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

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1		support of arts or cultural programming, activities, or
2		services. These organizations include, but are not limited to,
3		music and dramatic arts organizations such as symphony
4		orchestras and theatrical groups, arts and cultural service
5		organizations, local arts councils, visual arts organizations,
6		and media arts organizations. On and after July 1, 2001 (the
7		effective date of Public Act 92-35) this amendatory Act of the
8		92nd General Assembly, however, an entity otherwise eligible
9		for this exemption shall not make tax-free purchases unless it
10		has an active identification number issued by the Department.
11		(4) Personal property purchased by a governmental body, by
12		a corporation, society, association, foundation, or
13		institution organized and operated exclusively for charitable,
14		religious, or educational purposes, or by a not-for-profit
15		corporation, society, association, foundation, institution, or
16		organization that has no compensated officers or employees and
17		that is organized and operated primarily for the recreation of
18		persons 55 years of age or older. A limited liability company
19		may qualify for the exemption under this paragraph only if the
20		limited liability company is organized and operated
21		exclusively for educational purposes. On and after July 1,
22		1987, however, no entity otherwise eligible for this exemption
23		shall make tax-free purchases unless it has an active exemption
24		identification number issued by the Department.
25		(5) Until July 1, 2003, a passenger car that is a
26		replacement vehicle to the extent that the purchase price of

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1		the car is subject to the Replacement Vehicle Tax.
2		(6) Until July 1, 2003 and beginning again on September 1,
3		2004 through August 30, 2014, graphic arts machinery and
4		equipment, including repair and replacement parts, both new and
5		used, and including that manufactured on special order,
6		certified by the purchaser to be used primarily for graphic
7		arts production, and including machinery and equipment
8		purchased for lease. Equipment includes chemicals or chemicals
9		acting as catalysts but only if the chemicals or chemicals
10		acting as catalysts effect a direct and immediate change upon a
11		graphic arts product. Beginning on July 1, 2017, graphic arts
12		machinery and equipment is included in the manufacturing and
13		assembling machinery and equipment exemption under paragraph
14		(18).
15		(7) Farm chemicals.
16		(8) Legal tender, currency, medallions, or gold or silver
17		coinage issued by the State of Illinois, the government of the
18		United States of America, or the government of any foreign
19		country, and bullion.
20		(9) Personal property purchased from a teacher-sponsored
21		student organization affiliated with an elementary or
22		secondary school located in Illinois.
23		(10) A motor vehicle that is used for automobile renting,
24		as defined in the Automobile Renting Occupation and Use Tax
25		Act.
26		(11) Farm machinery and equipment, both new and used,

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

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

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

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1		under the Illinois Vehicle Code. The changes made to this
2		Section by Public Act 97-767 apply on and after July 1, 2003,
3		but no claim for credit or refund is allowed on or after August
4		16, 2013 (the effective date of Public Act 98-456) for such
5		taxes paid during the period beginning July 1, 2003 and ending
6		on August 16, 2013 (the effective date of Public Act 98-456).
7		(17) Until July 1, 2003, distillation machinery and
8		equipment, sold as a unit or kit, assembled or installed by the
9		retailer, certified by the user to be used only for the
10		production of ethyl alcohol that will be used for consumption
11		as motor fuel or as a component of motor fuel for the personal
12		use of the user, and not subject to sale or resale.
13		(18) Manufacturing and assembling machinery and equipment
14		used primarily in the process of manufacturing or assembling
15		tangible personal property for wholesale or retail sale or
16		lease, whether that sale or lease is made directly by the
17		manufacturer or by some other person, whether the materials
18		used in the process are owned by the manufacturer or some other
19		person, or whether that sale or lease is made apart from or as
20		an incident to the seller's engaging in the service occupation
21		of producing machines, tools, dies, jigs, patterns, gauges, or
22		other similar items of no commercial value on special order for
23		a particular purchaser. The exemption provided by this
24		paragraph (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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1		for wholesale or retail sale that is delivered to customers
2		through pipes, pipelines, or mains; or (iii) the treatment of
3		water for wholesale or retail sale that is delivered to
4		customers through pipes, pipelines, or mains. The provisions of
5		Public Act 98-583 are declaratory of existing law as to the
6		meaning and scope of this exemption. Beginning on July 1, 2017,
7		the exemption provided by this paragraph (18) includes, but is
8		not limited to, graphic arts machinery and equipment, as
9		defined in paragraph (6) of this Section.
10		(19) Personal property delivered to a purchaser or
11		purchaser's donee inside Illinois when the purchase order for
12		that personal property was received by a florist located
13		outside Illinois who has a florist located inside Illinois
14		deliver the personal property.
15		(20) Semen used for artificial insemination of livestock
16		for direct agricultural production.
17		(21) Horses, or interests in horses, registered with and
18		meeting the requirements of any of the Arabian Horse Club
19		Registry of America, Appaloosa Horse Club, American Quarter
20		Horse Association, United States Trotting Association, or
21		Jockey Club, as appropriate, used for purposes of breeding or
22		racing for prizes. This item (21) is exempt from the provisions
23		of Section 3-90, and the exemption provided for under this item
24		(21) applies for all periods beginning May 30, 1995, but no
25		claim for credit or refund is allowed on or after January 1,
26		2008 for such taxes paid during the period beginning May 30,

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1		2000 and ending on January 1, 2008.
2		(22) Computers and communications equipment utilized for
3		any hospital purpose and equipment used in the diagnosis,
4		analysis, or treatment of hospital patients purchased by a
5		lessor who leases the equipment, under a lease of one year or
6		longer executed or in effect at the time the lessor would
7		otherwise be subject to the tax imposed by this Act, to a
8		hospital that has been issued an active tax exemption
9		identification number by the Department under Section 1g of the
10		Retailers' Occupation Tax Act. If the equipment is leased in a
11		manner that does not qualify for this exemption or is used in
12		any other non-exempt manner, the lessor shall be liable for the
13		tax imposed under this Act or the Service Use Tax Act, as the
14		case may be, based on the fair market value of the property at
15		the time the non-qualifying use occurs. No lessor shall collect
16		or attempt to collect an amount (however designated) that
17		purports to reimburse that lessor for the tax imposed by this
18		Act or the Service Use Tax Act, as the case may be, if the tax
19		has not been paid by the lessor. If a lessor improperly
20		collects any such amount from the lessee, the lessee shall have
21		a legal right to claim a refund of that amount from the lessor.
22		If, however, that amount is not refunded to the lessee for any
23		reason, the lessor is liable to pay that amount to the
24		Department.
25		(23) Personal property purchased by a lessor who leases the
26		property, under a lease of one year or longer executed or in

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

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

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1		educational purposes" means all tax-supported public schools,
2		private schools that offer systematic instruction in useful
3		branches of learning by methods common to public schools and
4		that compare favorably in their scope and intensity with the
5		course of study presented in tax-supported schools, and
6		vocational or technical schools or institutes organized and
7		operated exclusively to provide a course of study of not less
8		than 6 weeks duration and designed to prepare individuals to
9		follow a trade or to pursue a manual, technical, mechanical,
10		industrial, business, or commercial occupation.
11		(28) Beginning January 1, 2000, personal property,
12		including food, purchased through fundraising events for the
13		benefit of a public or private elementary or secondary school,
14		a group of those schools, or one or more school districts if
15		the events are sponsored by an entity recognized by the school
16		district that consists primarily of volunteers and includes
17		parents and teachers of the school children. This paragraph
18		does not apply to fundraising events (i) for the benefit of
19		private home instruction or (ii) for which the fundraising
20		entity purchases the personal property sold at the events from
21		another individual or entity that sold the property for the
22		purpose of resale by the fundraising entity and that profits
23		from the sale to the fundraising entity. This paragraph is
24		exempt from the provisions of Section 3-90.
25		(29) Beginning January 1, 2000 and through December 31,
26		2001, new or used automatic vending machines that prepare and

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

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

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1		the tax imposed by this Act, to a governmental body that has
2		been issued an active sales tax exemption identification number
3		by the Department under Section 1g of the Retailers' Occupation
4		Tax Act. If the property is leased in a manner that does not
5		qualify for this exemption or used in any other nonexempt
6		manner, the lessor shall be liable for the tax imposed under
7		this Act or the Service Use Tax Act, as the case may be, based
8		on the fair market value of the property at the time the
9		nonqualifying use occurs. No lessor shall collect or attempt to
10		collect an amount (however designated) that purports to
11		reimburse that lessor for the tax imposed by this Act or the
12		Service Use Tax Act, as the case may be, if the tax has not been
13		paid by the lessor. If a lessor improperly collects any such
14		amount from the lessee, the lessee shall have a legal right to
15		claim a refund of that amount from the lessor. If, however,
16		that amount is not refunded to the lessee for any reason, the
17		lessor is liable to pay that amount to the Department. This
18		paragraph is exempt from the provisions of Section 3-90.
19		(33) On and after July 1, 2003 and through June 30, 2004,
20		the use in this State of motor vehicles of the second division
21		with a gross vehicle weight in excess of 8,000 pounds and that
22		are subject to the commercial distribution fee imposed under
23		Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
24		1, 2004 and through June 30, 2005, the use in this State of
25		motor vehicles of the second division: (i) with a gross vehicle
26		weight rating in excess of 8,000 pounds; (ii) that are subject

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1		to the commercial distribution fee imposed under Section
2		3-815.1 of the Illinois Vehicle Code; and (iii) that are
3		primarily used for commercial purposes. Through June 30, 2005,
4		this exemption applies to repair and replacement parts added
5		after the initial purchase of such a motor vehicle if that
6		motor vehicle is used in a manner that would qualify for the
7		rolling stock exemption otherwise provided for in this Act. For
8		purposes of this paragraph, the term "used for commercial
9		purposes" means the transportation of persons or property in
10		furtherance of any commercial or industrial enterprise,
11		whether for-hire or not.
12		(34) Beginning January 1, 2008, tangible personal property
13		used in the construction or maintenance of a community water
14		supply, as defined under Section 3.145 of the Environmental
15		Protection Act, that is operated by a not-for-profit
16		corporation that holds a valid water supply permit issued under
17		Title IV of the Environmental Protection Act. This paragraph is
18		exempt from the provisions of Section 3-90.
19		(35) Beginning January 1, 2010, materials, parts,
20		equipment, components, and furnishings incorporated into or
21		upon an aircraft as part of the modification, refurbishment,
22		completion, replacement, repair, or maintenance of the
23		aircraft. This exemption includes consumable supplies used in
24		the modification, refurbishment, completion, replacement,
25		repair, and maintenance of aircraft, but excludes any
26		materials, parts, equipment, components, and consumable

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1		supplies used in the modification, replacement, repair, and
2		maintenance of aircraft engines or power plants, whether such
3		engines or power plants are installed or uninstalled upon any
4		such aircraft. "Consumable supplies" include, but are not
5		limited to, adhesive, tape, sandpaper, general purpose
6		lubricants, cleaning solution, latex gloves, and protective
7		films. This exemption applies only to the use of qualifying
8		tangible personal property by persons who modify, refurbish,
9		complete, repair, replace, or maintain aircraft and who (i)
10		hold an Air Agency Certificate and are empowered to operate an
11		approved repair station by the Federal Aviation
12		Administration, (ii) have a Class IV Rating, and (iii) conduct
13		operations in accordance with Part 145 of the Federal Aviation
14		Regulations. The exemption does not include aircraft operated
15		by a commercial air carrier providing scheduled passenger air
16		service pursuant to authority issued under Part 121 or Part 129
17		of the Federal Aviation Regulations. The changes made to this
18		paragraph (35) by Public Act 98-534 are declarative of existing
19		law.
20		(36) Tangible personal property purchased by a
21		public-facilities corporation, as described in Section
22		11-65-10 of the Illinois Municipal Code, for purposes of
23		constructing or furnishing a municipal convention hall, but
24		only if the legal title to the municipal convention hall is
25		transferred to the municipality without any further
26		consideration by or on behalf of the municipality at the time

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

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

SB3238 Engrossed - 20 - LRB100 16105 HLH 31224 b
1		United States of America, or the government of any foreign
2		country, and bullion.
3		(5) Until July 1, 2003 and beginning again on September 1,
4		2004 through August 30, 2014, graphic arts machinery and
5		equipment, including repair and replacement parts, both new and
6		used, and including that manufactured on special order or
7		purchased for lease, certified by the purchaser to be used
8		primarily for graphic arts production. Equipment includes
9		chemicals or chemicals acting as catalysts but only if the
10		chemicals or chemicals acting as catalysts effect a direct and
11		immediate change upon a graphic arts product. Beginning on July
12		1, 2017, graphic arts machinery and equipment is included in
13		the manufacturing and assembling machinery and equipment
14		exemption under Section 2 of this Act.
15		(6) Personal property purchased from a teacher-sponsored
16		student organization affiliated with an elementary or
17		secondary school located in Illinois.
18		(7) Farm machinery and equipment, both new and used,
19		including that manufactured on special order, certified by the
20		purchaser to be used primarily for production agriculture or
21		State or federal agricultural programs, including individual
22		replacement parts for the machinery and equipment, including
23		machinery and equipment purchased for lease, and including
24		implements of husbandry defined in Section 1-130 of the
25		Illinois Vehicle Code, farm machinery and agricultural
26		chemical and fertilizer spreaders, and nurse wagons required to

SB3238 Engrossed - 21 - LRB100 16105 HLH 31224 b
1		be registered under Section 3-809 of the Illinois Vehicle Code,
2		but excluding other motor vehicles required to be registered
3		under the Illinois Vehicle Code. Horticultural polyhouses or
4		hoop houses used for propagating, growing, or overwintering
5		plants shall be considered farm machinery and equipment under
6		this item (7). Agricultural chemical tender tanks and dry boxes
7		shall include units sold separately from a motor vehicle
8		required to be licensed and units sold mounted on a motor
9		vehicle required to be licensed if the selling price of the
10		tender is separately stated.
11		Farm machinery and equipment shall include precision
12		farming equipment that is installed or purchased to be
13		installed on farm machinery and equipment including, but not
14		limited to, tractors, harvesters, sprayers, planters, seeders,
15		or spreaders. Precision farming equipment includes, but is not
16		limited to, soil testing sensors, computers, monitors,
17		software, global positioning and mapping systems, and other
18		such equipment.
19		Farm machinery and equipment also includes computers,
20		sensors, software, and related equipment used primarily in the
21		computer-assisted operation of production agriculture
22		facilities, equipment, and activities such as, but not limited
23		to, the collection, monitoring, and correlation of animal and
24		crop data for the purpose of formulating animal diets and
25		agricultural chemicals. This item (7) is exempt from the
26		provisions of Section 3-75.

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

SB3238 Engrossed - 23 - LRB100 16105 HLH 31224 b
1		(10) Until July 1, 2003, oil field exploration, drilling,
2		and production equipment, including (i) rigs and parts of rigs,
3		rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
4		tubular goods, including casing and drill strings, (iii) pumps
5		and pump-jack units, (iv) storage tanks and flow lines, (v) any
6		individual replacement part for oil field exploration,
7		drilling, and production equipment, and (vi) machinery and
8		equipment purchased for lease; but excluding motor vehicles
9		required to be registered under the Illinois Vehicle Code.
10		(11) Proceeds from the sale of photoprocessing machinery
11		and equipment, including repair and replacement parts, both new
12		and used, including that manufactured on special order,
13		certified by the purchaser to be used primarily for
14		photoprocessing, and including photoprocessing machinery and
15		equipment purchased for lease.
16		(12) Until July 1, 2023, coal Coal and aggregate
17		exploration, mining, off-highway hauling, processing,
18		maintenance, and reclamation equipment, including replacement
19		parts and equipment, and including equipment purchased for
20		lease, but excluding motor vehicles required to be registered
21		under the Illinois Vehicle Code. The changes made to this
22		Section by Public Act 97-767 apply on and after July 1, 2003,
23		but no claim for credit or refund is allowed on or after August
24		16, 2013 (the effective date of Public Act 98-456) for such
25		taxes paid during the period beginning July 1, 2003 and ending
26		on 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
2		for direct agricultural production.
3		(14) Horses, or interests in horses, registered with and
4		meeting the requirements of any of the Arabian Horse Club
5		Registry of America, Appaloosa Horse Club, American Quarter
6		Horse Association, United States Trotting Association, or
7		Jockey Club, as appropriate, used for purposes of breeding or
8		racing for prizes. This item (14) is exempt from the provisions
9		of Section 3-75, and the exemption provided for under this item
10		(14) applies for all periods beginning May 30, 1995, but no
11		claim for credit or refund is allowed on or after the effective
12		date of this amendatory Act of the 95th General Assembly for
13		such taxes paid during the period beginning May 30, 2000 and
14		ending on the effective date of this amendatory Act of the 95th
15		General Assembly.
16		(15) Computers and communications equipment utilized for
17		any hospital purpose and equipment used in the diagnosis,
18		analysis, or treatment of hospital patients purchased by a
19		lessor who leases the equipment, under a lease of one year or
20		longer executed or in effect at the time the lessor would
21		otherwise be subject to the tax imposed by this Act, to a
22		hospital that has been issued an active tax exemption
23		identification number by the Department under Section 1g of the
24		Retailers' Occupation Tax Act. If the equipment is leased in a
25		manner that does not qualify for this exemption or is used in
26		any other non-exempt manner, the lessor shall be liable for the

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

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

SB3238 Engrossed - 27 - LRB100 16105 HLH 31224 b
1		declared disaster area within 6 months after the disaster.
2		(19) Beginning July 1, 1999, game or game birds purchased
3		at a "game breeding and hunting preserve area" as that term is
4		used in the Wildlife Code. This paragraph is exempt from the
5		provisions of Section 3-75.
6		(20) A motor vehicle, as that term is defined in Section
7		1-146 of the Illinois Vehicle Code, that is donated to a
8		corporation, limited liability company, society, association,
9		foundation, or institution that is determined by the Department
10		to be organized and operated exclusively for educational
11		purposes. For purposes of this exemption, "a corporation,
12		limited liability company, society, association, foundation,
13		or institution organized and operated exclusively for
14		educational purposes" means all tax-supported public schools,
15		private schools that offer systematic instruction in useful
16		branches of learning by methods common to public schools and
17		that compare favorably in their scope and intensity with the
18		course of study presented in tax-supported schools, and
19		vocational or technical schools or institutes organized and
20		operated exclusively to provide a course of study of not less
21		than 6 weeks duration and designed to prepare individuals to
22		follow a trade or to pursue a manual, technical, mechanical,
23		industrial, business, or commercial occupation.
24		(21) Beginning January 1, 2000, personal property,
25		including food, purchased through fundraising events for the
26		benefit of a public or private elementary or secondary school,

SB3238 Engrossed - 28 - LRB100 16105 HLH 31224 b
1		a group of those schools, or one or more school districts if
2		the events are sponsored by an entity recognized by the school
3		district that consists primarily of volunteers and includes
4		parents and teachers of the school children. This paragraph
5		does not apply to fundraising events (i) for the benefit of
6		private home instruction or (ii) for which the fundraising
7		entity purchases the personal property sold at the events from
8		another individual or entity that sold the property for the
9		purpose of resale by the fundraising entity and that profits
10		from the sale to the fundraising entity. This paragraph is
11		exempt from the provisions of Section 3-75.
12		(22) Beginning January 1, 2000 and through December 31,
13		2001, new or used automatic vending machines that prepare and
14		serve hot food and beverages, including coffee, soup, and other
15		items, and replacement parts for these machines. Beginning
16		January 1, 2002 and through June 30, 2003, machines and parts
17		for machines used in commercial, coin-operated amusement and
18		vending business if a use or occupation tax is paid on the
19		gross receipts derived from the use of the commercial,
20		coin-operated amusement and vending machines. This paragraph
21		is exempt from the provisions of Section 3-75.
22		(23) Beginning August 23, 2001 and through June 30, 2016,
23		food for human consumption that is to be consumed off the
24		premises where it is sold (other than alcoholic beverages, soft
25		drinks, and food that has been prepared for immediate
26		consumption) and prescription and nonprescription medicines,

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

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

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

SB3238 Engrossed - 32 - LRB100 16105 HLH 31224 b
1		or maintenance of aircraft by persons who (i) hold an Air
2		Agency Certificate and are empowered to operate an approved
3		repair station by the Federal Aviation Administration, (ii)
4		have a Class IV Rating, and (iii) conduct operations in
5		accordance with Part 145 of the Federal Aviation Regulations.
6		The exemption does not include aircraft operated by a
7		commercial air carrier providing scheduled passenger air
8		service pursuant to authority issued under Part 121 or Part 129
9		of the Federal Aviation Regulations. The changes made to this
10		paragraph (27) by Public Act 98-534 are declarative of existing
11		law.
12		(28) Tangible personal property purchased by a
13		public-facilities corporation, as described in Section
14		11-65-10 of the Illinois Municipal Code, for purposes of
15		constructing or furnishing a municipal convention hall, but
16		only if the legal title to the municipal convention hall is
17		transferred to the municipality without any further
18		consideration by or on behalf of the municipality at the time
19		of the completion of the municipal convention hall or upon the
20		retirement or redemption of any bonds or other debt instruments
21		issued by the public-facilities corporation in connection with
22		the development of the municipal convention hall. This
23		exemption includes existing public-facilities corporations as
24		provided in Section 11-65-25 of the Illinois Municipal Code.
25		This 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
1		and menstrual cups.
2		(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
3		100-22, eff. 7-6-17.)
4		Section 15. The Service Occupation Tax Act is amended by
5		changing Section 3-5 as follows:
6		(35 ILCS 115/3-5)
7		Sec. 3-5. Exemptions. The following tangible personal
8		property is exempt from the tax imposed by this Act:
9		(1) Personal property sold by a corporation, society,
10		association, foundation, institution, or organization, other
11		than a limited liability company, that is organized and
12		operated as a not-for-profit service enterprise for the benefit
13		of persons 65 years of age or older if the personal property
14		was not purchased by the enterprise for the purpose of resale
15		by the enterprise.
16		(2) Personal property purchased by a not-for-profit
17		Illinois county fair association for use in conducting,
18		operating, or promoting the county fair.
19		(3) Personal property purchased by any not-for-profit arts
20		or cultural organization that establishes, by proof required by
21		the Department by rule, that it has received an exemption under
22		Section 501(c)(3) of the Internal Revenue Code and that is
23		organized and operated primarily for the presentation or
24		support of arts or cultural programming, activities, or

SB3238 Engrossed - 34 - LRB100 16105 HLH 31224 b
1		services. These organizations include, but are not limited to,
2		music and dramatic arts organizations such as symphony
3		orchestras and theatrical groups, arts and cultural service
4		organizations, local arts councils, visual arts organizations,
5		and media arts organizations. On and after the effective date
6		of this amendatory Act of the 92nd General Assembly, however,
7		an entity otherwise eligible for this exemption shall not make
8		tax-free purchases unless it has an active identification
9		number issued by the Department.
10		(4) Legal tender, currency, medallions, or gold or silver
11		coinage issued by the State of Illinois, the government of the
12		United States of America, or the government of any foreign
13		country, and bullion.
14		(5) Until July 1, 2003 and beginning again on September 1,
15		2004 through August 30, 2014, graphic arts machinery and
16		equipment, including repair and replacement parts, both new and
17		used, and including that manufactured on special order or
18		purchased for lease, certified by the purchaser to be used
19		primarily for graphic arts production. Equipment includes
20		chemicals or chemicals acting as catalysts but only if the
21		chemicals or chemicals acting as catalysts effect a direct and
22		immediate change upon a graphic arts product. Beginning on July
23		1, 2017, graphic arts machinery and equipment is included in
24		the manufacturing and assembling machinery and equipment
25		exemption under Section 2 of this Act.
26		(6) Personal property sold by a teacher-sponsored student

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

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

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

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1		maintenance, and reclamation equipment, including replacement
2		parts and equipment, and including equipment purchased for
3		lease, but excluding motor vehicles required to be registered
4		under the Illinois Vehicle Code. The changes made to this
5		Section by Public Act 97-767 apply on and after July 1, 2003,
6		but no claim for credit or refund is allowed on or after August
7		16, 2013 (the effective date of Public Act 98-456) for such
8		taxes paid during the period beginning July 1, 2003 and ending
9		on August 16, 2013 (the effective date of Public Act 98-456).
10		(13) Beginning January 1, 1992 and through June 30, 2016,
11		food for human consumption that is to be consumed off the
12		premises where it is sold (other than alcoholic beverages, soft
13		drinks and food that has been prepared for immediate
14		consumption) and prescription and non-prescription medicines,
15		drugs, medical appliances, and insulin, urine testing
16		materials, syringes, and needles used by diabetics, for human
17		use, when purchased for use by a person receiving medical
18		assistance under Article V of the Illinois Public Aid Code who
19		resides in a licensed long-term care facility, as defined in
20		the Nursing Home Care Act, or in a licensed facility as defined
21		in the ID/DD Community Care Act, the MC/DD Act, or the
22		Specialized Mental Health Rehabilitation Act of 2013.
23		(14) Semen used for artificial insemination of livestock
24		for direct agricultural production.
25		(15) Horses, or interests in horses, registered with and
26		meeting the requirements of any of the Arabian Horse Club

SB3238 Engrossed - 39 - LRB100 16105 HLH 31224 b
1		Registry of America, Appaloosa Horse Club, American Quarter
2		Horse Association, United States Trotting Association, or
3		Jockey Club, as appropriate, used for purposes of breeding or
4		racing for prizes. This item (15) is exempt from the provisions
5		of Section 3-55, and the exemption provided for under this item
6		(15) applies for all periods beginning May 30, 1995, but no
7		claim for credit or refund is allowed on or after January 1,
8		2008 (the effective date of Public Act 95-88) for such taxes
9		paid during the period beginning May 30, 2000 and ending on
10		January 1, 2008 (the effective date of Public Act 95-88).
11		(16) Computers and communications equipment utilized for
12		any hospital purpose and equipment used in the diagnosis,
13		analysis, or treatment of hospital patients sold to a lessor
14		who leases the equipment, under a lease of one year or longer
15		executed or in effect at the time of the purchase, to a
16		hospital that has been issued an active tax exemption
17		identification number by the Department under Section 1g of the
18		Retailers' Occupation Tax Act.
19		(17) Personal property sold to a lessor who leases the
20		property, under a lease of one year or longer executed or in
21		effect at the time of the purchase, to a governmental body that
22		has been issued an active tax exemption identification number
23		by the Department under Section 1g of the Retailers' Occupation
24		Tax Act.
25		(18) Beginning with taxable years ending on or after
26		December 31, 1995 and ending with taxable years ending on or

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1		before December 31, 2004, personal property that is donated for
2		disaster relief to be used in a State or federally declared
3		disaster area in Illinois or bordering Illinois by a
4		manufacturer or retailer that is registered in this State to a
5		corporation, society, association, foundation, or institution
6		that has been issued a sales tax exemption identification
7		number by the Department that assists victims of the disaster
8		who reside within the declared disaster area.
9		(19) Beginning with taxable years ending on or after
10		December 31, 1995 and ending with taxable years ending on or
11		before December 31, 2004, personal property that is used in the
12		performance of infrastructure repairs in this State, including
13		but not limited to municipal roads and streets, access roads,
14		bridges, sidewalks, waste disposal systems, water and sewer
15		line extensions, water distribution and purification
16		facilities, storm water drainage and retention facilities, and
17		sewage treatment facilities, resulting from a State or
18		federally declared disaster in Illinois or bordering Illinois
19		when such repairs are initiated on facilities located in the
20		declared disaster area within 6 months after the disaster.
21		(20) Beginning July 1, 1999, game or game birds sold at a
22		"game breeding and hunting preserve area" as that term is used
23		in the Wildlife Code. This paragraph is exempt from the
24		provisions of Section 3-55.
25		(21) A motor vehicle, as that term is defined in Section
26		1-146 of the Illinois Vehicle Code, that is donated to a

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

SB3238 Engrossed - 42 - LRB100 16105 HLH 31224 b
1		another individual or entity that sold the property for the
2		purpose of resale by the fundraising entity and that profits
3		from the sale to the fundraising entity. This paragraph is
4		exempt from the provisions of Section 3-55.
5		(23) Beginning January 1, 2000 and through December 31,
6		2001, new or used automatic vending machines that prepare and
7		serve hot food and beverages, including coffee, soup, and other
8		items, and replacement parts for these machines. Beginning
9		January 1, 2002 and through June 30, 2003, machines and parts
10		for machines used in commercial, coin-operated amusement and
11		vending business if a use or occupation tax is paid on the
12		gross receipts derived from the use of the commercial,
13		coin-operated amusement and vending machines. This paragraph
14		is exempt from the provisions of Section 3-55.
15		(24) Beginning on the effective date of this amendatory Act
16		of the 92nd General Assembly, computers and communications
17		equipment utilized for any hospital purpose and equipment used
18		in the diagnosis, analysis, or treatment of hospital patients
19		sold to a lessor who leases the equipment, under a lease of one
20		year or longer executed or in effect at the time of the
21		purchase, to a hospital that has been issued an active tax
22		exemption identification number by the Department under
23		Section 1g of the Retailers' Occupation Tax Act. This paragraph
24		is exempt from the provisions of Section 3-55.
25		(25) Beginning on the effective date of this amendatory Act
26		of the 92nd General Assembly, personal property sold to a

SB3238 Engrossed - 43 - LRB100 16105 HLH 31224 b
1		lessor who leases the property, under a lease of one year or
2		longer executed or in effect at the time of the purchase, to a
3		governmental body that has been issued an active tax exemption
4		identification number by the Department under Section 1g of the
5		Retailers' Occupation Tax Act. This paragraph is exempt from
6		the provisions of Section 3-55.
7		(26) Beginning on January 1, 2002 and through June 30,
8		2016, tangible personal property purchased from an Illinois
9		retailer by a taxpayer engaged in centralized purchasing
10		activities in Illinois who will, upon receipt of the property
11		in Illinois, temporarily store the property in Illinois (i) for
12		the purpose of subsequently transporting it outside this State
13		for use or consumption thereafter solely outside this State or
14		(ii) for the purpose of being processed, fabricated, or
15		manufactured into, attached to, or incorporated into other
16		tangible personal property to be transported outside this State
17		and thereafter used or consumed solely outside this State. The
18		Director of Revenue shall, pursuant to rules adopted in
19		accordance with the Illinois Administrative Procedure Act,
20		issue a permit to any taxpayer in good standing with the
21		Department who is eligible for the exemption under this
22		paragraph (26). The permit issued under this paragraph (26)
23		shall authorize the holder, to the extent and in the manner
24		specified in the rules adopted under this Act, to purchase
25		tangible personal property from a retailer exempt from the
26		taxes imposed by this Act. Taxpayers shall maintain all

SB3238 Engrossed - 44 - LRB100 16105 HLH 31224 b
1		necessary books and records to substantiate the use and
2		consumption of all such tangible personal property outside of
3		the State of Illinois.
4		(27) Beginning January 1, 2008, tangible personal property
5		used in the construction or maintenance of a community water
6		supply, as defined under Section 3.145 of the Environmental
7		Protection Act, that is operated by a not-for-profit
8		corporation that holds a valid water supply permit issued under
9		Title IV of the Environmental Protection Act. This paragraph is
10		exempt from the provisions of Section 3-55.
11		(28) Tangible personal property sold to a
12		public-facilities corporation, as described in Section
13		11-65-10 of the Illinois Municipal Code, for purposes of
14		constructing or furnishing a municipal convention hall, but
15		only if the legal title to the municipal convention hall is
16		transferred to the municipality without any further
17		consideration by or on behalf of the municipality at the time
18		of the completion of the municipal convention hall or upon the
19		retirement or redemption of any bonds or other debt instruments
20		issued by the public-facilities corporation in connection with
21		the development of the municipal convention hall. This
22		exemption includes existing public-facilities corporations as
23		provided in Section 11-65-25 of the Illinois Municipal Code.
24		This paragraph is exempt from the provisions of Section 3-55.
25		(29) Beginning January 1, 2010, materials, parts,
26		equipment, components, and furnishings incorporated into or

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

SB3238 Engrossed - 46 - LRB100 16105 HLH 31224 b
1		(30) Beginning January 1, 2017, menstrual pads, tampons,
2		and menstrual cups.
3		(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
4		100-22, eff. 7-6-17.)
5		Section 20. The Retailers' Occupation Tax Act is amended by
6		changing Section 2-5 as follows:
7		(35 ILCS 120/2-5)
8		Sec. 2-5. Exemptions. Gross receipts from proceeds from the
9		sale of the following tangible personal property are exempt
10		from 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

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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

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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

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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

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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

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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

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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

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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

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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

SB3238 Engrossed - 66 - LRB100 16105 HLH 31224 b
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;
6		100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
7		1-1-18; revised 9-26-17.)
8		Section 99. Effective date. This Act takes effect upon
9		becoming law.