Bill Text: IL SB3238 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the exemption for coal and aggregate exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment sunsets on June 30, 2023 (currently, the exemption is subject to the Acts' automatic sunset provisions). Effective immediately.

Spectrum: Bipartisan Bill

Status: (Engrossed) 2018-11-07 - Placed on Calendar 2nd Reading - Short Debate [SB3238 Detail]

Download: Illinois-2017-SB3238-Engrossed.html



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

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35) this amendatory Act of the
892nd General Assembly, however, an entity otherwise eligible
9for this exemption shall not make tax-free purchases unless it
10has an active identification number issued by the Department.
11 (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25 (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

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1the car is subject to the Replacement Vehicle Tax.
2 (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product. Beginning on July 1, 2017, graphic arts
12machinery and equipment is included in the manufacturing and
13assembling machinery and equipment exemption under paragraph
14(18).
15 (7) Farm chemicals.
16 (8) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20 (9) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23 (10) A motor vehicle that is used for automobile renting,
24as defined in the Automobile Renting Occupation and Use Tax
25Act.
26 (11) Farm machinery and equipment, both new and used,

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

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

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1stated on customers' bills for the purchase and consumption of
2food and beverages purchased at retail from a retailer, to the
3extent that the proceeds of the service charge are in fact
4turned over as tips or as a substitute for tips to the
5employees who participate directly in preparing, serving,
6hosting or cleaning up the food or beverage function with
7respect to which the service charge is imposed.
8 (14) Until July 1, 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of rigs,
10rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
11tubular goods, including casing and drill strings, (iii) pumps
12and pump-jack units, (iv) storage tanks and flow lines, (v) any
13individual replacement part for oil field exploration,
14drilling, and production equipment, and (vi) machinery and
15equipment purchased for lease; but excluding motor vehicles
16required to be registered under the Illinois Vehicle Code.
17 (15) Photoprocessing machinery and equipment, including
18repair and replacement parts, both new and used, including that
19manufactured on special order, certified by the purchaser to be
20used primarily for photoprocessing, and including
21photoprocessing machinery and equipment purchased for lease.
22 (16) Until July 1, 2023, coal Coal and aggregate
23exploration, mining, off-highway hauling, processing,
24maintenance, and reclamation equipment, including replacement
25parts and equipment, and including equipment purchased for
26lease, but excluding motor vehicles required to be registered

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1under the Illinois Vehicle Code. The changes made to this
2Section by Public Act 97-767 apply on and after July 1, 2003,
3but no claim for credit or refund is allowed on or after August
416, 2013 (the effective date of Public Act 98-456) for such
5taxes paid during the period beginning July 1, 2003 and ending
6on August 16, 2013 (the effective date of Public Act 98-456).
7 (17) Until July 1, 2003, distillation machinery and
8equipment, sold as a unit or kit, assembled or installed by the
9retailer, certified by the user to be used only for the
10production of ethyl alcohol that will be used for consumption
11as motor fuel or as a component of motor fuel for the personal
12use of the user, and not subject to sale or resale.
13 (18) Manufacturing and assembling machinery and equipment
14used primarily in the process of manufacturing or assembling
15tangible personal property for wholesale or retail sale or
16lease, whether that sale or lease is made directly by the
17manufacturer or by some other person, whether the materials
18used in the process are owned by the manufacturer or some other
19person, or whether that sale or lease is made apart from or as
20an incident to the seller's engaging in the service occupation
21of producing machines, tools, dies, jigs, patterns, gauges, or
22other similar items of no commercial value on special order for
23a particular purchaser. The exemption provided by this
24paragraph (18) does not include machinery and equipment used in
25(i) the generation of electricity for wholesale or retail sale;
26(ii) the generation or treatment of natural or artificial gas

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1for wholesale or retail sale that is delivered to customers
2through pipes, pipelines, or mains; or (iii) the treatment of
3water for wholesale or retail sale that is delivered to
4customers through pipes, pipelines, or mains. The provisions of
5Public Act 98-583 are declaratory of existing law as to the
6meaning and scope of this exemption. Beginning on July 1, 2017,
7the exemption provided by this paragraph (18) includes, but is
8not limited to, graphic arts machinery and equipment, as
9defined in paragraph (6) of this Section.
10 (19) Personal property delivered to a purchaser or
11purchaser's donee inside Illinois when the purchase order for
12that personal property was received by a florist located
13outside Illinois who has a florist located inside Illinois
14deliver the personal property.
15 (20) Semen used for artificial insemination of livestock
16for direct agricultural production.
17 (21) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (21) is exempt from the provisions
23of Section 3-90, and the exemption provided for under this item
24(21) applies for all periods beginning May 30, 1995, but no
25claim for credit or refund is allowed on or after January 1,
262008 for such taxes paid during the period beginning May 30,

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12000 and ending on January 1, 2008.
2 (22) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients purchased by a
5lessor who leases the equipment, under a lease of one year or
6longer executed or in effect at the time the lessor would
7otherwise be subject to the tax imposed by this Act, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act. If the equipment is leased in a
11manner that does not qualify for this exemption or is used in
12any other non-exempt manner, the lessor shall be liable for the
13tax imposed under this Act or the Service Use Tax Act, as the
14case may be, based on the fair market value of the property at
15the time the non-qualifying use occurs. No lessor shall collect
16or attempt to collect an amount (however designated) that
17purports to reimburse that lessor for the tax imposed by this
18Act or the Service Use Tax Act, as the case may be, if the tax
19has not been paid by the lessor. If a lessor improperly
20collects any such amount from the lessee, the lessee shall have
21a legal right to claim a refund of that amount from the lessor.
22If, however, that amount is not refunded to the lessee for any
23reason, the lessor is liable to pay that amount to the
24Department.
25 (23) Personal property purchased by a lessor who leases the
26property, under a lease of one year or longer executed or in

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

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3 (25) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in the
6performance of infrastructure repairs in this State, including
7but not limited to municipal roads and streets, access roads,
8bridges, sidewalks, waste disposal systems, water and sewer
9line extensions, water distribution and purification
10facilities, storm water drainage and retention facilities, and
11sewage treatment facilities, resulting from a State or
12federally declared disaster in Illinois or bordering Illinois
13when such repairs are initiated on facilities located in the
14declared disaster area within 6 months after the disaster.
15 (26) Beginning July 1, 1999, game or game birds purchased
16at a "game breeding and hunting preserve area" as that term is
17used in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-90.
19 (27) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the Department
23to be organized and operated exclusively for educational
24purposes. For purposes of this exemption, "a corporation,
25limited liability company, society, association, foundation,
26or institution organized and operated exclusively for

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1educational purposes" means all tax-supported public schools,
2private schools that offer systematic instruction in useful
3branches of learning by methods common to public schools and
4that compare favorably in their scope and intensity with the
5course of study presented in tax-supported schools, and
6vocational or technical schools or institutes organized and
7operated exclusively to provide a course of study of not less
8than 6 weeks duration and designed to prepare individuals to
9follow a trade or to pursue a manual, technical, mechanical,
10industrial, business, or commercial occupation.
11 (28) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-90.
25 (29) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

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1serve hot food and beverages, including coffee, soup, and other
2items, and replacement parts for these machines. Beginning
3January 1, 2002 and through June 30, 2003, machines and parts
4for machines used in commercial, coin-operated amusement and
5vending business if a use or occupation tax is paid on the
6gross receipts derived from the use of the commercial,
7coin-operated amusement and vending machines. This paragraph
8is exempt from the provisions of Section 3-90.
9 (30) Beginning January 1, 2001 and through June 30, 2016,
10food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages, soft
12drinks, and food that has been prepared for immediate
13consumption) and prescription and nonprescription medicines,
14drugs, medical appliances, and insulin, urine testing
15materials, syringes, and needles used by diabetics, for human
16use, when purchased for use by a person receiving medical
17assistance under Article V of the Illinois Public Aid Code who
18resides in a licensed long-term care facility, as defined in
19the Nursing Home Care Act, or in a licensed facility as defined
20in the ID/DD Community Care Act, the MC/DD Act, or the
21Specialized Mental Health Rehabilitation Act of 2013.
22 (31) Beginning on August 2, 2001 (the effective date of
23Public Act 92-227) this amendatory Act of the 92nd General
24Assembly, computers and communications equipment utilized for
25any hospital purpose and equipment used in the diagnosis,
26analysis, or treatment of hospital patients purchased by a

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1lessor who leases the equipment, under a lease of one year or
2longer executed or in effect at the time the lessor would
3otherwise be subject to the tax imposed by this Act, to a
4hospital that has been issued an active tax exemption
5identification number by the Department under Section 1g of the
6Retailers' Occupation Tax Act. If the equipment is leased in a
7manner that does not qualify for this exemption or is used in
8any other nonexempt manner, the lessor shall be liable for the
9tax imposed under this Act or the Service Use Tax Act, as the
10case may be, based on the fair market value of the property at
11the time the nonqualifying use occurs. No lessor shall collect
12or attempt to collect an amount (however designated) that
13purports to reimburse that lessor for the tax imposed by this
14Act or the Service Use Tax Act, as the case may be, if the tax
15has not been paid by the lessor. If a lessor improperly
16collects any such amount from the lessee, the lessee shall have
17a legal right to claim a refund of that amount from the lessor.
18If, however, that amount is not refunded to the lessee for any
19reason, the lessor is liable to pay that amount to the
20Department. This paragraph is exempt from the provisions of
21Section 3-90.
22 (32) Beginning on August 2, 2001 (the effective date of
23Public Act 92-227) this amendatory Act of the 92nd General
24Assembly, personal property purchased by a lessor who leases
25the property, under a lease of one year or longer executed or
26in effect at the time the lessor would otherwise be subject to

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1the tax imposed by this Act, to a governmental body that has
2been issued an active sales tax exemption identification number
3by the Department under Section 1g of the Retailers' Occupation
4Tax Act. If the property is leased in a manner that does not
5qualify for this exemption or used in any other nonexempt
6manner, the lessor shall be liable for the tax imposed under
7this Act or the Service Use Tax Act, as the case may be, based
8on the fair market value of the property at the time the
9nonqualifying use occurs. No lessor shall collect or attempt to
10collect an amount (however designated) that purports to
11reimburse that lessor for the tax imposed by this Act or the
12Service Use Tax Act, as the case may be, if the tax has not been
13paid by the lessor. If a lessor improperly collects any such
14amount from the lessee, the lessee shall have a legal right to
15claim a refund of that amount from the lessor. If, however,
16that amount is not refunded to the lessee for any reason, the
17lessor is liable to pay that amount to the Department. This
18paragraph is exempt from the provisions of Section 3-90.
19 (33) On and after July 1, 2003 and through June 30, 2004,
20the use in this State of motor vehicles of the second division
21with a gross vehicle weight in excess of 8,000 pounds and that
22are subject to the commercial distribution fee imposed under
23Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
241, 2004 and through June 30, 2005, the use in this State of
25motor vehicles of the second division: (i) with a gross vehicle
26weight rating in excess of 8,000 pounds; (ii) that are subject

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1to the commercial distribution fee imposed under Section
23-815.1 of the Illinois Vehicle Code; and (iii) that are
3primarily used for commercial purposes. Through June 30, 2005,
4this exemption applies to repair and replacement parts added
5after the initial purchase of such a motor vehicle if that
6motor vehicle is used in a manner that would qualify for the
7rolling stock exemption otherwise provided for in this Act. For
8purposes of this paragraph, the term "used for commercial
9purposes" means the transportation of persons or property in
10furtherance of any commercial or industrial enterprise,
11whether for-hire or not.
12 (34) Beginning January 1, 2008, tangible personal property
13used in the construction or maintenance of a community water
14supply, as defined under Section 3.145 of the Environmental
15Protection Act, that is operated by a not-for-profit
16corporation that holds a valid water supply permit issued under
17Title IV of the Environmental Protection Act. This paragraph is
18exempt from the provisions of Section 3-90.
19 (35) Beginning January 1, 2010, materials, parts,
20equipment, components, and furnishings incorporated into or
21upon an aircraft as part of the modification, refurbishment,
22completion, replacement, repair, or maintenance of the
23aircraft. This exemption includes consumable supplies used in
24the modification, refurbishment, completion, replacement,
25repair, and maintenance of aircraft, but excludes any
26materials, parts, equipment, components, and consumable

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1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to the use of qualifying
8tangible personal property by persons who modify, refurbish,
9complete, repair, replace, or maintain aircraft and who (i)
10hold an Air Agency Certificate and are empowered to operate an
11approved repair station by the Federal Aviation
12Administration, (ii) have a Class IV Rating, and (iii) conduct
13operations in accordance with Part 145 of the Federal Aviation
14Regulations. The exemption does not include aircraft operated
15by a commercial air carrier providing scheduled passenger air
16service pursuant to authority issued under Part 121 or Part 129
17of the Federal Aviation Regulations. The changes made to this
18paragraph (35) by Public Act 98-534 are declarative of existing
19law.
20 (36) Tangible personal property purchased by a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt instruments
3issued by the public-facilities corporation in connection with
4the development of the municipal convention hall. This
5exemption includes existing public-facilities corporations as
6provided in Section 11-65-25 of the Illinois Municipal Code.
7This paragraph is exempt from the provisions of Section 3-90.
8 (37) Beginning January 1, 2017, menstrual pads, tampons,
9and menstrual cups.
10 (38) Merchandise that is subject to the Rental Purchase
11Agreement Occupation and Use Tax. The purchaser must certify
12that the item is purchased to be rented subject to a rental
13purchase agreement, as defined in the Rental Purchase Agreement
14Act, and provide proof of registration under the Rental
15Purchase Agreement Occupation and Use Tax Act. This paragraph
16is exempt from the provisions of Section 3-90.
17(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
18100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)
19 Section 10. The Service Use Tax Act is amended by changing
20Section 3-5 as follows:
21 (35 ILCS 110/3-5)
22 Sec. 3-5. Exemptions. Use of the following tangible
23personal property is exempt from the tax imposed by this Act:
24 (1) Personal property purchased from a corporation,

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

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1United States of America, or the government of any foreign
2country, and bullion.
3 (5) Until July 1, 2003 and beginning again on September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new and
6used, and including that manufactured on special order or
7purchased for lease, certified by the purchaser to be used
8primarily for graphic arts production. Equipment includes
9chemicals or chemicals acting as catalysts but only if the
10chemicals or chemicals acting as catalysts effect a direct and
11immediate change upon a graphic arts product. Beginning on July
121, 2017, graphic arts machinery and equipment is included in
13the manufacturing and assembling machinery and equipment
14exemption under Section 2 of this Act.
15 (6) Personal property purchased from a teacher-sponsored
16student organization affiliated with an elementary or
17secondary school located in Illinois.
18 (7) Farm machinery and equipment, both new and used,
19including that manufactured on special order, certified by the
20purchaser to be used primarily for production agriculture or
21State or federal agricultural programs, including individual
22replacement parts for the machinery and equipment, including
23machinery and equipment purchased for lease, and including
24implements of husbandry defined in Section 1-130 of the
25Illinois Vehicle Code, farm machinery and agricultural
26chemical and fertilizer spreaders, and nurse wagons required to

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1be registered under Section 3-809 of the Illinois Vehicle Code,
2but excluding other motor vehicles required to be registered
3under the Illinois Vehicle Code. Horticultural polyhouses or
4hoop houses used for propagating, growing, or overwintering
5plants shall be considered farm machinery and equipment under
6this item (7). Agricultural chemical tender tanks and dry boxes
7shall include units sold separately from a motor vehicle
8required to be licensed and units sold mounted on a motor
9vehicle required to be licensed if the selling price of the
10tender is separately stated.
11 Farm machinery and equipment shall include precision
12farming equipment that is installed or purchased to be
13installed on farm machinery and equipment including, but not
14limited to, tractors, harvesters, sprayers, planters, seeders,
15or spreaders. Precision farming equipment includes, but is not
16limited to, soil testing sensors, computers, monitors,
17software, global positioning and mapping systems, and other
18such equipment.
19 Farm machinery and equipment also includes computers,
20sensors, software, and related equipment used primarily in the
21computer-assisted operation of production agriculture
22facilities, equipment, and activities such as, but not limited
23to, the collection, monitoring, and correlation of animal and
24crop data for the purpose of formulating animal diets and
25agricultural chemicals. This item (7) is exempt from the
26provisions of Section 3-75.

SB3238 Engrossed- 22 -LRB100 16105 HLH 31224 b
1 (8) Until June 30, 2013, fuel and petroleum products sold
2to or used by an air common carrier, certified by the carrier
3to be used for consumption, shipment, or storage in the conduct
4of its business as an air common carrier, for a flight destined
5for or returning from a location or locations outside the
6United States without regard to previous or subsequent domestic
7stopovers.
8 Beginning July 1, 2013, fuel and petroleum products sold to
9or used by an air carrier, certified by the carrier to be used
10for consumption, shipment, or storage in the conduct of its
11business as an air common carrier, for a flight that (i) is
12engaged in foreign trade or is engaged in trade between the
13United States and any of its possessions and (ii) transports at
14least one individual or package for hire from the city of
15origination to the city of final destination on the same
16aircraft, without regard to a change in the flight number of
17that aircraft.
18 (9) Proceeds of mandatory service charges separately
19stated on customers' bills for the purchase and consumption of
20food and beverages acquired as an incident to the purchase of a
21service from a serviceman, to the extent that the proceeds of
22the service charge are in fact turned over as tips or as a
23substitute for tips to the employees who participate directly
24in preparing, serving, hosting or cleaning up the food or
25beverage function with respect to which the service charge is
26imposed.

SB3238 Engrossed- 23 -LRB100 16105 HLH 31224 b
1 (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of rigs,
3rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
4tubular goods, including casing and drill strings, (iii) pumps
5and pump-jack units, (iv) storage tanks and flow lines, (v) any
6individual replacement part for oil field exploration,
7drilling, and production equipment, and (vi) machinery and
8equipment purchased for lease; but excluding motor vehicles
9required to be registered under the Illinois Vehicle Code.
10 (11) Proceeds from the sale of photoprocessing machinery
11and equipment, including repair and replacement parts, both new
12and used, including that manufactured on special order,
13certified by the purchaser to be used primarily for
14photoprocessing, and including photoprocessing machinery and
15equipment purchased for lease.
16 (12) Until July 1, 2023, coal Coal and aggregate
17exploration, mining, off-highway hauling, processing,
18maintenance, and reclamation equipment, including replacement
19parts and equipment, and including equipment purchased for
20lease, but excluding motor vehicles required to be registered
21under the Illinois Vehicle Code. The changes made to this
22Section by Public Act 97-767 apply on and after July 1, 2003,
23but no claim for credit or refund is allowed on or after August
2416, 2013 (the effective date of Public Act 98-456) for such
25taxes paid during the period beginning July 1, 2003 and ending
26on August 16, 2013 (the effective date of Public Act 98-456).

SB3238 Engrossed- 24 -LRB100 16105 HLH 31224 b
1 (13) Semen used for artificial insemination of livestock
2for direct agricultural production.
3 (14) Horses, or interests in horses, registered with and
4meeting the requirements of any of the Arabian Horse Club
5Registry of America, Appaloosa Horse Club, American Quarter
6Horse Association, United States Trotting Association, or
7Jockey Club, as appropriate, used for purposes of breeding or
8racing for prizes. This item (14) is exempt from the provisions
9of Section 3-75, and the exemption provided for under this item
10(14) applies for all periods beginning May 30, 1995, but no
11claim for credit or refund is allowed on or after the effective
12date of this amendatory Act of the 95th General Assembly for
13such taxes paid during the period beginning May 30, 2000 and
14ending on the effective date of this amendatory Act of the 95th
15General Assembly.
16 (15) Computers and communications equipment utilized for
17any hospital purpose and equipment used in the diagnosis,
18analysis, or treatment of hospital patients purchased by a
19lessor who leases the equipment, under a lease of one year or
20longer executed or in effect at the time the lessor would
21otherwise be subject to the tax imposed by this Act, to a
22hospital that has been issued an active tax exemption
23identification number by the Department under Section 1g of the
24Retailers' Occupation Tax Act. If the equipment is leased in a
25manner that does not qualify for this exemption or is used in
26any other non-exempt manner, the lessor shall be liable for the

SB3238 Engrossed- 25 -LRB100 16105 HLH 31224 b
1tax imposed under this Act or the Use Tax Act, as the case may
2be, based on the fair market value of the property at the time
3the non-qualifying use occurs. No lessor shall collect or
4attempt to collect an amount (however designated) that purports
5to reimburse that lessor for the tax imposed by this Act or the
6Use Tax Act, as the case may be, if the tax has not been paid by
7the lessor. If a lessor improperly collects any such amount
8from the lessee, the lessee shall have a legal right to claim a
9refund of that amount from the lessor. If, however, that amount
10is not refunded to the lessee for any reason, the lessor is
11liable to pay that amount to the Department.
12 (16) Personal property purchased by a lessor who leases the
13property, under a lease of one year or longer executed or in
14effect at the time the lessor would otherwise be subject to the
15tax imposed by this Act, to a governmental body that has been
16issued an active tax exemption identification number by the
17Department under Section 1g of the Retailers' Occupation Tax
18Act. If the property is leased in a manner that does not
19qualify for this exemption or is used in any other non-exempt
20manner, the lessor shall be liable for the tax imposed under
21this Act or the Use Tax Act, as the case may be, based on the
22fair market value of the property at the time the
23non-qualifying use occurs. No lessor shall collect or attempt
24to collect an amount (however designated) that purports to
25reimburse that lessor for the tax imposed by this Act or the
26Use Tax Act, as the case may be, if the tax has not been paid by

SB3238 Engrossed- 26 -LRB100 16105 HLH 31224 b
1the lessor. If a lessor improperly collects any such amount
2from the lessee, the lessee shall have a legal right to claim a
3refund of that amount from the lessor. If, however, that amount
4is not refunded to the lessee for any reason, the lessor is
5liable to pay that amount to the Department.
6 (17) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is donated for
9disaster relief to be used in a State or federally declared
10disaster area in Illinois or bordering Illinois by a
11manufacturer or retailer that is registered in this State to a
12corporation, society, association, foundation, or institution
13that has been issued a sales tax exemption identification
14number by the Department that assists victims of the disaster
15who reside within the declared disaster area.
16 (18) Beginning with taxable years ending on or after
17December 31, 1995 and ending with taxable years ending on or
18before December 31, 2004, personal property that is used in the
19performance of infrastructure repairs in this State, including
20but not limited to municipal roads and streets, access roads,
21bridges, sidewalks, waste disposal systems, water and sewer
22line extensions, water distribution and purification
23facilities, storm water drainage and retention facilities, and
24sewage treatment facilities, resulting from a State or
25federally declared disaster in Illinois or bordering Illinois
26when such repairs are initiated on facilities located in the

SB3238 Engrossed- 27 -LRB100 16105 HLH 31224 b
1declared disaster area within 6 months after the disaster.
2 (19) Beginning July 1, 1999, game or game birds purchased
3at a "game breeding and hunting preserve area" as that term is
4used in the Wildlife Code. This paragraph is exempt from the
5provisions of Section 3-75.
6 (20) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the Department
10to be organized and operated exclusively for educational
11purposes. For purposes of this exemption, "a corporation,
12limited liability company, society, association, foundation,
13or institution organized and operated exclusively for
14educational purposes" means all tax-supported public schools,
15private schools that offer systematic instruction in useful
16branches of learning by methods common to public schools and
17that compare favorably in their scope and intensity with the
18course of study presented in tax-supported schools, and
19vocational or technical schools or institutes organized and
20operated exclusively to provide a course of study of not less
21than 6 weeks duration and designed to prepare individuals to
22follow a trade or to pursue a manual, technical, mechanical,
23industrial, business, or commercial occupation.
24 (21) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

SB3238 Engrossed- 28 -LRB100 16105 HLH 31224 b
1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 3-75.
12 (22) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and other
15items, and replacement parts for these machines. Beginning
16January 1, 2002 and through June 30, 2003, machines and parts
17for machines used in commercial, coin-operated amusement and
18vending business if a use or occupation tax is paid on the
19gross receipts derived from the use of the commercial,
20coin-operated amusement and vending machines. This paragraph
21is exempt from the provisions of Section 3-75.
22 (23) Beginning August 23, 2001 and through June 30, 2016,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

SB3238 Engrossed- 29 -LRB100 16105 HLH 31224 b
1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or in a licensed facility as defined
7in the ID/DD Community Care Act, the MC/DD Act, or the
8Specialized Mental Health Rehabilitation Act of 2013.
9 (24) Beginning on the effective date of this amendatory Act
10of the 92nd General Assembly, computers and communications
11equipment utilized for any hospital purpose and equipment used
12in the diagnosis, analysis, or treatment of hospital patients
13purchased by a lessor who leases the equipment, under a lease
14of one year or longer executed or in effect at the time the
15lessor would otherwise be subject to the tax imposed by this
16Act, to a hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act. If the equipment is leased in a
19manner that does not qualify for this exemption or is used in
20any other nonexempt manner, the lessor shall be liable for the
21tax imposed under this Act or the Use Tax Act, as the case may
22be, based on the fair market value of the property at the time
23the nonqualifying use occurs. No lessor shall collect or
24attempt to collect an amount (however designated) that purports
25to reimburse that lessor for the tax imposed by this Act or the
26Use Tax Act, as the case may be, if the tax has not been paid by

SB3238 Engrossed- 30 -LRB100 16105 HLH 31224 b
1the lessor. If a lessor improperly collects any such amount
2from the lessee, the lessee shall have a legal right to claim a
3refund of that amount from the lessor. If, however, that amount
4is not refunded to the lessee for any reason, the lessor is
5liable to pay that amount to the Department. This paragraph is
6exempt from the provisions of Section 3-75.
7 (25) Beginning on the effective date of this amendatory Act
8of the 92nd General Assembly, personal property purchased by a
9lessor who leases the property, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12governmental body that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. If the property is leased in a
15manner that does not qualify for this exemption or is used in
16any other nonexempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Use Tax Act, as the case may
18be, based on the fair market value of the property at the time
19the nonqualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that purports
21to reimburse that lessor for the tax imposed by this Act or the
22Use Tax Act, as the case may be, if the tax has not been paid by
23the lessor. If a lessor improperly collects any such amount
24from the lessee, the lessee shall have a legal right to claim a
25refund of that amount from the lessor. If, however, that amount
26is not refunded to the lessee for any reason, the lessor is

SB3238 Engrossed- 31 -LRB100 16105 HLH 31224 b
1liable to pay that amount to the Department. This paragraph is
2exempt from the provisions of Section 3-75.
3 (26) Beginning January 1, 2008, tangible personal property
4used in the construction or maintenance of a community water
5supply, as defined under Section 3.145 of the Environmental
6Protection Act, that is operated by a not-for-profit
7corporation that holds a valid water supply permit issued under
8Title IV of the Environmental Protection Act. This paragraph is
9exempt from the provisions of Section 3-75.
10 (27) Beginning January 1, 2010, materials, parts,
11equipment, components, and furnishings incorporated into or
12upon an aircraft as part of the modification, refurbishment,
13completion, replacement, repair, or maintenance of the
14aircraft. This exemption includes consumable supplies used in
15the modification, refurbishment, completion, replacement,
16repair, and maintenance of aircraft, but excludes any
17materials, parts, equipment, components, and consumable
18supplies used in the modification, replacement, repair, and
19maintenance of aircraft engines or power plants, whether such
20engines or power plants are installed or uninstalled upon any
21such aircraft. "Consumable supplies" include, but are not
22limited to, adhesive, tape, sandpaper, general purpose
23lubricants, cleaning solution, latex gloves, and protective
24films. This exemption applies only to the use of qualifying
25tangible personal property transferred incident to the
26modification, refurbishment, completion, replacement, repair,

SB3238 Engrossed- 32 -LRB100 16105 HLH 31224 b
1or maintenance of aircraft by persons who (i) hold an Air
2Agency Certificate and are empowered to operate an approved
3repair station by the Federal Aviation Administration, (ii)
4have a Class IV Rating, and (iii) conduct operations in
5accordance with Part 145 of the Federal Aviation Regulations.
6The exemption does not include aircraft operated by a
7commercial air carrier providing scheduled passenger air
8service pursuant to authority issued under Part 121 or Part 129
9of the Federal Aviation Regulations. The changes made to this
10paragraph (27) by Public Act 98-534 are declarative of existing
11law.
12 (28) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 3-75.
26 (29) Beginning January 1, 2017, menstrual pads, tampons,

SB3238 Engrossed- 33 -LRB100 16105 HLH 31224 b
1and menstrual cups.
2(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
3100-22, eff. 7-6-17.)
4 Section 15. The Service Occupation Tax Act is amended by
5changing Section 3-5 as follows:
6 (35 ILCS 115/3-5)
7 Sec. 3-5. Exemptions. The following tangible personal
8property is exempt from the tax imposed by this Act:
9 (1) Personal property sold by a corporation, society,
10association, foundation, institution, or organization, other
11than a limited liability company, that is organized and
12operated as a not-for-profit service enterprise for the benefit
13of persons 65 years of age or older if the personal property
14was not purchased by the enterprise for the purpose of resale
15by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19 (3) Personal property purchased by any not-for-profit arts
20or cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or
24support of arts or cultural programming, activities, or

SB3238 Engrossed- 34 -LRB100 16105 HLH 31224 b
1services. These organizations include, but are not limited to,
2music and dramatic arts organizations such as symphony
3orchestras and theatrical groups, arts and cultural service
4organizations, local arts councils, visual arts organizations,
5and media arts organizations. On and after the effective date
6of this amendatory Act of the 92nd General Assembly, however,
7an entity otherwise eligible for this exemption shall not make
8tax-free purchases unless it has an active identification
9number issued by the Department.
10 (4) Legal tender, currency, medallions, or gold or silver
11coinage issued by the State of Illinois, the government of the
12United States of America, or the government of any foreign
13country, and bullion.
14 (5) Until July 1, 2003 and beginning again on September 1,
152004 through August 30, 2014, graphic arts machinery and
16equipment, including repair and replacement parts, both new and
17used, and including that manufactured on special order or
18purchased for lease, certified by the purchaser to be used
19primarily for graphic arts production. Equipment includes
20chemicals or chemicals acting as catalysts but only if the
21chemicals or chemicals acting as catalysts effect a direct and
22immediate change upon a graphic arts product. Beginning on July
231, 2017, graphic arts machinery and equipment is included in
24the manufacturing and assembling machinery and equipment
25exemption under Section 2 of this Act.
26 (6) Personal property sold by a teacher-sponsored student

SB3238 Engrossed- 35 -LRB100 16105 HLH 31224 b
1organization affiliated with an elementary or secondary school
2located in Illinois.
3 (7) Farm machinery and equipment, both new and used,
4including that manufactured on special order, certified by the
5purchaser to be used primarily for production agriculture or
6State or federal agricultural programs, including individual
7replacement parts for the machinery and equipment, including
8machinery and equipment purchased for lease, and including
9implements of husbandry defined in Section 1-130 of the
10Illinois Vehicle Code, farm machinery and agricultural
11chemical and fertilizer spreaders, and nurse wagons required to
12be registered under Section 3-809 of the Illinois Vehicle Code,
13but excluding other motor vehicles required to be registered
14under the Illinois Vehicle Code. Horticultural polyhouses or
15hoop houses used for propagating, growing, or overwintering
16plants shall be considered farm machinery and equipment under
17this item (7). Agricultural chemical tender tanks and dry boxes
18shall include units sold separately from a motor vehicle
19required to be licensed and units sold mounted on a motor
20vehicle required to be licensed if the selling price of the
21tender is separately stated.
22 Farm machinery and equipment shall include precision
23farming equipment that is installed or purchased to be
24installed on farm machinery and equipment including, but not
25limited to, tractors, harvesters, sprayers, planters, seeders,
26or spreaders. Precision farming equipment includes, but is not

SB3238 Engrossed- 36 -LRB100 16105 HLH 31224 b
1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4 Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (7) is exempt from the
11provisions of Section 3-55.
12 (8) Until June 30, 2013, fuel and petroleum products sold
13to or used by an air common carrier, certified by the carrier
14to be used for consumption, shipment, or storage in the conduct
15of its business as an air common carrier, for a flight destined
16for or returning from a location or locations outside the
17United States without regard to previous or subsequent domestic
18stopovers.
19 Beginning July 1, 2013, fuel and petroleum products sold to
20or used by an air carrier, certified by the carrier to be used
21for consumption, shipment, or storage in the conduct of its
22business as an air common carrier, for a flight that (i) is
23engaged in foreign trade or is engaged in trade between the
24United States and any of its possessions and (ii) transports at
25least one individual or package for hire from the city of
26origination to the city of final destination on the same

SB3238 Engrossed- 37 -LRB100 16105 HLH 31224 b
1aircraft, without regard to a change in the flight number of
2that aircraft.
3 (9) Proceeds of mandatory service charges separately
4stated on customers' bills for the purchase and consumption of
5food and beverages, to the extent that the proceeds of the
6service charge are in fact turned over as tips or as a
7substitute for tips to the employees who participate directly
8in preparing, serving, hosting or cleaning up the food or
9beverage function with respect to which the service charge is
10imposed.
11 (10) Until July 1, 2003, oil field exploration, drilling,
12and production equipment, including (i) rigs and parts of rigs,
13rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
14tubular goods, including casing and drill strings, (iii) pumps
15and pump-jack units, (iv) storage tanks and flow lines, (v) any
16individual replacement part for oil field exploration,
17drilling, and production equipment, and (vi) machinery and
18equipment purchased for lease; but excluding motor vehicles
19required to be registered under the Illinois Vehicle Code.
20 (11) Photoprocessing machinery and equipment, including
21repair and replacement parts, both new and used, including that
22manufactured on special order, certified by the purchaser to be
23used primarily for photoprocessing, and including
24photoprocessing machinery and equipment purchased for lease.
25 (12) Until July 1, 2023, coal Coal and aggregate
26exploration, mining, off-highway hauling, processing,

SB3238 Engrossed- 38 -LRB100 16105 HLH 31224 b
1maintenance, and reclamation equipment, including replacement
2parts and equipment, and including equipment purchased for
3lease, but excluding motor vehicles required to be registered
4under the Illinois Vehicle Code. The changes made to this
5Section by Public Act 97-767 apply on and after July 1, 2003,
6but no claim for credit or refund is allowed on or after August
716, 2013 (the effective date of Public Act 98-456) for such
8taxes paid during the period beginning July 1, 2003 and ending
9on August 16, 2013 (the effective date of Public Act 98-456).
10 (13) Beginning January 1, 1992 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks and food that has been prepared for immediate
14consumption) and prescription and non-prescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or in a licensed facility as defined
21in the ID/DD Community Care Act, the MC/DD Act, or the
22Specialized Mental Health Rehabilitation Act of 2013.
23 (14) Semen used for artificial insemination of livestock
24for direct agricultural production.
25 (15) Horses, or interests in horses, registered with and
26meeting the requirements of any of the Arabian Horse Club

SB3238 Engrossed- 39 -LRB100 16105 HLH 31224 b
1Registry of America, Appaloosa Horse Club, American Quarter
2Horse Association, United States Trotting Association, or
3Jockey Club, as appropriate, used for purposes of breeding or
4racing for prizes. This item (15) is exempt from the provisions
5of Section 3-55, and the exemption provided for under this item
6(15) applies for all periods beginning May 30, 1995, but no
7claim for credit or refund is allowed on or after January 1,
82008 (the effective date of Public Act 95-88) for such taxes
9paid during the period beginning May 30, 2000 and ending on
10January 1, 2008 (the effective date of Public Act 95-88).
11 (16) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients sold to a lessor
14who leases the equipment, under a lease of one year or longer
15executed or in effect at the time of the purchase, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act.
19 (17) Personal property sold to a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time of the purchase, to a governmental body that
22has been issued an active tax exemption identification number
23by the Department under Section 1g of the Retailers' Occupation
24Tax Act.
25 (18) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

SB3238 Engrossed- 40 -LRB100 16105 HLH 31224 b
1before December 31, 2004, personal property that is donated for
2disaster relief to be used in a State or federally declared
3disaster area in Illinois or bordering Illinois by a
4manufacturer or retailer that is registered in this State to a
5corporation, society, association, foundation, or institution
6that has been issued a sales tax exemption identification
7number by the Department that assists victims of the disaster
8who reside within the declared disaster area.
9 (19) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is used in the
12performance of infrastructure repairs in this State, including
13but not limited to municipal roads and streets, access roads,
14bridges, sidewalks, waste disposal systems, water and sewer
15line extensions, water distribution and purification
16facilities, storm water drainage and retention facilities, and
17sewage treatment facilities, resulting from a State or
18federally declared disaster in Illinois or bordering Illinois
19when such repairs are initiated on facilities located in the
20declared disaster area within 6 months after the disaster.
21 (20) Beginning July 1, 1999, game or game birds sold at a
22"game breeding and hunting preserve area" as that term is used
23in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-55.
25 (21) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

SB3238 Engrossed- 41 -LRB100 16105 HLH 31224 b
1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the Department
3to be organized and operated exclusively for educational
4purposes. For purposes of this exemption, "a corporation,
5limited liability company, society, association, foundation,
6or institution organized and operated exclusively for
7educational purposes" means all tax-supported public schools,
8private schools that offer systematic instruction in useful
9branches of learning by methods common to public schools and
10that compare favorably in their scope and intensity with the
11course of study presented in tax-supported schools, and
12vocational or technical schools or institutes organized and
13operated exclusively to provide a course of study of not less
14than 6 weeks duration and designed to prepare individuals to
15follow a trade or to pursue a manual, technical, mechanical,
16industrial, business, or commercial occupation.
17 (22) Beginning January 1, 2000, personal property,
18including food, purchased through fundraising events for the
19benefit of a public or private elementary or secondary school,
20a group of those schools, or one or more school districts if
21the events are sponsored by an entity recognized by the school
22district that consists primarily of volunteers and includes
23parents and teachers of the school children. This paragraph
24does not apply to fundraising events (i) for the benefit of
25private home instruction or (ii) for which the fundraising
26entity purchases the personal property sold at the events from

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-55.
5 (23) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-55.
15 (24) Beginning on the effective date of this amendatory Act
16of the 92nd General Assembly, computers and communications
17equipment utilized for any hospital purpose and equipment used
18in the diagnosis, analysis, or treatment of hospital patients
19sold to a lessor who leases the equipment, under a lease of one
20year or longer executed or in effect at the time of the
21purchase, to a hospital that has been issued an active tax
22exemption identification number by the Department under
23Section 1g of the Retailers' Occupation Tax Act. This paragraph
24is exempt from the provisions of Section 3-55.
25 (25) Beginning on the effective date of this amendatory Act
26of the 92nd General Assembly, personal property sold to a

SB3238 Engrossed- 43 -LRB100 16105 HLH 31224 b
1lessor who leases the property, under a lease of one year or
2longer executed or in effect at the time of the purchase, to a
3governmental body that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. This paragraph is exempt from
6the provisions of Section 3-55.
7 (26) Beginning on January 1, 2002 and through June 30,
82016, tangible personal property purchased from an Illinois
9retailer by a taxpayer engaged in centralized purchasing
10activities in Illinois who will, upon receipt of the property
11in Illinois, temporarily store the property in Illinois (i) for
12the purpose of subsequently transporting it outside this State
13for use or consumption thereafter solely outside this State or
14(ii) for the purpose of being processed, fabricated, or
15manufactured into, attached to, or incorporated into other
16tangible personal property to be transported outside this State
17and thereafter used or consumed solely outside this State. The
18Director of Revenue shall, pursuant to rules adopted in
19accordance with the Illinois Administrative Procedure Act,
20issue a permit to any taxpayer in good standing with the
21Department who is eligible for the exemption under this
22paragraph (26). The permit issued under this paragraph (26)
23shall authorize the holder, to the extent and in the manner
24specified in the rules adopted under this Act, to purchase
25tangible personal property from a retailer exempt from the
26taxes imposed by this Act. Taxpayers shall maintain all

SB3238 Engrossed- 44 -LRB100 16105 HLH 31224 b
1necessary books and records to substantiate the use and
2consumption of all such tangible personal property outside of
3the State of Illinois.
4 (27) Beginning January 1, 2008, tangible personal property
5used in the construction or maintenance of a community water
6supply, as defined under Section 3.145 of the Environmental
7Protection Act, that is operated by a not-for-profit
8corporation that holds a valid water supply permit issued under
9Title IV of the Environmental Protection Act. This paragraph is
10exempt from the provisions of Section 3-55.
11 (28) Tangible personal property sold to a
12public-facilities corporation, as described in Section
1311-65-10 of the Illinois Municipal Code, for purposes of
14constructing or furnishing a municipal convention hall, but
15only if the legal title to the municipal convention hall is
16transferred to the municipality without any further
17consideration by or on behalf of the municipality at the time
18of the completion of the municipal convention hall or upon the
19retirement or redemption of any bonds or other debt instruments
20issued by the public-facilities corporation in connection with
21the development of the municipal convention hall. This
22exemption includes existing public-facilities corporations as
23provided in Section 11-65-25 of the Illinois Municipal Code.
24This paragraph is exempt from the provisions of Section 3-55.
25 (29) Beginning January 1, 2010, materials, parts,
26equipment, components, and furnishings incorporated into or

SB3238 Engrossed- 45 -LRB100 16105 HLH 31224 b
1upon an aircraft as part of the modification, refurbishment,
2completion, replacement, repair, or maintenance of the
3aircraft. This exemption includes consumable supplies used in
4the modification, refurbishment, completion, replacement,
5repair, and maintenance of aircraft, but excludes any
6materials, parts, equipment, components, and consumable
7supplies used in the modification, replacement, repair, and
8maintenance of aircraft engines or power plants, whether such
9engines or power plants are installed or uninstalled upon any
10such aircraft. "Consumable supplies" include, but are not
11limited to, adhesive, tape, sandpaper, general purpose
12lubricants, cleaning solution, latex gloves, and protective
13films. This exemption applies only to the transfer of
14qualifying tangible personal property incident to the
15modification, refurbishment, completion, replacement, repair,
16or maintenance of an aircraft by persons who (i) hold an Air
17Agency Certificate and are empowered to operate an approved
18repair station by the Federal Aviation Administration, (ii)
19have a Class IV Rating, and (iii) conduct operations in
20accordance with Part 145 of the Federal Aviation Regulations.
21The exemption does not include aircraft operated by a
22commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part 129
24of the Federal Aviation Regulations. The changes made to this
25paragraph (29) by Public Act 98-534 are declarative of existing
26law.

SB3238 Engrossed- 46 -LRB100 16105 HLH 31224 b
1 (30) Beginning January 1, 2017, menstrual pads, tampons,
2and menstrual cups.
3(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
4100-22, eff. 7-6-17.)
5 Section 20. The Retailers' Occupation Tax Act is amended by
6changing Section 2-5 as follows:
7 (35 ILCS 120/2-5)
8 Sec. 2-5. Exemptions. Gross receipts from proceeds from the
9sale of the following tangible personal property are exempt
10from the tax imposed by this Act:
11 (1) Farm chemicals.
12 (2) Farm machinery and equipment, both new and used,
13 including that manufactured on special order, certified by
14 the purchaser to be used primarily for production
15 agriculture or State or federal agricultural programs,
16 including individual replacement parts for the machinery
17 and equipment, including machinery and equipment purchased
18 for lease, and including implements of husbandry defined in
19 Section 1-130 of the Illinois Vehicle Code, farm machinery
20 and agricultural chemical and fertilizer spreaders, and
21 nurse wagons required to be registered under Section 3-809
22 of the Illinois Vehicle Code, but excluding other motor
23 vehicles required to be registered under the Illinois
24 Vehicle Code. Horticultural polyhouses or hoop houses used

SB3238 Engrossed- 47 -LRB100 16105 HLH 31224 b
1 for propagating, growing, or overwintering plants shall be
2 considered farm machinery and equipment under this item
3 (2). Agricultural chemical tender tanks and dry boxes shall
4 include units sold separately from a motor vehicle required
5 to be licensed and units sold mounted on a motor vehicle
6 required to be licensed, if the selling price of the tender
7 is separately stated.
8 Farm machinery and equipment shall include precision
9 farming equipment that is installed or purchased to be
10 installed on farm machinery and equipment including, but
11 not limited to, tractors, harvesters, sprayers, planters,
12 seeders, or spreaders. Precision farming equipment
13 includes, but is not limited to, soil testing sensors,
14 computers, monitors, software, global positioning and
15 mapping systems, and other such equipment.
16 Farm machinery and equipment also includes computers,
17 sensors, software, and related equipment used primarily in
18 the computer-assisted operation of production agriculture
19 facilities, equipment, and activities such as, but not
20 limited to, the collection, monitoring, and correlation of
21 animal and crop data for the purpose of formulating animal
22 diets and agricultural chemicals. This item (2) is exempt
23 from the provisions of Section 2-70.
24 (3) Until July 1, 2003, distillation machinery and
25 equipment, sold as a unit or kit, assembled or installed by
26 the retailer, certified by the user to be used only for the

SB3238 Engrossed- 48 -LRB100 16105 HLH 31224 b
1 production of ethyl alcohol that will be used for
2 consumption as motor fuel or as a component of motor fuel
3 for the personal use of the user, and not subject to sale
4 or resale.
5 (4) Until July 1, 2003 and beginning again September 1,
6 2004 through August 30, 2014, graphic arts machinery and
7 equipment, including repair and replacement parts, both
8 new and used, and including that manufactured on special
9 order or purchased for lease, certified by the purchaser to
10 be used primarily for graphic arts production. Equipment
11 includes chemicals or chemicals acting as catalysts but
12 only if the chemicals or chemicals acting as catalysts
13 effect a direct and immediate change upon a graphic arts
14 product. Beginning on July 1, 2017, graphic arts machinery
15 and equipment is included in the manufacturing and
16 assembling machinery and equipment exemption under
17 paragraph (14).
18 (5) A motor vehicle that is used for automobile
19 renting, as defined in the Automobile Renting Occupation
20 and Use Tax Act. This paragraph is exempt from the
21 provisions of Section 2-70.
22 (6) Personal property sold by a teacher-sponsored
23 student organization affiliated with an elementary or
24 secondary school located in Illinois.
25 (7) Until July 1, 2003, proceeds of that portion of the
26 selling price of a passenger car the sale of which is

SB3238 Engrossed- 49 -LRB100 16105 HLH 31224 b
1 subject to the Replacement Vehicle Tax.
2 (8) Personal property sold to an Illinois county fair
3 association for use in conducting, operating, or promoting
4 the county fair.
5 (9) Personal property sold to a not-for-profit arts or
6 cultural organization that establishes, by proof required
7 by the Department by rule, that it has received an
8 exemption under Section 501(c)(3) of the Internal Revenue
9 Code and that is organized and operated primarily for the
10 presentation or support of arts or cultural programming,
11 activities, or services. These organizations include, but
12 are not limited to, music and dramatic arts organizations
13 such as symphony orchestras and theatrical groups, arts and
14 cultural service organizations, local arts councils,
15 visual arts organizations, and media arts organizations.
16 On and after July 1, 2001 (the effective date of Public Act
17 92-35) this amendatory Act of the 92nd General Assembly,
18 however, an entity otherwise eligible for this exemption
19 shall not make tax-free purchases unless it has an active
20 identification number issued by the Department.
21 (10) Personal property sold by a corporation, society,
22 association, foundation, institution, or organization,
23 other than a limited liability company, that is organized
24 and operated as a not-for-profit service enterprise for the
25 benefit of persons 65 years of age or older if the personal
26 property was not purchased by the enterprise for the

SB3238 Engrossed- 50 -LRB100 16105 HLH 31224 b
1 purpose of resale by the enterprise.
2 (11) Personal property sold to a governmental body, to
3 a corporation, society, association, foundation, or
4 institution organized and operated exclusively for
5 charitable, religious, or educational purposes, or to a
6 not-for-profit corporation, society, association,
7 foundation, institution, or organization that has no
8 compensated officers or employees and that is organized and
9 operated primarily for the recreation of persons 55 years
10 of age or older. A limited liability company may qualify
11 for the exemption under this paragraph only if the limited
12 liability company is organized and operated exclusively
13 for educational purposes. On and after July 1, 1987,
14 however, no entity otherwise eligible for this exemption
15 shall make tax-free purchases unless it has an active
16 identification number issued by the Department.
17 (12) (Blank).
18 (12-5) On and after July 1, 2003 and through June 30,
19 2004, motor vehicles of the second division with a gross
20 vehicle weight in excess of 8,000 pounds that are subject
21 to the commercial distribution fee imposed under Section
22 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
23 2004 and through June 30, 2005, the use in this State of
24 motor vehicles of the second division: (i) with a gross
25 vehicle weight rating in excess of 8,000 pounds; (ii) that
26 are subject to the commercial distribution fee imposed

SB3238 Engrossed- 51 -LRB100 16105 HLH 31224 b
1 under Section 3-815.1 of the Illinois Vehicle Code; and
2 (iii) that are primarily used for commercial purposes.
3 Through June 30, 2005, this exemption applies to repair and
4 replacement parts added after the initial purchase of such
5 a motor vehicle if that motor vehicle is used in a manner
6 that would qualify for the rolling stock exemption
7 otherwise provided for in this Act. For purposes of this
8 paragraph, "used for commercial purposes" means the
9 transportation of persons or property in furtherance of any
10 commercial or industrial enterprise whether for-hire or
11 not.
12 (13) Proceeds from sales to owners, lessors, or
13 shippers of tangible personal property that is utilized by
14 interstate carriers for hire for use as rolling stock
15 moving in interstate commerce and equipment operated by a
16 telecommunications provider, licensed as a common carrier
17 by the Federal Communications Commission, which is
18 permanently installed in or affixed to aircraft moving in
19 interstate commerce.
20 (14) Machinery and equipment that will be used by the
21 purchaser, or a lessee of the purchaser, primarily in the
22 process of manufacturing or assembling tangible personal
23 property for wholesale or retail sale or lease, whether the
24 sale or lease is made directly by the manufacturer or by
25 some other person, whether the materials used in the
26 process are owned by the manufacturer or some other person,

SB3238 Engrossed- 52 -LRB100 16105 HLH 31224 b
1 or whether the sale or lease is made apart from or as an
2 incident to the seller's engaging in the service occupation
3 of producing machines, tools, dies, jigs, patterns,
4 gauges, or other similar items of no commercial value on
5 special order for a particular purchaser. The exemption
6 provided by this paragraph (14) does not include machinery
7 and equipment used in (i) the generation of electricity for
8 wholesale or retail sale; (ii) the generation or treatment
9 of natural or artificial gas for wholesale or retail sale
10 that is delivered to customers through pipes, pipelines, or
11 mains; or (iii) the treatment of water for wholesale or
12 retail sale that is delivered to customers through pipes,
13 pipelines, or mains. The provisions of Public Act 98-583
14 are declaratory of existing law as to the meaning and scope
15 of this exemption. Beginning on July 1, 2017, the exemption
16 provided by this paragraph (14) includes, but is not
17 limited to, graphic arts machinery and equipment, as
18 defined in paragraph (4) of this Section.
19 (15) Proceeds of mandatory service charges separately
20 stated on customers' bills for purchase and consumption of
21 food and beverages, to the extent that the proceeds of the
22 service charge are in fact turned over as tips or as a
23 substitute for tips to the employees who participate
24 directly in preparing, serving, hosting or cleaning up the
25 food or beverage function with respect to which the service
26 charge is imposed.

SB3238 Engrossed- 53 -LRB100 16105 HLH 31224 b
1 (16) Petroleum products sold to a purchaser if the
2 seller is prohibited by federal law from charging tax to
3 the purchaser.
4 (17) Tangible personal property sold to a common
5 carrier by rail or motor that receives the physical
6 possession of the property in Illinois and that transports
7 the property, or shares with another common carrier in the
8 transportation of the property, out of Illinois on a
9 standard uniform bill of lading showing the seller of the
10 property as the shipper or consignor of the property to a
11 destination outside Illinois, for use outside Illinois.
12 (18) Legal tender, currency, medallions, or gold or
13 silver coinage issued by the State of Illinois, the
14 government of the United States of America, or the
15 government of any foreign country, and bullion.
16 (19) Until July 1, 2003, oil field exploration,
17 drilling, and production equipment, including (i) rigs and
18 parts of rigs, rotary rigs, cable tool rigs, and workover
19 rigs, (ii) pipe and tubular goods, including casing and
20 drill strings, (iii) pumps and pump-jack units, (iv)
21 storage tanks and flow lines, (v) any individual
22 replacement part for oil field exploration, drilling, and
23 production equipment, and (vi) machinery and equipment
24 purchased for lease; but excluding motor vehicles required
25 to be registered under the Illinois Vehicle Code.
26 (20) Photoprocessing machinery and equipment,

SB3238 Engrossed- 54 -LRB100 16105 HLH 31224 b
1 including repair and replacement parts, both new and used,
2 including that manufactured on special order, certified by
3 the purchaser to be used primarily for photoprocessing, and
4 including photoprocessing machinery and equipment
5 purchased for lease.
6 (21) Until July 1, 2023, coal Coal and aggregate
7 exploration, mining, off-highway hauling, processing,
8 maintenance, and reclamation equipment, including
9 replacement parts and equipment, and including equipment
10 purchased for lease, but excluding motor vehicles required
11 to be registered under the Illinois Vehicle Code. The
12 changes made to this Section by Public Act 97-767 apply on
13 and after July 1, 2003, but no claim for credit or refund
14 is allowed on or after August 16, 2013 (the effective date
15 of Public Act 98-456) for such taxes paid during the period
16 beginning July 1, 2003 and ending on August 16, 2013 (the
17 effective date of Public Act 98-456).
18 (22) Until June 30, 2013, fuel and petroleum products
19 sold to or used by an air carrier, certified by the carrier
20 to be used for consumption, shipment, or storage in the
21 conduct of its business as an air common carrier, for a
22 flight destined for or returning from a location or
23 locations outside the United States without regard to
24 previous or subsequent domestic stopovers.
25 Beginning July 1, 2013, fuel and petroleum products
26 sold to or used by an air carrier, certified by the carrier

SB3238 Engrossed- 55 -LRB100 16105 HLH 31224 b
1 to be used for consumption, shipment, or storage in the
2 conduct of its business as an air common carrier, for a
3 flight that (i) is engaged in foreign trade or is engaged
4 in trade between the United States and any of its
5 possessions and (ii) transports at least one individual or
6 package for hire from the city of origination to the city
7 of final destination on the same aircraft, without regard
8 to a change in the flight number of that aircraft.
9 (23) A transaction in which the purchase order is
10 received by a florist who is located outside Illinois, but
11 who has a florist located in Illinois deliver the property
12 to the purchaser or the purchaser's donee in Illinois.
13 (24) Fuel consumed or used in the operation of ships,
14 barges, or vessels that are used primarily in or for the
15 transportation of property or the conveyance of persons for
16 hire on rivers bordering on this State if the fuel is
17 delivered by the seller to the purchaser's barge, ship, or
18 vessel while it is afloat upon that bordering river.
19 (25) Except as provided in item (25-5) of this Section,
20 a motor vehicle sold in this State to a nonresident even
21 though the motor vehicle is delivered to the nonresident in
22 this State, if the motor vehicle is not to be titled in
23 this State, and if a drive-away permit is issued to the
24 motor vehicle as provided in Section 3-603 of the Illinois
25 Vehicle Code or if the nonresident purchaser has vehicle
26 registration plates to transfer to the motor vehicle upon

SB3238 Engrossed- 56 -LRB100 16105 HLH 31224 b
1 returning to his or her home state. The issuance of the
2 drive-away permit or having the out-of-state registration
3 plates to be transferred is prima facie evidence that the
4 motor vehicle will not be titled in this State.
5 (25-5) The exemption under item (25) does not apply if
6 the state in which the motor vehicle will be titled does
7 not allow a reciprocal exemption for a motor vehicle sold
8 and delivered in that state to an Illinois resident but
9 titled in Illinois. The tax collected under this Act on the
10 sale of a motor vehicle in this State to a resident of
11 another state that does not allow a reciprocal exemption
12 shall be imposed at a rate equal to the state's rate of tax
13 on taxable property in the state in which the purchaser is
14 a resident, except that the tax shall not exceed the tax
15 that would otherwise be imposed under this Act. At the time
16 of the sale, the purchaser shall execute a statement,
17 signed under penalty of perjury, of his or her intent to
18 title the vehicle in the state in which the purchaser is a
19 resident within 30 days after the sale and of the fact of
20 the payment to the State of Illinois of tax in an amount
21 equivalent to the state's rate of tax on taxable property
22 in his or her state of residence and shall submit the
23 statement to the appropriate tax collection agency in his
24 or her state of residence. In addition, the retailer must
25 retain a signed copy of the statement in his or her
26 records. Nothing in this item shall be construed to require

SB3238 Engrossed- 57 -LRB100 16105 HLH 31224 b
1 the removal of the vehicle from this state following the
2 filing of an intent to title the vehicle in the purchaser's
3 state of residence if the purchaser titles the vehicle in
4 his or her state of residence within 30 days after the date
5 of sale. The tax collected under this Act in accordance
6 with this item (25-5) shall be proportionately distributed
7 as if the tax were collected at the 6.25% general rate
8 imposed under this Act.
9 (25-7) Beginning on July 1, 2007, no tax is imposed
10 under this Act on the sale of an aircraft, as defined in
11 Section 3 of the Illinois Aeronautics Act, if all of the
12 following conditions are met:
13 (1) the aircraft leaves this State within 15 days
14 after the later of either the issuance of the final
15 billing for the sale of the aircraft, or the authorized
16 approval for return to service, completion of the
17 maintenance record entry, and completion of the test
18 flight and ground test for inspection, as required by
19 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
23 records and provides to the Department a signed and
24 dated certification from the purchaser, on a form
25 prescribed by the Department, certifying that the
26 requirements of this item (25-7) are met. The

SB3238 Engrossed- 58 -LRB100 16105 HLH 31224 b
1 certificate must also include the name and address of
2 the purchaser, the address of the location where the
3 aircraft is to be titled or registered, the address of
4 the primary physical location of the aircraft, and
5 other information that the Department may reasonably
6 require.
7 For purposes of this item (25-7):
8 "Based in this State" means hangared, stored, or
9 otherwise used, excluding post-sale customizations as
10 defined in this Section, for 10 or more days in each
11 12-month period immediately following the date of the sale
12 of the aircraft.
13 "Registered in this State" means an aircraft
14 registered with the Department of Transportation,
15 Aeronautics Division, or titled or registered with the
16 Federal Aviation Administration to an address located in
17 this State.
18 This paragraph (25-7) is exempt from the provisions of
19 Section 2-70.
20 (26) Semen used for artificial insemination of
21 livestock for direct agricultural production.
22 (27) Horses, or interests in horses, registered with
23 and meeting the requirements of any of the Arabian Horse
24 Club Registry of America, Appaloosa Horse Club, American
25 Quarter Horse Association, United States Trotting
26 Association, or Jockey Club, as appropriate, used for

SB3238 Engrossed- 59 -LRB100 16105 HLH 31224 b
1 purposes of breeding or racing for prizes. This item (27)
2 is exempt from the provisions of Section 2-70, and the
3 exemption provided for under this item (27) applies for all
4 periods beginning May 30, 1995, but no claim for credit or
5 refund is allowed on or after January 1, 2008 (the
6 effective date of Public Act 95-88) for such taxes paid
7 during the period beginning May 30, 2000 and ending on
8 January 1, 2008 (the effective date of Public Act 95-88).
9 (28) Computers and communications equipment utilized
10 for any hospital purpose and equipment used in the
11 diagnosis, analysis, or treatment of hospital patients
12 sold to a lessor who leases the equipment, under a lease of
13 one year or longer executed or in effect at the time of the
14 purchase, to a hospital that has been issued an active tax
15 exemption identification number by the Department under
16 Section 1g of this Act.
17 (29) Personal property sold to a lessor who leases the
18 property, under a lease of one year or longer executed or
19 in effect at the time of the purchase, to a governmental
20 body that has been issued an active tax exemption
21 identification number by the Department under Section 1g of
22 this Act.
23 (30) Beginning with taxable years ending on or after
24 December 31, 1995 and ending with taxable years ending on
25 or before December 31, 2004, personal property that is
26 donated for disaster relief to be used in a State or

SB3238 Engrossed- 60 -LRB100 16105 HLH 31224 b
1 federally declared disaster area in Illinois or bordering
2 Illinois by a manufacturer or retailer that is registered
3 in this State to a corporation, society, association,
4 foundation, or institution that has been issued a sales tax
5 exemption identification number by the Department that
6 assists victims of the disaster who reside within the
7 declared disaster area.
8 (31) Beginning with taxable years ending on or after
9 December 31, 1995 and ending with taxable years ending on
10 or before December 31, 2004, personal property that is used
11 in the performance of infrastructure repairs in this State,
12 including but not limited to municipal roads and streets,
13 access roads, bridges, sidewalks, waste disposal systems,
14 water and sewer line extensions, water distribution and
15 purification facilities, storm water drainage and
16 retention facilities, and sewage treatment facilities,
17 resulting from a State or federally declared disaster in
18 Illinois or bordering Illinois when such repairs are
19 initiated on facilities located in the declared disaster
20 area within 6 months after the disaster.
21 (32) Beginning July 1, 1999, game or game birds sold at
22 a "game breeding and hunting preserve area" as that term is
23 used in the Wildlife Code. This paragraph is exempt from
24 the provisions of Section 2-70.
25 (33) A motor vehicle, as that term is defined in
26 Section 1-146 of the Illinois Vehicle Code, that is donated

SB3238 Engrossed- 61 -LRB100 16105 HLH 31224 b
1 to a corporation, limited liability company, society,
2 association, foundation, or institution that is determined
3 by the Department to be organized and operated exclusively
4 for educational purposes. For purposes of this exemption,
5 "a corporation, limited liability company, society,
6 association, foundation, or institution organized and
7 operated exclusively for educational purposes" means all
8 tax-supported public schools, private schools that offer
9 systematic instruction in useful branches of learning by
10 methods common to public schools and that compare favorably
11 in their scope and intensity with the course of study
12 presented in tax-supported schools, and vocational or
13 technical schools or institutes organized and operated
14 exclusively to provide a course of study of not less than 6
15 weeks duration and designed to prepare individuals to
16 follow a trade or to pursue a manual, technical,
17 mechanical, industrial, business, or commercial
18 occupation.
19 (34) Beginning January 1, 2000, personal property,
20 including food, purchased through fundraising events for
21 the benefit of a public or private elementary or secondary
22 school, a group of those schools, or one or more school
23 districts if the events are sponsored by an entity
24 recognized by the school district that consists primarily
25 of volunteers and includes parents and teachers of the
26 school children. This paragraph does not apply to

SB3238 Engrossed- 62 -LRB100 16105 HLH 31224 b
1 fundraising events (i) for the benefit of private home
2 instruction or (ii) for which the fundraising entity
3 purchases the personal property sold at the events from
4 another individual or entity that sold the property for the
5 purpose of resale by the fundraising entity and that
6 profits from the sale to the fundraising entity. This
7 paragraph is exempt from the provisions of Section 2-70.
8 (35) Beginning January 1, 2000 and through December 31,
9 2001, new or used automatic vending machines that prepare
10 and serve hot food and beverages, including coffee, soup,
11 and other items, and replacement parts for these machines.
12 Beginning January 1, 2002 and through June 30, 2003,
13 machines and parts for machines used in commercial,
14 coin-operated amusement and vending business if a use or
15 occupation tax is paid on the gross receipts derived from
16 the use of the commercial, coin-operated amusement and
17 vending machines. This paragraph is exempt from the
18 provisions of Section 2-70.
19 (35-5) Beginning August 23, 2001 and through June 30,
20 2016, food for human consumption that is to be consumed off
21 the premises where it is sold (other than alcoholic
22 beverages, soft drinks, and food that has been prepared for
23 immediate consumption) and prescription and
24 nonprescription medicines, drugs, medical appliances, and
25 insulin, urine testing materials, syringes, and needles
26 used by diabetics, for human use, when purchased for use by

SB3238 Engrossed- 63 -LRB100 16105 HLH 31224 b
1 a person receiving medical assistance under Article V of
2 the Illinois Public Aid Code who resides in a licensed
3 long-term care facility, as defined in the Nursing Home
4 Care Act, or a licensed facility as defined in the ID/DD
5 Community Care Act, the MC/DD Act, or the Specialized
6 Mental Health Rehabilitation Act of 2013.
7 (36) Beginning August 2, 2001, computers and
8 communications equipment utilized for any hospital purpose
9 and equipment used in the diagnosis, analysis, or treatment
10 of hospital patients sold to a lessor who leases the
11 equipment, under a lease of one year or longer executed or
12 in effect at the time of the purchase, to a hospital that
13 has been issued an active tax exemption identification
14 number by the Department under Section 1g of this Act. This
15 paragraph is exempt from the provisions of Section 2-70.
16 (37) Beginning August 2, 2001, personal property sold
17 to a lessor who leases the property, under a lease of one
18 year or longer executed or in effect at the time of the
19 purchase, to a governmental body that has been issued an
20 active tax exemption identification number by the
21 Department under Section 1g of this Act. This paragraph is
22 exempt from the provisions of Section 2-70.
23 (38) Beginning on January 1, 2002 and through June 30,
24 2016, tangible personal property purchased from an
25 Illinois retailer by a taxpayer engaged in centralized
26 purchasing activities in Illinois who will, upon receipt of

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1 the property in Illinois, temporarily store the property in
2 Illinois (i) for the purpose of subsequently transporting
3 it outside this State for use or consumption thereafter
4 solely outside this State or (ii) for the purpose of being
5 processed, fabricated, or manufactured into, attached to,
6 or incorporated into other tangible personal property to be
7 transported outside this State and thereafter used or
8 consumed solely outside this State. The Director of Revenue
9 shall, pursuant to rules adopted in accordance with the
10 Illinois Administrative Procedure Act, issue a permit to
11 any taxpayer in good standing with the Department who is
12 eligible for the exemption under this paragraph (38). The
13 permit issued under this paragraph (38) shall authorize the
14 holder, to the extent and in the manner specified in the
15 rules adopted under this Act, to purchase tangible personal
16 property from a retailer exempt from the taxes imposed by
17 this Act. Taxpayers shall maintain all necessary books and
18 records to substantiate the use and consumption of all such
19 tangible personal property outside of the State of
20 Illinois.
21 (39) Beginning January 1, 2008, tangible personal
22 property used in the construction or maintenance of a
23 community water supply, as defined under Section 3.145 of
24 the Environmental Protection Act, that is operated by a
25 not-for-profit corporation that holds a valid water supply
26 permit issued under Title IV of the Environmental

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1 Protection Act. This paragraph is exempt from the
2 provisions of Section 2-70.
3 (40) Beginning January 1, 2010, materials, parts,
4 equipment, components, and furnishings incorporated into
5 or upon an aircraft as part of the modification,
6 refurbishment, completion, replacement, repair, or
7 maintenance of the aircraft. This exemption includes
8 consumable supplies used in the modification,
9 refurbishment, completion, replacement, repair, and
10 maintenance of aircraft, but excludes any materials,
11 parts, equipment, components, and consumable supplies used
12 in the modification, replacement, repair, and maintenance
13 of aircraft engines or power plants, whether such engines
14 or power plants are installed or uninstalled upon any such
15 aircraft. "Consumable supplies" include, but are not
16 limited to, adhesive, tape, sandpaper, general purpose
17 lubricants, cleaning solution, latex gloves, and
18 protective films. This exemption applies only to the sale
19 of qualifying tangible personal property to persons who
20 modify, refurbish, complete, replace, or maintain an
21 aircraft and who (i) hold an Air Agency Certificate and are
22 empowered to operate an approved repair station by the
23 Federal Aviation Administration, (ii) have a Class IV
24 Rating, and (iii) conduct operations in accordance with
25 Part 145 of the Federal Aviation Regulations. The exemption
26 does not include aircraft operated by a commercial air

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1 carrier providing scheduled passenger air service pursuant
2 to authority issued under Part 121 or Part 129 of the
3 Federal Aviation Regulations. The changes made to this
4 paragraph (40) by Public Act 98-534 are declarative of
5 existing law.
6 (41) Tangible personal property sold to a
7 public-facilities corporation, as described in Section
8 11-65-10 of the Illinois Municipal Code, for purposes of
9 constructing or furnishing a municipal convention hall,
10 but only if the legal title to the municipal convention
11 hall is transferred to the municipality without any further
12 consideration by or on behalf of the municipality at the
13 time of the completion of the municipal convention hall or
14 upon the retirement or redemption of any bonds or other
15 debt instruments issued by the public-facilities
16 corporation in connection with the development of the
17 municipal convention hall. This exemption includes
18 existing public-facilities corporations as provided in
19 Section 11-65-25 of the Illinois Municipal Code. This
20 paragraph is exempt from the provisions of Section 2-70.
21 (42) Beginning January 1, 2017, menstrual pads,
22 tampons, and menstrual cups.
23 (43) Merchandise that is subject to the Rental Purchase
24 Agreement Occupation and Use Tax. The purchaser must
25 certify that the item is purchased to be rented subject to
26 a rental purchase agreement, as defined in the Rental

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1 Purchase Agreement Act, and provide proof of registration
2 under the Rental Purchase Agreement Occupation and Use Tax
3 Act. This paragraph is exempt from the provisions of
4 Section 2-70.
5(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
6100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
71-1-18; revised 9-26-17.)
8 Section 99. Effective date. This Act takes effect upon
9becoming law.
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