Bill Text: IL SB1691 | 2009-2010 | 96th General Assembly | Enrolled
Bill Title: Amends the Senior Citizens Real Estate Tax Deferral Act. Increases the income limitation under the Act to $55,000 (instead of $50,000) beginning in 2009. Amends the Property Tax Code. Provides that the maximum income limitation under the Senior Citizens Assessment Freeze Homestead Exemption is the income limitation set forth in the Senior Citizens Real Estate Tax Deferral Act. Effective immediately.
Spectrum: Slight Partisan Bill (Republican 20-8)
Status: (Passed) 2009-07-31 - Public Act . . . . . . . . . 96-0116 [SB1691 Detail]
Download: Illinois-2009-SB1691-Enrolled.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 Illinois Income Tax Act is amended by | ||||||
5 | changing Section 201 as follows:
| ||||||
6 | (35 ILCS 5/201) (from Ch. 120, par. 2-201)
| ||||||
7 | Sec. 201. Tax Imposed.
| ||||||
8 | (a) In general. A tax measured by net income is hereby | ||||||
9 | imposed on every
individual, corporation, trust and estate for | ||||||
10 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
11 | of earning or receiving income in or
as a resident of this | ||||||
12 | State. Such tax shall be in addition to all other
occupation or | ||||||
13 | privilege taxes imposed by this State or by any municipal
| ||||||
14 | corporation or political subdivision thereof.
| ||||||
15 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
16 | Section shall be
determined as follows, except as adjusted by | ||||||
17 | subsection (d-1):
| ||||||
18 | (1) In the case of an individual, trust or estate, for | ||||||
19 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
20 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
21 | year.
| ||||||
22 | (2) In the case of an individual, trust or estate, for | ||||||
23 | taxable years
beginning prior to July 1, 1989 and ending |
| |||||||
| |||||||
1 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
2 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
3 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
4 | 3% of the
taxpayer's net income for the period after June | ||||||
5 | 30, 1989, as calculated
under Section 202.3.
| ||||||
6 | (3) In the case of an individual, trust or estate, for | ||||||
7 | taxable years
beginning after June 30, 1989, an amount | ||||||
8 | equal to 3% of the taxpayer's net
income for the taxable | ||||||
9 | year.
| ||||||
10 | (4) (Blank).
| ||||||
11 | (5) (Blank).
| ||||||
12 | (6) In the case of a corporation, for taxable years
| ||||||
13 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
14 | taxpayer's net income for the taxable year.
| ||||||
15 | (7) In the case of a corporation, for taxable years | ||||||
16 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
17 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
18 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
19 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
20 | taxpayer's net
income for the period after June 30, 1989, | ||||||
21 | as calculated under Section
202.3.
| ||||||
22 | (8) In the case of a corporation, for taxable years | ||||||
23 | beginning after
June 30, 1989, an amount equal to 4.8% of | ||||||
24 | the taxpayer's net income for the
taxable year.
| ||||||
25 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
26 | Beginning on July 1, 1979 and thereafter, in addition to such |
| |||||||
| |||||||
1 | income
tax, there is also hereby imposed the Personal Property | ||||||
2 | Tax Replacement
Income Tax measured by net income on every | ||||||
3 | corporation (including Subchapter
S corporations), partnership | ||||||
4 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
5 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
6 | income in or as a resident of this State. The Personal Property
| ||||||
7 | Tax Replacement Income Tax shall be in addition to the income | ||||||
8 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
9 | addition to all other
occupation or privilege taxes imposed by | ||||||
10 | this State or by any municipal
corporation or political | ||||||
11 | subdivision thereof.
| ||||||
12 | (d) Additional Personal Property Tax Replacement Income | ||||||
13 | Tax Rates.
The personal property tax replacement income tax | ||||||
14 | imposed by this subsection
and subsection (c) of this Section | ||||||
15 | in the case of a corporation, other
than a Subchapter S | ||||||
16 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
17 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
18 | income for the taxable year, except that
beginning on January | ||||||
19 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
20 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
21 | partnership, trust or a Subchapter S corporation shall be an | ||||||
22 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
23 | for the taxable year.
| ||||||
24 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
25 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
26 | Illinois Insurance Code,
whose state or country of domicile |
| |||||||
| |||||||
1 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
2 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
3 | are 50% or more of its total insurance
premiums as determined | ||||||
4 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
5 | that for purposes of this determination premiums from | ||||||
6 | reinsurance do
not include premiums from inter-affiliate | ||||||
7 | reinsurance arrangements),
beginning with taxable years ending | ||||||
8 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
9 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
10 | increased) to the rate at which the total amount of tax imposed | ||||||
11 | under this Act,
net of all credits allowed under this Act, | ||||||
12 | shall equal (i) the total amount of
tax that would be imposed | ||||||
13 | on the foreign insurer's net income allocable to
Illinois for | ||||||
14 | the taxable year by such foreign insurer's state or country of
| ||||||
15 | domicile if that net income were subject to all income taxes | ||||||
16 | and taxes
measured by net income imposed by such foreign | ||||||
17 | insurer's state or country of
domicile, net of all credits | ||||||
18 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
19 | income by the foreign insurer's state of domicile.
For the | ||||||
20 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
21 | a
mutual insurer under common management.
| ||||||
22 | (1) For the purposes of subsection (d-1), in no event | ||||||
23 | shall the sum of the
rates of tax imposed by subsections | ||||||
24 | (b) and (d) be reduced below the rate at
which the sum of:
| ||||||
25 | (A) the total amount of tax imposed on such foreign | ||||||
26 | insurer under
this Act for a taxable year, net of all |
| |||||||
| |||||||
1 | credits allowed under this Act, plus
| ||||||
2 | (B) the privilege tax imposed by Section 409 of the | ||||||
3 | Illinois Insurance
Code, the fire insurance company | ||||||
4 | tax imposed by Section 12 of the Fire
Investigation | ||||||
5 | Act, and the fire department taxes imposed under | ||||||
6 | Section 11-10-1
of the Illinois Municipal Code,
| ||||||
7 | equals 1.25% for taxable years ending prior to December 31, | ||||||
8 | 2003, or
1.75% for taxable years ending on or after | ||||||
9 | December 31, 2003, of the net
taxable premiums written for | ||||||
10 | the taxable year,
as described by subsection (1) of Section | ||||||
11 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
12 | no event increase the rates imposed under subsections
(b) | ||||||
13 | and (d).
| ||||||
14 | (2) Any reduction in the rates of tax imposed by this | ||||||
15 | subsection shall be
applied first against the rates imposed | ||||||
16 | by subsection (b) and only after the
tax imposed by | ||||||
17 | subsection (a) net of all credits allowed under this | ||||||
18 | Section
other than the credit allowed under subsection (i) | ||||||
19 | has been reduced to zero,
against the rates imposed by | ||||||
20 | subsection (d).
| ||||||
21 | This subsection (d-1) is exempt from the provisions of | ||||||
22 | Section 250.
| ||||||
23 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
24 | against the Personal Property Tax Replacement Income Tax for
| ||||||
25 | investment in qualified property.
| ||||||
26 | (1) A taxpayer shall be allowed a credit equal to .5% |
| |||||||
| |||||||
1 | of
the basis of qualified property placed in service during | ||||||
2 | the taxable year,
provided such property is placed in | ||||||
3 | service on or after
July 1, 1984. There shall be allowed an | ||||||
4 | additional credit equal
to .5% of the basis of qualified | ||||||
5 | property placed in service during the
taxable year, | ||||||
6 | provided such property is placed in service on or
after | ||||||
7 | July 1, 1986, and the taxpayer's base employment
within | ||||||
8 | Illinois has increased by 1% or more over the preceding | ||||||
9 | year as
determined by the taxpayer's employment records | ||||||
10 | filed with the
Illinois Department of Employment Security. | ||||||
11 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
12 | met the 1% growth in base employment for
the first year in | ||||||
13 | which they file employment records with the Illinois
| ||||||
14 | Department of Employment Security. The provisions added to | ||||||
15 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
16 | Act 87-895) shall be
construed as declaratory of existing | ||||||
17 | law and not as a new enactment. If,
in any year, the | ||||||
18 | increase in base employment within Illinois over the
| ||||||
19 | preceding year is less than 1%, the additional credit shall | ||||||
20 | be limited to that
percentage times a fraction, the | ||||||
21 | numerator of which is .5% and the denominator
of which is | ||||||
22 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
23 | not be
allowed to the extent that it would reduce a | ||||||
24 | taxpayer's liability in any tax
year below zero, nor may | ||||||
25 | any credit for qualified property be allowed for any
year | ||||||
26 | other than the year in which the property was placed in |
| |||||||
| |||||||
1 | service in
Illinois. For tax years ending on or after | ||||||
2 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
3 | credit shall be allowed for the tax year in
which the | ||||||
4 | property is placed in service, or, if the amount of the | ||||||
5 | credit
exceeds the tax liability for that year, whether it | ||||||
6 | exceeds the original
liability or the liability as later | ||||||
7 | amended, such excess may be carried
forward and applied to | ||||||
8 | the tax liability of the 5 taxable years following
the | ||||||
9 | excess credit years if the taxpayer (i) makes investments | ||||||
10 | which cause
the creation of a minimum of 2,000 full-time | ||||||
11 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
12 | enterprise zone established pursuant to the Illinois
| ||||||
13 | Enterprise Zone Act and (iii) is certified by the | ||||||
14 | Department of Commerce
and Community Affairs (now | ||||||
15 | Department of Commerce and Economic Opportunity) as | ||||||
16 | complying with the requirements specified in
clause (i) and | ||||||
17 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
18 | Community Affairs (now Department of Commerce and Economic | ||||||
19 | Opportunity) shall notify the Department of Revenue of all | ||||||
20 | such
certifications immediately. For tax years ending | ||||||
21 | after December 31, 1988,
the credit shall be allowed for | ||||||
22 | the tax year in which the property is
placed in service, | ||||||
23 | or, if the amount of the credit exceeds the tax
liability | ||||||
24 | for that year, whether it exceeds the original liability or | ||||||
25 | the
liability as later amended, such excess may be carried | ||||||
26 | forward and applied
to the tax liability of the 5 taxable |
| |||||||
| |||||||
1 | years following the excess credit
years. The credit shall | ||||||
2 | be applied to the earliest year for which there is
a | ||||||
3 | liability. If there is credit from more than one tax year | ||||||
4 | that is
available to offset a liability, earlier credit | ||||||
5 | shall be applied first.
| ||||||
6 | (2) The term "qualified property" means property | ||||||
7 | which:
| ||||||
8 | (A) is tangible, whether new or used, including | ||||||
9 | buildings and structural
components of buildings and | ||||||
10 | signs that are real property, but not including
land or | ||||||
11 | improvements to real property that are not a structural | ||||||
12 | component of a
building such as landscaping, sewer | ||||||
13 | lines, local access roads, fencing, parking
lots, and | ||||||
14 | other appurtenances;
| ||||||
15 | (B) is depreciable pursuant to Section 167 of the | ||||||
16 | Internal Revenue Code,
except that "3-year property" | ||||||
17 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
18 | eligible for the credit provided by this subsection | ||||||
19 | (e);
| ||||||
20 | (C) is acquired by purchase as defined in Section | ||||||
21 | 179(d) of
the Internal Revenue Code;
| ||||||
22 | (D) is used in Illinois by a taxpayer who is | ||||||
23 | primarily engaged in
manufacturing, or in mining coal | ||||||
24 | or fluorite, or in retailing, or was placed in service | ||||||
25 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
26 | Zone established pursuant to the River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone Act; and
| ||||||
2 | (E) has not previously been used in Illinois in | ||||||
3 | such a manner and by
such a person as would qualify for | ||||||
4 | the credit provided by this subsection
(e) or | ||||||
5 | subsection (f).
| ||||||
6 | (3) For purposes of this subsection (e), | ||||||
7 | "manufacturing" means
the material staging and production | ||||||
8 | of tangible personal property by
procedures commonly | ||||||
9 | regarded as manufacturing, processing, fabrication, or
| ||||||
10 | assembling which changes some existing material into new | ||||||
11 | shapes, new
qualities, or new combinations. For purposes of | ||||||
12 | this subsection
(e) the term "mining" shall have the same | ||||||
13 | meaning as the term "mining" in
Section 613(c) of the | ||||||
14 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
15 | the term "retailing" means the sale of tangible personal | ||||||
16 | property or
services rendered in conjunction with the sale | ||||||
17 | of tangible consumer goods
or commodities.
| ||||||
18 | (4) The basis of qualified property shall be the basis
| ||||||
19 | used to compute the depreciation deduction for federal | ||||||
20 | income tax purposes.
| ||||||
21 | (5) If the basis of the property for federal income tax | ||||||
22 | depreciation
purposes is increased after it has been placed | ||||||
23 | in service in Illinois by
the taxpayer, the amount of such | ||||||
24 | increase shall be deemed property placed
in service on the | ||||||
25 | date of such increase in basis.
| ||||||
26 | (6) The term "placed in service" shall have the same
|
| |||||||
| |||||||
1 | meaning as under Section 46 of the Internal Revenue Code.
| ||||||
2 | (7) If during any taxable year, any property ceases to
| ||||||
3 | be qualified property in the hands of the taxpayer within | ||||||
4 | 48 months after
being placed in service, or the situs of | ||||||
5 | any qualified property is
moved outside Illinois within 48 | ||||||
6 | months after being placed in service, the
Personal Property | ||||||
7 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
8 | increased. Such increase shall be determined by (i) | ||||||
9 | recomputing the
investment credit which would have been | ||||||
10 | allowed for the year in which
credit for such property was | ||||||
11 | originally allowed by eliminating such
property from such | ||||||
12 | computation and, (ii) subtracting such recomputed credit
| ||||||
13 | from the amount of credit previously allowed. For the | ||||||
14 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
15 | qualified property resulting
from a redetermination of the | ||||||
16 | purchase price shall be deemed a disposition
of qualified | ||||||
17 | property to the extent of such reduction.
| ||||||
18 | (8) Unless the investment credit is extended by law, | ||||||
19 | the
basis of qualified property shall not include costs | ||||||
20 | incurred after
December 31, 2013 2008 , except for costs | ||||||
21 | incurred pursuant to a binding
contract entered into on or | ||||||
22 | before December 31, 2013 2008 .
| ||||||
23 | (9) Each taxable year ending before December 31, 2000, | ||||||
24 | a partnership may
elect to pass through to its
partners the | ||||||
25 | credits to which the partnership is entitled under this | ||||||
26 | subsection
(e) for the taxable year. A partner may use the |
| |||||||
| |||||||
1 | credit allocated to him or her
under this paragraph only | ||||||
2 | against the tax imposed in subsections (c) and (d) of
this | ||||||
3 | Section. If the partnership makes that election, those | ||||||
4 | credits shall be
allocated among the partners in the | ||||||
5 | partnership in accordance with the rules
set forth in | ||||||
6 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
7 | promulgated under that Section, and the allocated amount of | ||||||
8 | the credits shall
be allowed to the partners for that | ||||||
9 | taxable year. The partnership shall make
this election on | ||||||
10 | its Personal Property Tax Replacement Income Tax return for
| ||||||
11 | that taxable year. The election to pass through the credits | ||||||
12 | shall be
irrevocable.
| ||||||
13 | For taxable years ending on or after December 31, 2000, | ||||||
14 | a
partner that qualifies its
partnership for a subtraction | ||||||
15 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
16 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
17 | S
corporation for a subtraction under subparagraph (S) of | ||||||
18 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
19 | allowed a credit under this subsection
(e) equal to its | ||||||
20 | share of the credit earned under this subsection (e) during
| ||||||
21 | the taxable year by the partnership or Subchapter S | ||||||
22 | corporation, determined in
accordance with the | ||||||
23 | determination of income and distributive share of
income | ||||||
24 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
25 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
26 | of Section 250.
|
| |||||||
| |||||||
1 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
2 | Redevelopment Zone.
| ||||||
3 | (1) A taxpayer shall be allowed a credit against the | ||||||
4 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
5 | investment in qualified
property which is placed in service | ||||||
6 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
7 | Enterprise Zone Act or, for property placed in service on | ||||||
8 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
9 | established pursuant to the River Edge Redevelopment Zone | ||||||
10 | Act. For partners, shareholders
of Subchapter S | ||||||
11 | corporations, and owners of limited liability companies,
| ||||||
12 | if the liability company is treated as a partnership for | ||||||
13 | purposes of
federal and State income taxation, there shall | ||||||
14 | be allowed a credit under
this subsection (f) to be | ||||||
15 | determined in accordance with the determination
of income | ||||||
16 | and distributive share of income under Sections 702 and 704 | ||||||
17 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
18 | shall be .5% of the
basis for such property. The credit | ||||||
19 | shall be available only in the taxable
year in which the | ||||||
20 | property is placed in service in the Enterprise Zone or | ||||||
21 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
22 | the extent that it would reduce a taxpayer's
liability for | ||||||
23 | the tax imposed by subsections (a) and (b) of this Section | ||||||
24 | to
below zero. For tax years ending on or after December | ||||||
25 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
26 | which the property is placed in
service, or, if the amount |
| |||||||
| |||||||
1 | of the credit exceeds the tax liability for that
year, | ||||||
2 | whether it exceeds the original liability or the liability | ||||||
3 | as later
amended, such excess may be carried forward and | ||||||
4 | applied to the tax
liability of the 5 taxable years | ||||||
5 | following the excess credit year.
The credit shall be | ||||||
6 | applied to the earliest year for which there is a
| ||||||
7 | liability. If there is credit from more than one tax year | ||||||
8 | that is available
to offset a liability, the credit | ||||||
9 | accruing first in time shall be applied
first.
| ||||||
10 | (2) The term qualified property means property which:
| ||||||
11 | (A) is tangible, whether new or used, including | ||||||
12 | buildings and
structural components of buildings;
| ||||||
13 | (B) is depreciable pursuant to Section 167 of the | ||||||
14 | Internal Revenue
Code, except that "3-year property" | ||||||
15 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
16 | eligible for the credit provided by this subsection | ||||||
17 | (f);
| ||||||
18 | (C) is acquired by purchase as defined in Section | ||||||
19 | 179(d) of
the Internal Revenue Code;
| ||||||
20 | (D) is used in the Enterprise Zone or River Edge | ||||||
21 | Redevelopment Zone by the taxpayer; and
| ||||||
22 | (E) has not been previously used in Illinois in | ||||||
23 | such a manner and by
such a person as would qualify for | ||||||
24 | the credit provided by this subsection
(f) or | ||||||
25 | subsection (e).
| ||||||
26 | (3) The basis of qualified property shall be the basis |
| |||||||
| |||||||
1 | used to compute
the depreciation deduction for federal | ||||||
2 | income tax purposes.
| ||||||
3 | (4) If the basis of the property for federal income tax | ||||||
4 | depreciation
purposes is increased after it has been placed | ||||||
5 | in service in the Enterprise
Zone or River Edge | ||||||
6 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
7 | increase shall be deemed property
placed in service on the | ||||||
8 | date of such increase in basis.
| ||||||
9 | (5) The term "placed in service" shall have the same | ||||||
10 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
11 | (6) If during any taxable year, any property ceases to | ||||||
12 | be qualified
property in the hands of the taxpayer within | ||||||
13 | 48 months after being placed
in service, or the situs of | ||||||
14 | any qualified property is moved outside the
Enterprise Zone | ||||||
15 | or River Edge Redevelopment Zone within 48 months after | ||||||
16 | being placed in service, the tax
imposed under subsections | ||||||
17 | (a) and (b) of this Section for such taxable year
shall be | ||||||
18 | increased. Such increase shall be determined by (i) | ||||||
19 | recomputing
the investment credit which would have been | ||||||
20 | allowed for the year in which
credit for such property was | ||||||
21 | originally allowed by eliminating such
property from such | ||||||
22 | computation, and (ii) subtracting such recomputed credit
| ||||||
23 | from the amount of credit previously allowed. For the | ||||||
24 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
25 | qualified property resulting
from a redetermination of the | ||||||
26 | purchase price shall be deemed a disposition
of qualified |
| |||||||
| |||||||
1 | property to the extent of such reduction.
| ||||||
2 | (7) There shall be allowed an additional credit equal | ||||||
3 | to 0.5% of the basis of qualified property placed in | ||||||
4 | service during the taxable year in a River Edge | ||||||
5 | Redevelopment Zone, provided such property is placed in | ||||||
6 | service on or after July 1, 2006, and the taxpayer's base | ||||||
7 | employment within Illinois has increased by 1% or more over | ||||||
8 | the preceding year as determined by the taxpayer's | ||||||
9 | employment records filed with the Illinois Department of | ||||||
10 | Employment Security. Taxpayers who are new to Illinois | ||||||
11 | shall be deemed to have met the 1% growth in base | ||||||
12 | employment for the first year in which they file employment | ||||||
13 | records with the Illinois Department of Employment | ||||||
14 | Security. If, in any year, the increase in base employment | ||||||
15 | within Illinois over the preceding year is less than 1%, | ||||||
16 | the additional credit shall be limited to that percentage | ||||||
17 | times a fraction, the numerator of which is 0.5% and the | ||||||
18 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
19 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
20 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
| ||||||
21 | (1) A taxpayer conducting a trade or business in an | ||||||
22 | enterprise zone
or a High Impact Business designated by the | ||||||
23 | Department of Commerce and
Economic Opportunity or for | ||||||
24 | taxable years ending on or after December 31, 2006, in a | ||||||
25 | River Edge Redevelopment Zone conducting a trade or | ||||||
26 | business in a federally designated
Foreign Trade Zone or |
| |||||||
| |||||||
1 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
2 | by subsections (a) and (b) of this Section in the amount of | ||||||
3 | $500
per eligible employee hired to work in the zone during | ||||||
4 | the taxable year.
| ||||||
5 | (2) To qualify for the credit:
| ||||||
6 | (A) the taxpayer must hire 5 or more eligible | ||||||
7 | employees to work in an
enterprise zone, River Edge | ||||||
8 | Redevelopment Zone, or federally designated Foreign | ||||||
9 | Trade Zone or Sub-Zone
during the taxable year;
| ||||||
10 | (B) the taxpayer's total employment within the | ||||||
11 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
12 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
13 | must
increase by 5 or more full-time employees beyond | ||||||
14 | the total employed in that
zone at the end of the | ||||||
15 | previous tax year for which a jobs tax
credit under | ||||||
16 | this Section was taken, or beyond the total employed by | ||||||
17 | the
taxpayer as of December 31, 1985, whichever is | ||||||
18 | later; and
| ||||||
19 | (C) the eligible employees must be employed 180 | ||||||
20 | consecutive days in
order to be deemed hired for | ||||||
21 | purposes of this subsection.
| ||||||
22 | (3) An "eligible employee" means an employee who is:
| ||||||
23 | (A) Certified by the Department of Commerce and | ||||||
24 | Economic Opportunity
as "eligible for services" | ||||||
25 | pursuant to regulations promulgated in
accordance with | ||||||
26 | Title II of the Job Training Partnership Act, Training
|
| |||||||
| |||||||
1 | Services for the Disadvantaged or Title III of the Job | ||||||
2 | Training Partnership
Act, Employment and Training | ||||||
3 | Assistance for Dislocated Workers Program.
| ||||||
4 | (B) Hired after the enterprise zone, River Edge | ||||||
5 | Redevelopment Zone, or federally designated Foreign
| ||||||
6 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
7 | business was located in that zone, whichever is later.
| ||||||
8 | (C) Employed in the enterprise zone, River Edge | ||||||
9 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
10 | An employee is employed in an
enterprise zone or | ||||||
11 | federally designated Foreign Trade Zone or Sub-Zone
if | ||||||
12 | his services are rendered there or it is the base of
| ||||||
13 | operations for the services performed.
| ||||||
14 | (D) A full-time employee working 30 or more hours | ||||||
15 | per week.
| ||||||
16 | (4) For tax years ending on or after December 31, 1985 | ||||||
17 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
18 | for the tax year in which
the eligible employees are hired. | ||||||
19 | For tax years ending on or after
December 31, 1988, the | ||||||
20 | credit shall be allowed for the tax year immediately
| ||||||
21 | following the tax year in which the eligible employees are | ||||||
22 | hired. If the
amount of the credit exceeds the tax | ||||||
23 | liability for that year, whether it
exceeds the original | ||||||
24 | liability or the liability as later amended, such
excess | ||||||
25 | may be carried forward and applied to the tax liability of | ||||||
26 | the 5
taxable years following the excess credit year. The |
| |||||||
| |||||||
1 | credit shall be
applied to the earliest year for which | ||||||
2 | there is a liability. If there is
credit from more than one | ||||||
3 | tax year that is available to offset a liability,
earlier | ||||||
4 | credit shall be applied first.
| ||||||
5 | (5) The Department of Revenue shall promulgate such | ||||||
6 | rules and regulations
as may be deemed necessary to carry | ||||||
7 | out the purposes of this subsection (g).
| ||||||
8 | (6) The credit shall be available for eligible | ||||||
9 | employees hired on or
after January 1, 1986.
| ||||||
10 | (h) Investment credit; High Impact Business.
| ||||||
11 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
12 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
13 | allowed a credit
against the tax imposed by subsections (a) | ||||||
14 | and (b) of this Section for
investment in qualified
| ||||||
15 | property which is placed in service by a Department of | ||||||
16 | Commerce and Economic Opportunity
designated High Impact | ||||||
17 | Business. The credit shall be .5% of the basis
for such | ||||||
18 | property. The credit shall not be available (i) until the | ||||||
19 | minimum
investments in qualified property set forth in | ||||||
20 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
21 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
22 | time authorized in subsection (b-5) of the Illinois
| ||||||
23 | Enterprise Zone Act for entities designated as High Impact | ||||||
24 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
25 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
26 | Act, and shall not be allowed to the extent that it would
|
| |||||||
| |||||||
1 | reduce a taxpayer's liability for the tax imposed by | ||||||
2 | subsections (a) and (b) of
this Section to below zero. The | ||||||
3 | credit applicable to such investments shall be
taken in the | ||||||
4 | taxable year in which such investments have been completed. | ||||||
5 | The
credit for additional investments beyond the minimum | ||||||
6 | investment by a designated
high impact business authorized | ||||||
7 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
8 | Enterprise Zone Act shall be available only in the taxable | ||||||
9 | year in
which the property is placed in service and shall | ||||||
10 | not be allowed to the extent
that it would reduce a | ||||||
11 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
12 | and (b) of this Section to below zero.
For tax years ending | ||||||
13 | on or after December 31, 1987, the credit shall be
allowed | ||||||
14 | for the tax year in which the property is placed in | ||||||
15 | service, or, if
the amount of the credit exceeds the tax | ||||||
16 | liability for that year, whether
it exceeds the original | ||||||
17 | liability or the liability as later amended, such
excess | ||||||
18 | may be carried forward and applied to the tax liability of | ||||||
19 | the 5
taxable years following the excess credit year. The | ||||||
20 | credit shall be
applied to the earliest year for which | ||||||
21 | there is a liability. If there is
credit from more than one | ||||||
22 | tax year that is available to offset a liability,
the | ||||||
23 | credit accruing first in time shall be applied first.
| ||||||
24 | Changes made in this subdivision (h)(1) by Public Act | ||||||
25 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
26 | reflect existing law.
|
| |||||||
| |||||||
1 | (2) The term qualified property means property which:
| ||||||
2 | (A) is tangible, whether new or used, including | ||||||
3 | buildings and
structural components of buildings;
| ||||||
4 | (B) is depreciable pursuant to Section 167 of the | ||||||
5 | Internal Revenue
Code, except that "3-year property" | ||||||
6 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
7 | eligible for the credit provided by this subsection | ||||||
8 | (h);
| ||||||
9 | (C) is acquired by purchase as defined in Section | ||||||
10 | 179(d) of the
Internal Revenue Code; and
| ||||||
11 | (D) is not eligible for the Enterprise Zone | ||||||
12 | Investment Credit provided
by subsection (f) of this | ||||||
13 | Section.
| ||||||
14 | (3) The basis of qualified property shall be the basis | ||||||
15 | used to compute
the depreciation deduction for federal | ||||||
16 | income tax purposes.
| ||||||
17 | (4) If the basis of the property for federal income tax | ||||||
18 | depreciation
purposes is increased after it has been placed | ||||||
19 | in service in a federally
designated Foreign Trade Zone or | ||||||
20 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
21 | such increase shall be deemed property placed in service on
| ||||||
22 | the date of such increase in basis.
| ||||||
23 | (5) The term "placed in service" shall have the same | ||||||
24 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
25 | (6) If during any taxable year ending on or before | ||||||
26 | December 31, 1996,
any property ceases to be qualified
|
| |||||||
| |||||||
1 | property in the hands of the taxpayer within 48 months | ||||||
2 | after being placed
in service, or the situs of any | ||||||
3 | qualified property is moved outside
Illinois within 48 | ||||||
4 | months after being placed in service, the tax imposed
under | ||||||
5 | subsections (a) and (b) of this Section for such taxable | ||||||
6 | year shall
be increased. Such increase shall be determined | ||||||
7 | by (i) recomputing the
investment credit which would have | ||||||
8 | been allowed for the year in which
credit for such property | ||||||
9 | was originally allowed by eliminating such
property from | ||||||
10 | such computation, and (ii) subtracting such recomputed | ||||||
11 | credit
from the amount of credit previously allowed. For | ||||||
12 | the purposes of this
paragraph (6), a reduction of the | ||||||
13 | basis of qualified property resulting
from a | ||||||
14 | redetermination of the purchase price shall be deemed a | ||||||
15 | disposition
of qualified property to the extent of such | ||||||
16 | reduction.
| ||||||
17 | (7) Beginning with tax years ending after December 31, | ||||||
18 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
19 | subsection (h) and thereby is
granted a tax abatement and | ||||||
20 | the taxpayer relocates its entire facility in
violation of | ||||||
21 | the explicit terms and length of the contract under Section
| ||||||
22 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
23 | subsections
(a) and (b) of this Section shall be increased | ||||||
24 | for the taxable year
in which the taxpayer relocated its | ||||||
25 | facility by an amount equal to the
amount of credit | ||||||
26 | received by the taxpayer under this subsection (h).
|
| |||||||
| |||||||
1 | (i) Credit for Personal Property Tax Replacement Income | ||||||
2 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
3 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
4 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
5 | (d) of this Section. This credit shall be computed by | ||||||
6 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
7 | Section by a fraction, the numerator
of which is base income | ||||||
8 | allocable to Illinois and the denominator of which is
Illinois | ||||||
9 | base income, and further multiplying the product by the tax | ||||||
10 | rate
imposed by subsections (a) and (b) of this Section.
| ||||||
11 | Any credit earned on or after December 31, 1986 under
this | ||||||
12 | subsection which is unused in the year
the credit is computed | ||||||
13 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
14 | and (b) for that year (whether it exceeds the original
| ||||||
15 | liability or the liability as later amended) may be carried | ||||||
16 | forward and
applied to the tax liability imposed by subsections | ||||||
17 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
18 | year, provided that no credit may
be carried forward to any | ||||||
19 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
20 | applied first to the earliest year for which there is a | ||||||
21 | liability. If
there is a credit under this subsection from more | ||||||
22 | than one tax year that is
available to offset a liability the | ||||||
23 | earliest credit arising under this
subsection shall be applied | ||||||
24 | first.
| ||||||
25 | If, during any taxable year ending on or after December 31, | ||||||
26 | 1986, the
tax imposed by subsections (c) and (d) of this |
| |||||||
| |||||||
1 | Section for which a taxpayer
has claimed a credit under this | ||||||
2 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
3 | shall also be reduced. Such reduction shall be
determined by | ||||||
4 | recomputing the credit to take into account the reduced tax
| ||||||
5 | imposed by subsections (c) and (d). If any portion of the
| ||||||
6 | reduced amount of credit has been carried to a different | ||||||
7 | taxable year, an
amended return shall be filed for such taxable | ||||||
8 | year to reduce the amount of
credit claimed.
| ||||||
9 | (j) Training expense credit. Beginning with tax years | ||||||
10 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
11 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
12 | imposed by subsections (a) and (b) under this Section
for all | ||||||
13 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
14 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
15 | of Illinois by a taxpayer, for educational or vocational | ||||||
16 | training in
semi-technical or technical fields or semi-skilled | ||||||
17 | or skilled fields, which
were deducted from gross income in the | ||||||
18 | computation of taxable income. The
credit against the tax | ||||||
19 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
20 | training expenses. For partners, shareholders of subchapter S
| ||||||
21 | corporations, and owners of limited liability companies, if the | ||||||
22 | liability
company is treated as a partnership for purposes of | ||||||
23 | federal and State income
taxation, there shall be allowed a | ||||||
24 | credit under this subsection (j) to be
determined in accordance | ||||||
25 | with the determination of income and distributive
share of | ||||||
26 | income under Sections 702 and 704 and subchapter S of the |
| |||||||
| |||||||
1 | Internal
Revenue Code.
| ||||||
2 | Any credit allowed under this subsection which is unused in | ||||||
3 | the year
the credit is earned may be carried forward to each of | ||||||
4 | the 5 taxable
years following the year for which the credit is | ||||||
5 | first computed until it is
used. This credit shall be applied | ||||||
6 | first to the earliest year for which
there is a liability. If | ||||||
7 | there is a credit under this subsection from more
than one tax | ||||||
8 | year that is available to offset a liability the earliest
| ||||||
9 | credit arising under this subsection shall be applied first. No | ||||||
10 | carryforward
credit may be claimed in any tax year ending on or | ||||||
11 | after
December 31, 2003.
| ||||||
12 | (k) Research and development credit.
| ||||||
13 | For tax years ending after July 1, 1990 and prior to
| ||||||
14 | December 31, 2003, and beginning again for tax years ending on | ||||||
15 | or after December 31, 2004, a taxpayer shall be
allowed a | ||||||
16 | credit against the tax imposed by subsections (a) and (b) of | ||||||
17 | this
Section for increasing research activities in this State. | ||||||
18 | The credit
allowed against the tax imposed by subsections (a) | ||||||
19 | and (b) shall be equal
to 6 1/2% of the qualifying expenditures | ||||||
20 | for increasing research activities
in this State. For partners, | ||||||
21 | shareholders of subchapter S corporations, and
owners of | ||||||
22 | limited liability companies, if the liability company is | ||||||
23 | treated as a
partnership for purposes of federal and State | ||||||
24 | income taxation, there shall be
allowed a credit under this | ||||||
25 | subsection to be determined in accordance with the
| ||||||
26 | determination of income and distributive share of income under |
| |||||||
| |||||||
1 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
2 | Code.
| ||||||
3 | For purposes of this subsection, "qualifying expenditures" | ||||||
4 | means the
qualifying expenditures as defined for the federal | ||||||
5 | credit for increasing
research activities which would be | ||||||
6 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
7 | which are conducted in this State, "qualifying
expenditures for | ||||||
8 | increasing research activities in this State" means the
excess | ||||||
9 | of qualifying expenditures for the taxable year in which | ||||||
10 | incurred
over qualifying expenditures for the base period, | ||||||
11 | "qualifying expenditures
for the base period" means the average | ||||||
12 | of the qualifying expenditures for
each year in the base | ||||||
13 | period, and "base period" means the 3 taxable years
immediately | ||||||
14 | preceding the taxable year for which the determination is
being | ||||||
15 | made.
| ||||||
16 | Any credit in excess of the tax liability for the taxable | ||||||
17 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
18 | unused credit shown on its final completed return carried over | ||||||
19 | as a credit
against the tax liability for the following 5 | ||||||
20 | taxable years or until it has
been fully used, whichever occurs | ||||||
21 | first; provided that no credit earned in a tax year ending | ||||||
22 | prior to December 31, 2003 may be carried forward to any year | ||||||
23 | ending on or after December 31, 2003.
| ||||||
24 | If an unused credit is carried forward to a given year from | ||||||
25 | 2 or more
earlier years, that credit arising in the earliest | ||||||
26 | year will be applied
first against the tax liability for the |
| |||||||
| |||||||
1 | given year. If a tax liability for
the given year still | ||||||
2 | remains, the credit from the next earliest year will
then be | ||||||
3 | applied, and so on, until all credits have been used or no tax
| ||||||
4 | liability for the given year remains. Any remaining unused | ||||||
5 | credit or
credits then will be carried forward to the next | ||||||
6 | following year in which a
tax liability is incurred, except | ||||||
7 | that no credit can be carried forward to
a year which is more | ||||||
8 | than 5 years after the year in which the expense for
which the | ||||||
9 | credit is given was incurred.
| ||||||
10 | No inference shall be drawn from this amendatory Act of the | ||||||
11 | 91st General
Assembly in construing this Section for taxable | ||||||
12 | years beginning before January
1, 1999.
| ||||||
13 | (l) Environmental Remediation Tax Credit.
| ||||||
14 | (i) For tax years ending after December 31, 1997 and on | ||||||
15 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
16 | credit against the tax
imposed by subsections (a) and (b) | ||||||
17 | of this Section for certain amounts paid
for unreimbursed | ||||||
18 | eligible remediation costs, as specified in this | ||||||
19 | subsection.
For purposes of this Section, "unreimbursed | ||||||
20 | eligible remediation costs" means
costs approved by the | ||||||
21 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
22 | Section 58.14 of the Environmental Protection Act that were | ||||||
23 | paid in performing
environmental remediation at a site for | ||||||
24 | which a No Further Remediation Letter
was issued by the | ||||||
25 | Agency and recorded under Section 58.10 of the | ||||||
26 | Environmental
Protection Act. The credit must be claimed |
| |||||||
| |||||||
1 | for the taxable year in which
Agency approval of the | ||||||
2 | eligible remediation costs is granted. The credit is
not | ||||||
3 | available to any taxpayer if the taxpayer or any related | ||||||
4 | party caused or
contributed to, in any material respect, a | ||||||
5 | release of regulated substances on,
in, or under the site | ||||||
6 | that was identified and addressed by the remedial
action | ||||||
7 | pursuant to the Site Remediation Program of the | ||||||
8 | Environmental Protection
Act. After the Pollution Control | ||||||
9 | Board rules are adopted pursuant to the
Illinois | ||||||
10 | Administrative Procedure Act for the administration and | ||||||
11 | enforcement of
Section 58.9 of the Environmental | ||||||
12 | Protection Act, determinations as to credit
availability | ||||||
13 | for purposes of this Section shall be made consistent with | ||||||
14 | those
rules. For purposes of this Section, "taxpayer" | ||||||
15 | includes a person whose tax
attributes the taxpayer has | ||||||
16 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
17 | and "related party" includes the persons disallowed a | ||||||
18 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
19 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
20 | a related taxpayer, as well as any of its
partners. The | ||||||
21 | credit allowed against the tax imposed by subsections (a) | ||||||
22 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
23 | remediation costs in
excess of $100,000 per site, except | ||||||
24 | that the $100,000 threshold shall not apply
to any site | ||||||
25 | contained in an enterprise zone as determined by the | ||||||
26 | Department of
Commerce and Community Affairs (now |
| |||||||
| |||||||
1 | Department of Commerce and Economic Opportunity). The | ||||||
2 | total credit allowed shall not exceed
$40,000 per year with | ||||||
3 | a maximum total of $150,000 per site. For partners and
| ||||||
4 | shareholders of subchapter S corporations, there shall be | ||||||
5 | allowed a credit
under this subsection to be determined in | ||||||
6 | accordance with the determination of
income and | ||||||
7 | distributive share of income under Sections 702 and 704 and
| ||||||
8 | subchapter S of the Internal Revenue Code.
| ||||||
9 | (ii) A credit allowed under this subsection that is | ||||||
10 | unused in the year
the credit is earned may be carried | ||||||
11 | forward to each of the 5 taxable years
following the year | ||||||
12 | for which the credit is first earned until it is used.
The | ||||||
13 | term "unused credit" does not include any amounts of | ||||||
14 | unreimbursed eligible
remediation costs in excess of the | ||||||
15 | maximum credit per site authorized under
paragraph (i). | ||||||
16 | This credit shall be applied first to the earliest year
for | ||||||
17 | which there is a liability. If there is a credit under this | ||||||
18 | subsection
from more than one tax year that is available to | ||||||
19 | offset a liability, the
earliest credit arising under this | ||||||
20 | subsection shall be applied first. A
credit allowed under | ||||||
21 | this subsection may be sold to a buyer as part of a sale
of | ||||||
22 | all or part of the remediation site for which the credit | ||||||
23 | was granted. The
purchaser of a remediation site and the | ||||||
24 | tax credit shall succeed to the unused
credit and remaining | ||||||
25 | carry-forward period of the seller. To perfect the
| ||||||
26 | transfer, the assignor shall record the transfer in the |
| |||||||
| |||||||
1 | chain of title for the
site and provide written notice to | ||||||
2 | the Director of the Illinois Department of
Revenue of the | ||||||
3 | assignor's intent to sell the remediation site and the | ||||||
4 | amount of
the tax credit to be transferred as a portion of | ||||||
5 | the sale. In no event may a
credit be transferred to any | ||||||
6 | taxpayer if the taxpayer or a related party would
not be | ||||||
7 | eligible under the provisions of subsection (i).
| ||||||
8 | (iii) For purposes of this Section, the term "site" | ||||||
9 | shall have the same
meaning as under Section 58.2 of the | ||||||
10 | Environmental Protection Act.
| ||||||
11 | (m) Education expense credit. Beginning with tax years | ||||||
12 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
13 | of one or more qualifying pupils shall be allowed a credit
| ||||||
14 | against the tax imposed by subsections (a) and (b) of this | ||||||
15 | Section for
qualified education expenses incurred on behalf of | ||||||
16 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
17 | qualified education expenses, but in no
event may the total | ||||||
18 | credit under this subsection claimed by a
family that is the
| ||||||
19 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
20 | credit under
this subsection reduce the taxpayer's liability | ||||||
21 | under this Act to less than
zero. This subsection is exempt | ||||||
22 | from the provisions of Section 250 of this
Act.
| ||||||
23 | For purposes of this subsection:
| ||||||
24 | "Qualifying pupils" means individuals who (i) are | ||||||
25 | residents of the State of
Illinois, (ii) are under the age of | ||||||
26 | 21 at the close of the school year for
which a credit is |
| |||||||
| |||||||
1 | sought, and (iii) during the school year for which a credit
is | ||||||
2 | sought were full-time pupils enrolled in a kindergarten through | ||||||
3 | twelfth
grade education program at any school, as defined in | ||||||
4 | this subsection.
| ||||||
5 | "Qualified education expense" means the amount incurred
on | ||||||
6 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
7 | book fees, and
lab fees at the school in which the pupil is | ||||||
8 | enrolled during the regular school
year.
| ||||||
9 | "School" means any public or nonpublic elementary or | ||||||
10 | secondary school in
Illinois that is in compliance with Title | ||||||
11 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
12 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
13 | except that nothing shall be construed to require a child to
| ||||||
14 | attend any particular public or nonpublic school to qualify for | ||||||
15 | the credit
under this Section.
| ||||||
16 | "Custodian" means, with respect to qualifying pupils, an | ||||||
17 | Illinois resident
who is a parent, the parents, a legal | ||||||
18 | guardian, or the legal guardians of the
qualifying pupils.
| ||||||
19 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
20 | credit.
| ||||||
21 | (i) For tax years ending on or after December 31, 2006, | ||||||
22 | a taxpayer shall be allowed a credit against the tax | ||||||
23 | imposed by subsections (a) and (b) of this Section for | ||||||
24 | certain amounts paid for unreimbursed eligible remediation | ||||||
25 | costs, as specified in this subsection. For purposes of | ||||||
26 | this Section, "unreimbursed eligible remediation costs" |
| |||||||
| |||||||
1 | means costs approved by the Illinois Environmental | ||||||
2 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
3 | Environmental Protection Act that were paid in performing | ||||||
4 | environmental remediation at a site within a River Edge | ||||||
5 | Redevelopment Zone for which a No Further Remediation | ||||||
6 | Letter was issued by the Agency and recorded under Section | ||||||
7 | 58.10 of the Environmental Protection Act. The credit must | ||||||
8 | be claimed for the taxable year in which Agency approval of | ||||||
9 | the eligible remediation costs is granted. The credit is | ||||||
10 | not available to any taxpayer if the taxpayer or any | ||||||
11 | related party caused or contributed to, in any material | ||||||
12 | respect, a release of regulated substances on, in, or under | ||||||
13 | the site that was identified and addressed by the remedial | ||||||
14 | action pursuant to the Site Remediation Program of the | ||||||
15 | Environmental Protection Act. Determinations as to credit | ||||||
16 | availability for purposes of this Section shall be made | ||||||
17 | consistent with rules adopted by the Pollution Control | ||||||
18 | Board pursuant to the Illinois Administrative Procedure | ||||||
19 | Act for the administration and enforcement of Section 58.9 | ||||||
20 | of the Environmental Protection Act. For purposes of this | ||||||
21 | Section, "taxpayer" includes a person whose tax attributes | ||||||
22 | the taxpayer has succeeded to under Section 381 of the | ||||||
23 | Internal Revenue Code and "related party" includes the | ||||||
24 | persons disallowed a deduction for losses by paragraphs | ||||||
25 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
26 | Code by virtue of being a related taxpayer, as well as any |
| |||||||
| |||||||
1 | of its partners. The credit allowed against the tax imposed | ||||||
2 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
3 | unreimbursed eligible remediation costs in excess of | ||||||
4 | $100,000 per site. | ||||||
5 | (ii) A credit allowed under this subsection that is | ||||||
6 | unused in the year the credit is earned may be carried | ||||||
7 | forward to each of the 5 taxable years following the year | ||||||
8 | for which the credit is first earned until it is used. This | ||||||
9 | credit shall be applied first to the earliest year for | ||||||
10 | which there is a liability. If there is a credit under this | ||||||
11 | subsection from more than one tax year that is available to | ||||||
12 | offset a liability, the earliest credit arising under this | ||||||
13 | subsection shall be applied first. A credit allowed under | ||||||
14 | this subsection may be sold to a buyer as part of a sale of | ||||||
15 | all or part of the remediation site for which the credit | ||||||
16 | was granted. The purchaser of a remediation site and the | ||||||
17 | tax credit shall succeed to the unused credit and remaining | ||||||
18 | carry-forward period of the seller. To perfect the | ||||||
19 | transfer, the assignor shall record the transfer in the | ||||||
20 | chain of title for the site and provide written notice to | ||||||
21 | the Director of the Illinois Department of Revenue of the | ||||||
22 | assignor's intent to sell the remediation site and the | ||||||
23 | amount of the tax credit to be transferred as a portion of | ||||||
24 | the sale. In no event may a credit be transferred to any | ||||||
25 | taxpayer if the taxpayer or a related party would not be | ||||||
26 | eligible under the provisions of subsection (i). |
| |||||||
| |||||||
1 | (iii) For purposes of this Section, the term "site" | ||||||
2 | shall have the same meaning as under Section 58.2 of the | ||||||
3 | Environmental Protection Act. | ||||||
4 | (iv) This subsection is exempt from the provisions of | ||||||
5 | Section 250.
| ||||||
6 | (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
| ||||||
7 | Section 10. The Use Tax Act is amended by changing Sections | ||||||
8 | 3-5, 3-30, and 3-85 as follows:
| ||||||
9 | (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
| ||||||
10 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
11 | personal property
is exempt from the tax imposed by this Act:
| ||||||
12 | (1) Personal property purchased from a corporation, | ||||||
13 | society, association,
foundation, institution, or | ||||||
14 | organization, other than a limited liability
company, that is | ||||||
15 | organized and operated as a not-for-profit service enterprise
| ||||||
16 | for the benefit of persons 65 years of age or older if the | ||||||
17 | personal property
was not purchased by the enterprise for the | ||||||
18 | purpose of resale by the
enterprise.
| ||||||
19 | (2) Personal property purchased by a not-for-profit | ||||||
20 | Illinois county
fair association for use in conducting, | ||||||
21 | operating, or promoting the
county fair.
| ||||||
22 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
23 | cultural organization that establishes, by proof required by | ||||||
24 | the
Department by
rule, that it has received an exemption under |
| |||||||
| |||||||
1 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
2 | organized and operated primarily for the
presentation
or | ||||||
3 | support of arts or cultural programming, activities, or | ||||||
4 | services. These
organizations include, but are not limited to, | ||||||
5 | music and dramatic arts
organizations such as symphony | ||||||
6 | orchestras and theatrical groups, arts and
cultural service | ||||||
7 | organizations, local arts councils, visual arts organizations,
| ||||||
8 | and media arts organizations.
On and after the effective date | ||||||
9 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
10 | an entity otherwise eligible for this exemption shall not
make | ||||||
11 | tax-free purchases unless it has an active identification | ||||||
12 | number issued by
the Department.
| ||||||
13 | (4) Personal property purchased by a governmental body, by | ||||||
14 | a
corporation, society, association, foundation, or | ||||||
15 | institution organized and
operated exclusively for charitable, | ||||||
16 | religious, or educational purposes, or
by a not-for-profit | ||||||
17 | corporation, society, association, foundation,
institution, or | ||||||
18 | organization that has no compensated officers or employees
and | ||||||
19 | that is organized and operated primarily for the recreation of | ||||||
20 | persons
55 years of age or older. A limited liability company | ||||||
21 | may qualify for the
exemption under this paragraph only if the | ||||||
22 | limited liability company is
organized and operated | ||||||
23 | exclusively for educational purposes. On and after July
1, | ||||||
24 | 1987, however, no entity otherwise eligible for this exemption | ||||||
25 | shall make
tax-free purchases unless it has an active exemption | ||||||
26 | identification number
issued by the Department.
|
| |||||||
| |||||||
1 | (5) Until July 1, 2003, a passenger car that is a | ||||||
2 | replacement vehicle to
the extent that the
purchase price of | ||||||
3 | the car is subject to the Replacement Vehicle Tax.
| ||||||
4 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
5 | 2004 through August 30, 2014 , graphic arts machinery and | ||||||
6 | equipment, including
repair and replacement
parts, both new and | ||||||
7 | used, and including that manufactured on special order,
| ||||||
8 | certified by the purchaser to be used primarily for graphic | ||||||
9 | arts production,
and including machinery and equipment | ||||||
10 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
11 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
12 | acting as catalysts effect a direct and immediate change
upon a | ||||||
13 | graphic arts product.
| ||||||
14 | (7) Farm chemicals.
| ||||||
15 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
16 | coinage issued by
the State of Illinois, the government of the | ||||||
17 | United States of America, or the
government of any foreign | ||||||
18 | country, and bullion.
| ||||||
19 | (9) Personal property purchased from a teacher-sponsored | ||||||
20 | student
organization affiliated with an elementary or | ||||||
21 | secondary school located in
Illinois.
| ||||||
22 | (10) A motor vehicle of the first division, a motor vehicle | ||||||
23 | of the
second division that is a self-contained motor vehicle | ||||||
24 | designed or
permanently converted to provide living quarters | ||||||
25 | for recreational, camping,
or travel use, with direct walk | ||||||
26 | through to the living quarters from the
driver's seat, or a |
| |||||||
| |||||||
1 | motor vehicle of the second division that is of the
van | ||||||
2 | configuration designed for the transportation of not less than | ||||||
3 | 7 nor
more than 16 passengers, as defined in Section 1-146 of | ||||||
4 | the Illinois
Vehicle Code, that is used for automobile renting, | ||||||
5 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
6 | Act.
| ||||||
7 | (11) Farm machinery and equipment, both new and used,
| ||||||
8 | including that manufactured on special order, certified by the | ||||||
9 | purchaser
to be used primarily for production agriculture or | ||||||
10 | State or federal
agricultural programs, including individual | ||||||
11 | replacement parts for
the machinery and equipment, including | ||||||
12 | machinery and equipment
purchased
for lease,
and including | ||||||
13 | implements of husbandry defined in Section 1-130 of
the | ||||||
14 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
15 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
16 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
17 | but excluding other motor
vehicles required to be
registered | ||||||
18 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
19 | hoop houses used for propagating, growing, or
overwintering | ||||||
20 | plants shall be considered farm machinery and equipment under
| ||||||
21 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
22 | boxes shall include units sold
separately from a motor vehicle | ||||||
23 | required to be licensed and units sold mounted
on a motor | ||||||
24 | vehicle required to be licensed if the selling price of the | ||||||
25 | tender
is separately stated.
| ||||||
26 | Farm machinery and equipment shall include precision |
| |||||||
| |||||||
1 | farming equipment
that is
installed or purchased to be | ||||||
2 | installed on farm machinery and equipment
including, but not | ||||||
3 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
4 | or spreaders.
Precision farming equipment includes, but is not | ||||||
5 | limited to, soil testing
sensors, computers, monitors, | ||||||
6 | software, global positioning
and mapping systems, and other | ||||||
7 | such equipment.
| ||||||
8 | Farm machinery and equipment also includes computers, | ||||||
9 | sensors, software, and
related equipment used primarily in the
| ||||||
10 | computer-assisted operation of production agriculture | ||||||
11 | facilities, equipment,
and
activities such as, but not limited | ||||||
12 | to,
the collection, monitoring, and correlation of
animal and | ||||||
13 | crop data for the purpose of
formulating animal diets and | ||||||
14 | agricultural chemicals. This item (11) is exempt
from the | ||||||
15 | provisions of
Section 3-90.
| ||||||
16 | (12) Fuel and petroleum products sold to or used by an air | ||||||
17 | common
carrier, certified by the carrier to be used for | ||||||
18 | consumption, shipment, or
storage in the conduct of its | ||||||
19 | business as an air common carrier, for a
flight destined for or | ||||||
20 | returning from a location or locations
outside the United | ||||||
21 | States without regard to previous or subsequent domestic
| ||||||
22 | stopovers.
| ||||||
23 | (13) Proceeds of mandatory service charges separately
| ||||||
24 | stated on customers' bills for the purchase and consumption of | ||||||
25 | food and
beverages purchased at retail from a retailer, to the | ||||||
26 | extent that the proceeds
of the service charge are in fact |
| |||||||
| |||||||
1 | turned over as tips or as a substitute
for tips to the | ||||||
2 | employees who participate directly in preparing, serving,
| ||||||
3 | hosting or cleaning up the food or beverage function with | ||||||
4 | respect to which
the service charge is imposed.
| ||||||
5 | (14) 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 | (15) Photoprocessing machinery and equipment, including | ||||||
15 | repair and
replacement parts, both new and used, including that
| ||||||
16 | manufactured on special order, certified by the purchaser to be | ||||||
17 | used
primarily for photoprocessing, and including
| ||||||
18 | photoprocessing machinery and equipment purchased for lease.
| ||||||
19 | (16) Until July 1, 2003, coal exploration, mining, | ||||||
20 | offhighway hauling,
processing, maintenance, and reclamation | ||||||
21 | equipment,
including replacement parts and equipment, and
| ||||||
22 | including equipment purchased for lease, but excluding motor
| ||||||
23 | vehicles required to be registered under the Illinois Vehicle | ||||||
24 | Code.
| ||||||
25 | (17) Until July 1, 2003, distillation machinery and | ||||||
26 | equipment, sold as a
unit or kit,
assembled or installed by the |
| |||||||
| |||||||
1 | retailer, certified by the user to be used
only for the | ||||||
2 | production of ethyl alcohol that will be used for consumption
| ||||||
3 | as motor fuel or as a component of motor fuel for the personal | ||||||
4 | use of the
user, and not subject to sale or resale.
| ||||||
5 | (18) Manufacturing and assembling machinery and equipment | ||||||
6 | used
primarily in the process of manufacturing or assembling | ||||||
7 | tangible
personal property for wholesale or retail sale or | ||||||
8 | lease, whether that sale
or lease is made directly by the | ||||||
9 | manufacturer or by some other person,
whether the materials | ||||||
10 | used in the process are
owned by the manufacturer or some other | ||||||
11 | person, or whether that sale or
lease is made apart from or as | ||||||
12 | an incident to the seller's engaging in
the service occupation | ||||||
13 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
14 | other similar items of no commercial value on
special order for | ||||||
15 | a particular purchaser.
| ||||||
16 | (19) Personal property delivered to a purchaser or | ||||||
17 | purchaser's donee
inside Illinois when the purchase order for | ||||||
18 | that personal property was
received by a florist located | ||||||
19 | outside Illinois who has a florist located
inside Illinois | ||||||
20 | deliver the personal property.
| ||||||
21 | (20) Semen used for artificial insemination of livestock | ||||||
22 | for direct
agricultural production.
| ||||||
23 | (21) Horses, or interests in horses, registered with and | ||||||
24 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
25 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
26 | Horse Association, United States
Trotting Association, or |
| |||||||
| |||||||
1 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
2 | racing for prizes. This item (21) is exempt from the provisions | ||||||
3 | of Section 3-90, and the exemption provided for under this item | ||||||
4 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
5 | claim for credit or refund is allowed on or after January 1, | ||||||
6 | 2008
for such taxes paid during the period beginning May 30, | ||||||
7 | 2000 and ending on January 1, 2008.
| ||||||
8 | (22) Computers and communications equipment utilized for | ||||||
9 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
10 | analysis, or treatment of hospital patients purchased by a | ||||||
11 | lessor who leases
the
equipment, under a lease of one year or | ||||||
12 | longer executed or in effect at the
time the lessor would | ||||||
13 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
14 | hospital
that has been issued an active tax exemption | ||||||
15 | identification number by
the
Department under Section 1g of the | ||||||
16 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
17 | manner that does not qualify for
this exemption or is used in | ||||||
18 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
19 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
20 | case may
be, based on the fair market value of the property at | ||||||
21 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
22 | or attempt to collect an
amount (however
designated) that | ||||||
23 | purports to reimburse that lessor for the tax imposed by this
| ||||||
24 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
25 | has not been
paid by the lessor. If a lessor improperly | ||||||
26 | collects any such amount from the
lessee, the lessee shall have |
| |||||||
| |||||||
1 | a legal right to claim a refund of that amount
from the lessor. | ||||||
2 | If, however, that amount is not refunded to the lessee for
any | ||||||
3 | reason, the lessor is liable to pay that amount to the | ||||||
4 | Department.
| ||||||
5 | (23) Personal property purchased by a lessor who leases the
| ||||||
6 | property, under
a
lease of
one year or longer executed or in | ||||||
7 | effect at the time
the lessor would otherwise be subject to the | ||||||
8 | tax imposed by this Act,
to a governmental body
that has been | ||||||
9 | issued an active sales tax exemption identification number by | ||||||
10 | the
Department under Section 1g of the Retailers' Occupation | ||||||
11 | Tax Act.
If the
property is leased in a manner that does not | ||||||
12 | qualify for
this exemption
or used in any other non-exempt | ||||||
13 | manner, the lessor shall be liable for the
tax imposed under | ||||||
14 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
15 | on the fair market value of the property at the time the
| ||||||
16 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
17 | to collect an
amount (however
designated) that purports to | ||||||
18 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
19 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
20 | paid by the lessor. If a lessor improperly collects any such | ||||||
21 | amount from the
lessee, the lessee shall have a legal right to | ||||||
22 | claim a refund of that amount
from the lessor. If, however, | ||||||
23 | that amount is not refunded to the lessee for
any reason, the | ||||||
24 | lessor is liable to pay that amount to the Department.
| ||||||
25 | (24) Beginning with taxable years ending on or after | ||||||
26 | December
31, 1995
and
ending with taxable years ending on or |
| |||||||
| |||||||
1 | before December 31, 2004,
personal property that is
donated for | ||||||
2 | disaster relief to be used in a State or federally declared
| ||||||
3 | disaster area in Illinois or bordering Illinois by a | ||||||
4 | manufacturer or retailer
that is registered in this State to a | ||||||
5 | corporation, society, association,
foundation, or institution | ||||||
6 | that has been issued a sales tax exemption
identification | ||||||
7 | number by the Department that assists victims of the disaster
| ||||||
8 | who reside within the declared disaster area.
| ||||||
9 | (25) Beginning with taxable years ending on or after | ||||||
10 | December
31, 1995 and
ending with taxable years ending on or | ||||||
11 | before December 31, 2004, personal
property that is used in the | ||||||
12 | performance of infrastructure repairs in this
State, including | ||||||
13 | but not limited to municipal roads and streets, access roads,
| ||||||
14 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
15 | line extensions,
water distribution and purification | ||||||
16 | facilities, storm water drainage and
retention facilities, and | ||||||
17 | sewage treatment facilities, resulting from a State
or | ||||||
18 | federally declared disaster in Illinois or bordering Illinois | ||||||
19 | when such
repairs are initiated on facilities located in the | ||||||
20 | declared disaster area
within 6 months after the disaster.
| ||||||
21 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
22 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
23 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
24 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
25 | Department of Natural Resources. This paragraph is exempt from | ||||||
26 | the provisions
of
Section 3-90.
|
| |||||||
| |||||||
1 | (27) A motor vehicle, as that term is defined in Section | ||||||
2 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
3 | corporation, limited liability company,
society, association, | ||||||
4 | foundation, or institution that is determined by the
Department | ||||||
5 | to be organized and operated exclusively for educational | ||||||
6 | purposes.
For purposes of this exemption, "a corporation, | ||||||
7 | limited liability company,
society, association, foundation, | ||||||
8 | or institution organized and operated
exclusively for | ||||||
9 | educational purposes" means all tax-supported public schools,
| ||||||
10 | private schools that offer systematic instruction in useful | ||||||
11 | branches of
learning by methods common to public schools and | ||||||
12 | that compare favorably in
their scope and intensity with the | ||||||
13 | course of study presented in tax-supported
schools, and | ||||||
14 | vocational or technical schools or institutes organized and
| ||||||
15 | operated exclusively to provide a course of study of not less | ||||||
16 | than 6 weeks
duration and designed to prepare individuals to | ||||||
17 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
18 | industrial, business, or commercial
occupation.
| ||||||
19 | (28) Beginning January 1, 2000, personal property, | ||||||
20 | including
food,
purchased through fundraising
events for the | ||||||
21 | benefit of
a public or private elementary or
secondary school, | ||||||
22 | a group of those schools, or one or more school
districts if | ||||||
23 | the events are
sponsored by an entity recognized by the school | ||||||
24 | district that consists
primarily of volunteers and includes
| ||||||
25 | parents and teachers of the school children. This paragraph | ||||||
26 | does not apply
to fundraising
events (i) for the benefit of |
| |||||||
| |||||||
1 | private home instruction or (ii)
for which the fundraising | ||||||
2 | entity purchases the personal property sold at
the events from | ||||||
3 | another individual or entity that sold the property for the
| ||||||
4 | purpose of resale by the fundraising entity and that
profits | ||||||
5 | from the sale to the
fundraising entity. This paragraph is | ||||||
6 | exempt
from the provisions
of Section 3-90.
| ||||||
7 | (29) Beginning January 1, 2000 and through December 31, | ||||||
8 | 2001, new or
used automatic vending
machines that prepare and | ||||||
9 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
10 | items, and replacement parts for these machines.
Beginning | ||||||
11 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
12 | for machines used in
commercial, coin-operated amusement and | ||||||
13 | vending business if a use or occupation
tax is paid on the | ||||||
14 | gross receipts derived from the use of the commercial,
| ||||||
15 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
16 | is exempt from the provisions of Section 3-90.
| ||||||
17 | (30) Beginning January 1, 2001 and through June 30, 2011, | ||||||
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
nonprescription 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 5 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.
| ||||||
2 | (31) Beginning on
the effective date of this amendatory Act | ||||||
3 | of the 92nd General Assembly,
computers and communications | ||||||
4 | equipment
utilized for any hospital purpose and equipment used | ||||||
5 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
6 | purchased by a lessor who leases
the equipment, under a lease | ||||||
7 | of one year or longer executed or in effect at the
time the | ||||||
8 | lessor would otherwise be subject to the tax imposed by this | ||||||
9 | Act, to a
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 nonexempt 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 nonqualifying 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.
This paragraph is exempt from the provisions of | ||||||
26 | Section 3-90.
|
| |||||||
| |||||||
1 | (32) Beginning on
the effective date of this amendatory Act | ||||||
2 | of the 92nd General Assembly,
personal property purchased by a | ||||||
3 | lessor who leases the property,
under a lease of one year or | ||||||
4 | longer executed or in effect at the time the
lessor would | ||||||
5 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
6 | governmental body that has been issued an active sales tax | ||||||
7 | exemption
identification number by the Department under | ||||||
8 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
9 | property is leased in a manner that does not
qualify for this | ||||||
10 | exemption or used in any other nonexempt manner, the lessor
| ||||||
11 | shall be liable for the tax imposed under this Act or the | ||||||
12 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
13 | market value of the property at the time
the nonqualifying use | ||||||
14 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
15 | (however designated) that purports to reimburse that lessor for | ||||||
16 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
17 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
18 | lessor improperly collects any such
amount from the lessee, the | ||||||
19 | lessee shall have a legal right to claim a refund
of that | ||||||
20 | amount from the lessor. If, however, that amount is not | ||||||
21 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
22 | pay that amount to the
Department. This paragraph is exempt | ||||||
23 | from the provisions of Section 3-90.
| ||||||
24 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
25 | the use in this State of motor vehicles of
the second division | ||||||
26 | with a gross vehicle weight in excess of 8,000 pounds and
that |
| |||||||
| |||||||
1 | are subject to the commercial distribution fee imposed under | ||||||
2 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
3 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
4 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
5 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
6 | to the commercial distribution fee imposed under Section | ||||||
7 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
8 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
9 | this exemption applies to repair and
replacement parts added | ||||||
10 | after the initial purchase of such a motor vehicle if
that | ||||||
11 | motor
vehicle is used in a manner that would qualify for the | ||||||
12 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
13 | purposes of this paragraph, the term "used for commercial | ||||||
14 | purposes" means the transportation of persons or property in | ||||||
15 | furtherance of any commercial or industrial enterprise, | ||||||
16 | whether for-hire or not.
| ||||||
17 | (34) Beginning January 1, 2008, tangible personal property | ||||||
18 | used in the construction or maintenance of a community water | ||||||
19 | supply, as defined under Section 3.145 of the Environmental | ||||||
20 | Protection Act, that is operated by a not-for-profit | ||||||
21 | corporation that holds a valid water supply permit issued under | ||||||
22 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
23 | exempt from the provisions of Section 3-90. | ||||||
24 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
25 | eff. 1-1-08; 95-876, eff. 8-21-08.)
|
| |||||||
| |||||||
1 | (35 ILCS 105/3-30) (from Ch. 120, par. 439.3-30)
| ||||||
2 | Sec. 3-30. Graphic arts production. For the purposes of | ||||||
3 | this Act, "graphic
arts production" means the production of | ||||||
4 | tangible personal property for wholesale or retail sale or | ||||||
5 | lease by means of printing, including ink jet printing,
by one | ||||||
6 | or more of the processes
described in Groups 323110 through | ||||||
7 | 323122 of Subsector 323, Groups 511110
through 511199 of | ||||||
8 | Subsector 511, and Group 512230 of Subsector 512 of the North
| ||||||
9 | American Industry Classification System published by the U.S. | ||||||
10 | Office of
Management and Budget, 1997 edition. Graphic arts | ||||||
11 | production does not include
(i) the transfer of images onto | ||||||
12 | paper or other tangible personal property by
means of | ||||||
13 | photocopying or (ii) final printed products in electronic
or | ||||||
14 | audio form, including the production of software or | ||||||
15 | audio-books. For purposes of this Section, persons engaged | ||||||
16 | primarily in the business of printing or publishing newspapers | ||||||
17 | or magazines that qualify as newsprint and ink, by one or more | ||||||
18 | of the processes described in Groups 511110 through 511199 of | ||||||
19 | subsector 511 of the North American Industry Classification | ||||||
20 | System published by the U.S. Office of Management and Budget, | ||||||
21 | 1997 edition, are deemed to be engaged in graphic arts | ||||||
22 | production.
| ||||||
23 | (Source: P.A. 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)
| ||||||
24 | (35 ILCS 105/3-85)
| ||||||
25 | Sec. 3-85. Manufacturer's Purchase Credit. For purchases |
| |||||||
| |||||||
1 | of machinery and
equipment made on and after January 1, 1995 | ||||||
2 | through June 30, 2003, and on and after September 1, 2004 | ||||||
3 | through August 30, 2014 ,
a
purchaser of manufacturing
machinery | ||||||
4 | and equipment that qualifies for the exemption provided by
| ||||||
5 | paragraph (18) of Section 3-5 of this Act earns a credit in an | ||||||
6 | amount equal to
a fixed percentage of the tax which would have | ||||||
7 | been incurred under this Act on
those purchases.
For purchases | ||||||
8 | of graphic arts machinery and equipment made on or after July
| ||||||
9 | 1, 1996 and through June 30, 2003, and on and after September | ||||||
10 | 1, 2004 through August 30, 2014 , a purchaser of graphic arts | ||||||
11 | machinery
and equipment that qualifies for
the exemption | ||||||
12 | provided by paragraph (6) of Section 3-5 of this Act earns a
| ||||||
13 | credit in an amount equal to a fixed percentage of the tax that | ||||||
14 | would have been
incurred under this Act on those purchases.
The | ||||||
15 | credit earned for purchases of manufacturing machinery and | ||||||
16 | equipment or
graphic arts machinery and equipment shall be | ||||||
17 | referred to as the
Manufacturer's Purchase
Credit.
A graphic | ||||||
18 | arts producer is a person engaged in graphic arts production as
| ||||||
19 | defined in Section 2-30 of the Retailers' Occupation Tax Act. | ||||||
20 | Beginning July
1, 1996, all references in this Section to | ||||||
21 | manufacturers or manufacturing shall
also be deemed to refer to | ||||||
22 | graphic arts producers or graphic arts production.
| ||||||
23 | The amount of credit shall be a percentage of the tax that | ||||||
24 | would have
been incurred on the purchase of manufacturing | ||||||
25 | machinery and equipment
or graphic arts machinery and equipment
| ||||||
26 | if the exemptions provided by paragraph (6) or paragraph
(18) |
| |||||||
| |||||||
1 | of Section 3-5
of this Act had not been applicable. The | ||||||
2 | percentage shall be as follows:
| ||||||
3 | (1) 15% for purchases made on or before June 30, 1995.
| ||||||
4 | (2) 25% for purchases made after June 30, 1995, and on | ||||||
5 | or before June 30,
1996.
| ||||||
6 | (3) 40% for purchases made after June 30, 1996, and on | ||||||
7 | or before June 30,
1997.
| ||||||
8 | (4) 50% for purchases made on or after July 1, 1997.
| ||||||
9 | (a) Manufacturer's Purchase Credit earned prior to July 1, | ||||||
10 | 2003. This subsection (a) applies to Manufacturer's Purchase | ||||||
11 | Credit earned prior to July 1, 2003. A purchaser of production | ||||||
12 | related tangible personal property desiring to use
the | ||||||
13 | Manufacturer's Purchase Credit shall certify to the seller | ||||||
14 | prior to
October 1, 2003 that the
purchaser is satisfying all | ||||||
15 | or part of the liability under the Use Tax Act or
the Service | ||||||
16 | Use Tax Act that is due on the
purchase of the production | ||||||
17 | related tangible personal property by use of
Manufacturer's | ||||||
18 | Purchase Credit. The Manufacturer's Purchase Credit
| ||||||
19 | certification must be dated and shall include the name and | ||||||
20 | address of the
purchaser, the purchaser's registration number, | ||||||
21 | if registered, the credit being
applied, and a statement that | ||||||
22 | the State Use Tax or Service Use Tax liability is
being | ||||||
23 | satisfied with the manufacturer's or graphic arts producer's
| ||||||
24 | accumulated purchase credit.
Certification may be incorporated | ||||||
25 | into the manufacturer's or graphic arts
producer's purchase | ||||||
26 | order.
Manufacturer's Purchase Credit certification provided |
| |||||||
| |||||||
1 | by the manufacturer
or graphic
arts producer prior to October | ||||||
2 | 1, 2003 may be used to
satisfy the retailer's or serviceman's | ||||||
3 | liability under the Retailers'
Occupation Tax Act or Service | ||||||
4 | Occupation Tax Act for the credit claimed, not to
exceed 6.25% | ||||||
5 | of the receipts subject to tax from a qualifying purchase, but
| ||||||
6 | only if the retailer or serviceman reports the Manufacturer's | ||||||
7 | Purchase Credit
claimed as required by the Department. A | ||||||
8 | Manufacturer's Purchase Credit
reported on any original or | ||||||
9 | amended return
filed under
this Act after October 20, 2003 | ||||||
10 | shall be disallowed. The Manufacturer's
Purchase Credit
earned | ||||||
11 | by purchase of exempt manufacturing machinery and equipment
or | ||||||
12 | graphic arts machinery and equipment is a non-transferable | ||||||
13 | credit. A
manufacturer or graphic arts producer that enters | ||||||
14 | into a
contract involving the installation of tangible personal | ||||||
15 | property
into real estate within a manufacturing or graphic | ||||||
16 | arts production facility
may, prior to October 1, 2003, | ||||||
17 | authorize a construction contractor
to utilize credit | ||||||
18 | accumulated by the manufacturer or graphic arts producer
to
| ||||||
19 | purchase the tangible personal property. A manufacturer or | ||||||
20 | graphic arts
producer
intending to use accumulated credit to | ||||||
21 | purchase such tangible personal
property shall execute a | ||||||
22 | written contract authorizing the contractor to utilize
a | ||||||
23 | specified dollar amount of credit. The contractor shall | ||||||
24 | furnish, prior to
October 1, 2003, the supplier
with the | ||||||
25 | manufacturer's or graphic arts producer's name, registration | ||||||
26 | or
resale
number, and a statement that a specific amount of the |
| |||||||
| |||||||
1 | Use Tax or Service Use
Tax liability, not to exceed 6.25% of | ||||||
2 | the selling price, is being satisfied
with the credit. The | ||||||
3 | manufacturer or graphic arts producer shall remain
liable to | ||||||
4 | timely report all
information required by the annual Report of | ||||||
5 | Manufacturer's Purchase Credit
Used for all credit utilized by | ||||||
6 | a construction contractor.
| ||||||
7 | No Manufacturer's Purchase Credit earned prior to July 1, | ||||||
8 | 2003 may be used after October 1, 2003. The Manufacturer's | ||||||
9 | Purchase Credit may be used to satisfy liability under the
Use | ||||||
10 | Tax Act or the Service Use Tax Act due on the purchase of | ||||||
11 | production
related tangible personal property (including | ||||||
12 | purchases by a manufacturer, by
a graphic arts producer, or by
| ||||||
13 | a lessor who rents or leases the use of the property to a | ||||||
14 | manufacturer or
graphic arts producer)
that does not otherwise | ||||||
15 | qualify
for the manufacturing machinery and equipment
| ||||||
16 | exemption or the graphic arts machinery and equipment | ||||||
17 | exemption.
"Production related
tangible personal property" | ||||||
18 | means (i) all tangible personal property used or
consumed by | ||||||
19 | the purchaser in a manufacturing facility in which a | ||||||
20 | manufacturing
process described in Section 2-45 of the | ||||||
21 | Retailers' Occupation Tax Act takes
place, including tangible | ||||||
22 | personal property purchased for incorporation into
real estate | ||||||
23 | within a manufacturing facility
and including, but not limited | ||||||
24 | to, tangible
personal property used or consumed in activities | ||||||
25 | such as preproduction material
handling, receiving, quality | ||||||
26 | control, inventory control, storage, staging, and
packaging |
| |||||||
| |||||||
1 | for shipping and transportation purposes; (ii) all tangible
| ||||||
2 | personal property used or consumed by the purchaser in a | ||||||
3 | graphic arts facility
in which graphic arts production as | ||||||
4 | described in Section 2-30 of the Retailers'
Occupation Tax Act | ||||||
5 | takes place, including tangible personal property purchased
| ||||||
6 | for incorporation into real estate within a graphic arts | ||||||
7 | facility and
including, but not limited to, all tangible | ||||||
8 | personal property used or consumed
in activities such as | ||||||
9 | graphic arts preliminary or pre-press production,
| ||||||
10 | pre-production material handling, receiving, quality control, | ||||||
11 | inventory
control, storage, staging, sorting, labeling, | ||||||
12 | mailing, tying, wrapping, and
packaging; and (iii) all tangible
| ||||||
13 | personal property used or consumed by the purchaser
for | ||||||
14 | research and development.
"Production related tangible | ||||||
15 | personal property" does not include (i) tangible
personal | ||||||
16 | property used, within or without a manufacturing facility, in | ||||||
17 | sales,
purchasing, accounting, fiscal management, marketing, | ||||||
18 | personnel recruitment or
selection, or landscaping or (ii) | ||||||
19 | tangible personal property required to be
titled or registered | ||||||
20 | with a department, agency, or unit of federal, state, or
local | ||||||
21 | government. The Manufacturer's Purchase Credit may be used, | ||||||
22 | prior to
October 1, 2003, to satisfy
the tax arising either | ||||||
23 | from the purchase of
machinery and equipment on or after | ||||||
24 | January 1,
1995 for which the exemption
provided by paragraph | ||||||
25 | (18) of Section 3-5 of this Act was
erroneously claimed, or the | ||||||
26 | purchase of machinery and equipment on or after
July 1, 1996 |
| |||||||
| |||||||
1 | for which the exemption provided by paragraph (6) of Section | ||||||
2 | 3-5
of this Act was erroneously claimed, but not in
| ||||||
3 | satisfaction of penalty, if any, and interest for failure to | ||||||
4 | pay the tax
when due. A
purchaser of production related | ||||||
5 | tangible personal property who is required to
pay Illinois Use | ||||||
6 | Tax or Service Use Tax on the purchase directly to the
| ||||||
7 | Department may, prior to October 1, 2003, utilize the | ||||||
8 | Manufacturer's
Purchase Credit in satisfaction of
the tax | ||||||
9 | arising from that purchase, but not in
satisfaction of penalty | ||||||
10 | and interest.
A purchaser who uses the Manufacturer's Purchase | ||||||
11 | Credit to purchase property
which is later determined not to be | ||||||
12 | production related tangible personal
property may be liable for | ||||||
13 | tax, penalty, and interest on the purchase of that
property as | ||||||
14 | of the date of purchase but shall be entitled to use the | ||||||
15 | disallowed
Manufacturer's Purchase
Credit, so long as it has | ||||||
16 | not expired and is used prior to October 1, 2003,
on qualifying | ||||||
17 | purchases of production
related tangible personal property not | ||||||
18 | previously subject to credit usage.
The Manufacturer's | ||||||
19 | Purchase Credit earned by a manufacturer or graphic arts
| ||||||
20 | producer
expires the last day of the second calendar year | ||||||
21 | following the
calendar year in which the credit arose. No | ||||||
22 | Manufacturer's Purchase Credit
may be used after September 30, | ||||||
23 | 2003
regardless of
when that credit was earned.
| ||||||
24 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
25 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
26 | Credit Earned for each calendar year
no later than the last day |
| |||||||
| |||||||
1 | of the sixth month following the calendar year in
which a | ||||||
2 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
3 | Manufacturer's
Purchase Credit Earned shall be filed on forms | ||||||
4 | as prescribed or approved by the
Department and shall state, | ||||||
5 | for each month of the calendar year: (i) the total
purchase | ||||||
6 | price of all purchases of exempt manufacturing or graphic arts
| ||||||
7 | machinery on which the
credit was earned; (ii) the total State | ||||||
8 | Use Tax or Service Use Tax which would
have been due on those | ||||||
9 | items; (iii) the percentage used to calculate the amount
of | ||||||
10 | credit earned; (iv) the amount of credit earned; and (v) such | ||||||
11 | other
information as the Department may reasonably require. A | ||||||
12 | purchaser earning
Manufacturer's Purchase Credit shall | ||||||
13 | maintain records which identify, as to
each purchase of | ||||||
14 | manufacturing or graphic arts machinery and equipment
on which | ||||||
15 | the purchaser
earned Manufacturer's Purchase Credit, the | ||||||
16 | vendor (including, if applicable,
either the vendor's | ||||||
17 | registration number or Federal Employer Identification
| ||||||
18 | Number), the purchase price, and the amount of Manufacturer's | ||||||
19 | Purchase Credit
earned on each purchase.
| ||||||
20 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
21 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
22 | Credit Used for each calendar year no
later than the last day | ||||||
23 | of the sixth month following the calendar year in which
a | ||||||
24 | Manufacturer's Purchase Credit is used. A Report of | ||||||
25 | Manufacturer's Purchase
Credit Used
shall be filed on forms as | ||||||
26 | prescribed or approved by the Department and
shall state, for |
| |||||||
| |||||||
1 | each month of the calendar year: (i) the total purchase price
| ||||||
2 | of production related tangible personal property purchased | ||||||
3 | from Illinois
suppliers; (ii) the total purchase price of | ||||||
4 | production related tangible
personal property purchased from | ||||||
5 | out-of-state suppliers; (iii) the total amount
of credit used | ||||||
6 | during such month; and (iv) such
other information as the | ||||||
7 | Department may reasonably require. A purchaser using
| ||||||
8 | Manufacturer's Purchase Credit shall maintain records that | ||||||
9 | identify, as to
each purchase of production related tangible | ||||||
10 | personal property on which the
purchaser used Manufacturer's | ||||||
11 | Purchase Credit, the vendor (including, if
applicable, either | ||||||
12 | the vendor's registration number or Federal Employer
| ||||||
13 | Identification Number), the purchase price, and the amount of | ||||||
14 | Manufacturer's
Purchase Credit used on each purchase.
| ||||||
15 | No annual report shall be filed before May 1, 1996 or after | ||||||
16 | June 30,
2004. A purchaser that fails to
file an annual Report | ||||||
17 | of Manufacturer's Purchase Credit Earned or an annual
Report of | ||||||
18 | Manufacturer's
Purchase Credit Used by the last day of the | ||||||
19 | sixth month following the
end of the calendar year shall | ||||||
20 | forfeit all Manufacturer's Purchase Credit for
that calendar | ||||||
21 | year unless it establishes that its failure to file was due to
| ||||||
22 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
23 | be amended
to report and claim credit on qualifying purchases | ||||||
24 | not previously reported at
any time before the credit would | ||||||
25 | have expired, unless both the Department and
the purchaser have | ||||||
26 | agreed to an extension of
the statute of limitations for the |
| |||||||
| |||||||
1 | issuance of a notice of tax liability as
provided in Section 4 | ||||||
2 | of the Retailers' Occupation Tax Act. If the time for
| ||||||
3 | assessment or refund has been extended, then amended reports | ||||||
4 | for a calendar
year may be filed at any time prior to the date | ||||||
5 | to which the statute of
limitations for the calendar year or | ||||||
6 | portion thereof has been extended.
No Manufacturer's Purchase
| ||||||
7 | Credit report filed with the Department for periods prior to | ||||||
8 | January 1, 1995
shall be approved.
Manufacturer's Purchase | ||||||
9 | Credit claimed on an amended report may be used,
until October | ||||||
10 | 1, 2003, to
satisfy tax liability under the Use Tax Act or the | ||||||
11 | Service Use Tax Act (i) on
qualifying purchases of production | ||||||
12 | related tangible personal property made
after the date the | ||||||
13 | amended report is filed or (ii) assessed by the Department
on | ||||||
14 | qualifying purchases of production related tangible personal | ||||||
15 | property made
in the case of manufacturers
on or after January | ||||||
16 | 1, 1995, or in the case of graphic arts producers on or
after | ||||||
17 | July 1, 1996.
| ||||||
18 | If the purchaser is not the manufacturer or a graphic arts | ||||||
19 | producer, but
rents or
leases the use of the property to a | ||||||
20 | manufacturer or graphic arts producer,
the purchaser may earn,
| ||||||
21 | report, and use Manufacturer's Purchase Credit in the same | ||||||
22 | manner as a
manufacturer or graphic arts producer.
| ||||||
23 | A purchaser shall not be entitled to any Manufacturer's | ||||||
24 | Purchase
Credit for a purchase that is required to be reported | ||||||
25 | and is not timely
reported as provided in this Section. A | ||||||
26 | purchaser remains liable for (i) any
tax that was satisfied by |
| |||||||
| |||||||
1 | use of a Manufacturer's Purchase Credit, as of the
date of | ||||||
2 | purchase, if that use is not timely reported as required in | ||||||
3 | this
Section and (ii) for any applicable penalties and interest | ||||||
4 | for failing to pay
the tax when due. No Manufacturer's Purchase | ||||||
5 | Credit may be used after
September 30, 2003 to
satisfy any
tax | ||||||
6 | liability imposed under this Act, including any audit | ||||||
7 | liability.
| ||||||
8 | (b) Manufacturer's Purchase Credit earned on and after | ||||||
9 | September 1, 2004. This subsection (b) applies to | ||||||
10 | Manufacturer's Purchase Credit earned on and after September 1, | ||||||
11 | 2004. Manufacturer's Purchase Credit earned on or after | ||||||
12 | September 1, 2004 may only be used to satisfy the Use Tax or | ||||||
13 | Service Use Tax liability incurred on production related | ||||||
14 | tangible personal property purchased on or after September 1, | ||||||
15 | 2004. A purchaser of production related tangible personal | ||||||
16 | property desiring to use the Manufacturer's Purchase Credit | ||||||
17 | shall certify to the seller that the purchaser is satisfying | ||||||
18 | all or part of the liability under the Use Tax Act or the | ||||||
19 | Service Use Tax Act that is due on the purchase of the | ||||||
20 | production related tangible personal property by use of | ||||||
21 | Manufacturer's Purchase Credit. The Manufacturer's Purchase | ||||||
22 | Credit certification must be dated and shall include the name | ||||||
23 | and address of the purchaser, the purchaser's registration | ||||||
24 | number, if registered, the credit being applied, and a | ||||||
25 | statement that the State Use Tax or Service Use Tax liability | ||||||
26 | is being satisfied with the manufacturer's or graphic arts |
| |||||||
| |||||||
1 | producer's accumulated purchase credit. Certification may be | ||||||
2 | incorporated into the manufacturer's or graphic arts | ||||||
3 | producer's purchase order. Manufacturer's Purchase Credit | ||||||
4 | certification provided by the manufacturer or graphic arts | ||||||
5 | producer may be used to satisfy the retailer's or serviceman's | ||||||
6 | liability under the Retailers' Occupation Tax Act or Service | ||||||
7 | Occupation Tax Act for the credit claimed, not to exceed 6.25% | ||||||
8 | of the receipts subject to tax from a qualifying purchase, but | ||||||
9 | only if the retailer or serviceman reports the Manufacturer's | ||||||
10 | Purchase Credit claimed as required by the Department. The | ||||||
11 | Manufacturer's Purchase Credit earned by purchase of exempt | ||||||
12 | manufacturing machinery and equipment or graphic arts | ||||||
13 | machinery and equipment is a non-transferable credit. A | ||||||
14 | manufacturer or graphic arts producer that enters into a | ||||||
15 | contract involving the installation of tangible personal | ||||||
16 | property into real estate within a manufacturing or graphic | ||||||
17 | arts production facility may, on or after September 1, 2004, | ||||||
18 | authorize a construction contractor to utilize credit | ||||||
19 | accumulated by the manufacturer or graphic arts producer to | ||||||
20 | purchase the tangible personal property. A manufacturer or | ||||||
21 | graphic arts producer intending to use accumulated credit to | ||||||
22 | purchase such tangible personal property shall execute a | ||||||
23 | written contract authorizing the contractor to utilize a | ||||||
24 | specified dollar amount of credit. The contractor shall furnish | ||||||
25 | the supplier with the manufacturer's or graphic arts producer's | ||||||
26 | name, registration or resale number, and a statement that a |
| |||||||
| |||||||
1 | specific amount of the Use Tax or Service Use Tax liability, | ||||||
2 | not to exceed 6.25% of the selling price, is being satisfied | ||||||
3 | with the credit. The manufacturer or graphic arts producer | ||||||
4 | shall remain liable to timely report all information required | ||||||
5 | by the annual Report of Manufacturer's Purchase Credit Used for | ||||||
6 | all credit utilized by a construction contractor. | ||||||
7 | The Manufacturer's Purchase Credit may be used to satisfy | ||||||
8 | liability under the Use Tax Act or the Service Use Tax Act due | ||||||
9 | on the purchase, made on or after September 1, 2004, of | ||||||
10 | production related tangible personal property (including | ||||||
11 | purchases by a manufacturer, by a graphic arts producer, or by | ||||||
12 | a lessor who rents or leases the use of the property to a | ||||||
13 | manufacturer or graphic arts producer) that does not otherwise | ||||||
14 | qualify for the manufacturing machinery and equipment | ||||||
15 | exemption or the graphic arts machinery and equipment | ||||||
16 | exemption. "Production related tangible personal property" | ||||||
17 | means (i) all tangible personal property used or consumed by | ||||||
18 | the purchaser in a manufacturing facility in which a | ||||||
19 | manufacturing process described in Section 2-45 of the | ||||||
20 | Retailers' Occupation Tax Act takes place, including tangible | ||||||
21 | personal property purchased for incorporation into real estate | ||||||
22 | within a manufacturing facility and including, but not limited | ||||||
23 | to, tangible personal property used or consumed in activities | ||||||
24 | such as preproduction material handling, receiving, quality | ||||||
25 | control, inventory control, storage, staging, and packaging | ||||||
26 | for shipping and transportation purposes; (ii) all tangible |
| |||||||
| |||||||
1 | personal property used or consumed by the purchaser in a | ||||||
2 | graphic arts facility in which graphic arts production as | ||||||
3 | described in Section 2-30 of the Retailers' Occupation Tax Act | ||||||
4 | takes place, including tangible personal property purchased | ||||||
5 | for incorporation into real estate within a graphic arts | ||||||
6 | facility and including, but not limited to, all tangible | ||||||
7 | personal property used or consumed in activities such as | ||||||
8 | graphic arts preliminary or pre-press production, | ||||||
9 | pre-production material handling, receiving, quality control, | ||||||
10 | inventory control, storage, staging, sorting, labeling, | ||||||
11 | mailing, tying, wrapping, and packaging; and (iii) all tangible | ||||||
12 | personal property used or consumed by the purchaser for | ||||||
13 | research and development. "Production related tangible | ||||||
14 | personal property" does not include (i) tangible personal | ||||||
15 | property used, within or without a manufacturing facility, in | ||||||
16 | sales, purchasing, accounting, fiscal management, marketing, | ||||||
17 | personnel recruitment or selection, or landscaping or (ii) | ||||||
18 | tangible personal property required to be titled or registered | ||||||
19 | with a department, agency, or unit of federal, state, or local | ||||||
20 | government. The Manufacturer's Purchase Credit may be used to | ||||||
21 | satisfy the tax arising either from the purchase of machinery | ||||||
22 | and equipment on or after September 1, 2004 for which the | ||||||
23 | exemption provided by paragraph (18) of Section 3-5 of this Act | ||||||
24 | was erroneously claimed, or the purchase of machinery and | ||||||
25 | equipment on or after September 1, 2004 for which the exemption | ||||||
26 | provided by paragraph (6) of Section 3-5 of this Act was |
| |||||||
| |||||||
1 | erroneously claimed, but not in satisfaction of penalty, if | ||||||
2 | any, and interest for failure to pay the tax when due. A | ||||||
3 | purchaser of production related tangible personal property | ||||||
4 | that is purchased on or after September 1, 2004 who is required | ||||||
5 | to pay Illinois Use Tax or Service Use Tax on the purchase | ||||||
6 | directly to the Department may utilize the Manufacturer's | ||||||
7 | Purchase Credit in satisfaction of the tax arising from that | ||||||
8 | purchase, but not in satisfaction of penalty and interest. A | ||||||
9 | purchaser who uses the Manufacturer's Purchase Credit to | ||||||
10 | purchase property on and after September 1, 2004 which is later | ||||||
11 | determined not to be production related tangible personal | ||||||
12 | property may be liable for tax, penalty, and interest on the | ||||||
13 | purchase of that property as of the date of purchase but shall | ||||||
14 | be entitled to use the disallowed Manufacturer's Purchase | ||||||
15 | Credit, so long as it has not expired and is used on qualifying | ||||||
16 | purchases of production related tangible personal property not | ||||||
17 | previously subject to credit usage. The Manufacturer's | ||||||
18 | Purchase Credit earned by a manufacturer or graphic arts | ||||||
19 | producer expires the last day of the second calendar year | ||||||
20 | following the calendar year in which the credit arose.
A | ||||||
21 | purchaser earning Manufacturer's Purchase Credit shall sign | ||||||
22 | and file an annual Report of Manufacturer's Purchase Credit | ||||||
23 | Earned for each calendar year no later than the last day of the | ||||||
24 | sixth month following the calendar year in which a | ||||||
25 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
26 | Manufacturer's Purchase Credit Earned shall be filed on forms |
| |||||||
| |||||||
1 | as prescribed or approved by the Department and shall state, | ||||||
2 | for each month of the calendar year: (i) the total purchase | ||||||
3 | price of all purchases of exempt manufacturing or graphic arts | ||||||
4 | machinery on which the credit was earned; (ii) the total State | ||||||
5 | Use Tax or Service Use Tax which would have been due on those | ||||||
6 | items; (iii) the percentage used to calculate the amount of | ||||||
7 | credit earned; (iv) the amount of credit earned; and (v) such | ||||||
8 | other information as the Department may reasonably require. A | ||||||
9 | purchaser earning Manufacturer's Purchase Credit shall | ||||||
10 | maintain records which identify, as to each purchase of | ||||||
11 | manufacturing or graphic arts machinery and equipment on which | ||||||
12 | the purchaser earned Manufacturer's Purchase Credit, the | ||||||
13 | vendor (including, if applicable, either the vendor's | ||||||
14 | registration number or Federal Employer Identification | ||||||
15 | Number), the purchase price, and the amount of Manufacturer's | ||||||
16 | Purchase Credit earned on each purchase.
A purchaser using | ||||||
17 | Manufacturer's Purchase Credit shall sign and file an annual | ||||||
18 | Report of Manufacturer's Purchase Credit Used for each calendar | ||||||
19 | year no later than the last day of the sixth month following | ||||||
20 | the calendar year in which a Manufacturer's Purchase Credit is | ||||||
21 | used. A Report of Manufacturer's Purchase Credit Used shall be | ||||||
22 | filed on forms as prescribed or approved by the Department and | ||||||
23 | shall state, for each month of the calendar year: (i) the total | ||||||
24 | purchase price of production related tangible personal | ||||||
25 | property purchased from Illinois suppliers; (ii) the total | ||||||
26 | purchase price of production related tangible personal |
| |||||||
| |||||||
1 | property purchased from out-of-state suppliers; (iii) the | ||||||
2 | total amount of credit used during such month; and (iv) such | ||||||
3 | other information as the Department may reasonably require. A | ||||||
4 | purchaser using Manufacturer's Purchase Credit shall maintain | ||||||
5 | records that identify, as to each purchase of production | ||||||
6 | related tangible personal property on which the purchaser used | ||||||
7 | Manufacturer's Purchase Credit, the vendor (including, if | ||||||
8 | applicable, either the vendor's registration number or Federal | ||||||
9 | Employer Identification Number), the purchase price, and the | ||||||
10 | amount of Manufacturer's Purchase Credit used on each purchase. | ||||||
11 | A purchaser that fails to file an annual Report of | ||||||
12 | Manufacturer's Purchase Credit Earned or an annual Report of | ||||||
13 | Manufacturer's Purchase Credit Used by the last day of the | ||||||
14 | sixth month following the end of the calendar year shall | ||||||
15 | forfeit all Manufacturer's Purchase Credit for that calendar | ||||||
16 | year unless it establishes that its failure to file was due to | ||||||
17 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
18 | be amended to report and claim credit on qualifying purchases | ||||||
19 | not previously reported at any time before the credit would | ||||||
20 | have expired, unless both the Department and the purchaser have | ||||||
21 | agreed to an extension of the statute of limitations for the | ||||||
22 | issuance of a notice of tax liability as provided in Section 4 | ||||||
23 | of the Retailers' Occupation Tax Act. If the time for | ||||||
24 | assessment or refund has been extended, then amended reports | ||||||
25 | for a calendar year may be filed at any time prior to the date | ||||||
26 | to which the statute of limitations for the calendar year or |
| |||||||
| |||||||
1 | portion thereof has been extended. Manufacturer's Purchase | ||||||
2 | Credit claimed on an amended report may be used to satisfy tax | ||||||
3 | liability under the Use Tax Act or the Service Use Tax Act (i) | ||||||
4 | on qualifying purchases of production related tangible | ||||||
5 | personal property made after the date the amended report is | ||||||
6 | filed or (ii) assessed by the Department on qualifying | ||||||
7 | production related tangible personal property purchased on or | ||||||
8 | after September 1, 2004. If the purchaser is not the | ||||||
9 | manufacturer or a graphic arts producer, but rents or leases | ||||||
10 | the use of the property to a manufacturer or graphic arts | ||||||
11 | producer, the purchaser may earn, report, and use | ||||||
12 | Manufacturer's Purchase Credit in the same manner as a | ||||||
13 | manufacturer or graphic arts producer.
A purchaser shall not be | ||||||
14 | entitled to any Manufacturer's Purchase Credit for a purchase | ||||||
15 | that is required to be reported and is not timely reported as | ||||||
16 | provided in this Section. A purchaser remains liable for (i) | ||||||
17 | any tax that was satisfied by use of a Manufacturer's Purchase | ||||||
18 | Credit, as of the date of purchase, if that use is not timely | ||||||
19 | reported as required in this Section and (ii) for any | ||||||
20 | applicable penalties and interest for failing to pay the tax | ||||||
21 | when due. | ||||||
22 | (Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04.)
| ||||||
23 | Section 15. The Service Use Tax Act is amended by changing | ||||||
24 | Sections 3-5, 3-30, and 3-70 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| ||||||
2 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
3 | personal property
is exempt from the tax imposed by this Act:
| ||||||
4 | (1) Personal property purchased from a corporation, | ||||||
5 | society,
association, foundation, institution, or | ||||||
6 | organization, other than a limited
liability company, that is | ||||||
7 | organized and operated as a not-for-profit service
enterprise | ||||||
8 | for the benefit of persons 65 years of age or older if the | ||||||
9 | personal
property was not purchased by the enterprise for the | ||||||
10 | purpose of resale by the
enterprise.
| ||||||
11 | (2) Personal property purchased by a non-profit Illinois | ||||||
12 | county fair
association for use in conducting, operating, or | ||||||
13 | promoting the county fair.
| ||||||
14 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
15 | cultural
organization that establishes, by proof required by | ||||||
16 | the Department by rule,
that it has received an exemption under | ||||||
17 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
18 | organized and operated primarily for the
presentation
or | ||||||
19 | support of arts or cultural programming, activities, or | ||||||
20 | services. These
organizations include, but are not limited to, | ||||||
21 | music and dramatic arts
organizations such as symphony | ||||||
22 | orchestras and theatrical groups, arts and
cultural service | ||||||
23 | organizations, local arts councils, visual arts organizations,
| ||||||
24 | and media arts organizations.
On and after the effective date | ||||||
25 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
26 | an entity otherwise eligible for this exemption shall not
make |
| |||||||
| |||||||
1 | tax-free purchases unless it has an active identification | ||||||
2 | number issued by
the Department.
| ||||||
3 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
4 | coinage issued
by the State of Illinois, the government of the | ||||||
5 | United States of America,
or the government of any foreign | ||||||
6 | country, and bullion.
| ||||||
7 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
8 | 2004 through August 30, 2014 , graphic arts machinery and | ||||||
9 | equipment, including
repair and
replacement parts, both new and | ||||||
10 | used, and including that manufactured on
special order or | ||||||
11 | purchased for lease, certified by the purchaser to be used
| ||||||
12 | primarily for graphic arts production.
Equipment includes | ||||||
13 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
14 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
15 | immediate
change upon a graphic arts product.
| ||||||
16 | (6) Personal property purchased from a teacher-sponsored | ||||||
17 | student
organization affiliated with an elementary or | ||||||
18 | secondary school located
in Illinois.
| ||||||
19 | (7) Farm machinery and equipment, both new and used, | ||||||
20 | including that
manufactured on special order, certified by the | ||||||
21 | purchaser to be used
primarily for production agriculture or | ||||||
22 | State or federal agricultural
programs, including individual | ||||||
23 | replacement parts for the machinery and
equipment, including | ||||||
24 | machinery and equipment purchased for lease,
and including | ||||||
25 | implements of husbandry defined in Section 1-130 of
the | ||||||
26 | Illinois Vehicle Code, farm machinery and agricultural |
| |||||||
| |||||||
1 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
2 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
3 | but
excluding other motor vehicles required to be registered | ||||||
4 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
5 | hoop houses used for propagating, growing, or
overwintering | ||||||
6 | plants shall be considered farm machinery and equipment under
| ||||||
7 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
8 | shall include units sold
separately from a motor vehicle | ||||||
9 | required to be licensed and units sold mounted
on a motor | ||||||
10 | vehicle required to be licensed if the selling price of the | ||||||
11 | tender
is separately stated.
| ||||||
12 | Farm machinery and equipment shall include precision | ||||||
13 | farming equipment
that is
installed or purchased to be | ||||||
14 | installed on farm machinery and equipment
including, but not | ||||||
15 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
16 | or spreaders.
Precision farming equipment includes, but is not | ||||||
17 | limited to,
soil testing sensors, computers, monitors, | ||||||
18 | software, global positioning
and mapping systems, and other | ||||||
19 | such equipment.
| ||||||
20 | Farm machinery and equipment also includes computers, | ||||||
21 | sensors, software, and
related equipment used primarily in the
| ||||||
22 | computer-assisted operation of production agriculture | ||||||
23 | facilities, equipment,
and activities such as, but
not limited | ||||||
24 | to,
the collection, monitoring, and correlation of
animal and | ||||||
25 | crop data for the purpose of
formulating animal diets and | ||||||
26 | agricultural chemicals. This item (7) is exempt
from the |
| |||||||
| |||||||
1 | provisions of
Section 3-75.
| ||||||
2 | (8) Fuel and petroleum products sold to or used by an air | ||||||
3 | common
carrier, certified by the carrier to be used for | ||||||
4 | consumption, shipment, or
storage in the conduct of its | ||||||
5 | business as an air common carrier, for a
flight destined for or | ||||||
6 | returning from a location or locations
outside the United | ||||||
7 | States without regard to previous or subsequent domestic
| ||||||
8 | stopovers.
| ||||||
9 | (9) Proceeds of mandatory service charges separately | ||||||
10 | stated on
customers' bills for the purchase and consumption of | ||||||
11 | food and beverages
acquired as an incident to the purchase of a | ||||||
12 | service from a serviceman, to
the extent that the proceeds of | ||||||
13 | the 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) Proceeds from the sale of photoprocessing machinery | ||||||
2 | and
equipment, including repair and replacement parts, both new | ||||||
3 | and
used, including that manufactured on special order, | ||||||
4 | certified by the
purchaser to be used primarily for | ||||||
5 | photoprocessing, and including
photoprocessing machinery and | ||||||
6 | equipment purchased for lease.
| ||||||
7 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
8 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
9 | equipment, including
replacement parts and equipment, and | ||||||
10 | including
equipment purchased for lease, but excluding motor | ||||||
11 | vehicles required to be
registered under the Illinois Vehicle | ||||||
12 | Code.
| ||||||
13 | (13) Semen used for artificial insemination of livestock | ||||||
14 | for direct
agricultural production.
| ||||||
15 | (14) Horses, or interests in horses, registered with and | ||||||
16 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
17 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
18 | Horse Association, United States
Trotting Association, or | ||||||
19 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
20 | racing for prizes. This item (14) is exempt from the provisions | ||||||
21 | of Section 3-75, and the exemption provided for under this item | ||||||
22 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
23 | claim for credit or refund is allowed on or after the effective | ||||||
24 | date of this amendatory Act of the 95th General Assembly for | ||||||
25 | such taxes paid during the period beginning May 30, 2000 and | ||||||
26 | ending on the effective date of this amendatory Act of the 95th |
| |||||||
| |||||||
1 | General Assembly.
| ||||||
2 | (15) Computers and communications equipment utilized for | ||||||
3 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
4 | analysis, or treatment of hospital patients purchased by a | ||||||
5 | lessor who leases
the
equipment, under a lease of one year or | ||||||
6 | longer executed or in effect at the
time
the lessor would | ||||||
7 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
8 | hospital
that has been issued an active tax exemption | ||||||
9 | identification number by the
Department under Section 1g of the | ||||||
10 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
11 | manner that does not qualify for
this exemption
or is used in | ||||||
12 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
13 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
14 | be, based on the fair market value of the property at the time | ||||||
15 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
16 | attempt to collect an
amount (however
designated) that purports | ||||||
17 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
18 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
19 | the lessor. If a lessor improperly collects any such amount | ||||||
20 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
21 | refund of that amount
from the lessor. If, however, that amount | ||||||
22 | is not refunded to the lessee for
any reason, the lessor is | ||||||
23 | liable to pay that amount to the Department.
| ||||||
24 | (16) Personal property purchased by a lessor who leases the
| ||||||
25 | property, under
a
lease of one year or longer executed or in | ||||||
26 | effect at the time
the lessor would otherwise be subject to the |
| |||||||
| |||||||
1 | tax imposed by this Act,
to a governmental body
that has been | ||||||
2 | issued an active tax exemption identification number by the
| ||||||
3 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
4 | Act.
If the
property is leased in a manner that does not | ||||||
5 | qualify for
this exemption
or is used in any other non-exempt | ||||||
6 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
7 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
8 | fair market value of the property at the time the
| ||||||
9 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
10 | to collect an
amount (however
designated) that purports to | ||||||
11 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
12 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
13 | the lessor. If a lessor improperly collects any such amount | ||||||
14 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
15 | refund of that amount
from the lessor. If, however, that amount | ||||||
16 | is not refunded to the lessee for
any reason, the lessor is | ||||||
17 | liable to pay that amount to the Department.
| ||||||
18 | (17) Beginning with taxable years ending on or after | ||||||
19 | December
31,
1995
and
ending with taxable years ending on or | ||||||
20 | before December 31, 2004,
personal property that is
donated for | ||||||
21 | disaster relief to be used in a State or federally declared
| ||||||
22 | disaster area in Illinois or bordering Illinois by a | ||||||
23 | manufacturer or retailer
that is registered in this State to a | ||||||
24 | corporation, society, association,
foundation, or institution | ||||||
25 | that has been issued a sales tax exemption
identification | ||||||
26 | number by the Department that assists victims of the disaster
|
| |||||||
| |||||||
1 | who reside within the declared disaster area.
| ||||||
2 | (18) Beginning with taxable years ending on or after | ||||||
3 | December
31, 1995 and
ending with taxable years ending on or | ||||||
4 | before December 31, 2004, personal
property that is used in the | ||||||
5 | performance of infrastructure repairs in this
State, including | ||||||
6 | but not limited to municipal roads and streets, access roads,
| ||||||
7 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
8 | line extensions,
water distribution and purification | ||||||
9 | facilities, storm water drainage and
retention facilities, and | ||||||
10 | sewage treatment facilities, resulting from a State
or | ||||||
11 | federally declared disaster in Illinois or bordering Illinois | ||||||
12 | when such
repairs are initiated on facilities located in the | ||||||
13 | declared disaster area
within 6 months after the disaster.
| ||||||
14 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
15 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
16 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
17 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
18 | Department of Natural Resources. This paragraph is exempt from | ||||||
19 | the provisions
of
Section 3-75.
| ||||||
20 | (20) 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 | (21) 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 3-75.
| ||||||
26 | (22) 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 3-75.
| ||||||
10 | (23) Beginning August 23, 2001 and through June 30, 2011, | ||||||
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 5 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.
| ||||||
21 | (24) Beginning on the effective date of this amendatory Act | ||||||
22 | of the 92nd
General Assembly, computers and communications | ||||||
23 | equipment
utilized for any hospital purpose and equipment used | ||||||
24 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
25 | purchased by a lessor who leases
the equipment, under a lease | ||||||
26 | of one year or longer executed or in effect at the
time the |
| |||||||
| |||||||
1 | lessor would otherwise be subject to the tax imposed by this | ||||||
2 | Act, to a
hospital that has been issued an active tax exemption | ||||||
3 | identification number by
the Department under Section 1g of the | ||||||
4 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
5 | manner that does not qualify for this exemption or is
used in | ||||||
6 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
7 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
8 | be, based on the
fair market value of the property at the time | ||||||
9 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
10 | attempt to collect an amount (however
designated) that purports | ||||||
11 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
12 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
13 | the lessor. If a lessor improperly collects any such amount | ||||||
14 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
15 | refund of that amount
from the lessor. If, however, that amount | ||||||
16 | is not refunded to the lessee for
any reason, the lessor is | ||||||
17 | liable to pay that amount to the Department.
This paragraph is | ||||||
18 | exempt from the provisions of Section 3-75.
| ||||||
19 | (25) Beginning
on the effective date of this amendatory Act | ||||||
20 | of the 92nd General Assembly,
personal property purchased by a | ||||||
21 | lessor
who leases the property, under a lease of one year or | ||||||
22 | longer executed or in
effect at the time the lessor would | ||||||
23 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
24 | governmental body that has been issued an active tax exemption
| ||||||
25 | identification number by the Department under Section 1g of the | ||||||
26 | Retailers'
Occupation Tax Act. If the property is leased in a |
| |||||||
| |||||||
1 | manner that does not
qualify for this exemption or is used in | ||||||
2 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
3 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
4 | be, based on the fair market value of the property at the time
| ||||||
5 | the nonqualifying use occurs. No lessor shall collect or | ||||||
6 | attempt to collect
an amount (however designated) that purports | ||||||
7 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
8 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
9 | the lessor. If a lessor improperly collects any such amount
| ||||||
10 | from the lessee, the lessee shall have a legal right to claim a | ||||||
11 | refund of that
amount from the lessor. If, however, that amount | ||||||
12 | is not refunded to the lessee
for any reason, the lessor is | ||||||
13 | liable to pay that amount to the Department.
This paragraph is | ||||||
14 | exempt from the provisions of Section 3-75.
| ||||||
15 | (26) Beginning January 1, 2008, tangible personal property | ||||||
16 | used in the construction or maintenance of a community water | ||||||
17 | supply, as defined under Section 3.145 of the Environmental | ||||||
18 | Protection Act, that is operated by a not-for-profit | ||||||
19 | corporation that holds a valid water supply permit issued under | ||||||
20 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
21 | exempt from the provisions of Section 3-75.
| ||||||
22 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
23 | eff. 1-1-08; 95-876, eff. 8-21-08.)
| ||||||
24 | (35 ILCS 110/3-30) (from Ch. 120, par. 439.33-30)
| ||||||
25 | Sec. 3-30. Graphic arts production. For the purposes of |
| |||||||
| |||||||
1 | this
Act, "graphic arts production" means the production of | ||||||
2 | tangible personal property for wholesale or retail sale or | ||||||
3 | lease by means of printing, including ink jet printing,
by one | ||||||
4 | or more of the processes
described in Groups 323110 through | ||||||
5 | 323122 of Subsector 323, Groups 511110
through 511199 of | ||||||
6 | Subsector 511, and Group 512230 of Subsector 512 of the North
| ||||||
7 | American Industry Classification System published by the U.S. | ||||||
8 | Office of
Management and Budget, 1997 edition. Graphic arts | ||||||
9 | production does not include
(i) the transfer of images onto | ||||||
10 | paper or other tangible personal property by
means of | ||||||
11 | photocopying or (ii) final printed products in electronic or | ||||||
12 | audio
form, including the production of software or | ||||||
13 | audio-books. For purposes of this Section, persons engaged | ||||||
14 | primarily in the business of printing or publishing newspapers | ||||||
15 | or magazines that qualify as newsprint and ink, by one or more | ||||||
16 | of the processes described in Groups 511110 through 511199 of | ||||||
17 | subsector 511 of the North American Industry Classification | ||||||
18 | System published by the U.S. Office of Management and Budget, | ||||||
19 | 1997 edition, are deemed to be engaged in graphic arts | ||||||
20 | production.
| ||||||
21 | (Source: P.A. 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)
| ||||||
22 | (35 ILCS 110/3-70)
| ||||||
23 | Sec. 3-70. Manufacturer's Purchase Credit. For purchases | ||||||
24 | of machinery and
equipment made on and after January 1, 1995 | ||||||
25 | and through June 30, 2003, and on and after September 1, 2004 |
| |||||||
| |||||||
1 | through August 30, 2014 ,
a
purchaser of manufacturing
machinery | ||||||
2 | and equipment that qualifies for the exemption provided by | ||||||
3 | Section
2 of this Act earns a credit in an amount equal to a | ||||||
4 | fixed
percentage of
the tax which would have been incurred | ||||||
5 | under this Act on those purchases.
For purchases of graphic | ||||||
6 | arts machinery and equipment made on or after July
1, 1996 | ||||||
7 | through June 30, 2003, and on and after September 1, 2004 | ||||||
8 | through August 30, 2014 , a purchase of graphic arts machinery | ||||||
9 | and
equipment that qualifies for
the exemption provided by | ||||||
10 | paragraph (5) of Section 3-5 of this Act earns a
credit in an | ||||||
11 | amount equal to a fixed percentage of the tax that would have | ||||||
12 | been
incurred under this Act on those purchases.
The credit | ||||||
13 | earned for the purchase of manufacturing machinery and | ||||||
14 | equipment
and graphic arts machinery and equipment shall be | ||||||
15 | referred to
as the Manufacturer's Purchase Credit.
A graphic | ||||||
16 | arts producer is a person engaged in graphic arts production as
| ||||||
17 | defined in Section 3-30 of the Service Occupation Tax Act. | ||||||
18 | Beginning July 1,
1996, all references in this Section to | ||||||
19 | manufacturers or manufacturing shall
also 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 the manufacturing | ||||||
23 | machinery and equipment or
graphic arts machinery and equipment
| ||||||
24 | if the
exemptions provided by Section 2 or paragraph (5) of
| ||||||
25 | Section 3-5 of
this Act had not
been applicable.
| ||||||
26 | All purchases prior to October 1, 2003 of manufacturing |
| |||||||
| |||||||
1 | machinery and
equipment and graphic arts
machinery and | ||||||
2 | equipment that qualify for the exemptions provided by paragraph
| ||||||
3 | (5) of Section 2
or paragraph (5) of Section 3-5 of this Act | ||||||
4 | qualify for the credit without
regard to whether the serviceman | ||||||
5 | elected, or could have elected, under
paragraph (7) of Section | ||||||
6 | 2 of this Act to exclude the transaction from this
Act. If the | ||||||
7 | serviceman's billing to the service customer separately states | ||||||
8 | a
selling price for the exempt manufacturing machinery or | ||||||
9 | equipment or the exempt
graphic arts machinery and equipment, | ||||||
10 | the credit shall be calculated, as
otherwise provided herein, | ||||||
11 | based on that selling price. If the serviceman's
billing does | ||||||
12 | not separately state a selling price for the exempt | ||||||
13 | manufacturing
machinery and equipment or the exempt graphic | ||||||
14 | arts machinery and equipment, the
credit shall be calculated, | ||||||
15 | as otherwise provided herein, based on 50% of the
entire | ||||||
16 | billing. If the serviceman contracts to design, develop, and | ||||||
17 | produce
special order manufacturing machinery and equipment or | ||||||
18 | special order graphic
arts machinery and equipment, and the | ||||||
19 | billing does not separately state a
selling price for such | ||||||
20 | special order machinery and
equipment, the credit shall be | ||||||
21 | calculated, as otherwise provided herein, based
on 50% of the | ||||||
22 | entire billing. The provisions of this paragraph are effective
| ||||||
23 | for purchases made on or after January 1, 1995.
| ||||||
24 | The percentage shall be as follows:
| ||||||
25 | (1) 15% for purchases made on or before June 30, 1995.
| ||||||
26 | (2) 25% for purchases made after June 30, 1995, and on |
| |||||||
| |||||||
1 | or before June 30,
1996.
| ||||||
2 | (3) 40% for purchases made after June 30, 1996, and on | ||||||
3 | or before June 30,
1997.
| ||||||
4 | (4) 50% for purchases made on or after July 1, 1997.
| ||||||
5 | (a) Manufacturer's Purchase Credit earned prior to July 1, | ||||||
6 | 2003. This subsection (a) applies to Manufacturer's Purchase | ||||||
7 | Credit earned prior to July 1, 2003. A purchaser of production | ||||||
8 | related tangible personal property desiring to use
the | ||||||
9 | Manufacturer's Purchase Credit shall certify to the seller | ||||||
10 | prior to
October 1, 2003 that the
purchaser is satisfying all | ||||||
11 | or part of
the
liability under the Use Tax Act or the Service | ||||||
12 | Use Tax Act that is due on the
purchase of the production | ||||||
13 | related tangible personal property by use of a
Manufacturer's | ||||||
14 | Purchase Credit. The Manufacturer's Purchase Credit
| ||||||
15 | certification
must be dated and shall include the name and | ||||||
16 | address of the purchaser, the
purchaser's registration number, | ||||||
17 | if registered, the
credit being
applied, and a statement that | ||||||
18 | the State Use Tax or Service Use Tax liability
is being | ||||||
19 | satisfied with the manufacturer's or graphic arts producer's
| ||||||
20 | accumulated purchase credit.
Certification may be incorporated | ||||||
21 | into the manufacturer's or graphic arts
producer's
purchase | ||||||
22 | order.
Manufacturer's Purchase Credit certification provided | ||||||
23 | by the manufacturer
or graphic
arts producer
prior to October | ||||||
24 | 1, 2003 may be used to satisfy the retailer's or
serviceman's | ||||||
25 | liability under the
Retailers' Occupation Tax Act or
Service
| ||||||
26 | Occupation Tax Act for the credit claimed, not to exceed
6.25% |
| |||||||
| |||||||
1 | of the receipts subject to tax from a qualifying purchase, but | ||||||
2 | only if
the retailer or serviceman reports the Manufacturer's | ||||||
3 | Purchase Credit claimed
as required by the Department. A | ||||||
4 | Manufacturer's Purchase Credit reported on
any original or | ||||||
5 | amended return
filed under
this Act after October 20, 2003 | ||||||
6 | shall be disallowed. The Manufacturer's
Purchase Credit earned | ||||||
7 | by
purchase of exempt manufacturing machinery and equipment
or | ||||||
8 | graphic arts machinery and equipment is a
non-transferable | ||||||
9 | credit. A manufacturer or graphic arts producer
that enters | ||||||
10 | into a
contract involving the installation of tangible personal | ||||||
11 | property into
real estate within a manufacturing or graphic | ||||||
12 | arts production facility, prior
to October 1, 2003, may | ||||||
13 | authorize a construction contractor
to utilize credit | ||||||
14 | accumulated by the manufacturer or graphic arts producer
to
| ||||||
15 | purchase the tangible personal property. A manufacturer or | ||||||
16 | graphic arts
producer
intending to use accumulated credit to | ||||||
17 | purchase such tangible personal
property shall execute a | ||||||
18 | written contract authorizing the contractor to utilize
a | ||||||
19 | specified dollar amount of credit. The contractor shall | ||||||
20 | furnish, prior to
October 1, 2003, the supplier
with the | ||||||
21 | manufacturer's or graphic arts producer's name, registration | ||||||
22 | or
resale number, and a statement
that a specific amount of the | ||||||
23 | Use Tax or Service Use Tax liability, not to
exceed 6.25% of | ||||||
24 | the selling price, is being satisfied with the credit. The
| ||||||
25 | manufacturer or graphic arts producer shall remain liable to | ||||||
26 | timely report
all information required by
the annual Report of |
| |||||||
| |||||||
1 | Manufacturer's Purchase Credit Used for credit utilized by
a
| ||||||
2 | construction contractor.
| ||||||
3 | No Manufacturer's Purchase Credit earned prior to July 1, | ||||||
4 | 2003 may be used after October 1, 2003. The Manufacturer's | ||||||
5 | Purchase Credit may be used to satisfy liability under the
Use | ||||||
6 | Tax Act or the Service Use Tax Act due on the purchase of | ||||||
7 | production
related tangible personal property (including | ||||||
8 | purchases by a manufacturer, by
a graphic arts producer,
or a | ||||||
9 | lessor who rents or leases the use of
the property to a | ||||||
10 | manufacturer or graphic arts producer) that does not
otherwise | ||||||
11 | qualify for the manufacturing machinery and equipment
| ||||||
12 | exemption or the graphic arts machinery and equipment | ||||||
13 | exemption.
"Production related tangible personal
property" | ||||||
14 | means (i) all tangible personal property used or consumed by | ||||||
15 | the
purchaser in a manufacturing facility in which a | ||||||
16 | manufacturing process
described in Section 2-45 of the | ||||||
17 | Retailers' Occupation Tax Act
takes place, including tangible | ||||||
18 | personal property purchased for incorporation
into
real estate | ||||||
19 | within a manufacturing facility and including, but not limited
| ||||||
20 | to,
tangible personal property used or consumed in activities | ||||||
21 | such as
pre-production
material handling, receiving, quality | ||||||
22 | control, inventory control, storage,
staging, and packaging | ||||||
23 | for shipping and transportation purposes; (ii)
all tangible | ||||||
24 | personal property used or consumed by the purchaser in a | ||||||
25 | graphic
arts facility in which graphic arts production as | ||||||
26 | described in Section 2-30 of
the Retailers' Occupation Tax Act |
| |||||||
| |||||||
1 | takes place, including tangible personal
property purchased | ||||||
2 | for incorporation into real estate within a graphic arts
| ||||||
3 | facility and including, but not limited to, all tangible | ||||||
4 | personal property used
or consumed in activities such as | ||||||
5 | graphic arts preliminary or pre-press
production, | ||||||
6 | pre-production material handling, receiving, quality control,
| ||||||
7 | inventory control, storage, staging, sorting, labeling, | ||||||
8 | mailing, tying,
wrapping, and packaging; and (iii) all tangible | ||||||
9 | personal property used or
consumed by the purchaser
for | ||||||
10 | research and
development. "Production related tangible | ||||||
11 | personal property" does not include
(i) tangible personal | ||||||
12 | property used, within or without a manufacturing or
graphic | ||||||
13 | arts
facility, in sales, purchasing,
accounting, fiscal | ||||||
14 | management, marketing,
personnel recruitment or selection, or | ||||||
15 | landscaping or (ii) tangible personal
property required to be | ||||||
16 | titled or registered with a department, agency, or unit
of | ||||||
17 | federal, state, or local
government. The Manufacturer's | ||||||
18 | Purchase Credit may be used, prior to October
1, 2003, to | ||||||
19 | satisfy the tax
arising either from the purchase of
machinery | ||||||
20 | and equipment on or after January 1, 1995
for which the | ||||||
21 | manufacturing machinery and equipment exemption
provided by | ||||||
22 | Section 2 of this Act was
erroneously claimed, or the purchase | ||||||
23 | of machinery and equipment on or after
July 1, 1996 for which | ||||||
24 | the exemption provided by paragraph (5) of Section 3-5
of this | ||||||
25 | Act was erroneously claimed, but not in
satisfaction of | ||||||
26 | penalty, if any, and interest for failure to pay the tax
when |
| |||||||
| |||||||
1 | due. A
purchaser of production related tangible personal | ||||||
2 | property who is required to
pay Illinois Use Tax or Service Use | ||||||
3 | Tax on the purchase directly to the
Department may, prior to | ||||||
4 | October 1, 2003, utilize the Manufacturer's
Purchase Credit in | ||||||
5 | satisfaction of
the tax arising from that purchase, but not in
| ||||||
6 | satisfaction of penalty and
interest.
A purchaser who uses the | ||||||
7 | Manufacturer's Purchase Credit to purchase
property
which is | ||||||
8 | later determined not to be production related tangible personal
| ||||||
9 | property may be liable for tax, penalty, and interest on the | ||||||
10 | purchase of that
property as of the date of purchase but shall | ||||||
11 | be entitled to use the disallowed
Manufacturer's Purchase
| ||||||
12 | Credit, so long as it has not expired and is used prior to | ||||||
13 | October 1, 2003,
on qualifying purchases of production
related | ||||||
14 | tangible personal property not previously subject to credit | ||||||
15 | usage.
The Manufacturer's Purchase Credit earned by a | ||||||
16 | manufacturer or graphic arts
producer
expires the last day of | ||||||
17 | the second calendar year following the
calendar year in
which | ||||||
18 | the credit arose. No Manufacturer's Purchase Credit may be used | ||||||
19 | after
September 30, 2003
regardless of
when that credit was | ||||||
20 | earned.
| ||||||
21 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
22 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
23 | Credit Earned for each calendar year
no later
than the last day | ||||||
24 | of the sixth month following the calendar year in which a
| ||||||
25 | Manufacturer's Purchase Credit is earned. A Report of | ||||||
26 | Manufacturer's Purchase
Credit
Earned shall be filed on forms |
| |||||||
| |||||||
1 | as prescribed or approved by the Department and
shall state, | ||||||
2 | for each month of the calendar year: (i) the total purchase | ||||||
3 | price
of all purchases of exempt manufacturing or graphic arts | ||||||
4 | machinery on which
the credit was
earned; (ii) the total State | ||||||
5 | Use Tax or Service Use Tax which would have been
due on those | ||||||
6 | items; (iii) the percentage used to calculate the amount of | ||||||
7 | credit
earned; (iv) the amount of credit earned; and (v) such | ||||||
8 | other information as the
Department may reasonably require. A | ||||||
9 | purchaser earning Manufacturer's Purchase
Credit shall | ||||||
10 | maintain records which identify, as to each purchase of
| ||||||
11 | manufacturing or graphic arts machinery and equipment on which | ||||||
12 | the
purchaser earned
Manufacturer's Purchase Credit, the | ||||||
13 | vendor (including, if applicable, either
the vendor's | ||||||
14 | registration number or Federal Employer Identification | ||||||
15 | Number),
the purchase price, and the amount of Manufacturer's | ||||||
16 | Purchase Credit earned on
each purchase.
| ||||||
17 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
18 | sign and file an
annual Report of Manufacturer's Purchase | ||||||
19 | Credit Used for each calendar year no
later than the last day | ||||||
20 | of the sixth month following the calendar year in which
a | ||||||
21 | Manufacturer's Purchase Credit is used. A Report of | ||||||
22 | Manufacturer's Purchase
Credit Used shall be filed on forms as | ||||||
23 | prescribed or approved by the Department
and
shall state, for | ||||||
24 | each month of the calendar year: (i) the total purchase price
| ||||||
25 | of production related tangible personal property purchased | ||||||
26 | from Illinois
suppliers; (ii) the total purchase price
of |
| |||||||
| |||||||
1 | production related tangible personal property purchased from | ||||||
2 | out-of-state
suppliers; (iii) the total amount of credit used | ||||||
3 | during such month; and (iv)
such
other information as the | ||||||
4 | Department may reasonably require. A purchaser using
| ||||||
5 | Manufacturer's Purchase Credit shall maintain records that | ||||||
6 | identify, as to
each purchase of production related tangible | ||||||
7 | personal property on which the
purchaser used Manufacturer's | ||||||
8 | Purchase Credit, the vendor (including, if
applicable, either | ||||||
9 | the vendor's registration number or Federal Employer
| ||||||
10 | Identification Number), the purchase price, and the amount of | ||||||
11 | Manufacturer's
Purchase Credit used on each purchase.
| ||||||
12 | No annual report shall be filed before May 1, 1996 or after | ||||||
13 | June 30,
2004.
A purchaser that fails to file an annual Report | ||||||
14 | of Manufacturer's Purchase
Credit
Earned or an annual Report of | ||||||
15 | Manufacturer's Purchase Credit Used by the last
day
of the | ||||||
16 | sixth month following the end of the calendar year shall | ||||||
17 | forfeit all
Manufacturer's Purchase Credit for that calendar | ||||||
18 | year unless it establishes
that its failure to file was due to | ||||||
19 | reasonable cause.
Manufacturer's Purchase Credit
reports may | ||||||
20 | be amended to report and claim credit on qualifying purchases | ||||||
21 | not
previously reported at any time before the credit would | ||||||
22 | have expired, unless
both the Department and the purchaser have | ||||||
23 | agreed to an extension of
the statute of limitations for the | ||||||
24 | issuance of a notice of tax liability as
provided in Section 4 | ||||||
25 | of the Retailers' Occupation Tax Act. If the time for
| ||||||
26 | assessment or refund has been extended, then amended reports |
| |||||||
| |||||||
1 | for a calendar
year may be filed at any time prior to the date | ||||||
2 | to which the statute of
limitations for the calendar year or | ||||||
3 | portion thereof has been extended.
No Manufacturer's Purchase | ||||||
4 | Credit report filed with the Department
for periods
prior to | ||||||
5 | January 1, 1995 shall be approved.
Manufacturer's Purchase | ||||||
6 | Credit claimed on an amended report may be used,
prior to | ||||||
7 | October 1, 2003, to
satisfy tax liability under the Use Tax Act | ||||||
8 | or the Service Use Tax Act (i) on
qualifying purchases of | ||||||
9 | production related tangible personal property made
after the | ||||||
10 | date the amended report is filed or (ii) assessed by the | ||||||
11 | Department
on qualifying purchases of production related | ||||||
12 | tangible personal property made
in the case of manufacturers on | ||||||
13 | or after January 1, 1995, or in the case
of graphic arts | ||||||
14 | producers on or after July 1, 1996.
| ||||||
15 | If the purchaser is not the manufacturer or a graphic arts | ||||||
16 | producer, but
rents or
leases the use of the property to a | ||||||
17 | manufacturer or a graphic arts
producer,
the purchaser may | ||||||
18 | earn, report, and use
Manufacturer's
Purchase Credit in the | ||||||
19 | same manner as a manufacturer or graphic arts
producer.
| ||||||
20 | A purchaser shall not be entitled to any Manufacturer's | ||||||
21 | Purchase
Credit for a purchase that is required to be reported | ||||||
22 | and is not timely
reported as
provided in this Section. A | ||||||
23 | purchaser remains liable for (i) any
tax that was satisfied by | ||||||
24 | use of a Manufacturer's Purchase Credit, as of the
date of | ||||||
25 | purchase, if that use is not timely reported as required in | ||||||
26 | this
Section and (ii) for any applicable penalties and interest |
| |||||||
| |||||||
1 | for failing to pay
the tax when due. No Manufacturer's Purchase | ||||||
2 | Credit may be used after
September 30, 2003 to
satisfy any
tax | ||||||
3 | liability imposed under this Act, including any audit | ||||||
4 | liability.
| ||||||
5 | (b) Manufacturer's Purchase Credit earned on and after | ||||||
6 | September 1, 2004. This subsection (b) applies to | ||||||
7 | Manufacturer's Purchase Credit earned on or after September 1, | ||||||
8 | 2004. Manufacturer's Purchase Credit earned on or after | ||||||
9 | September 1, 2004 may only be used to satisfy the Use Tax or | ||||||
10 | Service Use Tax liability incurred on production related | ||||||
11 | tangible personal property purchased on or after September 1, | ||||||
12 | 2004. A purchaser of production related tangible personal | ||||||
13 | property desiring to use the Manufacturer's Purchase Credit | ||||||
14 | shall certify to the seller that the purchaser is satisfying | ||||||
15 | all or part of the liability under the Use Tax Act or the | ||||||
16 | Service Use Tax Act that is due on the purchase of the | ||||||
17 | production related tangible personal property by use of a | ||||||
18 | Manufacturer's Purchase Credit. The Manufacturer's Purchase | ||||||
19 | Credit certification must be dated and shall include the name | ||||||
20 | and address of the purchaser, the purchaser's registration | ||||||
21 | number, if registered, the credit being applied, and a | ||||||
22 | statement that the State Use Tax or Service Use Tax liability | ||||||
23 | is being satisfied with the manufacturer's or graphic arts | ||||||
24 | producer's accumulated purchase credit. Certification may be | ||||||
25 | incorporated into the manufacturer's or graphic arts | ||||||
26 | producer's purchase order. Manufacturer's Purchase Credit |
| |||||||
| |||||||
1 | certification provided by the manufacturer or graphic arts | ||||||
2 | producer may be used to satisfy the retailer's or serviceman's | ||||||
3 | liability under the Retailers' Occupation Tax Act or Service | ||||||
4 | Occupation Tax Act for the credit claimed, not to exceed 6.25% | ||||||
5 | of the receipts subject to tax from a qualifying purchase, but | ||||||
6 | only if the retailer or serviceman reports the Manufacturer's | ||||||
7 | Purchase Credit claimed as required by the Department. The | ||||||
8 | Manufacturer's Purchase Credit earned by purchase of exempt | ||||||
9 | manufacturing machinery and equipment or graphic arts | ||||||
10 | machinery and equipment is a non-transferable credit. A | ||||||
11 | manufacturer or graphic arts producer that enters into a | ||||||
12 | contract involving the installation of tangible personal | ||||||
13 | property into real estate within a manufacturing or graphic | ||||||
14 | arts production facility may, on or after September 1, 2004, | ||||||
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 furnish | ||||||
22 | the supplier with the manufacturer's or graphic arts producer's | ||||||
23 | name, registration or resale number, and a statement that a | ||||||
24 | specific amount of the Use Tax or Service Use Tax liability, | ||||||
25 | not to exceed 6.25% of the selling price, is being satisfied | ||||||
26 | with the credit. The manufacturer or graphic arts producer |
| |||||||
| |||||||
1 | shall remain liable to timely report all information required | ||||||
2 | by the annual Report of Manufacturer's Purchase Credit Used for | ||||||
3 | credit utilized by a construction contractor. | ||||||
4 | The Manufacturer's Purchase Credit may be used to satisfy | ||||||
5 | liability under the Use Tax Act or the Service Use Tax Act due | ||||||
6 | on the purchase, made on or after September 1, 2004, of | ||||||
7 | production related tangible personal property (including | ||||||
8 | purchases by a manufacturer, by a graphic arts producer, or a | ||||||
9 | lessor who rents or leases the use of the property to a | ||||||
10 | manufacturer or graphic arts producer) that does not otherwise | ||||||
11 | qualify for the manufacturing machinery and equipment | ||||||
12 | exemption or the graphic arts machinery and equipment | ||||||
13 | exemption. "Production related tangible personal property" | ||||||
14 | means (i) all tangible personal property used or consumed by | ||||||
15 | the purchaser in a manufacturing facility in which a | ||||||
16 | manufacturing process described in Section 2-45 of the | ||||||
17 | Retailers' Occupation Tax Act takes place, including tangible | ||||||
18 | personal property purchased for incorporation into real estate | ||||||
19 | within a manufacturing facility and including, but not limited | ||||||
20 | to, tangible personal property used or consumed in activities | ||||||
21 | such as pre-production material handling, receiving, quality | ||||||
22 | control, inventory control, storage, staging, and packaging | ||||||
23 | for shipping and transportation purposes; (ii) all tangible | ||||||
24 | personal property used or consumed by the purchaser in a | ||||||
25 | graphic arts facility in which graphic arts production as | ||||||
26 | described in Section 2-30 of the Retailers' Occupation Tax Act |
| |||||||
| |||||||
1 | takes place, including tangible personal property purchased | ||||||
2 | for incorporation into real estate within a graphic arts | ||||||
3 | facility and including, but not limited to, all tangible | ||||||
4 | personal property used or consumed in activities such as | ||||||
5 | graphic arts preliminary or pre-press production, | ||||||
6 | pre-production material handling, receiving, quality control, | ||||||
7 | inventory control, storage, staging, sorting, labeling, | ||||||
8 | mailing, tying, wrapping, and packaging; and (iii) all tangible | ||||||
9 | personal property used or consumed by the purchaser for | ||||||
10 | research and development. "Production related tangible | ||||||
11 | personal property" does not include (i) tangible personal | ||||||
12 | property used, within or without a manufacturing or graphic | ||||||
13 | arts facility, in sales, purchasing, accounting, fiscal | ||||||
14 | management, marketing, personnel recruitment or selection, or | ||||||
15 | landscaping or (ii) tangible personal property required to be | ||||||
16 | titled or registered with a department, agency, or unit of | ||||||
17 | federal, state, or local government. The Manufacturer's | ||||||
18 | Purchase Credit may be used to satisfy the tax arising either | ||||||
19 | from the purchase of machinery and equipment on or after | ||||||
20 | September 1, 2004 for which the manufacturing machinery and | ||||||
21 | equipment exemption provided by Section 2 of this Act was | ||||||
22 | erroneously claimed, or the purchase of machinery and equipment | ||||||
23 | on or after September 1, 2004 for which the exemption provided | ||||||
24 | by paragraph (5) of Section 3-5 of this Act was erroneously | ||||||
25 | claimed, but not in satisfaction of penalty, if any, and | ||||||
26 | interest for failure to pay the tax when due. A purchaser of |
| |||||||
| |||||||
1 | production related tangible personal property that is | ||||||
2 | purchased on or after September 1, 2004 who is required to pay | ||||||
3 | Illinois Use Tax or Service Use Tax on the purchase directly to | ||||||
4 | the Department may utilize the Manufacturer's Purchase Credit | ||||||
5 | in satisfaction of the tax arising from that purchase, but not | ||||||
6 | in satisfaction of penalty and interest. A purchaser who uses | ||||||
7 | the Manufacturer's Purchase Credit to purchase property on and | ||||||
8 | after September 1, 2004 which is later determined not to be | ||||||
9 | production related tangible personal property may be liable for | ||||||
10 | tax, penalty, and interest on the purchase of that property as | ||||||
11 | of the date of purchase but shall be entitled to use the | ||||||
12 | disallowed Manufacturer's Purchase Credit, so long as it has | ||||||
13 | not expired, on qualifying purchases of production related | ||||||
14 | tangible personal property not previously subject to credit | ||||||
15 | usage. The Manufacturer's Purchase Credit earned by a | ||||||
16 | manufacturer or graphic arts producer expires the last day of | ||||||
17 | the second calendar year following the calendar year in which | ||||||
18 | the credit arose. | ||||||
19 | A purchaser earning Manufacturer's Purchase Credit shall | ||||||
20 | sign and file an annual Report of Manufacturer's Purchase | ||||||
21 | Credit Earned for each calendar year no later than the last day | ||||||
22 | of the 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. | ||||||
15 | A purchaser using Manufacturer's Purchase Credit shall | ||||||
16 | sign and file an annual Report of Manufacturer's Purchase | ||||||
17 | Credit Used for each calendar year no later than the last day | ||||||
18 | of the sixth month following the calendar year in which a | ||||||
19 | Manufacturer's Purchase Credit is used. A Report of | ||||||
20 | Manufacturer's Purchase Credit Used shall be filed on forms as | ||||||
21 | prescribed or approved by the Department and shall state, for | ||||||
22 | each month of the calendar year: (i) the total purchase price | ||||||
23 | of production related tangible personal property purchased | ||||||
24 | from Illinois suppliers; (ii) the total purchase price of | ||||||
25 | production related tangible personal property purchased from | ||||||
26 | out-of-state suppliers; (iii) the total amount of credit used |
| |||||||
| |||||||
1 | during such month; and (iv) such other information as the | ||||||
2 | Department may reasonably require. A purchaser using | ||||||
3 | Manufacturer's Purchase Credit shall maintain records that | ||||||
4 | identify, as to each purchase of production related tangible | ||||||
5 | personal property on which the purchaser used Manufacturer's | ||||||
6 | Purchase Credit, the vendor (including, if applicable, either | ||||||
7 | the vendor's registration number or Federal Employer | ||||||
8 | Identification Number), the purchase price, and the amount of | ||||||
9 | Manufacturer's Purchase Credit used on each purchase. | ||||||
10 | A purchaser that fails to file an annual Report of | ||||||
11 | Manufacturer's Purchase Credit Earned or an annual Report of | ||||||
12 | Manufacturer's Purchase Credit Used by the last day of the | ||||||
13 | sixth month following the end of the calendar year shall | ||||||
14 | forfeit all Manufacturer's Purchase Credit for that calendar | ||||||
15 | year unless it establishes that its failure to file was due to | ||||||
16 | reasonable cause. Manufacturer's Purchase Credit reports may | ||||||
17 | be amended to report and claim credit on qualifying purchases | ||||||
18 | not previously reported at any time before the credit would | ||||||
19 | have expired, unless both the Department and the purchaser have | ||||||
20 | agreed to an extension of the statute of limitations for the | ||||||
21 | issuance of a notice of tax liability as provided in Section 4 | ||||||
22 | of the Retailers' Occupation Tax Act. If the time for | ||||||
23 | assessment or refund has been extended, then amended reports | ||||||
24 | for a calendar year may be filed at any time prior to the date | ||||||
25 | to which the statute of limitations for the calendar year or | ||||||
26 | portion thereof has been extended. Manufacturer's Purchase |
| |||||||
| |||||||
1 | Credit claimed on an amended report may be used to satisfy tax | ||||||
2 | liability under the Use Tax Act or the Service Use Tax Act (i) | ||||||
3 | on qualifying purchases of production related tangible | ||||||
4 | personal property made after the date the amended report is | ||||||
5 | filed or (ii) assessed by the Department on qualifying | ||||||
6 | production related tangible personal property purchased on or | ||||||
7 | after September 1, 2004. | ||||||
8 | If the purchaser is not the manufacturer or a graphic arts | ||||||
9 | producer, but rents or leases the use of the property to a | ||||||
10 | manufacturer or a graphic arts producer, the purchaser may | ||||||
11 | earn, report, and use Manufacturer's Purchase Credit in the | ||||||
12 | same manner as a manufacturer or graphic arts producer.
A | ||||||
13 | purchaser shall not be entitled to any Manufacturer's Purchase | ||||||
14 | Credit for a purchase that is required to be reported and is | ||||||
15 | not timely reported as provided in this Section. A purchaser | ||||||
16 | remains liable for (i) any tax that was satisfied by use of a | ||||||
17 | Manufacturer's Purchase Credit, as of the date of purchase, if | ||||||
18 | that use is not timely reported as required in this Section and | ||||||
19 | (ii) for any applicable penalties and interest for failing to | ||||||
20 | pay the tax when due.
| ||||||
21 | (Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04.)
| ||||||
22 | Section 20. The Service Occupation Tax Act is amended by | ||||||
23 | changing Sections 3-5 and 3-30 as follows:
| ||||||
24 | (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
|
| |||||||
| |||||||
1 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
2 | property is
exempt from the tax imposed by this Act:
| ||||||
3 | (1) Personal property sold by a corporation, society, | ||||||
4 | association,
foundation, institution, or organization, other | ||||||
5 | than a limited liability
company, that is organized and | ||||||
6 | operated as a not-for-profit service enterprise
for the benefit | ||||||
7 | of persons 65 years of age or older if the personal property
| ||||||
8 | was not purchased by the enterprise for the purpose of resale | ||||||
9 | by the
enterprise.
| ||||||
10 | (2) Personal property purchased by a not-for-profit | ||||||
11 | Illinois county fair
association for use in conducting, | ||||||
12 | operating, or promoting the county fair.
| ||||||
13 | (3) Personal property purchased by any not-for-profit
arts | ||||||
14 | or 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 , graphic arts machinery and | ||||||
8 | equipment, including
repair and
replacement parts, both new and | ||||||
9 | used, and including that manufactured on
special order or | ||||||
10 | purchased for lease, certified by the purchaser to be used
| ||||||
11 | primarily for graphic arts production.
Equipment includes | ||||||
12 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
13 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
14 | immediate change
upon a graphic arts product.
| ||||||
15 | (6) Personal property sold by a teacher-sponsored student | ||||||
16 | organization
affiliated with an elementary or secondary school | ||||||
17 | located in Illinois.
| ||||||
18 | (7) Farm machinery and equipment, both new and used, | ||||||
19 | including that
manufactured on special order, certified by the | ||||||
20 | purchaser to be used
primarily for production agriculture or | ||||||
21 | State or federal agricultural
programs, including individual | ||||||
22 | replacement parts for the machinery and
equipment, including | ||||||
23 | machinery and equipment purchased for lease,
and including | ||||||
24 | implements of husbandry defined in Section 1-130 of
the | ||||||
25 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
26 | chemical and
fertilizer spreaders, and nurse wagons required to |
| |||||||
| |||||||
1 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
2 | but
excluding other motor vehicles required to be registered | ||||||
3 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
4 | hoop houses used for propagating, growing, or
overwintering | ||||||
5 | plants shall be considered farm machinery and equipment under
| ||||||
6 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
7 | shall include units sold
separately from a motor vehicle | ||||||
8 | required to be licensed and units sold mounted
on a motor | ||||||
9 | vehicle required to be licensed if the selling price of the | ||||||
10 | tender
is separately stated.
| ||||||
11 | Farm machinery and equipment shall include precision | ||||||
12 | farming equipment
that is
installed or purchased to be | ||||||
13 | installed on farm machinery and equipment
including, but not | ||||||
14 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
15 | or spreaders.
Precision farming equipment includes, but is not | ||||||
16 | limited to,
soil testing sensors, computers, monitors, | ||||||
17 | software, global positioning
and mapping systems, and other | ||||||
18 | such equipment.
| ||||||
19 | Farm machinery and equipment also includes computers, | ||||||
20 | sensors, software, and
related equipment used primarily in the
| ||||||
21 | computer-assisted operation of production agriculture | ||||||
22 | facilities, equipment,
and activities such as, but
not limited | ||||||
23 | to,
the collection, monitoring, and correlation of
animal and | ||||||
24 | crop data for the purpose of
formulating animal diets and | ||||||
25 | agricultural chemicals. This item (7) is exempt
from the | ||||||
26 | provisions of
Section 3-55.
|
| |||||||
| |||||||
1 | (8) Fuel and petroleum products sold to or used by an air | ||||||
2 | common
carrier, certified by the carrier to be used for | ||||||
3 | consumption, shipment,
or storage in the conduct of its | ||||||
4 | business as an air common carrier, for
a flight destined for or | ||||||
5 | returning from a location or locations
outside the United | ||||||
6 | States without regard to previous or subsequent domestic
| ||||||
7 | stopovers.
| ||||||
8 | (9) Proceeds of mandatory service charges separately
| ||||||
9 | stated on customers' bills for the purchase and consumption of | ||||||
10 | food and
beverages, to the extent that the proceeds of the | ||||||
11 | service charge are in fact
turned over as tips or as a | ||||||
12 | substitute for tips to the employees who
participate directly | ||||||
13 | in preparing, serving, hosting or cleaning up the
food or | ||||||
14 | beverage function with respect to which the service charge is | ||||||
15 | imposed.
| ||||||
16 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
17 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
18 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
19 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
20 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
21 | individual replacement part for oil field exploration,
| ||||||
22 | drilling, and production equipment, and (vi) machinery and | ||||||
23 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
24 | required to be registered under the Illinois
Vehicle Code.
| ||||||
25 | (11) Photoprocessing machinery and equipment, including | ||||||
26 | repair and
replacement parts, both new and used, including that |
| |||||||
| |||||||
1 | manufactured on
special order, certified by the purchaser to be | ||||||
2 | used primarily for
photoprocessing, and including | ||||||
3 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
4 | (12) Until July 1, 2003, coal exploration, mining, | ||||||
5 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
6 | equipment, including
replacement parts and equipment, and | ||||||
7 | including
equipment
purchased for lease, but excluding motor | ||||||
8 | vehicles required to be registered
under the Illinois Vehicle | ||||||
9 | Code.
| ||||||
10 | (13) Beginning January 1, 1992 and through June 30, 2011, | ||||||
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
non-prescription 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 5 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.
| ||||||
21 | (14) Semen used for artificial insemination of livestock | ||||||
22 | for direct
agricultural production.
| ||||||
23 | (15) Horses, or interests in horses, registered with and | ||||||
24 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
25 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
26 | Horse Association, United States
Trotting Association, or |
| |||||||
| |||||||
1 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
2 | racing for prizes. This item (15) is exempt from the provisions | ||||||
3 | of Section 3-55, and the exemption provided for under this item | ||||||
4 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
5 | claim for credit or refund is allowed on or after January 1, | ||||||
6 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
7 | paid during the period beginning May 30, 2000 and ending on | ||||||
8 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
9 | (16) Computers and communications equipment utilized for | ||||||
10 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
11 | analysis, or treatment of hospital patients sold to a lessor | ||||||
12 | who leases the
equipment, under a lease of one year or longer | ||||||
13 | executed or in effect at the
time of the purchase, to a
| ||||||
14 | hospital
that has been issued an active tax exemption | ||||||
15 | identification number by the
Department under Section 1g of the | ||||||
16 | Retailers' Occupation Tax Act.
| ||||||
17 | (17) Personal property sold to a lessor who leases the
| ||||||
18 | property, under a
lease of one year or longer executed or in | ||||||
19 | effect at the time of the purchase,
to a governmental body
that | ||||||
20 | has been issued an active tax exemption identification number | ||||||
21 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
22 | Tax Act.
| ||||||
23 | (18) Beginning with taxable years ending on or after | ||||||
24 | December
31, 1995
and
ending with taxable years ending on or | ||||||
25 | before December 31, 2004,
personal property that is
donated for | ||||||
26 | disaster relief to be used in a State or federally declared
|
| |||||||
| |||||||
1 | disaster area in Illinois or bordering Illinois by a | ||||||
2 | manufacturer or retailer
that is registered in this State to a | ||||||
3 | corporation, society, association,
foundation, or institution | ||||||
4 | that has been issued a sales tax exemption
identification | ||||||
5 | number by the Department that assists victims of the disaster
| ||||||
6 | who reside within the declared disaster area.
| ||||||
7 | (19) Beginning with taxable years ending on or after | ||||||
8 | December
31, 1995 and
ending with taxable years ending on or | ||||||
9 | before December 31, 2004, personal
property that is used in the | ||||||
10 | performance of infrastructure repairs in this
State, including | ||||||
11 | but not limited to municipal roads and streets, access roads,
| ||||||
12 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
13 | line extensions,
water distribution and purification | ||||||
14 | facilities, storm water drainage and
retention facilities, and | ||||||
15 | sewage treatment facilities, resulting from a State
or | ||||||
16 | federally declared disaster in Illinois or bordering Illinois | ||||||
17 | when such
repairs are initiated on facilities located in the | ||||||
18 | declared disaster area
within 6 months after the disaster.
| ||||||
19 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
20 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
21 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
22 | at a hunting enclosure approved through rules adopted by the
| ||||||
23 | Department of Natural Resources. This paragraph is exempt from | ||||||
24 | the provisions
of
Section 3-55.
| ||||||
25 | (21) A motor vehicle, as that term is defined in Section | ||||||
26 | 1-146
of the
Illinois Vehicle Code, that is donated to a |
| |||||||
| |||||||
1 | corporation, limited liability
company, society, association, | ||||||
2 | foundation, or institution that is determined by
the Department | ||||||
3 | to be organized and operated exclusively for educational
| ||||||
4 | purposes. For purposes of this exemption, "a corporation, | ||||||
5 | limited liability
company, society, association, foundation, | ||||||
6 | or institution organized and
operated
exclusively for | ||||||
7 | educational purposes" means all tax-supported public schools,
| ||||||
8 | private schools that offer systematic instruction in useful | ||||||
9 | branches of
learning by methods common to public schools and | ||||||
10 | that compare favorably in
their scope and intensity with the | ||||||
11 | course of study presented in tax-supported
schools, and | ||||||
12 | vocational or technical schools or institutes organized and
| ||||||
13 | operated exclusively to provide a course of study of not less | ||||||
14 | than 6 weeks
duration and designed to prepare individuals to | ||||||
15 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
16 | industrial, business, or commercial
occupation.
| ||||||
17 | (22) Beginning January 1, 2000, personal property, | ||||||
18 | including
food,
purchased through fundraising
events for the | ||||||
19 | benefit of
a public or private elementary or
secondary school, | ||||||
20 | a group of those schools, or one or more school
districts if | ||||||
21 | the events are
sponsored by an entity recognized by the school | ||||||
22 | district that consists
primarily of volunteers and includes
| ||||||
23 | parents and teachers of the school children. This paragraph | ||||||
24 | does not apply
to fundraising
events (i) for the benefit of | ||||||
25 | private home instruction or (ii)
for which the fundraising | ||||||
26 | entity purchases the personal property sold at
the events from |
| |||||||
| |||||||
1 | another individual or entity that sold the property for the
| ||||||
2 | purpose of resale by the fundraising entity and that
profits | ||||||
3 | from the sale to the
fundraising entity. This paragraph is | ||||||
4 | exempt
from the provisions
of Section 3-55.
| ||||||
5 | (23) Beginning January 1, 2000
and through December 31, | ||||||
6 | 2001, new or used automatic vending
machines that prepare and | ||||||
7 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
8 | items, and replacement parts for these machines.
Beginning | ||||||
9 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
10 | for
machines used in commercial, coin-operated amusement
and | ||||||
11 | vending business if a use or occupation tax is paid on the | ||||||
12 | gross receipts
derived from
the use of the commercial, | ||||||
13 | coin-operated amusement and vending machines.
This paragraph | ||||||
14 | is exempt from the provisions of Section 3-55.
| ||||||
15 | (24) Beginning
on the effective date of this amendatory Act | ||||||
16 | of the 92nd General Assembly,
computers and communications | ||||||
17 | equipment
utilized for any hospital purpose and equipment used | ||||||
18 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
19 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
20 | year or longer executed or in effect at the
time of the | ||||||
21 | purchase, to a hospital that has been issued an active tax
| ||||||
22 | exemption identification number by the Department under | ||||||
23 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
24 | is exempt from the provisions of
Section 3-55.
| ||||||
25 | (25) Beginning
on the effective date of this amendatory Act | ||||||
26 | of the 92nd General Assembly,
personal property sold to a |
| |||||||
| |||||||
1 | lessor who
leases the property, under a lease of one year or | ||||||
2 | longer executed or in effect
at the time of the purchase, to a | ||||||
3 | governmental body that has been issued an
active tax exemption | ||||||
4 | identification number by the Department under Section 1g
of the | ||||||
5 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
6 | the
provisions of Section 3-55.
| ||||||
7 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
8 | 2011, tangible personal property
purchased
from an Illinois | ||||||
9 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
10 | activities in Illinois who will, upon receipt of the property | ||||||
11 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
12 | the purpose of subsequently
transporting it outside this State | ||||||
13 | for use or consumption thereafter solely
outside this State or | ||||||
14 | (ii) for the purpose of being processed, fabricated, or
| ||||||
15 | manufactured into, attached to, or incorporated into other | ||||||
16 | tangible personal
property to be transported outside this State | ||||||
17 | and thereafter used or consumed
solely outside this State. The | ||||||
18 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
19 | accordance with the Illinois Administrative Procedure Act, | ||||||
20 | issue a
permit to any taxpayer in good standing with the | ||||||
21 | Department who is eligible for
the exemption under this | ||||||
22 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
23 | shall authorize the holder, to the extent and
in the manner | ||||||
24 | specified in the rules adopted under this Act, to purchase
| ||||||
25 | tangible personal property from a retailer exempt from the | ||||||
26 | taxes imposed by
this Act. Taxpayers shall maintain all |
| |||||||
| |||||||
1 | necessary books and records to
substantiate the use and | ||||||
2 | consumption of all such tangible personal property
outside of | ||||||
3 | the State of Illinois.
| ||||||
4 | (27) Beginning January 1, 2008, tangible personal property | ||||||
5 | used in the construction or maintenance of a community water | ||||||
6 | supply, as defined under Section 3.145 of the Environmental | ||||||
7 | Protection Act, that is operated by a not-for-profit | ||||||
8 | corporation that holds a valid water supply permit issued under | ||||||
9 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
10 | exempt from the provisions of Section 3-55.
| ||||||
11 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
12 | eff. 1-1-08; 95-876, eff. 8-21-08.)
| ||||||
13 | (35 ILCS 115/3-30) (from Ch. 120, par. 439.103-30)
| ||||||
14 | Sec. 3-30. Graphic arts production. For purposes of this | ||||||
15 | Act,
"graphic arts production" means the production of tangible | ||||||
16 | personal property for wholesale or retail sale or lease by | ||||||
17 | means of printing, including ink jet printing,
by one or more | ||||||
18 | of the processes
described in Groups 323110 through 323122 of | ||||||
19 | Subsector 323, Groups 511110
through 511199 of Subsector 511, | ||||||
20 | and Group 512230 of Subsector 512 of the North
American | ||||||
21 | Industry Classification System published by the U.S. Office of
| ||||||
22 | Management and Budget, 1997 edition. Graphic arts production | ||||||
23 | does not include
(i) the transfer of images onto paper or other | ||||||
24 | tangible personal property by
means of photocopying or (ii) | ||||||
25 | final printed products in electronic or audio
form, including |
| |||||||
| |||||||
1 | the production of software or audio-books. For the purpose of | ||||||
2 | this Section, persons engaged primarily in the business of | ||||||
3 | printing or publishing newspapers or magazines that qualify as | ||||||
4 | newsprint and ink, by one or more of the processes described in | ||||||
5 | Groups 511110 through 511199 of subsector 511 of the North | ||||||
6 | American Industry Classification System published by the U.S. | ||||||
7 | Office of Management and Budget, 1997 edition, are deemed to be | ||||||
8 | engaged in graphic arts production.
| ||||||
9 | (Source: P.A. 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)
| ||||||
10 | Section 25. The Retailers' Occupation Tax Act is amended by | ||||||
11 | changing Sections 2-5 and 2-30 as follows:
| ||||||
12 | (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| ||||||
13 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
14 | sale of
the following tangible personal property are exempt | ||||||
15 | from the tax imposed
by this Act:
| ||||||
16 | (1) Farm chemicals.
| ||||||
17 | (2) Farm machinery and equipment, both new and used, | ||||||
18 | including that
manufactured on special order, certified by the | ||||||
19 | purchaser to be used
primarily for production agriculture or | ||||||
20 | State or federal agricultural
programs, including individual | ||||||
21 | replacement parts for the machinery and
equipment, including | ||||||
22 | machinery and equipment purchased for lease,
and including | ||||||
23 | implements of husbandry defined in Section 1-130 of
the | ||||||
24 | Illinois Vehicle Code, farm machinery and agricultural |
| |||||||
| |||||||
1 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
2 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
3 | but
excluding other motor vehicles required to be registered | ||||||
4 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
5 | hoop houses used for propagating, growing, or
overwintering | ||||||
6 | plants shall be considered farm machinery and equipment under
| ||||||
7 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
8 | shall include units sold
separately from a motor vehicle | ||||||
9 | required to be licensed and units sold mounted
on a motor | ||||||
10 | vehicle required to be licensed, if the selling price of the | ||||||
11 | tender
is separately stated.
| ||||||
12 | Farm machinery and equipment shall include precision | ||||||
13 | farming equipment
that is
installed or purchased to be | ||||||
14 | installed on farm machinery and equipment
including, but not | ||||||
15 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
16 | or spreaders.
Precision farming equipment includes, but is not | ||||||
17 | limited to,
soil testing sensors, computers, monitors, | ||||||
18 | software, global positioning
and mapping systems, and other | ||||||
19 | such equipment.
| ||||||
20 | Farm machinery and equipment also includes computers, | ||||||
21 | sensors, software, and
related equipment used primarily in the
| ||||||
22 | computer-assisted operation of production agriculture | ||||||
23 | facilities, equipment,
and activities such as, but
not limited | ||||||
24 | to,
the collection, monitoring, and correlation of
animal and | ||||||
25 | crop data for the purpose of
formulating animal diets and | ||||||
26 | agricultural chemicals. This item (7) is exempt
from the |
| |||||||
| |||||||
1 | provisions of
Section 2-70.
| ||||||
2 | (3) Until July 1, 2003, distillation machinery and | ||||||
3 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
4 | retailer, certified by the user to be used
only for the | ||||||
5 | production of ethyl alcohol that will be used for consumption
| ||||||
6 | as motor fuel or as a component of motor fuel for the personal | ||||||
7 | use of the
user, and not subject to sale or resale.
| ||||||
8 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
9 | 2004 through August 30, 2014 , graphic arts machinery and | ||||||
10 | equipment, including
repair and
replacement parts, both new and | ||||||
11 | used, and including that manufactured on
special order or | ||||||
12 | purchased for lease, certified by the purchaser to be used
| ||||||
13 | primarily for graphic arts production.
Equipment includes | ||||||
14 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
15 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
16 | immediate
change upon a
graphic arts product.
| ||||||
17 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
18 | of the second division that is a self contained motor vehicle | ||||||
19 | designed or permanently converted to provide living quarters | ||||||
20 | for recreational, camping, or travel use, with direct walk | ||||||
21 | through access to the living quarters from the driver's seat, | ||||||
22 | or a motor vehicle of the second division that is of the van | ||||||
23 | configuration designed for the transportation of not less than | ||||||
24 | 7 nor more than 16 passengers, as defined in Section 1-146 of | ||||||
25 | the Illinois Vehicle Code, that is used for automobile renting, | ||||||
26 | as defined in the Automobile Renting Occupation and Use Tax |
| |||||||
| |||||||
1 | Act. This paragraph is exempt from
the provisions of Section | ||||||
2 | 2-70.
| ||||||
3 | (6) Personal property sold by a teacher-sponsored student | ||||||
4 | organization
affiliated with an elementary or secondary school | ||||||
5 | located in Illinois.
| ||||||
6 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
7 | selling price of
a passenger car the
sale of which is subject | ||||||
8 | to the Replacement Vehicle Tax.
| ||||||
9 | (8) Personal property sold to an Illinois county fair | ||||||
10 | association for
use in conducting, operating, or promoting the | ||||||
11 | county fair.
| ||||||
12 | (9) Personal property sold to a not-for-profit arts
or | ||||||
13 | cultural organization that establishes, by proof required by | ||||||
14 | the Department
by
rule, that it has received an exemption under | ||||||
15 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
16 | organized and operated primarily for the
presentation
or | ||||||
17 | support of arts or cultural programming, activities, or | ||||||
18 | services. These
organizations include, but are not limited to, | ||||||
19 | music and dramatic arts
organizations such as symphony | ||||||
20 | orchestras and theatrical groups, arts and
cultural service | ||||||
21 | organizations, local arts councils, visual arts organizations,
| ||||||
22 | and media arts organizations.
On and after the effective date | ||||||
23 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
24 | an entity otherwise eligible for this exemption shall not
make | ||||||
25 | tax-free purchases unless it has an active identification | ||||||
26 | number issued by
the Department.
|
| |||||||
| |||||||
1 | (10) Personal property sold by a corporation, society, | ||||||
2 | association,
foundation, institution, or organization, other | ||||||
3 | than a limited liability
company, that is organized and | ||||||
4 | operated as a not-for-profit service enterprise
for the benefit | ||||||
5 | of persons 65 years of age or older if the personal property
| ||||||
6 | was not purchased by the enterprise for the purpose of resale | ||||||
7 | by the
enterprise.
| ||||||
8 | (11) Personal property sold to a governmental body, to a | ||||||
9 | corporation,
society, association, foundation, or institution | ||||||
10 | organized and operated
exclusively for charitable, religious, | ||||||
11 | or educational purposes, or to a
not-for-profit corporation, | ||||||
12 | society, association, foundation, institution,
or organization | ||||||
13 | that has no compensated officers or employees and that is
| ||||||
14 | organized and operated primarily for the recreation of persons | ||||||
15 | 55 years of
age or older. A limited liability company may | ||||||
16 | qualify for the exemption under
this paragraph only if the | ||||||
17 | limited liability company is organized and operated
| ||||||
18 | exclusively for educational purposes. On and after July 1, | ||||||
19 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
20 | shall make tax-free purchases
unless it has an active | ||||||
21 | identification number issued by the Department.
| ||||||
22 | (12) Tangible personal property sold to
interstate | ||||||
23 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
24 | commerce or to lessors under leases of
one year or longer | ||||||
25 | executed or in effect at the time of purchase by
interstate | ||||||
26 | carriers for hire for use as rolling stock moving in interstate
|
| |||||||
| |||||||
1 | commerce and equipment operated by a telecommunications | ||||||
2 | provider, licensed as a
common carrier by the Federal | ||||||
3 | Communications Commission, which is permanently
installed in | ||||||
4 | or affixed to aircraft moving in interstate commerce.
| ||||||
5 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
6 | motor vehicles of the second division
with a gross vehicle | ||||||
7 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
8 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
9 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
10 | through June 30, 2005, the use in this State of motor vehicles | ||||||
11 | of the second division: (i) with a gross vehicle weight rating | ||||||
12 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
13 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
14 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
15 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
16 | applies to repair and replacement parts added
after the
initial | ||||||
17 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
18 | in a
manner that
would qualify for the rolling stock exemption | ||||||
19 | otherwise provided for in this
Act. For purposes of this | ||||||
20 | paragraph, "used for commercial purposes" means the | ||||||
21 | transportation of persons or property in furtherance of any | ||||||
22 | commercial or industrial enterprise whether for-hire or not.
| ||||||
23 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
24 | tangible personal property that is utilized by interstate | ||||||
25 | carriers for
hire for use as rolling stock moving in interstate | ||||||
26 | commerce
and equipment operated by a telecommunications |
| |||||||
| |||||||
1 | provider, licensed as a
common carrier by the Federal | ||||||
2 | Communications Commission, which is
permanently installed in | ||||||
3 | or affixed to aircraft moving in interstate commerce.
| ||||||
4 | (14) Machinery and equipment that will be used by the | ||||||
5 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
6 | process of manufacturing or
assembling tangible personal | ||||||
7 | property for wholesale or retail sale or
lease, whether the | ||||||
8 | sale or lease is made directly by the manufacturer or by
some | ||||||
9 | other person, whether the materials used in the process are | ||||||
10 | owned by
the manufacturer or some other person, or whether the | ||||||
11 | sale or lease is made
apart from or as an incident to the | ||||||
12 | seller's engaging in the service
occupation of producing | ||||||
13 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
14 | items of no commercial value on special order for a particular
| ||||||
15 | purchaser.
| ||||||
16 | (15) Proceeds of mandatory service charges separately | ||||||
17 | stated on
customers' bills for purchase and consumption of food | ||||||
18 | and beverages, to the
extent that the proceeds of the service | ||||||
19 | charge are in fact turned over as
tips or as a substitute for | ||||||
20 | tips to the employees who participate directly
in preparing, | ||||||
21 | serving, hosting or cleaning up the food or beverage function
| ||||||
22 | with respect to which the service charge is imposed.
| ||||||
23 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
24 | is prohibited by federal law from charging tax to the | ||||||
25 | purchaser.
| ||||||
26 | (17) Tangible personal property sold to a common carrier by |
| |||||||
| |||||||
1 | rail or
motor that
receives the physical possession of the | ||||||
2 | property in Illinois and that
transports the property, or | ||||||
3 | shares with another common carrier in the
transportation of the | ||||||
4 | property, out of Illinois on a standard uniform bill
of lading | ||||||
5 | showing the seller of the property as the shipper or consignor | ||||||
6 | of
the property to a destination outside Illinois, for use | ||||||
7 | outside Illinois.
| ||||||
8 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
9 | coinage
issued by the State of Illinois, the government of the | ||||||
10 | United States of
America, or the government of any foreign | ||||||
11 | country, and bullion.
| ||||||
12 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
13 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
14 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
15 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
16 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
17 | individual replacement part for oil field exploration,
| ||||||
18 | drilling, and production equipment, and (vi) machinery and | ||||||
19 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
20 | required to be registered under the Illinois
Vehicle Code.
| ||||||
21 | (20) Photoprocessing machinery and equipment, including | ||||||
22 | repair and
replacement parts, both new and used, including that | ||||||
23 | manufactured on
special order, certified by the purchaser to be | ||||||
24 | used primarily for
photoprocessing, and including | ||||||
25 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
26 | (21) Until July 1, 2003, coal exploration, mining, |
| |||||||
| |||||||
1 | offhighway hauling,
processing,
maintenance, and reclamation | ||||||
2 | equipment, including
replacement parts and equipment, and | ||||||
3 | including
equipment purchased for lease, but excluding motor | ||||||
4 | vehicles required to be
registered under the Illinois Vehicle | ||||||
5 | Code.
| ||||||
6 | (22) Fuel and petroleum products sold to or used by an air | ||||||
7 | carrier,
certified by the carrier to be used for consumption, | ||||||
8 | shipment, or storage
in the conduct of its business as an air | ||||||
9 | common carrier, for a flight
destined for or returning from a | ||||||
10 | location or locations
outside the United States without regard | ||||||
11 | to previous or subsequent domestic
stopovers.
| ||||||
12 | (23) A transaction in which the purchase order is received | ||||||
13 | by a florist
who is located outside Illinois, but who has a | ||||||
14 | florist located in Illinois
deliver the property to the | ||||||
15 | purchaser or the purchaser's donee in Illinois.
| ||||||
16 | (24) Fuel consumed or used in the operation of ships, | ||||||
17 | barges, or vessels
that are used primarily in or for the | ||||||
18 | transportation of property or the
conveyance of persons for | ||||||
19 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
20 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
21 | it is afloat upon that bordering river.
| ||||||
22 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
23 | motor vehicle sold in this State to a nonresident even though | ||||||
24 | the
motor vehicle is delivered to the nonresident in this | ||||||
25 | State, if the motor
vehicle is not to be titled in this State, | ||||||
26 | and if a drive-away permit
is issued to the motor vehicle as |
| |||||||
| |||||||
1 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
2 | the nonresident purchaser has vehicle registration
plates to | ||||||
3 | transfer to the motor vehicle upon returning to his or her home
| ||||||
4 | state. The issuance of the drive-away permit or having
the
| ||||||
5 | out-of-state registration plates to be transferred is prima | ||||||
6 | facie evidence
that the motor vehicle will not be titled in | ||||||
7 | this State.
| ||||||
8 | (25-5) The exemption under item (25) does not apply if the | ||||||
9 | state in which the motor vehicle will be titled does not allow | ||||||
10 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
11 | in that state to an Illinois resident but titled in Illinois. | ||||||
12 | The tax collected under this Act on the sale of a motor vehicle | ||||||
13 | in this State to a resident of another state that does not | ||||||
14 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
15 | to the state's rate of tax on taxable property in the state in | ||||||
16 | which the purchaser is a resident, except that the tax shall | ||||||
17 | not exceed the tax that would otherwise be imposed under this | ||||||
18 | Act. At the time of the sale, the purchaser shall execute a | ||||||
19 | statement, signed under penalty of perjury, of his or her | ||||||
20 | intent to title the vehicle in the state in which the purchaser | ||||||
21 | is a resident within 30 days after the sale and of the fact of | ||||||
22 | the payment to the State of Illinois of tax in an amount | ||||||
23 | equivalent to the state's rate of tax on taxable property in | ||||||
24 | his or her state of residence and shall submit the statement to | ||||||
25 | the appropriate tax collection agency in his or her state of | ||||||
26 | residence. In addition, the retailer must retain a signed copy |
| |||||||
| |||||||
1 | of the statement in his or her records. Nothing in this item | ||||||
2 | shall be construed to require the removal of the vehicle from | ||||||
3 | this state following the filing of an intent to title the | ||||||
4 | vehicle in the purchaser's state of residence if the purchaser | ||||||
5 | titles the vehicle in his or her state of residence within 30 | ||||||
6 | days after the date of sale. The tax collected under this Act | ||||||
7 | in accordance with this item (25-5) shall be proportionately | ||||||
8 | distributed as if the tax were collected at the 6.25% general | ||||||
9 | rate imposed under this Act.
| ||||||
10 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
11 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
12 | the Illinois Aeronautics Act, if all of the following | ||||||
13 | conditions are met: | ||||||
14 | (1) the aircraft leaves this State within 15 days after | ||||||
15 | the later of either the issuance of the final billing for | ||||||
16 | the sale of the aircraft, or the authorized approval for | ||||||
17 | return to service, completion of the maintenance record | ||||||
18 | entry, and completion of the test flight and ground test | ||||||
19 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
20 | (2) the aircraft is not based or registered in this | ||||||
21 | State after the sale of the aircraft; and | ||||||
22 | (3) the seller retains in his or her books and records | ||||||
23 | and provides to the Department a signed and dated | ||||||
24 | certification from the purchaser, on a form prescribed by | ||||||
25 | the Department, certifying that the requirements of this | ||||||
26 | item (25-7) are met. The certificate must also include the |
| |||||||
| |||||||
1 | name and address of the purchaser, the address of the | ||||||
2 | location where the aircraft is to be titled or registered, | ||||||
3 | the address of the primary physical location of the | ||||||
4 | aircraft, and other information that the Department may | ||||||
5 | reasonably require. | ||||||
6 | For purposes of this item (25-7): | ||||||
7 | "Based in this State" means hangared, stored, or otherwise | ||||||
8 | used, excluding post-sale customizations as defined in this | ||||||
9 | Section, for 10 or more days in each 12-month period | ||||||
10 | immediately following the date of the sale of the aircraft. | ||||||
11 | "Registered in this State" means an aircraft registered | ||||||
12 | with the Department of Transportation, Aeronautics Division, | ||||||
13 | or titled or registered with the Federal Aviation | ||||||
14 | Administration to an address located in this State. | ||||||
15 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
16 | Section 2-70.
| ||||||
17 | (26) Semen used for artificial insemination of livestock | ||||||
18 | for direct
agricultural production.
| ||||||
19 | (27) Horses, or interests in horses, registered with and | ||||||
20 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
21 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
22 | Horse Association, United States
Trotting Association, or | ||||||
23 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
24 | racing for prizes. This item (27) is exempt from the provisions | ||||||
25 | of Section 2-70, and the exemption provided for under this item | ||||||
26 | (27) applies for all periods beginning May 30, 1995, but no |
| |||||||
| |||||||
1 | claim for credit or refund is allowed on or after January 1, | ||||||
2 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
3 | paid during the period beginning May 30, 2000 and ending on | ||||||
4 | January 1, 2008 (the effective date of Public Act 95-88)
.
| ||||||
5 | (28) Computers and communications equipment utilized for | ||||||
6 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
7 | analysis, or treatment of hospital patients sold to a lessor | ||||||
8 | who leases the
equipment, under a lease of one year or longer | ||||||
9 | executed or in effect at the
time of the purchase, to a
| ||||||
10 | hospital
that has been issued an active tax exemption | ||||||
11 | identification number by the
Department under Section 1g of | ||||||
12 | this Act.
| ||||||
13 | (29) Personal property sold to a lessor who leases the
| ||||||
14 | property, under a
lease of one year or longer executed or in | ||||||
15 | effect at the time of the purchase,
to a governmental body
that | ||||||
16 | has been issued an active tax exemption identification number | ||||||
17 | by the
Department under Section 1g of this Act.
| ||||||
18 | (30) Beginning with taxable years ending on or after | ||||||
19 | December
31, 1995
and
ending with taxable years ending on or | ||||||
20 | before December 31, 2004,
personal property that is
donated for | ||||||
21 | disaster relief to be used in a State or federally declared
| ||||||
22 | disaster area in Illinois or bordering Illinois by a | ||||||
23 | manufacturer or retailer
that is registered in this State to a | ||||||
24 | corporation, society, association,
foundation, or institution | ||||||
25 | that has been issued a sales tax exemption
identification | ||||||
26 | number by the Department that assists victims of the disaster
|
| |||||||
| |||||||
1 | who reside within the declared disaster area.
| ||||||
2 | (31) Beginning with taxable years ending on or after | ||||||
3 | December
31, 1995 and
ending with taxable years ending on or | ||||||
4 | before December 31, 2004, personal
property that is used in the | ||||||
5 | performance of infrastructure repairs in this
State, including | ||||||
6 | but not limited to municipal roads and streets, access roads,
| ||||||
7 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
8 | line extensions,
water distribution and purification | ||||||
9 | facilities, storm water drainage and
retention facilities, and | ||||||
10 | sewage treatment facilities, resulting from a State
or | ||||||
11 | federally declared disaster in Illinois or bordering Illinois | ||||||
12 | when such
repairs are initiated on facilities located in the | ||||||
13 | declared disaster area
within 6 months after the disaster.
| ||||||
14 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
15 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
16 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
17 | at a hunting enclosure approved through rules adopted by the
| ||||||
18 | Department of Natural Resources. This paragraph is exempt from | ||||||
19 | the provisions
of
Section 2-70.
| ||||||
20 | (33) 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 | (34) 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 2-70.
| ||||||
26 | (35) 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 2-70.
| ||||||
10 | (35-5) Beginning August 23, 2001 and through June 30, 2011, | ||||||
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 5 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.
| ||||||
21 | (36) Beginning August 2, 2001, computers and | ||||||
22 | communications equipment
utilized for any hospital purpose and | ||||||
23 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
24 | hospital patients sold to a lessor who leases the
equipment, | ||||||
25 | under a lease of one year or longer executed or in effect at | ||||||
26 | the
time of the purchase, to a hospital that has been issued an |
| |||||||
| |||||||
1 | active tax
exemption identification number by the Department | ||||||
2 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
3 | provisions of Section 2-70.
| ||||||
4 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
5 | lessor who
leases the property, under a lease of one year or | ||||||
6 | longer executed or in effect
at the time of the purchase, to a | ||||||
7 | governmental body that has been issued an
active tax exemption | ||||||
8 | identification number by the Department under Section 1g
of | ||||||
9 | this Act. This paragraph is exempt from the provisions of | ||||||
10 | Section 2-70.
| ||||||
11 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
12 | 2011, tangible personal property purchased
from an Illinois | ||||||
13 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
14 | activities in Illinois who will, upon receipt of the property | ||||||
15 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
16 | the purpose of subsequently
transporting it outside this State | ||||||
17 | for use or consumption thereafter solely
outside this State or | ||||||
18 | (ii) for the purpose of being processed, fabricated, or
| ||||||
19 | manufactured into, attached to, or incorporated into other | ||||||
20 | tangible personal
property to be transported outside this State | ||||||
21 | and thereafter used or consumed
solely outside this State. The | ||||||
22 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
23 | accordance with the Illinois Administrative Procedure Act, | ||||||
24 | issue a
permit to any taxpayer in good standing with the | ||||||
25 | Department who is eligible for
the exemption under this | ||||||
26 | paragraph (38). The permit issued under
this paragraph (38) |
| |||||||
| |||||||
1 | shall authorize the holder, to the extent and
in the manner | ||||||
2 | specified in the rules adopted under this Act, to purchase
| ||||||
3 | tangible personal property from a retailer exempt from the | ||||||
4 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
5 | necessary books and records to
substantiate the use and | ||||||
6 | consumption of all such tangible personal property
outside of | ||||||
7 | the State of Illinois.
| ||||||
8 | (39) Beginning January 1, 2008, tangible personal property | ||||||
9 | used in the construction or maintenance of a community water | ||||||
10 | supply, as defined under Section 3.145 of the Environmental | ||||||
11 | Protection Act, that is operated by a not-for-profit | ||||||
12 | corporation that holds a valid water supply permit issued under | ||||||
13 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
14 | exempt from the provisions of Section 2-70.
| ||||||
15 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-233, | ||||||
16 | eff. 8-16-07; 95-304, eff. 8-20-07; 95-538, eff. 1-1-08; | ||||||
17 | 95-707, eff. 1-11-08; 95-876, eff. 8-21-08.)
| ||||||
18 | (35 ILCS 120/2-30) (from Ch. 120, par. 441-30)
| ||||||
19 | Sec. 2-30. Graphic arts production. For purposes of this | ||||||
20 | Act, "graphic arts
production" means the production of tangible | ||||||
21 | personal property for wholesale or retail sale or lease by | ||||||
22 | means of printing, including ink jet printing, by one or more | ||||||
23 | of the
processes described in Groups 323110 through 323122 of | ||||||
24 | Subsector 323, Groups
511110 through 511199 of Subsector 511, | ||||||
25 | and Group 512230 of Subsector 512 of
the North American |
| |||||||
| |||||||
1 | Industry Classification System published by the U.S. Office
of | ||||||
2 | Management and Budget, 1997 edition. Graphic arts production | ||||||
3 | does not
include (i) the transfer of images onto paper or other | ||||||
4 | tangible personal
property by means of photocopying or (ii) | ||||||
5 | final printed products in electronic
or audio form, including | ||||||
6 | the production of software or audio-books. For purposes of this | ||||||
7 | Section, persons engaged primarily in the business of printing | ||||||
8 | or publishing newspapers or magazines that qualify as newsprint | ||||||
9 | and ink, by one or more of the processes described in Groups | ||||||
10 | 511110 through 511199 of subsector 511 of the North American | ||||||
11 | Industry Classification System published by the U.S. Office of | ||||||
12 | Management and Budget, 1997 edition, are deemed to be engaged | ||||||
13 | in graphic arts production.
| ||||||
14 | (Source: P.A. 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)
| ||||||
15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
|