 2-45 of the | ||||||
18 | Retailers' Occupation Tax Act takes place, including tangible | ||||||
19 | personal property purchased for incorporation into real estate | ||||||
20 | within a manufacturing facility and including, but not limited | ||||||
21 | to, tangible personal property used or consumed in activities | ||||||
22 | such as preproduction material handling, receiving, quality | ||||||
23 | control, inventory control, storage, staging, and packaging | ||||||
24 | for shipping and transportation purposes; (ii) all tangible | ||||||
25 | personal property used or consumed by the purchaser in a | ||||||
26 | graphic arts facility in which graphic arts production as |
| |||||||
| |||||||
1 | described in Section 2-30 of the Retailers' Occupation Tax Act | ||||||
2 | takes place, including tangible personal property purchased | ||||||
3 | for incorporation into real estate within a graphic arts | ||||||
4 | facility and including, but not limited to, all tangible | ||||||
5 | personal property used or consumed in activities such as | ||||||
6 | graphic arts preliminary or pre-press production, | ||||||
7 | pre-production material handling, receiving, quality control, | ||||||
8 | inventory control, storage, staging, sorting, labeling, | ||||||
9 | mailing, tying, wrapping, and packaging; and (iii) all tangible | ||||||
10 | personal property used or consumed by the purchaser for | ||||||
11 | research and development. "Production related tangible | ||||||
12 | personal property" does not include (i) tangible personal | ||||||
13 | property used, within or without a manufacturing facility, in | ||||||
14 | sales, purchasing, accounting, fiscal management, marketing, | ||||||
15 | personnel recruitment or selection, or landscaping or (ii) | ||||||
16 | tangible personal property required to be titled or registered | ||||||
17 | with a department, agency, or unit of federal, state, or local | ||||||
18 | government. The Manufacturer's Purchase Credit may be used to | ||||||
19 | satisfy the tax arising either from the purchase of machinery | ||||||
20 | and equipment on or after September 1, 2004 for which the | ||||||
21 | exemption provided by paragraph (18) of Section 3-5 of this Act | ||||||
22 | was erroneously claimed, or the purchase of machinery and | ||||||
23 | equipment on or after September 1, 2004 for which the exemption | ||||||
24 | provided by paragraph (6) of Section 3-5 of this Act was | ||||||
25 | erroneously claimed, but not in satisfaction of penalty, if | ||||||
26 | any, and interest for failure to pay the tax when due. A |
| |||||||
| |||||||
1 | purchaser of production related tangible personal property | ||||||
2 | that is purchased on or after September 1, 2004 who is required | ||||||
3 | to pay Illinois Use Tax or Service Use Tax on the purchase | ||||||
4 | directly to the Department may utilize the Manufacturer's | ||||||
5 | Purchase Credit in satisfaction of the tax arising from that | ||||||
6 | purchase, but not in satisfaction of penalty and interest. A | ||||||
7 | purchaser who uses the Manufacturer's Purchase Credit to | ||||||
8 | purchase property on and after September 1, 2004 which is later | ||||||
9 | determined not to be production related tangible personal | ||||||
10 | property may be liable for tax, penalty, and interest on the | ||||||
11 | purchase of that property as of the date of purchase but shall | ||||||
12 | be entitled to use the disallowed Manufacturer's Purchase | ||||||
13 | Credit, so long as it has not expired and is used on qualifying | ||||||
14 | purchases of production related tangible personal property not | ||||||
15 | previously subject to credit usage. The Manufacturer's | ||||||
16 | Purchase Credit earned by a manufacturer or graphic arts | ||||||
17 | producer expires the last day of the second calendar year | ||||||
18 | following the calendar year in which the credit arose.
A | ||||||
19 | purchaser earning Manufacturer's Purchase Credit shall sign | ||||||
20 | and file an annual Report of Manufacturer's Purchase Credit | ||||||
21 | Earned for each calendar year no later than the last day of the | ||||||
22 | sixth month following the calendar year in which a | ||||||
23 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
24 | Manufacturer's Purchase Credit Earned shall be filed on forms | ||||||
25 | as prescribed or approved by the Department and shall state, | ||||||
26 | for each month of the calendar year: (i) the total purchase |
| |||||||
| |||||||
1 | price of all purchases of exempt manufacturing or graphic arts | ||||||
2 | machinery on which the credit was earned; (ii) the total State | ||||||
3 | Use Tax or Service Use Tax which would have been due on those | ||||||
4 | items; (iii) the percentage used to calculate the amount of | ||||||
5 | credit earned; (iv) the amount of credit earned; and (v) such | ||||||
6 | other information as the Department may reasonably require. A | ||||||
7 | purchaser earning Manufacturer's Purchase Credit shall | ||||||
8 | maintain records which identify, as to each purchase of | ||||||
9 | manufacturing or graphic arts machinery and equipment on which | ||||||
10 | the purchaser earned Manufacturer's Purchase Credit, the | ||||||
11 | vendor (including, if applicable, either the vendor's | ||||||
12 | registration number or Federal Employer Identification | ||||||
13 | Number), the purchase price, and the amount of Manufacturer's | ||||||
14 | Purchase Credit earned on each purchase.
A purchaser using | ||||||
15 | Manufacturer's Purchase Credit shall sign and file an annual | ||||||
16 | Report of Manufacturer's Purchase Credit Used for each calendar | ||||||
17 | year no later than the last day of the sixth month following | ||||||
18 | the calendar year in which a Manufacturer's Purchase Credit is | ||||||
19 | used. A Report of Manufacturer's Purchase Credit Used shall be | ||||||
20 | filed on forms as prescribed or approved by the Department and | ||||||
21 | shall state, for each month of the calendar year: (i) the total | ||||||
22 | purchase price of production related tangible personal | ||||||
23 | property purchased from Illinois suppliers; (ii) the total | ||||||
24 | purchase price of production related tangible personal | ||||||
25 | property purchased from out-of-state suppliers; (iii) the | ||||||
26 | total amount of credit used during such month; and (iv) such |
| |||||||
| |||||||
1 | other information as the Department may reasonably require. A | ||||||
2 | purchaser using Manufacturer's Purchase Credit shall maintain | ||||||
3 | records that identify, as to each purchase of production | ||||||
4 | related tangible personal property on which the purchaser used | ||||||
5 | Manufacturer's Purchase Credit, the vendor (including, if | ||||||
6 | applicable, either the vendor's registration number or Federal | ||||||
7 | Employer Identification Number), the purchase price, and the | ||||||
8 | amount of Manufacturer's Purchase Credit used on each purchase. | ||||||
9 | A purchaser that fails to file an annual Report of | ||||||
10 | Manufacturer's Purchase Credit Earned or an annual Report of | ||||||
11 | Manufacturer's Purchase Credit Used by the last day of the | ||||||
12 | sixth month following the end of the calendar year shall | ||||||
13 | forfeit all Manufacturer's Purchase Credit for that calendar | ||||||
14 | year unless it establishes that its failure to file was due to | ||||||
15 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
16 | be amended to report and claim credit on qualifying purchases | ||||||
17 | not previously reported at any time before the credit would | ||||||
18 | have expired, unless both the Department and the purchaser have | ||||||
19 | agreed to an extension of the statute of limitations for the | ||||||
20 | issuance of a notice of tax liability as provided in Section 4 | ||||||
21 | of the Retailers' Occupation Tax Act. If the time for | ||||||
22 | assessment or refund has been extended, then amended reports | ||||||
23 | for a calendar year may be filed at any time prior to the date | ||||||
24 | to which the statute of limitations for the calendar year or | ||||||
25 | portion thereof has been extended. Manufacturer's Purchase | ||||||
26 | Credit claimed on an amended report may be used to satisfy tax |
| |||||||
| |||||||
1 | liability under the Use Tax Act or the Service Use Tax Act (i) | ||||||
2 | on qualifying purchases of production related tangible | ||||||
3 | personal property made after the date the amended report is | ||||||
4 | filed or (ii) assessed by the Department on qualifying | ||||||
5 | production related tangible personal property purchased on or | ||||||
6 | after September 1, 2004. If the purchaser is not the | ||||||
7 | manufacturer or a graphic arts producer, but rents or leases | ||||||
8 | the use of the property to a manufacturer or graphic arts | ||||||
9 | producer, the purchaser may earn, report, and use | ||||||
10 | Manufacturer's Purchase Credit in the same manner as a | ||||||
11 | manufacturer or graphic arts producer.
A purchaser shall not be | ||||||
12 | entitled to any Manufacturer's Purchase Credit for a purchase | ||||||
13 | that is required to be reported and is not timely reported as | ||||||
14 | provided in this Section. A purchaser remains liable for (i) | ||||||
15 | any tax that was satisfied by use of a Manufacturer's Purchase | ||||||
16 | Credit, as of the date of purchase, if that use is not timely | ||||||
17 | reported as required in this Section and (ii) for any | ||||||
18 | applicable penalties and interest for failing to pay the tax | ||||||
19 | when due. | ||||||
20 | This Section is exempt from the provisions of Section 3-90. | ||||||
21 | (Source: P.A. 96-116, eff. 7-31-09.)
| ||||||
22 | Section 10. The Service Use Tax Act is amended by changing | ||||||
23 | Sections 3-5 and 3-70 as follows:
| ||||||
24 | (35 ILCS 110/3-5)
|
| |||||||
| |||||||
1 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
2 | personal property
is exempt from the tax imposed by this Act:
| ||||||
3 | (1) Personal property purchased from a corporation, | ||||||
4 | society,
association, foundation, institution, or | ||||||
5 | organization, other than a limited
liability company, that is | ||||||
6 | organized and operated as a not-for-profit service
enterprise | ||||||
7 | for the benefit of persons 65 years of age or older if the | ||||||
8 | personal
property was not purchased by the enterprise for the | ||||||
9 | purpose of resale by the
enterprise.
| ||||||
10 | (2) Personal property purchased by a non-profit Illinois | ||||||
11 | county fair
association for use in conducting, operating, or | ||||||
12 | promoting the county fair.
| ||||||
13 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
14 | cultural
organization that establishes, by proof required by | ||||||
15 | the Department by rule,
that it has received an exemption under | ||||||
16 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
17 | organized and operated primarily for the
presentation
or | ||||||
18 | support of arts or cultural programming, activities, or | ||||||
19 | services. These
organizations include, but are not limited to, | ||||||
20 | music and dramatic arts
organizations such as symphony | ||||||
21 | orchestras and theatrical groups, arts and
cultural service | ||||||
22 | organizations, local arts councils, visual arts organizations,
| ||||||
23 | and media arts organizations.
On and after the effective date | ||||||
24 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
25 | an entity otherwise eligible for this exemption shall not
make | ||||||
26 | tax-free purchases unless it has an active identification |
| |||||||
| |||||||
1 | number issued by
the Department.
| ||||||
2 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
3 | coinage issued
by the State of Illinois, the government of the | ||||||
4 | United States of America,
or the government of any foreign | ||||||
5 | country, and bullion.
| ||||||
6 | (5) Until July 1, 2003 , and beginning again on September 1, | ||||||
7 | 2004 through August 30, 2014, and beginning again on January 1, | ||||||
8 | 2019, graphic arts machinery and equipment, including
repair | ||||||
9 | and
replacement parts, both new and used, and including that | ||||||
10 | manufactured on
special order or purchased for lease, certified | ||||||
11 | by the purchaser to be used
primarily for graphic arts | ||||||
12 | production.
Equipment includes chemicals or
chemicals acting | ||||||
13 | as catalysts but only if
the chemicals or chemicals acting as | ||||||
14 | catalysts effect a direct and immediate
change upon a graphic | ||||||
15 | arts product. Beginning on July 1, 2017, graphic arts machinery | ||||||
16 | and equipment is included in the manufacturing and assembling | ||||||
17 | machinery and equipment exemption under Section 2 of this Act. | ||||||
18 | This item (5) is exempt
from the provisions of
Section 3-75.
| ||||||
19 | (6) Personal property purchased from a teacher-sponsored | ||||||
20 | student
organization affiliated with an elementary or | ||||||
21 | secondary school located
in Illinois.
| ||||||
22 | (7) Farm machinery and equipment, both new and used, | ||||||
23 | including that
manufactured on special order, certified by the | ||||||
24 | purchaser to be used
primarily for production agriculture or | ||||||
25 | State or federal agricultural
programs, including individual | ||||||
26 | replacement parts for the machinery and
equipment, including |
| |||||||
| |||||||
1 | machinery and equipment purchased for lease,
and including | ||||||
2 | implements of husbandry defined in Section 1-130 of
the | ||||||
3 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
4 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
5 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
6 | but
excluding other motor vehicles required to be registered | ||||||
7 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
8 | hoop houses used for propagating, growing, or
overwintering | ||||||
9 | plants shall be considered farm machinery and equipment under
| ||||||
10 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
11 | shall include units sold
separately from a motor vehicle | ||||||
12 | required to be licensed and units sold mounted
on a motor | ||||||
13 | vehicle required to be licensed if the selling price of the | ||||||
14 | tender
is separately stated.
| ||||||
15 | Farm machinery and equipment shall include precision | ||||||
16 | farming equipment
that is
installed or purchased to be | ||||||
17 | installed on farm machinery and equipment
including, but not | ||||||
18 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
19 | or spreaders.
Precision farming equipment includes, but is not | ||||||
20 | limited to,
soil testing sensors, computers, monitors, | ||||||
21 | software, global positioning
and mapping systems, and other | ||||||
22 | such equipment.
| ||||||
23 | Farm machinery and equipment also includes computers, | ||||||
24 | sensors, software, and
related equipment used primarily in the
| ||||||
25 | computer-assisted operation of production agriculture | ||||||
26 | facilities, equipment,
and activities such as, but
not limited |
| |||||||
| |||||||
1 | to,
the collection, monitoring, and correlation of
animal and | ||||||
2 | crop data for the purpose of
formulating animal diets and | ||||||
3 | agricultural chemicals. This item (7) is exempt
from the | ||||||
4 | provisions of
Section 3-75.
| ||||||
5 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
6 | to or used by an air common
carrier, certified by the carrier | ||||||
7 | to be used for consumption, shipment, or
storage in the conduct | ||||||
8 | of its business as an air common carrier, for a
flight destined | ||||||
9 | for or returning from a location or locations
outside the | ||||||
10 | United States without regard to previous or subsequent domestic
| ||||||
11 | stopovers.
| ||||||
12 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
13 | or used by an air carrier, certified by the carrier to be used | ||||||
14 | for consumption, shipment, or storage in the conduct of its | ||||||
15 | business as an air common carrier, for a flight that (i) is | ||||||
16 | engaged in foreign trade or is engaged in trade between the | ||||||
17 | United States and any of its possessions and (ii) transports at | ||||||
18 | least one individual or package for hire from the city of | ||||||
19 | origination to the city of final destination on the same | ||||||
20 | aircraft, without regard to a change in the flight number of | ||||||
21 | that aircraft. | ||||||
22 | (9) Proceeds of mandatory service charges separately | ||||||
23 | stated on
customers' bills for the purchase and consumption of | ||||||
24 | food and beverages
acquired as an incident to the purchase of a | ||||||
25 | service from a serviceman, to
the extent that the proceeds of | ||||||
26 | the service charge are in fact
turned over as tips or as a |
| |||||||
| |||||||
1 | substitute for tips to the employees who
participate directly | ||||||
2 | in preparing, serving, hosting or cleaning up the
food or | ||||||
3 | beverage function with respect to which the service charge is | ||||||
4 | imposed.
| ||||||
5 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
6 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
7 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
8 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
9 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
10 | individual replacement part for oil field exploration,
| ||||||
11 | drilling, and production equipment, and (vi) machinery and | ||||||
12 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
13 | required to be registered under the Illinois
Vehicle Code.
| ||||||
14 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
15 | and
equipment, including repair and replacement parts, both new | ||||||
16 | and
used, including that manufactured on special order, | ||||||
17 | certified by the
purchaser to be used primarily for | ||||||
18 | photoprocessing, and including
photoprocessing machinery and | ||||||
19 | equipment purchased for lease.
| ||||||
20 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
21 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
22 | including
replacement parts and equipment, and including
| ||||||
23 | equipment purchased for lease, but excluding motor vehicles | ||||||
24 | required to be
registered under the Illinois Vehicle Code. The | ||||||
25 | changes made to this Section by Public Act 97-767 apply on and | ||||||
26 | after July 1, 2003, but no claim for credit or refund is |
| |||||||
| |||||||
1 | allowed on or after August 16, 2013 (the effective date of | ||||||
2 | Public Act 98-456)
for such taxes paid during the period | ||||||
3 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
4 | effective date of Public Act 98-456).
| ||||||
5 | (13) Semen used for artificial insemination of livestock | ||||||
6 | for direct
agricultural production.
| ||||||
7 | (14) Horses, or interests in horses, registered with and | ||||||
8 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
9 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
10 | Horse Association, United States
Trotting Association, or | ||||||
11 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
12 | racing for prizes. This item (14) is exempt from the provisions | ||||||
13 | of Section 3-75, and the exemption provided for under this item | ||||||
14 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
15 | claim for credit or refund is allowed on or after the effective | ||||||
16 | date of this amendatory Act of the 95th General Assembly for | ||||||
17 | such taxes paid during the period beginning May 30, 2000 and | ||||||
18 | ending on the effective date of this amendatory Act of the 95th | ||||||
19 | General Assembly.
| ||||||
20 | (15) Computers and communications equipment utilized for | ||||||
21 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
22 | analysis, or treatment of hospital patients purchased by a | ||||||
23 | lessor who leases
the
equipment, under a lease of one year or | ||||||
24 | longer executed or in effect at the
time
the lessor would | ||||||
25 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
26 | hospital
that has been issued an active tax exemption |
| |||||||
| |||||||
1 | identification number by the
Department under Section 1g of the | ||||||
2 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
3 | manner that does not qualify for
this exemption
or is used in | ||||||
4 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
5 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
6 | be, based on the fair market value of the property at the time | ||||||
7 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
8 | attempt to collect an
amount (however
designated) that purports | ||||||
9 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
10 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
11 | the lessor. If a lessor improperly collects any such amount | ||||||
12 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
13 | refund of that amount
from the lessor. If, however, that amount | ||||||
14 | is not refunded to the lessee for
any reason, the lessor is | ||||||
15 | liable to pay that amount to the Department.
| ||||||
16 | (16) Personal property purchased by a lessor who leases the
| ||||||
17 | property, under
a
lease of one year or longer executed or in | ||||||
18 | effect at the time
the lessor would otherwise be subject to the | ||||||
19 | tax imposed by this Act,
to a governmental body
that has been | ||||||
20 | issued an active tax exemption identification number by the
| ||||||
21 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
22 | Act.
If the
property is leased in a manner that does not | ||||||
23 | qualify for
this exemption
or is used in any other non-exempt | ||||||
24 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
25 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
26 | fair market value of the property at the time the
|
| |||||||
| |||||||
1 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
2 | to collect an
amount (however
designated) that purports to | ||||||
3 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
4 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
5 | the lessor. If a lessor improperly collects any such amount | ||||||
6 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
7 | refund of that amount
from the lessor. If, however, that amount | ||||||
8 | is not refunded to the lessee for
any reason, the lessor is | ||||||
9 | liable to pay that amount to the Department.
| ||||||
10 | (17) Beginning with taxable years ending on or after | ||||||
11 | December
31,
1995
and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004,
personal property that is
donated for | ||||||
13 | disaster relief to be used in a State or federally declared
| ||||||
14 | disaster area in Illinois or bordering Illinois by a | ||||||
15 | manufacturer or retailer
that is registered in this State to a | ||||||
16 | corporation, society, association,
foundation, or institution | ||||||
17 | that has been issued a sales tax exemption
identification | ||||||
18 | number by the Department that assists victims of the disaster
| ||||||
19 | who reside within the declared disaster area.
| ||||||
20 | (18) Beginning with taxable years ending on or after | ||||||
21 | December
31, 1995 and
ending with taxable years ending on or | ||||||
22 | before December 31, 2004, personal
property that is used in the | ||||||
23 | performance of infrastructure repairs in this
State, including | ||||||
24 | but not limited to municipal roads and streets, access roads,
| ||||||
25 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
26 | line extensions,
water distribution and purification |
| |||||||
| |||||||
1 | facilities, storm water drainage and
retention facilities, and | ||||||
2 | sewage treatment facilities, resulting from a State
or | ||||||
3 | federally declared disaster in Illinois or bordering Illinois | ||||||
4 | when such
repairs are initiated on facilities located in the | ||||||
5 | declared disaster area
within 6 months after the disaster.
| ||||||
6 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
7 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
8 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
9 | provisions
of
Section 3-75.
| ||||||
10 | (20) A motor vehicle, as that term is defined in Section | ||||||
11 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
12 | corporation, limited liability
company, society, association, | ||||||
13 | foundation, or institution that is determined by
the Department | ||||||
14 | to be organized and operated exclusively for educational
| ||||||
15 | purposes. For purposes of this exemption, "a corporation, | ||||||
16 | limited liability
company, society, association, foundation, | ||||||
17 | or institution organized and
operated
exclusively for | ||||||
18 | educational purposes" means all tax-supported public schools,
| ||||||
19 | private schools that offer systematic instruction in useful | ||||||
20 | branches of
learning by methods common to public schools and | ||||||
21 | that compare favorably in
their scope and intensity with the | ||||||
22 | course of study presented in tax-supported
schools, and | ||||||
23 | vocational or technical schools or institutes organized and
| ||||||
24 | operated exclusively to provide a course of study of not less | ||||||
25 | than 6 weeks
duration and designed to prepare individuals to | ||||||
26 | follow a trade or to pursue a
manual, technical, mechanical, |
| |||||||
| |||||||
1 | industrial, business, or commercial
occupation.
| ||||||
2 | (21) Beginning January 1, 2000, personal property, | ||||||
3 | including
food,
purchased through fundraising
events for the | ||||||
4 | benefit of
a public or private elementary or
secondary school, | ||||||
5 | a group of those schools, or one or more school
districts if | ||||||
6 | the events are
sponsored by an entity recognized by the school | ||||||
7 | district that consists
primarily of volunteers and includes
| ||||||
8 | parents and teachers of the school children. This paragraph | ||||||
9 | does not apply
to fundraising
events (i) for the benefit of | ||||||
10 | private home instruction or (ii)
for which the fundraising | ||||||
11 | entity purchases the personal property sold at
the events from | ||||||
12 | another individual or entity that sold the property for the
| ||||||
13 | purpose of resale by the fundraising entity and that
profits | ||||||
14 | from the sale to the
fundraising entity. This paragraph is | ||||||
15 | exempt
from the provisions
of Section 3-75.
| ||||||
16 | (22) Beginning January 1, 2000
and through December 31, | ||||||
17 | 2001, new or used automatic vending
machines that prepare and | ||||||
18 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
19 | items, and replacement parts for these machines.
Beginning | ||||||
20 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
21 | for machines used in
commercial, coin-operated
amusement
and | ||||||
22 | vending business if a use or occupation tax is paid on the | ||||||
23 | gross receipts
derived from
the use of the commercial, | ||||||
24 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
25 | is exempt from the provisions of Section 3-75.
| ||||||
26 | (23) Beginning August 23, 2001 and through June 30, 2016, |
| |||||||
| |||||||
1 | food for human consumption that is to be consumed off the
| ||||||
2 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
3 | drinks, and food that
has been prepared for immediate | ||||||
4 | consumption) and prescription and
nonprescription medicines, | ||||||
5 | drugs, medical appliances, and insulin, urine
testing | ||||||
6 | materials, syringes, and needles used by diabetics, for human | ||||||
7 | use, when
purchased for use by a person receiving medical | ||||||
8 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
9 | resides in a licensed long-term care facility,
as defined in | ||||||
10 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
11 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
12 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
13 | (24) Beginning on the effective date of this amendatory Act | ||||||
14 | of the 92nd
General Assembly, computers and communications | ||||||
15 | equipment
utilized for any hospital purpose and equipment used | ||||||
16 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
17 | purchased by a lessor who leases
the equipment, under a lease | ||||||
18 | of one year or longer executed or in effect at the
time the | ||||||
19 | lessor would otherwise be subject to the tax imposed by this | ||||||
20 | Act, to a
hospital that has been issued an active tax exemption | ||||||
21 | identification number by
the Department under Section 1g of the | ||||||
22 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
23 | manner that does not qualify for this exemption or is
used in | ||||||
24 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
25 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
26 | be, based on the
fair market value of the property at the time |
| |||||||
| |||||||
1 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
2 | attempt to collect an amount (however
designated) that purports | ||||||
3 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
4 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
5 | the lessor. If a lessor improperly collects any such amount | ||||||
6 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
7 | refund of that amount
from the lessor. If, however, that amount | ||||||
8 | is not refunded to the lessee for
any reason, the lessor is | ||||||
9 | liable to pay that amount to the Department.
This paragraph is | ||||||
10 | exempt from the provisions of Section 3-75.
| ||||||
11 | (25) Beginning
on the effective date of this amendatory Act | ||||||
12 | of the 92nd General Assembly,
personal property purchased by a | ||||||
13 | lessor
who leases the property, under a lease of one year or | ||||||
14 | longer executed or in
effect at the time the lessor would | ||||||
15 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
16 | governmental body that has been issued an active tax exemption
| ||||||
17 | identification number by the Department under Section 1g of the | ||||||
18 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
19 | manner that does not
qualify for this exemption or is used in | ||||||
20 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
21 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
22 | be, based on the fair market value of the property at the time
| ||||||
23 | the nonqualifying use occurs. No lessor shall collect or | ||||||
24 | attempt to collect
an amount (however designated) that purports | ||||||
25 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
26 | Use Tax Act, as the case may be, if the tax has
not been paid by |
| |||||||
| |||||||
1 | the lessor. If a lessor improperly collects any such amount
| ||||||
2 | from the lessee, the lessee shall have a legal right to claim a | ||||||
3 | refund of that
amount from the lessor. If, however, that amount | ||||||
4 | is not refunded to the lessee
for any reason, the lessor is | ||||||
5 | liable to pay that amount to the Department.
This paragraph is | ||||||
6 | exempt from the provisions of Section 3-75.
| ||||||
7 | (26) Beginning January 1, 2008, tangible personal property | ||||||
8 | used in the construction or maintenance of a community water | ||||||
9 | supply, as defined under Section 3.145 of the Environmental | ||||||
10 | Protection Act, that is operated by a not-for-profit | ||||||
11 | corporation that holds a valid water supply permit issued under | ||||||
12 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
13 | exempt from the provisions of Section 3-75.
| ||||||
14 | (27) Beginning January 1, 2010, materials, parts, | ||||||
15 | equipment, components, and furnishings incorporated into or | ||||||
16 | upon an aircraft as part of the modification, refurbishment, | ||||||
17 | completion, replacement, repair, or maintenance of the | ||||||
18 | aircraft. This exemption includes consumable supplies used in | ||||||
19 | the modification, refurbishment, completion, replacement, | ||||||
20 | repair, and maintenance of aircraft, but excludes any | ||||||
21 | materials, parts, equipment, components, and consumable | ||||||
22 | supplies used in the modification, replacement, repair, and | ||||||
23 | maintenance of aircraft engines or power plants, whether such | ||||||
24 | engines or power plants are installed or uninstalled upon any | ||||||
25 | such aircraft. "Consumable supplies" include, but are not | ||||||
26 | limited to, adhesive, tape, sandpaper, general purpose |
| |||||||
| |||||||
1 | lubricants, cleaning solution, latex gloves, and protective | ||||||
2 | films. This exemption applies only to the use of qualifying | ||||||
3 | tangible personal property transferred incident to the | ||||||
4 | modification, refurbishment, completion, replacement, repair, | ||||||
5 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
6 | Agency Certificate and are empowered to operate an approved | ||||||
7 | repair station by the Federal Aviation Administration, (ii) | ||||||
8 | have a Class IV Rating, and (iii) conduct operations in | ||||||
9 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
10 | The exemption does not include aircraft operated by a | ||||||
11 | commercial air carrier providing scheduled passenger air | ||||||
12 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
13 | of the Federal Aviation Regulations. The changes made to this | ||||||
14 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
15 | law. | ||||||
16 | (28) Tangible personal property purchased by a | ||||||
17 | public-facilities corporation, as described in Section | ||||||
18 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
19 | constructing or furnishing a municipal convention hall, but | ||||||
20 | only if the legal title to the municipal convention hall is | ||||||
21 | transferred to the municipality without any further | ||||||
22 | consideration by or on behalf of the municipality at the time | ||||||
23 | of the completion of the municipal convention hall or upon the | ||||||
24 | retirement or redemption of any bonds or other debt instruments | ||||||
25 | issued by the public-facilities corporation in connection with | ||||||
26 | the development of the municipal convention hall. This |
| |||||||
| |||||||
1 | exemption includes existing public-facilities corporations as | ||||||
2 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
3 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
4 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
5 | and menstrual cups. | ||||||
6 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
7 | 100-22, eff. 7-6-17.)
| ||||||
8 | (35 ILCS 110/3-70)
| ||||||
9 | Sec. 3-70. Manufacturer's Purchase Credit. For purchases | ||||||
10 | of machinery and
equipment made on and after January 1, 1995 | ||||||
11 | and through June 30, 2003, and on and after September 1, 2004 | ||||||
12 | through August 30, 2014,
and on and after January 1, 2019, a
| ||||||
13 | purchaser of manufacturing
machinery and equipment that | ||||||
14 | qualifies for the exemption provided by Section
2 of this Act | ||||||
15 | earns a credit in an amount equal to a fixed
percentage of
the | ||||||
16 | tax which would have been incurred under this Act on those | ||||||
17 | purchases.
For purchases of graphic arts machinery and | ||||||
18 | equipment made on or after July
1, 1996 through June 30, 2003, | ||||||
19 | and on and after September 1, 2004 through August 30, 2014, and | ||||||
20 | on and after January 1, 2019, a purchase of graphic arts | ||||||
21 | machinery and
equipment that qualifies for
the exemption | ||||||
22 | provided by paragraph (5) of Section 3-5 of this Act earns a
| ||||||
23 | credit in an amount equal to a fixed percentage of the tax that | ||||||
24 | would have been
incurred under this Act on those purchases.
The | ||||||
25 | credit earned for the purchase of manufacturing machinery and |
| |||||||
| |||||||
1 | equipment
and graphic arts machinery and equipment shall be | ||||||
2 | referred to
as the Manufacturer's Purchase Credit.
A graphic | ||||||
3 | arts producer is a person engaged in graphic arts production as
| ||||||
4 | defined in Section 3-30 of the Service Occupation Tax Act. | ||||||
5 | Beginning July 1,
1996, all references in this Section to | ||||||
6 | manufacturers or manufacturing shall
also refer to graphic arts | ||||||
7 | producers or graphic arts production.
| ||||||
8 | The amount of credit shall be a percentage of the tax that | ||||||
9 | would have been
incurred on the purchase of the manufacturing | ||||||
10 | machinery and equipment or
graphic arts machinery and equipment
| ||||||
11 | if the
exemptions provided by Section 2 or paragraph (5) of
| ||||||
12 | Section 3-5 of
this Act had not
been applicable.
| ||||||
13 | All purchases prior to October 1, 2003 of manufacturing | ||||||
14 | machinery and
equipment and graphic arts
machinery and | ||||||
15 | equipment that qualify for the exemptions provided by paragraph
| ||||||
16 | (5) of Section 2
or paragraph (5) of Section 3-5 of this Act | ||||||
17 | qualify for the credit without
regard to whether the serviceman | ||||||
18 | elected, or could have elected, under
paragraph (7) of Section | ||||||
19 | 2 of this Act to exclude the transaction from this
Act. If the | ||||||
20 | serviceman's billing to the service customer separately states | ||||||
21 | a
selling price for the exempt manufacturing machinery or | ||||||
22 | equipment or the exempt
graphic arts machinery and equipment, | ||||||
23 | the credit shall be calculated, as
otherwise provided herein, | ||||||
24 | based on that selling price. If the serviceman's
billing does | ||||||
25 | not separately state a selling price for the exempt | ||||||
26 | manufacturing
machinery and equipment or the exempt graphic |
| |||||||
| |||||||
1 | arts machinery and equipment, the
credit shall be calculated, | ||||||
2 | as otherwise provided herein, based on 50% of the
entire | ||||||
3 | billing. If the serviceman contracts to design, develop, and | ||||||
4 | produce
special order manufacturing machinery and equipment or | ||||||
5 | special order graphic
arts machinery and equipment, and the | ||||||
6 | billing does not separately state a
selling price for such | ||||||
7 | special order machinery and
equipment, the credit shall be | ||||||
8 | calculated, as otherwise provided herein, based
on 50% of the | ||||||
9 | entire billing. The provisions of this paragraph are effective
| ||||||
10 | for purchases made on or after January 1, 1995.
| ||||||
11 | The percentage shall be as follows:
| ||||||
12 | (1) 15% for purchases made on or before June 30, 1995.
| ||||||
13 | (2) 25% for purchases made after June 30, 1995, and on | ||||||
14 | or before June 30,
1996.
| ||||||
15 | (3) 40% for purchases made after June 30, 1996, and on | ||||||
16 | or before June 30,
1997.
| ||||||
17 | (4) 50% for purchases made on or after July 1, 1997.
| ||||||
18 | (a) Manufacturer's Purchase Credit earned prior to July 1, | ||||||
19 | 2003. This subsection (a) applies to Manufacturer's Purchase | ||||||
20 | Credit earned prior to July 1, 2003. A purchaser of production | ||||||
21 | related tangible personal property desiring to use
the | ||||||
22 | Manufacturer's Purchase Credit shall certify to the seller | ||||||
23 | prior to
October 1, 2003 that the
purchaser is satisfying all | ||||||
24 | or part of
the
liability under the Use Tax Act or the Service | ||||||
25 | Use Tax Act that is due on the
purchase of the production | ||||||
26 | related tangible personal property by use of a
Manufacturer's |
| |||||||
| |||||||
1 | Purchase Credit. The Manufacturer's Purchase Credit
| ||||||
2 | certification
must be dated and shall include the name and | ||||||
3 | address of the purchaser, the
purchaser's registration number, | ||||||
4 | if registered, the
credit being
applied, and a statement that | ||||||
5 | the State Use Tax or Service Use Tax liability
is being | ||||||
6 | satisfied with the manufacturer's or graphic arts producer's
| ||||||
7 | accumulated purchase credit.
Certification may be incorporated | ||||||
8 | into the manufacturer's or graphic arts
producer's
purchase | ||||||
9 | order.
Manufacturer's Purchase Credit certification provided | ||||||
10 | by the manufacturer
or graphic
arts producer
prior to October | ||||||
11 | 1, 2003 may be used to satisfy the retailer's or
serviceman's | ||||||
12 | liability under the
Retailers' Occupation Tax Act or
Service
| ||||||
13 | Occupation Tax Act for the credit claimed, not to exceed
6.25% | ||||||
14 | of the receipts subject to tax from a qualifying purchase, but | ||||||
15 | only if
the retailer or serviceman reports the Manufacturer's | ||||||
16 | Purchase Credit claimed
as required by the Department. A | ||||||
17 | Manufacturer's Purchase Credit reported on
any original or | ||||||
18 | amended return
filed under
this Act after October 20, 2003 | ||||||
19 | shall be disallowed. The Manufacturer's
Purchase Credit earned | ||||||
20 | by
purchase of exempt manufacturing machinery and equipment
or | ||||||
21 | graphic arts machinery and equipment is a
non-transferable | ||||||
22 | credit. A manufacturer or graphic arts producer
that enters | ||||||
23 | into a
contract involving the installation of tangible personal | ||||||
24 | property into
real estate within a manufacturing or graphic | ||||||
25 | arts production facility, prior
to October 1, 2003, may | ||||||
26 | authorize a construction contractor
to utilize credit |
| |||||||
| |||||||
1 | accumulated by the manufacturer or graphic arts producer
to
| ||||||
2 | purchase the tangible personal property. A manufacturer or | ||||||
3 | graphic arts
producer
intending to use accumulated credit to | ||||||
4 | purchase such tangible personal
property shall execute a | ||||||
5 | written contract authorizing the contractor to utilize
a | ||||||
6 | specified dollar amount of credit. The contractor shall | ||||||
7 | furnish, prior to
October 1, 2003, the supplier
with the | ||||||
8 | manufacturer's or graphic arts producer's name, registration | ||||||
9 | or
resale number, and a statement
that a specific amount of the | ||||||
10 | Use Tax or Service Use Tax liability, not to
exceed 6.25% of | ||||||
11 | the selling price, is being satisfied with the credit. The
| ||||||
12 | manufacturer or graphic arts producer shall remain liable to | ||||||
13 | timely report
all information required by
the annual Report of | ||||||
14 | Manufacturer's Purchase Credit Used for credit utilized by
a
| ||||||
15 | construction contractor.
| ||||||
16 | No Manufacturer's Purchase Credit earned prior to July 1, | ||||||
17 | 2003 may be used after October 1, 2003. The Manufacturer's | ||||||
18 | Purchase Credit may be used to satisfy liability under the
Use | ||||||
19 | Tax Act or the Service Use Tax Act due on the purchase of | ||||||
20 | production
related tangible personal property (including | ||||||
21 | purchases by a manufacturer, by
a graphic arts producer,
or a | ||||||
22 | lessor who rents or leases the use of
the property to a | ||||||
23 | manufacturer or graphic arts producer) that does not
otherwise | ||||||
24 | qualify for the manufacturing machinery and equipment
| ||||||
25 | exemption or the graphic arts machinery and equipment | ||||||
26 | exemption.
"Production related tangible personal
property" |
| |||||||
| |||||||
1 | means (i) all tangible personal property used or consumed by | ||||||
2 | the
purchaser in a manufacturing facility in which a | ||||||
3 | manufacturing process
described in Section 2-45 of the | ||||||
4 | Retailers' Occupation Tax Act
takes place, including tangible | ||||||
5 | personal property purchased for incorporation
into
real estate | ||||||
6 | within a manufacturing facility and including, but not limited
| ||||||
7 | to,
tangible personal property used or consumed in activities | ||||||
8 | such as
pre-production
material handling, receiving, quality | ||||||
9 | control, inventory control, storage,
staging, and packaging | ||||||
10 | for shipping and transportation purposes; (ii)
all tangible | ||||||
11 | personal property used or consumed by the purchaser in a | ||||||
12 | graphic
arts facility in which graphic arts production as | ||||||
13 | described in Section 2-30 of
the Retailers' Occupation Tax Act | ||||||
14 | takes place, including tangible personal
property purchased | ||||||
15 | for incorporation into real estate within a graphic arts
| ||||||
16 | facility and including, but not limited to, all tangible | ||||||
17 | personal property used
or consumed in activities such as | ||||||
18 | graphic arts preliminary or pre-press
production, | ||||||
19 | pre-production material handling, receiving, quality control,
| ||||||
20 | inventory control, storage, staging, sorting, labeling, | ||||||
21 | mailing, tying,
wrapping, and packaging; and (iii) all tangible | ||||||
22 | personal property used or
consumed by the purchaser
for | ||||||
23 | research and
development. "Production related tangible | ||||||
24 | personal property" does not include
(i) tangible personal | ||||||
25 | property used, within or without a manufacturing or
graphic | ||||||
26 | arts
facility, in sales, purchasing,
accounting, fiscal |
| |||||||
| |||||||
1 | management, marketing,
personnel recruitment or selection, or | ||||||
2 | landscaping or (ii) tangible personal
property required to be | ||||||
3 | titled or registered with a department, agency, or unit
of | ||||||
4 | federal, state, or local
government. The Manufacturer's | ||||||
5 | Purchase Credit may be used, prior to October
1, 2003, to | ||||||
6 | satisfy the tax
arising either from the purchase of
machinery | ||||||
7 | and equipment on or after January 1, 1995
for which the | ||||||
8 | manufacturing machinery and equipment exemption
provided by | ||||||
9 | Section 2 of this Act was
erroneously claimed, or the purchase | ||||||
10 | of machinery and equipment on or after
July 1, 1996 for which | ||||||
11 | the exemption provided by paragraph (5) of Section 3-5
of this | ||||||
12 | Act was erroneously claimed, but not in
satisfaction of | ||||||
13 | penalty, if any, and interest for failure to pay the tax
when | ||||||
14 | due. A
purchaser of production related tangible personal | ||||||
15 | property who is required to
pay Illinois Use Tax or Service Use | ||||||
16 | Tax on the purchase directly to the
Department may, prior to | ||||||
17 | October 1, 2003, utilize the Manufacturer's
Purchase Credit in | ||||||
18 | satisfaction of
the tax arising from that purchase, but not in
| ||||||
19 | satisfaction of penalty and
interest.
A purchaser who uses the | ||||||
20 | Manufacturer's Purchase Credit to purchase
property
which is | ||||||
21 | later determined not to be production related tangible personal
| ||||||
22 | property may be liable for tax, penalty, and interest on the | ||||||
23 | purchase of that
property as of the date of purchase but shall | ||||||
24 | be entitled to use the disallowed
Manufacturer's Purchase
| ||||||
25 | Credit, so long as it has not expired and is used prior to | ||||||
26 | October 1, 2003,
on qualifying purchases of production
related |
| |||||||
| |||||||
1 | tangible personal property not previously subject to credit | ||||||
2 | usage.
The Manufacturer's Purchase Credit earned by a | ||||||
3 | manufacturer or graphic arts
producer
expires the last day of | ||||||
4 | the second calendar year following the
calendar year in
which | ||||||
5 | the credit arose. No Manufacturer's Purchase Credit may be used | ||||||
6 | after
September 30, 2003
regardless of
when that credit was | ||||||
7 | earned.
| ||||||
8 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
9 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
10 | Credit Earned for each calendar year
no later
than the last day | ||||||
11 | of the sixth month following the calendar year in which a
| ||||||
12 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
13 | Manufacturer's Purchase
Credit
Earned shall be filed on forms | ||||||
14 | as prescribed or approved by the Department and
shall state, | ||||||
15 | for each month of the calendar year: (i) the total purchase | ||||||
16 | price
of all purchases of exempt manufacturing or graphic arts | ||||||
17 | machinery on which
the credit was
earned; (ii) the total State | ||||||
18 | Use Tax or Service Use Tax which would have been
due on those | ||||||
19 | items; (iii) the percentage used to calculate the amount of | ||||||
20 | credit
earned; (iv) the amount of credit earned; and (v) such | ||||||
21 | other information as the
Department may reasonably require. A | ||||||
22 | purchaser earning Manufacturer's Purchase
Credit shall | ||||||
23 | maintain records which identify, as to each purchase of
| ||||||
24 | manufacturing or graphic arts machinery and equipment on which | ||||||
25 | the
purchaser earned
Manufacturer's Purchase Credit, the | ||||||
26 | vendor (including, if applicable, either
the vendor's |
| |||||||
| |||||||
1 | registration number or Federal Employer Identification | ||||||
2 | Number),
the purchase price, and the amount of Manufacturer's | ||||||
3 | Purchase Credit earned on
each purchase.
| ||||||
4 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
5 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
6 | Credit Used for each calendar year no
later than the last day | ||||||
7 | of the sixth month following the calendar year in which
a | ||||||
8 | Manufacturer's Purchase Credit is used. A Report of | ||||||
9 | Manufacturer's Purchase
Credit Used shall be filed on forms as | ||||||
10 | prescribed or approved by the Department
and
shall state, for | ||||||
11 | each month of the calendar year: (i) the total purchase price
| ||||||
12 | of production related tangible personal property purchased | ||||||
13 | from Illinois
suppliers; (ii) the total purchase price
of | ||||||
14 | production related tangible personal property purchased from | ||||||
15 | out-of-state
suppliers; (iii) the total amount of credit used | ||||||
16 | during such month; and (iv)
such
other information as the | ||||||
17 | Department may reasonably require. A purchaser using
| ||||||
18 | Manufacturer's Purchase Credit shall maintain records that | ||||||
19 | identify, as to
each purchase of production related tangible | ||||||
20 | personal property on which the
purchaser used Manufacturer's | ||||||
21 | Purchase Credit, the vendor (including, if
applicable, either | ||||||
22 | the vendor's registration number or Federal Employer
| ||||||
23 | Identification Number), the purchase price, and the amount of | ||||||
24 | Manufacturer's
Purchase Credit used on each purchase.
| ||||||
25 | No annual report shall be filed before May 1, 1996 or after | ||||||
26 | June 30,
2004.
A purchaser that fails to file an annual Report |
| |||||||
| |||||||
1 | of Manufacturer's Purchase
Credit
Earned or an annual Report of | ||||||
2 | Manufacturer's Purchase Credit Used by the last
day
of the | ||||||
3 | sixth month following the end of the calendar year shall | ||||||
4 | forfeit all
Manufacturer's Purchase Credit for that calendar | ||||||
5 | year unless it establishes
that its failure to file was due to | ||||||
6 | reasonable cause.
Manufacturer's Purchase Credit
reports may | ||||||
7 | be amended to report and claim credit on qualifying purchases | ||||||
8 | not
previously reported at any time before the credit would | ||||||
9 | have expired, unless
both the Department and the purchaser have | ||||||
10 | agreed to an extension of
the statute of limitations for the | ||||||
11 | issuance of a notice of tax liability as
provided in Section 4 | ||||||
12 | of the Retailers' Occupation Tax Act. If the time for
| ||||||
13 | assessment or refund has been extended, then amended reports | ||||||
14 | for a calendar
year may be filed at any time prior to the date | ||||||
15 | to which the statute of
limitations for the calendar year or | ||||||
16 | portion thereof has been extended.
No Manufacturer's Purchase | ||||||
17 | Credit report filed with the Department
for periods
prior to | ||||||
18 | January 1, 1995 shall be approved.
Manufacturer's Purchase | ||||||
19 | Credit claimed on an amended report may be used,
prior to | ||||||
20 | October 1, 2003, to
satisfy tax liability under the Use Tax Act | ||||||
21 | or the Service Use Tax Act (i) on
qualifying purchases of | ||||||
22 | production related tangible personal property made
after the | ||||||
23 | date the amended report is filed or (ii) assessed by the | ||||||
24 | Department
on qualifying purchases of production related | ||||||
25 | tangible personal property made
in the case of manufacturers on | ||||||
26 | or after January 1, 1995, or in the case
of graphic arts |
| |||||||
| |||||||
1 | producers on or after July 1, 1996.
| ||||||
2 | If the purchaser is not the manufacturer or a graphic arts | ||||||
3 | producer, but
rents or
leases the use of the property to a | ||||||
4 | manufacturer or a graphic arts
producer,
the purchaser may | ||||||
5 | earn, report, and use
Manufacturer's
Purchase Credit in the | ||||||
6 | same manner as a manufacturer or graphic arts
producer.
| ||||||
7 | A purchaser shall not be entitled to any Manufacturer's | ||||||
8 | Purchase
Credit for a purchase that is required to be reported | ||||||
9 | and is not timely
reported as
provided in this Section. A | ||||||
10 | purchaser remains liable for (i) any
tax that was satisfied by | ||||||
11 | use of a Manufacturer's Purchase Credit, as of the
date of | ||||||
12 | purchase, if that use is not timely reported as required in | ||||||
13 | this
Section and (ii) for any applicable penalties and interest | ||||||
14 | for failing to pay
the tax when due. No Manufacturer's Purchase | ||||||
15 | Credit may be used after
September 30, 2003 to
satisfy any
tax | ||||||
16 | liability imposed under this Act, including any audit | ||||||
17 | liability.
| ||||||
18 | (b) Manufacturer's Purchase Credit earned on and after | ||||||
19 | September 1, 2004. This subsection (b) applies to | ||||||
20 | Manufacturer's Purchase Credit earned on or after September 1, | ||||||
21 | 2004. Manufacturer's Purchase Credit earned on or after | ||||||
22 | September 1, 2004 may only be used to satisfy the Use Tax or | ||||||
23 | Service Use Tax liability incurred on production related | ||||||
24 | tangible personal property purchased on or after September 1, | ||||||
25 | 2004. A purchaser of production related tangible personal | ||||||
26 | property desiring to use the Manufacturer's Purchase Credit |
| |||||||
| |||||||
1 | shall certify to the seller that the purchaser is satisfying | ||||||
2 | all or part of the liability under the Use Tax Act or the | ||||||
3 | Service Use Tax Act that is due on the purchase of the | ||||||
4 | production related tangible personal property by use of a | ||||||
5 | Manufacturer's Purchase Credit. The Manufacturer's Purchase | ||||||
6 | Credit certification must be dated and shall include the name | ||||||
7 | and address of the purchaser, the purchaser's registration | ||||||
8 | number, if registered, the credit being applied, and a | ||||||
9 | statement that the State Use Tax or Service Use Tax liability | ||||||
10 | is being satisfied with the manufacturer's or graphic arts | ||||||
11 | producer's accumulated purchase credit. Certification may be | ||||||
12 | incorporated into the manufacturer's or graphic arts | ||||||
13 | producer's purchase order. Manufacturer's Purchase Credit | ||||||
14 | certification provided by the manufacturer or graphic arts | ||||||
15 | producer may be used to satisfy the retailer's or serviceman's | ||||||
16 | liability under the Retailers' Occupation Tax Act or Service | ||||||
17 | Occupation Tax Act for the credit claimed, not to exceed 6.25% | ||||||
18 | of the receipts subject to tax from a qualifying purchase, but | ||||||
19 | only if the retailer or serviceman reports the Manufacturer's | ||||||
20 | Purchase Credit claimed as required by the Department. The | ||||||
21 | Manufacturer's Purchase Credit earned by purchase of exempt | ||||||
22 | manufacturing machinery and equipment or graphic arts | ||||||
23 | machinery and equipment is a non-transferable credit. A | ||||||
24 | manufacturer or graphic arts producer that enters into a | ||||||
25 | contract involving the installation of tangible personal | ||||||
26 | property into real estate within a manufacturing or graphic |
| |||||||
| |||||||
1 | arts production facility may, on or after September 1, 2004, | ||||||
2 | authorize a construction contractor to utilize credit | ||||||
3 | accumulated by the manufacturer or graphic arts producer to | ||||||
4 | purchase the tangible personal property. A manufacturer or | ||||||
5 | graphic arts producer intending to use accumulated credit to | ||||||
6 | purchase such tangible personal property shall execute a | ||||||
7 | written contract authorizing the contractor to utilize a | ||||||
8 | specified dollar amount of credit. The contractor shall furnish | ||||||
9 | the supplier with the manufacturer's or graphic arts producer's | ||||||
10 | name, registration or resale number, and a statement that a | ||||||
11 | specific amount of the Use Tax or Service Use Tax liability, | ||||||
12 | not to exceed 6.25% of the selling price, is being satisfied | ||||||
13 | with the credit. The manufacturer or graphic arts producer | ||||||
14 | shall remain liable to timely report all information required | ||||||
15 | by the annual Report of Manufacturer's Purchase Credit Used for | ||||||
16 | credit utilized by a construction contractor. | ||||||
17 | The Manufacturer's Purchase Credit may be used to satisfy | ||||||
18 | liability under the Use Tax Act or the Service Use Tax Act due | ||||||
19 | on the purchase, made on or after September 1, 2004, of | ||||||
20 | production related tangible personal property (including | ||||||
21 | purchases by a manufacturer, by a graphic arts producer, or a | ||||||
22 | lessor who rents or leases the use of the property to a | ||||||
23 | manufacturer or graphic arts producer) that does not otherwise | ||||||
24 | qualify for the manufacturing machinery and equipment | ||||||
25 | exemption or the graphic arts machinery and equipment | ||||||
26 | exemption. "Production related tangible personal property" |
| |||||||
| |||||||
1 | means (i) all tangible personal property used or consumed by | ||||||
2 | the purchaser in a manufacturing facility in which a | ||||||
3 | manufacturing process described in Section 2-45 of the | ||||||
4 | Retailers' Occupation Tax Act takes place, including tangible | ||||||
5 | personal property purchased for incorporation into real estate | ||||||
6 | within a manufacturing facility and including, but not limited | ||||||
7 | to, tangible personal property used or consumed in activities | ||||||
8 | such as pre-production material handling, receiving, quality | ||||||
9 | control, inventory control, storage, staging, and packaging | ||||||
10 | for shipping and transportation purposes; (ii) all tangible | ||||||
11 | personal property used or consumed by the purchaser in a | ||||||
12 | graphic arts facility in which graphic arts production as | ||||||
13 | described in Section 2-30 of the Retailers' Occupation Tax Act | ||||||
14 | takes place, including tangible personal property purchased | ||||||
15 | for incorporation into real estate within a graphic arts | ||||||
16 | facility and including, but not limited to, all tangible | ||||||
17 | personal property used or consumed in activities such as | ||||||
18 | graphic arts preliminary or pre-press production, | ||||||
19 | pre-production material handling, receiving, quality control, | ||||||
20 | inventory control, storage, staging, sorting, labeling, | ||||||
21 | mailing, tying, wrapping, and packaging; and (iii) all tangible | ||||||
22 | personal property used or consumed by the purchaser for | ||||||
23 | research and development. "Production related tangible | ||||||
24 | personal property" does not include (i) tangible personal | ||||||
25 | property used, within or without a manufacturing or graphic | ||||||
26 | arts facility, in sales, purchasing, accounting, fiscal |
| |||||||
| |||||||
1 | management, marketing, personnel recruitment or selection, or | ||||||
2 | landscaping or (ii) tangible personal property required to be | ||||||
3 | titled or registered with a department, agency, or unit of | ||||||
4 | federal, state, or local government. The Manufacturer's | ||||||
5 | Purchase Credit may be used to satisfy the tax arising either | ||||||
6 | from the purchase of machinery and equipment on or after | ||||||
7 | September 1, 2004 for which the manufacturing machinery and | ||||||
8 | equipment exemption provided by Section 2 of this Act was | ||||||
9 | erroneously claimed, or the purchase of machinery and equipment | ||||||
10 | on or after September 1, 2004 for which the exemption provided | ||||||
11 | by paragraph (5) of Section 3-5 of this Act was erroneously | ||||||
12 | claimed, but not in satisfaction of penalty, if any, and | ||||||
13 | interest for failure to pay the tax when due. A purchaser of | ||||||
14 | production related tangible personal property that is | ||||||
15 | purchased on or after September 1, 2004 who is required to pay | ||||||
16 | Illinois Use Tax or Service Use Tax on the purchase directly to | ||||||
17 | the Department may utilize the Manufacturer's Purchase Credit | ||||||
18 | in satisfaction of the tax arising from that purchase, but not | ||||||
19 | in satisfaction of penalty and interest. A purchaser who uses | ||||||
20 | the Manufacturer's Purchase Credit to purchase property on and | ||||||
21 | after September 1, 2004 which is later determined not to be | ||||||
22 | production related tangible personal property may be liable for | ||||||
23 | tax, penalty, and interest on the purchase of that property as | ||||||
24 | of the date of purchase but shall be entitled to use the | ||||||
25 | disallowed Manufacturer's Purchase Credit, so long as it has | ||||||
26 | not expired, on qualifying purchases of production related |
| |||||||
| |||||||
1 | tangible personal property not previously subject to credit | ||||||
2 | usage. The Manufacturer's Purchase Credit earned by a | ||||||
3 | manufacturer or graphic arts producer expires the last day of | ||||||
4 | the second calendar year following the calendar year in which | ||||||
5 | the credit arose. | ||||||
6 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
7 | sign and file an annual Report of Manufacturer's Purchase | ||||||
8 | Credit Earned for each calendar year no later than the last day | ||||||
9 | of the sixth month following the calendar year in which a | ||||||
10 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
11 | Manufacturer's Purchase Credit Earned shall be filed on forms | ||||||
12 | as prescribed or approved by the Department and shall state, | ||||||
13 | for each month of the calendar year: (i) the total purchase | ||||||
14 | price of all purchases of exempt manufacturing or graphic arts | ||||||
15 | machinery on which the credit was earned; (ii) the total State | ||||||
16 | Use Tax or Service Use Tax which would have been due on those | ||||||
17 | items; (iii) the percentage used to calculate the amount of | ||||||
18 | credit earned; (iv) the amount of credit earned; and (v) such | ||||||
19 | other information as the Department may reasonably require. A | ||||||
20 | purchaser earning Manufacturer's Purchase Credit shall | ||||||
21 | maintain records which identify, as to each purchase of | ||||||
22 | manufacturing or graphic arts machinery and equipment on which | ||||||
23 | the purchaser earned Manufacturer's Purchase Credit, the | ||||||
24 | vendor (including, if applicable, either the vendor's | ||||||
25 | registration number or Federal Employer Identification | ||||||
26 | Number), the purchase price, and the amount of Manufacturer's |
| |||||||
| |||||||
1 | Purchase Credit earned on each purchase. | ||||||
2 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
3 | sign and file an annual Report of Manufacturer's Purchase | ||||||
4 | Credit Used for each calendar year no later than the last day | ||||||
5 | of the sixth month following the calendar year in which a | ||||||
6 | Manufacturer's Purchase Credit is used. A Report of | ||||||
7 | Manufacturer's Purchase Credit Used shall be filed on forms as | ||||||
8 | prescribed or approved by the Department and shall state, for | ||||||
9 | each month of the calendar year: (i) the total purchase price | ||||||
10 | of production related tangible personal property purchased | ||||||
11 | from Illinois suppliers; (ii) the total purchase price of | ||||||
12 | production related tangible personal property purchased from | ||||||
13 | out-of-state suppliers; (iii) the total amount of credit used | ||||||
14 | during such month; and (iv) such other information as the | ||||||
15 | Department may reasonably require. A purchaser using | ||||||
16 | Manufacturer's Purchase Credit shall maintain records that | ||||||
17 | identify, as to each purchase of production related tangible | ||||||
18 | personal property on which the purchaser used Manufacturer's | ||||||
19 | Purchase Credit, the vendor (including, if applicable, either | ||||||
20 | the vendor's registration number or Federal Employer | ||||||
21 | Identification Number), the purchase price, and the amount of | ||||||
22 | Manufacturer's Purchase Credit used on each purchase. | ||||||
23 | A purchaser that fails to file an annual Report of | ||||||
24 | Manufacturer's Purchase Credit Earned or an annual Report of | ||||||
25 | Manufacturer's Purchase Credit Used by the last day of the | ||||||
26 | sixth month following the end of the calendar year shall |
| |||||||
| |||||||
1 | forfeit all Manufacturer's Purchase Credit for that calendar | ||||||
2 | year unless it establishes that its failure to file was due to | ||||||
3 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
4 | be amended to report and claim credit on qualifying purchases | ||||||
5 | not previously reported at any time before the credit would | ||||||
6 | have expired, unless both the Department and the purchaser have | ||||||
7 | agreed to an extension of the statute of limitations for the | ||||||
8 | issuance of a notice of tax liability as provided in Section 4 | ||||||
9 | of the Retailers' Occupation Tax Act. If the time for | ||||||
10 | assessment or refund has been extended, then amended reports | ||||||
11 | for a calendar year may be filed at any time prior to the date | ||||||
12 | to which the statute of limitations for the calendar year or | ||||||
13 | portion thereof has been extended. Manufacturer's Purchase | ||||||
14 | Credit claimed on an amended report may be used to satisfy tax | ||||||
15 | liability under the Use Tax Act or the Service Use Tax Act (i) | ||||||
16 | on qualifying purchases of production related tangible | ||||||
17 | personal property made after the date the amended report is | ||||||
18 | filed or (ii) assessed by the Department on qualifying | ||||||
19 | production related tangible personal property purchased on or | ||||||
20 | after September 1, 2004. | ||||||
21 | If the purchaser is not the manufacturer or a graphic arts | ||||||
22 | producer, but rents or leases the use of the property to a | ||||||
23 | manufacturer or a graphic arts producer, the purchaser may | ||||||
24 | earn, report, and use Manufacturer's Purchase Credit in the | ||||||
25 | same manner as a manufacturer or graphic arts producer.
A | ||||||
26 | purchaser shall not be entitled to any Manufacturer's Purchase |
| |||||||
| |||||||
1 | Credit for a purchase that is required to be reported and is | ||||||
2 | not timely reported as provided in this Section. A purchaser | ||||||
3 | remains liable for (i) any tax that was satisfied by use of a | ||||||
4 | Manufacturer's Purchase Credit, as of the date of purchase, if | ||||||
5 | that use is not timely reported as required in this Section and | ||||||
6 | (ii) for any applicable penalties and interest for failing to | ||||||
7 | pay the tax when due.
| ||||||
8 | This Section is exempt from the provisions
of
Section 3-75. | ||||||
9 | (Source: P.A. 96-116, eff. 7-31-09.)
| ||||||
10 | Section 15. The Service Occupation Tax Act is amended by | ||||||
11 | changing Section 3-5 as follows:
| ||||||
12 | (35 ILCS 115/3-5)
| ||||||
13 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
14 | property is
exempt from the tax imposed by this Act:
| ||||||
15 | (1) Personal property sold by a corporation, society, | ||||||
16 | association,
foundation, institution, or organization, other | ||||||
17 | than a limited liability
company, that is organized and | ||||||
18 | operated as a not-for-profit service enterprise
for the benefit | ||||||
19 | of persons 65 years of age or older if the personal property
| ||||||
20 | was not purchased by the enterprise for the purpose of resale | ||||||
21 | by the
enterprise.
| ||||||
22 | (2) Personal property purchased by a not-for-profit | ||||||
23 | Illinois county fair
association for use in conducting, | ||||||
24 | operating, or promoting the county fair.
|
| |||||||
| |||||||
1 | (3) Personal property purchased by any not-for-profit
arts | ||||||
2 | or cultural organization that establishes, by proof required by | ||||||
3 | the
Department by
rule, that it has received an exemption under | ||||||
4 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
5 | organized and operated primarily for the
presentation
or | ||||||
6 | support of arts or cultural programming, activities, or | ||||||
7 | services. These
organizations include, but are not limited to, | ||||||
8 | music and dramatic arts
organizations such as symphony | ||||||
9 | orchestras and theatrical groups, arts and
cultural service | ||||||
10 | organizations, local arts councils, visual arts organizations,
| ||||||
11 | and media arts organizations.
On and after the effective date | ||||||
12 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
13 | an entity otherwise eligible for this exemption shall not
make | ||||||
14 | tax-free purchases unless it has an active identification | ||||||
15 | number issued by
the Department.
| ||||||
16 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
17 | coinage
issued by the State of Illinois, the government of the | ||||||
18 | United States of
America, or the government of any foreign | ||||||
19 | country, and bullion.
| ||||||
20 | (5) Until July 1, 2003 , and beginning again on September 1, | ||||||
21 | 2004 through August 30, 2014, and beginning again on January 1, | ||||||
22 | 2019, graphic arts machinery and equipment, including
repair | ||||||
23 | and
replacement parts, both new and used, and including that | ||||||
24 | manufactured on
special order or purchased for lease, certified | ||||||
25 | by the purchaser to be used
primarily for graphic arts | ||||||
26 | production.
Equipment includes chemicals or chemicals acting |
| |||||||
| |||||||
1 | as catalysts but only if
the
chemicals or chemicals acting as | ||||||
2 | catalysts effect a direct and immediate change
upon a graphic | ||||||
3 | arts product. Beginning on July 1, 2017, graphic arts machinery | ||||||
4 | and equipment is included in the manufacturing and assembling | ||||||
5 | machinery and equipment exemption under Section 2 of this Act. | ||||||
6 | This item (5) is exempt form the provisions of Section 3-55.
| ||||||
7 | (6) Personal property sold by a teacher-sponsored student | ||||||
8 | organization
affiliated with an elementary or secondary school | ||||||
9 | located in Illinois.
| ||||||
10 | (7) Farm machinery and equipment, both new and used, | ||||||
11 | including that
manufactured on special order, certified by the | ||||||
12 | purchaser to be used
primarily for production agriculture or | ||||||
13 | State or federal agricultural
programs, including individual | ||||||
14 | replacement parts for the machinery and
equipment, including | ||||||
15 | machinery and equipment purchased for lease,
and including | ||||||
16 | implements of husbandry defined in Section 1-130 of
the | ||||||
17 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
18 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
19 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
20 | but
excluding other motor vehicles required to be registered | ||||||
21 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
22 | hoop houses used for propagating, growing, or
overwintering | ||||||
23 | plants shall be considered farm machinery and equipment under
| ||||||
24 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
25 | shall include units sold
separately from a motor vehicle | ||||||
26 | required to be licensed and units sold mounted
on a motor |
| |||||||
| |||||||
1 | vehicle required to be licensed if the selling price of the | ||||||
2 | tender
is separately stated.
| ||||||
3 | Farm machinery and equipment shall include precision | ||||||
4 | farming equipment
that is
installed or purchased to be | ||||||
5 | installed on farm machinery and equipment
including, but not | ||||||
6 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
7 | or spreaders.
Precision farming equipment includes, but is not | ||||||
8 | limited to,
soil testing sensors, computers, monitors, | ||||||
9 | software, global positioning
and mapping systems, and other | ||||||
10 | such equipment.
| ||||||
11 | Farm machinery and equipment also includes computers, | ||||||
12 | sensors, software, and
related equipment used primarily in the
| ||||||
13 | computer-assisted operation of production agriculture | ||||||
14 | facilities, equipment,
and activities such as, but
not limited | ||||||
15 | to,
the collection, monitoring, and correlation of
animal and | ||||||
16 | crop data for the purpose of
formulating animal diets and | ||||||
17 | agricultural chemicals. This item (7) is exempt
from the | ||||||
18 | provisions of
Section 3-55.
| ||||||
19 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
20 | to or used by an air common
carrier, certified by the carrier | ||||||
21 | to be used for consumption, shipment,
or storage in the conduct | ||||||
22 | of its business as an air common carrier, for
a flight destined | ||||||
23 | for or returning from a location or locations
outside the | ||||||
24 | United States without regard to previous or subsequent domestic
| ||||||
25 | stopovers.
| ||||||
26 | Beginning July 1, 2013, fuel and petroleum products sold to |
| |||||||
| |||||||
1 | or used by an air carrier, certified by the carrier to be used | ||||||
2 | for consumption, shipment, or storage in the conduct of its | ||||||
3 | business as an air common carrier, for a flight that (i) is | ||||||
4 | engaged in foreign trade or is engaged in trade between the | ||||||
5 | United States and any of its possessions and (ii) transports at | ||||||
6 | least one individual or package for hire from the city of | ||||||
7 | origination to the city of final destination on the same | ||||||
8 | aircraft, without regard to a change in the flight number of | ||||||
9 | that aircraft. | ||||||
10 | (9) Proceeds of mandatory service charges separately
| ||||||
11 | stated on customers' bills for the purchase and consumption of | ||||||
12 | food and
beverages, to the extent that the proceeds of the | ||||||
13 | service charge are in fact
turned over as tips or as a | ||||||
14 | substitute for tips to the employees who
participate directly | ||||||
15 | in preparing, serving, hosting or cleaning up the
food or | ||||||
16 | beverage function with respect to which the service charge is | ||||||
17 | imposed.
| ||||||
18 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
19 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
20 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
21 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
22 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
23 | individual replacement part for oil field exploration,
| ||||||
24 | drilling, and production equipment, and (vi) machinery and | ||||||
25 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
26 | required to be registered under the Illinois
Vehicle Code.
|
| |||||||
| |||||||
1 | (11) Photoprocessing machinery and equipment, including | ||||||
2 | repair and
replacement parts, both new and used, including that | ||||||
3 | manufactured on
special order, certified by the purchaser to be | ||||||
4 | used primarily for
photoprocessing, and including | ||||||
5 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
6 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
7 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
8 | including
replacement parts and equipment, and including
| ||||||
9 | equipment
purchased for lease, but excluding motor vehicles | ||||||
10 | required to be registered
under the Illinois Vehicle Code. The | ||||||
11 | changes made to this Section by Public Act 97-767 apply on and | ||||||
12 | after July 1, 2003, but no claim for credit or refund is | ||||||
13 | allowed on or after August 16, 2013 (the effective date of | ||||||
14 | Public Act 98-456)
for such taxes paid during the period | ||||||
15 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
16 | effective date of Public Act 98-456).
| ||||||
17 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
18 | food for human consumption that is to be consumed off the | ||||||
19 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
20 | drinks and food that
has been prepared for immediate | ||||||
21 | consumption) and prescription and
non-prescription medicines, | ||||||
22 | drugs, medical appliances, and insulin, urine
testing | ||||||
23 | materials, syringes, and needles used by diabetics, for human | ||||||
24 | use,
when purchased for use by a person receiving medical | ||||||
25 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
26 | resides in a licensed
long-term care facility, as defined in |
| |||||||
| |||||||
1 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
2 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
3 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
4 | (14) Semen used for artificial insemination of livestock | ||||||
5 | for direct
agricultural production.
| ||||||
6 | (15) Horses, or interests in horses, registered with and | ||||||
7 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
8 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
9 | Horse Association, United States
Trotting Association, or | ||||||
10 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
11 | racing for prizes. This item (15) is exempt from the provisions | ||||||
12 | of Section 3-55, and the exemption provided for under this item | ||||||
13 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
14 | claim for credit or refund is allowed on or after January 1, | ||||||
15 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
16 | paid during the period beginning May 30, 2000 and ending on | ||||||
17 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
18 | (16) Computers and communications equipment utilized for | ||||||
19 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
20 | analysis, or treatment of hospital patients sold to a lessor | ||||||
21 | who leases the
equipment, under a lease of one year or longer | ||||||
22 | executed or in effect at the
time of the purchase, to a
| ||||||
23 | hospital
that has been issued an active tax exemption | ||||||
24 | identification number by the
Department under Section 1g of the | ||||||
25 | Retailers' Occupation Tax Act.
| ||||||
26 | (17) Personal property sold to a lessor who leases the
|
| |||||||
| |||||||
1 | property, under a
lease of one year or longer executed or in | ||||||
2 | effect at the time of the purchase,
to a governmental body
that | ||||||
3 | has been issued an active tax exemption identification number | ||||||
4 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
5 | Tax Act.
| ||||||
6 | (18) Beginning with taxable years ending on or after | ||||||
7 | December
31, 1995
and
ending with taxable years ending on or | ||||||
8 | before December 31, 2004,
personal property that is
donated for | ||||||
9 | disaster relief to be used in a State or federally declared
| ||||||
10 | disaster area in Illinois or bordering Illinois by a | ||||||
11 | manufacturer or retailer
that is registered in this State to a | ||||||
12 | corporation, society, association,
foundation, or institution | ||||||
13 | that has been issued a sales tax exemption
identification | ||||||
14 | number by the Department that assists victims of the disaster
| ||||||
15 | who reside within the declared disaster area.
| ||||||
16 | (19) Beginning with taxable years ending on or after | ||||||
17 | December
31, 1995 and
ending with taxable years ending on or | ||||||
18 | before December 31, 2004, personal
property that is used in the | ||||||
19 | performance of infrastructure repairs in this
State, including | ||||||
20 | but not limited to municipal roads and streets, access roads,
| ||||||
21 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
22 | line extensions,
water distribution and purification | ||||||
23 | facilities, storm water drainage and
retention facilities, and | ||||||
24 | sewage treatment facilities, resulting from a State
or | ||||||
25 | federally declared disaster in Illinois or bordering Illinois | ||||||
26 | when such
repairs are initiated on facilities located in the |
| |||||||
| |||||||
1 | declared disaster area
within 6 months after the disaster.
| ||||||
2 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
3 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
4 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
5 | provisions
of
Section 3-55.
| ||||||
6 | (21) A motor vehicle, as that term is defined in Section | ||||||
7 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
8 | corporation, limited liability
company, society, association, | ||||||
9 | foundation, or institution that is determined by
the Department | ||||||
10 | to be organized and operated exclusively for educational
| ||||||
11 | purposes. For purposes of this exemption, "a corporation, | ||||||
12 | limited liability
company, society, association, foundation, | ||||||
13 | or institution organized and
operated
exclusively for | ||||||
14 | educational purposes" means all tax-supported public schools,
| ||||||
15 | private schools that offer systematic instruction in useful | ||||||
16 | branches of
learning by methods common to public schools and | ||||||
17 | that compare favorably in
their scope and intensity with the | ||||||
18 | course of study presented in tax-supported
schools, and | ||||||
19 | vocational or technical schools or institutes organized and
| ||||||
20 | operated exclusively to provide a course of study of not less | ||||||
21 | than 6 weeks
duration and designed to prepare individuals to | ||||||
22 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
23 | industrial, business, or commercial
occupation.
| ||||||
24 | (22) Beginning January 1, 2000, personal property, | ||||||
25 | including
food,
purchased through fundraising
events for the | ||||||
26 | benefit of
a public or private elementary or
secondary school, |
| |||||||
| |||||||
1 | a group of those schools, or one or more school
districts if | ||||||
2 | the events are
sponsored by an entity recognized by the school | ||||||
3 | district that consists
primarily of volunteers and includes
| ||||||
4 | parents and teachers of the school children. This paragraph | ||||||
5 | does not apply
to fundraising
events (i) for the benefit of | ||||||
6 | private home instruction or (ii)
for which the fundraising | ||||||
7 | entity purchases the personal property sold at
the events from | ||||||
8 | another individual or entity that sold the property for the
| ||||||
9 | purpose of resale by the fundraising entity and that
profits | ||||||
10 | from the sale to the
fundraising entity. This paragraph is | ||||||
11 | exempt
from the provisions
of Section 3-55.
| ||||||
12 | (23) Beginning January 1, 2000
and through December 31, | ||||||
13 | 2001, new or used automatic vending
machines that prepare and | ||||||
14 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
15 | items, and replacement parts for these machines.
Beginning | ||||||
16 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
17 | for
machines used in commercial, coin-operated amusement
and | ||||||
18 | vending business if a use or occupation tax is paid on the | ||||||
19 | gross receipts
derived from
the use of the commercial, | ||||||
20 | coin-operated amusement and vending machines.
This paragraph | ||||||
21 | is exempt from the provisions of Section 3-55.
| ||||||
22 | (24) Beginning
on the effective date of this amendatory Act | ||||||
23 | of the 92nd General Assembly,
computers and communications | ||||||
24 | equipment
utilized for any hospital purpose and equipment used | ||||||
25 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
26 | sold to a lessor who leases the
equipment, under a lease of one |
| |||||||
| |||||||
1 | year or longer executed or in effect at the
time of the | ||||||
2 | purchase, to a hospital that has been issued an active tax
| ||||||
3 | exemption identification number by the Department under | ||||||
4 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
5 | is exempt from the provisions of
Section 3-55.
| ||||||
6 | (25) Beginning
on the effective date of this amendatory Act | ||||||
7 | of the 92nd General Assembly,
personal property sold to a | ||||||
8 | lessor who
leases the property, under a lease of one year or | ||||||
9 | longer executed or in effect
at the time of the purchase, to a | ||||||
10 | governmental body that has been issued an
active tax exemption | ||||||
11 | identification number by the Department under Section 1g
of the | ||||||
12 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
13 | the
provisions of Section 3-55.
| ||||||
14 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
15 | 2016, tangible personal property
purchased
from an Illinois | ||||||
16 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
17 | activities in Illinois who will, upon receipt of the property | ||||||
18 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
19 | the purpose of subsequently
transporting it outside this State | ||||||
20 | for use or consumption thereafter solely
outside this State or | ||||||
21 | (ii) for the purpose of being processed, fabricated, or
| ||||||
22 | manufactured into, attached to, or incorporated into other | ||||||
23 | tangible personal
property to be transported outside this State | ||||||
24 | and thereafter used or consumed
solely outside this State. The | ||||||
25 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
26 | accordance with the Illinois Administrative Procedure Act, |
| |||||||
| |||||||
1 | issue a
permit to any taxpayer in good standing with the | ||||||
2 | Department who is eligible for
the exemption under this | ||||||
3 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
4 | shall authorize the holder, to the extent and
in the manner | ||||||
5 | specified in the rules adopted under this Act, to purchase
| ||||||
6 | tangible personal property from a retailer exempt from the | ||||||
7 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
8 | necessary books and records to
substantiate the use and | ||||||
9 | consumption of all such tangible personal property
outside of | ||||||
10 | the State of Illinois.
| ||||||
11 | (27) Beginning January 1, 2008, tangible personal property | ||||||
12 | used in the construction or maintenance of a community water | ||||||
13 | supply, as defined under Section 3.145 of the Environmental | ||||||
14 | Protection Act, that is operated by a not-for-profit | ||||||
15 | corporation that holds a valid water supply permit issued under | ||||||
16 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
17 | exempt from the provisions of Section 3-55.
| ||||||
18 | (28) Tangible personal property sold to a | ||||||
19 | public-facilities corporation, as described in Section | ||||||
20 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
21 | constructing or furnishing a municipal convention hall, but | ||||||
22 | only if the legal title to the municipal convention hall is | ||||||
23 | transferred to the municipality without any further | ||||||
24 | consideration by or on behalf of the municipality at the time | ||||||
25 | of the completion of the municipal convention hall or upon the | ||||||
26 | retirement or redemption of any bonds or other debt instruments |
| |||||||
| |||||||
1 | issued by the public-facilities corporation in connection with | ||||||
2 | the development of the municipal convention hall. This | ||||||
3 | exemption includes existing public-facilities corporations as | ||||||
4 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
5 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
6 | (29) Beginning January 1, 2010, materials, parts, | ||||||
7 | equipment, components, and furnishings incorporated into or | ||||||
8 | upon an aircraft as part of the modification, refurbishment, | ||||||
9 | completion, replacement, repair, or maintenance of the | ||||||
10 | aircraft. This exemption includes consumable supplies used in | ||||||
11 | the modification, refurbishment, completion, replacement, | ||||||
12 | repair, and maintenance of aircraft, but excludes any | ||||||
13 | materials, parts, equipment, components, and consumable | ||||||
14 | supplies used in the modification, replacement, repair, and | ||||||
15 | maintenance of aircraft engines or power plants, whether such | ||||||
16 | engines or power plants are installed or uninstalled upon any | ||||||
17 | such aircraft. "Consumable supplies" include, but are not | ||||||
18 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
19 | lubricants, cleaning solution, latex gloves, and protective | ||||||
20 | films. This exemption applies only to the transfer of | ||||||
21 | qualifying tangible personal property incident to the | ||||||
22 | modification, refurbishment, completion, replacement, repair, | ||||||
23 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
24 | Agency Certificate and are empowered to operate an approved | ||||||
25 | repair station by the Federal Aviation Administration, (ii) | ||||||
26 | have a Class IV Rating, and (iii) conduct operations in |
| |||||||
| |||||||
1 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
2 | The exemption does not include aircraft operated by a | ||||||
3 | commercial air carrier providing scheduled passenger air | ||||||
4 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
5 | of the Federal Aviation Regulations. The changes made to this | ||||||
6 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
7 | law. | ||||||
8 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
9 | and menstrual cups. | ||||||
10 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
11 | 100-22, eff. 7-6-17.)
| ||||||
12 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
13 | changing Section 2-5 as follows:
| ||||||
14 | (35 ILCS 120/2-5)
| ||||||
15 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
16 | sale of
the following tangible personal property are exempt | ||||||
17 | from the tax imposed
by this Act:
| ||||||
18 | (1) Farm chemicals.
| ||||||
19 | (2) Farm machinery and equipment, both new and used, | ||||||
20 | including that
manufactured on special order, certified by | ||||||
21 | the purchaser to be used
primarily for production | ||||||
22 | agriculture or State or federal agricultural
programs, | ||||||
23 | including individual replacement parts for the machinery | ||||||
24 | and
equipment, including machinery and equipment purchased |
| |||||||
| |||||||
1 | for lease,
and including implements of husbandry defined in | ||||||
2 | Section 1-130 of
the Illinois Vehicle Code, farm machinery | ||||||
3 | and agricultural chemical and
fertilizer spreaders, and | ||||||
4 | nurse wagons required to be registered
under Section 3-809 | ||||||
5 | of the Illinois Vehicle Code,
but
excluding other motor | ||||||
6 | vehicles required to be registered under the Illinois
| ||||||
7 | Vehicle Code.
Horticultural polyhouses or hoop houses used | ||||||
8 | for propagating, growing, or
overwintering plants shall be | ||||||
9 | considered farm machinery and equipment under
this item | ||||||
10 | (2).
Agricultural chemical tender tanks and dry boxes shall | ||||||
11 | include units sold
separately from a motor vehicle required | ||||||
12 | to be licensed and units sold mounted
on a motor vehicle | ||||||
13 | required to be licensed, if the selling price of the tender
| ||||||
14 | is separately stated.
| ||||||
15 | Farm machinery and equipment shall include precision | ||||||
16 | farming equipment
that is
installed or purchased to be | ||||||
17 | installed on farm machinery and equipment
including, but | ||||||
18 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
19 | seeders, or spreaders.
Precision farming equipment | ||||||
20 | includes, but is not limited to,
soil testing sensors, | ||||||
21 | computers, monitors, software, global positioning
and | ||||||
22 | mapping systems, and other such equipment.
| ||||||
23 | Farm machinery and equipment also includes computers, | ||||||
24 | sensors, software, and
related equipment used primarily in | ||||||
25 | the
computer-assisted operation of production agriculture | ||||||
26 | facilities, equipment,
and activities such as, but
not |
| |||||||
| |||||||
1 | limited to,
the collection, monitoring, and correlation of
| ||||||
2 | animal and crop data for the purpose of
formulating animal | ||||||
3 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
4 | from the provisions of
Section 2-70.
| ||||||
5 | (3) Until July 1, 2003, distillation machinery and | ||||||
6 | equipment, sold as a
unit or kit,
assembled or installed by | ||||||
7 | the retailer, certified by the user to be used
only for the | ||||||
8 | production of ethyl alcohol that will be used for | ||||||
9 | consumption
as motor fuel or as a component of motor fuel | ||||||
10 | for the personal use of the
user, and not subject to sale | ||||||
11 | or resale.
| ||||||
12 | (4) Until July 1, 2003 , and beginning again September | ||||||
13 | 1, 2004 through August 30, 2014, and beginning again on | ||||||
14 | January 1, 2019, graphic arts machinery and equipment, | ||||||
15 | including
repair and
replacement parts, both new and used, | ||||||
16 | and including that manufactured on
special order or | ||||||
17 | purchased for lease, certified by the purchaser to be used
| ||||||
18 | primarily for graphic arts production.
Equipment includes | ||||||
19 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
20 | chemicals or chemicals acting as catalysts effect a direct | ||||||
21 | and immediate
change upon a
graphic arts product. Beginning | ||||||
22 | on July 1, 2017, graphic arts machinery and equipment is | ||||||
23 | included in the manufacturing and assembling machinery and | ||||||
24 | equipment exemption under paragraph (14). This item (4) is | ||||||
25 | exempt from the provisions
of
Section 2-70.
| ||||||
26 | (5) A motor vehicle that is used for automobile |
| |||||||
| |||||||
1 | renting, as defined in the Automobile Renting Occupation | ||||||
2 | and Use Tax Act. This paragraph is exempt from
the | ||||||
3 | provisions of Section 2-70.
| ||||||
4 | (6) Personal property sold by a teacher-sponsored | ||||||
5 | student organization
affiliated with an elementary or | ||||||
6 | secondary school located in Illinois.
| ||||||
7 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
8 | selling price of
a passenger car the
sale of which is | ||||||
9 | subject to the Replacement Vehicle Tax.
| ||||||
10 | (8) Personal property sold to an Illinois county fair | ||||||
11 | association for
use in conducting, operating, or promoting | ||||||
12 | the county fair.
| ||||||
13 | (9) Personal property sold to a not-for-profit arts
or | ||||||
14 | cultural organization that establishes, by proof required | ||||||
15 | by the Department
by
rule, that it has received an | ||||||
16 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
17 | Code and that is organized and operated primarily for the
| ||||||
18 | presentation
or support of arts or cultural programming, | ||||||
19 | activities, or services. These
organizations include, but | ||||||
20 | are not limited to, music and dramatic arts
organizations | ||||||
21 | such as symphony orchestras and theatrical groups, arts and
| ||||||
22 | cultural service organizations, local arts councils, | ||||||
23 | visual arts organizations,
and media arts organizations.
| ||||||
24 | On and after July 1, 2001 ( the effective date of Public Act | ||||||
25 | 92-35) this amendatory Act of the 92nd General
Assembly , | ||||||
26 | however, an entity otherwise eligible for this exemption |
| |||||||
| |||||||
1 | shall not
make tax-free purchases unless it has an active | ||||||
2 | identification number issued by
the Department.
| ||||||
3 | (10) Personal property sold by a corporation, society, | ||||||
4 | association,
foundation, institution, or organization, | ||||||
5 | other than a limited liability
company, that is organized | ||||||
6 | and operated as a not-for-profit service enterprise
for the | ||||||
7 | benefit of persons 65 years of age or older if the personal | ||||||
8 | property
was not purchased by the enterprise for the | ||||||
9 | purpose of resale by the
enterprise.
| ||||||
10 | (11) Personal property sold to a governmental body, to | ||||||
11 | a corporation,
society, association, foundation, or | ||||||
12 | institution organized and operated
exclusively for | ||||||
13 | charitable, religious, or educational purposes, or to a
| ||||||
14 | not-for-profit corporation, society, association, | ||||||
15 | foundation, institution,
or organization that has no | ||||||
16 | compensated officers or employees and that is
organized and | ||||||
17 | operated primarily for the recreation of persons 55 years | ||||||
18 | of
age or older. A limited liability company may qualify | ||||||
19 | for the exemption under
this paragraph only if the limited | ||||||
20 | liability company is organized and operated
exclusively | ||||||
21 | for educational purposes. On and after July 1, 1987, | ||||||
22 | however, no
entity otherwise eligible for this exemption | ||||||
23 | shall make tax-free purchases
unless it has an active | ||||||
24 | identification number issued by the Department.
| ||||||
25 | (12) (Blank).
| ||||||
26 | (12-5) On and after July 1, 2003 and through June 30, |
| |||||||
| |||||||
1 | 2004, motor vehicles of the second division
with a gross | ||||||
2 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
3 | to the commercial distribution fee imposed under Section | ||||||
4 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
5 | 2004 and through June 30, 2005, the use in this State of | ||||||
6 | motor vehicles of the second division: (i) with a gross | ||||||
7 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
8 | are subject to the commercial distribution fee imposed | ||||||
9 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
10 | (iii) that are primarily used for commercial purposes. | ||||||
11 | Through June 30, 2005, this
exemption applies to repair and | ||||||
12 | replacement parts added
after the
initial purchase of such | ||||||
13 | a motor vehicle if that motor vehicle is used in a
manner | ||||||
14 | that
would qualify for the rolling stock exemption | ||||||
15 | otherwise provided for in this
Act. For purposes of this | ||||||
16 | paragraph, "used for commercial purposes" means the | ||||||
17 | transportation of persons or property in furtherance of any | ||||||
18 | commercial or industrial enterprise whether for-hire or | ||||||
19 | not.
| ||||||
20 | (13) Proceeds from sales to owners, lessors, or
| ||||||
21 | shippers of
tangible personal property that is utilized by | ||||||
22 | interstate carriers for
hire for use as rolling stock | ||||||
23 | moving in interstate commerce
and equipment operated by a | ||||||
24 | telecommunications provider, licensed as a
common carrier | ||||||
25 | by the Federal Communications Commission, which is
| ||||||
26 | permanently installed in or affixed to aircraft moving in |
| |||||||
| |||||||
1 | interstate commerce.
| ||||||
2 | (14) Machinery and equipment that will be used by the | ||||||
3 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
4 | process of manufacturing or
assembling tangible personal | ||||||
5 | property for wholesale or retail sale or
lease, whether the | ||||||
6 | sale or lease is made directly by the manufacturer or by
| ||||||
7 | some other person, whether the materials used in the | ||||||
8 | process are owned by
the manufacturer or some other person, | ||||||
9 | or whether the sale or lease is made
apart from or as an | ||||||
10 | incident to the seller's engaging in the service
occupation | ||||||
11 | of producing machines, tools, dies, jigs, patterns, | ||||||
12 | gauges, or
other similar items of no commercial value on | ||||||
13 | special order for a particular
purchaser. The exemption | ||||||
14 | provided by this paragraph (14) does not include machinery | ||||||
15 | and equipment used in (i) the generation of electricity for | ||||||
16 | wholesale or retail sale; (ii) the generation or treatment | ||||||
17 | of natural or artificial gas for wholesale or retail sale | ||||||
18 | that is delivered to customers through pipes, pipelines, or | ||||||
19 | mains; or (iii) the treatment of water for wholesale or | ||||||
20 | retail sale that is delivered to customers through pipes, | ||||||
21 | pipelines, or mains. The provisions of Public Act 98-583 | ||||||
22 | are declaratory of existing law as to the meaning and scope | ||||||
23 | of this exemption. Beginning on July 1, 2017, the exemption | ||||||
24 | provided by this paragraph (14) includes, but is not | ||||||
25 | limited to, graphic arts machinery and equipment, as | ||||||
26 | defined in paragraph (4) of this Section.
|
| |||||||
| |||||||
1 | (15) Proceeds of mandatory service charges separately | ||||||
2 | stated on
customers' bills for purchase and consumption of | ||||||
3 | food and beverages, to the
extent that the proceeds of the | ||||||
4 | service charge are in fact turned over as
tips or as a | ||||||
5 | substitute for tips to the employees who participate | ||||||
6 | directly
in preparing, serving, hosting or cleaning up the | ||||||
7 | food or beverage function
with respect to which the service | ||||||
8 | charge is imposed.
| ||||||
9 | (16) Petroleum products sold to a purchaser if the | ||||||
10 | seller
is prohibited by federal law from charging tax to | ||||||
11 | the purchaser.
| ||||||
12 | (17) Tangible personal property sold to a common | ||||||
13 | carrier by rail or
motor that
receives the physical | ||||||
14 | possession of the property in Illinois and that
transports | ||||||
15 | the property, or shares with another common carrier in the
| ||||||
16 | transportation of the property, out of Illinois on a | ||||||
17 | standard uniform bill
of lading showing the seller of the | ||||||
18 | property as the shipper or consignor of
the property to a | ||||||
19 | destination outside Illinois, for use outside Illinois.
| ||||||
20 | (18) Legal tender, currency, medallions, or gold or | ||||||
21 | silver coinage
issued by the State of Illinois, the | ||||||
22 | government of the United States of
America, or the | ||||||
23 | government of any foreign country, and bullion.
| ||||||
24 | (19) Until July 1 , 2003, oil field exploration, | ||||||
25 | drilling, and production
equipment, including
(i) rigs and | ||||||
26 | parts of rigs, rotary rigs, cable tool
rigs, and workover |
| |||||||
| |||||||
1 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
2 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
3 | storage tanks and flow
lines, (v) any individual | ||||||
4 | replacement part for oil field exploration,
drilling, and | ||||||
5 | production equipment, and (vi) machinery and equipment | ||||||
6 | purchased
for lease; but
excluding motor vehicles required | ||||||
7 | to be registered under the Illinois
Vehicle Code.
| ||||||
8 | (20) Photoprocessing machinery and equipment, | ||||||
9 | including repair and
replacement parts, both new and used, | ||||||
10 | including that manufactured on
special order, certified by | ||||||
11 | the purchaser to be used primarily for
photoprocessing, and | ||||||
12 | including photoprocessing machinery and equipment
| ||||||
13 | purchased for lease.
| ||||||
14 | (21) Coal and aggregate exploration, mining, | ||||||
15 | off-highway hauling,
processing,
maintenance, and | ||||||
16 | reclamation equipment, including
replacement parts and | ||||||
17 | equipment, and including
equipment purchased for lease, | ||||||
18 | but excluding motor vehicles required to be
registered | ||||||
19 | under the Illinois Vehicle Code. The changes made to this | ||||||
20 | Section by Public Act 97-767 apply on and after July 1, | ||||||
21 | 2003, but no claim for credit or refund is allowed on or | ||||||
22 | after August 16, 2013 (the effective date of Public Act | ||||||
23 | 98-456)
for such taxes paid during the period beginning | ||||||
24 | July 1, 2003 and ending on August 16, 2013 (the effective | ||||||
25 | date of Public Act 98-456).
| ||||||
26 | (22) Until June 30, 2013, fuel and petroleum products |
| |||||||
| |||||||
1 | sold to or used by an air carrier,
certified by the carrier | ||||||
2 | to be used for consumption, shipment, or storage
in the | ||||||
3 | conduct of its business as an air common carrier, for a | ||||||
4 | flight
destined for or returning from a location or | ||||||
5 | locations
outside the United States without regard to | ||||||
6 | previous or subsequent domestic
stopovers.
| ||||||
7 | Beginning July 1, 2013, fuel and petroleum products | ||||||
8 | sold to or used by an air carrier, certified by the carrier | ||||||
9 | to be used for consumption, shipment, or storage in the | ||||||
10 | conduct of its business as an air common carrier, for a | ||||||
11 | flight that (i) is engaged in foreign trade or is engaged | ||||||
12 | in trade between the United States and any of its | ||||||
13 | possessions and (ii) transports at least one individual or | ||||||
14 | package for hire from the city of origination to the city | ||||||
15 | of final destination on the same aircraft, without regard | ||||||
16 | to a change in the flight number of that aircraft. | ||||||
17 | (23) A transaction in which the purchase order is | ||||||
18 | received by a florist
who is located outside Illinois, but | ||||||
19 | who has a florist located in Illinois
deliver the property | ||||||
20 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
21 | (24) Fuel consumed or used in the operation of ships, | ||||||
22 | barges, or vessels
that are used primarily in or for the | ||||||
23 | transportation of property or the
conveyance of persons for | ||||||
24 | hire on rivers bordering on this State if the
fuel is | ||||||
25 | delivered by the seller to the purchaser's barge, ship, or | ||||||
26 | vessel
while it is afloat upon that bordering river.
|
| |||||||
| |||||||
1 | (25) Except as provided in item (25-5) of this Section, | ||||||
2 | a
motor vehicle sold in this State to a nonresident even | ||||||
3 | though the
motor vehicle is delivered to the nonresident in | ||||||
4 | this State, if the motor
vehicle is not to be titled in | ||||||
5 | this State, and if a drive-away permit
is issued to the | ||||||
6 | motor vehicle as provided in Section 3-603 of the Illinois
| ||||||
7 | Vehicle Code or if the nonresident purchaser has vehicle | ||||||
8 | registration
plates to transfer to the motor vehicle upon | ||||||
9 | returning to his or her home
state. The issuance of the | ||||||
10 | drive-away permit or having
the
out-of-state registration | ||||||
11 | plates to be transferred is prima facie evidence
that the | ||||||
12 | motor vehicle will not be titled in this State.
| ||||||
13 | (25-5) The exemption under item (25) does not apply if | ||||||
14 | the state in which the motor vehicle will be titled does | ||||||
15 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
16 | and delivered in that state to an Illinois resident but | ||||||
17 | titled in Illinois. The tax collected under this Act on the | ||||||
18 | sale of a motor vehicle in this State to a resident of | ||||||
19 | another state that does not allow a reciprocal exemption | ||||||
20 | shall be imposed at a rate equal to the state's rate of tax | ||||||
21 | on taxable property in the state in which the purchaser is | ||||||
22 | a resident, except that the tax shall not exceed the tax | ||||||
23 | that would otherwise be imposed under this Act. At the time | ||||||
24 | of the sale, the purchaser shall execute a statement, | ||||||
25 | signed under penalty of perjury, of his or her intent to | ||||||
26 | title the vehicle in the state in which the purchaser is a |
| |||||||
| |||||||
1 | resident within 30 days after the sale and of the fact of | ||||||
2 | the payment to the State of Illinois of tax in an amount | ||||||
3 | equivalent to the state's rate of tax on taxable property | ||||||
4 | in his or her state of residence and shall submit the | ||||||
5 | statement to the appropriate tax collection agency in his | ||||||
6 | or her state of residence. In addition, the retailer must | ||||||
7 | retain a signed copy of the statement in his or her | ||||||
8 | records. Nothing in this item shall be construed to require | ||||||
9 | the removal of the vehicle from this state following the | ||||||
10 | filing of an intent to title the vehicle in the purchaser's | ||||||
11 | state of residence if the purchaser titles the vehicle in | ||||||
12 | his or her state of residence within 30 days after the date | ||||||
13 | of sale. The tax collected under this Act in accordance | ||||||
14 | with this item (25-5) shall be proportionately distributed | ||||||
15 | as if the tax were collected at the 6.25% general rate | ||||||
16 | imposed under this Act.
| ||||||
17 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
18 | under this Act on the sale of an aircraft, as defined in | ||||||
19 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
20 | following conditions are met: | ||||||
21 | (1) the aircraft leaves this State within 15 days | ||||||
22 | after the later of either the issuance of the final | ||||||
23 | billing for the sale of the aircraft, or the authorized | ||||||
24 | approval for return to service, completion of the | ||||||
25 | maintenance record entry, and completion of the test | ||||||
26 | flight and ground test for inspection, as required by |
| |||||||
| |||||||
1 | 14 C.F.R. 91.407; | ||||||
2 | (2) the aircraft is not based or registered in this | ||||||
3 | State after the sale of the aircraft; and | ||||||
4 | (3) the seller retains in his or her books and | ||||||
5 | records and provides to the Department a signed and | ||||||
6 | dated certification from the purchaser, on a form | ||||||
7 | prescribed by the Department, certifying that the | ||||||
8 | requirements of this item (25-7) are met. The | ||||||
9 | certificate must also include the name and address of | ||||||
10 | the purchaser, the address of the location where the | ||||||
11 | aircraft is to be titled or registered, the address of | ||||||
12 | the primary physical location of the aircraft, and | ||||||
13 | other information that the Department may reasonably | ||||||
14 | require. | ||||||
15 | For purposes of this item (25-7): | ||||||
16 | "Based in this State" means hangared, stored, or | ||||||
17 | otherwise used, excluding post-sale customizations as | ||||||
18 | defined in this Section, for 10 or more days in each | ||||||
19 | 12-month period immediately following the date of the sale | ||||||
20 | of the aircraft. | ||||||
21 | "Registered in this State" means an aircraft | ||||||
22 | registered with the Department of Transportation, | ||||||
23 | Aeronautics Division, or titled or registered with the | ||||||
24 | Federal Aviation Administration to an address located in | ||||||
25 | this State. | ||||||
26 | This paragraph (25-7) is exempt from the provisions
of
|
| |||||||
| |||||||
1 | Section 2-70.
| ||||||
2 | (26) Semen used for artificial insemination of | ||||||
3 | livestock for direct
agricultural production.
| ||||||
4 | (27) Horses, or interests in horses, registered with | ||||||
5 | and meeting the
requirements of any of the
Arabian Horse | ||||||
6 | Club Registry of America, Appaloosa Horse Club, American | ||||||
7 | Quarter
Horse Association, United States
Trotting | ||||||
8 | Association, or Jockey Club, as appropriate, used for
| ||||||
9 | purposes of breeding or racing for prizes. This item (27) | ||||||
10 | is exempt from the provisions of Section 2-70, and the | ||||||
11 | exemption provided for under this item (27) applies for all | ||||||
12 | periods beginning May 30, 1995, but no claim for credit or | ||||||
13 | refund is allowed on or after January 1, 2008 (the | ||||||
14 | effective date of Public Act 95-88)
for such taxes paid | ||||||
15 | during the period beginning May 30, 2000 and ending on | ||||||
16 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
17 | (28) Computers and communications equipment utilized | ||||||
18 | for any
hospital
purpose
and equipment used in the | ||||||
19 | diagnosis,
analysis, or treatment of hospital patients | ||||||
20 | sold to a lessor who leases the
equipment, under a lease of | ||||||
21 | one year or longer executed or in effect at the
time of the | ||||||
22 | purchase, to a
hospital
that has been issued an active tax | ||||||
23 | exemption identification number by the
Department under | ||||||
24 | Section 1g of this Act.
| ||||||
25 | (29) Personal property sold to a lessor who leases the
| ||||||
26 | property, under a
lease of one year or longer executed or |
| |||||||
| |||||||
1 | in effect at the time of the purchase,
to a governmental | ||||||
2 | body
that has been issued an active tax exemption | ||||||
3 | identification number by the
Department under Section 1g of | ||||||
4 | this Act.
| ||||||
5 | (30) Beginning with taxable years ending on or after | ||||||
6 | December
31, 1995
and
ending with taxable years ending on | ||||||
7 | or before December 31, 2004,
personal property that is
| ||||||
8 | donated for disaster relief to be used in a State or | ||||||
9 | federally declared
disaster area in Illinois or bordering | ||||||
10 | Illinois by a manufacturer or retailer
that is registered | ||||||
11 | in this State to a corporation, society, association,
| ||||||
12 | foundation, or institution that has been issued a sales tax | ||||||
13 | exemption
identification number by the Department that | ||||||
14 | assists victims of the disaster
who reside within the | ||||||
15 | declared disaster area.
| ||||||
16 | (31) Beginning with taxable years ending on or after | ||||||
17 | December
31, 1995 and
ending with taxable years ending on | ||||||
18 | or before December 31, 2004, personal
property that is used | ||||||
19 | in the performance of infrastructure repairs in this
State, | ||||||
20 | including but not limited to municipal roads and streets, | ||||||
21 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
22 | water and sewer line extensions,
water distribution and | ||||||
23 | purification facilities, storm water drainage and
| ||||||
24 | retention facilities, and sewage treatment facilities, | ||||||
25 | resulting from a State
or federally declared disaster in | ||||||
26 | Illinois or bordering Illinois when such
repairs are |
| |||||||
| |||||||
1 | initiated on facilities located in the declared disaster | ||||||
2 | area
within 6 months after the disaster.
| ||||||
3 | (32) Beginning July 1, 1999, game or game birds sold at | ||||||
4 | a "game breeding
and
hunting preserve area" as that term is | ||||||
5 | used
in the
Wildlife Code. This paragraph is exempt from | ||||||
6 | the provisions
of
Section 2-70.
| ||||||
7 | (33) A motor vehicle, as that term is defined in | ||||||
8 | Section 1-146
of the
Illinois Vehicle Code, that is donated | ||||||
9 | to a corporation, limited liability
company, society, | ||||||
10 | association, foundation, or institution that is determined | ||||||
11 | by
the Department to be organized and operated exclusively | ||||||
12 | for educational
purposes. For purposes of this exemption, | ||||||
13 | "a corporation, limited liability
company, society, | ||||||
14 | association, foundation, or institution organized and
| ||||||
15 | operated
exclusively for educational purposes" means all | ||||||
16 | tax-supported public schools,
private schools that offer | ||||||
17 | systematic instruction in useful branches of
learning by | ||||||
18 | methods common to public schools and that compare favorably | ||||||
19 | in
their scope and intensity with the course of study | ||||||
20 | presented in tax-supported
schools, and vocational or | ||||||
21 | technical schools or institutes organized and
operated | ||||||
22 | exclusively to provide a course of study of not less than 6 | ||||||
23 | weeks
duration and designed to prepare individuals to | ||||||
24 | follow a trade or to pursue a
manual, technical, | ||||||
25 | mechanical, industrial, business, or commercial
| ||||||
26 | occupation.
|
| |||||||
| |||||||
1 | (34) Beginning January 1, 2000, personal property, | ||||||
2 | including food, purchased
through fundraising events for | ||||||
3 | the benefit of a public or private elementary or
secondary | ||||||
4 | school, a group of those schools, or one or more school | ||||||
5 | districts if
the events are sponsored by an entity | ||||||
6 | recognized by the school district that
consists primarily | ||||||
7 | of volunteers and includes parents and teachers of the
| ||||||
8 | school children. This paragraph does not apply to | ||||||
9 | fundraising events (i) for
the benefit of private home | ||||||
10 | instruction or (ii) for which the fundraising
entity | ||||||
11 | purchases the personal property sold at the events from | ||||||
12 | another
individual or entity that sold the property for the | ||||||
13 | purpose of resale by the
fundraising entity and that | ||||||
14 | profits from the sale to the fundraising entity.
This | ||||||
15 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
16 | (35) Beginning January 1, 2000 and through December 31, | ||||||
17 | 2001, new or used
automatic vending machines that prepare | ||||||
18 | and serve hot food and beverages,
including coffee, soup, | ||||||
19 | and other items, and replacement parts for these
machines. | ||||||
20 | Beginning January 1, 2002 and through June 30, 2003, | ||||||
21 | machines
and parts for machines used in
commercial, | ||||||
22 | coin-operated amusement and vending business if a use or | ||||||
23 | occupation
tax is paid on the gross receipts derived from | ||||||
24 | the use of the commercial,
coin-operated amusement and | ||||||
25 | vending machines. This paragraph is exempt from
the | ||||||
26 | provisions of Section 2-70.
|
| |||||||
| |||||||
1 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
2 | 2016, food for human consumption that is to be consumed off
| ||||||
3 | the premises where it is sold (other than alcoholic | ||||||
4 | beverages, soft drinks,
and food that has been prepared for | ||||||
5 | immediate consumption) and prescription
and | ||||||
6 | nonprescription medicines, drugs, medical appliances, and | ||||||
7 | insulin, urine
testing materials, syringes, and needles | ||||||
8 | used by diabetics, for human use, when
purchased for use by | ||||||
9 | a person receiving medical assistance under Article V of
| ||||||
10 | the Illinois Public Aid Code who resides in a licensed | ||||||
11 | long-term care facility,
as defined in the Nursing Home | ||||||
12 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
13 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
14 | Mental Health Rehabilitation Act of 2013.
| ||||||
15 | (36) Beginning August 2, 2001, computers and | ||||||
16 | communications equipment
utilized for any hospital purpose | ||||||
17 | and equipment used in the diagnosis,
analysis, or treatment | ||||||
18 | of hospital patients sold to a lessor who leases the
| ||||||
19 | equipment, under a lease of one year or longer executed or | ||||||
20 | in effect at the
time of the purchase, to a hospital that | ||||||
21 | has been issued an active tax
exemption identification | ||||||
22 | number by the Department under Section 1g of this Act.
This | ||||||
23 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
24 | (37) Beginning August 2, 2001, personal property sold | ||||||
25 | to a lessor who
leases the property, under a lease of one | ||||||
26 | year or longer executed or in effect
at the time of the |
| |||||||
| |||||||
1 | purchase, to a governmental body that has been issued an
| ||||||
2 | active tax exemption identification number by the | ||||||
3 | Department under Section 1g
of this Act. This paragraph is | ||||||
4 | exempt from the provisions of Section 2-70.
| ||||||
5 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
6 | 2016, tangible personal property purchased
from an | ||||||
7 | Illinois retailer by a taxpayer engaged in centralized | ||||||
8 | purchasing
activities in Illinois who will, upon receipt of | ||||||
9 | the property in Illinois,
temporarily store the property in | ||||||
10 | Illinois (i) for the purpose of subsequently
transporting | ||||||
11 | it outside this State for use or consumption thereafter | ||||||
12 | solely
outside this State or (ii) for the purpose of being | ||||||
13 | processed, fabricated, or
manufactured into, attached to, | ||||||
14 | or incorporated into other tangible personal
property to be | ||||||
15 | transported outside this State and thereafter used or | ||||||
16 | consumed
solely outside this State. The Director of Revenue | ||||||
17 | shall, pursuant to rules
adopted in accordance with the | ||||||
18 | Illinois Administrative Procedure Act, issue a
permit to | ||||||
19 | any taxpayer in good standing with the Department who is | ||||||
20 | eligible for
the exemption under this paragraph (38). The | ||||||
21 | permit issued under
this paragraph (38) shall authorize the | ||||||
22 | holder, to the extent and
in the manner specified in the | ||||||
23 | rules adopted under this Act, to purchase
tangible personal | ||||||
24 | property from a retailer exempt from the taxes imposed by
| ||||||
25 | this Act. Taxpayers shall maintain all necessary books and | ||||||
26 | records to
substantiate the use and consumption of all such |
| |||||||
| |||||||
1 | tangible personal property
outside of the State of | ||||||
2 | Illinois.
| ||||||
3 | (39) Beginning January 1, 2008, tangible personal | ||||||
4 | property used in the construction or maintenance of a | ||||||
5 | community water supply, as defined under Section 3.145 of | ||||||
6 | the Environmental Protection Act, that is operated by a | ||||||
7 | not-for-profit corporation that holds a valid water supply | ||||||
8 | permit issued under Title IV of the Environmental | ||||||
9 | Protection Act. This paragraph is exempt from the | ||||||
10 | provisions of Section 2-70.
| ||||||
11 | (40) Beginning January 1, 2010, materials, parts, | ||||||
12 | equipment, components, and furnishings incorporated into | ||||||
13 | or upon an aircraft as part of the modification, | ||||||
14 | refurbishment, completion, replacement, repair, or | ||||||
15 | maintenance of the aircraft. This exemption includes | ||||||
16 | consumable supplies used in the modification, | ||||||
17 | refurbishment, completion, replacement, repair, and | ||||||
18 | maintenance of aircraft, but excludes any materials, | ||||||
19 | parts, equipment, components, and consumable supplies used | ||||||
20 | in the modification, replacement, repair, and maintenance | ||||||
21 | of aircraft engines or power plants, whether such engines | ||||||
22 | or power plants are installed or uninstalled upon any such | ||||||
23 | aircraft. "Consumable supplies" include, but are not | ||||||
24 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
25 | lubricants, cleaning solution, latex gloves, and | ||||||
26 | protective films. This exemption applies only to the sale |
| |||||||
| |||||||
1 | of qualifying tangible personal property to persons who | ||||||
2 | modify, refurbish, complete, replace, or maintain an | ||||||
3 | aircraft and who (i) hold an Air Agency Certificate and are | ||||||
4 | empowered to operate an approved repair station by the | ||||||
5 | Federal Aviation Administration, (ii) have a Class IV | ||||||
6 | Rating, and (iii) conduct operations in accordance with | ||||||
7 | Part 145 of the Federal Aviation Regulations. The exemption | ||||||
8 | does not include aircraft operated by a commercial air | ||||||
9 | carrier providing scheduled passenger air service pursuant | ||||||
10 | to authority issued under Part 121 or Part 129 of the | ||||||
11 | Federal Aviation Regulations. The changes made to this | ||||||
12 | paragraph (40) by Public Act 98-534 are declarative of | ||||||
13 | existing law. | ||||||
14 | (41) Tangible personal property sold to a | ||||||
15 | public-facilities corporation, as described in Section | ||||||
16 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
17 | constructing or furnishing a municipal convention hall, | ||||||
18 | but only if the legal title to the municipal convention | ||||||
19 | hall is transferred to the municipality without any further | ||||||
20 | consideration by or on behalf of the municipality at the | ||||||
21 | time of the completion of the municipal convention hall or | ||||||
22 | upon the retirement or redemption of any bonds or other | ||||||
23 | debt instruments issued by the public-facilities | ||||||
24 | corporation in connection with the development of the | ||||||
25 | municipal convention hall. This exemption includes | ||||||
26 | existing public-facilities corporations as provided in |
| |||||||
| |||||||
1 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
2 | paragraph is exempt from the provisions of Section 2-70. | ||||||
3 | (42) Beginning January 1, 2017, menstrual pads, | ||||||
4 | tampons, and menstrual cups. | ||||||
5 | (43) Merchandise that is subject to the Rental Purchase | ||||||
6 | Agreement Occupation and Use Tax. The purchaser must | ||||||
7 | certify that the item is purchased to be rented subject to | ||||||
8 | a rental purchase agreement, as defined in the Rental | ||||||
9 | Purchase Agreement Act, and provide proof of registration | ||||||
10 | under the Rental Purchase Agreement Occupation and Use Tax | ||||||
11 | Act. This paragraph is exempt from the provisions of | ||||||
12 | Section 2-70. | ||||||
13 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
14 | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | ||||||
15 | 1-1-18; revised 9-26-17.)
| ||||||
16 | Section 99. Effective date. This Act takes effect upon | ||||||
17 | becoming law.
|